The proposed legislation, General Assembly Substitute Bill No. 453, introduces a new surcharge on property and casualty insurance policies related to fossil fuel infrastructure in Connecticut. Effective January 1, 2027, any entity issuing or renewing such insurance policies will be required to pay a five percent surcharge. This surcharge will be collected by the Insurance Commissioner and deposited into a newly established "climate resilience account" managed by the Commissioner of Energy and Environmental Protection. The account will also accept other funds, gifts, or donations, and the funds will not lapse at the end of the fiscal year.

The bill outlines the intended use of the funds in the climate resilience account, which includes disseminating flood risk data to communities, raising public awareness in high-risk areas, and providing grants for the construction of climate-resilient infrastructure. The legislation aims to enhance the state's preparedness for climate-related flooding and improve community resilience against such risks. The new legal language introduced in this bill includes the establishment of the climate resilience account and the specific allocation of funds for flood risk mitigation efforts.