District court judge made right decision to protect free markets | Opinion
By John Wittman, executive director of Americans for Free Markets, The Oklahoman
The Oklahoma state Legislature passed the Energy Discriminations Eliminations Act (EDEA) in 2022, intended to prevent public state funds, including pension assets, from being managed by financial institutions that are deemed to be boycotting certain industries, including energy companies.
The law empowered the state treasurer to compile a list of financial companies that boycott energy companies and would then blacklist them from managing any state pension plans due to the alleged boycotts. The reality couldn’t be further from the truth. In fact, many of the financial companies the law is intended to target are some of the largest oil and gas industry financers, as evidenced by the Banking on Climate Chaos report released earlier this year. Additionally, traditional energy does not have trouble finding financing and banking services. This begs the question: What exactly is the Oklahoma treasurer using to make these determinations? The law attempts to solve a perceived issue that doesn’t exist while serving as a prime example of egregious government overreach, adding increased administrative and regulatory costs that fall on taxpayers while harming the pensions of retirees in the process. In granting a temporary injunction against enforcement of the law, Oklahoma County District Court Judge Sheila Stinson agreed, stating that “the Court finds that divesture or transfer of assets and investments has the potential to affect the financial soundness of the investment accounts.” The judge made the right decision, and ultimately, the legislation needs to be overturned.