This bill allocates $100 million in federal funds from the American Rescue Plan Act of 2021 to the New Jersey Department of Environmental Protection (DEP) for the development of a grant program aimed at supporting local governments in funding drinking water, wastewater, and stormwater infrastructure projects. The DEP is tasked with establishing a grant application process, along with transparent eligibility and ranking criteria, which must be published on their website within six months of the bill's effective date. Additionally, the DEP will determine a maximum grant amount to ensure equitable distribution of funds across local government units in the state.

The bill mandates that at least 10 percent of the allocated funds be reserved for projects that address harmful algal blooms in Lake Hopatcong and Greenwood Lake. The DEP is also permitted to use up to three percent of the funds for administering the grant program. Furthermore, the DEP is required to submit a report detailing the grant recipients and project purposes to the Governor and Legislature within three years of the bill's enactment. The bill will expire either upon the submission of this report or three years after its enactment, whichever comes first.