04-14-2025

Protecting American Energy From State Overreach

Executive OrderView the Original .pdf

The 1-Minute Brief

What: Executive Order 14260, "Protecting American Energy From State Overreach," directs the Attorney General to identify and challenge state and local laws that the administration deems an overreach of their authority and an impediment to domestic energy production. The order specifically targets state-level climate change initiatives, environmental regulations, and what it terms "extortion" laws.

Money: There is no specific Congressional Budget Office (CBO) score or appropriation associated with this executive order. Its financial impact will be realized through the costs of litigation initiated by the Attorney General and the potential economic effects of overturning or halting state-level energy and climate laws.

Your Impact: The most likely direct effect on an average American could be changes in energy costs and shifts in environmental regulations in your state. Depending on where you live, this could mean lower energy prices in the short term, but also a potential rollback of state-led efforts to combat climate change.

Status: Issued by the White House on April 8, 2025, and published in the Federal Register on April 14, 2025. The Attorney General is directed to report on actions taken within 60 days of the order.


What's Actually in the Bill

This executive order empowers the Attorney General to review and take legal action against state and local laws, regulations, and policies that are determined to burden domestic energy production. It is framed as a measure to ensure American energy dominance and protect national and economic security.

Core Provisions:

  • The Attorney General is ordered to identify all state and local laws that may be unconstitutional or preempted by federal law in their restriction of domestic energy resources, including oil, natural gas, coal, and nuclear energy.
  • Priority is given to identifying state laws related to "climate change," "environmental, social, and governance" (ESG) initiatives, "environmental justice," and carbon emissions or taxes.
  • The Attorney General is directed to take "all appropriate action" to halt the enforcement of identified state laws and to stop related civil lawsuits.
  • A report must be submitted to the President by June 8, 2025, detailing actions taken and recommending any further presidential or legislative actions needed.

Stated Purpose (from the Sponsors):

The administration states that this order is designed to unleash American energy by removing what it considers "illegitimate impediments" to domestic energy production. The stated goals include:

  1. To ensure an affordable and reliable domestic energy supply, which is deemed essential for national and economic security.
  2. To counteract state and local regulations that are seen as targeting or discriminating against out-of-state energy producers and hindering interstate and international trade.
  3. To prevent what the order describes as "burdensome and ideologically motivated 'climate change' or energy policies" from driving up energy costs for American families.

Key Facts:

Affected Sectors: Energy (oil, gas, coal, nuclear), Environmental Regulation, State and Local Government.
Timeline: The Attorney General was required to report to the President on actions taken by June 8, 2025.
Scope: The order has a nationwide scope, targeting laws and policies of any state or local government that are deemed to be in violation of the order's principles.


The Backstory: How We Got Here

Timeline of Events:

The Rise of State-Level Climate Action (2000s-2020s):

In the absence of comprehensive federal climate legislation, many states began to enact their own policies to address greenhouse gas emissions. California's cap-and-trade program, established in 2013, created a market-based system to lower emissions. More recently, states like Vermont and New York have passed "Climate Superfund" laws. These laws aim to make large fossil fuel companies pay for a share of the damages caused by climate change. Vermont's law, the first of its kind, went into effect in July 2024 and holds certain fossil fuel companies strictly liable for their share of greenhouse gas emissions between 1995 and 2024. New York followed with a similar law, requiring large energy companies to pay a total of $75 billion into a "Climate Superfund."

Why Now? The Political Calculus:

  • The issuance of this executive order represents a direct federal response to the growing trend of state-led climate litigation and regulation.
  • The administration views these state laws as an existential threat to its goal of "American energy dominance" and a form of "extortion" against energy companies.
  • The order is a clear attempt to reassert federal authority over energy policy and to challenge the legal and constitutional basis of these state actions, setting the stage for significant legal battles.

Your Real-World Impact

The Direct Answer: This directly affects specific groups, namely energy producers and state governments, but the ripple effects could be felt by most Americans through energy prices and environmental policy changes.

What Could Change for You:

Potential Benefits:

  • Lower Energy Costs: If the executive order is successful in halting state-level restrictions on energy production and taxes on fossil fuels, it could lead to lower gasoline and electricity prices for consumers.
  • Increased Energy Production: Proponents argue that removing state-level barriers will lead to increased domestic energy production, enhancing U.S. energy independence.

Possible Disruptions or Costs:

Short-term (1-2 years):

  • Legal Uncertainty: A wave of lawsuits between the federal government and various states could create an unpredictable regulatory environment for the energy sector.
  • Policy Whiplash: States that have been pursuing aggressive climate policies may see their efforts halted or reversed, causing disruption to ongoing projects and investments in renewable energy.

Long-term:

  • Weakened Climate Action: The order could significantly undermine state-led efforts to combat climate change, potentially leading to higher greenhouse gas emissions in the long run.
  • Shift in Regulatory Power: A successful implementation of this order could lead to a significant shift in the balance of power, with the federal government having more control over energy and environmental policy, traditionally areas of shared state and federal authority.

Who's Most Affected:

Primary Groups: Fossil fuel companies, state governments (particularly in New York, Vermont, and California), and environmental advocacy groups.
Secondary Groups: Taxpayers in states with "Climate Superfund" laws who might have seen that money used for climate adaptation projects. Also, industries that rely on stable energy prices and a predictable regulatory landscape.
Regional Impact: States with active climate change legislation, such as those in the Northeast and on the West Coast, will be most directly impacted.

Bottom Line: This executive order could lower your energy bills but may also weaken environmental protections and your state's ability to address climate change.


Where the Parties Stand

Republican Position: "Unleash American Energy"

Core Stance: The federal government should have primary authority over national energy policy to ensure low costs and energy independence.

Their Arguments:

  • ✓ Supports removing state-level regulations that are seen as burdensome to the fossil fuel industry and a barrier to economic growth.
  • ✓ Believes that a uniform federal policy is necessary to prevent a patchwork of state laws that harm the national energy market.
  • ⚠️ May have reservations about the extent of federal intervention in all areas of state law, but generally supports the goal of the executive order.
  • ✗ Opposes state-level "climate superfund" laws, viewing them as retroactive "extortion" that unfairly penalizes energy companies for legal past activities.

Legislative Strategy: Supporting the Attorney General's legal challenges to state laws and potentially introducing federal legislation to preempt state authority in these areas.

Democratic Position: "Protect States' Rights and the Climate"

Core Stance: States have the right and the responsibility to protect their citizens from the impacts of climate change, especially in the face of federal inaction.

Their Arguments:

  • ✓ Strongly supports state-led initiatives to reduce greenhouse gas emissions and hold polluters accountable for environmental damage.
  • ✓ Believes that the "polluter pays" principle is a fair way to fund climate adaptation and resilience projects.
  • ⚠️ Some may have concerns about the potential for a patchwork of state laws, but they generally see it as a necessary outcome of diverse state needs and priorities.
  • ✗ Actively opposes the executive order, viewing it as a federal overreach that undermines environmental protection and states' rights.

Legislative Strategy: Challenging the executive order in court, introducing legislation to protect state authority on environmental matters, and building coalitions of states to resist federal intervention.


Constitutional Check

The Verdict: ⚠️ Questionable

Basis of Authority:

The executive order implicitly relies on the Supremacy Clause and the Commerce Clause of the U.S. Constitution. The argument is that federal law and authority over interstate commerce preempt conflicting state laws.

Supremacy Clause (Article VI, Clause 2): "[...] the Laws of the United States which shall be made in Pursuance thereof ... shall be the supreme Law of the Land."
Commerce Clause (Article I, Section 8, Clause 3): Gives Congress the power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes."

Constitutional Implications:

Federal Preemption: The core of the legal debate will be whether federal laws (like the Clean Air Act) and the federal government's authority over interstate commerce are so comprehensive as to leave no room for states to enact their own, more stringent environmental regulations or to create novel legal remedies like "climate superfunds."
Dormant Commerce Clause: Even without a direct conflict with federal law, states cannot enact laws that unduly burden interstate commerce. Opponents of the state laws will argue that these measures unfairly target out-of-state energy companies and disrupt the national energy market.
Federalism: This executive order raises fundamental questions about the balance of power between the federal government and the states. The Supreme Court has historically recognized that states have broad "police powers" to protect the health and welfare of their citizens, which includes environmental protection.

Potential Legal Challenges:

Legal challenges are almost certain and are likely to come from states targeted by the order, as well as environmental groups. They will argue that the executive order is an unconstitutional overreach of presidential authority and that the state laws are a legitimate exercise of their power to protect their residents from the local impacts of climate change. The defense of these state laws will likely argue that they address local harms and do not improperly regulate out-of-state conduct.


Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support Executive Order 14260 and efforts to ensure affordable and reliable American energy."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact members of the House Committee on Energy and Commerce and the Senate Committee on Energy and Natural Resources to express your support.
  • Join an Organization: [List of advocacy groups supporting the bill.]
    • American Energy Alliance
    • Consumer Energy Alliance

TO OPPOSE THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: [Capitol Switchboard: (202) 224-3121] "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose Executive Order 14260 and to defend our state's right to protect our environment."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper explaining why you believe your state should have the authority to address climate change and protect its environment.
  • Join an Organization: [List of advocacy groups opposing the bill.]
    • Sierra Club
    • Earthjustice
    • Natural Resources Defense Council (NRDC)
    • Conservation Law Foundation