Trump administration sues Michigan over climate litigation against oil and gas companies

On May 30, the U.S. Department of Justice sued Michigan in the federal court.

The 22-page lawsuit names Gov. Gretchen Whitmer and Attorney General Dana Nessel as defendants, Bloomberg first reported.

While the nation faces an energy crisis, the lawsuit says, Michigan plans to sue energy providers.

“These burdensome and ideologically motivated laws and lawsuits threaten American energy independence and our country’s economic and national security,” U.S. Attorney General Pamela Bondi said in a statement. “The Department of Justice is working to ‘Unleash American Energy’ by stopping these illegitimate impediments to the production of affordable, reliable energy that Americans deserve.”

“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 complaint said. “This Nation’s Constitution and laws do not tolerate this interference.”

In 2024, the Michigan attorney general’s office hired three out-of-state law firms — Sher Edling LLP, DiCello Levitt LLP, and Hausfeld LLP — to sue oil and gas companies, CapCon first reported in October. Nessel claimed that climate change decreases tourism, harms agriculture and depletes Michigan’s tax base. The companies, according to the lawsuit, contribute to climate change. Michigan signed 17 attorneys to act as special assistant attorneys general. Their compensation is contingent upon them achieving a settlement with the defendants.

In May 2024, Nessel announced a lawsuit against unspecified oil and gas companies. Nearly a year later, the lawsuit still hasn’t been filed.

The attorney general’s press secretary, Danny Wimmer, told CapCon in an April 16 email that Nessel’s office plans to commence the lawsuit this term.

“Our office is working with the selected Special Assistant Attorneys General to develop our claims for climate deception by the fossil fuel industry. Attorney General Nessel plans to commence the litigation during this term.”

Michigan’s contract with the firms runs from Sept. 26, 2024, through Sept. 30, 2027, but the state will have a new attorney general in early 2027. The state’s term limit law will prevent Nessel from running for a third term in 2026.

The Justice Department’s lawsuit says that Michigan is interfering with federal law, including the Clean Air Act, or with the federal government’s exclusive authority over interstate and foreign commerce, greenhouse gas regulation and national energy policy.

Fossil fuel extraction on federal lands generated over $13.8 billion for the U.S. treasury in 2024, the lawsuit says.

“The Department issues leases to produce fossil fuels from federal lands and for production in areas of the increase if Michigan and other states seek damages from fossil fuel companies,” the lawsuit explains.

The federal lawsuit conveys how “frivolous lawfare targeting energy producers” hurts consumers, Jason Hayes, director of energy and environmental policy at the Mackinac Center for Public Policy, told CapCon.

“Work by Chris Horner, [a Washington, D.C. attorney who represents the public interest group Government Accountability and Oversight] and Michigan Capitol Confidential has shown how Nessel’s actions are linked with a broader campaign by blue-state attorneys general and well-funded environmental special interests to impose billions in additional costs on America's fossil fuel industry.”

Michigan’s environmental agencies staff employees from climate advocacy groups that restrict reliable energy and increase energy costs via net-zero mandates and mandates requiring 100% renewable energy, CapCon has reported.

“The anti-energy litigation and net-zero policies pushed by Nessel and Gov. Whitmer restrict access to reliable energy and drive up costs for all Michigan residents,” Hayes wrote. “In contrast, the Mackinac Center’s energy and environmental policy work exists to educate Michiganders about the value of affordable, reliable energy sources and to empower citizens to push back against this destructive agenda.”

Michigan Capitol Confidential appears three times in the federal government’s court filing: pages two, four and ten.

The Justice Department’s lawsuit asks the court to declare the state laws unconstitutional and award the federal government attorney fees. The Justice Department also sued Hawaii for a similar lawsuit.