Key Points
- Biden signed legislation exempting U.S. semiconductor projects from certain federal environmental reviews.
- The law aims to speed up projects funded by the $52.7 billion CHIPS Act 2022.
- Critics, including environmental groups, argue that reviews under NEPA are necessary to protect workers and communities.
- The bipartisan law seeks to bolster U.S. semiconductor production and reduce dependence on foreign sources.
On Wednesday, President Joe Biden signed new legislation exempting certain U.S. semiconductor manufacturing facilities from federal environmental reviews if they receive government subsidies. This change aims to accelerate projects funded by the $52.7 billion CHIPS Act of 2022, which seeks to boost domestic semiconductor production.
Without the new law, projects benefiting from CHIPS Act funding could have faced prolonged delays due to additional environmental reviews required under the National Environmental Policy Act of 1969 (NEPA). These reviews would have been necessary to secure federal permits despite the projects already adhering to existing federal, state, and local environmental regulations.
Proponents of the law argue that these projects have already complied with sufficient environmental oversight, and additional federal reviews could have delayed vital semiconductor manufacturing for years. U.S. Senators Mark Kelly (D) and Ted Cruz (R), who co-authored the bipartisan bill, emphasized that streamlining the permit process would help strengthen U.S. semiconductor production, create jobs, and reduce reliance on foreign manufacturers, particularly China.
Kelly noted, “By preventing unnecessary delays in the construction of microchip manufacturing facilities, this bill will help maximize our efforts to bring this industry back to America, creating thousands of good-paying jobs and strengthening our supply chains.”
However, environmental groups like the Sierra Club have expressed concerns about the new law. They argue that federal reviews under NEPA safeguard communities and workers from hazardous materials used in the semiconductor industry. Representative Zoe Lofgren (D) also voiced opposition, citing past pollution at semiconductor manufacturing sites in California. She stressed the importance of learning from previous environmental impacts and maintaining stringent reviews to prevent similar issues in the future.
Despite these concerns, the U.S. Commerce Department has already allocated more than $35 billion from the CHIPS Act for 26 projects. Major beneficiaries include South Korea’s Samsung, which received $6.4 billion to expand its Texas chip production; Intel, with $8.5 billion; Taiwan’s TSMC, which was awarded $6.6 billion; and Micron Technology, which received $6.1 billion to develop U.S. factories.
The Biden administration has committed to ensuring that these semiconductor projects will still comply with clean air, clean water, endangered species, and worker safety regulations, even as they move forward without NEPA reviews.
