By Brenda Rodriguez
It’s a sad day for workers at semiconductor factories and the neighbors who live nearby. A bill introduced by Sen. Ted Cruz of Texas, “Building Chips In America,” excludes most semiconductor companies applying for CHIPS Act funding from environmental review under the National Environmental Policy Act (NEPA). S. 2228 passed the House of Representatives yesterday, after passing in the Senate last December, and now heads to Pres. Biden’s desk for his signature.
The new law is a big step backwards.
NEPA review is one of the few levers communities have to assess the impact of massive semiconductor companies on drinking water, air quality, climate change, and public health. With the passage of this law, Congress has rolled back bedrock environmental protections and put the health of workers, their families, and entire communities at risk.
It’s no secret that chip factories pose a threat to the environment
The semiconductor industry has a shockingly poor track record as an environmental steward. Since its birth in Silicon Valley in the 1960s, the industry has often succeeded at the expense of public health and natural resources.
For example:
- Water use: Microchip manufacturing uses vast amounts of water, with individual facilities demanding over 17 million gallons a day, which is particularly problematic given their locations in some of the most drought-stricken areas of the U.S.
- Climate impact: The industry’s already massive electricity consumption is expected to more than double by 2030, using more power and releasing more greenhouse gases than some countries. The four largest CHIPS Act recipients will drive a major surge in fossil fuel demand, equivalent to twice the climate impact of the city of Seattle.
- Toxics: A semiconductor factory is a chemical factory, utilizing hundreds of chemicals including many known carcinogens, mutagens, and reproductive toxins. This is a potential threat both to workers and to neighbors. Santa Clara County, California, birthplace of the semiconductor industry, has 23 EPA Superfund sites, more than any other county in the U.S. Today, history is repeating itself. Just a few years ago, Samsung’s semiconductor facility in Austin, Texas spilled hundreds of thousands of gallons of toxic wastewater into a local creek, turning the water orange and killing plants and animals.
- Air pollution: Chip-making uses hazardous gases, such as arsine, phosphine, hydrogen chloride, and dichlorosilane. Cities in Silicon Valley passed Toxic Gas Ordinances that require double containment of all toxic gases and strict monitoring to detect any releases, but other communities around the country may not be ready for toxic emissions. In recent years, Intel in Oregon has accidentally turned off its air pollution control equipment for two months and underreported its CO2 emissions.
- PFAS: Semiconductor manufacture depends on the toxic forever chemicals known as PFAS. Wastewater testing has found high concentrations of PFAS in the effluent from chip factories, and no federal rules prohibit releasing the chemicals into air or water.
Given this history, a robust environmental review is important to address the scale of the harm and take steps to stop environmental damage.
We’ve heard a lot of belly-aching from corporations complaining that NEPA review was slowing them down and hurting global competitiveness. But the evidence was never on their side. A recent study found that building a chip fab in our country takes about 24 months, compared to the global average of 22 months, not a massive source of delay.
The Department of Commerce recently acknowledged that NEPA review was not slowing down their grant-making. Secretary Gina Raimondo testified to the House Energy and Commerce committee: “When I was here six months ago, I was highly concerned about NEPA and the chips factories,” but now, “I can report to you today that we’ve made a ton of progress on that, and we are on track to complete the environmental review for all these companies before we issue the award.”
A lost opportunity to make semiconductor manufacturing clean and green
The saddest thing is what could have been. The CHIPS and Science Act offers a once-in-a-generation opportunity not just to reshore the semiconductor manufacturing industry but also to improve product stewardship throughout the semiconductor supply chain, strengthen chemicals management, and promote sustainable production in the global supply chain.
As we bring chip-making back to the United States, this is our chance to get it right by ensuring rigorous standards for using hazardous chemicals, minimizing climate impacts, and fostering environmental justice. This is our opportunity to use industrial policy to shape markets while protecting workers and communities.
But the vision relies upon a clear understanding of the risks and hazards of semiconductor manufacturing. Without environmental review, it’s hard to see how we can realize the administration’s commitment to a revived US chip-making industry that is safe and sustainable.
Goodbye to one of the few avenues for public oversight
Workers, neighboring communities, and the public at large deserve to understand the likely environmental impacts of CHIPS Act-funded projects. But the contracts with corporate beneficiaries have been negotiated in secrecy. The final contracts will not be made public and are exempt from the Freedom of Information Act. With the passage of S. 2228, the public loses one of its few vehicles for transparency and accountability.The proponents of Senate Bill 2228 and all the Congressmembers who voted “yes” are committed to “building chips in America” at all costs—even at the expense of workers, nearby communities, and our country’s precious natural resources.
