H.R. 10746, Climate-Driven Financial Regulation. Quorum's AI analysis reads it as a trade-off: gains for some, costs for others.
H.R. 10746 · Mixed
What it does
This bill requires large banks (those with $50+ billion in assets) to submit climate emission reduction plans to the Federal Reserve and phase out financing of fossil fuels and deforestation-linked commodities by 2035, reaching zero emissions by 2050. Banks must stop funding new fossil fuel projects within 60 days and thermal coal immediately. The Federal Reserve can reject plans that rely on carbon offsets, impose penalties including asset divestiture, and the FDIC can revoke deposit insurance for non-compliance.
The analysis names renewable energy companies and project developers — and 4 more groups — among the beneficiaries.
The trade-off
The bill defines 'financial sector emissions' to include both direct financed emissions and facilitated emissions (underwriting, advisory), dramatically expanding the scope of bank liability and potentially capturing advisory services unrelated to direct capital provision.
The analysis put a high warning level on this bill. Transparency scores 72%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Ayanna Pressley. Cosponsored by Rashida Tlaib.
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