Executive Order Targets State Climate Laws

President Trump has issued an executive order “seeking to protect American energy production from overreach by state governments,” reported the National Energy & Fuels Institute in its newsletter. The executive order refers to states that “target or discriminate against out-of-state energy producers by imposing significant barriers to interstate and international trade,” reported NEFI Energy Online News (NEON).

The executive order challenges laws and policies that it says “undermine Federalism” by projecting the regulatory preferences of a few states onto all states, the April 15 issue of the newsletter noted. The executive order states, “Americans must be permitted to heat their homes, fuel their cars, and have peace of mind – free from policies that make energy more expensive and inevitably degrade quality of life.”

NEFI said regulatory counsel Rick Schweitzer is evaluating the potential implications of the order on state laws and regulations affecting NEFI members.

Here is a portion of President Trump’s executive order, issued on April 8. It has been slightly edited for clarity and length:

My Administration is committed to unleashing American energy, especially through the removal of all illegitimate impediments to the identification, development, siting, production, investment in, or use of domestic energy resources — particularly oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources.  An affordable and reliable domestic energy supply is essential to the national and economic security of the United States, as well as our foreign policy. Simply put, Americans are better off when the United States is energy dominant.
American energy dominance is threatened when State and local governments seek to regulate energy beyond their constitutional or statutory authorities. For example, when States target or discriminate against out-of-State energy producers by imposing significant barriers to interstate and international trade, American energy suffers, and the equality of each State enshrined by the Constitution is undermined. Similarly, when States subject energy producers to arbitrary or excessive fines through retroactive penalties or seek to control energy development, siting, or production activities on Federal land, American energy suffers.
Many States have enacted, or are in the process of enacting, burdensome and ideologically motivated “climate change” or energy policies that threaten American energy dominance and our economic and national security. New York, for example, enacted a “climate change” extortion law that seeks to retroactively impose billions in fines (erroneously labelled “compensatory payments”) on traditional energy producers for their purported past contributions to greenhouse gas emissions not only in New York but also anywhere in the United States and the world. Vermont similarly extorts energy producers for alleged past contributions to greenhouse gas emissions anywhere in the United States or the globe.
Other States have taken different approaches in an effort to dictate national energy policy. California, for example, punishes carbon use by adopting impossible caps on the amount of carbon businesses may use, all but forcing businesses to pay large sums to “trade” carbon credits to meet California’s radical requirements.  Some States delay review of permit applications to produce energy, creating de facto barriers to entry in the energy market. States have also sued energy companies for supposed “climate change” harm under nuisance or other tort regimes that could result in crippling damages.
These State laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living or voting in States with these crippling policies.  These laws and policies also undermine Federalism by projecting the regulatory preferences of a few States into all States. Americans must be permitted to heat their homes, fuel their cars, and have peace of mind — free from policies that make energy more expensive and inevitably degrade quality of life.
These State laws and policies try to dictate interstate and international disputes over air, water, and natural resources; unduly discriminate against out-of-State businesses; contravene the equality of States; and retroactively impose arbitrary and excessive fines without legitimate justification.
These State laws and policies are fundamentally irreconcilable with my Administration’s objective to unleash American energy.  They should not stand. The Attorney General, in consultation with the heads of appropriate executive departments and agencies, shall identify all State and local laws, regulations, causes of action, policies, and practices (collectively, State laws) burdening the identification, development, siting, production, or use of domestic energy resources that are or may be unconstitutional, preempted by Federal law, or otherwise unenforceable. The Attorney General shall prioritize the identification of any such State laws purporting to address “climate change” or involving “environmental, social, and governance” initiatives, “environmental justice,” carbon or “greenhouse gas” emissions, and funds to collect carbon penalties or carbon taxes.
The Attorney General shall expeditiously take all appropriate action to stop the enforcement of State laws and continuation of civil actions…that the Attorney General determines to be illegal.
Within 60 days of the date of this order, the Attorney General shall submit a report to the President, through the Counsel to the President, regarding actions taken… The Attorney General shall also recommend any additional Presidential or legislative action necessary to stop the enforcement of State laws…that the Attorney General determines to be illegal or otherwise fulfill the purpose of this order.