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Climate & Environment · North America

OCC warns California climate laws could push banks out

The Office of the Comptroller of the Currency warned the California Air Resources Board that two state climate-reporting laws could lead banks to leave California. The OCC said the requirements could raise costs, reduce services or prompt banks to withdraw from the market.

AI-assisted synthesis · Based on 2 outlets' reporting · Article text read from 1 of 2 outletsHow it's made

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2 outletsLatest reporting 3 min read
Coverage: Too few ratedL 0 · C 1 · R 1
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Updat3 graphic · Map data: Natural Earth Natural Earth (public domain)

What happened

Key facts

  • The OCC urged California regulators to exempt banks from the climate-disclosure laws (per New York Post, tradersunion.com).
  • The OCC warned that applying the requirements to banks could lead to higher costs, reduced services or banks leaving the California market (per New York Post, tradersunion.com).

The brief

The Office of the Comptroller of the Currency warned the California Air Resources Board that two state climate-reporting laws could push some banking firms out of California. The New York Post reported that the OCC, which operates under the U.S. Treasury Department, urged state regulators to keep the laws from applying to banks.

Traders Union’s headline also said the OCC urged California’s regulator to exempt banks from the disclosure requirements. The OCC’s warning concerned Senate Bill 253 and Senate Bill 261, measures California passed in 2023.

The New York Post described both as climate-reporting laws and said the agency raised the prospect that banks could leave the state if the requirements applied to them. Its account did not identify a separate decision by the California Air Resources Board on the OCC’s request. The laws have different reporting thresholds and requirements.

Senate Bill 253 requires companies with annual revenue of $1 billion or more to disclose greenhouse gas emissions. Senate Bill 261 requires businesses with revenue above $500 million to publish a report on climate-related financial risks every two years. The measures are also at different points in a legal challenge.

The New York Post reported that a federal appeals court temporarily blocked enforcement of Senate Bill 261 last year, while allowing Senate Bill 253 to remain in force as the case continues. The account did not identify the court or provide further details about the case.

The OCC warned that applying the laws to banks could increase their costs, reduce services or lead some to withdraw from the California market. The agency presented those outcomes as potential consequences; the account did not quantify their likelihood or specify which banking firms might leave.

The New York Post framed the laws as requirements for businesses to report emissions and climate-related financial risks, while the OCC’s concern focused on how those requirements would affect banks.

The account attributes the warning and its predicted consequences to the OCC; it does not provide a response from the California Air Resources Board or a statement from the state about whether it will exempt banks.

Why it matters

  • Banks are the specific population at issue: the OCC warned that applying the laws could raise their costs, reduce services or lead firms to leave California.
  • The reporting rules cover different groups and disclosures: Senate Bill 253 applies to companies with at least $1 billion in revenue and emissions reporting; Senate Bill 261 applies above $500 million and requires biennial climate-risk reports.

What to watch next

  • Whether the California Air Resources Board acts on the OCC’s request to exempt banks.
  • The status of the legal case involving Senate Bill 253 and Senate Bill 261, including the temporary block on Senate Bill 261 enforcement.

How it's being covered

Coverage analysisShow details
2 source articles · 2 unique outlets
Outlet political mix: Too few rated· 1 Center · 1 Right
Where the outlets are based: US/Canada 50% · Global 50%
Outlet political mix
Too few rated
Left
Center
Right
0 outlets
1 outlet
1 outlet
The marker shows coverage balance: each unique outlet counts once.
Geography
Where the outlets covering this story are based.
2 unique outletsDominant coverage: US/Canada
Limited coverage
  • Coverage is currently limited to 2 outlets.
How we measure coverage

How outlets' accounts compare

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Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.
  1. Congress established the Office of the Comptroller of the Currency in the National Currency Act of Feb. 25, 1863, to charter and supervise national banks.
    Background · from our historical context
  2. The broader move toward standardized climate-risk disclosure included the Financial Stability Board’s creation of the Task Force on Climate-related Financial Disclosures in December 2015.
    Background · from our historical context
  3. The task force published recommendations in June 2017 for companies to report climate-related risks through governance, strategy, risk management, and metrics and targets.
    Background · from our historical context
  4. The OCC, Federal Reserve and FDIC issued principles for large banks managing climate-related financial risks.
    Background · compiled and fact-checked by Updat3
  5. California’s climate-reporting requirements grew out of two bills signed by Gov. Gavin Newsom on Oct. 7, 2023.
    Background · from our historical context
  6. The U.S. Chamber of Commerce and other plaintiffs sued the California Air Resources Board over the state’s climate-disclosure laws.
    Background · compiled and fact-checked by Updat3
  7. The Securities and Exchange Commission adopted a climate-disclosure rule for public companies.
    Background · compiled and fact-checked by Updat3
  8. The Securities and Exchange Commission stayed its climate-disclosure rule while legal challenges proceeded.
    Background · compiled and fact-checked by Updat3
  9. In December 2024, the board delayed enforcement of SB 253’s initial reporting requirements while it developed rules.
    Background · from our historical context

How we got here

California’s climate-reporting requirements grew out of two bills signed by Gov. Gavin Newsom on Oct. 7, 2023.

The Climate Corporate Data Accountability Act, Senate Bill 253, called for large companies doing business in California to report greenhouse-gas emissions; Senate Bill 261, the Climate-Related Financial Risk Act, required certain companies to disclose climate-related financial risks.

Original sources

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