To restore energy stability, Congress must assert federal authority

With long-term oil prices in question as tensions in the Middle East rise, America must ensure a stable and predictable environment for domestic energy production. That stability is threatened by a wave of climate lawsuits filed by states seeking to punish American energy producers for lawful, federally regulated activity.

American fossil fuel producers only account for 0.005% of worldwide emissions, yet they are being blamed for global climate change. 

The Trump administration has taken critical actions to protect U.S. economic security from this irrational behavior. In April, the president signed an executive order affirming that energy policy is a matter of national concern, not one to be dictated piecemeal by individual states. Then, in May, the Department of Justice sued four states — New York, Michigan, Vermont, and Hawaii — arguing that their climate liability actions overstep constitutional limits and threaten the cohesion of America’s energy economy. 

Trump’s actions represent a critical first step toward restoring constitutional order in energy policy. However, executive action and litigation are not enough to deliver the legal clarity and investment stability that our economy needs. Only Congress can finish the job. 

These types of state lawsuits raise serious constitutional issues. The Commerce Clause prohibits states from regulating activity that affects interstate commerce, and the Supremacy Clause bars states from overriding federal regulatory frameworks. Yet, in these cases, states are effectively trying to dictate upstream and downstream energy policy by imposing financial penalties on producers operating within the bounds of federal law. 

If allowed to proceed, these lawsuits would fragment the national energy landscape into a patchwork of conflicting legal regimes. Infrastructure developers and investors would face immense uncertainty, unsure whether a project approved at the federal level might still result in liability under state law. That chilling effect is already slowing investment in pipelines, liquefied natural gas export terminals, and other long-term assets vital to meeting U.S. and global demand.

The stakes are only growing. America’s economic resurgence — driven by the artificial intelligence boom, manufacturing investments, and data center expansion — depends on reliable and affordable energy. If we allow politically motivated litigation to destabilize the foundation of that progress, we’ll stall innovation and lose our competitive edge. 

There are geopolitical consequences as well. If U.S. producers are driven out of the market or slowed by lawsuits, state-owned enterprises in countries such as Russia and Iran will gladly step in to fill the gap. These foreign producers often operate with less environmental oversight and greater impunity, undermining both global emissions goals and U.S. strategic interests.

Lawmakers should pass legislation reinforcing the constitutional principle that federally regulated energy producers cannot be held liable under conflicting state tort regimes for emissions tied to lawful activity. This step would not protect polluters, as some activists would argue. It would merely provide legal clarity for companies doing exactly what the law asks of them: powering the U.S. economy under federal oversight. 

Congress has taken similar steps before. During the COVID-19 pandemic, it extended targeted liability protections to essential industries operating in good faith. The same logic applies here. Without such clarity, we risk exposing one of our most critical sectors to legal paralysis at a time when both domestic stability and global events demand maximum energy resilience. 

GLOBAL TURMOIL PROVES URGENCY OF ENERGY INDEPENDENCE

Our energy producers are not the enemy. They make the electricity in our homes, the fuel in our vehicles, and the power behind our industrial capacity possible. They are also key to our geopolitical leverage, providing allies with alternatives to hostile regimes. 

If America wants to lead in energy, technology, trade, and security, Congress must shore up the legal foundations of that leadership. That starts with ensuring that our country’s energy policy stays national and that the rules are written by elected lawmakers, not state attorneys general with a political agenda.

George David Banks is the former chief strategist for Republicans on the House climate committee and special adviser on international energy and environment to President Donald Trump.