Biden Grants Environmental Review Exemptions to Certain Semiconductor Plants

Biden has decided to exempt certain semiconductor manufacturing facilities from environmental reviews.

Biden Grants Environmental Review Exemptions to Certain Semiconductor Plants
On Wednesday, President Joe Biden signed new legislation aimed at exempting certain U.S. semiconductor manufacturing facilities from federal environmental reviews, specifically those receiving government subsidies.

Previously, projects related to the $52.7 billion CHIPS Act of 2022 would have been required to go through additional federal environmental assessments under the National Environmental Policy Act of 1969 to obtain federal permits.

Supporters argue that these projects have already adhered to federal, state, and local environmental regulations and permitting standards. They contend that without this legislative change, these projects could have faced potentially extensive delays.

Conversely, environmental organizations like the Sierra Club emphasize that the reviews are vital to "keep communities and workers safe from the hazardous contaminants used in the semiconductor industry."

The U.S. Commerce Department has designated over $35 billion for 26 initiatives, including $6.4 billion in grants allocated to South Korea's Samsung for expanding chip production in Texas, $8.5 billion for Intel, $6.6 billion for Taiwan's TSMC to enhance its American manufacturing, and $6.1 billion for Micron Technology to support U.S. factories.

The White House reaffirmed its commitment to ensuring semiconductor projects are developed and operated in compliance with clean water, clean air, endangered species, and other federal regulations, while minimizing risks to workers, public health, and the environment.

The Semiconductor Industry Association had previously cautioned that without the new legislation, environmental reviews could potentially slow down or halt projects already in progress.

The bipartisan bill was co-authored by Democratic Senator Mark Kelly and Republican Senator Ted Cruz.

"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," Kelly stated.

Cruz remarked that the push to streamline permits is "a crucial step in onshoring jobs and making our country less dependent on China for semiconductors critical to national defense."

In contrast, U.S. Representative Zoe Lofgren expressed criticism of the bill, highlighting that California has experienced pollution from past semiconductor and microelectronics manufacturing.

"We should be learning from this legacy and ensuring we don't repeat it," she articulated, describing reviews under the National Environmental Policy Act as "a vitally important tool in this regard."

Allen M Lee contributed to this report for TROIB News