The bill establishes a new Forest Health Grant Program, which will be administered by the state forester. This program aims to provide financial assistance for forest health projects, covering up to 75% of project costs. Eligible projects include those that enhance water yield or quality, reduce wildfire risks, increase forest product production, improve wildlife and livestock habitats, or any other project deemed beneficial to forest health by the state forester. Additionally, grants will require the attorney general's written opinion to certify their legality before approval.

An account for the Forest Health Grant Program is created to manage the funds designated for grants, which can also include donations from individuals and entities. The bill appropriates $3 million from the general fund to this account, ensuring that these funds do not lapse at the end of the fiscal year without legislative action. The state forester is required to report annually on the grants awarded, and the program will sunset on July 1, 2029, with provisions for the return or reversion of any remaining funds based on their source. The act is set to take effect on July 1, 2025.