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 the New Jersey Infrastructure Bank to prioritize principal forgiveness for environmental infrastructure loans to municipalities in coastal areas. It directly affects coastal municipalities needing funding for projects like wastewater treatment and water supply systems. The key mechanism establishes that these coastal communities will receive preferential treatment in the existing Interim Environmental Financing Program for eligible projects listed on the DEP's priority list. The change modifies how loan forgiveness is allocated within current financing programs, without creating new funding sources.