Federal Order Targets State Climate Laws, Citing Threats to Energy Dominance

In a sweeping new directive, the White House has issued an executive order aimed at dismantling a wide array of state and local climate-related laws, lawsuits, and regulations that it claims threaten U.S. energy dominance and economic security. The order instructs the U.S. Department of Justice (DOJ) to identify and challenge any state or municipal action that burdens the production or use of domestic energy, particularly fossil fuels.

The directive marks a sharp escalation in the federal government’s confrontation with state-led climate initiatives, positioning such efforts as unconstitutional impediments to national energy development. It specifically targets policies addressing greenhouse gas emissions, environmental justice, carbon penalties, and ESG investment frameworks.

“Americans are better off when the United States is energy dominant,” the order states. “These State laws and policies are fundamentally irreconcilable with my Administration’s objective to unleash American energy.”

Focus on States Citing Fossil Fuel Accountability

The order singles out several states—including New York, Vermont, and California—for what it characterizes as punitive and ideologically driven energy regulations:

• New York’s Climate Leadership and Community Protection Act and associated lawsuits are labeled “climate change extortion laws,” accused of retroactively imposing billions in fines on energy producers for global emissions.
• Vermont faces similar criticism for attempting to recover climate-related damages tied to historic fossil fuel use.
• California’s cap-and-trade and low-carbon fuel programs are portrayed as economically coercive, allegedly creating barriers for out-of-state businesses through costly carbon credit schemes.

The administration asserts these policies violate the Commerce Clause, Supremacy Clause, and principles of Federalism by projecting the regulatory will of a few states onto the entire nation.

DOJ Directed to Challenge Climate Enforcement

Under Section 2 of the order, the DOJ—through the Attorney General—is instructed to:

• Identify all state or local actions that burden fossil fuel development or contradict federal priorities.
• Take immediate legal action to halt enforcement of those policies if deemed unconstitutional or preempted by federal law.
• Report back to the President within 60 days, with additional legislative or executive recommendations.

Special emphasis is placed on state actions relating to:

• Greenhouse gas and carbon emission rules
• Environmental, social, and governance (ESG) investment restrictions
• Carbon tax or penalty mechanisms
• Delays in permitting or siting of energy infrastructure

Implications for States and the Energy Industry

Legal experts anticipate a wave of litigation as the federal government asserts broader authority over state-level environmental governance. The move could impact pending lawsuits filed by states against major oil and gas companies over climate damages and reshape regulatory dynamics between federal and state governments.

Supporters of the order argue it will streamline energy permitting and reduce costs for American families by curbing what they view as activist overreach by certain states. Opponents see it as an attack on state sovereignty and a rollback of climate accountability.

While the order reaffirms the federal government’s commitment to traditional energy resources, it raises pressing questions about the future of state-led climate leadership—especially in jurisdictions that have adopted aggressive decarbonization targets independent of federal action.