WASHINGTON - Congressman Byron Donalds (R-FL) introduced legislation to express disapproval of the United States Office of the Comptroller of the Currency (OCC) October 30, 2023, Climate Principles Rule that would restrict the flow of credit and capital within the United States economy.

The "OCC Climate Rule Nullification Resolution" is the 74th piece of legislation proposed by Congressman Donalds during the 118th Congress and received support from Representatives Andy Biggs (R-AZ), Dan Meuser (R-PA), Scott Perry (R-PA), Bill Huizenga (R-MI), Andy Ogles (R-TN), Troy Nehls (R-TX) and Randy Weber (R-TX). Congressman Donalds released the following statement:

"Under Joe Biden, our nation's federal agencies are flagrantly overstepping beyond their agency mandates. We must ensure that unelected bureaucrats in Washington are not drafting and creating national policy–a power explicitly delegated to elected representatives of the people. It is critical that we immediately nullify the politicization of America's federal agencies."

BILL OVERVIEW:

This bill is a Congressional Review Act that would nullify the October 30th Climate Principles promulgated by the OCC.
The principles go beyond the authority of the agency and restrict the flow of credit and capital within the United States economy by forcing lenders to focus on climate related risks.

RULE SUMMARY:

The OCC Climate Principles outline a high-level framework for the management of exposures to climate-related financial risks.
The Climate Principles are intended for US banking organizations with over $100 billion in total consolidated assets, including holding companies, banks, and thrifts.
As with other supervisory guidance, the Climate Principles do not have the force of law in the United States. Rather, the US federal banking regulators will use the Climate Principles as a common set of expectations when supervising the safety and soundness of banking organizations.
Federal Reserve Governor Michelle Bowman noted her concern that the likely potential consequence of the Climate Principles will be to “discourage banks from lending and providing financial services to certain industries.”
Two FDIC directors and two Federal Reserve governors dissented when voting on the final Climate Principles. A common theme in the FDIC dissents is that climate-related financial risk is like many other types of risk, and that focusing on it in this manner will distract regulators and organizations from the core safety and soundness mandate.
The final Climate Principles clarify that organizations should incorporate climate-related financial risks into their risk management frameworks where those risks are material.

SOLUTION:

Rather than putting forth regulations that have no clear restrictions on their applicability, an agency should seek to enforce the laws Congress has already passed. It is not the role of the OCC to identify risks beyond their mandate and this bill ensures that the policy making power stays with Congress.

MORE:

See graphics rollout HERE.
Read the legislation in its entirety HERE.