(Bloomberg) – The Trump administration sued Michigan and Hawaii seeking to block the states from suing oil companies for damage caused by climate change, less than two months after the U.S. Supreme Court rebuffed a Republican bid to derail such legal efforts.
The U.S. claims the anticipated lawsuits interfere with federal policy on greenhouse gas regulation and are an “extraordinary extraterritorial reach” that goes beyond the states’ authority.
“The United States is facing an energy crisis,” Justice Department lawyers said in the complaints. “Overly restrictive policies and regulation have caused inadequate development of America’s abundant energy resources.”
The suits follow a March ruling by the Supreme Court refusing to allow 19 Republican-led states to block five Democratic states, including California and New Jersey, from seeking billions of dollars from Exxon Mobil Corp., bp Plc, Chevron Corp. and other oil companies.
Energy costs
The Michigan and Hawaii suits would raise energy costs and disrupt the regulation of fossil fuel production, according to the government’s complaints.
“At a time when states should be contributing to a national effort to secure reliable sources of domestic energy, Michigan is choosing to stand in the way,” the suit against that state said.
Michigan Attorney General Dana Nessel announced in May 2024 that her office intends to sue the fossil fuel industry for posing long-terms risks to the environment, economy and livelihoods of people in the state, despite knowing the consequences of climate change. Governor Gretchen Whitmer has been a proponent of clean energy and in 2023 signed legislation that her office said would make Michigan “a national leader in the fight against climate change.”
Spokespeople for the Justice Department and the Michigan attorney general’s office didn’t immediately respond to messages seeking comment on the litigation. The U.S. filing said the state’s lawsuit was “anticipated.” It wasn’t immediately clear whether it had been filed.
The complaint against Hawaii citied a local press report this week that quoted Governor Josh Green saying the state would file a climate change suit today. Court records didn’t show a suit filed before business hours in Hawaii. A spokesperson for the government wasn’t immediately available.
Greenhouse dangers
The Trump administration has moved quickly to scrap the U.S. government’s formal conclusion that greenhouse gases endanger the public, as it pivots away from the Joe Biden-era focus on funding clean energy projects.
In mid-April, President Donald Trump signed an executive order promoting the use of coal to meet energy demand from artificial intelligence data centers. He also ordered the Justice Department to take legal action against states that impose fines on fossil fuel companies for their greenhouse gas emissions.
Despite the federal shift toward fossil fuels, some 20 states have ongoing clean energy goals, according to the Clean Energy States Alliance. Michigan is seeking to be fully powered by carbon-free electricity by 2040.
The cases are U.S. v. Michigan, 25-cv-00496, U.S. District Court, Western District of Michigan, and U.S. v. Hawaii, 25-cv-00179, U.S. District Court, District of Hawaii (Honolulu).
