Restructuring Environmentally Sound Pensions in Order to Negate Disaster Act of 2020 or the RESPOND Act of 2020
This bill addresses issues related to the impact of climate change on the economy. The Federal Reserve Board and the Securities and Exchange Commission must annually report on the economic costs of climate change. The Federal Retirement Thrift Investment Board must establish an advisory panel on the economics of climate change to, among other things, advise how the board may invest in clean and renewable energy.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8760 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8760
To require the Board of Governors of the Federal Reserve System and the
Securities and Exchange Commission to issue an annual report to the
Congress projecting and accounting for the economic costs directly and
indirectly caused by the impacts of climate change, and to require the
Federal Retirement Thrift Investment Board to establish a Federal
Advisory Panel on the Economics of Climate Change, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2020
Mr. Cleaver (for himself and Ms. Tlaib) introduced the following bill;
which was referred to the Committee on Oversight and Reform, and in
addition to the Committee on Financial Services, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
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 the
Congress projecting and accounting for the economic costs directly and
indirectly caused by the impacts of climate change, and to require the
Federal Retirement Thrift Investment Board to establish a Federal
Advisory Panel on the Economics of Climate Change, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Restructuring Environmentally Sound
Pensions in Order to Negate Disaster Act of 2020'' or the ``RESPOND Act
of 2020''.
SEC. 2. CLIMATE CHANGE ECONOMIC COST REPORT.
The Board of Governors of the Federal Reserve System and the
Securities and Exchange Commission shall, jointly, issue an annual
report to the Congress projecting and accounting for the economic costs
directly and indirectly caused by the impacts of climate change,
including the labor market, economic growth, property and land damage
from rising sea levels and extreme weather, natural disaster relief and
mitigation, public health, and other broad areas of the economy.
SEC. 3. FEDERAL ADVISORY PANEL ON THE ECONOMICS OF CLIMATE CHANGE.
Section 8438 of title 5, United States Code, is amended by adding
at the end the following:
``(i) Federal Advisory Panel on the Economics of Climate Change.--
``(1) Establishment.--The Board shall establish a panel to
be known as the `Federal Advisory Panel on the Economics of
Climate Change' (the `Advisory Panel').
``(2) Membership.--
``(A) In general.--The Advisory Panel shall consist
of 9 members, appointed by the Board as follows:
``(i) Three members shall be chosen from
among persons generally recognized for their
impartiality, knowledge, and experience in the
field of labor relations and pay policy.
``(ii) Six members shall be chosen from
among persons with expertise in local,
national, or transnational financing that seeks
to support mitigation and adaptation actions to
combat climate change.
``(B) Limitation.--Not more than 3 members of the
Advisory Panel may represent a single employee
organization, council, federation, alliance,
association, or affiliation of employee organizations.
``(C) Chair.--The Board shall appoint one member of
the Advisory Panel appointed pursuant to subparagraph
(A)(i) to serve as the Chair of the Advisory Panel.
``(D) Compensation.--
``(i) In general.--Members of the Advisory
Council may not receive pay by reason of their
service on the Advisory Council, nor shall
members who are not otherwise employees of the
United States be considered employees by reason
of any such service.
``(ii) Expenses.--Notwithstanding clause
(i) members of the Advisory Panel appointed
pursuant to subparagraph (A)(i) may be paid
expenses in accordance with section 5703.
``(3) Duties.--The Advisory Panel shall--
``(A) advise the Board on how, consistent with
their fiduciary duties, the Board can further
decarbonize their portfolio;
``(B) identify possible investment opportunities in
clean and renewable energy and other emerging
industries that would maximize returns;
``(C) produce a comparative analysis comparing the
fiduciary efficacy and responsibility of existing
investment practices of the Board with decarbonized
portfolio alternatives; and
``(D) advise the Board on how to identify, assess,
and manage the investment risks and opportunities of
climate change and prepare for a transition to a low-
carbon economy.
``(4) Examination.--In carrying out the duties described
under paragraph (3), the Advisory Panel shall examine the
following, and issue a report to the Board on the results of
such examination:
``(A) Economic and policy challenges facing the
fossil fuel industry over the short, medium, and long
term.
``(B) Quantitative and qualitative analysis and
modeling of the economic impact of climate change on
Federal employee retirement programs (e.g.,
diversification of investments, risk tolerance, future
economic and workforce trends, new opportunities,
expected losses, and returns).
``(C) The current state of, and outlook for, clean
energy, including possible investment opportunities.
``(D) Experience (including performance analysis)
of other pension funds and investors which have
undertaken concerted de-carbonization efforts or
strategic divestment from fossil fuel holdings in order
to maximize the efficacy and stability of their assets
while minimizing their climate-related risk exposure.
``(E) Strategic options to address climate-related
investment risks through further de-carbonization,
including--
``(i) transitioning to a low-carbon or
carbon-free benchmark index for all public
equities;
``(ii) divesting from significant fossil
fuel holdings that are not responsible
fiduciary investments for beneficiaries; and
``(iii) exploring the use of organizations
to de-risk investments in carbon dependent
funds.
``(5) Consultation with fema.--The Advisory Panel shall, in
preparing the report described under paragraph (4), consult
with the Federal Emergency Management Agency on any matters
within the Agency's jurisdiction.
``(6) Results of examination.--If the Board, after
examining the report issued by the Advisory Panel under
paragraph (4), determines that pension yields would be both
financially profitable and still consistent with the Board's
fiduciary duties if low-carbon investment strategies were
implemented, the Board shall set a plan in place to transition
the Board's investment practices accordingly.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Oversight and Reform, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Oversight and Reform, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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