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Borrowing costs rose in the wake of Oklahoma's anti-ESG law: study

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Borrowing costs rose in the wake of Oklahoma's anti-ESG law: study


An Oklahoma law that banned state and local government contracts with investment banks that “boycott” the fossil fuel industry boosted municipalities’ borrowing costs by 59 basis points on average, according to the latest research into the financial impact of so-called anti-environmental, social, and governance laws.  

The study released Monday by the Oklahoma Rural Association comes as state lawmakers are considering changes to the 2022 Energy Discrimination Elimination Act.

Travis Roach, chair of the University of Central Oklahoma’s Economics Department, who conducted the study, found that over the approximately 17 months the law has been in effect, about $4.6 billion of municipal bonds were issued at higher coupon rates relative to borrowings in four states without a similar law. As a result, Oklahoma municipalities incurred an estimated $184.7 million in additional expenses.

Oil pump jacks in Guymon, Oklahoma. A study found a 2022 Oklahoma law banning state and local government contracts with financial institutions that “boycott” the fossil fuel industry boosted municipalities’ borrowing costs.

Bloomberg News

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“This increase in borrowing costs imposes an unnecessary financial burden on Oklahoma municipalities, potentially forcing them to cut spending on important public services or infrastructure projects, or raise taxes to cover the higher debt servicing costs,” the study concluded. 

As large financial institutions “with the scale, scope, and experience of providing municipal bond issuance services” are banned from underwriting government debt in Oklahoma, borrowing costs may increase simply because smaller firms lack that reach, it added.

The law landed Bank of America, JP Morgan, and Wells Fargo on the Oklahoma Treasurer’s “boycotter” list last year, resulting in Wells Fargo’s resignation as lead manager for a $500 million Oklahoma Turnpike Authority revenue bond sale.

Monica Collison, president of the ORA, an organization created to support economic development and infrastructure for the state’s rural communities, said while the law aimed to be “a ‘solution’ to combat the misguided perception of boycotting by financial institutions of certain industries,” the result was a politically motivated attempt to remove certain banks from operating in Oklahoma.

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Oklahoma Treasurer Todd Russ was aware of the “unintended consequences” posed by the law’s inclusion of state political subdivisions, according to Deputy Treasurer Jordan Harvey, who noted legislation introduced this session seeks to amend the act. 

Senate Bill 1510, which would remove local governments and school districts from the law, passed the Senate in a 42-1 February vote and moved to the House. 

Another bill would apply a provision against contracts worth $100,000 or more with “boycotters” only to state agencies, while adding timber, mining, and agriculture to industries the law aims to protect from boycotts. The measure passed the House in a 78-15 March vote, but failed to advance out of a Senate committee by a legislative deadline. 

Another bill that would require the treasurer to seek an opinion from the Oklahoma Attorney General if there is a fiduciary or other dispute with a state government entity regarding the law passed the Senate in March. 

Senate Bill 469, which sought to extend the energy law’s divestment requirement to the higher education sector, stalled in the Senate.

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A 2022 academic paper found similar Texas laws enacted in 2021 to protect the fossil fuel and firearm industries against boycotts and discrimination may increase borrowing costs for issuers in the state as a result of less competition among underwriters.

A subsequent study by Econsult Solutions Inc. looked at the impact if similar bills were enacted in six other states, including Oklahoma, finding that state would have incurred an estimated $49 million in additional interest costs over a 12-month period.

In March, a Texas business group released a study that concluded average underwriting spreads for local bond issues in the state rose dramatically over the last two fiscal years since the anti-ESG laws took effect.



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Severe weather threat increasing for Oklahoma tonight

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Severe weather threat increasing for Oklahoma tonight


Severe weather is still expected tonight across much of our area. In fact, the threats have increased since this morning due to more clearing skies in western Oklahoma. More sunshine means more instability to work with.

SPC Severe Weather Outlook. (KOKH)

Due to this, the Storm Prediction Center has increased all hazards for our part of Oklahoma. The strongest storms could produce winds up to 80 mph, baseball size hail, and a few tornadoes. This would be from essentially now until early Wednesday morning.

SPC Tornado Outlook. (KOKH)

SPC Tornado Outlook. (KOKH)

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The tornadic potential has increased across much of the area generally along and east of I-44/I-35.

Storm Timing. (KOKH)

The general thinking is that discrete supercells will form in western North Texas in the 3:00 PM to 5:00 PM window and begin to make their way towards southwest Oklahoma. These storms will then quickly go from being individual cells to more clusters of storms. This would increase the wind potential and make it possible for brief spinup tornadoes to form. These QLCS (quasi-linear convective systems) tornadoes can form and develop quickly.

Once the storms are generally east of I-35, there won’t be any more cells anymore and we’d be looking at a larger squall line. Check out the below model images for a look at the evolution of the storms tonight:

Futurecast 5 PM. (KOKH)
Futurecast 7 PM. (KOKH)
Futurecast 9 PM. (KOKH)
Futurecast 11 PM. (KOKH)

There is also the potential for very heavy rain with these storms too.

Heavy Rainfall. (KOKH)

A cold front will sweep the storms away to the east tonight. After the front, strong northerly winds are possible. Due to this, there is a Wind Advisory Wednesday for parts of our area.

Wind Advisory. (KOKH)
Wednesday Wind Gusts. (KOKH)

Wednesday Wind Gusts. (KOKH)

These strong winds will increase the fire danger Wednesday afternoon.

Fire Danger. (KOKH)

To stay up to date with the latest forecast, be sure to download the Fox 25 Weather App.

Download the Fox 25 First Warning Weather App. (KOKH)

Download the Fox 25 First Warning Weather App. (KOKH)

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‘I cannot stay silent’ Oklahoma City moves to dismiss former attorneys claims seized cash

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‘I cannot stay silent’ Oklahoma City moves to dismiss former attorneys claims seized cash


A legal fight is escalating between former Oklahoma City municipal attorney Orval Jones and the city over how the Oklahoma City Police Department handled cash seized during arrests.

The city has filed a motion asking a judge to strike Jones’ claims, arguing he has no legal standing and calling the criminal-case process a “restitution scheme.”

Jones says he spent eight years “cleaning up” the OKCPD property return process from 2017 to March 2025 until he resigned “due to duress” in September.

He filed an affidavit claiming OKCPD seized more than $400,000 in cash from arrests and deposited it into the city’s bank account.

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In his audit, Jones made lists of seized cash amounts, including amounts under $250, from $250 up to $500, and more than $500.

In its motion, the city argues Jones is no longer an attorney for the city or the district attorney’s office, is not an owner of any of the property “properly disposed of,” and has not suffered an injury.

The city also alleges Jones filed his motion with “half-truths” and without support or proof.

Jones responded in a rebuttal affidavit that the issue involves injury to the state, the county, other counties, crime victims, and property owners who received no notice. Jones said, “I had a professional duty to tell the court that these filings were legally defective and potentially fraudulent. I cannot stay silent.”

In an email in April 2025, OKCPD Chief Ron Bacy said the department had 288,000 overdue property and currency claims needing a disposition update, and that many investigators assigned to those cases are no longer employed with the department. Bacy said the department developed programs to assist the Property Management Unit.

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Court documents show more than 350,000 pieces of property held in the Property Management Unit, more than $2.5 million in the unit’s bank account, and that 80% of the property and money are due for disposition.

If a judge agrees with Jones, the funds may be returned to the owners.

If the judge agrees with the city, the case will be dropped.

The city and OKCPD had not responded to open records requests submitted Feb. 10.

When asked whether the city conducted or requested an internal review into the allegations, the city said it does not comment on pending litigation.

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A hearing has been set later this month.



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Oklahoma AG Drummond backs Trump EPA bid to rescind 2009 greenhouse gas finding

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Oklahoma AG Drummond backs Trump EPA bid to rescind 2009 greenhouse gas finding


Oklahoma Attorney General Gentner Drummond is seeking to join a federal court fight over the Environmental Protection Agency’s move to roll back a key climate change finding that has underpinned vehicle emissions regulations for more than a decade.

Drummond filed a motion to intervene with the U.S. Court of Appeals for the D.C. Circuit on March 9, 2026, backing the Trump administration’s efforts to eliminate what his office called “radical regulations of carbon emissions.”

The dispute centers on the EPA’s decision to rescind the 2009 Greenhouse Gas Endangerment Finding.

In a Final Rule issued earlier this year, the EPA concluded it lacked statutory authority to establish the Endangerment Finding, which had been used to justify vehicle emission restrictions under the Clean Air Act.

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Drummond joined a coalition of 24 attorneys general seeking to support the EPA after “a gaggle of special-interest groups” petitioned the D.C. Circuit to review the Final Rule.

“Thankfully, the Trump Administration is correcting the outrageous overreach that was the hallmark of the Obama-Biden Administration,” Drummond said. “Oklahoma’s energy industry, and that of our nation, should not be hobbled by unnecessary regulations born from a radical climate agenda. A panoply of would-be vehicle emission standards would be disastrous for a robust oil and gas industry, adversely impact our economy, hurt the reliability of our electrical grids and undermine national security.”

Drummond’s office said that since taking office he has filed more than 25 legal actions opposing environmental regulations, including tailpipe emission standards and efforts aimed at eliminating gas-powered vehicles.

In addition to Oklahoma, the states joining the motion to intervene are Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia and Wyoming.



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