S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9758
 
                             I N  S E N A T E
 
                               May 29, 2024
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in relation to  establishing  the
   "climate safe and responsible bank procurement act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "climate safe and responsible bank procurement act".
   § 2. Legislative findings. 1. The legislature affirms the goals of the
 New  York Climate Leadership and Community Protection Act, which commits
 New York to achieving an 85% reduction from 1990  greenhouse  gas  emis-
 sions level by 2050, and to 100% emissions free electricity by 2040.
   2.  New York's state climate impact assessment has concluded that many
 fundamental aspects of New York State's climate have  already  begun  to
 change,  and  the  changes are projected to continue--and in some cases,
 accelerate--throughout the 21st century, that climate change is creating
 conditions that will increase the frequency and severity of  many  types
 of  extreme  events,  and  that unless the world takes serious action to
 reduce greenhouse gas emissions and control future warming,  unmitigated
 emissions could have severe adverse consequences.
   3.  The  Financial  Stability  Oversight  Council  has  concluded that
 climate change presents an emerging and increasing threat  to  financial
 stability.
   4.  The  Board of Governors of the Federal Reserve System, the Federal
 Deposit Insurance Corporation, and the Office of the Comptroller of  the
 Currency have produced guidance for the financial institutions that they
 regulate  to  focus  on  key  aspects  of climate-related financial risk
 management.
   5. The International Energy Agency has released an energy roadmap  for
 how governments around the world can achieve the goals enunciated in the
 2015  Paris  Accords, and concluded that there is no need for investment
 in new fossil fuel supply in our net zero pathway.
   6. The New York State Department  of  Financial  Services  has  issued
 guidance  that  regulated  institutions start integrating both financial
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15138-02-4
 S. 9758                             2
 
 and operational risks from climate change into their  governance  frame-
 works,  risk  management  processes,  and business strategies, and start
 developing their approach to climate-related financial risk disclosure.
   §  3. Section 2 of the state finance law is amended by adding five new
 subdivisions 23, 24, 25, 26, and 27 to read as follows:
   23. "CLEAN ENERGY SUPPLY  FINANCING  RATIO"  IS  THE  TOTAL  FINANCING
 THROUGH  EQUITY AND DEBT UNDERWRITING, AND PROJECT FINANCE IN LOW CARBON
 ENERGY SUPPLY RELATIVE TO THAT IN FOSSIL FUEL ENERGY SUPPLY AND INCLUDES
 METHODOLOGY FOR RATIO, INCLUDING WHAT IS CLASSIFIED  AS  LOW  CARBON  OR
 FOSSIL FUEL.
   24.  "COAL  PROJECT"  MEANS  A  PROJECT  DESIGNED  TO USE COAL FOR THE
 PURPOSE OF ELECTRIC POWER GENERATION OR TO PRODUCE THERMAL COAL.
   25. "FOSSIL FUEL PROJECT" OR  "FOSSIL  FUEL  INFRASTRUCTURE"  MEANS  A
 PROJECT  DESIGNED  TO  PRODUCE AND TRANSPORT FOSSIL FUELS. THIS INCLUDES
 PROJECTS THAT WOULD SUPPORT EXPLORING NEW OIL AND GAS FIELDS  OR  OTHER-
 WISE EXPANDING OIL AND GAS RESERVES.
   26.  "NEW  FOSSIL  FUEL  PROJECT"  OR "NEW FOSSIL FUEL INFRASTRUCTURE"
 MEANS A PROJECT DESIGNED TO FACILITATE THE PRODUCTION AND TRANSPORTATION
 OF FOSSIL FUELS IN EXCESS OF WHAT IS IN DEVELOPMENT AS OF THE  EFFECTIVE
 DATE OF THIS SUBDIVISION. THIS INCLUDES BUT IS NOT LIMITED TO PRODUCTION
 OF  NEW  COAL, OIL AND GAS INFRASTRUCTURE, POWER PLANTS, WELLS OR MINES.
 IT ALSO INCLUDES PROJECTS THAT WOULD SUPPORT EXPLORING NEW OIL  AND  GAS
 FIELDS OR OTHERWISE EXPANDING OIL AND GAS RESERVES.
   27.  "UNDERWRITING" MEANS PROVIDING BOND BUYING AND SELLING, FINANCIAL
 ADVICE,  PROMOTION,  LEGAL,  RISK  MANAGEMENT  AND  ANY  OTHER  RELEVANT
 SERVICES FOR A BOND ISSUE.
   §  4. Subdivision 2 of section 161 of the state finance law is amended
 by adding a new paragraph o to read as follows:
   O. (I) ESTABLISH, NO LATER THAN DECEMBER  THIRTY-FIRST,  TWO  THOUSAND
 TWENTY-FIVE, PROCUREMENT GUIDANCE FOR THE PURCHASING OF BANKING SERVICES
 THROUGH CENTRALIZED STATE CONTRACTING AND DISCRETIONARY CONTRACTING THAT
 SHALL  REQUIRE  AGENCIES  TO  CONSIDER  EACH OF THE FOLLOWING INDIVIDUAL
 CRITERIA AS POSITIVE COMPONENTS OF BEST VALUE FOR THE PURPOSE OF  MAKING
 PURCHASING  DECISIONS FOR BANKING SERVICES, INCLUDING BUT NOT LIMITED TO
 CREDIT CARDS, CREDIT CARD PROCESSING AND DEPOSITORY SERVICES:
   (1) WHETHER A BANK DISCLOSES SCOPE ONE, TWO  AND  THREE  EMISSIONS  IN
 FULL  COMPLIANCE  WITH  CATEGORY FIFTEEN OF THE GREENHOUSE GAS EMISSIONS
 REPORTING PROTOCOL;
   (2) WHETHER A BANK DISCLOSES ITS CLEAN ENERGY SUPPLY FINANCING RATIO;
   (3) WHETHER A BANK HAS  ESTABLISHED  A  POLICY  THAT  EXPLICITLY  BARS
 SUPPORT FOR COAL PROJECTS OR INFRASTRUCTURE;
   (4)  WHETHER  A  BANK HAS ESTABLISHED POLICIES COVERING THE TRANSITION
 AWAY FROM FINANCING OF NEW FOSSIL FUEL PROJECTS OR INFRASTRUCTURE;
   (5) WHETHER A BANK HAS ESTABLISHED POLICIES TO  TRANSITION  AWAY  FROM
 ALL EXISTING INVESTMENTS IN FOSSIL FUEL PROJECTS OR INFRASTRUCTURE; AND
   (6)  WHETHER  A BANK HAS PRODUCED A PLAN FOR ACHIEVING NET ZERO CARBON
 EMISSIONS BY TWO THOUSAND FIFTY THAT HAS  BEEN  AFFIRMED  AS  CONSISTENT
 WITH THE STANDARDS PRONOUNCED BY THE SCIENCE BASED TARGETS INITIATIVE.
   (II)  FOR  THE  PURPOSES OF THIS PARAGRAPH, "BANK" SHALL HAVE THE SAME
 MEANING AS SUBDIVISION ONE OF SECTION TWO OF THE BANKING LAW,  PROVIDED,
 HOWEVER, IT SHALL ONLY INCLUDE SUCH BANKS THAT HAVE AT LEAST ONE HUNDRED
 BILLION IN TOTAL CONSOLIDATED ASSETS.
   §  5. The state finance law is amended by adding a new section 65-a to
 read as follows:
   § 65-A.  CLIMATE  SAFE  AND  RESPONSIBLE  BORROWING  REQUIREMENTS.  1.
 NEITHER  THE  STATE NOR ANY AUTHORITIES, AGENCIES, COMMISSIONS OR CORPO-
 S. 9758                             3
 
 RATIONS OF THE STATE SHALL CONTRACT WITH OR  OTHERWISE  PROVIDE  PAYMENT
 FOR OR SERVICES WITH A BANK FOR UNDERWRITING IN A BOND ISSUANCE OR REFI-
 NANCING  THAT  HAS  NOT  DISCLOSED SCOPE ONE, TWO AND THREE EMISSIONS IN
 FULL  COMPLIANCE  WITH  CATEGORY FIFTEEN OF THE GREENHOUSE GAS EMISSIONS
 REPORTING PROTOCOL BY THE BEGINNING OF CALENDAR YEAR TWO THOUSAND  TWEN-
 TY-SIX.
   2.  WHEN MAKING A DETERMINATION AS TO WHICH BANK TO USE FOR UNDERWRIT-
 ING IN A BOND ISSUANCE OR REFINANCING, THE STATE  AND  ANY  AUTHORITIES,
 AGENCIES, COMMISSIONS OR CORPORATIONS OF THE STATE SHALL CONSIDER:
   (A) WHETHER A BANK DISCLOSES ITS CLEAN ENERGY SUPPLY FINANCING RATIO;
   (B)  WHETHER  A  BANK  HAS  ESTABLISHED  A POLICY THAT EXPLICITLY BARS
 SUPPORT FOR COAL PROJECTS;
   (C) WHETHER A BANK HAS COMMITTED TO WITHHOLDING ANY  SUPPORT  FOR  NEW
 FOSSIL FUEL INFRASTRUCTURE;
   (D)  WHETHER  A BANK HAS COMMITTED TO PHASING OUT ALL EXISTING INVEST-
 MENTS IN FOSSIL FUEL PROJECTS; AND
   (E) WHETHER A BANK HAS PRODUCED A PLAN FOR ACHIEVING NET  ZERO  CARBON
 EMISSIONS  BY  TWO  THOUSAND  FIFTY THAT HAS BEEN AFFIRMED AS CONSISTENT
 WITH THE STANDARDS PRONOUNCED BY THE SCIENCE BASED TARGETS INITIATIVE.
   3. IN CONSIDERING THE BEST VALUE OF UNDERWRITING IN A BOND ISSUANCE OR
 REFINANCING, THE STATE AND ANY  AUTHORITIES,  AGENCIES,  COMMISSIONS  OR
 CORPORATIONS  OF THE STATE SHALL CONSIDER EACH OF THE CRITERIA LISTED IN
 SUBDIVISION TWO OF THIS SECTION AS POSITIVE COMPONENTS OF BEST VALUE  TO
 BE  CONSIDERED ALONGSIDE BUT NOT NECESSARILY WITH THE SAME WEIGHT AS ANY
 OTHER CONSIDERATIONS OF BEST VALUE AS EMPLOYED  BY  THE  STATE  AND  ANY
 AUTHORITIES, AGENCIES, COMMISSIONS OR CORPORATIONS OF THE STATE.
   4.  FOR THE PURPOSES OF THIS SECTION, "BANK" SHALL HAVE THE SAME MEAN-
 ING AS SUBDIVISION ONE OF SECTION TWO  OF  THE  BANKING  LAW,  PROVIDED,
 HOWEVER, IT SHALL ONLY INCLUDE SUCH BANKS THAT HAVE AT LEAST ONE HUNDRED
 BILLION IN TOTAL CONSOLIDATED ASSETS.
   §  6.  Severability.  If any clause, sentence, paragraph, subdivision,
 section, or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section, or part there-
 of  directly  involved  in  the controversy in which such judgment shall
 have been rendered. It is hereby declared to be the intent of the legis-
 lature that this act would  have  been  enacted  even  if  such  invalid
 provisions had not been included herein.
   § 7. This act shall take effect immediately.