PORTLAND, Ore. (KOIN) – The Oregon legislature passed a “landmark” bill on Thursday to divest an estimated $1 billion in public pension investments in coal stocks as the state aims to shift towards clean energy.

House Bill 4083, the Clean Oregon Assets Legislation (COAL) Act, directs the Oregon State Treasury to end new investments in thermal coal, divest an estimated $1 billion in current coal stock holdings, and to provide annual reports on divestment progress to the legislature.

Officials said the legislation supports Oregon’s broader goal of shifting public pension investments away from coal and to phase out fossil fuel use in the state.

The bill was led by Rep. Khanh Pham (D-SE Portland) who says the bill was supported by over 100 organizations and public teachers’ unions including the Oregon Education Association, AFT Oregon, and AAUP-Oregon in the Divest Oregon Coalition.

“The COAL Act will begin to align our public pension investments with our state’s existing climate commitments to transition to 100% clean energy, and the global trend of coal phase out, by moving nearly one billion dollars of Oregon State Treasury funds out of publicly traded coal company stocks. I’d like to publicly thank Treasurer Tobias Read for working with me and my team on several rounds of drafting this bill, and thank my 35 co-sponsors, and the over 100 community organizations and public sector teachers’ unions who supported this legislation,” Rep. Pham said in a statement.

“The COAL Act makes climate sense, financial sense, and common sense,” said Senate Chief Sponsor Sen. Jeff Golden (D-Ashland), adding, “Our supporters recognize the dual importance of protecting retirement investments and public health, particularly for communities most affected by coal pollution.”

The bill now heads to Oregon Gov. Tina Kotek’s desk for signature.