President Donald Trump has issued an executive order titled “Protecting American Energy from State Overreach.” This is a significant escalation in the administration’s efforts to dismantle state-level climate regulations and bolster domestic energy production. 

The order says that it aims to secure “American energy dominance” by removing what the administration describes as unconstitutional and burdensome state policies that impede fossil fuel development and other energy industries. The executive order directs Attorney General Pam Bondi to identify state laws and policies that burden domestic energy production, particularly those addressing climate change, environmental justice, greenhouse gas emissions, or carbon taxes. 

Examples cited in the order include:

• New York and Vermont’s Climate Superfund Laws: These laws require fossil fuel companies to retroactively compensate for their contributions to greenhouse gas emissions globally. The administration has labeled these measures as “extortion”.
• California’s Cap-and-Trade Program: The order criticizes California’s system for imposing restrictive carbon caps and requiring businesses to trade carbon credits, describing it as “radical” and “impossible to comply with”.
• Permit Delays and Climate Litigation: The order highlights delays in reviewing permit applications for energy projects and lawsuits against energy companies for climate damages as examples of state overreach.

The Attorney General is required to halt enforcement of such laws deemed illegal and submit a report within 60 days outlining actions taken and recommending further executive or legislative measures.

Laws like New York and Vermont’s Superfund Laws impose financial accountability on fossil fuel companies for their historical greenhouse gas emissions. The funds collected are allocated to infrastructure projects designed to mitigate climate impacts, such as flood prevention systems, coastal protection, and upgrades to stormwater drainage systems. By assigning costs to polluters based on their emissions contributions, these laws aim to shift the financial burden of climate adaptation from taxpayers to responsible corporations.

Both states require a portion of funds—35% in New York—to be spent on projects benefiting vulnerable populations disproportionately affected by climate change. Marginalized communities are more likely to live in areas prone to climate-related hazards such as flooding, extreme heat, hurricanes, and air pollution. For example, exclusionary zoning practices have historically placed Black, Brown, and Indigenous communities near flood zones or industrial facilities that compound environmental risks.

Critics have raised concerns about the legality of the executive order, arguing that it infringes on states’ constitutional authority to regulate within their borders. Legal experts predict that states targeted by the directive—such as California, New York, and Vermont—will challenge its implementation in court. 

“The federal government cannot unilaterally strip states’ independent constitutional authority,” co-chairs of the U.S. Climate Alliance — New York Governor Kathy Hochul and New Mexico Governor Michelle Lujan Grisham said in a statement. “We are a nation of states — and laws — and we will not be deterred. We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer.”