Texas Spurs Copycats as States Punish Banks That Snub Oil, Gas

State legislatures across the U.S. are drafting bills to prohibit business with finance firms that restrict ties to the oil and gas industry, following in the footsteps of Texas.

Last year, the Lone Star state prohibited government contracts with or pension investments in companies that have shunned fossil-fuel producers. The group behind the measure, the Texas Public Policy Foundation, has transmitted model legislation to states through the American Legislative Exchange Council, a corporate-funded lobby that disseminates bills popular among Republicans. Louisiana, West Virginia, Oklahoma, Kansas and South Carolina are among states considering similar measures.

With President Joe Biden and other ...