The bill establishes a new Forest Health Grant Program, which will be administered by the state forester. This program aims to support forest health projects by providing grants that cover up to 75% of project costs. Eligible projects must enhance water yield or quality, reduce wildfire risks, increase forest product production, improve wildlife and livestock habitats, or serve other public purposes beneficial to forest health as determined by the state forester. Additionally, grants will require the attorney general's written opinion to certify their legality before approval.

The bill also creates a dedicated account for the Forest Health Grant Program, which will consist of designated funds and allow for donations from individuals and entities. Any unspent funds at the end of a fiscal year will remain in the account for future use. The state forester is required to report annually on the grants awarded, and the program will sunset on July 1, 2029, with provisions for returning or reverting unobligated funds based on their source. An appropriation of $3 million from the general fund is allocated to support the program, which will remain available until further legislative action is taken. The act is set to take effect on July 1, 2025.