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Technology


BIDEN BREAKS WITH ENVIRONMENTALISTS, HOUSE DEMS ON CHIP BILL

The White House’s environmental and manufacturing goals are now on a collision
course, after Congress voted and Biden approved the exemption of new microchip
factories from extra environmental reviews.



President Joe Biden speaks after touring the Taiwan Semiconductor Manufacturing
Company facility in Phoenix, on Dec. 6, 2022. | Ross D. Franklin/AP

By Brendan Bordelon, Christine Mui and Kelsey Brugger

09/24/2024 05:35 PM EDT

Updated: 09/25/2024 01:25 PM EDT

 * 
 * 

 * * Link Copied
 * * 
   * 
   * 

Breaking with environmental groups and despite objections from House Democratic
leaders, President Joe Biden plans to sign a new bill that weakens some
environmental requirements on federally funded microchip projects.

In a tense vote that sparked a bitter back-and-forth Monday night, the Building
Chips in America Act passed the House over strident objections from key
Democratic committee leaders, with Democratic defectors linking arms with
Republicans.



In a statement provided exclusively to POLITICO late on Tuesday, a White House
official said Biden will sign the bill, 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.”



Biden’s decision could widen existing fissures between the Democratic Party’s
pro-business and environmental wings. And his approval risks angering
environmentalists, which see the bill as a giveaway to the chip industry and a
potential threat to the environment.

Monday’s House vote marks a big win for the microchip lobby, which for nearly
two years has been trying to dilute the environmental-impact rules attached to
the Biden administration’s multibillion-dollar funding program for microchip
plants.

The 2022 CHIPS and Science Act provided $39 billion in subsidies to American
chip manufacturing projects, an effort to boost U.S. job growth and industrial
capacity in a growing global industry while protecting against China. But
recipients of that money are required to complete federal environmental reviews
under the decades-old National Environmental Policy Act before they can receive
funding — a first for an industry unaccustomed to the extra environmental red
tape accompanying federal subsidies.

Soon after the ink was dry on the law, industry lobbyists began pressuring
Capitol Hill to exempt some projects from NEPA and shorten the litigation
timeline for others. They warned that without those changes, construction of
chip facilities — and by extension, the high-tech industrial renaissance
promised by Biden — could be delayed for months or years.

The result was the Building Chips in America Act, a bill designed to lift or
lessen many of NEPA’s requirements on new CHIPS projects. The Senate unanimously
passed it in December, and on Monday, GOP House leadership abruptly forced a
suspension vote on the bill, clearing the two-thirds threshold with help from
Democrats — including many whose states are slated for major chip manufacturing
projects.

But several Democratic lawmakers on key committees, including House Energy and
Commerce ranking member Frank Pallone (D-N.J.), spoke out against the bill on
the House floor. And earlier Tuesday, at least one top Democrat — Rep. Zoe
Lofgren (D-Calif.), ranking member on the House Science Committee — called on
Biden to reject the legislation. “He should veto it,” she told POLITICO in a
statement Tuesday.

And the Sierra Club and other groups — including the more than two dozen
environmental organizations who sent a letter on Monday urging House Democrats
to oppose the bill — warned Biden that if he signs it into law, it would hurt
both the environment and the administration’s own climate agenda.




“President Biden should veto this. I expect he will veto it,” Harry Manin,
Sierra Club’s deputy legislative director of industrial policy, told POLITICO on
Tuesday.

But Biden also faced pressure from the microchip lobby, which has long enjoyed
significant pull at the White House. “It’s our expectation that the president
will sign the bill into law,” said one chip industry lobbyist earlier Tuesday,
who requested anonymity due to the issue’s sensitivity.

The lobbyist highlighted the national security goals that drove 2022’s CHIPS and
Science Act, and warned that environmental reviews could delay construction of
chip facilities for months or years — a risk critics of the bill say has not
panned out.

A domestic tech-manufacturing resurgence “is a legacy item, and [Biden]
understands that,” the lobbyist said.

The Commerce Department did not respond to questions earlier on Tuesday about
whether Biden should sign the bill and how CHIPS projects would be impacted if
it becomes law. But in response to the House’s passage, a Commerce spokesperson
said Commerce Secretary Gina Raimondo is “committed to continue working with
stakeholders to ensure CHIPS for America projects preserve their safety and
environmental commitments.”

The Building Chips in America Act would waive NEPA reviews for chip projects if
they start construction before 2025; take only loans (rather than grants) from
the government; or receive a federal subsidy comprising less than 10 percent of
the total project cost.

The bill would also make the Commerce Department the de facto lead agency for
conducting the reviews — a role it has already taken on for some of the biggest
beneficiaries of CHIPS Act grants.

That change also irks environmentalists, who have criticized Commerce for being
too hasty in suggesting there are no significant environmental impacts for three
project sites — which would shield the companies from soliciting additional
public input and going through a more extensive NEPA process.

Some environmentalists believe that dropping environmental protections could
turn the CHIPS projects now multiplying across America into a stain on Biden’s
legacy. Judith Barish, coordinator of CHIPS Communities United, a coalition of
labor and environmental groups, said the bill passed on Monday undermines a
range of administration goals — including those around climate, public health
and its Justice40 commitment.

“It’s a missed opportunity,” Barish said. “We don’t want to see the legacy of
the CHIPS and Science Act being workers getting sick because of toxic chemicals
on the job, or children in nearby schools and communities getting sick because
of air pollution, or residents with poisoned wells and aquifers.”

In a statement, Semiconductor Industry Association spokesperson Dan Rosso said
the chip sector “is a global leader in promoting environmental sustainability
and worker safety, and the industry is committed to continuous improvement of
our processes.” Rosso said modern chip facilities “feature advanced fabrication
techniques and stringent safety standards and emissions controls.

In a brief interview Tuesday, Sen. Mark Kelly (D-Ariz.), who coauthored the
legislation with Sen. Ted Cruz (R-Texas), also downplayed environmentalists’
concerns. “I’ve heard secondhand from folks that had those issues,” Kelly said.
He called the bill’s NEPA exemptions “very narrow.”

Brett Hartl, government affairs director for the Center for Biological
Diversity, bemoaned the possible follow-on effects of the law.

This “only encourages other industries to use the same tactics,” he said.

But even before the White House’s statement, he seemed resigned to a Biden
signature.“I think it’s a done deal, given the votes and sort of how it played
out,” Hartl told POLITICO earlier on Tuesday.

Emma Dumain contributed to this report.

CLARIFICATION: This story was clarified to better reflect Sen. Kelly’s role in
authoring the Building Chips in America Act.


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 * Filed under:
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 * Joe Biden




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 * DEVELOP AND IMPROVE SERVICES 547 PARTNERS CAN USE THIS PURPOSE
   
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   Information about your activity on this service, such as your interaction
   with ads or content, can be very helpful to improve products and services and
   to build new products and services based on user interactions, the type of
   audience, etc. This specific purpose does not include the development or
   improvement of user profiles and identifiers.
   
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 * USE LIMITED DATA TO SELECT CONTENT 134 PARTNERS CAN USE THIS PURPOSE
   
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   Content presented to you on this service can be based on limited data, such
   as the website or app you are using, your non-precise location, your device
   type, or which content you are (or have been) interacting with (for example,
   to limit the number of times a video or an article is presented to you).
   
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USE PRECISE GEOLOCATION DATA 260 PARTNERS CAN USE THIS PURPOSE

Use precise geolocation data


With your acceptance, your precise location (within a radius of less than 500
metres) may be used in support of the purposes explained in this notice.

List of IAB Vendors‎

ACTIVELY SCAN DEVICE CHARACTERISTICS FOR IDENTIFICATION 125 PARTNERS CAN USE
THIS PURPOSE

Actively scan device characteristics for identification


With your acceptance, certain characteristics specific to your device might be
requested and used to distinguish it from other devices (such as the installed
fonts or plugins, the resolution of your screen) in support of the purposes
explained in this notice.

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ENSURE SECURITY, PREVENT AND DETECT FRAUD, AND FIX ERRORS 518 PARTNERS CAN USE
THIS PURPOSE

Always Active

Your data can be used to monitor for and prevent unusual and possibly fraudulent
activity (for example, regarding advertising, ad clicks by bots), and ensure
systems and processes work properly and securely. It can also be used to correct
any problems you, the publisher or the advertiser may encounter in the delivery
of content and ads and in your interaction with them.

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DELIVER AND PRESENT ADVERTISING AND CONTENT 520 PARTNERS CAN USE THIS PURPOSE

Always Active

Certain information (like an IP address or device capabilities) is used to
ensure the technical compatibility of the content or advertising, and to
facilitate the transmission of the content or ad to your device.

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MATCH AND COMBINE DATA FROM OTHER DATA SOURCES 366 PARTNERS CAN USE THIS PURPOSE

Always Active

Information about your activity on this service may be matched and combined with
other information relating to you and originating from various sources (for
instance your activity on a separate online service, your use of a loyalty card
in-store, or your answers to a survey), in support of the purposes explained in
this notice.

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LINK DIFFERENT DEVICES 331 PARTNERS CAN USE THIS PURPOSE

Always Active

In support of the purposes explained in this notice, your device might be
considered as likely linked to other devices that belong to you or your
household (for instance because you are logged in to the same service on both
your phone and your computer, or because you may use the same Internet
connection on both devices).

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IDENTIFY DEVICES BASED ON INFORMATION TRANSMITTED AUTOMATICALLY 498 PARTNERS CAN
USE THIS PURPOSE

Always Active

Your device might be distinguished from other devices based on information it
automatically sends when accessing the Internet (for instance, the IP address of
your Internet connection or the type of browser you are using) in support of the
purposes exposed in this notice.

List of IAB Vendors‎
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