California’s state legislature recently faced a critical development with SB252, a bill that proposed a divestment of the state’s public pension funds—CalPERS and CalSTRS—to divest from fossil fuels by 2031. The bill, introduced by State Senator Lena Gonzalez, redefines California’s investment strategy by aligning its pension fund holdings with the state’s ambitious climate goals. CalPERS and CalSTRS are the largest public pension funds in the nation, carrying more than two million people’s pensions. Although SB252 was able to pass out of the Senate, it failed to make it out of committee.
Assemblymember Tina McKinnor, a PERS Committee Chair, made sudden massive amendments to the bill that would delay divestment until 2045, remove specific wording in the bill that would have brought awareness to communities of color affected by fossil fuels and paint the oil industry as part of the climate solution. These amendments were then returned to Senator Gonzalez with no open negotiation, forcing Gonzolez to kill her own bill.
SB252 addressed a longstanding contradiction within California’s financial and environmental policies. While the state has been a vocal leader in climate action, it continues to invest billions of dollars through CalPERS and CalSTRS into fossil fuel companies. These funds have approximately $13 billion tied to industries that contribute to global greenhouse gas emissions, perpetuating the dependence on fossil fuels that California’s climate policies aim to end.
Many environmental advocacy groups, lobbyists, and nonprofits have fought for environmental divestment for years. Youth Vs. Apocalypse (YvA) an Oakland-based youth environmental group has pushed for divestment legislation and tried to gain the California Teachers Association (CTA) endorsement for many years. In early Jun. many youth attended and lobbied CTA teachers and representatives to vote yes on this endorsement. While only needing 50% of the vote to pass, the endorsement failed 40/60. During the CTA conference, many teachers spoke in affirmation or opposition to the endorsement. Teachers and CalSTERS/CalPERS Committee Chairs lined up to the microphone in hopes of swaying the vote. A noticeable feature of the opposition was the disproportionate number of white speakers who were of senior age and on the retirement committee. The CTA retirement committee is a large negator of SB252 for fear of losing pension money. While it is understandable to be concerned about retirement funds, the fossil fuel industry is becoming more unstable with sustainable energy on the rise, and researchers at the University of Waterloo (2023) estimate 9.6 billion dollars of missed returns due to fossil fuel investment. With this in mind, it begs the question— why are old white people the ones influencing the vote that affects young generations and communities of color?
Furthermore, CalSTERS Committee Chair, Kan Tang, is an Alhambra Unified School District (AUSD) Board member. Someone with true power in fossil fuel divestment represents Alhambra students and chooses to remain quiet on the topic of divestment. Being on the AUSD School Board I have no doubt Tang does a fine job representing students and maintaining a strong connection with the community. I also do not believe that CalSTERS and CalPERS members are evil or truly bad people. However, it is hard for me to remain quiet on a topic that directly impacts youth and communities of color which I advocate to represent. I admit, if people told me what I can and cannot do with my money I would be upset. But it is more than just our feelings, our planet is dying.
Although SB252’s failure is a setback, the need for California to address this issue is far from over. Environmental activists and legislators who backed SB252 argue that the fight to end fossil fuel investments must continue. Passing local resolutions, lobbying community leaders, and advocating for what you truly believe in are all ways to make a difference and push for environmental justice.
