,,ii #aag? ,,congress #a/ ,session ,s4 #cafg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,novemb] #d1 #bjba,mr4 ,m>key 7= himself & ,mr4 ,m]kley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,bank ,hold+ ,company ,act ( #aief & ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act to require disclosure ( c]ta9 f9anc$ emissions1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fossil ,free ,f9ance ,act4 #b4 ,alignm5t ( f9anc$ emissions ) sci5ce-bas$ t>gets ,! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq47 is am5d$ by add+ at ! end ! foll[+3 #ae4 ,alignm5t ( f9anc$ emissions ) sci5ce-bas$ t>gets 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ bank hold+ company ,! t]m cov]$ bank hold+ company means a bank hold+ company ) total consolidat$ assets equal to or great] ?an #ej1jjj1jjj1jjj4 7#b7 ,de=e/ation risk commodities ,! t]m de=e/ation risk commodities means globally trad$ goods & raw mat]ials-- 7,a7 t orig9ate f natural =e/ ecosy/ems1 ei!r-- 7i7 directly f )9 =e/ areas2 or 7ii7 f areas previ\sly "u =e/ cov]2 & 7,b7 ! extraction or production ( :i* contributes significantly to ! conv]sion ( natural =e/ to agriculture1 tree plantation1 or o!r non-=e/ l& use4 7#c7 ,f9anc$ emissions ,! t]m f9anc$ emissions means1 ) respect to a cov]$ bank hold+ company1 & any nonbank f9ancial company1 ! %>e ( ! emissions ( su* company attributable to inve/m5t 91 or ! provid+ ( f9ancial s]vices to1 a company or project ( a company1 includ+-- 7,a7 inve/m5ts 9 a debt or equity inve/m5t 9 su* ano!r company or ! assets ( su* ano!r company2 7,b7 project f9ance inve/m5t2 7,c7 und]writ+2 7,d7 syndication or securitization ( loans or asset-back$ securities2 7,e7 d]ivative transactions relat$ to f9anc+ or h$g+2 & 7,f7 m>ket mak+4 7#d7 ,fossil fuel f9anc+ ,! t]m fossil fuel f9anc+ means1 ) respect to a cov]$ bank hold+ company1 inve/m5t 9-- 7,a7 a company t d]ives #ae p]c5t or m ( rev5ue f exploration1 extraction1 process+1 export+1 transport+1 & any o!r significant action ) respect to oil1 natural gas1 coal1 or any byproduct !re(2 or 7,b7 a fossil fuel project4 7#e7 ,fossil fuel project ,! t]m fossil fuel project means a project int5d$ to-- 7,a7 facilitate or exp& exploration1 extraction1 process+1 export+1 transport+1 or any o!r significant action ) respect to oil1 natural gas1 coal2 or 7,b7 con/ruct any infra/ructure relat$ to ! activities 9 subp>agraph 7,a71 su* z wells1 pipel9es1 t]m9als1 ref9]ies1 or utility-sale g5]ation facility4 7#f7 ,natural =e/ ,! t]m natural =e/ means a natural arboreal ecosy/em t-- 7,a7 has a species composition a significant p]c5tage ( :i* is native species2 & 7,b7 conta9s a tree canopy cov] ( m ?an #aj p]c5t ov] an area ( n less ?an #j4e hect>es4 7#g7 ,new or exp&$ fossil fuel project ,! t]m new or exp&$ fossil fuel project means a fossil fuel project t w\ld increase !-- 7,a7 level ( prov5 or developable oil1 natural gas or coal res]ves2 7,b7 mid/ream ?r\ghput ( pipel9es1 t]m9als or ref9]ies2 or 7,c7 combu/ion ( oil1 natural gas or coal = utility-scale electricity g5]ation4 7b7 ,requirem5ts ,n lat] ?an #baj days aft] ! date ( ! enactm5t ( ?is subsection1 & n less ?an once e #b ye>s !reaft]1 a cov]$ bank hold+ company %all-- 7#a7 submit to ! ,bo>d an emission r$uction plan = r$uc+ emissions 9 accordance ) ?is section2 & 7#b7 if ! plan is accept$ "u subsection 7d71 implem5t su* plan4 7c7 ,elem5ts ( plan ,ea* plan requir$ "u subsection 7b77#a7-- 7#a7 %all include-- 7,a7 a plan = ! cov]$ bank hold+ company to rea* z]o f9anc$ emissions by ,janu>y #a1 #bjej2 7,b7 a plan to r$uce ! f9anc$ emissions ( ! bank hold+ company by #ej p]c5t by ,janu>y #a1 #bjcj2 7,c7 a plan to discont9ue new or exp&$ fossil fuel projects n lat] ?an ,janu>y #a1 #bjbc2 7,d7 a plan = ! cov]$ bank hold+ company to discont9ue !rmal coal f9anc+ by ,janu>y #a1 #bjbe2 7,e7 a plan = ! cov]$ bank hold+ company to discont9ue fossil fuel f9anc+ by ,janu>y #a1 #bjcj2 & 7,f7 a plan = ! cov]$ bank hold+ company to elim9ate f9anc+ ( de=e/ation risk commodities28 7,g7 su* o!r requirem5ts z ! ,bo>d det]m9es is necess>y to protect ! f9ancial /ability ( ! ,unit$ ,/ates2 7#b7 may n include c>bon (fsets2 7#c7 may include prov5 negative c>bon emission te*nologies to meet ! requirem5ts "u p>agraph 7#a77;,a7 alone1 provid$ t ^! projects d n negatively impact l[-income1 m9ority1 or indig5\s communities2 7#d7 %all prioritize-- 7,a7 ! cov]$ bank hold+ company )draw+ fund+ f companies & projects t h a disproportionately negative impact on heal? & well-be+ ( l[-income & m9ority communities2 & 7,b7 l5d+ to companies = purposes ( c>ry+ out sev]ance1 retra9+1 & o!r b5efits to work]s impact$ by ! transition to z]o f9anc$ emissions4 7d7 ,consid]ation ( plan ,n lat] ?an #f mon?s aft] receiv+ a plan "u subsection 7b77#a71 ! ,bo>d %all-- 7#a7 accept ! plan2 or 7#b7 reject ! plan if x does n align ) sci5ce-bas$ t>gets )\t ! use ( (fsets or unprov5 c>bon emission r$uction te*nologies & require ! cov]$ bank hold+ company to revise su* plan 9 accordance ) ! sugge/ions ( ! ,bo>d4 7e7 ,p5alties ,9 ! case ( a cov]$ bank hold+ company t does n submit a plan 9 accordance ) ?is section or meet ! requirem5ts set out 9 su* a plan-- 7#a7 ! ,bo>d %all-- 7,a7 apply ! p5alties "u section #h1 ?r\gh proc$ures prescrib$ by ! ,bo>d by rule2 7,b7 require dive/iture ( assets 9 ord] to br+ ! f9anc$ emissions ( a cov]$ bank hold+ company into compliance ) ! requirem5ts set out 9 su* a plan2 & 7,c7 notify ! ,bo>d ( ,directors ( ! ,f$]al ,deposit ,insurance ,corporation ( ! noncompliance ( su* cov]$ bank hold+ company2 & 7#b7 ! ,bo>d ( ,directors ( ! ,f$]al ,deposit ,insurance ,corporation may1 ) respect to any cov]$ bank hold+ company describ$ 9 p>agraph 7#b77;,b7 or a subsidi>y ( su* bank hold+ company t contributes to ! failure ( su* cov]$ bank hold+ company to comply ) ?is section-- 7,a7 t]m9ate insurance "u section #h7;a77#b7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;a77#b772 & 7,b7 c>ry out any o!r corrective action available "u section #ch ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao74 7f7 ,regulations ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,bo>d %all issue regulations e/abli%+ ! =mat & tim+ = submission ( ! plans requir$ "u ?is section4 4 #c4 ,contribution to climate *ange includ$ 9 fsoc designation 7a7 ,au?ority ,to require sup]vision & regulation ( c]ta9 nonbank f9ancial companies ,section #aac ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecbc7 is am5d$-- 7#a7 9 subsection 7a77#b7-- 7,a7 9 subp>agraph 7,j71 by /rik+ & at ! end2 7,b7 by r$esignat+ subp>agraph 7,k7 z subp>agraph 7,l72 & 7,c7 by ins]t+ aft] subp>agraph 7,j7 ! foll[+3 7,k7 ! ext5t to :i* ! company makes a non-trivial contribution to ! f9anc$ emissions 7z def9$ 9 section #ae ( ! ,bank ,hold+ ,company ,act ( #aief7 ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 2 & 7#b7 9 subsection 7b77#b7-- 7,a7 9 subp>agraph 7,j71 by /rik+ & at ! end2 7,b7 by r$esignat+ subp>agraph 7,k7 z subp>agraph 7,l72 & 7,c7 by ins]t+ aft] subp>agraph 7,j7 ! foll[+3 7,k7 ! ext5t to :i* ! company makes a non-trivial contribution to ! f9anc$ emissions 7z def9$ 9 section #ae ( ! ,bank ,hold+ ,company ,act ( #aief7 ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 & 4 7b7 ,enhanc$ sup]vision & prud5tial /&>ds = nonbank f9ancial companies sup]vis$ by ! bo>d ( gov]nors & c]ta9 bank hold+ companies 7#a7 ,developm5t ( prud5tial /&>ds ,section #aae7;b77#a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecbe7;b77#a77 is am5d$-- 7,a7 9 subp>agraph 7,h71 by /rik+ &2 7,b7 9 subp>agraph 7,i71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,j7 dive/iture ( f9anc$ emissions 7z def9$ 9 section #ae ( ! ,bank ,hold+ ,company ,act ( #aief74 4 7#b7 ,requir$ /&>ds ,section #afe7;b77#a77;,a7 ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecfe7;b77#a77;,a77 is am5d$-- 7,a7 9 clause 7iv71 by /rik+ &2 7,b7 9 clause 7v71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7vi7 emissions r$uction plans 9 accordance ) section #ae ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq474 4 #d4 ,reports 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ bank hold+ company ,! t]m cov]$ bank hold+ company means a bank hold+ company ) total consolidat$ assets equal to or great] ?an #ej1jjj1jjj1jjj4 7#b7 ,f9anc$ emissions ,! t]m f9anc$ emissions means1 ) respect to a cov]$ bank hold+ company1 & any nonbank f9ancial company1 ! %>e ( ! emissions ( su* company attributable to inve/m5t 91 or ! provid+ ( f9ancial s]vices to1 a company or project ( a company1 includ+-- 7,a7 inve/m5ts 9 a debt or equity inve/m5t 9 su* ano!r company or ! assets ( su* ano!r company2 7,b7 project f9ance inve/m5t2 7,c7 und]writ+2 7,d7 syndication or securitization ( loans or asset-back$ securities2 7,e7 d]ivative transactions relat$ to f9anc+ or h$g+2 & 7,f7 m>ket mak+4 7#c7 ,sci5ce-bas$ emissions t>gets ,! t]m sci5ce-bas$ emissions t>gets means r$uction 9 gre5h\se gas emissions consi/5t ) prev5t+ an increase 9 global av]age temp]ature ( great] ?an or equal to #a4e degrees ,celsius comp>$ to pre-indu/rial levels4 7b7 ,initial report ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all submit a report to ,congress t-- 7#a7 id5tifies curr5t level ( f9anc$ emissions 9 ! f9ancial sy/em ( ! ,unit$ ,/ates2 7#b7 includes an analysis ( tr5ds 9 f9anc$ emissions r$uctions2 7#c7 includes a summ>y ( ! commitm5ts ( cov]$ bank hold+ companies to r$uce f9anc$ emissions2 7#d7 e/imates ! f9anc$ emissions 9 ! f9ancial sy/em ( ! ,unit$ ,/ates ne$$ to meet sci5ce-bas$ emissions t>gets2 7#e7 id5tifies regulatory gaps 9 r$uc+ f9anc$ emissions t _c be address$ ) au?orities ( ! ,bo>d & recomm5dations = address+ su* gaps2 7#f7 id5tifies data quality *all5ges = assess+ f9anc$ emissions & recomm5dations to address ^? *all5ges2 7#g7 id5tifies ! equitable transition ne$s = work]s & communities t w be impact$ by a %ift to a z]o f9anc$ emissions economy2 7#h7 analyzes-- 7,a7 ! numb] & gr\ps ( p affect$ by a transition to z]o f9anc$ emissions2 & 7,b7 ! economic impact ( su* a transition ) respect to su* gr\ps2 & 7#i7 id5tifies regulatory & legislative options = mitigat+ ! economic impacts describ$ 9 p>agraph 7#h77;,b71 includ+-- 7,a7 ! use ( exi/+ au?orities1 includ+ ! ,community ,re9ve/m5t ,act ( #aigg 7#ab ,u4,s4,c4 #bija et seq47 & em]g5cy l5d+ p[]s "u section #ac ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cdb72 & 7,b7 ! e/abli%m5t ( a public inve/m5t bank to f9ance inve/m5t 9 an equitable transition to a z]o f9anc$ emissions economy4 7c7 ,p]iodic report ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection & n less ?an once e #b ye>s !reaft]1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all submit a report to ,congress t includes-- 7#a7 an analysis ( ! progress aga9/ align+ ) f9anc$ emissions t>gets2 7#b7 ! e/imates describ$ 9 subsection 7b77#d72 & 7#c7 an analysis ( ! progress made 9 ! prec$+ #b ye>s t[>ds an equitable transition to a z]o f9anc$ emissions economy2 & 7#d7 recomm5dations ) respect to assi/ance ,congress & o!r ,f$]al ag5cies may provide to-- 7,a7 facilitate a r$uction ( f9anc$ emissions2 & 7,b7 support an equitable transition to a z]o f9anc$ emissions economy4 7d7 ,collection ( data ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em %all collect su* data z ne$$ f bank hold+ companies to c>ry out ! reports "u ?is section4