Just as Oklahoma has been sued over its anti-ESG law, Texas now faces the same kind of lawsuit.
The American Sustainable Business Coalition, described as a progressive business group, took Texas to court last week over the state’s 2021 anti-ESG law that blocks state investments in firms that no longer have ties with the oil and gas industry.
Texas has a law similar to Oklahoma’s Energy Discrimination Elimination Act of 2022, an act patterned after the move by the Texas legislature to target firms that boycott the fossil fuel industry.
The lawsuit was filed in Austin federal court against Texas Attorney General Ken Paxton and Comptroller Glenn Hegar. the Business Coalition legal action contends the law, known in Texas as Senate Bill 13, essentially is viewpoint discrimination and denies due process to companies and is a violation of the First and Fourteenth Amendments reported the Texas Tribune.
Lawyers for the group wrote, “Texas has long presented itself as a business-friendly state where limited state regulation facilitates the ability of businesses to conduct themselves as they see fit, yet in 2021, the Legislature passed SB 13 to coerce and punish businesses that have articulated, publicized, or achieved goals to reduce reliance on fossil fuels.”
In Oklahoma, the Energy Discrimination Elimination Act was challenged by a state retiree who argued the law harmed state pension investments. An Oklahoma County District Judge ruled in May against the Act, suspending its enforcement by State Treasurer Todd Russ.
In her decision, Judge Sheila Stinson stated, “The Court hereby grants temporary injunction against the enforcement of the Oklahoma Energy Discrimination Act of 2022, based on Plaintiff’s claims of Violation of Exclusive Benefit and Vagueness. Temporary injunction is denied as to Plaintiff’s claims of Freedom of Speech and Special Law/Barrier to the Court. Defendant, his employees, agents, and successor in office are hereby temporarily enjoined from enforcing the provisions of the Oklahoma Energy Discrimination Act of 2022 until and unless the Court orders otherwise.”
Attorneys for retiree Don Keenan asked for a summary judgment but the Judge has yet to rule.
