No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7246 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7246
To establish the Climate Financial Risk Committee and Climate Financial
Risk Advisory Committee on the Financial Stability Oversight Council.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 27, 2026
Mr. Casten (for himself, Ms. Castor of Florida, Mr. Lieu, Mr. Mullin,
Ms. Bonamici, Ms. Ansari, Mr. Huffman, Ms. Stansbury, Ms. Velazquez,
Ms. Brownley, Mr. Evans of Pennsylvania, Mr. Min, and Mr. Goldman of
New York) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish the Climate Financial Risk Committee and Climate Financial
Risk Advisory Committee on the Financial Stability Oversight Council.
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 ``Addressing Climate Financial Risk
Act of 2026''.
SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL COMMITTEES ON CLIMATE
FINANCIAL RISK.
(a) In General.--Subtitle A of the Financial Stability Act of 2010
(12 U.S.C. 5321 et seq.) is amended by inserting after section 121 (12
U.S.C. 5331) the following:
``SEC. 121A. CLIMATE FINANCIAL RISK COMMITTEE.
``(a) Establishment.--There is established in the Council the
Climate Financial Risk Committee, which shall--
``(1) support the Council in identifying priority areas for
assessing and mitigating climate-related risks to the financial
system;
``(2) serve as a coordinating body to share information,
facilitate the development of common approaches and standards,
and facilitate communication across Council member agencies;
``(3) collaborate with the Office of Financial Research to
compile climate and financial data from public sources and from
member agencies of the Council, provide analytical tools and
software, and otherwise assist member agencies of the Council
in jointly analyzing potential financial stability risks; and
``(4) provide updates to the Council on the status of the
efforts of the Council and its member agencies to identify and
address climate financial risk, including related to--
``(A) incorporating climate financial risk into
regulatory and supervisory programs;
``(B) improving data and methodologies;
``(C) enhancing climate-related disclosures; and
``(D) assessing climate-related risks to the
financial stability of the United States.
``(b) 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
Council.
``(c) Restriction on Termination.--The Climate Financial Risk
Committee may not be terminated or modified except pursuant to an Act
of Congress.
``SEC. 121B. ADVISORY COMMITTEE ON CLIMATE RISK.
``(a) Establishment.--There is established in the Council the
Advisory Committee on Climate Risk, which shall--
``(1) consult and assist the Council with gathering
information on, conducting analysis of, and making
recommendations to identify, assess, and mitigate climate-
related risks to the financial system, and other duties that
the Climate Financial Risk Committee or the Council may assign;
and
``(2) meet with the Council on a bimonthly basis.
``(b) Membership.--The Advisory Committee shall consist of not more
than 30 members as follows:
``(1) 8 members who are climate science experts with a
demonstrated record of peer-reviewed publications and
professional contributions to climate modeling, climate
financial risk assessment, or related areas, of whom--
``(A) 2 shall be appointed by the Secretary of
Energy;
``(B) 2 shall be appointed by the Administrator of
the Environmental Protection Agency; and
``(C) 4 shall be appointed by the Director of the
National Science Foundation.
``(2) 8 members appointed by the Council who are experts in
climate economics or climate financial risk, of whom not fewer
than one member is an expert in one of the following areas:
``(A) Insurance.
``(B) Capital markets.
``(C) Banking.
``(D) International financial markets.
``(E) Housing finance.
``(F) The perspective of asset owners.
``(3) 2 members from non-governmental research institutions
that offer expertise in environmental or clean energy policy,
appointed by the Council.
``(4) 2 members from consumer advocacy or labor union
groups, appointed by the Director of the Consumer Financial
Protection Bureau.
``(5) 4 members from investor networks or shareholder
advocacy groups, appointed by the Chairman of the Securities
and Exchange Commission.
``(6) Relevant stakeholders from the financial services
industry, commercial businesses, or other organizations, which
shall not include any stakeholders from the oil or gas
industry.
``(c) Term.--The members of the Advisory Committee shall be
appointed for 3-year terms, except that the initial terms of the first
members of the Advisory Committee shall be staggered so that--
``(1) 8 members serve terms of 3 years;
``(2) 8 members serve terms of 2 years; and
``(3) 8 members serve terms of 1 years.
``(d) Restrictions on Removal.--A member of the Advisory Committee
may not be removed prior to the expiration of the term of such member
unless \2/3\ of the heads of the member agencies of the Council vote in
favor of such removal.
``(e) Consultation.--The Council shall consult with the Advisory
Committee in carrying out the requirements of this section.
``(f) 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 agency.
``(g) Coordination.--The Council shall--
``(1) facilitate the sharing of best practices on
addressing climate financial risk across agencies with members
serving on the Advisory Committee; and
``(2) assign the Office of Financial Research to conduct
ongoing research into climate financial risk.
``(h) Inclusion in Annual Report.--The Council shall include a
section on climate financial risk in--
``(1) the annual report of the Council to Congress; and
``(2) if relevant, in any other report to Congress.
``SEC. 121C. REPORT ON CLIMATE FINANCIAL RISK.
``Not later than 270 days after the date of enactment of this
section, and annually thereafter, the Council shall, in coordination
with the Advisory Committee on Climate Risk established under section
121B and the Climate Financial Risk Committee established under section
121A, publish a report that--
``(1) assesses--
``(A) the potential impact of climate-related risks
on the financial stability of the United States;
``(B) the extent to which Federal and State
financial regulatory agencies have sufficient expertise
on climate financial risk;
``(C) the quality of data available to Council
members to properly assess climate financial risk and
any gaps in data that exist;
``(D) the extent to which property and casualty
insurance availability and affordability trends are
affecting credit markets, housing finance, and
financial stability;
``(E) the extent to which nonbank financial
companies and large, interconnected bank holding
companies supervised by the Board of Governors are
engaging in safe and sound management of climate
financial risks;
``(F) the degree of coordination among Federal and
State financial regulatory agencies on climate
financial risk;
``(G) the degree of coordination by Federal and
State financial regulatory agencies with international
financial regulatory authorities on climate financial
risk;
``(H) how climate-related disclosure requirements
in the United States compare to similar disclosure
regimes in other countries; and
``(I) any other areas the Council determines
important; and
``(2) provides recommendations based on the assessments
conducted under paragraph (1) 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 change.''.
(b) Technical and Conforming Amendment.--The table of contents of
the Dodd-Frank Wall Street Reform and Consumer Protection Act in
section 1(b) of that Act is amended by inserting after the item
relating to section 121 the following:
``Sec. 121A. Climate Financial Risk Committee.
``Sec. 121B. Advisory Committee on Climate Risk.
``Sec. 121C. Report on climate financial risk.''.
SEC. 3. UPDATE ON SUPERVISORY GUIDANCE ON CLIMATE FINANCIAL RISK.
(a) Definition.--In this section, the term ``Federal banking
agency'' has the meaning given the term in section 2 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301).
(b) Update.--Each Federal banking agency and the National Credit
Union Administration shall update applicable supervisory guidance to
include climate financial risk, including credit, liquidity, market,
operational, and reputational risk to ensure that each institution
supervised by the Federal banking agency or the National Credit Union
Administration, as appropriate, with greater than $50,000,000,000 in
assets appropriately identify and mitigate climate financial risk.
(c) Coordination.--The Financial Institutions Examination Council
shall ensure that the guidance updated under subsection (b) is--
(1) appropriately coordinated among the Federal banking
agencies and the National Credit Union Administration; and
(2) shared with State regulators.
SEC. 4. UPDATE NONBANK SIFI DESIGNATION GUIDANCE.
The Financial Stability Oversight Council shall update subpart B of
part 1310 of title 12, Code of Federal Regulations, to specify how the
Council will incorporate climate financial risk into determinations
described in that subpart.
SEC. 5. FEDERAL INSURANCE OFFICE REPORT ON INSURANCE REGULATION AND
CLIMATE FINANCIAL RISK.
Not later than one year after the date of enactment of this Act,
the Federal Insurance Office shall publish a report, which may be
submitted along with the report described in section 6, that--
(1) assesses the potential impact of climate financial risk
on the insurance sector in the United States;
(2) provides an update on the implementation of
recommendations made by the 2023 report of the Federal
Insurance Office titled ``Insurance Supervision and Regulation
of Climate-Related Risks''; and
(3) recommends ways to modernize and improve regulation and
supervision of climate financial risk by the insurance sector
in the United States.
SEC. 6. FEDERAL INSURANCE OFFICE DATA COLLECTION ON CLIMATE-RELATED
RISKS.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Federal Insurance Office, in consultation
with the National Association of Insurance Commissioners and State
insurance commissioners, shall publish a report on the homeowners
insurance underwriting data described in subsection (b) for calendar
years 2023 and 2024 to assess climate-related risks across State
insurance markets and how such risks could impact the financial
stability of the United States.
(b) Data Described.--The data described in this subsection--
(1) shall be disaggregated by zip code;
(2) shall include granular data on premiums, policies,
claims, losses, limits, deductibles, non-renewals, and
cancellations, consistent with the information requested under
the ``Federal Insurance Office Climate-Related Financial Risk
Data Collection for U.S. Homeowners Multi-Peril Underwriting
Data'' (88 Fed. Reg. 75380) as modified by the most recent
National Association of Insurance Commissioners Property &
Casualty Insurance Market Intelligence Data Call; and
(3) shall be collected directly by the Federal Insurance
Office from insurance companies, across all lines of business
of such insurance company, pursuant to section 313 of title 31,
United States Code.
(c) Dissemination.--Upon request, the Federal Insurance Office
shall provide to the Committee on Financial Services of the House of
Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, or the State insurance commissioner with regulatory
authority over an insurance company the report required under
subsection (a), including the data described in subsection (b).
(d) Form.--The Federal Insurance Office shall ensure that the
report required under subsection (a) does not include any personally
identifiable information.
(e) Subsequent Reports.--Not later than 180 days after December 31,
2025, and annually thereafter, in accordance with the requirements of
this section, the Federal Insurance Office shall make publicly
available a report on the homeowners insurance underwriting data
described in subsection (b) for the calendar year preceding the date of
the report.
SEC. 7. 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 Treasury, including the
Federal Insurance Office, as applicable, should--
(1) join the Network for Greening the Financial System and
other international organizations focused on climate financial
risk;
(2) formally join the Task Force on Climate-Related
Financial Risks of the Basel Committee on Banking Supervision;
and
(3) work with international regulators on climate financial
risk whenever possible, consistent with United States law.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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