Federal Energy Policy Shifts: Executive Orders Emphasize Grid Security, Traditional Fuels, and Limiting State Control

On April 8, 2025, President Donald J. Trump signed multiple executive orders that mark a significant shift in national energy policy. The orders center on strengthening the reliability of the electric grid, promoting domestic coal and fossil fuel production, and curbing state-level climate regulations viewed as barriers to energy development.

Grid Stability Takes Priority

The first executive order focuses on the reliability and security of the U.S. electric grid. It addresses the strain caused by increased demand, particularly from the growth of artificial intelligence infrastructure and manufacturing. The order calls on the Department of Energy to expedite emergency processes under Section 202(c) of the Federal Power Act, develop a standard method for evaluating grid reserve margins, and ensure that critical generators are not retired or converted prematurely.

This directive reflects a federal focus on dispatchable power resources, including coal and natural gas, to maintain stable electricity supply.

Federal Preemption Over State Energy Policies

Another order targets state policies that penalize fossil fuel use or impose retroactive environmental fines. It instructs the U.S. Attorney General to review and potentially challenge laws in states such as New York, Vermont, and California, emphasizing the federal government’s role in regulating interstate and federal energy matters.

The order frames these state actions as harmful to national unity and energy affordability.

Coal Industry Reaffirmed as National Priority

In a separate directive, coal is designated as a mineral of national importance, and federal agencies are instructed to increase leasing of coal-rich lands, promote U.S. coal exports, support infrastructure to power AI data centers with coal, and invest in coal-based technologies such as carbon fiber and battery materials.

This reclassification of coal aligns with the administration's strategy to elevate traditional energy sources.

Emissions Rule Delay

A related proclamation temporarily suspends new EPA mercury and air toxics rules for certain coal-fired plants. The justification: existing technology is not commercially feasible within the current compliance timeline. The two-year exemption aims to maintain grid reliability and prevent job losses.

For a deeper legal breakdown of these directives, see our analysis: Breaking Down the Trump Administration’s Executive Orders on Environmental Policy.

Summary and Implications

Together, these executive actions represent a sweeping federal strategy to reassert control over energy policy at a national level, reinforce the use of traditional energy resources, and directly challenge state-level environmental regulations that conflict with federal priorities. The emphasis on grid stability, energy affordability, and reliability reflects growing concerns about meeting rising electricity demand, especially as AI technologies and domestic manufacturing drive energy consumption upward.

By designating coal as a critical mineral, the administration is signaling long-term commitment to the revitalization of the U.S. coal industry, not only for power generation but also for emerging technologies in materials science and infrastructure. The orders also provide regulatory relief aimed at extending the operational life of coal plants that were at risk of closure under EPA rules.

From a legal perspective, the call for the U.S. Attorney General to investigate and block state policies viewed as unconstitutional or obstructive may trigger significant legal battles over federalism and environmental law. This sets the stage for increased litigation between federal agencies and states that have pursued aggressive climate agendas.

For businesses in the energy, infrastructure, and heavy industrial sectors, these orders provide new incentives and regulatory pathways to expand or restructure projects previously limited by environmental compliance costs or state-level restrictions. At the same time, companies must closely monitor how legal challenges and administrative actions evolve in the months ahead.

At MZLS, our legal team remains at the forefront of federal energy and regulatory law. We are actively advising clients on how to navigate this shifting landscape, secure strategic advantages under the new orders, and maintain compliance with both federal and evolving state requirements.

Businesses in energy, infrastructure, and heavy industry should review the impact of these changes.

At MZLS, our team helps clients understand and adapt to evolving federal energy directives. For strategic legal guidance on how these orders may affect your operations, contact us.