“I think if these companies are anti-Texas, then Texas should not reward them with doing business in the state,” Isaac said. The legislative proposals would address concerns that oil and gas and other industries are having an increasingly harder time getting coverage, said Jason Isaac, director of the foundation’s energy initiative, noting he supported harsher changes than those under consideration. Foundation officials were instrumental in crafting the state’s 2021 boycott law and have since pushed anti-ESG legislation in other states.įor insurance, the Texas Department of Insurance licenses and regulates companies that operate in the state. The measures have the backing of the Texas Public Policy Foundation, an influential conservative group that backs the fossil fuel industry. It’s not over until it’s over,” said Jay Thompson, a lobbyist representing the Association of Fire and Casualty Companies in Texas, which has testified as neutral on the proposals. Lawmakers revised the bill impacting how insurers set rates to clarify that companies can still use actuarial principles and consider relevant information, even if it could also be considered an ESG factor. Insurance association representatives raised concerns that initial versions of the proposals could lead to unintended consequences for an industry where business practices are based on determining risk, such as setting rates in hurricane zones or areas prone to wildfires. Greg Abbott (R), who wrote in a March letter to President Joe Biden (D) that Texas will ensure this year “that insurance companies do not hinder companies from our energy sector to placate ESG advocates.” Phil King (R), who’s sponsoring one of the bills, said at a committee hearing last week. “When institutional investors force insurers into considering subjective external factors such as ESG, both the Texas economy and its citizens will be adversely affected,” state Sen. and Valero Energy Corp., paid nearly $25 billion in state royalties and state and local taxes last fiscal year, according to the Texas Oil and Gas Association. The industry, anchored by companies such as ConocoPhillips Co.
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