Mass. Lawmakers Propose a $5 Billion Pension Fund Cleansing

Two bills are aiming to divest the state's $62 billion public pension fund of all its coal, oil and gas holdings.

It's not getting the fanfare of a less-ambitious California bill, but Massachusetts is in the midst of an even bolder divestment push, calling for the state's pension funds to completely rid themselves of fossil fuel investments.

Rep. Marjorie Decker and Sen. Benjamin Downing, both Democrats, have proposed identical bills to divest Massachusetts' $62.3 billion public pension fund of its 8 percent holdings (about $5 billion) in coal, oil and natural gas.

Tuesday, the Joint Committee on Public Service held a nearly three-hour public hearing on the issue.  More than 70 students, public school teachers, retirees, financial analysts, public officials, labor and environmental activists, as well as legislative aides, vied for seating and standing room along the wall of a first-floor room of the State House.

About 20 people testified; most supported divestment.  The first to speak was Decker, a representative from Cambridge.

Rep. Decker told how she had served nearly a decade in public office before the importance of climate change action really sank in.  Sitting next to Decker was her young daughter.  Decker said this is the first time her daughter has accompanied her to work, and it’s because preschool just ended.  But "it is important she’s here," Decker said, to understand "the sense of urgency I feel around this."

Sen. Downing was the second to testify.  Massachusetts has "taken important steps over the last decade to transition away from fossil fuels," he said.  Downing noted that the state is first in the nation in energy efficiency and in clean-energy job growth.  He then praised the state's uptake in solar.  In 2007, there was less than 2 megawatts (MW) installed; in May 2015, there was a total of 840 MW installed; and the state has announced a goal to reach 1,600 MW by 2020.  Downing said it didn't make sense to him how his state could make the commitment to clean energy economy on the one hand, and then also rely "on the profits of fossil fuel companies to pay for pensions."

Downing proposed a similar bill in the last legislative session but it died on the Senate floor. It's unclear whether there's enough support in the legislature to pass the divestment mandate. No vote will be scheduled in either chamber until the bill passes out of the hands of the 16-person Public Service committee.

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