As Californians evacuate homes and breathe smoke from fires across the state amidst years of climate whiplash, we are deeply disappointed that SB 252, a bill to protect California’s public pensions –CalPERS and CalSTRS, the two largest in the nation, through fossil fuel divestment – will not be moving forward this year.

Senate Majority Leader Lena Gonzalez (D-Long Beach) was forced to pull SB 252 after receiving poisonous eleventh-hour amendments, which were proposed without room for negotiation by Assembly PERS Committee Chair Tina McKinnor and PERS Committee Staffer Michael Bolden. 

Assemblymember McKinnor effectively blocked this bill two years in a row, slowing down real climate action and policy that would protect the planet, workers and frontline communities. 

We’ve spent three years now working alongside Fossil Free California, building power in a grassroots coalition led by workers, teachers, unions, pensioners, and youth. I’m so proud of the work we’ve done together. And while the bill was unraveled in just three days, our coalition will not unravel. Because when we organize and uplift those most impacted by the climate crisis, we build unstoppable power and relationships. 

The timeline

SB 252 (Gonzalez, Wiener, and Stern) would have required California Public Employees Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) to refrain from making new investments or renewing existing ones in fossil fuel companies, as defined, provided these actions are consistent with the funds’ fiduciary responsibilities. 

Last year, the bill passed the Senate and was headed to the Assembly with massive momentum when PERS Committee Chair Tina McKinnor paused the bill claiming she “needed more information” and requested an informational hearing on the bill, which never came to fruition. 

She punted the bill to the 2024 legislative session effectively stalling through two full legislative sessions before proposing atrocious amendments to author Senate Majority Leader Lena Gonzalez. This is a more dangerous delay at a time when we need all hands on deck for climate justice.  

The poison pill amendments

The amendments came just days before SB 252 was set for its first public hearing. The amendments included offensive and off-base proposals such as striking through “communities of color” as an affected community of climate change. We know for a fact who is hit first and worst by the climate crisis and to us, that was something we just could not accept.  

The amendments also included moving the divestment and reporting date to 2045, additional language describing the fossil fuel industry as “leaders” in sustainability, and gave pensions way too much leeway not to divest from companies’ “making progress” allowing for massive loopholes. 

Senator Gonzalez communicated with Chair McKinnor on the amendments to reach an agreement that both parties could live with moving the bill out of the Committee. McKinnor outright refused to negotiate and held the bill hostage for amendments that effectively gutted the bill, a slap in the face by the Assembly PERS Committee. They uplifted fossil fuel talking points, allowing Big Oil and Gas to evade accountability, continue to worsen the climate crisis, and pollute low-income communities of color, all while risking the livelihoods of CalPERS and CalSTRS members! 

On Wednesday, June 19th, dozens of members of our SB 252 coalition consisting of CalPERS and CalSTRS members, teachers, public employees, youth and frontline community members stood in solidarity with Senator Gonzalez at a press conference to announce the removal of the bill for this year, and expose the poison pill amendments that would have taken away the bill’s power to require fossil fuel divestment from CalPERS and CalSTRS.

The analysis

As staff, volunteers, supporters, pensioners and advocates, we did everything right. Thank you to everyone who put so much time and energy into this. Stand.earth alongside Fossil Free California and the hundreds of grassroots organizations who endorsed the bill spent years and thousands upon thousands of hours forging essential relationships, building our power through story, meeting with legislators, mobilizing thousands across the country to support, and pitching in on every facet of organizing to support this bill and support pension holders. 

Despite this setback, it’s not if – it’s when and how fast – CalPERS and CalSTRS divests from fossil fuels. CalPERS and CalSTRS must live up to fiduciary duty, not bend to the fossil fuel lobby.

Honestly, the biggest thing you can do right now is join Stand.earth’s monthly donor community. We’ve got big plans, we fund local groups whenever we can, and we need to know how much money we’ll have to beat back a billion dollar industry and the politicians who seem to care more about a dying industry than us.You can join here. 

We remain steadfast in our commitment to protect our pensions and build a climate-safe California. As our movement mobilizes to surge back stronger than ever next year, we reflect on our massive momentum and community power-building. Our energy is unstoppable, and we will continue to rally for our deserved future as we look to the 2025 legislative session. 

About this campaign:

Stand.earth protects forests, moves the world beyond fossil fuels, and transforms cities and transportation. The Climate Safe Pensions Network coordinated by Stand.earth is a critical piece of the Climate Finance puzzle that will move the world beyond fossil fuels. Read more here.

About this campaigner: 

Amy Gray is the Associate Director of Climate Finance at Stand.earth, coordinator of the Climate Safe Pensions Network, and member of the board of directors at Fossil Free California the leading organization behind the California divestment movement.

Amy is former director and organizer at 350.org, 350 Colorado and a co-founder and former co-managing Director of Stop the Money Pipeline, Amy is an expert in organizing mass mobilizations and forming diverse coalitions. She is a trainer in anti-oppression and intersectional climate justice organizing and is most passionate about divestment and climate finance.

Amy also sits on the Steering Committee of Stop the Money Pipeline and Divest Oregon and sits on the board of directors for 350 Colorado Action and The Chinook Center. She was the recipient of the 2020 Climate Warrior Award from the El Paso County Democratic Party for her work on decommissioning the coal plants in El Paso County, Colorado.