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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteNo. The Building Chips in America Act of 2023 did not exempt semiconductor companies from environmental laws generally. Enacted as Public Law 118–105 on October 2, 2024, it narrows or streamlines certain federal environmental-review requirements for qualifying semiconductor projects receiving CHIPS-related assistance. Its effects depend on the project and the form or share of federal assistance.
What the law changes
The Act addresses review under the National Environmental Policy Act (NEPA) and specified treatment under the National Historic Preservation Act. For a semiconductor project described in a CHIPS program application, provision of federal financial assistance is not considered a “major Federal action” under NEPA—or an undertaking under the cited National Historic Preservation Act provisions—if at least one of these conditions applies:
- The project activity described in the application began no later than December 31, 2024.
- The federal assistance is a loan or loan guarantee.
- Non-loan federal assistance is no more than 10 percent of the project’s estimated total cost.
These are statutory eligibility conditions, not findings about a project’s environmental effects. The law does not say that a qualifying project has no environmental obligations of any kind; it addresses specified federal review triggered by the provision of CHIPS assistance. Public Law 118–105
What the law does not decide
The statute preserves the possibility that an activity may count as a major federal action for a reason other than its eligibility for CHIPS assistance. In other words, the assistance-related treatment does not settle every NEPA question that could arise from a project.
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The law states: “Nothing in this subsection may be construed as altering whether an activity described in subparagraph (A), (B), or (C) of paragraph (1) is considered to be a major Federal action under NEPA, or an undertaking under division A of subtitle III of title 54, United States Code, for a reason other than that the activity is eligible for Federal financial assistance provided under this section.” Public Law 118–105
Other review provisions in the Act
Categorical exclusions
The Act establishes specified categorical exclusions for covered activities. Among them is qualifying work at or adjacent to an existing site where substantially similar construction, expansion, or modernization has been or is being carried out. That provision is subject to a limit: the facility must not more than double its existing developed acreage or on-site supporting infrastructure. A categorical exclusion is a defined review category; it is not a blanket exemption for every construction or expansion project.
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Lead agency
For certain covered activities that remain major federal actions under NEPA, the Department of Commerce receives the first right to serve as lead agency for the review. That assigns a coordinating role in specified cases; it does not itself establish that review is unnecessary. Public Law 118–105
How project review is handled
NIST says the CHIPS Program Office works with applicants to determine whether a CHIPS project requires NEPA review under the Act. The answer therefore depends on the project’s facts and applicable statutory provisions, rather than a universal waiver for semiconductor companies. NIST: The National Environmental Policy Act (NEPA) and the CHIPS Act
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NIST also reports that CHIPS for America announced a final programmatic environmental assessment and finding of no significant impact on June 28, 2024, for modernization and expansion of existing semiconductor fabrication facilities funded through the CHIPS Incentives Program. That assessment concerns facilities within existing footprints and spans current-generation, mature-node, and leading-edge commercial front-end or back-end fabs. It is a specific programmatic assessment, not evidence that every semiconductor project is covered by the same finding. NIST: The National Environmental Policy Act (NEPA) and the CHIPS Act
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to assess a particular project
- Check the assistance-related conditions. Determine whether the described project activity began by December 31, 2024, whether assistance is a loan or loan guarantee, or whether non-loan assistance is at most 10 percent of estimated total project cost.
- Check for a categorical exclusion. Establish whether the activity fits a specified exclusion, including the conditions for work at or adjacent to an existing site and the limit on doubling developed acreage or supporting infrastructure.
- Consider other federal-action grounds. The assistance-related provision does not resolve whether an activity is a major federal action for a different reason.
- Identify the lead agency if review remains applicable. Commerce has the first right to lead certain covered NEPA reviews, but the lead-agency rule applies only to specified activities.
- Work with the CHIPS Program Office. NIST says the office works with applicants on whether a project requires NEPA review under the Act.
The law is a statute enacted by Congress, not a general administrative decision to waive environmental laws. The House passed S. 2228 on September 23, 2024, by a recorded vote of 257–125; it became Public Law 118–105 on October 2, 2024. Those figures document the legislative process, not the Act’s environmental effects. Congressional Research Service, House Report 118-971
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