Biden Signs Legislation Exempting Semiconductor Factories From Environmental Reviews

President Joe Biden has signed a new law that exempts certain U.S. semiconductor manufacturing facilities from federal environmental reviews, aiming to expedite projects funded by the $52.7 billion CHIPS Act of 2022. This move has sparked a debate over balancing economic growth with environmental protection.

Key Takeaways

• The new legislation allows semiconductor projects receiving federal subsidies to bypass additional environmental reviews.

• Proponents argue this will accelerate the construction of critical semiconductor facilities, creating jobs and strengthening supply chains.

• Critics, including environmental groups, warn that this could undermine safeguards against hazardous waste and pollution.

Background of The CHIPS Act

The CHIPS Act, signed into law in 2022, was designed to bolster domestic semiconductor production and reduce reliance on foreign suppliers. The act allocated $52.7 billion to support the construction and expansion of semiconductor manufacturing facilities across the United States.

Details of The New Legislation

The recently signed legislation specifically exempts semiconductor manufacturing facilities that receive federal funding from undergoing additional federal environmental reviews under the National Environmental Policy Act (NEPA). This change is intended to prevent unnecessary delays that could stifle the construction of microchip facilities.

• Federal Funding Allocations: The U.S. Commerce Department has already allocated over $35 billion for 26 semiconductor projects, including significant investments for major companies:Samsung: $6.4 billion for expansion in TexasIntel: $8.5 billionTSMC: $6.6 billion for U.S. expansionMicron Technology: $6.1 billion for domestic factories

Support and Opposition

The legislation received bipartisan support, co-authored by Democratic Senator Mark Kelly and Republican Senator Ted Cruz. They argue that the bill will help maximize efforts to bring semiconductor manufacturing back to America, creating thousands of jobs and reducing dependence on foreign suppliers, particularly China.

However, the bill has faced criticism from environmental advocates and some Democratic lawmakers. Critics argue that the exemption could allow companies to sidestep essential environmental protections, potentially leading to pollution and health risks for surrounding communities. U.S. Representative Zoe Lofgren expressed concerns about the legacy of pollution from past semiconductor manufacturing sites, emphasizing the importance of NEPA reviews in preventing future contamination.

The Broader Implications

The White House has assured that while the new law streamlines the permitting process, semiconductor projects will still be required to comply with other federal environmental laws, such as the Clean Air Act. The administration emphasizes its commitment to ensuring that these projects are built and operated in a manner that minimizes risks to public health and the environment.

As the semiconductor industry continues to grow, the balance between fostering economic development and protecting environmental standards will remain a critical issue. The outcome of this legislation could set a precedent for future infrastructure projects across various sectors, highlighting the ongoing tension between economic growth and environmental stewardship.

Sources

• Biden exempts some semiconductor factories from environmental reviews | Reuters, Reuters.

• Biden Speeds Up Environmental Reviews For Some Semiconductor Projects, Forbes.

• Biden signs law exempting semiconductor plants from environmental reviews, The Hill.

• President Biden signs legislation to exempt some semicon factories from environmental regulations – Firstpost, Firstpost.

• Biden exempts some semiconductor factories from environmental reviews - CGTN, CGTN.