,i #aafth ,,congress #ast ,session ,h4 ,r4 #edaf ,,in ,,the ,,house ,,of ,,representatives ,december #ab1 #bjai,mrs4 ,dingell 7for herself1 ,mr4 ,tonko1 ,ms4 ,blunt ,rochester1 and ,mrs4 ,axne7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,financial ,services1 ,ways and ,means1 ,agriculture1 and ,transportation and ,infrastructure1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a ,national ,climate ,bank4 #a4 ,short title ,this ,act may be cited as the ,national ,climate ,bank ,act4 #b4 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,sec4 #c4 ,national ,climate ,bank4 ,subtitle ,c--,national ,climate ,bank ,sec4 #afba4 ,definitions4 ,sec4 #afbb4 ,establishment4 ,sec4 #afbc4 ,mandate4 ,sec4 #afbd4 ,finance and investment division4 ,sec4 #afbe4 ,start-up ,division4 ,sec4 #afbf4 ,zero-emissions fleet and related infrastructure financing program4 ,sec4 #afbg4 ,project prioritization and requirements4 ,sec4 #afbh4 ,board of ,directors4 ,sec4 #afbi4 ,administration4 ,sec4 #afcj4 ,establishment of risk management committee and audit committee4 ,sec4 #afca4 ,oversight4 ,sec4 #afcb4 ,maximum contingent liability4 #c4 ,national ,climate ,bank ,title ,,xvi of the ,energy ,policy ,act of #bjje 7,public ,law #aji-eh1 as amended7 is amended by adding at the end the following new subtitle3 ,c ,national ,climate ,bank #afba4 ,definitions ,in this subtitle3 7#a7 ,bank ,the term ,bank means the ,national ,climate ,bank established under section #afbb4 7#b7 ,board ,the term ,board means the ,board of ,directors of the ,bank4 7#c7 ,chief executive officer ,the term chief executive officer means the chief executive officer of the ,bank4 7#d7 ,climate-impacted communities ,the term climate-impacted communities includes-- 7,a7 communities of color1 which include any geographically distinct area the population of color of which is higher than the average population of color of the ,state in which the community is located2 7,b7 communities that are already or are likely to be the first communities to feel the direct negative effects of climate change2 7,c7 distressed neighborhoods1 demonstrated by indicators of need1 including poverty1 childhood obesity rates1 academic failure1 and rates of juvenile delinquency1 adjudication1 or incarceration2 7,d7 low-income communities1 defined as any census block group in which #cj percent or more of the population are individuals with low income2 7,e7 low-income households1 defined as a household with annual income equal to1 or less than1 the greater of-- 7i7 an amount equal to #hj percent of the median income of the area in which the household is located1 as reported by the ,department of ,housing and ,urban ,development2 and 7ii7 #bjj percent of the ,federal poverty line2 and 7,f7 rural areas1 which include any area other than-- 7i7 a city or town that has a population of greater than #ej1jjj inhabitants2 and 7ii7 any urbanized area contiguous and adjacent to a city or town described in clause 7i74 7#e7 ,climate resilient infrastructure ,the term climate resilient infrastructure means any project that builds or enhances infrastructure so that such infrastructure-- 7,a7 is planned1 designed1 and operated in a way that anticipates1 prepares for1 and adapts to changing climate conditions2 and 7,b7 can withstand1 respond to1 and recover rapidly from disruptions caused by these climate conditions4 7#f7 ,electrification ,the term electrification means the installation1 construction1 or use of end-use electric technology that replaces existing fossil-fuel-based technology4 7#g7 ,energy efficiency ,the term energy efficiency means any project1 technology1 function1 or measure that results in the reduction of energy use required to achieve the same level of service or output prior to the application of such project1 technology1 function1 or measure1 or substantially reduces greenhouse gas emissions relative to emissions that would have occurred prior to the application of such project1 technology1 function1 or measure4 7#h7 ,fuel switching ,the term fuel switching means any project that replaces a fossil-fuel-based heating system with an electric-powered system or one powered by biomass-generated heat4 7#i7 ,green bank ,the term green bank means a dedicated public or nonprofit specialized finance entity that-- 7,a7 is designed to drive private capital into market gaps for low- and zero-emission goods and services2 7,b7 uses finance tools to mitigate climate change2 7,c7 does not take deposits2 7,d7 is funded by government1 public1 private1 or charitable contributions2 and 7,e7 invests or finances projects-- 7i7 alone2 or 7ii7 in conjunction with other investors4 7#aj7 ,qualified projects ,the terms qualified projects means the following kinds of technologies and activities that are eligible for financing and investment from the ,national ,climate ,bank1 either directly or through ,state and local green banks funded by the ,national ,climate ,bank3 7,a7 ,renewable energy generation1 including the following3 7i7 ,solar4 7ii7 ,wind4 7iii7 ,geothermal4 7iv7 ,hydropower4 7v7 ,ocean and hydrokinetic4 7vi7 ,fuel cell4 7,b7 ,building energy efficiency1 fuel switching1 and electrification4 7,c7 ,industrial decarbonization4 7,d7 ,grid technology such as transmission1 distribution1 and storage to support clean energy distribution1 including smart-grid applications4 7,e7 ,agriculture projects that reduce net greenhouse gas emissions including reforestation1 afforestation1 forestry management1 and regenerative agriculture4 7,f7 ,clean transportation1 including the following3 7i7 ,battery electric vehicles4 7ii7 ,plug-in hybrid electric vehicles4 7iii7 ,hydrogen vehicles4 7iv7 ,other zero-emissions fueled vehicles4 7v7 ,related vehicle charging and fueling infrastructure4 7,g7 ,climate resilient infrastructure4 7,h7 ,any other key areas identified by the ,board as consistent with the mandate of the ,bank as described in section #afbc4 7#aa7 ,renewable energy generation ,the term renewable energy generation means electricity created by sources that are continually replenished by nature1 such as the sun1 wind1 and water4 #afbb4 ,establishment 7a7 ,in general ,not later than #a year after the date of enactment of this subtitle1 there shall be established a nonprofit corporation to be known as the ,national ,climate ,bank4 7b7 ,limitation ,the ,bank shall not be an agency or instrumentality of the ,federal ,government4 7c7 ,full faith and credit ,the full faith and credit of the ,united ,states shall not extend to the ,bank4 7d7 ,nonprofit status ,the ,bank shall-- 7#a7 be an organization described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of that ,code2 7#b7 ensure that no part of the income or assets of the ,bank shall inure to the benefit of any director1 officer1 or employee1 except as reasonable compensation for services or reimbursement for expenses2 and 7#c7 not contribute to or otherwise support any political party or candidate for elective office4 #afbc4 ,mandate ,the ,bank shall make the ,united ,states a world leader in combating the causes and effects of climate change through the rapid deployment of mature technologies and the commercialization and scaling of new technologies by maximizing the reduction of emissions in the ,united ,states for every dollar deployed by the ,bank1 including by-- 7#a7 providing financing support for investments in the ,united ,states in low- and zero-emissions technologies and processes in order to rapidly accelerate market penetration2 7#b7 catalyzing and mobilizing private capital through ,federal investment and supporting a more robust marketplace for clean technologies1 while minimizing competition with private investment2 7#c7 enabling climate-impacted communities to benefit from and afford projects and investments that reduce emissions2 7#d7 providing support for workers and communities impacted by the transition to a low-carbon economy2 7#e7 supporting the creation of green banks within the ,united ,states where green banks do not exist2 and 7#f7 causing the rapid transition to a clean energy economy without raising energy costs to end users and seeking to lower costs where possible4 #afbd4 ,finance and investment division 7a7 ,in general ,there shall be within the ,bank a finance and investment division1 which shall be responsible for-- 7#a7 the ,bank's greenhouse gas emissions mitigation efforts by directly financing qualifying projects or doing so indirectly by providing capital to ,state and local green banks2 7#b7 originating1 evaluating1 underwriting1 and closing the ,bank's financing and investment transactions in qualified projects2 7#c7 partnering with private capital providers and capital markets to attract coinvestment from private banks1 investors1 and others in order to drive new investment into underpenetrated markets1 to increase the efficiency of private capital markets with respect to investing in greenhouse gas reduction projects1 and to increase total investment caused by the ,bank2 7#d7 managing the ,bank's portfolio of assets to ensure performance and monitor risk2 7#e7 ensuring appropriate debt and risk mitigation products are offered2 and 7#f7 overseeing prudent1 noncontrolling equity investments4 7b7 ,products and investment types ,the finance and investment division of the ,bank may provide capital to qualified projects in the form of-- 7#a7 senior1 mezzanine1 and subordinated debt2 7#b7 credit enhancements including loan loss reserves and loan guarantees2 7#c7 aggregation and warehousing2 7#d7 equity capital2 and 7#e7 any other financial product approved by the ,board4 7c7 ,state and local green bank capitalization ,the finance and investment division of the ,bank shall make capital available to ,state and local green banks to enable such banks to finance qualifying projects in their markets that are better served by a locally based entity1 rather than through direct investment by the ,bank4 7d7 ,investment committee ,the debt1 risk mitigation1 and equity investments made by the ,bank shall be-- 7#a7 approved by the investment committee of the ,board2 and 7#b7 consistent with an investment policy that has been established by the investment committee of the ,board in consultation with the risk management committee of the ,board4 #afbe4 ,start-up ,division ,there shall be within the ,bank a ,start-up ,division1 which shall be responsible for providing technical assistance and start-up funding to ,states and other political subdivisions that do not have green banks to establish green banks in those ,states and political subdivisions1 including by working with relevant stakeholders in those ,states and political subdivisions4 #afbf4 ,zero-emissions fleet and related infrastructure financing program ,not later than #a year after the date of establishment of the ,bank1 the ,bank shall explore the establishment of a program to provide low- and zero-interest loans1 up to #cj years in length1 to any school1 metropolitan planning organization1 or nonprofit organization seeking financing for the acquisition of zero-emissions vehicle fleets or associated infrastructure to support zero-emissions vehicle fleets4 #afbg4 ,project prioritization and requirements 7a7 ,emissions reduction mandate ,in investing in projects that mitigate greenhouse gas emissions1 the ,bank shall maximize the reduction of emissions in the ,united ,states for every dollar deployed by the ,bank4 7b7 ,environmental justice prioritization 7#a7 ,in general ,in order to address environmental justice needs1 the ,bank shall1 as applicable1 prioritize the provision of program benefits and investment activity that are expected to directly or indirectly result in the deployment of projects to serve1 as a matter of official policy1 climate-impacted communities4 7#b7 ,minimum percentage ,the ,bank shall ensure that over the #cj-year period of its charter #bj percent of its investment activity is directed to serve climate-impacted communities4 7c7 ,consumer protection 7#a7 ,prioritization ,consistent with mandate under section #afbc to maximize the reduction of emissions in the ,united ,states for every dollar deployed by the ,bank1 the ,bank shall prioritize qualified projects according to benefits conferred on consumers and affected communities4 7#b7 ,consumer credit protection ,the ,bank shall ensure that any residential energy efficiency or distributed clean energy project in which the ,bank invests directly or indirectly complies with the requirements of the ,consumer ,credit ,protection ,act 7#ae ,u4,s4,c4 #afja et seq471 including1 in the case of a financial product that is a residential mortgage loan1 any requirements of title ,i of that ,act relating to residential mortgage loans 7including any regulations promulgated by the ,bureau of ,consumer ,financial ,protection under section #abi;,c7b77#c77;,c7 of that ,act 7#ae ,u4,s4,c4 #afci;c7b77#c77;,c7774 7d7 ,labor 7#a7 ,in general ,the ,bank shall ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed directly by the ,bank will be paid wages not less than those prevailing on similar construction in the locality1 as determined by the ,secretary of ,labor under sections #cada through #cadd1 #cadf1 and #cadg of title #dj1 ,united ,states ,code4 7#b7 ,project labor agreement ,the ,bank shall ensure that projects financed directly by the ,bank with total capital costs of #ajj1jjj1jjj or greater utilize a project labor agreement4 #afbh4 ,board of ,directors 7a7 ,in general ,the ,bank shall operate under the direction of a ,board of ,directors1 which shall be composed of #g members4 7b7 ,initial composition and terms 7#a7 ,selection ,the initial members of the ,board shall be selected as follows3 7,a7 ,appointed members ,three members shall be appointed by the ,president1 with the advice and consent of the ,senate1 of whom no more than two shall belong to the same political party4 7,b7 ,elected members ,four members shall be elected unanimously by the #c members appointed and confirmed pursuant to subparagraph 7,a74 7#b7 ,terms ,the terms of the initial members of the ,board shall be as follows3 7,a7 ,the #c members appointed and confirmed under paragraph 7#a77;,a7 shall have initial #e-year terms4 7,b7 ,of the #d members elected under paragraph 7#a77;,b71 #b shall have initial #c-year terms1 and #b shall have initial #d-year terms4 7c7 ,subsequent composition and terms 7#a7 ,selection ,except for the selection of the initial members of the ,board for their initial terms under subsection 7b71 the members of the ,board shall be elected by the members of the ,board4 7#b7 ,disqualification ,a member of the ,board shall be disqualified from voting for any position on the ,board for which such member is a candidate4 7#c7 ,terms ,all members elected pursuant to paragraph 7#a7 shall have a term of #e years4 7d7 ,qualifications ,the members of the ,board shall collectively have expertise in-- 7#a7 the fields of clean energy1 electric utilities1 industrial decarbonization1 clean transportation1 resiliency1 and sustainable agriculture and forestry practices2 7#b7 climate change science2 7#c7 finance and investments2 and 7#d7 environmental justice and matters related to the energy and environmental needs of climate-impacted communities4 7e7 ,restriction on membership ,no officer or employee of the ,federal or any other level of government may be appointed or elected as a member of the ,board4 7f7 ,quorum ,five members of the ,board shall constitute a quorum4 7g7 ,bylaws 7#a7 ,in general ,the ,board shall adopt1 and may amend1 such bylaws as are necessary for the proper management and functioning of the ,bank4 7#b7 ,officers ,in the bylaws described in paragraph 7#a71 the ,board shall-- 7,a7 designate the officers of the ,bank2 and 7,b7 prescribe the duties of those officers4 7h7 ,vacancies ,any vacancy on the ,board shall be filled through election by the ,board4 7i7 ,interim appointments ,a member elected to fill a vacancy occurring before the expiration of the term for which the predecessor of that member was appointed or elected shall serve for the remainder of the term for which the predecessor of that member was appointed or elected4 7j7 ,reappointment ,a member of the ,board may be elected for not more than #a additional term of service as a member of the ,board4 7k7 ,continuation of service ,a member of the ,board whose term has expired may continue to serve on the ,board until the date on which a successor member is elected4 7l7 ,chief executive officer ,the ,board shall appoint a chief executive officer who shall be responsible for-- 7#a7 hiring employees of the ,bank2 7#b7 establishing the #b divisions of the ,bank described in sections #afbd and #afbe2 and 7#c7 performing any other tasks necessary for the day-to-day operations of the ,bank4 7m7 ,advisory committee 7#a7 ,establishment ,the ,bank shall establish an advisory committee 7in this subsection referred to as the advisory committee71 which shall be composed of not more than #ac members appointed by the ,board on the recommendation of the president of the ,bank4 7#b7 ,members ,members of the advisory committee shall be broadly representative of interests concerned with the environment1 production1 commerce1 finance1 agriculture1 labor1 services1 and ,state ,government4 ,of such members-- 7,a7 not fewer than #c shall be representatives of the small business community2 7,b7 not fewer than #b shall be representatives of the labor community1 except that no #b members may be from the same labor union2 7,c7 not fewer than #b shall be representatives of the environmental nongovernmental organization community1 except that no #b members may be from the same environmental organization2 7,d7 not fewer than #b shall be representatives of the environmental justice nongovernmental organization community1 except that no #b members may be from the same environmental organization2 and 7,e7 not fewer than #b shall be representatives of the consumer protection and fair lending community1 except that no #b members may be from the same consumer protection or fair lending organization4 7#c7 ,meetings ,the advisory committee shall meet not less frequently than once each quarter4 7#d7 ,duties ,the advisory committee shall-- 7,a7 advise the ,bank on the programs undertaken by the ,bank2 and 7,b7 submit to the ,congress an annual report with comments from the advisory committee on the extent to which the ,bank is meeting the mandate described in section #afbc1 including any suggestions for improvement4 7n7 ,chief risk officer 7#a7 ,appointment ,subject to the approval of the ,board1 the chief executive officer shall appoint a chief risk officer from among individuals with experience at a senior level in financial risk management1 who-- 7,a7 shall report directly to the ,board2 and 7,b7 shall be removable only by a majority vote of the ,board4 7#b7 ,duties ,the chief risk officer1 in coordination with the risk management and audit committees established under section #afca1 shall develop1 implement1 and manage a comprehensive process for identifying1 assessing1 monitoring1 and limiting risks to the ,bank1 including the overall portfolio diversification of the ,bank4 #afbi4 ,administration 7a7 ,capitalization 7#a7 ,in general ,to the extent and in the amounts provided in advance in appropriations ,acts1 the ,secretary of ,energy shall transfer to the ,bank-- 7,a7 #aj1jjj1jjj1jjj on the date on which the ,bank is established under section #afbb2 and 7,b7 #e1jjj1jjj1jjj on ,october #a of each of the #e fiscal years following that date4 7#b7 ,authorization of appropriations ,for purposes of the transfers under paragraph 7#a71 there are authorized to be appropriated-- 7,a7 #aj1jjj1jjj1jjj for the fiscal year in which the ,bank is established under section #afbb2 and 7,b7 #e1jjj1jjj1jjj for each of the #e succeeding fiscal years4 7b7 ,charter ,the ,bank shall establish a charter1 the term of which shall be #cj years4 7c7 ,operational funds ,to sustain operations1 the ,bank shall manage revenue from financing fees1 interest1 repaid loans1 and other types of funding4 7d7 ,report ,the ,bank shall submit on a quarterly basis to the relevant committees of ,congress a report that describes the financial activities1 emissions reductions1 and private capital mobilization metrics of the ,bank for the previous quarter4 7e7 ,restriction ,the ,bank shall not accept deposits4 7f7 ,committees ,the ,board shall establish committees and subcommittees1 including-- 7#a7 an investment committee2 and 7#b7 in accordance with section #afcj-- 7,a7 a risk management committee2 and 7,b7 an audit committee4 7g7 ,private contributions ,the ,bank may accept and use philanthropic funds4 #afcj4 ,establishment of risk management committee and audit committee 7a7 ,in general ,to assist the ,board in fulfilling the duties and responsibilities of the ,board under this subtitle1 the ,board shall establish a risk management committee and an audit committee4 7b7 ,duties and responsibilities of risk management committee ,subject to the direction of the ,board1 the risk management committee established under subsection 7a7 shall establish policies for and have oversight responsibility for-- 7#a7 formulating the risk management policies of the operations of the ,bank2 7#b7 reviewing and providing guidance on operation of the global risk management framework of the ,bank2 7#c7 developing policies for-- 7,a7 investment2 7,b7 enterprise risk management2 7,c7 monitoring2 and 7,d7 management of strategic1 reputational1 regulatory1 operational1 developmental1 environmental1 social1 and financial risks2 and 7#d7 developing the risk profile of the ,bank1 including-- 7,a7 a risk management and compliance framework2 and 7,b7 a governance structure to support that framework4 7c7 ,duties and responsibilities of audit committee ,subject to the direction of the ,board1 the audit committee established under subsection 7a7 shall have oversight responsibility for-- 7#a7 the integrity of-- 7,a7 the financial reporting of the ,bank2 and 7,b7 the systems of internal controls regarding finance and accounting2 7#b7 the integrity of the financial statements of the ,bank2 7#c7 the performance of the internal audit function of the ,bank2 and 7#d7 compliance with the legal and regulatory requirements related to the finances of the ,bank4 #afca4 ,oversight 7a7 ,external oversight ,the inspector general of the ,department of ,energy shall have oversight responsibilities over the ,bank4 7b7 ,reports and audit 7#a7 ,annual report ,the ,bank shall publish an annual report which shall be transmitted by the ,bank to the ,president and the ,congress4 7#b7 ,annual audit of accounts ,the accounts of the ,bank shall be audited annually4 ,such audits shall be conducted in accordance with generally accepted auditing standards by independent certified public accountants who are certified by a regulatory authority of the jurisdiction in which the audit is undertaken4 7#c7 ,additional audits ,in addition to the annual audits under paragraph 7#b71 the financial transactions of the ,bank for any fiscal year during which ,federal funds are available to finance any portion of its operations may be audited by the ,government ,accountability ,office in accordance with such rules and regulations as may be prescribed by the ,comptroller ,general of the ,united ,states4 #afcb4 ,maximum contingent liability ,the maximum contingent liability of the ,bank that may be outstanding at any time shall be not more than #gj1jjj1jjj1jjj in the aggregate4 4