This bill creates new law by adding sections to chapter 43.21A and chapter 43.33A RCW that require the State Investment Board (SIB) to divest all state-managed funds from defined "thermal coal" companies and bar new investments in those companies or funds that include them beginning on the effective date of the new section. SIB must ensure by January 1, 2030, that subject investment funds are not invested in any thermal coal company or any fund containing one, except as provided in section 6 (section 6 text not included in the extracted facts). The bill imposes procedural requirements on SIB to investigate investments, publicly notify publicly traded thermal coal companies, withdraw invested funds, and report to the legislature by December 15, 2025, and annually thereafter until no subject funds remain invested in thermal coal companies. The bill defines key terms: "subject investment funds" means all funds under SIB management; "clean energy" is nonemitting electric generation and electricity from renewable resources as referenced in RCW 19.405.020; and "global coal exit list" refers to Urgewald’s list. It defines "thermal coal company" by multiple quantitative and activity-based criteria (including revenue, generation share or capacity from coal, production and capacity thresholds, planned new coal capacity, exploration or mine expansion activity, and development of coal-dedicated transportation or related infrastructure). The definition is based on Urgewald’s definitions as of January 1, 2025, and the bill requires annual review of that definition beginning January 1, 2030; a department (not identified in the extracted facts) is directed to perform the annual review and report meaningful changes to relevant environmental committees for legislative consideration. The bill allows SIB to retain investments in a thermal coal company if the company demonstrates it is transitioning to clean energy on a reasonable timeline; SIB may adopt rules to define and monitor that timeline. SIB may use the Urgewald global coal exit list to identify companies and may consult managers of public employee pension funds in other states. The extracted facts do not specify the effective date of the new sections, do not identify which department must perform the post‑2030 reviews, do not include the text of section 6 or details on the term "prorated," and do not describe enforcement mechanisms, fiscal impacts, or other implementation procedures.

If enacted, the State Investment Board (SIB) would have to stop making new investments in companies the bill calls "thermal coal companies" immediately and remove existing investments in those companies or any funds that hold them by January 1, 2030, while reporting to the legislature by December 15, 2025 and every year after until the holdings are gone. SIB must actively investigate its portfolios (using tools like the Urgewald global coal exit list as a baseline), notify public companies identified as thermal coal companies, sell or withdraw funds invested in them, and monitor any companies it allows to stay because they can show a credible transition to "clean energy" on a timeline SIB sets. The groups most affected are SIB (which will face new, ongoing responsibilities to identify, sell, monitor, and report, implying staff time and administrative work) and the companies meeting the bill’s thermal coal criteria (which could lose access to SIB-managed capital). Managers of other public pension funds may be consulted, and a state agency called only "the department" would be asked to review the definition beginning January 1, 2030. Important implementation details are missing or unclear from the extracted text, including the law’s effective date, which specific department must do the reviews, what exceptions section 6 allows, how the "prorated" capacity threshold works, and any fiscal or enforcement mechanisms.