S. 2228Senate118th Congress (2023-2025)Enacted

Building Chips in America Act of 2023

Sponsored by Mark KellySen. Mark Kelly (D-AZ)
Introduced July 11, 2023

AI-Generated Summary

Updated January 20, 2026 at 9:46 AM UTC

The Building Chips in America Act of 2023 amends the 2021 National Defense Authorization Act to speed up the development of semiconductor manufacturing in the United States by easing environmental review requirements. It says certain federally‑assisted chip projects that start by Dec. 31, 2024 and receive loans, loan guarantees, or assistance covering no more than 10% of costs will not be treated as a major federal action under NEPA. The bill also gives the Department of Commerce the first right to act as the lead agency for NEPA reviews, creates specific categorical exclusions for these projects, and allows agencies to rely on prior studies and decisions. It mainly affects semiconductor companies receiving federal aid, the Department of Commerce, NIST, and other federal agencies involved in environmental assessments.

Key Provisions

  • Federal loans, loan guarantees, or assistance up to 10% of a semiconductor project’s cost (for projects started by Dec. 31, 2024) are excluded from being a major federal action under NEPA
  • The Department of Commerce gets the first option to serve as the lead agency for NEPA reviews of covered semiconductor activities
  • Specific categorical exclusions are established for NIST and a list of existing exclusions can be used for semiconductor projects
  • Projects located on or adjacent to sites owned or leased by the assisted entity, where construction does not more than double existing developed acreage, are categorically excluded from NEPA assessments
  • The Secretary may rely on prior federal, state, or tribal studies and decisions when completing NEPA reviews for covered activities
  • Defines “covered activity” as construction, expansion, or modernization of a facility eligible for federal financial assistance under the semiconductor program

Legislative Activity

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18 earlier actions
Became Law Latest Action

Became Public Law No: 118-105.

October 2, 2024

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SenateIntro Referral

Introduced in Senate

July 11, 2023

SenateIntro Referral

Read twice and referred to the Committee on Environment and Public Works.

July 11, 2023

SenateCommittee

Senate Committee on Environment and Public Works discharged by Unanimous Consent.

December 14, 2023

SenateFloor

Measure laid before Senate by unanimous consent. (consideration: CR S6009-6010)

December 14, 2023

SenateFloor

Passed Senate with an amendment by Unanimous Consent. (text: CR S6010)

December 14, 2023

SenateFloor

Message on Senate action sent to the House.

December 18, 2023

HouseFloor

Received in the House.

December 19, 2023 • 2:11 PM

HouseFloor

Held at the desk.

December 19, 2023 • 2:44 PM

HouseFloor

Mr. Lucas moved to suspend the rules and pass the bill.

September 23, 2024 • 5:39 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H5603-5606)

September 23, 2024 • 5:39 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on S. 2228.

September 23, 2024 • 5:39 PM

HouseFloor

At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.

September 23, 2024 • 6:00 PM

HouseFloor

Considered as unfinished business. (consideration: CR H5625-5626)

September 23, 2024 • 6:33 PM

SenateFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 257 - 125 (Roll no. 440). (text: CR H5603-5604)

September 23, 2024 • 6:56 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 257 - 125 (Roll no. 440). (text: CR H5603-5604)

September 23, 2024 • 6:56 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

September 23, 2024 • 6:56 PM

President

Presented to President.

September 24, 2024

Became Law

Signed by President.

October 2, 2024

Became Law

Became Public Law No: 118-105.

October 2, 2024

Floor Debate

12 members

What members said about S. 2228 on the floor

6 Republicans6 Democrats
Frank D. Lucas
Rep. Frank D. LucasR-OK-3 · Sep 23, 2024

Mr. Speaker, I move to suspend the rules and pass the bill (S. 2228) to amend the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 to clarify the scope of a major…

Frank Pallone, Jr.
Rep. Frank Pallone, Jr.D-NJ-6 · Sep 23, 2024

Mr. Speaker, I rise in strong opposition to S. 2228, the so-called Building Chips in America Act. This bill simply should not be coming up under a suspension of the rules. All three ranking members…

Summer L. Lee
Rep. Summer L. LeeD-PA-12 · Sep 23, 2024

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in opposition to S. 2228, the Building Chips in America Act. I can't begin to tell you how frustrating it is that we are…

Jennifer A. Kiggans
Rep. Jennifer A. KiggansR-VA-2 · Sep 23, 2024

Mr. Speaker, I rise today in support of S. 2228, the Building Chips in America Act, the Senate version of bipartisan legislation I introduced last year to bring semiconductor manufacturing back to…

Zoe Lofgren
Rep. Zoe LofgrenD-CA-18 · Sep 25, 2024

Mr. Speaker, I rise in opposition to S. 2228 the Building Chips in America Act. It is really unfortunate that this bill was added to the schedule at the last minute, with no consultation with the…

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Greg Stanton
Rep. Greg StantonD-AZ-4 · Sep 23, 2024

Mr. Speaker, I rise in support of S. 2228, the Building Chips in America Act. Two years ago, Congress wisely passed the CHIPS and Science Act, bringing about a resurgence in domestic manufacturing,…

Michael C. Burgess
Rep. Michael C. BurgessR-TX-26 · Sep 23, 2024

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, I do rise today in support of S. 2228, the Building Chips in America Act. Last week, Members of the Texas delegation sent a letter to our…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Dec 14, 2023

Mr. President, I ask unanimous consent that the Committee on Environment and Public Works be discharged from further consideration of S. 2228 and the Senate proceed to its immediate consideration. I…

John R. Curtis
Rep. John R. CurtisR-UT-3 · Sep 24, 2024

Mr. Speaker, I was delayed due to travel conflicts. Had I been present, I would have voted YEA on Roll Call No. 442 (S. 3764); YEA on Roll Call No. 441 (H.R. 8958); and YEA on Roll Call No. 440 (S.…

Paul Tonko
Rep. Paul TonkoD-NY-20 · Sep 23, 2024

Mr. Speaker, had I been present, I would have voted ``nay'' on rollcall No. 440.

Bruce Westerman
Rep. Bruce WestermanR-AR-4 · Sep 23, 2024

Mr. Speaker, had I been present, I would have voted NAY on Roll Call No. 440.

Pete Stauber
Rep. Pete StauberR-MN-8 · Sep 23, 2024

Mr. Speaker, on that I demand the yeas and nays.

Bill Text

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One Hundred Eighteenth Congress of the United States of America

2d Session

Begun and held at the City of Washington on Wednesday, the third day of January, two thousand and twenty four

S. 2228

AN ACT

To amend the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 to clarify the scope of a major Federal action under the National Environmental Policy Act of 1969 with respect to certain projects relating to the production of semiconductors, and for other purposes.

1.

Short title

This Act may be cited as the Building Chips in America Act of 2023.

2.

Semiconductor program

Title XCIX of division H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651 et seq.) is amended—

(1)

in section 9902 (15 U.S.C. 4652)—

(A)

by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

(B)

by inserting after subsection (g) the following:

(h)

Authority relating to environmental review

(1)

In general

Notwithstanding any other provision of law, the provision by the Secretary of Federal financial assistance for a project described in this section that satisfies the requirements under subsection (a)(2)(C)(i) of this section shall not be considered to be a major Federal action under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (referred to in this subsection as NEPA) or an undertaking for the purposes of division A of subtitle III of title 54, United States Code, if—

(A)

the activity described in the application for that project has commenced not later than December 31, 2024;

(B)

the Federal financial assistance provided is in the form of a loan or loan guarantee; or

(C)

the Federal financial assistance provided, excluding any loan or loan guarantee, comprises not more than 10 percent of the total estimated cost of the project.

(2)

Savings clause

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.

; and

(2)

in section 9909 (15 U.S.C. 4659), by adding at the end the following:

(c)

Lead Federal agency and cooperating agencies

(1)

Definition

In this subsection, the term lead agency has the meaning given the term in section 111 of NEPA (42 U.S.C. 4336e).

(2)

Option to serve as lead agency

With respect to a covered activity that is a major Federal action under NEPA, and with respect to which the Department of Commerce is authorized or required by law to issue an authorization or take action for or relating to that covered activity, the Department of Commerce shall have the first right to serve as the lead agency with respect to that covered activity under NEPA.

(d)

Categorical exclusions

(1)

Establishment of categorical exclusions

Each of the following categorical exclusions is established for the National Institute of Standards and Technology with respect to a covered activity and, beginning on the date of enactment of this subsection, is available for use by the Secretary with respect to a covered activity:

(A)

Categorical exclusion 17.04.d (relating to the acquisition of machinery and equipment) in the document entitled EDA Program to Implement the National Environmental Policy Act of 1969 and Other Federal Environmental Mandates As Required (Directive No. 17.02–2; effective date October 14, 1992).

(B)

Categorical exclusion A9 in Appendix A to subpart D of part 1021 of title 10, Code of Federal Regulations, or any successor regulation.

(C)

Categorical exclusions B1.24, B1.31, B2.5, and B5.1 in Appendix B to subpart D of part 1021 of title 10, Code of Federal Regulations, or any successor regulation.

(D)

The categorical exclusions described in paragraphs (4) and (13) of section 50.19(b) of title 24, Code of Federal Regulations, or any successor regulation.

(E)

Categorical exclusion (c)(1) in Appendix B to part 651 of title 32, Code of Federal Regulations, or any successor regulation.

(F)

Categorical exclusions A2.3.8 and A2.3.14 in Appendix B to part 989 of title 32, Code of Federal Regulations, or any successor regulation.

(2)

Additional categorical exclusions

Notwithstanding any other provision of law, each of the following shall be treated as a category of action categorically excluded from the requirements relating to environmental assessments and environmental impact statements under section 1501.4 of title 40, Code of Federal Regulations, or any successor regulation:

(A)

The provision by the Secretary of any Federal financial assistance for a project described in section 9902, if the facility that is the subject of the project is on or adjacent to a site—

(i)

that is owned or leased by the covered entity to which Federal financial assistance is provided for that project; and

(ii)

on which, as of the date on which the Secretary provides that Federal financial assistance, substantially similar construction, expansion, or modernization is being or has been carried out, such that the facility would not more than double existing developed acreage or on-site supporting infrastructure.

(B)

The provision by the Secretary of Defense of any Federal financial assistance relating to—

(i)

the creation, expansion, or modernization of one or more facilities described in the second sentence of section 9903(a)(1); or

(ii)

carrying out section 9903(b), as in effect on the date of enactment of this subsection.

(C)

Any activity undertaken by the Secretary relating to carrying out section 9906, as in effect on the date of enactment of this subsection.

(e)

Incorporation of prior planning decisions

(1)

Definition

In this subsection, the term prior studies and decisions means baseline data, planning documents, studies, analyses, decisions, and documentation that a Federal agency has completed for a project (or that have been completed under the laws and procedures of a State or Indian Tribe), including for determining the reasonable range of alternatives for that project.

(2)

Reliance on prior studies and decisions

In completing an environmental review under NEPA for a covered activity, the Secretary may consider and, as appropriate, rely on or adopt prior studies and decisions, if the Secretary determines that—

(A)

those prior studies and decisions meet the standards for an adequate statement, assessment, or determination under applicable procedures of the Department of Commerce implementing the requirements of NEPA;

(B)

in the case of prior studies and decisions completed under the laws and procedures of a State or Indian Tribe, those laws and procedures are of equal or greater rigor than those of each applicable Federal law, including NEPA, implementing procedures of the Department of Commerce; or

(C)

if applicable, the prior studies and decisions are informed by other analysis or documentation that would have been prepared if the prior studies and decisions were prepared by the Secretary under NEPA.

(f)

Definitions

In this section:

(1)

Covered activity

The term covered activity means any activity relating to the construction, expansion, or modernization of a facility, the investment in which is eligible for Federal financial assistance under section 9902 or 9906.

(2)

NEPA

The term NEPA means the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

.

Speaker of the House of Representatives

Vice President of the United States and President of the Senate