Sec. 3. Resilient communities grant program

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The Secretary shall provide to each State a Resilient Communities Grant no later than April 1, 2025, and each calendar year thereafter, in an amount determined under subsection (c). A State receiving a Resilient Communities Grant under this section shall use the amount of each such grant as follows: To provide job training and worker transition assistance, with priority given to workers and former workers in fossil fuel-related industries. To assist municipalities, counties, or other political subdivisions of the State in— developing climate vulnerability assessments and adaptation plans to help build resilience to rapid-onset and slow-onset climate hazards; and implementing such plans, which may include but are not limited to such projects as climate-smart infrastructure, agricultural climate solutions, and natural climate solutions to build climate resilience and support carbon sequestration.

To directly assist frontline communities who are experiencing the earliest, most severe threats from climate change with technical assistance and resources to undertake efforts to build climate resilience. Alleviate historical burdens imposed upon communities of color, low-income communities, Tribal and Indigenous communities, fossil fuel-dependent communities, and other vulnerable populations that have been historically under-resourced due to inequities in resource allocation or disproportionately burdened by environmental hazards, including exposure to climate risks and polluted air, waterways, and landscapes.

To provide relocation assistance to individuals and populations when climate change or the energy transition threatens their health, well-being, or livelihood. To assist small businesses that are disproportionately impacted by the border carbon adjustment imposed under subtitle L of the Internal Revenue Code of 1986 (as added by section 2 of this Act). The amount of the Resilient Communities Grant made to any State for any calendar year shall be equal to the product of— the total amount made available under section 9906(2)(A) of the Internal Revenue Code of 1986 (as added by this Act) based on revenue collected in the prior calendar year; and the State allocation percentage for the State (as determined under paragraph (2)).

Not later than December 1, 2024, and each calendar year thereafter, the Secretary (in coordination with the Administrator of the Environmental Protection Agency, the Secretary of Commerce, the Secretary of Labor, the Secretary of Homeland Security, the Secretary of Transportation, the Secretary of Agriculture, and the Secretary of Energy) shall establish the formula for determining the State allocation percentage for the following calendar year, which, for each State, shall take into account— the percentage of the population of the United States residing in such State; the vulnerability of such State to climate change; and the percentage of the total United States workforce employed in fossil fuel-related industries who are employed in such industries in such State.

In accounting for the vulnerability of each State to climate change under paragraph (2)(B) for the purposes of determining the State allocation percentage, the parties identified in paragraph

(2)shall— at a minimum, consider the potential risks from rapid-onset and slow-onset climate hazards to— human health and safety; infrastructure and other physical assets; and natural and agricultural systems; account for the disproportionate impact of climate change on socially vulnerable communities; ensure the methods for determining climate vulnerability do not result in a formula for State allocation that inequitably allocates resources to specific communities based on race, socioeconomic status, or other such characteristics; and utilize relevant components of existing metrics and indicators of climate vulnerability in the United States wherever possible, including but not limited to— the FEMA National Risk Index; and over the past 5 years, the State’s proportion of— National Flood Insurance Program claims; Fire Mitigation Assistance Grants; and USDA fast track drought designations. For purposes of subparagraph (B), the State allocation percentage for any State shall not be less than 1 percent. The Secretary shall verify the State use of grants under this subsection to ensure such uses comply with the requirements of this section. The Secretary may withhold a grant under this subsection if the Secretary determines that a State has not complied with such requirements. In this section: The term Secretary means the Secretary of the Treasury or the Secretary's delegate. The term slow-onset climate hazard means a threat from climate change that evolves gradually due to incremental change or because of an increasing frequency or intensity of recurring climate impacts, including— sea level rise; desertification; biodiversity loss; increasing temperatures; ocean acidification; soil salinization; drought; land and natural resource degradation; glacial retreat or reduced snow pack, and related impacts; and permafrost thaw. The term State means any of the 50 States, the District of Columbia, or the Commonwealth of Puerto Rico.