,,ii #aaith ,,congress #b;d ,session ,s4 #cgaa ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bh1 #bjbf,ms4 ,smith 7for herself1 ,mr4 ,merkley1 ,ms4 ,warren1 ,mr4 ,heinrich1 ,mr4 ,van ,hollen1 and ,mr4 ,padilla7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to establish the ,climate ,financial ,risk ,committee and ,climate ,financial ,risk ,advisory ,committee on the ,financial ,stability ,oversight ,council4 #a4 ,short title ,this ,act may be cited as the ,addressing ,climate ,financial ,risk ,act of #bjbf4 #b4 ,financial ,stability ,oversight ,council committees on climate financial 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 ,climate ,financial ,risk ,committee 7a7 ,establishment ,there is established in the ,council the ,climate ,financial ,risk ,committee1 which shall-- 7#a7 support the ,council in identifying priority areas for assessing and mitigating climate-related risks to the financial system2 7#b7 serve as a coordinating body to share information1 facilitate the development of common approaches and standards1 and facilitate communication across ,council member agencies2 7#c7 collaborate with the ,office of ,financial ,research to compile climate and financial data from public sources and from member agencies of the ,council1 provide analytical tools and software1 and otherwise assist member agencies of the ,council in jointly analyzing potential financial stability risks2 and 7#d7 provide updates to the ,council on the status of the efforts of the ,council and its member agencies to identify and address climate financial risk1 including related to-- 7,a7 incorporating climate financial risk into regulatory and supervisory programs2 7,b7 improving data and methodologies2 7,c7 enhancing climate-related disclosures2 and 7,d7 assessing climate-related risks to the financial stability of the ,united ,states4 7b7 ,membership ,the ,climate ,financial ,risk ,committee shall consist of staff representatives from each of the member agencies of the ,council and shall be led by the ,deputy ,assistant ,secretary of the ,council4 7c7 ,restriction on termination ,the ,climate ,financial ,risk ,committee may not be terminated or modified except pursuant to an ,act of ,congress4 #aba;,b4 ,advisory ,committee on ,climate ,risk 7a7 ,establishment ,there is established in the ,council the ,advisory ,committee on ,climate ,risk1 which shall-- 7#a7 consult and assist the ,council with gathering information on1 conducting analysis of1 and making recommendations to identify1 assess1 and mitigate climate-related risks to the financial system1 and other duties that the ,climate ,financial ,risk ,committee or the ,council may assign2 and 7#b7 meet with the ,council on a bimonthly basis4 7b7 ,membership ,the ,advisory ,committee shall consist of not more than #cj members as follows3 7#a7 ,eight members who are climate science experts with a demonstrated record of peer-reviewed publications and professional contributions to climate modeling1 climate financial risk assessment1 or related areas1 of whom-- 7,a7 #b shall be appointed by the ,secretary of ,energy2 7,b7 #b shall be appointed by the ,administrator of the ,environmental ,protection ,agency2 and 7,c7 #d shall be appointed by the ,director of the ,national ,science ,foundation4 7#b7 ,eight members1 to be appointed by the ,council1 who are experts in climate economics or climate financial risk1 of whom not fewer than #a member is an expert in one of the following areas3 7,a7 ,insurance4 7,b7 ,capital markets4 7,c7 ,banking4 7,d7 ,international financial markets4 7,e7 ,housing finance4 7,f7 ,the perspective of asset owners4 7#c7 ,two members from nongovernmental research institutions that offer expertise in environmental or clean energy policy1 appointed by the ,council4 7#d7 ,two members from consumer advocacy or labor union groups1 appointed by the ,director4 7#e7 ,four members from investor networks or shareholder advocacy groups1 appointed by the ,chairman of the ,securities and ,exchange ,commission4 7#f7 ,relevant stakeholders from the financial services industry1 commercial businesses1 or other organizations1 which shall not include any stakeholders from the oil or gas industry4 7c7 ,term ,the members of the ,advisory ,committee shall be appointed for #c-year terms1 except that the initial terms of the first members of the ,advisory ,committee shall be staggered so that-- 7#a7 #h members serve terms of #c years2 7#b7 #h members serve terms of #b years2 and 7#c7 #h members serve terms of #a year4 7d7 ,restrictions on ,removal ,a member of the ,advisory ,committee may not be removed before the date on which the term of the member expires unless #b_/c of the heads of the member agencies of the ,council vote in favor of such removal4 7e7 ,consultation ,the ,council shall consult with the ,advisory ,committee in carrying out the requirements of this section4 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 shall-- 7#a7 facilitate the sharing of best practices on addressing climate financial risk across agencies with members serving on the ,advisory ,committee2 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 #aba;,c4 ,report on climate financial risk ,not later than #bgj days after the date of enactment of this section1 and annually thereafter1 the ,council shall1 in coordination with the ,advisory ,committee on ,climate ,risk established under section #aba;,b and the ,advisory ,committee on ,climate ,risk established under section #aba;,a1 publish a report that-- 7#a7 assesses-- 7,a7 the potential impact of climate-related risks 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 financial risk2 7,c7 the quality of data available to ,council members to properly assess climate financial risk and any gaps in data that exist2 7,d7 the extent to which property and casualty insurance availability and affordability trends are affecting credit markets1 housing finance1 and financial stability2 7,e7 the extent to which nonbank financial companies and large1 interconnected bank holding companies supervised by the ,board of ,governors are engaging in safe and sound management of climate financial risks2 7,f7 the degree of coordination among ,federal and ,state financial regulatory agencies on climate financial risk2 7,g7 the degree of coordination by ,federal and ,state financial regulatory agencies with international financial regulatory authorities on climate financial risk2 7,h7 how climate-related disclosure requirements in the ,united ,states compare to similar disclosure regimes in other countries2 and 7,i7 any other areas the ,council determines important2 and 7#b7 provides recommendations based on the assessments conducted under 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 both the short- and long-term financial risks associated with climate change4 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 ,climate ,financial ,risk ,committee4,sec4 #aba;,b4 ,advisory ,committee on ,climate ,risk4,sec4 #aba;,c4 ,report on climate financial risk4 4 #c4 ,update on supervisory guidance on climate financial 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 financial risk1 including credit1 liquidity1 market1 operational1 and reputational risk to ensure that each institution supervised by the ,federal banking agency or the ,national ,credit ,union ,administration1 as applicable1 with greater than #ej1jjj1jjj1jjj in assets appropriately identify and mitigate climate financial risk4 7c7 ,coordination ,the ,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 financial risk into determinations described in that subpart4 #e4 ,federal ,insurance ,office report on insurance regulation and climate financial risk ,not later than #a year after the date of enactment of this ,act1 the ,federal ,insurance ,office shall publish a report1 which may be submitted along with the report described in section #f1 that-- 7#a7 assesses the potential impact of climate financial risk on the insurance sector in the ,united ,states2 7#b7 provides an update on the implementation of recommendations made by the #bjbc report of the ,federal ,insurance ,office titled ,insurance ,supervision and ,regulation of ,climate-,related ,risks2 and 7#c7 recommends ways to modernize and improve regulation and supervision of climate financial risk by the insurance sector in the ,united ,states4 #f4 ,federal ,insurance ,office data collection on climate-related risks 7a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,federal ,insurance ,office1 in consultation with the ,national ,association of ,insurance ,commissioners and ,state insurance commissioners1 shall publish a report on the homeowners insurance underwriting data described in subsection 7b7 for calendar years #bjbc and #bjbd to assess climate-related risks across ,state insurance markets and how such risks could impact the financial stability of the ,united ,states4 7b7 ,data described ,the data described in this subsection-- 7#a7 shall be disaggregated by zip code2 7#b7 shall include granular data on premiums1 policies1 claims1 losses1 limits1 deductibles1 non-renewals1 and cancellations1 consistent with the information requested under the ,federal ,insurance ,office ,climate-,related ,financial ,risk ,data ,collection for ,u4,s4 ,homeowners ,multi-,peril ,underwriting ,data 7#hh ,fed4 ,reg4 #gechj71 as modified by the most recent ,national ,association of ,insurance ,commissioners ,property ,casualty ,insurance ,market ,intelligence ,data ,call2 and 7#c7 shall be collected directly by the ,federal ,insurance ,office from insurance companies1 across all lines of business of such insurance company1 pursuant to section #cac of title #ca1 ,united ,states ,code4 7c7 ,dissemination ,upon request1 the ,federal ,insurance ,office shall provide to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 the ,committee on ,financial ,services of the ,house of ,representatives1 or the ,state insurance commissioner with regulatory authority over an insurance company the report required under subsection 7a71 including the data described in subsection 7b74 7d7 ,form ,the ,federal ,insurance ,office shall ensure that the report required under subsection 7a7 does not include any personally identifiable information4 7e7 ,subsequent reports ,not later than ,july #a1 #bjbf1 and annually thereafter1 in accordance with the requirements of this section1 the ,federal ,insurance ,office shall make publicly available a report on the homeowners insurance underwriting data described in subsection 7b7 for the calendar year preceding the date of the report4 #g4 ,sense of ,congress relating to improving global coordination ,it is the sense of ,congress that relevant ,federal financial regulatory agencies and the ,department of the ,treasury1 including the ,federal ,insurance ,office1 as applicable1 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