The proposed legislation, General Assembly Raised Bill No. 453, introduces a five percent surcharge on property and casualty insurance policies issued or renewed for fossil fuel infrastructure in Connecticut, effective January 1, 2027. This includes policies for facilities involved in the processing, exporting, or transporting of oil, methane gas, or coal, with the exception of home fuel delivery vehicles. The collected surcharges will be directed to a newly established "climate resilience account" managed by the Commissioner of Energy and Environmental Protection, which will be funded by these surcharges and other contributions.

The bill mandates that the funds in the climate resilience account be utilized for various purposes, including disseminating flood risk data to communities, raising public awareness in high-risk areas, and providing grants for the construction of climate-resilient infrastructure. Notably, the funds in this account will not lapse at the end of the fiscal year, ensuring ongoing availability for these initiatives. The legislation aims to address the impacts of climate change by imposing financial responsibilities on insurance policies related to fossil fuel facilities.