I 
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. 
VELA´ZQUEZ, Ms. BROWNLEY, Mr. EVANS of Pennsylvania, Mr. MIN, and 
Mr. GOLDMAN of New York) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
A BILL 
To establish the Climate Financial Risk Committee and Cli-
mate Financial Risk Advisory Committee on the Finan-
cial Stability Oversight Council. 
Be it enacted by the Senate and House of Representa-
tives 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’’. 
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SEC. 2. FINANCIAL STABILITY OVERSIGHT COUNCIL COM-
MITTEES ON CLIMATE FINANCIAL RISK. 
(a) IN GENERAL.—Subtitle A of the Financial Sta-
bility Act of 2010 (12 U.S.C. 5321 et seq.) is amended 
by inserting after section 121 (12 U.S.C. 5331) the fol-
lowing: 
‘‘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 in-
formation, facilitate the development of common ap-
proaches and standards, and facilitate communica-
tion 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 sta-
tus of the efforts of the Council and its member 
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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 modi-
fied 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 gath-
ering information on, conducting analysis of, and 
making recommendations to identify, assess, and 
mitigate climate-related risks to the financial sys-
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tem, 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 publica-
tions and professional contributions to climate mod-
eling, 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 Adminis-
trator 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 ex-
pert in one of the following areas: 
‘‘(A) Insurance. 
‘‘(B) Capital markets. 
‘‘(C) Banking. 
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‘‘(D) International financial markets. 
‘‘(E) Housing finance. 
‘‘(F) The perspective of asset owners. 
‘‘(3) 2 members from non-governmental re-
search institutions that offer expertise in environ-
mental 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 Commis-
sion. 
‘‘(6) Relevant stakeholders from the financial 
services industry, commercial businesses, or other 
organizations, which shall not include any stake-
holders from the oil or gas industry. 
‘‘(c) TERM.—The members of the Advisory Com-
mittee shall be appointed for 3-year terms, except that the 
initial terms of the first members of the Advisory Com-
mittee 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. 
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‘‘(d) RESTRICTIONS ON REMOVAL.—A member of the 
Advisory Committee may not be removed prior to the expi-
ration 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 ju-
risdiction 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 Con-
gress; and 
‘‘(2) if relevant, in any other report to Con-
gress. 
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‘‘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 Fi-
nancial Risk Committee established under section 121A, 
publish a report that— 
‘‘(1) assesses— 
‘‘(A) the potential impact of climate-re-
lated risks on the financial stability of the 
United States; 
‘‘(B) the extent to which Federal and 
State financial regulatory agencies have suffi-
cient expertise on climate financial risk; 
‘‘(C) the quality of data available to Coun-
cil members to properly assess climate financial 
risk and any gaps in data that exist; 
‘‘(D) the extent to which property and cas-
ualty insurance availability and affordability 
trends are affecting credit markets, housing fi-
nance, and financial stability; 
‘‘(E) the extent to which nonbank financial 
companies and large, interconnected bank hold-
ing companies supervised by the Board of Gov-
ernors are engaging in safe and sound manage-
ment of climate financial risks; 
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‘‘(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 re-
quirements in the United States compare to 
similar disclosure regimes in other countries; 
and 
‘‘(I) any other areas the Council deter-
mines important; and 
‘‘(2) provides recommendations based on the as-
sessments conducted under paragraph (1) to Federal 
and State financial regulatory agencies and to Con-
gress 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 Re-
form and Consumer Protection Act in section 1(b) of that 
Act is amended by inserting after the item relating to sec-
tion 121 the following: 
‘‘Sec. 121A. Climate Financial Risk Committee. 
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‘‘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 sec-
tion 2 of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act (12 U.S.C. 5301). 
(b) UPDATE.—Each Federal banking agency and the 
National Credit Union Administration shall update appli-
cable 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 miti-
gate climate financial risk. 
(c) COORDINATION.—The Financial Institutions Ex-
amination Council shall ensure that the guidance updated 
under subsection (b) is— 
(1) appropriately coordinated among the Fed-
eral banking agencies and the National Credit Union 
Administration; and 
(2) shared with State regulators. 
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SEC. 4. UPDATE NONBANK SIFI DESIGNATION GUIDANCE. 
The Financial Stability Oversight Council shall up-
date 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 INSUR-
ANCE 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 de-
scribed in section 6, that— 
(1) assesses the potential impact of climate fi-
nancial 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 Super-
vision 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. 
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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 In-
surance Commissioners and State insurance commis-
sioners, shall publish a report on the homeowners insur-
ance underwriting data described in subsection (b) for cal-
endar 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-re-
newals, and cancellations, consistent with the infor-
mation requested under the ‘‘Federal Insurance Of-
fice 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 Com-
missioners Property & Casualty Insurance Market 
Intelligence Data Call; and 
(3) shall be collected directly by the Federal In-
surance Office from insurance companies, across all 
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lines of business of such insurance company, pursu-
ant to section 313 of title 31, United States Code. 
(c) DISSEMINATION.—Upon request, the Federal In-
surance Office shall provide to the Committee on Finan-
cial Services of the House of Representatives, the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate, or the State insurance commissioner with regu-
latory authority over an insurance company the report re-
quired under subsection (a), including the data described 
in subsection (b). 
(d) FORM.—The Federal Insurance Office shall en-
sure 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 de-
scribed 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 fi-
nancial regulatory agencies and the Department of the 
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Treasury, including the Federal Insurance Office, as ap-
plicable, should— 
(1) join the Network for Greening the Financial 
System and other international organizations fo-
cused 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 cli-
mate financial risk whenever possible, consistent 
with United States law. 
Æ 
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