Bad move:
More than two years ago, President Biden signed a law that aimed to ramp up the nation’s production of semiconductors by offering generous subsidies and tax credits to companies. Since then, chip manufacturers have invested billions of dollars into new plants across the country.
But industry groups, along with federal officials, have long warned that lengthy federal environmental reviews could delay manufacturing projects for months or years, which could slow the country’s ability to scale up its chip manufacturing capacity.
In the coming days, Mr. Biden is set to sign a bill that would weaken federal environmental reviews for certain semiconductor manufacturing projects that receive subsidies through the 2022 CHIPS and Science Act. The bill, which has divided Democrats, underscores the challenges facing Mr. Biden as he tries to advance his economic agenda alongside his ambitious climate goals.
The legislation would exempt qualifying chip projects from reviews under the National Environmental Policy Act, or NEPA, which requires federal agencies to assess the potential environmental effects of proposed major federal actions before they can proceed. The House passed the bill last week, and the Senate unanimously passed it in December.
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Proponents say the legislation would help to expedite the construction of chip manufacturing facilities, which would strengthen the U.S. economy and help to reduce the nation’s dependence on other countries for critical chips that can power items as varied as smartphones, cars and weapons systems. They say that projects will still have to comply with various federal, state and local environmental regulations and permitting requirements.
Democrats who oppose the bill, however, say it would allow companies to skirt an important step aimed at reducing potential harms to the environment and workers. They argue that taxpayer-funded projects should be subject to a more holistic federal environmental review process, which would allow for more transparency and community input.
Some Democrats and environmental groups are urging Mr. Biden to reject the bill. Representative Zoe Lofgren of California, the top Democrat on the House science committee, said she hoped Mr. Biden would veto it.
“I think it was a mistake,” she said.
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Ms. Lofgren, along with the top Democrats on the energy and natural resources committees, said in a letter late last month that they were concerned about the semiconductor industry’s “legacy of leaving superfund sites” and history of using chemicals that have been linked to a higher risk of miscarriages among chip workers. “History does not indicate that semiconductor manufacturing should be completely absolved from any NEPA reviews,” they wrote.
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Ms. Lofgren said the chip industry has since made “great strides,” and she supported its further development in the United States. But she said she worried that the bill would result in less transparency about companies’ use of chemicals during the manufacturing process, including PFAS, the so-called forever chemicals.
“Hopefully, there won’t be a time when we look back sorry for this effort,” Ms. Lofgren said.
In a statement, Representative Raúl M. Grijalva, the top Democrat on the Natural Resources Committee, said, “A piece of legislation that allows these facilities to completely bypass NEPA’s critical environmental review and public input processes, while also stripping communities’ right to legally challenge these projects under NEPA, is unconscionable and never, under any circumstances, should have been pushed through the House.”
White House officials say that Mr. Biden, whose administration has already announced more than $30 billion in grant awards for chip companies, will sign the bill.
“President Biden plans to sign this bipartisan legislation, which will allow us to continue our efforts to ensure Americans across the country can benefit from the promise of the Investing in America agenda while protecting communities and the environment,” a White House official said in a statement.
More than two years ago, President Biden signed a law that aimed to ramp up the nation’s production of semiconductors by offering generous subsidies and tax credits to companies. Since then, chip manufacturers have invested billions of dollars into new plants across the country.
But industry groups, along with federal officials, have long warned that lengthy federal environmental reviews could delay manufacturing projects for months or years, which could slow the country’s ability to scale up its chip manufacturing capacity.
In the coming days, Mr. Biden is set to sign a bill that would weaken federal environmental reviews for certain semiconductor manufacturing projects that receive subsidies through the 2022 CHIPS and Science Act. The bill, which has divided Democrats, underscores the challenges facing Mr. Biden as he tries to advance his economic agenda alongside his ambitious climate goals.
The legislation would exempt qualifying chip projects from reviews under the National Environmental Policy Act, or NEPA, which requires federal agencies to assess the potential environmental effects of proposed major federal actions before they can proceed. The House passed the bill last week, and the Senate unanimously passed it in December.
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Proponents say the legislation would help to expedite the construction of chip manufacturing facilities, which would strengthen the U.S. economy and help to reduce the nation’s dependence on other countries for critical chips that can power items as varied as smartphones, cars and weapons systems. They say that projects will still have to comply with various federal, state and local environmental regulations and permitting requirements.
Democrats who oppose the bill, however, say it would allow companies to skirt an important step aimed at reducing potential harms to the environment and workers. They argue that taxpayer-funded projects should be subject to a more holistic federal environmental review process, which would allow for more transparency and community input.
Some Democrats and environmental groups are urging Mr. Biden to reject the bill. Representative Zoe Lofgren of California, the top Democrat on the House science committee, said she hoped Mr. Biden would veto it.
“I think it was a mistake,” she said.
ImageMs. Lofgren, along with the top Democrats on the energy and natural resources committees, said in a letter late last month that they were concerned about the semiconductor industry’s “legacy of leaving superfund sites” and history of using chemicals that have been linked to a higher risk of miscarriages among chip workers. “History does not indicate that semiconductor manufacturing should be completely absolved from any NEPA reviews,” they wrote.
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Ms. Lofgren said the chip industry has since made “great strides,” and she supported its further development in the United States. But she said she worried that the bill would result in less transparency about companies’ use of chemicals during the manufacturing process, including PFAS, the so-called forever chemicals.
“Hopefully, there won’t be a time when we look back sorry for this effort,” Ms. Lofgren said.
In a statement, Representative Raúl M. Grijalva, the top Democrat on the Natural Resources Committee, said, “A piece of legislation that allows these facilities to completely bypass NEPA’s critical environmental review and public input processes, while also stripping communities’ right to legally challenge these projects under NEPA, is unconscionable and never, under any circumstances, should have been pushed through the House.”
White House officials say that Mr. Biden, whose administration has already announced more than $30 billion in grant awards for chip companies, will sign the bill.
“President Biden plans to sign this bipartisan legislation, which will allow us to continue our efforts to ensure Americans across the country can benefit from the promise of the Investing in America agenda while protecting communities and the environment,” a White House official said in a statement.
