S. 2374: Climate Change Resiliency Fund for America Act of 2025

The Climate Change Resiliency Fund for America Act of 2025 aims to establish a framework for addressing the impacts of climate change through the creation of a dedicated commission and a new funding mechanism.

Establishment of the Climate Change Advisory Commission

The bill proposes the formation of the Climate Change Advisory Commission, consisting of 11 members with expertise in climate mitigation. Members will be appointed by various congressional leaders and the President. The Commission will be responsible for:

• Developing recommendations for federal investments in infrastructure impacted by climate change.
• Updating guidelines to ensure investments are supported by the best available scientific data.
• Engaging with communities, especially those most affected by climate change impacts, to gather input and ensure their needs are prioritized.

Creation of the Climate Change Resiliency Fund

The bill establishes the Climate Change Resiliency Fund, which will receive financial resources to fund various climate adaptation projects. Key points about the Fund include:

• At least 40% of the funds must be allocated to projects benefiting communities that are disproportionately affected by climate change, including low-income and environmental justice communities.
• The Secretary of Commerce will oversee the Fund's operations and can provide funds to eligible entities for projects that meet certain criteria.
• Eligible entities may include federal and state agencies, local governments, non-profit organizations, and tribal governments.

Funding and Financial Mechanisms

The bill outlines how the Climate Change Resiliency Fund will be financed:

• The Secretary will issue climate change obligations (similar to bonds) to raise funds, with an initial amount of $200 million issued annually, potentially increasing to $800 million based on demand.
• Interest payments on these obligations will be guaranteed by the U.S. government.
• The Fund will be allowed to use a small percentage for administrative expenses.

Oversight and Compliance

Labor standards are established to ensure fair wages for workers on projects funded by the Climate Change Resiliency Fund, adhering to the Davis-Bacon Act. This ensures that laborers are paid at least the local prevailing wage for similar projects.

Project Selection and Prioritization

Eligible entities will apply for funding through a process managed by the Secretary, who will prioritize projects based on community needs, particularly focusing on those benefiting areas severely impacted by climate change.

Termination and Duration

The Climate Change Advisory Commission is set to operate for a duration of 20 years after the enactment of this bill, with provisions for termination if necessary.

Definitions and Terms

The bill contains specific definitions aimed at clarifying key terms such as:

• Frontline Communities: Low-income and communities of color disproportionately affected by climate change.
• Environmental Justice Community: Areas with significant populations of low-income or communities of color that experience adverse effects from environmental changes.

Relevant Companies

• GE (General Electric) - As a major player in alternative energy solutions, GE could see demand for sustainable technologies increase due to the focus on climate change adaptation projects.
• DUK (Duke Energy) - This utility company may have to adapt its infrastructure investments to qualify for funding through the Resiliency Fund, influencing its capital expenditures for resilient grid innovation.
• NEM (Newmont Corporation) - As a mining company, it could face increasing pressure to adapt operations to comply with environmental standards resulting from the bill's guidelines.