; (CC) the assumptions and analysis underlying the climate risk capital policy, or the methodologies and practices that support the climate risk capital policy, are not reasonable or appropriate; or (DD) the climate risk capital policy otherwise constitutes an unsafe or unsound practice. (cc) General distribution limitation If the Board of Governors, under item (bb), objects to a climate risk capital policy submitted by a covered entity under item (aa), the covered entity may not make any capital distribution, other than a capital distribution arising from the issuance of a regulatory capital instrument eligible for inclusion in the numerator of a minimum regulatory capital ratio. . 7. Financial stability oversight council (a) In general The Financial Stability Oversight Council shall establish a subcommittee of the Council that shall support the Council in identifying risks to, and in responding to emerging threats to, the stability of the United States financial system as a result of climate change. (b) Responsibilities (1) Subcommittee The subcommittee established under subsection (a) shall, not later than 1 year after the completion of the first analysis required under subparagraph (C) of section 165(i)(1) of the Financial Stability Act of 2010 ( 12 U.S.C. 5365(i)(1) ), as added by section 6 of this Act, and in consultation with the Office of Financial Research, submit to Congress an assessment of the risk posed by climate change to the efficiency, competitiveness, and stability of the United States financial system as a whole. (2) Council For each year after the year in which the assessment required under paragraph (1) is submitted, the Financial Stability Oversight Council shall include in the annual report required under section 112(a)(2)(N) of the Financial Stability Act of 2010 ( 12 U.S.C. 5322(a)(2)(N) ) an update to that assessment. (c) Composition The subcommittee established under subsection (a) shall be composed of— (1) the Chairman of the Board of Governors of the Federal Reserve System