The order addresses various state-level initiatives deemed to burden the US energy sector.

By Betty M. Huber and Austin J. Pierce

On April 8, 2025, President Trump issued an executive order titled “Protecting American Energy From State Overreach” (the Order). The Order asserts that state and local laws and policies covering various aspects of energy policy undermine American energy dominance and, by extension, national security. In response, Order calls for sweeping action by the federal government to combat such localized efforts.

In particular, the Order directs the US Attorney General to:

  • Identify “all State and local laws, regulations, causes of action, policies, and practices” (State Policies) that (a) burden “the identification, development, siting, production, or use of domestic energy resources” and (b) “are or may be unconstitutional, preempted by Federal law, or otherwise unenforceable.”
    • The Order directs the Attorney General to coordinate with the heads of appropriate executive departments and agencies and to prioritize identification of State Policies addressing climate change; carbon or greenhouse gas emissions (including carbon fees/taxes); environmental justice; or “environmental, social, and governance” initiatives.
  • Take action to stop the enforcement or continuation of such State Policies.
  • Within 60 days of the Order, or June 7, 2025, submit a report detailing actions taken under the Order and recommending any additional presidential or legislative action necessary to stop the enforcement of State Policies as identified under the Order.

Key Takeaways for Business

The Order aligns with the administration’s focus on “Unleashing American Energy,” including the forms of energy discussed therein (though the Order does not technically limit the definition of domestic energy resources to those forms). On the same day, President Trump took actions specifically aimed at boosting the country’s coal industry (discussed in our blog post).

How the Attorney General will follow through on the Order remains to be seen. The Department of Justice may intervene in various pending cases, including those in which the Supreme Court has recently declined to visit the issue of preclusion, as well as litigation involving laws that affect sectors beyond energy.

Officials in states that the Order identified, including California and New York, have opposed the Order. Any impacts of the Order will likely continue to play out over a more extended timeline than the initial 60 days.

For more updates on the shifting regulatory and legal landscape, visit our blog The Trump Administration: First 100 Days.