Democratic governors push Congress to kill bill shielding energy companies from climate lawsuits

By Alex Tanzer, 
updated on July 5, 2026

Ten Democratic governors, led by California's Gavin Newsom, Minnesota's Tim Walz, and Illinois' JB Pritzker, are pressing Congress to reject legislation that would protect oil and gas companies from a growing wave of climate-related lawsuits filed by state and local governments across the country.

The governors sent a letter to Congress urging lawmakers to vote down the Stop Climate Shakedowns Act of 2026, a bill first introduced in April by Sen. Ted Cruz of Texas and Rep. Harriet Hageman of Wyoming. If passed, the Act would clear over a dozen lawsuits filed against energy companies by local and state governments, suits that supporters of the bill call a backdoor attempt to impose climate policy through courtrooms rather than legislatures.

A separate letter from more than 20 Democratic attorneys general made a similar plea. Together, the two campaigns amount to a coordinated Democratic effort to preserve the legal tools state officials have used to haul energy producers into court over alleged climate damages. For the governors and AGs, the fight is about accountability. For the bill's backers, it is about stopping a legal shakedown that threatens American energy production, jobs, and consumer prices.

What the governors claim, and what the bill would do

The governors' letter frames the issue in terms of natural disasters and taxpayer costs. As Fox News Digital reported, the letter states:

"Communities all across our nation, in red states and blue states, have suffered and face staggering costs from fires, floods, storms, and heat waves that, according to scientists, are becoming more destructive as a result of the burning of fossil fuels."

The attorneys general, in their own letter, argued that litigation involving climate science "only grows in prevalence and urgency in our courts." They added that removing a certain chapter, the specific reference remains unclear from the letter excerpt, "does not change the scientific reality of climate change."

The Stop Climate Shakedowns Act takes the opposite view. It would effectively preempt the lawsuits by establishing that federal law governs these disputes, not the patchwork of state courts where Democratic officials have filed claims. The bill's sponsors see those suits as an end-run around Congress, an attempt to impose carbon taxes and industry penalties through litigation that voters never approved at the ballot box.

Industry and conservative voices call it 'lawfare'

Energy industry leaders and conservative policy groups did not mince words about the governors' campaign. Jason Isaac, CEO of the American Energy Institute, told Fox News Digital:

"These companies legally produced the energy that heats and cools homes, powers hospitals and fuels the American economy, and now a coalition of activist attorneys general and climate advocacy groups want to make them pay retroactively for doing exactly that."

Isaac described the broader litigation effort as a "coordinated legal campaign to bankrupt lawful American energy producers through junk litigation." That framing cuts to the core of the conservative objection: the companies being sued operated within the law, produced a product the entire economy depends on, and now face retroactive punishment for it.

The pattern is familiar. When progressive policy goals fail in legislatures, the fallback has increasingly become the courtroom. It is the same playbook Gavin Newsom has relied on in California, using the machinery of state government to advance ideological priorities that would struggle to survive a straight democratic vote.

Michael Toth, research director at the Civitas Institute, drew a direct line between the lawsuits and failed legislative efforts to impose European-style climate regulations on the American economy. He told Fox News Digital:

"After many failed attempts to enact EU-style climate measures, activists have turned to suing energy companies in a thinly veiled effort to impose a global carbon tax through the courts."

Toth went further, warning that "this climate lawfare threatens to hijack the federal government's authority over matters that bear directly on our national security." That is not hyperbole. Energy independence is a national security priority, and subjecting the industry to open-ended liability in dozens of state courts could reshape American energy policy without a single congressional vote.

Newsom's track record on fossil fuels

Newsom's involvement in the campaign is no surprise. California sued several major oil companies in 2023, and the case remains tied up in litigation. At the time, Newsom posted on X:

"These companies knew about the catastrophic consequences of fossil fuels. They covered it up. Suppressed scientific data. Spent millions to cast doubts on climate science. Time for them to pay."

Fox News Digital described Newsom as having a "longstanding opposition to the fossil fuel industry", an opposition that sits uneasily with the fact that California remains one of the nation's largest oil-producing states. The state's residents pay some of the highest gasoline prices in the country, and its fuel reserves have sunk to crisis levels as state leaders cling to their climate agenda. The governor who wants to make oil companies "pay" presides over a state where working families already pay dearly at the pump.

That contradiction is the quiet engine of the entire debate. The governors demanding accountability from energy companies are the same governors whose policies have driven up energy costs for their own constituents. They frame the lawsuits as protecting taxpayers, but the real-world effect of hobbling domestic energy production is higher prices for the very people they claim to defend.

The Supreme Court looms

The legal battle extends well beyond Congress. The U.S. Supreme Court will hear a case in its fall term involving Boulder, Colorado, which sued ExxonMobil and Suncor Energy in 2018. Boulder officials alleged the companies contributed to climate change and misled the public about its risks. The case will decide whether federal law preempts localities from seeking relief for alleged climate damages in state courts.

More than 70 House Republicans have urged the Supreme Court to reject the bid to hold major oil companies liable. The outcome could determine whether climate lawsuits survive as a viable legal strategy or get shut down as an overreach of state authority into federal territory.

The stakes are enormous. If the Court sides with Boulder, it would open the door for cities and states across the country to sue energy companies in friendly state courts, a prospect that could generate billions in liability and reshape the economics of American energy production. If the Court rules the other way, the entire lawfare strategy collapses.

The tension between blue-state governments and federal authority has become a recurring theme. Whether it is New York City facing federal enforcement action over sanctuary policies or Colorado's governor bending under federal pressure, the pattern is consistent: Democratic state leaders push the boundaries of their authority, then cry foul when the federal government pushes back.

Who pays the price

O.H. Skinner, executive director of the Alliance for Consumers, framed the issue in terms that cut through the legal jargon. He told Fox News:

"These activists push a woke agenda that hurts consumers by driving up costs and limiting what is on store shelves for consumers. This is the Biden playbook all over again."

Skinner also argued for the need to "push back against climate lawfare, stopping left-wing activists from using their woke lawfare playbook to push unpopular political beliefs through the courts." The word "unpopular" is doing important work in that sentence. If the climate litigation agenda had broad public support, its proponents would not need to route it through courtrooms. They could pass it through Congress.

But they cannot. And so the lawsuits multiply. Over a dozen are currently pending against oil and gas companies, filed by local and state governments. Each one asks a court to do what legislatures have declined to do: impose massive financial penalties on energy producers for the alleged consequences of a product that powers virtually every aspect of modern life.

The governors' letter invokes "red states and blue states" suffering from fires, floods, and storms. But the bill they oppose would not prevent any state from regulating emissions within its own borders. It would simply stop state officials from using state courts to impose de facto national energy policy, a power the Constitution reserves to Congress.

The real question

The Stop Climate Shakedowns Act forces a straightforward choice. Should American energy policy be set by elected legislators accountable to voters, or by trial lawyers and activist attorneys general operating in handpicked courtrooms? The Democratic governors want the courtrooms. The bill's sponsors want Congress.

That is not a close call. The governors' letter talks about taxpayers bearing the costs of pollution. But it is taxpayers, and consumers, who will bear the costs if these lawsuits succeed. Higher energy prices. Lost jobs. A domestic energy industry weakened at the precise moment the country needs it strong.

The governors frame their campaign as a fight for accountability. In practice, it is a fight to punish companies for producing the energy that built the modern economy, retroactively, through litigation, because the votes were never there to do it honestly through legislation.

When elected officials cannot win the argument in the open, they take it to a courtroom. That is not accountability. That is the definition of a shakedown.

About Alex Tanzer

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