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Banks Banned from Funding New Fossil Fuel Expansion Projects

This bill imposes strict limits on financial institutions, prohibiting them from lending, investing, or facilitating transactions that support the expansion of coal, oil, or gas production beyond current levels. The goal is to protect the economy from risks associated with fossil fuel assets and accelerate the energy transition. Citizens may see indirect effects on bank stability and future energy costs and availability.
Key points
Financial companies cannot fund new pipelines, refineries, power plants, or increase existing fossil fuel extraction activities.
Violations carry severe penalties, including daily fines up to $5 million and potential imprisonment for individuals involved.
The law requires banks to establish compliance programs and CEOs must attest that their firms are not facilitating new fossil fuel production.
article Official text account_balance Process page
Expired
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No votes cast
Additional Information
Print number: 118_S_5592
Sponsor: Sen. Merkley, Jeff [D-OR]
Process start date: 2024-12-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting America's Economy from the Carbon Bubble Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5592.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-12-18.

What are the main provisions?

Key points include:

  • Financial companies cannot fund new pipelines, refineries, power plants, or increase existing fossil fuel extraction activities.
  • Violations carry severe penalties, including daily fines up to $5 million and potential imprisonment for individuals involved.
  • The law requires banks to establish compliance programs and CEOs must attest that their firms are not facilitating new fossil fuel production.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Merkley, Jeff [D-OR].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Economy Environment