It’s Time the OK Treasurer Stopped Wasting Taxpayer Funds!
Opinion: When Oklahoma Treasurer Todd Russ unveiled a state “boycott list” targeting financial firms said to be hostile to oil and gas, he promised to defend the state’s energy producers. Instead, his mismanagement has left Oklahoma taxpayers footing the bill, state agencies tangled in legal battles, and even fellow Republicans scrambling to clean up the mess. What was meant to be a stand against Washington overreach has now become a costly cautionary tale about regulators overstepping their bounds.
Here in Oklahoma, the State Legislature passed the Energy Discrimination Elimination Act (EDEA) in 2022. The law restricts state officials from working with asset managers that allegedly “boycott” traditional energy producers.
Nearly two years after the act passed, the law was blocked by an Oklahoma District Court. The judge noted the “stated purpose of countering a ‘political agenda’ is contrary to the retirement system’s constitutionally stated purpose” – and rightly so.
Despite that, state Treasurer Todd Russ – who was anointed by the law to pick and choose which financial firms are blacklisted – appears reluctant to give up the fight. His apparent personal vendetta compelled the Oklahoma Attorney General to remove Mr. Russ’ decision-making authority on the issue and fire an outside legal team he hired to defend the law.
While meant as a necessary response to the Biden administration’s radical agenda, this regulatory tit-for-tat left ordinary Americans in the crossfire of a feud that put political virtue signaling ahead of investor and consumer interests. And, with President Trump back in office, the issue is now moot.
In his first months, the President used executive authority to halt federal ESG initiatives and negate the patchwork of state policies that impede free market competition. An executive order signed in April specifically directs the U.S. Department of Justice to stop civil actions against oil and gas producers.
These federal actions level the playing field for all forms of energy – making it even more unnecessary for Oklahoma to cling to an anti-ESG crusade that has only harmed taxpayers.
The cost of Oklahoma’s anti-ESG efforts came with significant costs. One report last year found that the EDEA saddled the state with an extra $185 million in expenses – more than $11 million per day – and drove up municipalities’ borrowing costs by over 15 percent. Likewise, Treasurer Russ’ blacklisting of respected investments firms, and limited the state’s choices of business to work with, would have cost the Oklahoma Public Employee Retirement System (OPERS) roughly $10 million.
These additional burdens – compounding the state’s projected long-term “structural deficit” – prompted Republican lawmakers to propose carve-outs to ease the law’s impact. But temporary patches are not enough. The best fix is to simply repeal the law for good. It serves no purpose anymore.
A healthy, competitive market – not state-imposed blacklists – drives economic growth. No state or elected official should be in the business of picking winners and losers or forcing counties and towns to come begging for exemptions. Treasurer Russ can’t seem to help himself; the state’s Tobacco Settlement Endowment Trust’s recent vote to put five asset managers on notice was the latest attempt by Mr. Russ to “push back” against ESG policies “run amok.” The ESG fight is a dead issue, and Treasurer Russ is the only one still trying to revive it.
Free market competition—devoid of meddling from Democrats or Republicans—produces the best outcomes for investors. Over the past two decades, a domestic energy policy that fosters all-of-the-above competition has transformed the U.S. into a net-energy exporter, reduced consumer prices, and created investment opportunities for everyday Americans. Oklahoma’s anti-ESG crusade now only prevents residents from taking advantage of these ongoing wins.
With President Trump back in the White House, the ESG wars are over. It’s time Oklahoma – particularly Treasurer Todd Russ – table its efforts and focus its resources to focus on more pressing matters for Oklahoma’s consumers and voters.
About the author: Jontie Aldrich is retired from the USFW and spent a lifetime of service to wildlife preservation for Oklahoma and the United States.