,,ii #aahth ,,congress #b;d ,session ,s4 #cibb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbd,mr4 ,merkley introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to require the ,board of ,governors of the ,federal ,reserve ,system and the ,securities and ,exchange ,commission to issue an annual report to ,congress projecting and accounting for the economic costs directly and indirectly caused by the impacts of climate change1 to require the ,federal ,retirement ,thrift ,investment ,board to establish a ,federal ,advisory ,panel on the ,economics of ,climate ,change1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,restructuring ,environmentally ,sound ,pensions in ,order to ,negate ,disaster ,act of #bjbd or the ,,respond ,act of #bjbd4 #b4 ,climate change economic cost report ,not later than #a year after the date of enactment of this ,act1 and annually thereafter1 the ,board of ,governors of the ,federal ,reserve ,system and the ,securities and ,exchange ,commission shall jointly submit to ,congress a report that projects and accounts for the economic costs directly and indirectly caused by the impacts of climate change1 which shall include an analysis of-- 7#a7 the effects that climate change has on the labor market1 economic growth1 public health1 and other broad areas of the economy of the ,united ,states2 7#b7 property and land damage from rising sea levels and extreme weather2 and 7#c7 the costs associated with natural disaster relief and mitigation4 #c4 ,federal advisory panel on the economics of climate change 7a7 ,establishment ,the ,federal ,retirement ,thrift ,investment ,board 7referred to in this section as the ,board7 shall establish a panel to be known as the ,federal ,advisory ,panel on the ,economics of ,climate ,change 7referred to in this section as the ,advisory ,panel74 7b7 ,membership 7#a7 ,in general ,the ,advisory ,panel shall consist of #i members1 appointed by the ,board as follows3 7,a7 #c members shall be chosen from among individuals generally recognized for impartiality1 knowledge1 and experience in the field of labor relations and pay policy4 7,b7 #f members shall be chosen from among individuals with expertise in local1 national1 or transnational financing that seeks to insulate financial holdings from climate-related risks and losses4 7#b7 ,limitation ,not more than #c members of the ,advisory ,panel may represent a single employee organization1 council1 federation1 alliance1 association1 or affiliation of employee organizations4 7#c7 ,chair ,the ,board shall select a member of the ,advisory ,panel appointed under paragraph 7#a77;,a7 to serve as the ,chair of the ,advisory ,panel4 7#d7 ,compensation 7,a7 ,in general ,a member of the ,advisory ,panel-- 7i7 may not receive pay by reason of the service of the member on the ,advisory ,panel2 and 7ii7 shall not be considered to be an employee of the ,federal ,government solely because of the service of the member on the ,advisory ,panel4 7,b7 ,expenses ,notwithstanding subparagraph 7,a71 a member of the ,advisory ,panel appointed under paragraph 7#a77;,a7 may be paid expenses in accordance with section #egjc of title #e1 ,united ,states ,code4 7c7 ,duties ,the ,advisory ,panel shall-- 7#a7 advise the ,board on how1 consistent with the fiduciary duties of the ,board1 the ,board can implement investment strategies in a manner that aligns with the goal of the ,united ,states to achieve net zero greenhouse gas emissions not later than #bjej2 7#b7 identify possible investment opportunities in clean and renewable energy and other emerging industries that would maximize returns2 7#c7 produce a comparative analysis comparing the fiduciary efficacy and responsibility of existing investment practices of the ,board with the investment strategies described in paragraph 7#a72 and 7#d7 advise the ,board on how to identify1 assess1 and manage the investment risks and opportunities of climate change and prepare for a transition to a low-carbon economy4 7d7 ,examination 7#a7 ,in general ,in carrying out the duties of the ,advisory ,panel under subsection 7c71 the ,advisory ,panel shall examine the following3 7,a7 ,economic and policy challenges facing the fossil fuel industry over the short1 medium1 and long term4 7,b7 ,quantitative and qualitative analysis and modeling of the economic impact of climate change on ,federal employee retirement programs1 including diversification of investments1 risk tolerance1 future economic and workforce trends1 new opportunities1 expected losses1 and returns4 7,c7 ,the current state of1 and outlook for1 low- and zero-carbon investment opportunities4 7,d7 ,the experiences1 including performance analyses1 of other pension funds and investors that have undertaken concerted strategic efforts to divest from fossil fuel holdings in order to maximize the efficacy and stability of their assets while minimizing their climate-related risk exposure4 7,e7 ,strategic options to address climate-related investment risks through further efforts to divest from fossil fuel holdings1 including-- 7i7 transitioning to a low-carbon or carbon-free benchmark index for all public equities2 7ii7 divesting from significant fossil fuel holdings that are not responsible fiduciary investments for beneficiaries2 and 7iii7 exploring the use of organizations to de-risk investments in carbon dependent funds4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,advisory ,panel shall submit to the ,board a report containing the findings of the ,advisory ,panel1 including the results of the examinations performed under paragraph 7#a74 7e7 ,consultation with ,,fema ,the ,advisory ,panel shall1 in preparing the report required under subsection 7d77#b71 consult with the ,administrator of the ,federal ,emergency ,management ,agency on any matters within the jurisdiction of the ,federal ,emergency ,management ,agency4 7f7 ,review of report 7#a7 ,in general ,if the ,board1 after reviewing the report submitted by the ,advisory ,panel under subsection 7d77#b71 determines that it would be financially profitable1 and consistent with the fiduciary duties of the ,board1 to implement low-carbon investment strategies1 the ,board shall establish a plan to transition the investment practices of the ,board accordingly4 7#b7 ,report to congress ,the ,board shall submit to ,congress1 including to the ,office of the ,law ,revision ,counsel of the ,house of ,representatives1 a report regarding the determination of the ,board under paragraph 7#a71 including if the ,board is unable to determine that it would be financially profitable1 and consistent with the fiduciary duties of the ,board1 to implement low-carbon investment strategies4 7g7 ,termination ,notwithstanding section #ajac of title #e1 ,united ,states ,code1 the ,advisory ,panel shall terminate upon submitting the report required under subsection 7d77#b74 7h7 ,authorization of appropriations ,there are authorized to be appropriated not more than #ejj1jjj for the ,advisory ,panel to comply with the requirements of chapter #aj of title #e1 ,united ,states ,code1 including by ensuring that the ,advisory ,panel will have-- 7#a7 adequate staff and quarters2 and 7#b7 funds available to meet the other necessary expenses of the ,advisory ,panel4 #d4 ,climate ,choice ,stock ,index ,fund 7a7 ,in general ,section #hdch of title #e1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 by redesignating paragraphs 7#d7 through 7#aj7 as paragraphs 7#g7 through 7#ac71 respectively2 7,b7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as paragraphs 7#b71 7#d71 and 7#e71 respectively2 7,c7 by inserting before paragraph 7#b71 as so redesignated1 the following3 7#a7 the term ,climate ,choice ,stock ,index ,fund means the ,climate ,choice ,stock ,index ,fund established under subsection 7b77#a77;,g72 2 7,d7 by inserting after paragraph 7#b71 as so redesignated1 the following3 7#c7 the term entity means any sole proprietorship1 organization1 association1 corporation1 partnership1 joint venture1 limited partnership1 limited liability partnership1 limited liability company1 or other business association1 including any wholly-owned subsidiary1 majority-owned subsidiary1 parent-country national1 or affiliate of the business association1 that exists for the purpose of making profit2 2 and 7,e7 by inserting after paragraph 7#e71 as so redesignated1 the following3 7#f7 the term fossil fuel entity means any entity-- 7,a7 with proven carbon reserves2 or 7,b7 that explores for1 extracts1 processes1 refines1 or transmits coal1 oil1 gas1 oil shale1 or tar sands2 2 and 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,e71 by striking and at the end2 7ii7 in subparagraph 7,f71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7,g7 a ,climate ,choice ,stock ,index ,fund as provided in paragraph 7#f74 2 and 7,b7 by adding at the end the following3 7#f7 7,a7 ,the ,board shall select an index which is a commonly recognized index comprised of common stock4 7,b7 ,the historical performance of the index selected under subparagraph 7,a7 shall be comparable to that of the other investment funds and options available under this subsection4 7,c7 ,the ,climate ,choice ,stock ,index ,fund shall be invested in a portfolio that is designed-- 7i7 to replicate the performance of the index selected under subparagraph 7,a72 7ii7 such that1 to the extent practicable1 the percentage of the ,climate ,choice ,stock ,index ,fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of all shares of that stock by the aggregate market value of all shares of all stocks included in the index selected under subparagraph 7,a72 and 7iii7 to ensure that no investment in the portfolio is an investment with respect to a fossil fuel entity4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall take effect-- 7#a7 only if the ,federal ,retirement ,thrift ,investment ,board1 in the report submitted under section #c7;f77#b71 indicates that the ,board is unable to determine that it would be financially profitable1 and consistent with the fiduciary duties of the ,board1 to implement low-carbon investment strategies2 and 7#b7 on the date on which the ,board submits the report described in paragraph 7#a74