The Office of the Comptroller of the Currency (OCC) has submitted a letter urging the California Air Resource Board to clarify that national banks and federal savings associations are not required to comply with two California climate disclosure laws. The letter raises concerns that applying the laws to these institutions could conflict with the legal framework for federal preemption and visitation, as well as raise constitutional concerns under the Supremacy Clause. The OCC argues that the laws would be inconsistent with its regulation and safety and soundness, while imposing undue burdens, particularly on smaller banks. It warns that their application could disrupt customer relationships, reduce competition, increase prices and restrict Californians’ access to financial services. The position is consistent with the OCC’s June 2025 defense of its preemption regulations as aligned with federal law and Supreme Court precedent, following state bank supervisors’ request to rescind them.
US Office of the Comptroller of the Currency seeks clarification that California climate disclosure laws do not apply to federally chartered banks
The Office of the Comptroller of the Currency (OCC) has urged California to clarify that two state climate disclosure laws do not apply to national banks and federal savings associations. It cites federal preemption and constitutional concerns, burdens on smaller banks, and potential harm to competition and access to financial services. The request aligns with the OCC’s earlier defense of its federal preemption regulations.