West Virginia, the Inflation Reduction Act, and the Future of Climate Policy
In June 2022, in West Virginia v. Environmental Protection Agency, the U.S. Supreme Court announced that on “major questions” the U.S. Congress must legislate with far more clarity and specificity than previously demanded. The Court held the U.S. Environmental Protection Agency (EPA) may regulate power plant carbon emissions in traditional ways, but the novel approach taken in the Clean Power Plan required clearer authorization than Congress had provided. Six weeks later, Congress enacted the Inflation Reduction Act (IRA). Designed in anticipation of the Court’s new demands, the IRA amends the Clean Air Act to provide a clear and contemporary statement that greenhouse gases are air pollutants and to direct EPA to issue new standards; and it provides large financial incentives to defray the cost of new regulations for power companies and their customers. In May 2023, EPA proposed new standards informed by both West Virginia and the IRA. This Article surveys the evolution of judicial review standards leading up to West Virginia and critically analyzes that decision; explains how the IRA rejuvenates the regulatory path for EPA to act on climate change; and reviews EPA’s new proposed carbon pollution standards for power plants.