Oregon Enacts Thermal Coal Divestment Law
Updated with corrections.
Oregon Governor Tina Kotek on Thursday signed H.B. 4083, the Clean Oregon Asset Legislation Act, which requires the $97.7 billion Oregon Public Employees’ Retirement Fund to divest from thermal coal investments.
The COAL Act was passed by both houses of the Oregon legislature in March. The law makes Oregon the third state to pass pension divestment legislation, following California and Maine.
According to the legislation, the state treasurer will need to make reasonable efforts to divest from thermal coal producers. The fund may retain investments in thermal coal companies if they can demonstrate they have a energy transition timeline.
Earlier this year, the Oregon Investment Council, which manages OPERF, presented a plan to reach a net zero portfolio by 2050. Under that plan, the fund would review its fossil fuel investments over the next year, ensuring that its portfolio companies have energy transition plans in place.
Similar bills are moving through the legislature in Illinois, where H.B. 037 would mandate the divestment of fossil fuel investments from Illinois pension funds. In the Vermont Senate, S.42 would mandate the divestment of fossil fuel assets from Vermont pensions.
OPERF is one of 1,615 global asset owners divesting from fossil fuels, according to a press release, citing data from Divestment Database. These institutions represent $40.76 trillion in assets.
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