,,ii #aafth ,,congress #b;d ,session ,s4 #ejda ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ag1 #bjbj,mrs4 ,feinstein 7for herself and ,ms4 ,cortez ,masto7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to establish the ,advisory ,committee on ,climate ,risk on the ,financial ,stability ,oversight ,council4 #a4 ,short title ,this ,act may be cited as the ,addressing ,climate ,financial ,risk ,act of #bjbj4 #b4 ,advisory ,committee on ,climate ,risk 7a7 ,in general ,subtitle ,a of the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecba et seq47 is amended by inserting after section #aba 7#ab ,u4,s4,c4 #ecca7 the following3 #aba;,a4 ,advisory ,committee on ,climate ,risk 7a7 ,establishment ,there is established in the ,council the ,climate ,risk ,advisory ,committee1 which shall-- 7#a7 consult with the ,council in the drafting by the ,council of an annual report on climate risk required under subsection 7e7 and other climate risk matters2 and 7#b7 meet with the ,council not less frequently than once per year4 7b7 ,membership 7#a7 ,in general ,the ,committee shall consist of the following members3 7,a7 ,four members who are climate science experts1 of whom-- 7i7 #a shall be appointed by the ,secretary of ,energy2 7ii7 #a shall be appointed by the ,administrator of the ,environmental ,protection ,agency2 and 7iii7 #b shall be appointed by the ,director of the ,national ,science ,foundation4 7,b7 ,eight members who are experts in climate economics or climate financial risk appointed by the ,council1 of whom not fewer than #a member is each an expert in-- 7i7 insurance2 7ii7 capital markets2 7iii7 banking2 7iv7 international financial markets2 and 7v7 housing4 7#b7 ,prohibition ,no member of the ,committee may be employed by a company within the jurisdiction of a member agency of the ,council4 7c7 ,term ,the members of the ,committee shall be appointed for #c-year terms1 except that the initial terms of the first members of the ,committee shall be staggered so that-- 7#a7 #d members serve terms of #c years2 7#b7 #d members serve terms of #b years2 and 7#c7 #d members serve terms of #a years4 7d7 ,consultation ,the ,council shall consult with the ,committee in carrying out the requirements of this section4 7e7 ,report on climate financial risk ,not later than #bgj days after the date of enactment of this section1 the ,council shall1 in coordination with the ,committee and the ,deputies ,committee of the ,council1 publish a report that-- 7#a7 assesses-- 7,a7 the potential impact of climate risk on the financial stability of the ,united ,states2 7,b7 the extent to which ,federal and ,state financial regulatory agencies have sufficient expertise on climate risk2 and 7,c7 the quality of data available to ,council members to properly assess climate financial risk and any gaps in data that exist2 and 7,d7 the extent to which supervised financial institutions are engaging in sound climate risk management2 and 7,e7 the degree of coordination among ,federal and ,state financial regulatory agencies on climate risk2 and 7,f7 the degree of coordination by ,federal and ,state financial regulatory agencies with international financial regulatory authorities on climate financial risk2 and 7,g7 how ,u4,s4 climate financial risk disclosure requirements compare to climate financial risk disclosure regimes in other countries and to other regimes that are available2 and 7,h7 any other areas the ,council believes are important2 and 7#b7 provides recommendations based on the assessments in paragraph 7#a7 to ,federal and ,state financial regulatory agencies and to ,congress on how to improve the ability of the financial regulatory system in the ,united ,states to identify and mitigate climate financial risk4 7f7 ,member agencies ,each member agency should develop and make publicly available a strategy to identify and mitigate climate financial risk within the jurisdiction of the member agency4 7g7 ,coordination ,the ,council should-- 7#a7 facilitate the sharing of best practices on climate financial risk across agencies2 and 7#b7 assign the ,office of ,financial ,research to conduct ongoing research into climate financial risk4 7h7 ,inclusion in annual report ,the ,council shall include a section on climate financial risk in-- 7#a7 the annual report of the ,council to ,congress2 and 7#b7 if relevant1 in any other report to ,congress4 4 7b7 ,technical and conforming amendment ,the table of contents of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act in section #a7;b7 of that ,act is amended by inserting after the item relating to section #aba the following3 ,sec4 #aba;,a4 ,advisory ,committee on ,climate ,risk4 4 #c4 ,update on supervisory guidance on climate risk 7a7 ,definition ,in this section1 the term ,federal banking agency has the meaning given the term in section #b of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja74 7b7 ,update ,each ,federal banking agency and the ,national ,credit ,union ,administration shall update applicable supervisory guidance to include climate risk1 including credit1 liquidity1 market1 operational1 and reputational risk to ensure that supervised financial institutions appropriately identify and mitigate climate financial risk4 7c7 ,coordination ,the ,federal ,financial ,institutions ,examination ,council shall ensure that the guidance updated under subsection 7b7 is-- 7#a7 appropriately coordinated among the ,federal banking agencies and the ,national ,credit ,union ,administration2 and 7#b7 shared with ,state regulators4 #d4 ,update nonbank ,,sifi designation guidance ,the ,financial ,stability ,oversight ,council shall update subpart ,b of part #acaj of title #ab1 ,code of ,federal ,regulations1 to specify how the ,council will incorporate climate risk into determinations described in that subpart4 #e4 ,,fio report on insurance regulation and climate risk ,not later than #a year after the date of enactment of this ,act1 the ,federal ,insurance ,office shall publish a report that-- 7#a7 assesses the potential impact of climate financial risk on the insurance sector in the ,united ,states2 and 7#b7 recommends ways to modernize and improve the system of climate risk insurance regulation in the ,united ,states4 #f4 ,improve global coordination ,it is the sense of ,congress that relevant ,federal financial regulatory agencies and the ,department of the ,treasury1 if relevant1 should-- 7#a7 join the ,network for ,greening the ,financial ,system and other international organizations focused on climate financial risk2 7#b7 formally join the ,task ,force on ,climate-,related ,financial ,risks of the ,basel ,committee on ,banking ,supervision2 and 7#c7 work with international regulators on climate financial risk whenever possible1 consistent with ,united ,states law4