Executive Order on “Protecting American Energy from State Overreach”
On April 8, 2025, President Trump signed Executive Order 14260, titled “Protecting American Energy From State Overreach.” This directive represents a significant policy shift that aims to limit the influence of state and local environmental regulations on national energy development. The administration argues that these state initiatives conflict with federal energy goals and raise costs for American consumers. Below is a detailed look at the key provisions, targets, and implications of this executive action.
Key Provisions of the Executive Order
1. Mandated Review by the Attorney General
The order requires the U.S. Attorney General to conduct a review within 60 days of the signing date—that is, by June 7, 2025. During this period, the Attorney General must identify all state and local laws, regulations, policies, and lawsuits that may:
Burden the development, siting, production, or use of domestic energy resources.
Be unconstitutional, preempted by federal law, or otherwise legally unenforceable.
The order specifically calls for prioritizing reviews of laws and actions related to climate change, ESG (Environmental, Social, and Governance) standards, environmental justice frameworks, and carbon or greenhouse gas emission regulations.
2. Enforcement Actions Against State Laws
Once these laws and policies are identified, the Attorney General is directed to take appropriate legal steps to prevent their enforcement. This could include filing lawsuits or seeking injunctions against states to stop the implementation of regulations that are deemed to conflict with federal authority or national energy interests.
3. Report to the President
By the same June 7 deadline, the Attorney General must submit a formal report to the President. This report must summarize the findings of the review and outline any actions taken. It must also include recommendations for future steps the administration might consider, including additional executive orders or legislative proposals aimed at further restricting the ability of states to regulate energy development.
State Laws in the Crosshairs
Although the executive order does not name all targeted laws explicitly, it clearly references and implies scrutiny of several high-profile state policies. Among them are:
New York and Vermont’s “climate superfund” laws, which impose retroactive financial liability on fossil fuel companies for historical greenhouse gas emissions.
California’s cap-and-trade program, which is characterized in the order as imposing punitive costs on carbon usage.
Climate-related lawsuits filed by states and municipalities, which seek to hold energy companies financially accountable for their contributions to climate change.
These policies, according to the order, create a patchwork of regulations that interfere with the federal government's ability to implement a unified national energy strategy.
Important Dates and Deadlines
Here are the key milestones outlined in the executive order:
Event
Deadline
Executive Order Signed
April 8, 2025
Attorney General’s Review Deadline
June 7, 2025
Report to the President Due
June 7, 2025
The Attorney General’s report will likely serve as a foundational document for any further federal action on this issue. However, it is unclear if that document will be publicized.
Reactions from State Leaders
State officials in New York, California, and Vermont have publicly criticized the executive order, describing it as an overreach that threatens states’ rights to enact environmental protections tailored to local needs. These states have indicated that they will defend their laws in court if necessary.
California – Governor Gavin Newsom
On April 9, 2025, Governor Newsom responded sharply to the executive order, emphasizing California’s commitment to combating pollution: “California’s efforts to cut harmful pollution won’t be derailed by a glorified press release masquerading as an executive order.” Governor of California
On April 15, Governor Newsom and Legislative Leaders responded sharply to the executive order “California must continue to lead on reducing pollution and ensuring our climate dollars benefit all residents. That’s why we’re doubling down on cap‑and‑trade: one of our most effective tools to cut emissions and create good‑paying jobs.” Governor Newsom
New York – Governor Kathy Hochul
In a statement on April 8, 2025, Governor Hochul criticized the federal action as overreach on constitutional grounds and vowed to defend New York’s clean-energy initiatives: “As Governor, I will not allow this federal overreach to stand. I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future.” Governor Kathy Hochul
New York – U.S. Climate Alliance Co-Chairs (including Gov. Hochul)
Also on April 8, in a joint statement with New Mexico Governor Lujan Grisham, Hochul affirmed states’ constitutional powers: “The federal government cannot unilaterally strip states’ independent constitutional authority. We are a nation of states — and laws — and we will not be deterred.” US Climate Alliance
What Comes Next?
The most immediate development to watch is the release of the Attorney General’s report, which is due by June 7, 2025. This report will identify specific state actions deemed problematic under the order and will offer recommendations for what the federal government should do in response. The administration has left open the possibility of filing lawsuits or seeking congressional action to further limit state regulatory authority.
It is also likely that legal challenges will be filed by affected states, creating a high-stakes constitutional debate over the limits of federal preemption and the right of states to regulate environmental issues within their borders.