The US House approves a bill exempting some chipmaking projects from federal permitting requirements after Senate approval in 2023, sending it to Biden's desk
The measure had already cleared the Senate and, after reaching the president, related coverage records its enactment for certain subsidized US chip facilities. That makes permitting treatment part of the practical implementation of the broader chip-manufacturing push.
First-order effects
Eligible chipmaking projects can avoid specified federal permitting requirements, reducing an administrative constraint on facilities covered by the legislation.
The House, Senate, and Biden administration complete a legislative route for aligning project approvals more closely with the subsidy program.
Second-order effects
Applicants for federal chip support gain another reason to structure projects around qualifying US facilities, while projects outside the exemption remain subject to the ordinary permitting path.
US semiconductor policy is moving from financial incentives alone toward a package that also changes project-approval rules, increasing the state's role in shaping where manufacturing capacity is built.
If exemptions become a recurring tool, the trade-off between faster strategic-industrial construction and federal environmental review will become a more durable policy fault line.
The trend: The bill is one data point in a broader shift toward combining chip subsidies with regulatory changes to accelerate domestic manufacturing build-outs.
This is a great bill. It helps us better compete with China. It means taxpayer dollars get spent more efficiently. It means more good paying jobs for American workers. It means faster technology development for businesses and consumers. A good win today! 12/
The CHIPS Act allows us to supercharge our chip manufacturing, and compete with China. But we also need commonsense permitting reform. Our bipartisan bill the Building Chips in America Act will do just that, and is up for a vote today. Let's get it done! https://www.semiconductor…
So today the House passed S. 2228 by a vote 257-125 (it needed 2/3). It says that those federal subsidies that I mentioned back at the beginning no longer, by themselves, make these fabs “a major federal action” and so don't require the NEPA review. 9/ https://x.com/...
America's infrastructure projects are dramatically hindered by excessive regulation. However, rather than reevaluate the previous regulations, gov't officials are increasingly “waving” them when desired. At least we now all agree on the problem. https://www.bloomberg.com/...
🚨🚨257-125 the NEPA reform for CHIPS bill passes the House! Already passed the Senate, now goes to the President to sign! Great bipartisan win! https://x.com/... [image]
My Building Chips in America Act passed the House and is heading to be signed into law! It's going to streamline permitting for microchip manufacturing projects while protecting clean air and water. We're maximizing this opportunity to boost America's manufacturing comeback.
Exciting news from the chips world! @SenMarkKelly's bill to speed up permitting for Chips Act facilities is on the House's suspension calendar, meaning it could get a vote in a matter of hours. The Building Chips in America Act will create high-quality jobs and strengthen the
In 2022, through the CHIPS and Science Act, Congress allocated around $40 billion in subsidies for new semiconductor manufacturing facilities known as fabs. Semiconductors are arguably the world's most important technology and Congress wants them made HERE. 2/ @crmiller1 [image]
Because of those subsidies, those fabs would be considered “major federal action” and so would be subject to NEPA. For those of you who aren't deep in the weeds of permitting, NEPA is the National Environmental Policy Act and was created in 1969. 3/
EIS sounds like brief, easy paperwork; they are not! They average 4.5 years and construction can't start until they're done. Between the scoping process, public comment, and potential lawsuits, an EIS can be complex, time-consuming, and burdensome. 6/ https://ifp.org/...
It was meant to address rising pollution. NEPA's goals were laudable but it's now more than a half century old and is showing its age. There are a lot of ways in which NEPA is getting in the way of green energy today for example. 4/
But let me not get off on that tangent so I can stick to semiconductors. Semiconductor fabs hitting that “major federal action” designation above mean that, under NEPA, they have to undergo what's known as an Environmental Impact Statement (EIS). 5/
Today, the House passed the “Building Chips in America Act” sponsored by @SenMarkKelly and @SenTedCruz in the Senate last year. It's a really cool permitting reform bill related to semiconductors. Here's a quick explanation of what it does and why it matters. 1/ @noahpinion