Federal Judge Strikes Down TX Law Intended To Target Critics Of Fossil Fuels
A federal judge in Texas has struck down a law barring state agencies from investing in firms accused of boycotting fossil fuel companies. The 2021 law had become a model for similar measures around the country, as part of a larger push against the use of environmental principles in investing.
Judge Alan D. Albright of the U.S. District Court in Austin ruled that the law was unconstitutional and blocked the state from enforcing it. The law, known as S.B. 13, was overly broad and related to activities protected by free speech rights, he wrote in a 12-page decision signed on Tuesday. He said the measure allowed the state to penalize companies “for all manner of protected expression concerning fossil fuels.”
The decision was part of a lawsuit filed in 2024 by the American Sustainable Business Council. Two of the companies it represents, Etho Capital and Sphere, had been put on what they called a blacklist. David Levine, the council’s president, called the decision “a massive win for sustainable businesses and investors, for responsible shareholders in Texas and for freedom.”
The suit named Ken Paxton, the Texas attorney general, and the state’s former comptroller, Glenn Hegar, as the defendants. Mr. Paxton’s office did not immediately respond to a request for comment, nor did the office of the acting comptroller, Kelly Hancock. Judge Albright, who was appointed by President Trump in 2018, wrote that the law was too vague, failed to provide a “reasonable opportunity” to know what conduct was prohibited, and invited discriminatory enforcement. Even its definition of what constituted a boycott was unclear, and standards for measuring compliance with the law were not provided, he wrote.
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https://www.nytimes.com/2026/02/05/climate/texas-esg-lawsuit.html
