A vote by one of Texas’ major state pension funds concerning fossil fuel investments has angered some Republicans who say it violates a new law meant to support the fossil fuel industry.

The Employee Retirement System (ERS) of Texas voted by proxy in favor of a resolution that would limit banks from financing new fossil fuel projects.

The resolution was aimed at four banks: Bank of America, Citigroup, Goldman Sachs, and Wells Fargo. The Environmental, Social, and Governance-focused (ESG) asset management firms and one environmental group introduced the resolution at an annual meeting between the four banks.

ESG gives companies a grade for their investment potential. The more a company follows its environmental and social policy metrics, the higher its grade and the more investments it is likely to receive.

The boards of each financial company rejected the proposal by an overwhelming majority, but ERS’s position in favor of the policy has sparked backlash.

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Last year, the Texas legislature passed Senate Bill (SB) 13, which bans state agencies from working with companies that “boycott” the oil and gas industry. ERS manages $35 billion for Texas retirees and state employees.

Republican Lieutenant Governor Dan Patrick said their vote in favor went “against the spirit” of the new state law and that he was “outraged” by the move.

“Our various investment funds’ focus should be on getting the best return on their funds,” said Patrick, who heads the Texas Senate. “If companies they invest in take positions that harm Texas, they need to re-evaluate those investments.”

Patrick added that “ERS has pledged to review and modify its voting policies with its voting proxy to address my concerns.”

ERS uses a proxy advisor, Institutional Shareholder Services, to vote for policies on the pension system’s behalf.

“We became aware of the issue late last week and were in contact with our proxy advisor, Institutional Shareholder Services, to resolve the matter going forward,” ERS spokeswoman Mary Jane Wardlow told The Texan. “Our new [chief investment officer], who took office last fall, had already identified the proxy voting process as an area that needed to be examined and has formed a committee to review it regularly and make recommendations for improvement.”

It is not clear if ERS does support the policy. Most proxy votes are cast according to ERS policy and guidelines, according to Wardlow.

“There may have been some disconnect between intent and edits that were made several years ago,” Wardlow added.