PORTLAND, Ore. (KOIN) — Oregon lawmakers have approved a new bill that will gradually steer public employee retirement funds away from fossil fuels and into clean energy investments.
House Bill 2081A, also known as the Climate Resilience Investment Act, was passed on Monday. It directs the Oregon State Treasury to shift Oregon Public Employee Retirement Fund (OPERF) investments toward clean energy industries while safeguarding the fund’s long-term value. The Treasury will also be required to report progress to the legislature regularly.
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In a statement, State Treasurer Elizabeth Steiner praised the move, calling it a smart investment strategy—not a divestment mandate.
“The Climate Resilience Investment Act is a clean energy investment law, not a divestment mandate,” said Steiner. “Global markets are transitioning to cleaner energy sources that reduce emissions and protect communities. This bill allows us to capitalize on that shift while protecting retirement funds.”
The Oregon State Treasury (OST) currently oversees approximately $101 billion in OPERF assets, making it the 17th largest public retirement fund in the U.S. As of 2021, fossil fuels made up around 3.7% of OPERF’s portfolio.
OST said this bill puts Oregon at the forefront of climate-positive investment legislation, noting that only a handful of states have enacted similar laws.
Because the retirement fund pays out 70 cents of every dollar to retired public workers—including teachers, firefighters, and other state employees—Treasury officials warned that continued investment in fossil fuels could increase financial risk and strain state and local budgets.
“The state Treasury has a fiduciary responsibility to protect the retirement security of teachers, firefighters, and other public employees,” Steiner added. “I appreciate the strong support this bill received from labor leaders and retirement fund beneficiaries.”
The bill now awaits Governor Tina Kotek’s signature. Once signed, it will go into effect 91 days after passage.
