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Balderson, Pfluger Reintroduce Legislation to Protect American Energy Investments from Woke Mandates

Washington, April 17, 2025
WASHINGTON D.C. – Congressman Troy Balderson (OH-12), Chairman of the House Energy Action Team (HEAT), and August Pfluger (TX-11), Chairman of the Republican Study Committee (RSC), reintroduced legislation to nullify a Biden-era final interagency guidance from the Federal Reserve, Comptroller of the Currency, and the Federal Deposit Insurance Corporation titled, Principles for Climate-Related Financial Risk Management for Large Financial Institutions. 

This guidance encourages banks and other financial institutions to manage “climate-related financial risks” associated with their investments and loans, potentially serving as a backdoor to restrict funding and resources for the American energy industry. This includes Ohio’s growing oil and gas sector, which supports more than 351,000 jobs and contributes $55 billion to the state's economy.

The vague language in this guidance could allow for potential punitive actions against banks doing business with the oil and gas industry, effectively pressuring financial institutions to support environmental, social, and governance (ESG) policies over sound financial decisions. 

“This Biden-era guidance was nothing more than a back-door effort to push a woke ESG agenda,” said Balderson. “Under this framework, federal regulators could target banks who want to work with, and invest in, industries crucial to Ohio. This puts climate activism ahead of sound investment strategies, costing everyday Americans.” 

“I’m pleased to join the RSC's HEAT Chair Troy Balderson in introducing this bill to end the Biden administration’s radical ‘climate’ guidance,” said RSC Chairman Pfluger. “The previous administration weaponized the government to wage a politically-driven attack on American energy through ‘net-zero’ and ‘environmental, social, and governance’ mandates.  Since President Trump returned to office, financial institutions and markets have retreated from a woke ESG agenda, and this bill will help ensure that investments can flow to energy projects that power our homes, businesses, and economy without radical bureaucrats picking winners and losers.”

Electric grid experts have warned that one of the largest threats to our nation’s energy security is misguided federal and state policies. Federal climate rules, such as the Clean Power Plan 2.0, would force the United States’ most reliable power plants to shut down, even as electricity demand grows at historic levels. With this new ESG guidance, banks could face regulatory backlash for providing regular financial services to the oil and gas industry–further imperiling American energy security.

In September, Balderson joined his House colleagues in passing H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act, which cuts back on the Biden-Harris Administration’s burdensome ESG policies for American businesses and enhances Congressional oversight of federal financial regulatory agencies.

Balderson’s bill nullifies the final interagency guidance and prevents the Federal Reserve, Comptroller of the Currency, and the Federal Deposit Insurance Corporation from issuing any substantially similar guidance in the future.
 
Full text of the bill can be found HERE.
 
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