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Fossil Free Financing Act of 2023
12/15/2023, 3:56 PM
Summary of Bill HR 2443
The bill defines fossil fuel projects as those involving the extraction, production, transportation, or consumption of coal, oil, or natural gas. It also includes projects that support the infrastructure for these activities, such as pipelines and refineries.
Additionally, the Fossil Free Financing Act of 2023 establishes a Fossil Free Financing Task Force within the Department of Energy to oversee the implementation of the bill and ensure compliance with its provisions. The task force will also be responsible for developing guidelines for federal agencies to follow when considering financial assistance for energy projects. Overall, the goal of Bill 118 hr 2443 is to promote clean energy alternatives and reduce the United States' reliance on fossil fuels. By restricting federal financing for fossil fuel projects, the bill aims to incentivize the development of renewable energy sources and support the transition to a more sustainable energy future.
Congressional Summary of HR 2443
Fossil Free Financing Act of 2023
This bill requires large bank holding companies to set forth plans to reduce and ultimately eliminate the financing of activities that contribute to greenhouse gas emissions and deforestation. Specifically, the bill prohibits the financing of (1) new or expanded fossil fuel projects immediately, (2) thermal coal by 2025, and (3) all fossil fuel projects by 2030.
Further, the Financial Stability Oversight Council must consider the activities of certain bank holding companies and nonbank financial companies that contribute to emissions as part of the prudential supervision process.
The Board of Governors of the Federal Reserve System must report on financed emissions in the financial system, the estimated emissions to meet science-based emissions targets, and recommendations for addressing regulatory gaps in reducing such emissions that cannot be addressed by the board.
