Protecting American Energy From State Overreach

The order directs the Attorney General, in consultation with heads of other relevant agencies, to identify all state and local laws, regulations, causes of action, and policies that burden domestic energy development and may be unconstitutional, preempted by federal law, or otherwise unenforceable. The AG is instructed to prioritize laws tied to climate change, environmental justice, carbon or greenhouse gas emissions, ESG initiatives, and funds to collect carbon penalties or taxes. Once identified, the AG must expeditiously take all appropriate action to stop enforcement of any state laws or continuation of civil actions determined to be illegal.

Within 60 days of signing, the AG must submit a report to the President — through the Counsel to the President — on actions taken and must recommend any additional presidential or legislative steps needed. The order does not itself strike down any state law, preempt any statute, or create new federal rights; every concrete impact depends on the AG's subsequent determinations, litigation, or further executive or congressional action.

State and local governments — particularly New York, Vermont, and California, which the order names — whose energy-related climate, carbon, or ESG laws may face federal legal challenge. Energy companies currently subject to state climate liability suits, carbon cap requirements, or retroactive penalty regimes are the primary private-sector beneficiaries.

Energy companies facing state climate liability lawsuits or carbon cap penalties could see the federal government file suit or intervene on their behalf. States with enacted climate laws may face federal legal challenges that pause or invalidate enforcement, disrupting ongoing litigation and regulatory programs affecting energy markets nationwide.

The AG first catalogs targeted state laws — no hard deadline on that identification phase beyond what the 60-day report implies — then deploys "all appropriate action," which could include federal lawsuits, statements of interest in existing state court cases, or petitions for injunctions. The 60-day report doubles as a policy pipeline: the AG must also recommend additional executive or legislative steps, potentially triggering follow-on orders or congressional proposals. No explicit enforcement mechanism within the order compels other agencies to act; the AG is the sole directed actor.