American Oil and Gas Reporter - August 2022 - 17

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state law, and are no longer eligible to
enter into certain contracts with the
state. " As treasurer, I have a duty to act
in the best interests of the state's
treasury and our people when choosing
financial services for West Virginia, " he
says. " Any institution with policies
aimed at weakening our energy
industries, tax base and job market has a
clear conflict of interest in handling
taxpayer dollars. "
Earlier this year, Moore recounts,
West Virginia lawmakers passed SB
262, which authorizes the treasurer to
disqualify any financial institution on
the restricted list from state banking
contracts. In preparing the list, the
treasurer's office says, it reviewed
publicly available environmental and
social policy statements published by
financial institutions that are authorized
to do business with the treasurer's office
as approved state depositories or sweep
account providers for the state's shortterm
funds.
Six financial institutions initially
were identified as potentially engaged
in energy company boycotts and
provided with written notice, the state
says. The institutions then had 30 days
to submit additional information if they
wanted to dispute their potential
inclusion on the restricted list. All six
institutions submitted responses, which
the treasurer reports he reviewed
alongside each institution's public
policy statements.
Of the six financial institutions
initially noticed, U.S. Bancorp was not
placed on the restricted list because it
demonstrated to the treasurer's office
that it has eliminated policies against
financing coal mining, coal power and
pipeline construction activities from its
environmental and social risk policy.
" Each financial institution placed on
the Restricted Financial Institution List .
. . has published written environmental
or social policies categorically limiting
commercial relations with energy
companies engaged in certain coal
mining, extraction or utilization
activities, rather than considering the
financial or risk profile for each
company, " Moore details. " These
policies explicitly limit commercial
engagement with an entire energy sector
based on subjective environmental and
social policies. "
According to the state, West Virginia
annually collects hundreds of millions
of dollars in fossil fuel severance taxes,
which typically represent the thirdlargest
revenue source for the state's
general revenue budget. During the
most recent fiscal year, the nearly $769
million in severance taxes paid by coal,
oil and natural gas companies accounted
for 13% of the $5.89 billion in the
state's GR funds-which does not
include income and other taxes also
collected from the employment and
economic activity these fossil fuel
industries generate.
" While the 'environmental, social
and governance' or 'ESG' movement
might be politically popular in
California or New York, financial
institutions need to understand their
practices are hurting people across
West Virginia, " Moore concludes.
AUGUST 2022 17
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American Oil and Gas Reporter - August 2022

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