Durbin Introduced Bill To Create Climate Bond Programs To Fund Climate Resiliency Projects
The Climate Change Resiliency Fund for America Act would create a program similar to the national war bond program during World War II to support climate resiliency efforts
WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL) today reintroduced the Climate Change Resiliency Fund for America Act, which would authorize the U.S. Department of Treasury to issue from $200 million to $1 billion in state and local tax-exempt “climate bonds” annually for any American to purchase and contribute to the effort to address the impacts of climate change. Inspired by the national war bond program during World War II, these bonds would fund a new “Climate Change Resiliency Fund,” to be administered by the Department of Commerce, for grants to finance climate resilient infrastructure projects to shore up the nation against extreme weather events like flash flooding, tornados, wildfires, and heat waves as these disasters increase in number and intensity across the country.
“We’re seeing the impacts of climate change in real time as severe floods, uncontrollable wildfires, and extreme temperatures sweep across the country. We must address this existential threat through a coordinated national strategy, and soon,” said Durbin. “Today, I’m reintroducing the Climate Change Resiliency Fund for America Act to offer the sale of ‘climate bonds’ to fund climate resiliency projects in front-line and environmental justice communities that experience disproportionate impacts from the crisis.”
In addition to issuing “climate bonds,” the Climate Change Resiliency Fund for America Act would create a bipartisan Climate Change Advisory Commission of 11 members appointed by the House of Representatives, the Senate, and the President to establish program requirements and vet and approve the projects financed by the Climate Change Resiliency Fund.
Climate resiliency projects would be determined by the Commission, and could include projects such as flood control, structural fortification, forest fire prevention, climate-smart agricultural practices, and cooling centers, among others. They also could include improvements to the supply chain and water security.
Eligible grant recipients include federal agencies and state and local governments, including utilities, tribes, transit groups, nonprofits, coalitions, public authorities, or other organizations as determined by the Secretary of Commerce. Most projects would require a 25 percent nonfederal match, but the Secretary would have authority to waive match requirements in disadvantaged communities. A portion of the fund would be set aside specifically for projects that will not require a match.
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