The Building Chips in America Act, signed into law by President Joe Biden on Oct. 2, will exempt certain U.S. semiconductor manufacturing facilities from environmental reviews. Without this law, projects funded by the $52.7 billion CHIPS Act of 2022 could have been subjected to additional federal environmental reviews to obtain permits. The legislation excludes facilities that receive government subsidies from being reviewed under the National Environmental Policy Act (NEPA) of 1969 and the National Historic Preservation Act. Supporters of the measure, including the Semiconductor Industry Association, argued that environmental reviews could have impeded projects that were already in progress.
The U.S. Commerce Department has allocated over $35 billion for 26 projects, with significant grants going to companies like Samsung, Intel, Taiwan Semiconductor Manufacturing Co., and Micron Technology for expanding chip production in the United States. The bill, introduced to the president on Sept. 24, designates the Department of Commerce as the lead agency for reviewing semiconductor projects that receive government subsidies but are not exempt from NEPA review.
The legislation also allows a state to take on the responsibility of conducting an environmental review under NEPA for semiconductor projects and establishes a statute of limitations for certain claims under NEPA. The White House emphasized its commitment to ensuring that semiconductor projects adhere to federal regulations to protect the environment, workers, and public health.
Co-authored by Senators Mark Kelly and Ted Cruz, the bipartisan bill aims to prevent unnecessary delays in the construction of microchip manufacturing facilities to boost job creation and domestic supply chains. However, opponents of the legislation raise concerns that the exemption could limit communities’ ability to address potential environmental hazards associated with semiconductor manufacturing.
Environmental and public health groups, such as the Sierra Club, have criticized the legislation for potentially overlooking the impact of toxic chemicals used in semiconductor production on public health and the environment. Despite opposition, the bill passed the House with a vote of 257-125. The Sierra Club and other groups urged President Biden to veto the bill, warning of the harmful consequences of removing federal oversight on semiconductor manufacturing.
In conclusion, the Building Chips in America Act has sparked debates between supporters who believe it will accelerate semiconductor production and opponents who fear its environmental implications. The future impact of this legislation on the semiconductor industry and the environment remains a topic of contention. Please rephrase this sentence.
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