This bill summary was last updated January 28, 2025.
This bill would enact a five-year moratorium on investing state monies in private equity funds that deal heavily in fossil fuels. It is motivated by concern that fossil fuel investments are risky, because damages from climate change could cause them to lose value.
The bill is inspired in part by a February 2024 plan proposed by Oregon Treasurer Tobias Read, to achieve a net zero carbon future for the Oregon Public Employees Retirement Fund. It also notes that fossil fuel investments have been excluded in the state’s Public Education Fund since 2018, yet that Fund has met or exceeded its fiscal benchmarks in a majority of quarters over the past six years.
Under the bill, the state Treasurer may not renew or make new investments in private market funds whose managers presently invest (or have stated an intention to invest) 10% or more of their holdings in fossil fuel equities. Covered activities include exploration, mining, shipping, infrastructure maintenance and refinement of fossil fuels.
The Treasurer is required to monitor State holdings to ensure that the funds it has invested in comply with this principle. The Treasurer must also provide an annual report to the Legislature on this subject, including actions it has taken to (i) reduce the systemic risks of remaining fossil fuel holdings and (ii) incorporate just transition principles in its decarbonization efforts.