Opinion editor's note: Editorials represent the opinions of the Star Tribune Editorial Board, which operates independently from the newsroom.
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Given the intensity of the news cycle, the Inflation Reduction Act might seem like old news.
But the bill, which passed the U.S. House on Friday and is headed to President Joe Biden for his signature, is significant — especially for climate change mitigation, health care cost containment, deficit reduction and other vital concerns.
The legislation's climate change provisions represent the nation's most significant investment in addressing this existential threat. And while it's not a line-item expenditure, there's an additional profound benefit: It reestablishes the U.S. as the key global leader in tackling climate change, which is crucial in convincing other countries to live up to their pledged efforts.
These "nationally determined commitments," or NDCs, are what comprise comprehensive climate change agreements like the Paris accord, Jessica Hellmann, director of the University of Minnesota's Institute on the Environment, told an editorial writer in an e-mail exchange. "So it makes sense that we create a suite of programs, incentives, and regulations that shift our economy and curtail our emissions."
The IRA intends to do just that, incentivizing the transition from fossil fuels to renewable resources for businesses and consumers with $369 billion over 10 years in programs including electric-vehicle and clean-energy tax breaks. A fee on fossil-fuel companies for excessive methane emissions is also included, and $60 billion is slated for environmental justice concerns.
Overall, the bill and additional efforts by other national, state and local government entities could cut greenhouse gases by 40% by the end of the decade.