No Oil - Part 2

Follow-up: In an earlier post this month, we noted that oil-related investments were removed from the various UC-operated savings plans.* CalPERS and CalSTRS, meanwhile, seem to have fought off a legislative attempt to order them to drop oil-related investments. (They have very small oil-related investments compared with their overall portfolios, mostly through index funds which they hold.) From the Sacramento Bee:

A bill that would have forced California’s public pension systems to sell their oil and gas holdings has been dropped from a state Assembly committee agenda for Wednesday, signaling that it won’t move forward this year. Senate Bill 1173, introduced earlier this year by Senator Lena Gonzalez, D-Long Beach, would have required the Public Employees’ Retirement System (CalPERS) and the State Teachers’ Retirement System (CalSTRS) to sell a combined $11.5 billion worth of publicly traded securities by 2030. The bill cleared the state Senate at the end of May on a 21-10 vote with nine abstentions, but was pulled Monday from a Wednesday hearing in the Assembly Committee on Public Employment and Retirement, which is chaired by Assemblyman Jim Cooper, D-Elk Grove. Cooper’s office didn’t immediately return a call Tuesday...

Full story at https://www.sacbee.com/news/politics-government/the-state-worker/article262741417.html.

The bill in question included a provision protecting members of the boards of the two funds from lawsuits if it turned out that such divestment harmed the funds.* The bill did not refer to UCRP, presumably because of the assertion that UCRP has already divested and because of the constitutional autonomy of the Regents.

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*http://uclafacultyassociation.blogspot.com/2022/06/no-oil.html. See section 2 for the protection provisions.