The bill authorizes the New Jersey Infrastructure Bank (NJIB) to allocate up to $3.85 billion for loans to local government units and public water utilities for environmental infrastructure projects during the fiscal year 2027. This funding is intended to cover various costs associated with the construction of these projects, including capitalized interest and administrative expenses. The bill also specifies that supplemental loans for clean water and drinking water projects will be prioritized, establishing eligibility criteria and repayment timelines, with exceptions for combined sewer overflow abatement projects.

Furthermore, the legislation includes provisions for the NJIB to adjust loan amounts based on project costs and allows for the transfer of funds between state accounts to ensure adequate financing for the New Jersey Environmental Infrastructure Financing Program (NJEIFP). It also appropriates up to $2 billion for short-term loans and allocates funds for the Environmental Disaster Relief Emergency Financing Program, requiring project lists to be submitted to the Legislature by the Department of Environmental Protection Commissioner. Overall, the bill aims to enhance New Jersey's water infrastructure while providing financial flexibility and support for local projects.