Requires DEP and New Jersey Infrastructure Bank to provide priority for principal forgiveness on environmental infrastructure project loans to municipalities in coastal areas.

This bill requires New Jersey's Department of Environmental Protection (DEP) and New Jersey Infrastructure Bank to prioritize principal forgiveness on environmental infrastructure loans for municipalities located in coastal areas. It amends existing law to specify that coastal municipalities should receive preferential treatment under the state's Water Bank program, which provides low-interest loans with partial principal forgiveness for wastewater and drinking water projects. The term "coastal area" is defined as per section 4 of P.L.1973, c.185 (C.13:19-4). The bill directly affects coastal municipalities seeking funding for environmental infrastructure improvements, making it easier for these communities to access financing for critical water and wastewater projects.