The name of the climate game right now is fast, sustained progress. The world needs this both politically and technologically to effectively fight climate change. Progress was achieved both politically and technologically with the Inflation Reduction Act of 2022 (IRA), which allocated $369 billion to “energy security and climate change,” amounting to the United States’ largest investment in climate action to date.

Carbon offsets allow polluters to pay someone else to reduce, avoid, or remove emissions to counterbalance their own emissions. For some, carbon accounting concerns render offsets a necessary evil to be tightly regulated on the path toward decarbonization. For others, moral and political concerns render offsets a dangerous mistake to be thrown out of the climate law toolbox.

The Inflation Reduction Act (IRA) of 2022 added seven new sections to the Clean Air Act (CAA) and provided the U.S. Environmental Protection Agency (EPA) with substantial new authorities and resources. This Article examines these new amendments and the EPA-related provisions of the IRA, and explains the major implications of this historic legislation.

On October 29, 2021, the U.S. Supreme Court granted certiorari in West Virginia v. Environmental Protection Agency, a petition filed by several states and coal companies attacking the U.S. Environmental Protection Agency's (EPA’s) regulatory authority under the Clean Air Act (CAA). The Court’s holding in this case would determine EPA’s continued ability to use the CAA—including the national ambient air quality standard (NAAQS) program—as a climate change tool.

On the final day of the 2021-2022 term, the U.S. Supreme Court released its decision in West Virginia v. Environmental Protection Agency. The majority (6-3) opinion limited the U.S. Environmental Protection Agency’s (EPA’s) authority to regulate greenhouse gas emissions from power plants under Clean Air Act §111(d), in part by invoking the “major questions doctrine.” The decision has implications for EPA’s authority both to regulate emissions from stationary sources and to regulate greenhouse gases more broadly.

In 2009, when carbon dioxide (CO2) levels were at 387.43 parts per million, the Center for Biological Diversity and 350.org submitted a citizen petition calling on the U.S. Environmental Protection Agency to take steps necessary to institute a national ambient air quality standard (NAAQS) for greenhouse gas (GHG) emissions under §§108-110 of the Clean Air Act (CAA). For 12 years, the petition was simply ignored. Then, the day President Donald Trump left office, outgoing EPA Administrator Andrew Wheeler issued a letter denying the petition.