,i #aafth ,,congress #b;d ,session ,h4 ,r4 #ijei ,,in ,,the ,,house ,,of ,,representatives ,december #ca1 #bjbj,mr4 ,kennedy 7for himself and ,mr4 ,cicilline7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to require ,federal financial supervisory agencies to evaluate a financial institution's record of meeting community environmentally sustainable investment needs as part of examinations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,climate ,protection and ,sustainable ,communities ,act4 #b4 ,congressional findings and statement of purpose 7a7 ,findings ,congress finds the following3 7#a7 ,financial institutions that are federally regulated and supervised have an obligation to serve the convenience and needs of the entire community1 consistent with safe and sound operations4 ,these institutions include1 but are not limited to1 insured depository institutions 7and their holding companies1 if any71 investment advisers1 broker dealers1 insurers1 non-bank lenders1 credit unions1 investment companies1 and other financial institutions of significant size and operations4 7#b7 ,the convenience and needs of communities include the need for environmentally sustainable investment because-- 7,a7 these financial institutions have1 as a result of their investment1 lending1 and other activities1 contributed to climate change and its effects1 and therefore have a responsibility to act to mitigate climate change2 and 7,b7 these financial institutions receive ,federal benefits not available to other types of businesses1 including-- 7i7 support for ,united ,states ,treasury bond markets1 including extraordinary commitments to purchase such bonds since the onset of the ,,covid-#ai health crisis2 7ii7 access to the ,federal ,reserve ,discount ,window and other special lending facilities established by the ,board of ,governors of the ,federal ,reserve ,system and supported by the ,treasury department2 7iii7 measures to maintain efficient1 transparent1 and competitive markets2 7iv7 regulatory relief during times of stress in the financial system1 such as the ongoing ,,covid-#ai health crisis2 and 7v7 other actions to ensure financial stability and mitigate risk to the financial system as a whole4 7#c7 ,regulated financial institutions have continuing and affirmative obligation to help meet the environmentally sustainable investment needs of the local communities in which they are chartered4 7#d7 ,regulated financial institutions should reflect the communities which they serve1 which includes people of color and women4 7b7 ,purpose ,it is the purpose of this ,act to require covered financial institutions that are regulated and supervised by one or more appropriate financial regulators to meet the environmentally sustainable investment needs of the entire community1 consistent with the safe and sound operation of such institutions4 #c4 ,definitions 7a7 ,in general ,in this ,act3 7#a7 ,application for a deposit facility ,the term application for a deposit facility means an application to the appropriate financial regulator otherwise required under ,federal law or regulations thereunder for-- 7,a7 a charter for a national bank or ,federal savings and loan association2 7,b7 deposit insurance in connection with a newly chartered ,state bank1 savings bank1 savings and loan association or similar institution2 7,c7 the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution2 7,d7 the relocation of the home office or a branch office of an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act72 7,e7 the merger or consolidation with1 or the acquisition of the assets1 or the assumption of the liabilities of an insured depository institution requiring approval under section #ah7;c7 of the ,federal ,deposit ,insurance ,act or under regulations issued under the authority of title ,,iv of the ,national ,housing ,act2 or 7,f7 the acquisition of shares in1 or the assets of1 an insured depository institution requiring approval under section #c of the ,bank ,holding ,company ,act of #aief or section #djh7;e7 of the ,national ,housing ,act4 7#b7 ,appropriate financial regulator ,the term appropriate financial regulator has the meaning given in section #hjc of the ,payment1 ,clearing1 and ,settlement ,supervision ,act of #bjaj 7#ab ,u4,s4,c4 #edfb74 7#c7 ,covered financial institution ,the term covered financial institution means-- 7,a7 an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7,b7 a depository institution holding company 7as defined in such section72 7,c7 an investment adviser or investment company 7as defined in section #bjb of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#b772 7,d7 a covered broker or dealer 7as defined in section #bja7;a77#g7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #echa7;a77#g7772 7,e7 admitted insurers2 7,f7 an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 7,g7 a non-bank lender2 and 7,h7 any entity that has been identified as systemically important by the ,financial ,stability ,oversight ,council4 7#d7 ,environmentally sustainable investment ,the term environmentally sustainable investment means investments1 loans1 and other financial products or services that support climate mitigation and adaptation efforts1 enterprises1 and projects whose impacts have been evaluated to equitably and sustainably advance social and environmental welfare4 7b7 ,application of entire community ,for purposes of this ,act1 with respect to a covered financial institution whose business predominately consists of serving the needs of military personnel who are not located within a defined geographic area1 such covered financial institution may define the term entire community to include the entire deposit customer base without regard to geographic proximity to the covered financial institution4 #d4 ,assessment of covered financial institutions 7a7 ,in general ,except as provided in section #f1 not less than once every #bd months an appropriate financial regulator shall assess the record of a covered financial institution of meeting the environmentally sustainable investment needs of the entire community of such institution1 including low- and moderate-income neighborhoods1 consistent with the safe and sound operation of such institution4 7b7 ,requirements for covered financial institutions 7#a7 ,rating 7,a7 ,in general ,a covered financial institution that received a rating described in subparagraph 7,c71 7,d71 or 7,e7 of section #e7;b77#b7 shall1 within the #ab-month period beginning on the date of receipt of such rating1 take such action as may be necessary in order for such institution to achieve a rating of satisfactory record of meeting community environmentally sustainable investment needs4 7,b7 ,penalty ,a covered financial institution that fails to meet the requirements of subparagraph 7,a7 shall be subject to such penalties as determined appropriate by the appropriate financial regulator of such institution4 7#b7 ,approval of requests ,with respect to any request submitted by a covered financial institution to the appropriate financial regulator to take an action that requires the approval of the regulator1 the appropriate financial regulator may only approve such request if the covered financial institution received a rating of satisfactory record of meeting community environmentally sustainable investment needs or better during the most recent examination of the covered financial institution under this section4 7c7 ,majority-,owned institutions ,in assessing and taking into account1 under subsection 7a71 the record of a nonminority-owned and nonwomen-owned covered financial institution1 the appropriate financial regulator may consider as a factor capital investment1 loan participation1 and other ventures undertaken by such covered financial institution in cooperation with minority- and women-owned financial institutions and low-income credit unions1 if such activities help meet the environmentally sustainable investment needs of the local communities in which such covered financial institution is chartered4 7d7 ,financial ,holding ,company ,requirement 7#a7 ,in general ,an election by a bank holding company to become a financial holding company under section #d of the ,bank ,holding ,company ,act of #aief shall not be effective if-- 7,a7 the ,board finds that1 as of the date the declaration of such election and the certification is filed by such holding company under section #d7l77#a77;,c7 of the ,bank ,holding ,company ,act of #aief1 not all of the subsidiary insured depository institutions of the bank holding company had achieved a rating of satisfactory record of meeting community environmentally sustainable investment needs1 or better1 at the most recent examination of each such institution2 and 7,b7 the ,board notifies the company of such finding before the end of the #cj-;day period beginning on such date4 7#b7 ,limited exclusions for newly acquired insured depository institutions ,any insured depository institution acquired by a bank holding company during the #ab-month period preceding the date of the submission to the ,board of the declaration and certification under section #d7l77#a77;,c7 of the ,bank ,holding ,company ,act of #aief may be excluded for purposes of paragraph 7#a7 during the #ab-month period beginning on the date of such acquisition if-- 7,a7 the bank holding company has submitted an affirmative plan to the appropriate financial regulator to take such action as may be necessary in order for such institution to achieve a rating of satisfactory record of meeting community environmentally sustainable investment needs1 or better1 at the next examination of the institution2 and 7,b7 the plan has been accepted by such agency4 7#c7 ,definitions ,for purposes of this subsection1 the following definitions shall apply3 7,a7 ,bank holding company2 financial holding company ,the terms bank holding company and financial holding company have the meanings given those terms in section #b of the ,bank ,holding ,company ,act of #aief4 7,b7 ,board ,the term ,board means the ,board of ,governors of the ,federal ,reserve ,system4 7,c7 ,insured depository institution ,the term insured depository institution has the meaning given the term in section #c7;c7 of the ,federal ,deposit ,insurance ,act4 #e4 ,written evaluations 7a7 ,required 7#a7 ,in general ,upon the conclusion of each examination of a covered financial institution under section #d1 the appropriate financial regulator shall prepare a written evaluation of the institution's record of meeting the environmentally sustainable investment needs of its entire community1 including low- and moderate-income neighborhoods4 7#b7 ,public and confidential sections ,each written evaluation required under paragraph 7#a7 shall have a public section and a confidential section4 7b7 ,public ,section of ,report 7#a7 ,findings and conclusions 7,a7 ,contents of written evaluation ,the public section of the written evaluation shall-- 7i7 state the appropriate financial regulator's conclusions for each assessment factor identified in the regulations prescribed by such appropriate financial regulator to implement this ,act2 7ii7 discuss the facts and data supporting such conclusions2 and 7iii7 contain the rating of the covered financial institution and a statement describing the basis for the rating4 7,b7 ,metropolitan area distinctions ,the information required by clauses 7i7 and 7ii7 of subparagraph 7,a7 shall be presented separately for each metropolitan area in which a covered financial institution maintains one or more domestic branch offices4 7#b7 ,assigned rating ,the rating of a covered financial institution referred to in paragraph 7#a77;,a77iii7 shall be one of the following3 7,a7 ,outstanding record of meeting community environmentally sustainable investment needs4 7,b7 ,satisfactory record of meeting community environmentally sustainable investment needs4 7,c7 ,sufficient record of meeting community environmentally sustainable investment needs4 7,d7 ,needs to improve record of meeting community environmentally sustainable investment needs4 7,e7 ,substantial noncompliance in meeting community environmentally sustainable investment needs4 7c7 ,confidential ,section of ,report 7#a7 ,privacy of named individuals ,the confidential section of the written evaluation shall contain-- 7,a7 all references that identify any customer of the covered financial institution1 any employee or officer of such institution1 or any person or organization that has provided information in confidence to a ,federal or ,state financial supervisory agency2 and 7,b7 any statements obtained or made by the appropriate financial regulator in the course of an examination which1 in the judgment of the regulator1 are too sensitive or speculative in nature to disclose to the covered financial institution or the public4 7#b7 ,disclosure to depository institution ,the confidential section may be disclosed1 in whole or part1 to the covered financial institution1 if the appropriate financial regulator determines that such disclosure will promote the objectives of this ,act4 ,however1 disclosure under this paragraph shall not identify a person or organization that has provided information in confidence to a ,federal or ,state financial supervisory agency4 7d7 ,institutions ,with ,interstate ,branches 7#a7 ,state-by-state evaluation ,in the case of a covered financial institution that maintains domestic branches in #b or more ,states1 the appropriate financial regulator shall prepare-- 7,a7 a written evaluation of the entire institution's record of performance under this title1 as required by subsections 7a71 7b71 and 7c72 and 7,b7 for each ,state in which the institution maintains #a or more domestic branches1 a separate written evaluation of the institution's record of performance within such ,state under this title1 as required by subsections 7a71 7b71 and 7c74 7#b7 ,multistate metropolitan areas ,in the case of a covered financial institution that maintains domestic branches in #b or more ,states within a multistate metropolitan area1 the appropriate financial regulator shall prepare a separate written evaluation of the institution's record of performance within such metropolitan area under this title1 as required by subsections 7a71 7b71 and 7c74 ,if the appropriate financial regulator prepares a written evaluation pursuant to this paragraph1 the scope of the written evaluation required under paragraph 7#a77;,b7 shall be adjusted accordingly4 7#c7 ,content of ,state-level evaluation ,a written evaluation prepared pursuant to paragraph 7#a77;,b7 shall-- 7,a7 present the information required by subparagraphs 7,a7 and 7,b7 of subsection 7b77#a7 separately for each metropolitan area in which the covered financial institution maintains #a or more domestic branch offices and separately for the remainder of the nonmetropolitan area of the ,state if the covered financial institution maintains #a or more domestic branch offices in such nonmetropolitan area2 and 7,b7 describe how the appropriate financial regulator has performed the examination of the covered financial institution1 including a list of the individual branches examined4 7e7 ,definitions ,for purposes of this section the following definitions shall apply3 7#a7 ,domestic branch ,the term domestic branch means any branch office or other facility of a covered financial institution that accepts deposits1 located in any ,state4 7#b7 ,metropolitan area ,the term metropolitan area means any primary metropolitan statistical area1 metropolitan statistical area1 or consolidated metropolitan statistical area1 as defined by the ,director of the ,office of ,management and ,budget1 with a population of #bej1jjj or more1 and any other area designated as such by the appropriate financial regulator4 7#c7 ,state ,the term ,state has the same meaning as in section #c of the ,federal ,deposit ,insurance ,act4 #f4 ,small covered financial institution regulatory relief 7a7 ,in ,general ,except as provided in subsections 7b7 and 7c71 any covered financial institution with aggregate assets of not more than #bej1jjj1jjj shall be subject to routine examination under this ,act-- 7#a7 not more than once every #fj months for an institution that has achieved a rating of outstanding record of meeting community environmentally sustainable investment needs at its most recent examination under section #d2 7#b7 not more than once every #dh months for an institution that has received a rating of satisfactory record of meeting community environmentally sustainable investment needs at its most recent examination under section #d2 and 7#c7 at least once every #bd months for an institution that has received a rating of less than satisfactory record of meeting community environmentally sustainable investment needs at its most recent examination under section #d4 7b7 ,no ,exception ,from ,examinations in ,connection ,with ,applications for ,deposit ,facilities ,a covered financial institution described in subsection 7a7 shall remain subject to examination under this title in connection with an application for a deposit facility4 7c7 ,discretion ,a covered financial institution described in subsection 7a7 may be subject to more frequent or less frequent examinations for reasonable cause under such circumstances as may be determined by the appropriate financial regulator4 #g4 ,applicability ,the requirements of this ,act shall not supplant the requirements of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bija et seq474 #h4 ,report to ,congress ,each appropriate financial regulator shall include in its annual report to the ,congress a section outlining the actions it has taken to carry out its responsibilities under this ,act4 #i4 ,regulations ,not later than #ahj days after the date of enactment of this ,act1 each appropriate financial regulator shall consult with each other appropriate financial regulator to issue rules to carry out this ,act4 ,to the extent practicable1 the appropriate financial regulator shall issue substantially similar rules4 #aj4 ,effective date ,except as otherwise provided1 the requirements of this ,act shall take effect one year after the date of the enactment of this ,act4