Sec. 106. Regulations
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/bill/118/hr/6775/ih/section-106·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 1 year after the date of the enactment of this Act, the Board of Governors, the Director of the Bureau of Consumer Financial Protection, and the Corporation shall jointly— establish a separate regulatory scheme with respect to public lending banks, public payment banks, and non-federally chartered banks that receive or are in the process of receiving a certificate of Federal recognition under section 102; and after a notice and comment period during which consumer advocacy organizations shall be invited to submit feedback and suggestions, issue such regulations as are necessary and appropriate to promote public welfare with respect to public lending banks, public payment banks, and non-federally chartered banks that receive or are in the process of receiving a certificate of Federal recognition under section 102.
Not later than 1 year after the date of the enactment of this Act, the Board of Governors shall issue regulations for public lending banks, public payment banks, and non-federally chartered banks to ensure that the services provided by such banks are universal and comprehensively include historically excluded and marginalized groups. A regulation issued under this subsection may not— supersede or supplant any other stronger regulations or standards promulgated by other Federal or applicable State regulatory entities, including any such regulation issued by the Corporation or the Director of the Bureau of Consumer Financial Protection; and result in less robust or less stringent protections to consumers than protections that exist on the date of the enactment of this Act for consumers served by other existing categories of depository institutions, including protection under the Community Reinvestment Act of 1977 ( 12 U.S.C. 2901 et seq. ).
The Board of Governors and the Corporation shall jointly, in a manner that respects the privacy of covered bank customers to the greatest extent possible, develop an annual assessment for determining if covered banks have appropriately provided services to all customers within the jurisdiction of service, based on demographic information chosen by regulators, including race, gender, and area median income of such customers. The Board of Governors, the Corporation, and the Commission shall jointly develop and promulgate rules and regulations to— ensure that any and all activities undertaken and services offered by a covered bank, or any person seeking or in the process of becoming a covered bank, are consistent with Federal and scientifically established standards, goals, and targets with respect to ecological sustainability, climate crisis-mitigation, and decarbonization; and require that any covered bank or person seeking or in the process of becoming a covered bank, may not facilitate fossil fuel production, processing, or infrastructure, including by— providing loans to, making investments in, or otherwise engaging in any activity that is financial in nature, or incidental to such financial activity, with a fossil fuel company; providing loans to, making investments in, or otherwise engaging in any activity that is financial in nature, or incidental to such financial activity, for a fossil fuel project; taking compensation to arrange or facilitate a transaction that provides funds for fossil fuel production or processing from existing or new sources; securitizing assets that provide funds for fossil fuel production or processing from existing or new sources; entering into a derivatives transaction designed to provide funding for, facilitate, or hedge risks from fossil fuel production or processing from existing or new sources; and engaging in any activity that is complementary to a financial activity involving fossil fuel production or processing from existing or new sources, including financing the international trade thereof; or any other form of activity defined by regulators or supervisors of the covered bank.
In this subsection: The term existing sources means— reserves of fossil fuels proven, developed, and producing as of the date of enactment of this section; or fossil infrastructure that would facilitate the production described in clause (i). The term fossil fuel means coal, petroleum, natural gas, or any derivative of coal, petroleum, or natural gas that is used for fuel. The term fossil infrastructure means fossil fuel-related projects, including wells, rail infrastructure, pipelines, terminals, refineries, and power plants.
The term new sources means— any production in excess of proven developed producing reserves of fossil fuels as of the date of enactment of this section; or new or expanded fossil infrastructure that would facilitate the production described in clause (i). The term processing means the preparation of a chemical substance or mixture (including any chemical transformations of, or physical separations involving, such substance or mixture) after its production or extraction, for distribution in commerce— in the same form or physical state as, or in a different form or physical state from, that in which it was received by the person so preparing such substance or mixture; or as part of an article of commerce containing the chemical substance or mixture.
The term production means extractive or production activities that result in fossil fuels being made available for refining or use. Nothing in this section may be construed to preempt any provision of State law that provides greater protection to consumers, or establishes more stringent environmental or ecological regulations, than is provided in this section.
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