We introduce the National Science Foundation (NSF) AI Institute for Research on Trustworthy AI in Weather, Climate, and Coastal Oceanography (AI2ES). This AI institute was funded in 2020 as part of a new initiative from the NSF to advance foundational AI research across a wide variety of domains. To date AI2ES is the only NSF AI institute focusing on environmental science applications. Our institute focuses on developing trustworthy AI methods for weather, climate, and coastal hazards. The AI methods will revolutionize our understanding and prediction of high-impact atmospheric and ocean science phenomena and will be utilized by diverse, professional user groups to reduce risks to society. In addition, we are creating novel educational paths, including a new degree program at a community college serving underrepresented minorities, to improve workforce diversity for both AI and environmental science.