I 
117TH CONGRESS 
1ST SESSION H. R. 5253 
To amend the Bank Holding Company Act of 1956 and the Dodd-Frank 
Wall Street Reform and Consumer Protection Act to require disclosure 
of certain financed emissions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2021 
Mr. JONES (for himself, Ms. PRESSLEY, Ms. TLAIB, Mr. ESPAILLAT, Ms. 
NEWMAN, Mr. TORRES of New York, Mr. GARCI´A of Illinois, Mr. 
HUFFMAN, Ms. OCASIO-CORTEZ, Mr. CLEAVER, Mr. BOWMAN, Ms. 
BUSH, Mr. NADLER, Mr. TAKANO, Ms. MENG, and Ms. JAYAPAL) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To amend the Bank Holding Company Act of 1956 and 
the Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act to require disclosure of certain financed emis-
sions, and for other purposes. 
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 ‘‘Fossil Free Finance 
Act’’. 
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SEC. 2. ALIGNMENT OF FINANCED GREENHOUSE GAS EMIS-
SIONS WITH SCIENCE-BASED TARGETS. 
The Bank Holding Company Act of 1956 (12 U.S.C. 
1841 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 15. ALIGNMENT OF FINANCED GREENHOUSE GAS 
EMISSIONS WITH SCIENCE-BASED TARGETS. 
‘‘(a) REQUIREMENTS.—Not later than July 1, 2022, 
and not less than once every 2 years thereafter, a covered 
bank holding company shall— 
‘‘(1) submit to the Board an emission reduction 
plan for reducing emissions in accordance with this 
section; and 
‘‘(2) if the plan is accepted under subsection 
(c), implement such plan. 
‘‘(b) ELEMENTS
OF PLAN.—Each plan required 
under subsection (a)(1)— 
‘‘(1) shall include— 
‘‘(A) a plan for the covered bank holding 
company to reach zero financed greenhouse gas 
emissions by January 1, 2050; 
‘‘(B) a plan for the equitable transition to 
zero financed greenhouse gas emissions; 
‘‘(C) a plan to reduce the financed green-
house gas emissions of the bank holding com-
pany by 50 percent by January 1, 2030; 
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‘‘(D) a plan to discontinue new or ex-
panded fossil fuel projects not later than Janu-
ary 1, 2023; 
‘‘(E) a plan for the covered bank holding 
company to discontinue thermal coal financing 
by January 1, 2025; 
‘‘(F) a plan for the covered bank holding 
company to discontinue fossil fuel financing by 
January 1, 2030; 
‘‘(G) a review of the emissions supply 
chains financed by the covered bank holding 
company; 
‘‘(H) a plan for the covered bank holding 
company to eliminate financing of deforestation 
risk commodities; and 
‘‘(I) such other requirements as the Board 
determines is necessary to protect the financial 
stability of the United States; 
‘‘(2) may not include carbon offsets; 
‘‘(3) with respect to negative carbon emission 
technologies— 
‘‘(A) may include such technologies to 
meet the requirements under paragraph (1)(A) 
if such technologies— 
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‘‘(i) are proven to work at the re-
quired scale; 
‘‘(ii) do not negatively impact low-in-
come, minority, or indigenous communities; 
and 
‘‘(iii) do not exceed 5 percent of the 
projected 2030 financed greenhouse gas 
emissions of the covered bank holding com-
pany; and 
‘‘(B) may not include such technologies to 
meet the requirements under paragraph (1)(C); 
and 
‘‘(4) shall prioritize— 
‘‘(A) the covered bank holding company 
withdrawing funding from companies and 
projects that have a disproportionately negative 
impact on health and well-being of low-income 
and minority communities; and 
‘‘(B) lending to companies for purposes of 
carrying out severance, retraining, and other 
benefits to workers impacted by the transition 
to zero financed greenhouse gas emissions. 
‘‘(c) CONSIDERATION OF PLAN.—Not later than 6 
months after receiving a plan under subsection (a)(1), the 
Board shall— 
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‘‘(1) accept the plan; or 
‘‘(2) reject the plan if it does not align with 
science-based targets without the use of offsets or 
unproven carbon emission reduction technologies and 
require the covered bank holding company to revise 
such plan in accordance with the suggestions of the 
Board. 
‘‘(d) PENALTIES.—In the case of a covered bank 
holding company that does not submit a plan in accord-
ance with this section or meet the requirements set out 
in such a plan— 
‘‘(1) the Board shall— 
‘‘(A) apply the penalties under section 8, 
through procedures prescribed by the Board by 
rule; 
‘‘(B) require divestiture of assets in order 
to bring the financed greenhouse gas emissions 
of a covered bank holding company into compli-
ance with the requirements set out in such a 
plan; and 
‘‘(C) notify the Board of Directors of the 
Federal Deposit Insurance Corporation of the 
noncompliance of such covered bank holding 
company; 
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‘‘(2) the Board of Directors of the Federal De-
posit Insurance Corporation may, with respect to 
any covered bank holding company described in 
paragraph (2)(B) or a subsidiary of such bank hold-
ing company that contributes to the failure of such 
covered bank holding company to comply with this 
section— 
‘‘(A) terminate insurance under section 
8(a)(2) of the Federal Deposit Insurance Act 
(12 U.S.C. 1818(a)(2)); and 
‘‘(B) carry out any other corrective action 
available under section 38 of the Federal De-
posit Insurance Act (12 U.S.C. 1831o). 
‘‘(e) REGULATIONS.—Not later than 210 days after 
the date of the enactment of this section, the Board shall 
issue regulations establishing the format and timing for 
submission of the plans required under this section. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) COVERED BANK HOLDING COMPANY.—The 
term ‘covered bank holding company’ means a bank 
holding company with total consolidated assets equal 
to or greater than $50,000,000,000. 
‘‘(2) DEFORESTATION
RISK
COMMODITIES.— 
The term ‘deforestation risk commodities’ means 
globally-traded goods and raw materials— 
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