Gov. Peter Shumlin and legislative supporters insisted Thursday they achieved their goal in efforts to have Vermont sell its pension holdings in coal-related investments and Exxon Mobil stock.
Meanwhile, State Treasurer Beth Pearce said the governor was making misstatements and assumptions and getting ahead of the process.
The back-and-forth volley came after the two appeared to have found a path last week where they each could claim victory while both saved face.
At a news conference, the governor maintained he was satisfied with the action taken by the Legislature, that it was worthy of celebration and was “a win for Vermont” even though the Legislature did not pass a specific law that would have compelled divestment.
“I’ve always made clear I want to get it done,” Shumlin said. “I don’t care what vehicle we have to ride to get there and I’m celebrating the fact today the Senate, the House and the governor and VPIC (the pension investment board) have put forth a route to get us there.”
“I don’t care how we get there, as long as we get it done,” Shumlin said. “I know you all want to write a story about who wins and who loses. Here’s the point: We all win if we sell our coal stock, we sell our Exxon Mobil” and join California in trying to figure out how to dump fossil fuel stocks.
Treasurer Pearce said Shumlin made “substantive errors” in his statements to the press on Thursday and misrepresented what the Legislature requested.
She also made clear divestment was far from a done deal, as the governor and supporters had tried to imply.
“Presupposing divestment,” Pearce said, “would be similar to drawing your curve and then plotting your data. Decisions should be made after a deliberative process — not before.”
“While I appreciate the governor’s passion for the issue, (the pension investment board) will continue forward with an analysis … in an objective, thoughtful, and thorough manner that takes into consideration the fiduciary duty that is owed exclusively to the 50,000 members of the retirement system,” Pearce said.
Pearce said the governor was trying to short-circuit the process and misrepresented the Legislature’s request. Instead of a decision by May 2, she said the Senate requested an “update” on the process of how the review of the portfolio’s coal and Exxon investments would be done.
“I find it unfortunate that we received a letter from the governor that outlines a deadline and a conclusion before any discussion of the scope of the analysis has taken place,” she said. “Predetermining the result and setting a deadline before understanding the scope is not productive for determining the best result for the beneficiaries.”
Instead of pursuing a law requiring divestment, the House passed a resolution calling for divestment, while a Senate committee wrote a letter to the board that oversees the pension investments, requesting they “pursue the intent” of the House resolution and to provide a report by May 2 on how they plan to proceed.
The governor and the legislative supporters downplayed what specific route the Legislature took, saying all they cared about was raising awareness on the issue and getting the investment board to look again at the coal-related investments. On several occasions, the Vermont Pension Investment Committee has rejected divestment of fossil fuels stocks.
“Let’s give them a chance to see what they’re going to say,” the governor said. “I think it’s important to remember this issue was dead in the water until I stood up in the State of the State.”
At the press conference, Shumlin said he saw May 2 as when VPIC “will come back and either say we can do this or no we can’t.” The investment committee is meeting Friday and is expected to discuss the formation of the divestment study subcommittee and how it will proceed.
“It’s my very much my hope that the light we’ve been able to shine on this issue will result in a more transparent process… and allow the board to decide anew using some fresh analysis. I think that’s a very significant step in the right direction,” said Rep. Chris Pearson, P-Burlington.
“The goal isn’t to pass a piece of legislation, the goal is to divest, right? Now, what’s changed is VPIC has committed to studying this issue seriously. That has to be seen as a victory in my mind.”
At the press conference, Sen. Anthony Pollina, D/P-Washington, emphasized his support for organized labor, which has in the past raised concerns about divestment, but Pollina said coal was a bad investment financially and that dumping coal holdings would financially benefit the pension funds.
Depending on how it is calculated, Vermont has anywhere from $700 in coal stocks to slightly more than $1 million. The holdings in the state pension funds, which amount to $4 billion, have approximately $200,000 in Exxon Mobil stock.
Pollina and others said after the press conference that by not having the Legislature compel divestment, it will allow the pension board to come to the same conclusion without doing it because they were forced.
The governor’s use of the bully pulpit, Pollina said, “will make it harder for them to do the wrong thing.”
The Washington County senator said the Legislature could revisit the issue in the future and take firmer action if the board does not decide to divest.
