AUGUSTA -Gov. Janet Mills signed into law last week a measure by Rep. Maggie O'Neil, D-Saco, directing the state pension system to divest from fossil fuels. The law is the first of its kind in the United States.
Maine is now the first state in the nation to commit to fossil fuel divestiture through legislation.
"Fossil fuels are linked directly to climate change, and continuing to invest in them is bad for state coffers, our retirees and our environment," said O'Neil. "It is our responsibility to steward state retirement funds to get the best financial benefit for our retirees and, as we transition to a reduced carbon economy, divestment advances that goal. Its also our responsibility to protect our environment so that future generations can inherit a healthy, habitable planet."
As amended, LD 99 requires the state cash pool and the Maine Public Employee Retirement System, or MainePERS, to divest from coal, oil and gas companies by 2026.
The only other state that has moved to divest its public pension funds from fossil fuels is New York, whose comptroller did so voluntarily without being required by statute.
O'Neil said the groundbreaking law passed thanks to a broad coalition of dedicated supporters. The victory comes after a multi-year effort by Maine community advocates.
"These efforts would not have been possible without the partnership of state retirees and youth advocates. They recognize that there is so much at stake with this work and have worked tirelessly to lead this conversation," she said.
"Thank you to Rep. Maggie O'Neil for driving this bill forward and the legislators who voted in favor for recognizing their fiduciary responsibility to pensioners and their responsibility to protect our future," said Cassie Cain, youth engagement coordinator for Maine Climate Action Now, one of the leading organizations that worked with O'Neil to advance the proposal.
"The divestment of MainePERS is a necessary step in authentically tackling the climate crisis on a systemic level, investing in Maine's future and protecting the pensions of Maine's public employees. This success is testament to the intergenerational grassroots movement which led this campaign and acknowledgement that we must have a just transition away from fossil fuel based economies," Cain said.
"This bill represents our chance to both stop investments in fossil fuels and to guarantee a better future for our teachers and other public employees. I hope this can be the first of many divestments from industries like fossil fuels that are damaging our chances at a livable future," said Sirohi Kumar, a core member of Maine Youth for Climate Justice, another organization that advocated for LD 99, and a student at Mount Desert Island High School.
"Pensioners deserve better out of their retirement funds than investment in companies that actively damage the ground on which we walk, the water we drink and the air we breathe," said Anna Siegel, high school student and youth advocate with Maine Youth for Climate Justice.
"Divesting $1.3 billion from the fossil fuel industry is one of the biggest steps that Maine can take to address climate change in the short term," said David Gibson, a former educator and advocate with Sierra Club Maine.
Gibson testified in support of the bill at its public hearing, sharing that independent analysis of MainePERS holdings shows that fossil fuel investments have hurt state retirees in recent years.
"The last seven years have proved conclusively that divestment in 2014 would have avoided an irrevocable loss, and would have created a great deal of additional value for the MainePERS members. My analysis shows that these fossil fuel holdings have lost value over the last seven years. Even prior to the pandemic and recession, the MainePERS fossil fuel investments had lost millions of dollars," said Gibson.
The new law will go into effect 90 days after final adjournment of the legislative session.
O'Neil is serving her third term in the Maine House. She is House chair of the Agriculture, Conservation and Forestry Committee and represents District 15, part of Saco.
Contact:
Jackie Merrill [ONeil], c. 812-1111