IL
Illinois Senate Bill SB0130

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0130 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0130 Introduced 1/17/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.18 new Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the retirement systems established under the General Assembly, State Employees, State Universities, Downstate Teachers, or Judges Article of the Code and the Illinois State Board of Investment, prohibits direct investment of any additional pension assets in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of a fossil fuel company. Provides that each board of trustees of a pension system shall ensure the pension system does not make further indirect investments unless, upon exercising due diligence, the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in fossil fuel companies. Requires pension system trustees to identify the pension system's holdings, whether directly or indirectly invested, including private investments. Requires pension system trustees to identify holdings that are invested in the stocks, securities, equities, fixed income, corporate bonds, prime commercial paper, or other obligations of fossil fuel companies. Requires pension systems to, in accordance with sound investment criteria and consistent with fiduciary obligations, divest any fossil fuel holdings, which must be completed by January 1, 2030. Requires pension systems to adopt an update to their written investment policies if necessary. Requires each pension system to disclose the analytic methods used, if any, in determining the climate-related financial risks posed by its fossil fuel investments (both publicly traded and private investments) and the results of the analysis. Sets forth provisions concerning definitions, de minimis exposure to fossil fuel securities, and annual reporting. Effective immediately. LRB104 03580 RPS 13604 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0130 Introduced 1/17/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED: 40 ILCS 5/1-110.18 new 40 ILCS 5/1-110.18 new Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the retirement systems established under the General Assembly, State Employees, State Universities, Downstate Teachers, or Judges Article of the Code and the Illinois State Board of Investment, prohibits direct investment of any additional pension assets in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of a fossil fuel company. Provides that each board of trustees of a pension system shall ensure the pension system does not make further indirect investments unless, upon exercising due diligence, the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in fossil fuel companies. Requires pension system trustees to identify the pension system's holdings, whether directly or indirectly invested, including private investments. Requires pension system trustees to identify holdings that are invested in the stocks, securities, equities, fixed income, corporate bonds, prime commercial paper, or other obligations of fossil fuel companies. Requires pension systems to, in accordance with sound investment criteria and consistent with fiduciary obligations, divest any fossil fuel holdings, which must be completed by January 1, 2030. Requires pension systems to adopt an update to their written investment policies if necessary. Requires each pension system to disclose the analytic methods used, if any, in determining the climate-related financial risks posed by its fossil fuel investments (both publicly traded and private investments) and the results of the analysis. Sets forth provisions concerning definitions, de minimis exposure to fossil fuel securities, and annual reporting. Effective immediately. LRB104 03580 RPS 13604 b LRB104 03580 RPS 13604 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0130 Introduced 1/17/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/1-110.18 new 40 ILCS 5/1-110.18 new
44 40 ILCS 5/1-110.18 new
55 Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the retirement systems established under the General Assembly, State Employees, State Universities, Downstate Teachers, or Judges Article of the Code and the Illinois State Board of Investment, prohibits direct investment of any additional pension assets in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of a fossil fuel company. Provides that each board of trustees of a pension system shall ensure the pension system does not make further indirect investments unless, upon exercising due diligence, the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in fossil fuel companies. Requires pension system trustees to identify the pension system's holdings, whether directly or indirectly invested, including private investments. Requires pension system trustees to identify holdings that are invested in the stocks, securities, equities, fixed income, corporate bonds, prime commercial paper, or other obligations of fossil fuel companies. Requires pension systems to, in accordance with sound investment criteria and consistent with fiduciary obligations, divest any fossil fuel holdings, which must be completed by January 1, 2030. Requires pension systems to adopt an update to their written investment policies if necessary. Requires each pension system to disclose the analytic methods used, if any, in determining the climate-related financial risks posed by its fossil fuel investments (both publicly traded and private investments) and the results of the analysis. Sets forth provisions concerning definitions, de minimis exposure to fossil fuel securities, and annual reporting. Effective immediately.
66 LRB104 03580 RPS 13604 b LRB104 03580 RPS 13604 b
77 LRB104 03580 RPS 13604 b
88 A BILL FOR
99 SB0130LRB104 03580 RPS 13604 b SB0130 LRB104 03580 RPS 13604 b
1010 SB0130 LRB104 03580 RPS 13604 b
1111 1 AN ACT concerning public employee benefits.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 1. This Act may be referred to as the Fossil Fuel
1515 5 Divestment Act.
1616 6 Section 5. Findings. The General Assembly finds that:
1717 7 (1) Climate change is a real and serious threat to the
1818 8 health, welfare, and prosperity of all Illinoisans, now
1919 9 and in the future. Scientific evidence indicates that
2020 10 maintaining the status quo of fossil fuel energy
2121 11 production will lead to catastrophic results.
2222 12 (2) Continued investment in the fossil fuel industry
2323 13 is counterproductive to the goals set forth in the Energy
2424 14 Transition Act. That Act, passed by the Illinois General
2525 15 Assembly and signed into law in 2021, commits the State to
2626 16 phasing out carbon emissions from the energy and transport
2727 17 sectors and requires Illinois to be 100% reliant on
2828 18 renewable energy by 2050.
2929 19 (3) The threats posed by climate change, and the
3030 20 necessary transformation of the global energy system to
3131 21 mitigate it, will have a serious negative impact on
3232 22 investors whose assets are not aligned with the goal of
3333 23 keeping the global average temperature increase below 1.5
3434
3535
3636
3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0130 Introduced 1/17/2025, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
3838 40 ILCS 5/1-110.18 new 40 ILCS 5/1-110.18 new
3939 40 ILCS 5/1-110.18 new
4040 Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the retirement systems established under the General Assembly, State Employees, State Universities, Downstate Teachers, or Judges Article of the Code and the Illinois State Board of Investment, prohibits direct investment of any additional pension assets in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of a fossil fuel company. Provides that each board of trustees of a pension system shall ensure the pension system does not make further indirect investments unless, upon exercising due diligence, the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in fossil fuel companies. Requires pension system trustees to identify the pension system's holdings, whether directly or indirectly invested, including private investments. Requires pension system trustees to identify holdings that are invested in the stocks, securities, equities, fixed income, corporate bonds, prime commercial paper, or other obligations of fossil fuel companies. Requires pension systems to, in accordance with sound investment criteria and consistent with fiduciary obligations, divest any fossil fuel holdings, which must be completed by January 1, 2030. Requires pension systems to adopt an update to their written investment policies if necessary. Requires each pension system to disclose the analytic methods used, if any, in determining the climate-related financial risks posed by its fossil fuel investments (both publicly traded and private investments) and the results of the analysis. Sets forth provisions concerning definitions, de minimis exposure to fossil fuel securities, and annual reporting. Effective immediately.
4141 LRB104 03580 RPS 13604 b LRB104 03580 RPS 13604 b
4242 LRB104 03580 RPS 13604 b
4343 A BILL FOR
4444
4545
4646
4747
4848
4949 40 ILCS 5/1-110.18 new
5050
5151
5252
5353 LRB104 03580 RPS 13604 b
5454
5555
5656
5757
5858
5959
6060
6161
6262
6363 SB0130 LRB104 03580 RPS 13604 b
6464
6565
6666 SB0130- 2 -LRB104 03580 RPS 13604 b SB0130 - 2 - LRB104 03580 RPS 13604 b
6767 SB0130 - 2 - LRB104 03580 RPS 13604 b
6868 1 degrees Celsius.
6969 2 (4) Continued investment in fossil fuel-related
7070 3 industries poses unacceptable risk to the long-term
7171 4 sustainability of State and local pension funds that are
7272 5 under the State Treasurer's control; to the long-term
7373 6 sustainability of $26,000,000,000 of the State's
7474 7 investments, $17,000,000,000 in the programs established
7575 8 pursuant to Section 529 of the Internal Revenue Code,
7676 9 $12,000,000,000 of the Illinois Funds, $80,000,000 of the
7777 10 Secure Choice Retirement Savings Programs, and $30,000,000
7878 11 in the ABLE Account Program; and to the sustainability of
7979 12 other Illinois municipal and county funds.
8080 13 (5) Because the continued investment in fossil
8181 14 fuel-related industries poses unacceptable risk to these
8282 15 pension systems and State investments, those who hold
8383 16 investment authority over these systems should divest from
8484 17 fossil fuel companies and fossil fuel infrastructure. Such
8585 18 entities are encouraged to invest in climate change
8686 19 solutions where consistent with acceptable financial risk.
8787 20 Section 10. The Illinois Pension Code is amended by adding
8888 21 Section 1-110.18 as follows:
8989 22 (40 ILCS 5/1-110.18 new)
9090 23 Sec. 1-110.18. Fossil fuel investment prohibited.
9191 24 (a) In this Section:
9292
9393
9494
9595
9696
9797 SB0130 - 2 - LRB104 03580 RPS 13604 b
9898
9999
100100 SB0130- 3 -LRB104 03580 RPS 13604 b SB0130 - 3 - LRB104 03580 RPS 13604 b
101101 SB0130 - 3 - LRB104 03580 RPS 13604 b
102102 1 "Fossil fuel" means coal, petroleum, natural gas, or any
103103 2 derivative of coal, petroleum, or natural gas that is used for
104104 3 fuel.
105105 4 "Fossil fuel company" means any company, including any
106106 5 subsidiary, affiliate, or parent of a company, that: (1) is
107107 6 among the 200 publicly traded companies with the largest
108108 7 fossil fuel reserves in the world; (2) is among the 30 largest
109109 8 public company owners in the world of coal-fired power plants;
110110 9 (3) has as its core business the construction or operation of
111111 10 fossil fuel infrastructure; (4) has as its core business the
112112 11 exploration, extraction, refining, processing, or distribution
113113 12 of fossil fuels; or (5) receives more than 2% of its gross
114114 13 revenue from companies that meet the definition under item
115115 14 (1), (2), (3), or (4) of this definition.
116116 15 "Fossil fuel infrastructure" means oil or gas wells; oil
117117 16 or gas pipelines and refineries; oil, coal, or gas-fired power
118118 17 plants; oil and gas storage tanks; fossil fuel export
119119 18 terminals; and any other infrastructure used exclusively for
120120 19 fossil fuels.
121121 20 "Indirect investment" means a holding in an investment
122122 21 vehicle, whether publicly or privately traded, that directly
123123 22 or indirectly owns more than a 1% interest in one or more
124124 23 individual fossil fuel companies.
125125 24 "Pension system" means a pension fund or retirement system
126126 25 established under Article 2, 14, 15, 16, or 18 or the Illinois
127127 26 State Board of Investment.
128128
129129
130130
131131
132132
133133 SB0130 - 3 - LRB104 03580 RPS 13604 b
134134
135135
136136 SB0130- 4 -LRB104 03580 RPS 13604 b SB0130 - 4 - LRB104 03580 RPS 13604 b
137137 SB0130 - 4 - LRB104 03580 RPS 13604 b
138138 1 (b) Beginning on the effective date of this amendatory Act
139139 2 of the 104th General Assembly, in accordance with sound
140140 3 investment criteria and consistent with fiduciary obligations,
141141 4 a pension system shall not directly invest any additional
142142 5 pension assets in the stocks, securities, or other obligations
143143 6 of any fossil fuel company or any subsidiary, affiliate, or
144144 7 parent of any fossil fuel company. In addition, each board of
145145 8 trustees of a pension system shall ensure the pension system
146146 9 does not make further indirect investments unless, upon
147147 10 exercising due diligence, the board of trustees is satisfied
148148 11 that the investment vehicle is unlikely to have more than 2% of
149149 12 its assets invested in fossil fuel companies. The board of
150150 13 trustees of a pension system shall not invest in any prime
151151 14 commercial paper or corporate bonds issued by a fossil fuel
152152 15 company.
153153 16 (c) Within 90 days after the effective date of this
154154 17 amendatory Act of the 104th General Assembly, pension system
155155 18 trustees shall identify the pension system's holdings, whether
156156 19 directly or indirectly invested, including private
157157 20 investments. The report shall identify holdings that are
158158 21 invested in the stocks, securities, equities, fixed income,
159159 22 corporate bonds, prime commercial paper, or other obligations
160160 23 of fossil fuel companies. For directly invested assets, the
161161 24 name and subject of the investment, the asset class,
162162 25 acquisition dates, and its current value shall be identified.
163163 26 For indirectly invested assets, including private investments,
164164
165165
166166
167167
168168
169169 SB0130 - 4 - LRB104 03580 RPS 13604 b
170170
171171
172172 SB0130- 5 -LRB104 03580 RPS 13604 b SB0130 - 5 - LRB104 03580 RPS 13604 b
173173 SB0130 - 5 - LRB104 03580 RPS 13604 b
174174 1 the name and subject of the investment, the name of the General
175175 2 Partner, the investment vehicle, the initial date and amount
176176 3 invested, the fee structure, liquidity restrictions, if any,
177177 4 and the actual or anticipated exit date shall be disclosed.
178178 5 Such information shall be submitted as a report to the General
179179 6 Assembly and posted on each pension system's publicly
180180 7 accessible website within 180 days after the effective date of
181181 8 this amendatory Act of the 104th General Assembly. Such
182182 9 reports shall be updated and posted quarterly thereafter.
183183 10 (d)(1) The board of trustees of a pension system shall, in
184184 11 accordance with sound investment criteria and consistent with
185185 12 fiduciary obligations, divest any fossil fuel holdings.
186186 13 Divestment pursuant to this subsection must be completed by
187187 14 January 1, 2030. Nothing in this subsection precludes de
188188 15 minimis exposure of any funds held by the board to the stocks,
189189 16 securities, or other obligations of any fossil fuel company or
190190 17 any subsidiary, affiliate, or parent of any fossil fuel
191191 18 company.
192192 19 (2) Except as otherwise provided, trustees of the
193193 20 pension systems shall, in accordance with sound investment
194194 21 criteria and consistent with fiduciary obligations, divest
195195 22 any indirectly held investments no later than January 1,
196196 23 2030. Funds held in any investment vehicle that imposes
197197 24 liquidity restrictions shall be divested as soon as
198198 25 fiscally responsible but no later than January 1, 2035.
199199 26 Nothing in this subsection precludes de minimis exposure
200200
201201
202202
203203
204204
205205 SB0130 - 5 - LRB104 03580 RPS 13604 b
206206
207207
208208 SB0130- 6 -LRB104 03580 RPS 13604 b SB0130 - 6 - LRB104 03580 RPS 13604 b
209209 SB0130 - 6 - LRB104 03580 RPS 13604 b
210210 1 of any funds held by a pension system in the assets or
211211 2 obligations described in this Section.
212212 3 (3) In the period before divestment pursuant to
213213 4 paragraphs (1) and (2), the pension system may sign
214214 5 engagement letters or participate in shareholder
215215 6 resolutions seeking an agreed-upon divestment of fossil
216216 7 fuels from the pension system's holdings.
217217 8 (4) Nothing in this Section precludes or limits the
218218 9 exercise of shareholder engagement or proxy voting rights
219219 10 as guaranteed by a pension system's de minimis holdings
220220 11 following the pension system's divestment obligations
221221 12 pursuant to this Section.
222222 13 (e) Each board of trustees of a pension system that has
223223 14 adopted a written investment policy under Section 1-113.6
224224 15 shall adopt an update of its written investment policy, if
225225 16 necessary, to meet the requirements of this Section. A copy of
226226 17 the updated policy shall be filed with the Department of
227227 18 Insurance within 30 days after its adoption.
228228 19 (f)(1) Each pension system shall disclose the analytic
229229 20 methods used, if any, in determining the climate-related
230230 21 financial risks posed by its fossil fuel investments (both
231231 22 publicly traded and private investments) and the results of
232232 23 such analysis, including the alignment of each pension system
233233 24 with the Paris Climate Agreement and the climate policy goals
234234 25 that are included in the Energy Transition Act.
235235 26 (2) Each pension system shall report its
236236
237237
238238
239239
240240
241241 SB0130 - 6 - LRB104 03580 RPS 13604 b
242242
243243
244244 SB0130- 7 -LRB104 03580 RPS 13604 b SB0130 - 7 - LRB104 03580 RPS 13604 b
245245 SB0130 - 7 - LRB104 03580 RPS 13604 b
246246 1 climate-related shareholder engagement activities and
247247 2 outcomes. For publicly traded investments, the report must
248248 3 also include a description of additional action taken, or
249249 4 to be taken, by the board to address climate-related
250250 5 financial risk. The pension system's proxy voting
251251 6 guidelines and climate-related voting record for the year
252252 7 must also be included in the report. For private
253253 8 investments, fund managers must identify all efforts
254254 9 undertaken to decarbonize an existing investment and must
255255 10 further identify all efforts that will be taken to prevent
256256 11 fossil fuel exposure through future private investments.
257257 12 (3) Beginning January 1, 2026 and annually thereafter,
258258 13 each pension system shall issue a report reviewing its
259259 14 environmental, social, and governance investment policy.
260260 15 The report must disclose commonly available environmental
261261 16 performance metrics on the environmental effects of the
262262 17 pension system's investments.
263263
264264
265265
266266
267267
268268 SB0130 - 7 - LRB104 03580 RPS 13604 b