A recently passed bill created in order to protect Virginia’s oil, coal, and natural gas industries has officially taken effect just a few weeks after its passing and subsequent signing into law by Republican Governor Jim Justice. The bill allowed the state treasurer the power to halt state agencies from making contracts with banks and other various financial institutions that have targeted traditional energy industries via divestment.
Known as Senate Bill 262 made its way through the legislature of West Virginia in mid-March and then slid onto the desk of Justice, who just “let [the] bill become law without his signature” as reported by the Charleston Gazette-Mail. The bill was suggested to the group of legislators by Riley Moore, the Republican Treasury Secretary.
“We are leading the way to protect our coal, oil and natural gas workers and companies from unfair, un-American boycotts of these critical energy industries,” stated Moore. “This law now puts the banking sector on notice: If you refuse to do business with our people, we won’t give you our people’s business.”
SB 262 lets the treasurer for the state and his office to create a “Restricted Financial Institution List,” which can be used to outline which banks state agencies could be allowed to work alongside. It essentially means that the state treasurer has the power to ensure that state agencies are not allowed to work with the financial institutions that choose to divest from the gas and oil industry.
As reported by the Gazette-Mail, the bill also highlighted that the treasurer is allowed to notify any financial institution a period of 45 days before it is placed on the “Restricted Financial Institution List,” giving it a period in which to respond and show that “it is not boycotting energy companies.”
“At a time when energy demand is skyrocketing and consumers are bearing the brunt of generationally high inflation, it makes absolutely no sense for financial institutions to cut off capital and financing to these legal, profitable industries simply because they don’t align with their radical social and political agendas,” stated Moore.
After the original passing of the bill by the lawmakers, Moore highlighted that the bill was incredibly important for allowing America to become energy independent and to protect American jobs.
“It’s time to fight back against those who are trying to wipe out thousands of middle-class jobs, and once again put America first and restore our energy independence,” stated the Republican official.
The bill attempting to protect the coal, oil, and natural gas industries comes in the wake of gas prices striking record highs over the past few weeks, though we have seen some minor relief over the past few days.