The bill establishes two new accounts within the state treasury: the Climate Commitment Act Operating Account and the Climate Commitment Act Capital Account. The Operating Account will receive funds from the auction of allowances for various purposes, including administrative costs, greenhouse gas reduction programs, tribal capacity grants, and support for overburdened communities. The Capital Account will also receive auction proceeds, focusing on capital projects that enhance climate resilience and improve energy efficiency. Both accounts are designed to supplement existing funding, adhere to high labor standards, and ensure that at least 25% of appropriations are directed towards clean water and healthy forest investments. The bill also emphasizes the protection of tribal treaty rights and mandates that projects funded must maximize economic benefits for local workers and diverse businesses.

Additionally, the bill introduces new provisions for the distribution of auction proceeds, requiring a portion to benefit vulnerable populations and overburdened communities. It mandates annual reporting by the department on the distribution of funds, including details on how expenditures benefit these communities. The legislation also enhances compliance mechanisms for emissions reduction programs, establishes a framework for supporting coverage for losses from prescribed fires on tribal lands, and creates a forestry riparian easement program to protect sensitive aquatic areas. Furthermore, it modifies existing laws related to the climate commitment act, including the creation of a transportation account for carbon emission reduction initiatives in the transportation sector, and consolidates several existing accounts into a new framework. The act is set to take effect on July 1, 2027.

Statutes affected:
Original bill: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010
Substitute bill: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010
Second substitute: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010
Engrossed second substitute: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010
Bill as passed Legislature: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010, 70A.65.240, 70A.65.302, 70A.535.180, 82.12.994
Session law: 70A.65.100, 70A.45.020, 70A.65.280, 70A.65.300, 70A.65.040, 70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, 43.376.010, 70A.65.240, 70A.65.302, 70A.535.180, 82.12.994