15 U.S.C. § 2901 — Findings

Page 1959 TITLE 15—COMMERCE AND TRADE § 2901 Sec. 2903. Definitions. 2904. National Climate Program. 2905. Repealed. 2906. Annual report. 2907. Contract and grant authority; records and au- dits. 2908. Authorization of appropriations. § 2901. Findings The Congress finds and declares the following: (1) Weather and climate change affect food production, energy use, land use, water re- sources and other factors vital to national se- curity and human welfare. (2) An ability to anticipate natural and man- induced changes in climate would contribute to the soundness of policy decisions in the public and private sectors. (3) Significant improvements in the ability to forecast climate on an intermediate and long-term basis are possible. (4) Information regarding climate is not being fully disseminated or used, and Federal efforts have given insufficient attention to as- sessing and applying this information. (5) Climate fluctuation and change occur on a global basis, and deficiencies exist in the system for monitoring global climate changes. International cooperation for the purpose of sharing the benefits and costs of a global ef- fort to understand climate is essential. (6) The United States lacks a well-defined and coordinated program in climate-related research, monitoring, assessment of effects, and information utilization. (Pub. L. 95–367, § 2, Sept. 17, 1978, 92 Stat. 601.) Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 95–367, § 1, Sept. 17, 1978, 92 Stat. 601, provided: ‘‘That this Act [enacting this chapter, amending sec- tion 25 of former Title 31, Money and Finance, and en- acting provisions set out as a note under section 25 of former Title 31] may be cited as the ‘National Climate Program Act’.’’ GLOBAL CLIMATE PROTECTION Pub. L. 100–204, title XI, Dec. 22, 1987, 101 Stat. 1407, as amended by Pub. L. 103–199, title VI, § 603(1), Dec. 17, 1993, 107 Stat. 2327, provided that: ‘‘SEC. 1101. SHORT TITLE. ‘‘This title [this note] may be cited as the ‘Global Cli- mate Protection Act of 1987’. ‘‘SEC. 1102. FINDINGS. ‘‘The Congress finds as follows: ‘‘(1) There exists evidence that manmade pollu- tion—the release of carbon dioxide, chlorofluorocarbons, methane, and other trace gases into the atmosphere—may be producing a long-term and substantial increase in the average temperature on Earth, a phenomenon known as global warming through the greenhouse effect. ‘‘(2) By early in the next century, an increase in Earth temperature could— ‘‘(A) so alter global weather patterns as to have an effect on existing agricultural production and on the habitability of large portions of the Earth; and ‘‘(B) cause thermal expansion of the oceans and partial melting of the polar ice caps and glaciers, resulting in rising sea levels. ‘‘(3) Important research into the problem of climate change is now being conducted by various United States Government and international agencies, and the continuation and intensification of those efforts will be crucial to the development of an effective United States response. ‘‘(4) While the consequences of the greenhouse ef- fect may not be fully manifest until the next century, ongoing pollution and deforestation may be contrib- uting now to an irreversible process. Necessary ac- tions must be identified and implemented in time to protect the climate. ‘‘(5) The global nature of this problem will require vigorous efforts to achieve international cooperation aimed at minimizing and responding to adverse cli- mate change; such international cooperation will be greatly enhanced by United States leadership. A key step in international cooperation will be the meeting of the Governing Council of the United Nations Envi- ronment Program, scheduled for June 1989, which will seek to determine a direction for worldwide efforts to control global climate change. ‘‘(6) Effective United States leadership in the inter- national arena will depend upon a coordinated na- tional policy. ‘‘SEC. 1103. MANDATE FOR ACTION ON THE GLOBAL CLIMATE. ‘‘(a) GOALS OF UNITED STATES POLICY.—United States policy should seek to— ‘‘(1) increase worldwide understanding of the green- house effect and its environmental and health con- sequences; ‘‘(2) foster cooperation among nations to develop more extensive and coordinated scientific research ef- forts with respect to the greenhouse effect; ‘‘(3) identify technologies and activities to limit mankind’s adverse effect on the global climate by— ‘‘(A) slowing the rate of increase of concentra- tions of greenhouse gases in the atmosphere in the near term; and ‘‘(B) stabilizing or reducing atmospheric con- centrations of greenhouse gases over the long term; and ‘‘(4) work toward multilateral agreements. ‘‘(b) FORMULATION OF UNITED STATES POLICY.—The President, through the Environmental Protection Agency, shall be responsible for developing and pro- posing to Congress a coordinated national policy on global climate change. Such policy formulation shall consider research findings of the Committee on Earth Sciences of the Federal Coordinating Council on Science and Engineering Technology, the National Academy of Sciences, the National Oceanic and Atmos- pheric Administration, the National Science Founda- tion, the National Aeronautic and Space Administra- tion, the Department of Energy, the Environmental Protection Agency, and other organizations engaged in the conduct of scientific research. ‘‘(c) COORDINATION OF UNITED STATES POLICY IN THE INTERNATIONAL ARENA.—The Secretary of State shall be responsible to coordinate those aspects of United States policy requiring action through the channels of multilateral diplomacy, including the United Nations Environment Program and other international organi- zations. In the formulation of these elements of United States policy, the Secretary of State shall, under the direction of the President, work jointly with the Ad- ministrator of the Environmental Protection Agency and other United States agencies concerned with envi- ronmental protection, consistent with applicable Fed- eral law. ‘‘SEC. 1104. REPORT TO CONGRESS. ‘‘Not later than 24 months after the date of enact- ment of this Act [Dec. 22, 1987], the Secretary of State and the Administrator of the Environmental Protec- tion Agency shall jointly submit to all committees of jurisdiction in the Congress a report which shall in- clude— ‘‘(1) a summary analysis of current international scientific understanding of the greenhouse effect, in- cluding its environmental and health consequences; Page 1960 TITLE 15—COMMERCE AND TRADE § 2901 ‘‘(2) an assessment of United States efforts to gain international cooperation in limiting global climate change; and ‘‘(3) a description of the strategy by which the United States intends to seek further international cooperation to limit global climate change. ‘‘SEC. 1105. INTERNATIONAL YEAR OF GLOBAL CLI- MATE PROTECTION. ‘‘In order to focus international attention and con- cern on the problem of global warming, and to foster further work on multilateral treaties aimed at pro- tecting the global climate, the Secretary of State shall undertake all necessary steps to promote, within the United Nations system, the early designation of an International Year of Global Climate Protection. ‘‘SEC. 1106. CLIMATE PROTECTION AND UNITED STATES RELATIONS WITH THE INDEPENDENT STATES OF THE FORMER SOVIET UNION. ‘‘In recognition of the respective leadership roles of the United States and the independent states of the former Soviet Union in the international arena, and of the extent to which they are producers of atmospheric pollutants, the Congress urges that the President ac- cord the problem of climate protection a high priority on the agenda of United States relations with the inde- pendent states.’’ Executive Documents EX. ORD. NO. 14030. CLIMATE-RELATED FINANCIAL RISK Ex. Ord. No. 14030, May 20, 2021, 86 F.R. 27967, pro- vided: By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: SECTION 1. Policy. The intensifying impacts of climate change present physical risk to assets, publicly traded securities, private investments, and companies—such as increased extreme weather risk leading to supply chain disruptions. In addition, the global shift away from carbon-intensive energy sources and industrial processes presents transition risk to many companies, communities, and workers. At the same time, this glob- al shift presents generational opportunities to enhance U.S. competitiveness and economic growth, while also creating well-paying job opportunities for workers. The failure of financial institutions to appropriately and adequately account for and measure these physical and transition risks threatens the competitiveness of U.S. companies and markets, the life savings and pensions of U.S. workers and families, and the ability of U.S. fi- nancial institutions to serve communities. In this ef- fort, the Federal Government should lead by example by appropriately prioritizing Federal investments and conducting prudent fiscal management. It is therefore the policy of my Administration to ad- vance consistent, clear, intelligible, comparable, and accurate disclosure of climate-related financial risk (consistent with Executive Order 13707 of September 15, 2015 (Using Behavioral Science Insights to Better Serve the American People) [5 U.S.C. 601 note]), including both physical and transition risks; act to mitigate that risk and its drivers, while accounting for and address- ing disparate impacts on disadvantaged communities and communities of color (consistent with Executive Order 13985 of January 20, 2021 (Advancing Racial Eq- uity and Support for Underserved Communities Through the Federal Government) [5 U.S.C. 601 note]) and spurring the creation of well-paying jobs; and achieve our target of a net-zero emissions economy by no later than 2050. This policy will marshal the cre- ativity, courage, and capital of the United States nec- essary to bolster the resilience of our rural and urban communities, States, Tribes, territories, and financial institutions in the face of the climate crisis, rather than exacerbate its causes, and position the United States to lead the global economy to a more prosperous and sustainable future. SEC. 2. Climate-Related Financial Risk Strategy. The As- sistant to the President for Economic Policy and Direc- tor of the National Economic Council (Director of the National Economic Council) and the Assistant to the President and National Climate Advisor (National Cli- mate Advisor), in coordination with the Secretary of the Treasury and the Director of the Office of Manage- ment and Budget (OMB), shall develop, within 120 days of the date of this order [May 20, 2021], a comprehen- sive, Government-wide strategy regarding: (a) the measurement, assessment, mitigation, and disclosure of climate-related financial risk to Federal Government programs, assets, and liabilities in order to increase the long-term stability of Federal oper- ations; (b) financing needs associated with achieving net-zero greenhouse gas emissions for the U.S. economy by no later than 2050, limiting global average temperature rise to 1.5 degrees Celsius, and adapting to the acute and chronic impacts of climate change; and (c) areas in which private and public investments can play complementary roles in meeting these financing needs—while advancing economic opportunity, worker empowerment, and environmental mitigation, espe- cially in disadvantaged communities and communities of color. SEC. 3. Assessment of Climate-Related Financial Risk by Financial Regulators. In furtherance of the policy set forth in section 1 of this order and consistent with ap- plicable law and subject to the availability of appro- priations: (a) The Secretary of the Treasury, as the Chair of the Financial Stability Oversight Council (FSOC), shall en- gage with FSOC members to consider the following ac- tions by the FSOC: (i) assessing, in a detailed and comprehensive man- ner, the climate-related financial risk, including both physical and transition risks, to the financial stability of the Federal Government and the stability of the U.S. financial system; (ii) facilitating the sharing of climate-related finan- cial risk data and information among FSOC member agencies and other executive departments and agencies (agencies) as appropriate; (iii) issuing a report to the President within 180 days of the date of this order on any efforts by FSOC mem- ber agencies to integrate consideration of climate-re- lated financial risk in their policies and programs, in- cluding a discussion of: (A) the necessity of any actions to enhance climate- related disclosures by regulated entities to mitigate climate-related financial risk to the financial system or assets and a recommended implementation plan for taking those actions; (B) any current approaches to incorporating the consideration of climate-related financial risk into their respective regulatory and supervisory activities and any impediments they faced in adopting those approaches; (C) recommended processes to identify climate-re- lated financial risk to the financial stability of the United States; and (D) any other recommendations on how identified climate-related financial risk can be mitigated, in- cluding through new or revised regulatory standards as appropriate; and (iv) including an assessment of climate-related finan- cial risk in the FSOC’s annual report to the Congress. (b) The Secretary of the Treasury shall: (i) direct the Federal Insurance Office to assess cli- mate-related issues or gaps in the supervision and regu- lation of insurers, including as part of the FSOC’s anal- ysis of financial stability, and to further assess, in con- sultation with States, the potential for major disrup- tions of private insurance coverage in regions of the country particularly vulnerable to climate change im- pacts; and (ii) direct the Office of Financial Research to assist the Secretary of the Treasury and the FSOC in assess- ing and identifying climate-related financial risk to fi- Page 1961 TITLE 15—COMMERCE AND TRADE § 2902 nancial stability, including the collection of data, as appropriate, and the development of research on cli- mate-related financial risk to the U.S. financial sys- tem. SEC. 4. Resilience of Life Savings and Pensions. In fur- therance of the policy set forth in section 1 of this order and consistent with applicable law and subject to the availability of appropriations, the Secretary of Labor shall: (a) identify agency actions that can be taken under the Employee Retirement Income Security Act of 1974 (Public Law 93–406) [29 U.S.C. 1001 et seq.], the Federal Employees’ Retirement System Act of 1986 (Public Law 99–335) [see Tables for classification], and any other rel- evant laws to protect the life savings and pensions of United States workers and families from the threats of climate-related financial risk; (b) consider publishing, by September 2021, for notice and comment a proposed rule to suspend, revise, or re- scind ‘‘Financial Factors in Selecting Plan Invest- ments,’’ 85 Fed. Reg. 72846 (November 13, 2020), and ‘‘Fi- duciary Duties Regarding Proxy Voting and Share- holder Rights,’’ 85 Fed. Reg. 81658 (December 16, 2020); (c) assess—consistent with the Secretary of Labor’s oversight responsibilities under the Federal Employees’ Retirement System Act of 1986 and in consultation with the Director of the National Economic Council and the National Climate Advisor—how the Federal Re- tirement Thrift Investment Board has taken environ- mental, social, and governance factors, including cli- mate-related financial risk, into account; and (d) within 180 days of the date of this order, submit to the President, through the Director of the National Economic Council and the National Climate Advisor, a report on the actions taken pursuant to subsections (a), (b), and (c) of this section. SEC. 5. Federal Lending, Underwriting, and Procure- ment. In furtherance of the policy set forth in section 1 of this order and consistent with applicable law and subject to the availability of appropriations: (a) The Director of OMB and the Director of the Na- tional Economic Council, in consultation with the Sec- retary of the Treasury, shall develop recommendations for the National Climate Task Force on approaches re- lated to the integration of climate-related financial risk into Federal financial management and financial reporting, especially as that risk relates to Federal lending programs. The recommendations should evalu- ate options to enhance accounting standards for Fed- eral financial reporting where appropriate and should identify any opportunities to further encourage market adoption of such standards. (b) The Federal Acquisition Regulatory Council, in consultation with the Chair of the Council on Environ- mental Quality and the heads of other agencies as ap- propriate, shall consider amending the Federal Acquisi- tion Regulation (FAR) to: (i) require major Federal suppliers to publicly dis- close greenhouse gas emissions and climate-related fi- nancial risk and to set science-based reduction targets; and (ii) ensure that major Federal agency procurements minimize the risk of climate change, including requir- ing the social cost of greenhouse gas emissions to be considered in procurement decisions and, where appro- priate and feasible, give preference to bids and pro- posals from suppliers with a lower social cost of green- house gas emissions. (c) The Secretary of Agriculture, the Secretary of Housing and Urban Development, and the Secretary of Veterans Affairs shall consider approaches to better in- tegrate climate-related financial risk into under- writing standards, loan terms and conditions, and asset management and servicing procedures, as related to their Federal lending policies and programs. (d) As part of the agency Climate Action Plans re- quired by section 211 of Executive Order 14008 of Janu- ary 27, 2021 (Tackling the Climate Crisis at Home and Abroad) [42 U.S.C. 4321 note], and consistent with the interim instructions for the Climate Action Plans issued by the Federal Chief Sustainability Officer, heads of agencies must submit to the Director of OMB, the National Climate Task Force, and the Federal Chief Sustainability Officer actions to integrate cli- mate-related financial risk into their respective agen- cy’s procurement process (subject to any changes to the FAR arising out of the Federal Acquisition Regu- latory Council’s review pursuant to subsection (b) of this section). The Director of OMB and the Federal Chief Sustainability Officer shall provide guidance to agencies on existing voluntary standards for use in agencies’ plans. (e) In Executive Order 13690 of January 30, 2015 (Es- tablishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input) [42 U.S.C. 4321 note], a Federal Flood Risk Management Standard (FFRMS) was estab- lished to address current and future flood risk and en- sure that projects funded with taxpayer dollars last as long as intended. Subsequently, the order was revoked by Executive Order 13807 of August 15, 2017 (Estab- lishing Discipline and Accountability in the Environ- mental Review and Permitting Process for Infrastruc- ture Projects). Executive Order 13690 is hereby rein- stated, thereby reestablishing the FFRMS. The ‘‘Guide- lines for Implementing Executive Order 11988, Flood- plain Management, and Executive Order 13690, Estab- lishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input’’ of October 8, 2015, were never re- voked and thus remain in effect. SEC. 6. Long-Term Budget Outlook. The Federal Gov- ernment has broad exposure to increased costs and lost revenue as a result of the impacts of unmitigated cli- mate change. In furtherance of the policy set forth in section 1 of this order and consistent with applicable law and subject to the availability of appropriations: (a) The Director of OMB, in consultation with the Secretary of the Treasury, the Chair of the Council of Economic Advisers, the Director of the National Eco- nomic Council, and the National Climate Advisor, shall identify the primary sources of Federal climate-related financial risk exposure and develop methodologies to quantify climate risk within the economic assumptions and the long-term budget projections of the President’s Budget; (b) The Director of OMB and the Chair of the Council of Economic Advisers, in consultation with the Direc- tor of the National Economic Council, the National Cli- mate Advisor, and the heads of other agencies as appro- priate, shall develop and publish annually, within the President’s Budget, an assessment of the Federal Gov- ernment’s climate risk exposure; and (c) The Director of OMB shall improve the accounting of climate-related Federal expenditures, where appro- priate, and reduce the Federal Government’s long-term fiscal exposure to climate-related financial risk through formulation of the President’s Budget and oversight of budget execution. SEC. 7. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive de- partment or agency, or the head thereof; or (ii) the functions of the Director of the Office of Man- agement and Budget relating to budgetary, administra- tive, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. J.R. BIDEN, JR. § 2902. Purpose It is the purpose of the Congress in this chap- ter to establish a national climate program that