Existing law prohibits the boards of the Public Employees’ Retirement System (CalPERS) and the State Teachers’ Retirement System (CalSTERS) boards from making new investments or renewing existing investments of public employee retirement funds in coal companies. (This is limited to coal used to generate electricity. The definition excludes coal used to produce steel.)
Existing law requires these boards to liquidate investments in coal companies on or before July 1, 2017, and requires them, in making a determination to liquidate investments, to constructively engage with coal companies to establish whether the companies are transitioning their business models to adapt to clean energy generation.
SB 252 would prohibit the boards of CalPERS and CalSTERS from making new investments in fossil fuel companies, defined as any of the 200 largest publicly traded fossil fuel companies, as established by carbon content in the companies’ proven oil, gas, and coal reserves.
This bill would require the boards to liquidate investments in fossil fuel companies on or before July 1, 2030, and would require the boards, commencing February 1, 2025, to file an annual report with the legislature and the governor containing a list of fossil fuel companies from which the board has liquidated their investments.
Status: This is a two-year bill, meaning it must be heard no later than July 2024. Referred to the Assembly Public Employment and Retirement Committee.
Full bill text and related info.
