Some U.S. semiconductor manufacturing facilities will now be exempt from environmental reviews after President Joe Biden signed the Building Chips in America Act into law on Oct. 2.
Without the law, projects from the $52.7 billion CHIPS Act of 2022 could have been forced to undergo additional federal environmental reviews to obtain permits.
The new legislation exempts facilities receiving government subsidies from being reviewed under the National Environmental Policy Act (NEPA) of 1969 and the National Historic Preservation Act.
Supporters of the measure, such as the Semiconductor Industry Association, said that environmental reviews could have slowed or stopped projects already underway.
The U.S. Commerce Department has allocated more than $35 billion for 26 projects, including $6.4 billion in grants under the 2022 law to South Korea’s Samsung to expand chip production in Texas, $8.5 billion to Intel, $6.6 billion to Taiwan Semiconductor Manufacturing Co., and $6.1 billion to Micron Technology for U.S. factories.
The bill allows the Department of Commerce to review semiconductor projects that receive government subsidies but are not exempt from review under NEPA.
It also authorizes a state to assume responsibility for an environmental review under NEPA for semiconductor projects and sets a statute of limitations for certain claims under NEPA.
The White House said it will continue its commitment to ensuring that semiconductor projects meet federal requirements and minimize risks and impacts on workers, public health, and the environment.
The bipartisan legislation was introduced by Sens. Mark Kelly (D-Ariz.) and Ted Cruz (R-Texas) last year with aims of bringing microchip manufacturing back to America and reducing dependence on China for semiconductors critical to national defense.
Opponents argue that this exemption will hinder communities’ ability to address potentially hazardous chemicals released during semiconductor manufacturing processes.
Democrats from various House committees expressed concerns about harm caused by exemptions in a joint letter last month but failed as it passed with a vote of 257-125 in favor at House level.
Environmental groups urged President Biden not sign this bill due its potential impact on public health as they claim toxic “forever chemicals” used extensively in semiconductor manufacturing are linked with cancer and other serious health issues.
