The bill S.72, introduced by several Vermont Senators, mandates the Vermont Pension Investment Commission to conduct a review of the carbon footprint of the Vermont State Employees Retirement System, the State Teachers Retirement System, and the Municipal Employees Retirement System by December 15, 2025. Following this review, the Commission is required to develop a divestment plan to eliminate investments in the fossil fuel industry from these retirement systems by December 31, 2030, and to divest from any private investments containing fossil fuel assets by December 31, 2040. The bill emphasizes the importance of sound fiduciary practices and includes provisions for exceptions based on de minimis exposure to fossil fuel investments.

Additionally, the bill appropriates $127,000 for FY 2026 to support the Commission in fulfilling its review, planning, and reporting obligations. This funding will be allocated from various retirement funds, including the Vermont State Retirement Fund, the Vermont Teachers Retirement Fund, and the Vermont Municipal Retirement Fund. The act is set to take effect upon passage, and it outlines a series of reporting requirements to ensure transparency and accountability in the divestment process, including annual updates on progress and a final report by January 15, 2041.