H.R. 4629: Protecting American Energy from State Overreach Codification Act

This bill, known as the Protecting American Energy from State Overreach Codification Act, aims to formalize an existing Executive Order, specifically Executive Order 14260. Here’s a breakdown of what the bill would do:

Codification of Executive Order

The bill intends to establish Executive Order 14260 as law. This executive order is focused on preventing states from imposing restrictions or regulations that could affect the extraction, production, and transportation of energy resources in the United States. By codifying this order, the bill would make the provisions of the order enforceable under law rather than simply being an executive directive.

Implications of the Bill

The implications of this bill include:

• State Authority Limitations: States may be limited in their capacity to create laws that could hinder the energy sector, particularly those related to fossil fuels and other energy resources.
• Energy Resource Management: The federal government would emphasize its authority in managing energy resources, potentially overriding state regulations designed to protect environmental concerns or regulate local energy production.
• Legal Enforcement: The bill would provide legal backing to the provisions of the executive order, meaning that any actions taken to enforce or implement these provisions could now be challenged or upheld in a court of law.

Overall Objective

The overall goal of the bill is to support the development and maintenance of domestic energy production by ensuring that state-level regulations do not create barriers to the energy industry's operations.

Potential Impact on Stakeholders

Stakeholders in the energy sector, including companies involved in oil, gas, and renewable energy, may experience changes in how they operate in various states, depending on the level of restrictiveness of existing state regulations. The bill aims to streamline energy development processes at the federal level.

Relevant Companies

• XOM (Exxon Mobil Corporation) - This company could be impacted as it engages heavily in oil and gas exploration and production, potentially benefiting from more lenient state regulations if they are preempted by federal law.
• CVX (Chevron Corporation) - Similar to Exxon, Chevron could see changes to operational regulations within states, possibly facilitating its energy extraction efforts.
• MTDR (Matador Resources Company) - As a natural gas and oil exploration company, changes in state energy regulation could directly impact its operations and growth strategy.