Bill S.72, introduced by a group of 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 further 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 new responsibilities, including establishing a staff position to enhance the administration of the Commission. The funding will be allocated from various retirement funds, ensuring that the Commission has the necessary resources to meet the review, planning, and reporting requirements outlined in the legislation. The act is set to take effect upon passage.