1. (1)

   1. (a) "Carbon credit" means a payment or offer of payment, or other financial compensation or benefit, for a carbon emission offset.
   2. (b) "Carbon credit" includes a natural asset credit.

   3. (c) "Carbon credit" does not include a payment or offer of payment related to:

      1. (i) a right or interest associated with a regulated pollutant, as that term is defined in Title V of the 1990 Clean Air Act; or
      2. (ii) an industrial or commercial use of liquefied carbon dioxide.

2. (2) "Carbon emission offset" means:

   1. (a) a reduction in the amount of greenhouse gas present in the atmosphere; or
   2. (b) an amount of greenhouse gas prevented from entering the atmosphere.
3. (3) "Digital identification number" means an identification number assigned to a carbon credit by a governmental or accredited third-party verification entity that certifies or registers a carbon credit for sale or exchange.

4. (4) "Greenhouse gas" means:

   1. (a) carbon dioxide or a gas emission converted into a carbon dioxide equivalent; or
   2. (b) methane.
5. (5) "Natural asset company" means the same as that term is defined in Section 63L-13-101.

6. (6)

   1. (a) "Natural asset credit" means a payment or offer of payment, or other financial compensation or benefit:

      1. (i) for the preservation of a natural and biological process on a parcel of land; or
      2. (ii) by a natural asset company for an activity described in Section 63L-13-203.

   2. (b) "Natural asset credit" does not include:

      1. (i) the commercial extraction, production, or sale of a natural or agricultural resource; or
      2. (ii) a right or interest associated with the beneficial use or appropriation of water.
7. (7) "State entity" means a department, commission, board, council, agency, institution of higher education, officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau, panel, or other administrative unit of the state.

8. (8)

   1. (a) "State funds" means:

      1. (i) money appropriated by the Legislature; and
      2. (ii) a bond issued by a state entity that creates a carbon emission offset.

   2. (b) "State funds" does not include money or financial benefit in the form of:

      1. (i) a tax incentive;
      2. (ii) a permit or an activity related to the development of a permit issued by a state entity; or
      3. (iii) a federal grant administered by a state entity.

Amended by Chapter 404, 2026 General Session