,,ii #aafth ,,congress #ast ,session ,s4 #bjeg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #h1 #bjai ,mr4 ,markey 7for himself1 ,mr4 ,van ,hollen1 ,mr4 ,schatz1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,environment and ,public ,works ,a ,,bill ,to establish a ,national ,climate ,bank4 #a4 ,short title ,this ,act may be cited as the ,national ,climate ,bank ,act4 #b4 ,national ,climate ,bank 7a7 ,in general ,title ,,lxii of the ,revised ,statutes 7#ab ,u4,s4,c4 #ba et seq47 is amended by adding at the end the following3 ,,five ,national ,climate ,bank ,sec4 #ebde4 ,findings4#ebde;,a4 ,definitions4 #ebde;,b4 ,establishment4 #ebde;,c4 ,purpose4 #ebde;,d4 ,investments and procurements division4 #ebde;,e4 ,start-up division4 #ebde;,f4 ,project types4 #ebde;,g4 ,cash for carbon program4 #ebde;,h4 ,project and ,investment attributes4 #ebde;,i4 ,board of ,directors4#ebde;,j4 ,administration4#ebde,k4 ,establishment of risk and audit committees4#ebde,l4 ,external oversight4#ebde,m4 ,maximum contingent liability4 #ebde4 ,findings ,congress finds that-- 7#a7 the ,october #bjah report entitled ,special ,report on ,global ,warming of #a4e ,c by the ,intergovernmental ,panel on ,climate ,change and the ,november #bjah ,fourth ,national ,climate ,assessment report found that-- 7,a7 human activity is the dominant cause of observed climate change over the past century2 7,b7 a changing climate is causing sea levels to rise and an increase in wildfires1 severe storms1 droughts1 and other extreme weather events that threaten human life1 healthy communities1 and critical infrastructure2 7,c7 global warming at or above #b degrees ,celsius beyond pre-industrialized levels will cause-- 7i7 mass migration from the regions most affected by climate change2 7ii7 more than #ejj1jjj1jjj1jjj in lost annual economic output in the ,united ,states by the year #bajj2 7iii7 wildfires that1 by #bjej1 will annually burn at least twice as much forest area in the western ,united ,states than was typically burned by wildfires in the years preceding #bjai2 7iv7 a loss of more than #ii percent of all coral reefs on ,earth2 7v7 more than #cej1jjj1jjj more people to be exposed globally to deadly heat stress by #bjej2 and 7vi7 a risk of damage to #a1jjj1jjj1jjj1jjj of public infrastructure and coastal real estate in the ,united ,states2 and 7,d7 global temperatures must be kept below #a4e degrees ,celsius above pre-industrialized levels to avoid the most severe impacts of a changing climate1 which will require-- 7i7 global reductions in greenhouse gas emissions from human sources of #dj to #fj percent from #bjaj levels by #bjcj2 and 7ii7 net-zero global emissions by #bjej2 7#b7 7,a7 according to ,bloomberg ,new ,energy ,finance1 in #bjah1 approximately #fd1jjj1jjj1jjj was invested in renewable energy in the ,united ,states2 and 7,b7 according to the ,international ,energy ,agency1 in #bjah1 approximately #db1jjj1jjj1jjj was invested in energy efficiency in ,north ,america2 7#c7 investments in renewable energy and energy efficiency have a demonstrated track record of increasing jobs while lowering the cost of new renewable energy investments1 which benefits the clean energy economy2 7#d7 green banks can be used to accelerate investment in-- 7,a7 new and emerging technologies2 and 7,b7 new and innovative financing products to leverage private sector financing2 7#e7 green banking has a demonstrated track record of success at increasing investment in the clean energy economy2 7#f7 green banks have led to #c1fgj1jjj1jjj of investment in cost-effective clean energy projects across the ,united ,states1 lowering energy costs for end-users1 with that investment total composed of-- 7,a7 #a1jgi1jjj1jjj in public funds2 and 7,b7 #b1eia1jjj1jjj in private and philanthropic capital2 7#g7 in #bjah1 green banks were operating in a number of ,states and other jurisdictions1 including-- 7,a7 the ,district of ,columbia2 and 7,b7 the ,states of-- 7i7 ,colorado2 7ii7 ,connecticut2 7iii7 ,florida2 7iv7 ,hawaii2 7v7 ,maryland2 7vi7 ,michigan2 7vii7 ,nevada2 7viii7 ,new ,york2 and 7ix7 ,rhode ,island2 7#h7 in the many different types of electricity markets around the country1 achieving #ajj percent market penetration of clean energy will require delivery of clean electric energy that is cheaper than alternative fossil-fuel based electricity2 7#i7 market-based clean energy financing tools1 such as those used by existing ,state and local green banks1 can be used-- 7,a7 to accelerate the deployment of clean energy2 7,b7 to reduce greenhouse gas emissions in the ,united ,states by substituting fossil-fuel based energy with lower-cost clean energy2 7,c7 to unlock private investment by offering complementary capital that can change the dynamics of a capital stack and make new projects worth investing in for private sector capital providers2 and 7,d7 to open new markets for greater investment and increase opportunities for communities and the private sector2 and 7#aj7 the ,federal ,government can accelerate and rapidly expand the deployment of clean energy technologies by creating a dedicated financial institution that can support the work of existing green banks and provide greater capital for efforts to reduce emissions1 increasing the overall scale of clean energy investment and the pace of substitution of clean energy technologies for fossil-fuel based technologies4 #ebde;,a4 ,definitions ,in this chapter3 7a7 ,bank ,the term ,bank means the ,national ,climate ,bank established under section #ebde;,b4 7b7 ,board ,the term ,board means the ,board of ,directors of the ,national ,climate ,bank established under section #ebde;,i4 7c7 ,chief ,executive ,officer ,the term ,chief ,executive ,officer means the ,chief ,executive ,officer of the ,board appointed under section #ebde;,i7i74 7d7 ,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-- 7,a7 alone2 or 7,b7 in conjunction with other investors4 7e7 ,procurement ,the term procurement means the purchase1 lease1 or acquisition of real or personal property on a bid1 negotiated1 or open-market basis1 including through a sole-source procurement or in such other manner as the ,board and ,chief ,executive ,officer determine to be appropriate and in the best interests of reducing emissions4 #ebde;,b4 ,establishment 7a7 ,in general ,not later than #a year after the date of enactment of this chapter1 there shall be established in the ,district of ,columbia a bank1 to be known as the ,national ,climate ,bank1 in accordance with this chapter4 7b7 ,legal status ,the ,bank shall be an independent1 nonprofit entity outside of the ,federal ,government4 7c7 ,full faith and credit ,the full faith and credit of the ,united ,states shall not extend to the ,bank4 #ebde;,c4 ,purpose ,the purpose of the ,bank is to make the ,united ,states a world leader in combating the causes and effects of climate change and reducing emissions in the ,united ,states for every dollar spent by the ,bank1 through the rapid deployment of mature technologies and the commercialization and scaling of new technologies1 including by-- 7#a7 providing financing support for investments in the ,united ,states in clean and low-emissions technologies and processes2 7#b7 conducting low-cost procurements in the ,united ,states that will be used to lower emissions2 7#c7 catalyzing and mobilizing private capital through ,federal investment and supporting a more robust marketplace for clean technologies1 while minimizing competition with private investment2 7#d7 enabling low- and moderate-income individuals and communities to benefit from and afford projects and investments that reduce emissions2 7#e7 increasing the efficiency and effectiveness of ,federal financing programs that support positive climate outcomes1 such as reduced emissions2 and 7#f7 supporting the creation of green banks within the ,united ,states where green banks do not exist4 #ebde;,d4 ,investments and procurements division 7a7 ,in general ,there shall be within the ,bank an investments and procurements division1 which shall be responsible for-- 7#a7 equity investments in clean energy projects2 7#b7 ensuring appropriate debt and risk mitigation products are offered2 7#c7 overseeing prudent1 noncontrolling equity investments2 7#d7 procurements that will be used to reduce emissions and the cost of emissions reductions through aggregation of demand and other market-based approaches2 and 7#e7 greenhouse gas emissions mitigation efforts4 7b7 ,investment committee ,the suite of debt and risk mitigation products and equity investments made by the ,bank shall be-- 7#a7 approved by an 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 7c7 ,debt products ,debt products and investments by the ,bank shall include direct lending1 colending1 and credit enhancements4 #ebde;,e4 ,start-up division ,there shall be within the ,bank a start-up division1 which shall be responsible for providing technical assistance to ,states and other political subdivisions that do not have green banks to establish independent1 nonprofit green banks in those ,states and political subdivisions1 including by working with relevant stakeholders in those ,states and political subdivisions4 #ebde;,f4 ,project types ,the ,bank shall seek to facilitate affordable investment and procurement1 including in low-income communities and communities of color1 in the following key areas3 7#a7 ,renewable energy4 7#b7 ,energy storage4 7#c7 ,transportation1 including-- 7,a7 low- and zero-emission vehicle infrastructure2 7,b7 transit-oriented development2 and 7,c7 active transportation4 7#d7 ,transmission for clean energy4 7#e7 ,climate resiliency measures4 7#f7 ,energy and water efficiency1 including residential1 commercial1 and industrial efficiency4 7#g7 ,reforestation of degraded land4 7#h7 ,agricultural projects4 7#i7 ,electrification and decarbonization of industrial processes4 7#aj7 ,any other key area identified by the ,board as consistent with the purpose of the ,bank described in section #ebde;,c4 #ebde;,g4 ,cash for carbon program 7a7 ,establishment ,pursuant to guidance and rules issued by the ,board1 the ,bank shall explore the establishment of a cash for carbon program to remove greenhouse gas emissions from the power system4 7b7 ,purpose ,any program established under subsection 7a7 may use market mechanisms to expedite the retirement of carbon-intensive power generation facilities1 such as coal-fired power generation facilities1 acquire carbon assets for the purpose of reducing emissions1 and invest in communities negatively affected by the loss of those facilities or assets1 including market mechanisms such as-- 7#a7 reverse auctions2 7#b7 securitization2 7#c7 the offering of bidder's credits to facilities that pose significant environmental justice or health concerns1 particularly in low-income1 minority1 and distressed neighborhoods 7within the meaning of section #iaj of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #bija note2 ,public ,law #ajb-eej772 and 7#d7 the provision of investment and technical assistance to the local community and site of a facility1 including1 where necessary1 in cooperation with-- 7,a7 the ,administrator of the ,environmental ,protection ,agency2 or 7,b7 other ,federal1 ,state1 or local authorities4 7c7 ,expansion of program ,the ,board may expand any program established under subsection 7a7 to additional carbon-intensive economic sectors beyond power generation1 as determined to be appropriate by the ,board4 #ebde;,h4 ,project and investment attributes 7a7 ,in general ,the ,bank may-- 7#a7 provide financing to regional1 ,state1 and local green banks2 and 7#b7 invest directly in projects that reduce emissions across the ,united ,states4 7b7 ,priority ,in carrying out subsection 7a71 the ,bank shall-- 7#a7 give priority to projects that-- 7,a7 provide jobs2 7,b7 mitigate greenhouse gas emissions2 and 7,c7 serve-- 7i7 low-income1 minority1 and distressed neighborhoods 7within the meaning of section #iaj of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #bija note2 ,public ,law #ajb-eej772 or 7ii7 low-income1 minority1 and rural consumers 7within the meaning of the final rule of the ,bureau of ,consumer ,financial ,protection entitled ,ability-to-,repay and ,qualified ,mortgage ,standards ,under the ,truth in ,lending ,act 7,regulation ,z7 7#gh ,fed4 ,reg4 #fdjh 7,january #cj1 #bjac7772 7#b7 ensure that projects provide access to low-carbon infrastructure1 including clean power1 clean water1 and reliable1 high-quality transportation1 at affordable rates to families in-- 7,a7 low-income1 minority1 and distressed neighborhoods 7within the meaning of section #iaj of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #bija note2 ,public ,law #ajb-eej772 or 7,b7 a rural area 7as defined in section #cdc7;a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a772 and 7#c7 ensure that any residential energy efficiency or distributed clean energy project in which the ,bank invests directly under subsection 7a77#b7 and provides financing to a consumer directly or through a program funded directly or indirectly by the ,bank 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 #afci7;b77#c77;,c7774 #ebde;,i4 ,board of ,directors 7a7 ,in general ,the ,bank shall operate under the direction of a ,board of ,directors1 which shall be composed of #g members from private1 government1 nonprofit1 and other groups1 of whom-- 7#a7 #a shall be the ,secretary of the ,treasury 7or a designee72 7#b7 #a shall be the ,secretary of ,energy 7or a designee72 7#c7 #a shall be the ,director of the ,bureau of ,consumer ,financial ,protection 7or a designee72 and 7#d7 #d shall be appointed by the ,president1 with the advice and consent of the ,senate1 of whom-- 7,a7 #a shall have expertise regarding renewable energy or energy efficiency2 7,b7 #a shall have expertise regarding finance2 7,c7 #a shall have expertise in industrial processes and manufacturing2 and 7,d7 #a shall have expertise regarding sustainable transportation4 7b7 ,quorum ,five members of the ,board shall constitute a quorum4 7c7 ,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 7d7 ,terms 7#a7 ,initial terms ,the initial terms of the members of the ,board shall be #e years4 7#b7 ,subsequent terms ,for terms beginning after the date that is #e years after the date of enactment of this section1 the ,board shall create staggered terms of #c1 #d1 and #e years for members of the ,board4 7e7 ,vacancies ,any vacancy on the ,board shall be filled in the same manner in which the original appointment was made4 7f7 ,interim appointments ,a member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that member was appointed shall serve for the remainder of the term for which the predecessor of that member was appointed4 7g7 ,reappointment ,a ,member of the ,board may be reappointed for not more than #a additional term of service as a member of the ,board4 7h7 ,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 appointed and confirmed4 7i7 ,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 #ebde;,d and #ebde;,e2 and 7#c7 performing any other tasks necessary for the day-to-day operations of the ,bank4 7j7 ,advisory committee 7#a7 ,establishment ,the ,bank shall establish an advisory committee1 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 government1 of whom-- 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 ,congress an annual report with comments from the advisory committee on the extent to which the ,bank is meeting the mandate described in section #ebde;,c1 including any suggestions for improvement4 7k7 ,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 audit and risk management committees established under section #ebde,k1 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 #ebde;,j4 ,administration 7a7 ,capitalization 7#a7 ,in general ,the ,bank shall be capitalized-- 7,a7 with #aj1jjj1jjj1jjj on the date on which the ,bank is established under section #ebde;,b2 and 7,b7 with #e1jjj1jjj1jjj for each of the #e years following that date4 7#b7 ,funding 7,a7 ,initial capitalization ,on the date on which the ,bank is established under section #ebde;,b1 out of any funds in the ,treasury not otherwise appropriated1 the ,secretary of the ,treasury shall transfer to the ,bank the amount specified in paragraph 7#a77;,a74 7,b7 ,subsequent transfers ,on ,october #a of each fiscal year following the date on which the ,bank is established under section #ebde;,b1 out of any funds in the ,treasury not otherwise appropriated1 the ,secretary of the ,treasury shall transfer to the ,bank the amount specified in paragraph 7#a77;,b74 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 #ebde,k-- 7,a7 a risk management committee2 and 7,b7 an audit committee4 7g7 ,private contributions ,the ,bank may accept and use philanthropic funds4 #ebde,k4 ,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 ,chapter1 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 of-- 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 of-- 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 #ebde,l4 ,external oversight ,the ,bank shall be subject to the oversight of the ,comptroller of the ,currency in accordance with section #eafi7;c74 #ebde,m4 ,maximum contingent liability ,the maximum contingent liability of the ,bank that may be outstanding at any #a time shall be not more than #gj1jjj1jjj1jjj in the aggregate4 4 7b7 ,external oversight ,section #eafi of the ,revised ,statutes 7#ab ,u4,s4,c4 #bg7 is amended by adding at the end the following3 7c7 ,national ,climate ,bank ,the ,comptroller shall exempt1 expand1 or alter specific regulations applicable to the ,national ,climate ,bank to better suit the purpose and business model of the ,national ,climate ,bank as an independent1 nonprofit1 nondepository banking institution4 4 7c7 ,inspector general of the ,national ,climate ,bank 7#a7 ,in general ,section #h;,g7a7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app47 is amended-- 7,a7 in paragraph 7#b71 by inserting the ,national ,climate ,bank1 after the ,national ,archives and ,records ,administration12 and 7,b7 in paragraph 7#d7-- 7i7 in subparagraph 7,i71 by striking and at the end2 7ii7 in subparagraph 7,j71 by inserting and after ,corporation22 and 7iii7 by adding at the end the following3 7,k7 with respect to the ,national ,climate ,bank1 such term means the ,board of ,directors of the ,national ,climate ,bank2 4 7#b7 ,appointment ,notwithstanding the first sentence of section #h;,g7b7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app471 not later than #ahj days after the ,national ,climate ,bank is established under chapter five of title ,,lxii of the ,revised ,statutes-- 7,a7 the first ,inspector ,general of the ,national ,climate ,bank shall be appointed2 and 7,b7 the ,office of the ,inspector ,general of the ,national ,climate ,bank shall be established4