The Climate Bond language requires that “at least 40 percent of the total funding made available pursuant to this division shall be invested in programs or projects that provide direct and meaningful benefits to disadvantaged communities, severely disadvantaged communities, and vulnerable populations.” The following definitions come directly from the bond (PRC Section 90100) and will be used across 2024 Climate Bond programs:

• Disadvantaged community (DAC): A community with a median household income of less than 80 percent of the area average or less than 80 percent of statewide median household income.
• Severely disadvantaged community (SDAC): A community with a median household income of less than 60 percent of the area average or less than 60 percent of statewide median household income.
• Vulnerable population: A subgroup population within a region or community that faces a disproportionately heightened risk or increased sensitivity to impacts of climate change and that lacks adequate resources to cope with, adapt to, or recover from such impacts. (Note: tribes are considered vulnerable populations)
• Tribe: A federally recognized Native American tribe or a non-federally recognized Native American tribe listed on the California Tribal Consultation List maintained by the Native American Heritage Commission.