This post was originally published on OCC.gov
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today submitted a letter to the California Air Resource Board (CARB) addressing the serious legal and policy concerns raised by two California climate disclosure laws. In light of these concerns, the letter urges CARB to clarify that national banks and federal savings associations (banks) are not required to comply with these laws.
As the OCC’s letter explains, the disclosure laws would be inconsistent with OCC regulation and safety and soundness; impose undue burden, particularly on smaller banks; harm California customers and disrupt customer relationships; and raise constitutional concerns, including under the Supremacy Clause. The application of the laws to banks may well run afoul of the legal framework for preemption and visitation, which are critical components of the dual banking system that Congress created over 150 years ago. Ultimately, application of these laws to federally chartered banks is likely to decrease competition, drive up prices, and reduce Californians’ access to financial services, all of which will harm residents and Main Street businesses.
Today’s letter to CARB reflects the OCC’s commitment to ensuring that banks can engage in the business of banking and provide fair access to financial services without improper interference of state laws. The agency will continue to monitor state law developments nationwide and act where appropriate.
