President Trump announced the signing of a new executive order, “Protecting American Energy from State Overreach,” aimed at shielding energy companies from a series of State laws setting fines for their contributions to greenhouse gas emissions.

The executive order forms part of President Trump’s initiatives to “unleash American energy,” and to reverse the prior Biden administration’s focus on addressing climate change.

The order follows the introduction late last year by New York Governor Kathy Hochul of the Climate Change Superfund Act, which would require fossil fuel companies to pay a share of the investments in infrastructure needed to adapt to climate change in New York State, proportionate to their contribution to greenhouse gas emissions. The Act is anticipated to require fossil fuel companies to pay approximately $75 billion through 2050, or about $3 billion per year. Earlier this year, a coalition of 22 U.S. State Attorneys General filed a lawsuit challenging the legislation, arguing that states should not be able to fine companies for GHG emissions that occur beyond their borders.

Trump’s executive order highlighted the New York legislation, referring to it as “a “climate change” extortion law,” in addition to a similar law in Vermont, and a cap-and-trade system in California, setting a declining emissions cap on companies with a requirement to purchase allowances for emissions exceeding the cap.

The order direct the U.S. Attorney General to identify all state and local laws and regulations “burdening the identification, development, siting, production, or use of domestic energy resources that are or may be unconstitutional,” with priority given to laws “purporting to address “climate change” or involving “environmental, social, and governance” initiatives, “environmental justice,” carbon or “greenhouse gas” emissions,” and to take action to stop the enforcement of the laws.

In the order, Trump stated:

“These State laws and policies are fundamentally irreconcilable with my Administration’s objective to unleash American energy. They should not stand.”