The bill establishes a City Climate Action Grant Program within the Minnesota Pollution Control Agency, aimed at providing financial assistance to cities for addressing climate change. The program will offer grants to cities that develop and implement action plans or create organizations focused on mitigating the impacts of climate change or reducing greenhouse gas emissions. Eligible applicants for these grants include city governments, tax-exempt organizations, and educational institutions, with a preference for proposals that engage a diverse range of community stakeholders.

The bill specifies that grants cannot exceed $50,000, with matching fund requirements based on city population size. Cities with populations over 20,000 must match the grant amount 100% with local funds, while those with populations under 20,000 must provide at least 5% in local funds or equivalent in-kind services. Additionally, the bill appropriates $5 million from the general fund for fiscal year 2024 to support the grant program, which will be available until December 31, 2025. The section is effective the day after final enactment.