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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 681
Sponsored by Senator GOLDEN; Senators FREDERICK, PHAM K, TAYLOR, Representatives FRAGALA, GAMBA,
HUDSON, NELSON, NOSSE (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act says that for five years, the State Treasurer can’t invest in private funds that
deal heavily in fossil fuels.(Flesch Readability Score: 72.7).
Prohibits the State Treasurer from renewing investments in or making new investments in a
private market fund if the managers of the fund have stated an intention to invest in fossil fuels,
subject to fiduciary duties.
Sunsets on January 2, 2031.
A BILL FOR AN ACT
Relating to a moratorium on private investments by the State Treasurer in fossil fuel dominant
funds.
Whereas reports commissioned by the State Treasurer have shown that the state’s investments
are at significant risk under current investment strategies; and
Whereas the impacts of the changing climate pose risks to supply chains, threaten property and
transportation infrastructure, force insurance companies to pull out of entire geographic areas and
disrupt commodity and mortgage markets; and
Whereas in Oregon, more intense forest fires threaten rural communities and disrupt outdoor
recreational opportunities and the tourism industry; smoke from these fires threatens our workforce,
our elders and our children; severe droughts constrain our important agricultural and nursery in-
dustries and imperil our salmon runs; and businesses are forced to spend millions to mitigate the
most pressing climate effects rather than investing in future innovation and opportunities; and
Whereas in February of 2024, State Treasurer Tobias Read introduced a plan to achieve a net
zero carbon future for the Oregon Public Employees Retirement Fund; and
Whereas the plan requires the exclusion of new investments in private market funds that intend
to invest primarily in fossil fuel and the tripling of investments in climate-positive holdings; and
Whereas the plan makes a commitment to expand engagement activities, including partnerships
with other pension funds, support for company transitions, clean energy investments and incorpo-
ration of just transition principles; and
Whereas the State Treasurer is required to manage its investment portfolios with the care, skill
and diligence of a prudent person engaged in a similar enterprise so as to maximize investment re-
turns and minimize the risk of loss; and
Whereas the State Treasurer has successfully excluded investments in fossil fuels in the Public
University Fund while meeting its fiduciary duties related to the fund, and the fund has met or ex-
ceeded its benchmark for the majority of quarters since excluding fossil fuels in 2018; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 293.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3149 SB681
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SECTION 2. (1)(a) The State Treasurer may not renew investments in or make new in-
vestments in a private market fund if the managers of the fund have stated an intention to
invest in fossil fuels.
(b) The State Treasurer shall monitor private market funds in which the State Treasurer
has made investments or may make investments to ensure compliance with this section.
(c) The State Treasurer shall ensure that contracts with managers of private market
funds are consistent with the requirements of this section.
(2) The State Treasurer shall carry out the duties imposed by this section without in-
curring material contractual penalty and in a reasonable and prudent manner by investment
in acceptable institutions at comparable or better rates and returns in light of the risk and
investment horizon appropriate for each investment fund.
(3) Nothing in this section is intended to abrogate the fiduciary responsibilities of the
State Treasurer as described in ORS 293.721 and 293.726.
(4) As used in this section:
(a) “Invest in fossil fuels” means to make investments, or to intend to actively consider
making investments, of at least 10 percent of assets under management in companies en-
gaged in any combination of:
(A) Producing, exploring for or extracting fossil fuels;
(B) Transmitting or exporting fossil fuels;
(C) Creating, maintaining or dealing in infrastructure dedicated to fossil fuels, including
pipelines and terminals; and
(D) Refining or processing crude oil or natural gas.
(b) “Investment” means the commitment of funds or other assets to a company, includ-
ing a loan or other extension of credit made to that company, or the ownership or control
of a share or interest in that company or of a bond or other debt instrument issued by that
company.
(c) “Private market fund” includes privately placed investment funds and private assets,
information about which is exempt from disclosure under ORS 192.355.
SECTION 3. Section 2 of this 2025 Act is repealed on January 2, 2031.
SECTION 4.(1) On or before January 15 of each year, the State Treasurer shall report
to the Legislative Assembly in the manner provided by ORS 192.245 on the subjects described
in subsection (2) of this section. The State Treasurer shall make reports under this section
publicly available on the website of the State Treasurer.
(2) The report must include descriptions of:
(a) Actions taken by the State Treasurer and the Oregon Investment Council in the
previous year pursuant to the provisions of section 2 of this 2025 Act;
(b) Actions taken to reduce the systemic risk of fossil fuels and climate change on the
overall portfolio, including any collaborations with investors or others in order to reduce the
risk of climate change; and
(c) Actions taken to include just transition principles in the State Treasury’s
decarbonizationefforts.
(3) As used in this section:
(a) “Just transition” means efforts to ensure that the transition to a low-carbon economy
is fair, inclusive and socially equitable, including managing the transition in a way that pro-
tects workers, communities and vulnerable groups.
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(b) “Systemic risk” means large-scale threats that can affect the entire economy rather
than just one company or sector.
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