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 and is designated for various purposes, including administrative costs, greenhouse gas reduction programs, tribal capacity grants, and clean energy projects. It mandates that at least 25% of appropriations from both accounts be allocated to clean water and healthy forest investments, while ensuring that funds cannot be used for projects that violate tribal treaty rights or cause significant long-term ecological damage. The Capital Account is intended for capital budget projects addressing climate change impacts and supporting overburdened communities, with specific allocations for clean water investments and electric vehicle infrastructure. The bill also requires a minimum of $50 million per biennium to support Indian tribes affected by climate change.

Additionally, the bill modifies existing laws related to environmental justice and funding allocations, requiring state agencies to conduct environmental justice assessments and ensuring that at least 35% of total investments benefit vulnerable populations. It introduces a prescribed fire claims fund pilot program to support losses from prescribed fires on protected and tribal lands, and establishes a forestry riparian easement program for protecting sensitive aquatic areas. The bill also includes provisions for penalties related to compliance failures and mandates annual reporting on fund distribution and impacts. Notably, it repeals previous climate investment accounts and establishes a new climate commitment act capital account, with the act 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