On April 8, 2025, President Donald Trump issued Executive Order 14260, further signaling the federal government’s commitment to rolling back climate change initiatives across all levels of the government. The Executive Order directs the Attorney General to identify unlawful state and local laws, regulations, and policies that burden the development and use of domestic energy resources (i.e., oil, natural gas, coal, hydropower, geothermal, biofuel, critical mineral, and nuclear energy resources). The Executive Order further directs the Attorney General to focus on state and local laws that address climate change, ESG initiatives, environmental justice, and greenhouse gas emissions. By June 8, 2025, the Attorney General is required to submit a report with recommendations that will be taken to stop the enforcement of the identified state and local laws.

Executive Order 14260 reflects a broader federal strategy to dismantle climate change initiatives not only at the federal level but also by undermining state and local efforts. This coordinated rollback may have significant implications for states, municipalities, and businesses, including:

• Regulatory Uncertainty: States and local governments are likely to challenge the preemption of their climate policies, leading to prolonged litigation and regulatory uncertainty.

• Investment Risks: Companies investing in renewable energy, energy conservation, and sustainability projects may face reduced incentives and an unpredictable regulatory environment.

Kilpatrick is monitoring these developments and will continue to provide updates and implications for businesses navigating this shifting regulatory landscape.