The environmental justice provisions included in the Inflation Reduction Act of 2022 (“IRA”) continue the Biden Administration’s commitment to environmental justice.  The administration has already demonstrated a consistent desire to build environmental justice into its programs through programs such as the Justice40 Initiative.  This initiative directs 40% of the climate change, sustainability, and other investments in environmental and climate protection to communities that the United States has historically marginalized, underserved, or overburdened with pollution.  EPA is also working to address environmental justice by making improvements to the NEPA process and the White House Council on  Environmental Quality is working on an additional set of NEPA Phase 2 rules designed to promote environmental justice.  EPA Administrator Regan has directed all EPA offices to update their adaptation plans to reflect Environmental Justice.

In addition to the work of EPA and the White House, DOJ is also working to promote environmental justice.  DOJ introduced an Environmental Justice Enforcement Strategy in May of this year and plans to prioritize cases where enforcement would achieve significant reductions of environmental harm, public health harm, or injury to natural resources in overburdened and underserved communities.  In order to pursue this goal DOJ is renewing its use of supplemental environmental projects and is expanding the laws it brings environmental enforcement actions under to include statutes such as the Occupational Safety and Health Act, the Consumer Product Safety Act, and the Federal Food, Drug, and Cosmetic Act.

The IRA is the latest step in pursuing the Biden Administration’s environmental justice goals and it continues to push them forward by funding a variety of projects.  The IRA would inject billions of dollars in funding into environmental justice initiatives and, according to Senator Edward Markey (D-Mass.), represent “…the most significant investment in environmental justice and climate action in American history.”  President Biden said that it would make a “real” investment into environmental justice and many environmental groups have rushed to support the bill calling it “an incredible breakthrough.”

If passed the IRA would provide major incentives to produce clean energy and reduce pollution in low-income and disadvantaged communities. The act would provide tax breaks for up to 3.6 gigawatts of solar and wind generating capacity, enough to power millions of homes, in low-income communities.  IRA § 13103. The act also allocates $4.75 billion to states to reduce greenhouse gas emissions, with a focus on disadvantaged communities.  IRA § 60114.  The act would also allocate hundreds of millions of dollars specifically to tribal communities across the U.S.  IRA §§ 80001–04.

Disadvantaged communities would also benefit from over $3 billion in funding for the Federal Highway Administration for programs to improve transportation access, reconnect low-income areas to their neighbors, and reduce the negative impacts of transportation hubs.  IRA § 60501.  The IRA would also provide $3 billion to community non-profit organizations to reduce pollution, address toxic contamination, monitor local pollution levels, and invest in climate resiliency projects.  IRA § 60201.  The Department of Housing and Urban Development would also receive $1 billion to improve the climate resilience and electrification projects in public housing.  IRA § 30002.

Multiple e-NGOs have urged passage of the IRA and highlighted the contributions it will make to environmental justice.  For example, The Sierra Club’s statement identifies multiple areas of environmental justice impact that will stem from passage of the IRA.  Similarly, WE ACT’s statement of support noted, “We acknowledge Members of Congress for returning to the negotiating table and producing an inflation reduction package that has billions of environmental justice funding that can deliver the once-in-a-generation investments needed to make communities of color and areas of low income healthier, cleaner, and economically viable.” 

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Photo of W. Andrew Jack W. Andrew Jack

Andy Jack is a broad gauge corporate and securities lawyer who leads multidisciplinary teams to help clients achieve complex business objectives and solve complex business problems.

Andy often serves in outside general counsel or senior strategist roles working closely on strategic matters with…

Andy Jack is a broad gauge corporate and securities lawyer who leads multidisciplinary teams to help clients achieve complex business objectives and solve complex business problems.

Andy often serves in outside general counsel or senior strategist roles working closely on strategic matters with C-suites and boards. His practice spans mergers and acquisitions, strategic alliances and joint ventures, venture capital, capital markets, securities compliance, corporate governance counseling, crisis management and dispute settlements.

With deep experience in the energy, diversified industrials, transportation, technology, sports and hospitality industries, much of Andy’s recent transactional and advisory work focuses on issues arising from global sustainability trends and ESG considerations, including the energy transition, vehicle electrification and advanced mobility.

Some examples of this trending work include:

  • Energy
    • Structuring and negotiating joint ventures to produce sustainable aviation fuels and to develop and deploy shared resources to respond to offshore well blowouts.
    • Advising on a carbon capture project funded by the U.S. Department of Energy.
    • M&A, finance, capital raising and commercial projects for solar PV panel suppliers.
    • Representing corporate offtakers in virtual power purchase agreements to procure renewable energy in support of wind and solar power projects.
    • Advising on U.S. public policy matters affecting the energy transition.
  • Vehicle Electrification and Advanced Mobility
    • A capital markets transaction for an industry leader in advanced mobility.
    • Multiple venture capital financing rounds for an electric truck manufacturer.
    • Joint venture restructuring and M&A transactions for EV battery manufacturers.
    • Collaboration agreements among vehicle electrification technology providers and OEMs.
    • M&A of advanced vehicle components suppliers and engineering service providers.
  • Other industries
    • Advising on board governance structures to address ESG and Sustainability oversight.
    • Assisting clients in developing voluntary sustainability reports and improving SEC reports and proxy statements to address these topics.
    • Responding to shareholder proposals on various ESG issues.

Andy co-chairs the firm’s multidisciplinary global Energy Industry Group and multidisciplinary Sustainability Solutions Initiative. He also serves as pro bono outside general counsel to the American Council on Renewable Energy and as a member of the World Resources Institute Global Leadership Council. With this background and experience, Andy frequently speaks at industry conferences and publishes on these topics. He also serves as an editor of the firm’s Inside Energy & Environment blog

He is Chambers-ranked in Corporate M&A & Private Equity, where clients report that Andy “gives practical advice with commercially reasonable solutions to problems.” He also has been ranked in Legal 500, both for Energy – Renewable/Alternative and Mergers & Acquisitions.

Photo of Laura Martin Laura Martin

Laura Martin is an associate in the firm’s Washington, DC office. She is a member of the firm’s Patent Litigation and Environmental and Energy Practice Groups, advising clients on a broad range of regulatory and compliance issues, while also representing clients in Hatch-Waxman…

Laura Martin is an associate in the firm’s Washington, DC office. She is a member of the firm’s Patent Litigation and Environmental and Energy Practice Groups, advising clients on a broad range of regulatory and compliance issues, while also representing clients in Hatch-Waxman litigations. In addition, Laura maintains an active pro bono practice.

Photo of Christopher Callery Christopher Callery

Chris Callery is an associate in the firm’s Washington, DC office, focusing on environmental and regulatory matters. He has experience with investigations and regulatory issues under the Clean Air Act and other environmental regimes. He has also provided advice to clients on agency…

Chris Callery is an associate in the firm’s Washington, DC office, focusing on environmental and regulatory matters. He has experience with investigations and regulatory issues under the Clean Air Act and other environmental regimes. He has also provided advice to clients on agency and legislative initiatives related to new laws and regulations for technology standards and business operations requirements, as well as providing advice to clients on ethical systems for high level professionals. Chris has particular expertise in helping clients develop plans to meet new regulatory requirements or bring existing operations into compliance. He has significant knowledge of the automotive sector, particularly on emissions issues, including emerging regulatory trends for both zero emission powertrains and traditional internal combustion engines.