Not from environmental laws generally. The Building Chips in America Act of 2023, enacted as Public Law 118–105 on October 2, 2024, narrows certain federal environmental-review requirements for qualifying semiconductor projects receiving CHIPS-related assistance. Whether a project qualifies depends on its timing or federal funding, and other federal review may still apply.
What the law changes
For a semiconductor project described in a CHIPS program application, the Act provides that the federal financial assistance itself is not treated as a “major Federal action” under the National Environmental Policy Act (NEPA), or as an undertaking under specified provisions of the National Historic Preservation Act, when at least one of three conditions is met. The provision applies to federal assistance—not to every activity involved in building or operating a fab. Public Law 118–105
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- The project activity described in the application began no later than December 31, 2024.
- The federal assistance is a loan or loan guarantee.
- For assistance other than a loan or loan guarantee, the federal assistance is no more than 10% of the project’s estimated total cost.
These are statutory eligibility tests. A project that does not meet any of them does not receive this particular treatment of federal assistance, though a categorical exclusion or another review pathway may be relevant.
What the Act does not exempt
The Act does not declare semiconductor companies exempt from environmental laws as a whole. It also expressly preserves the question of whether an activity is a major federal action for a reason other than the activity’s eligibility for CHIPS assistance. In the statute’s words: “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
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In practical terms, the provision limits when CHIPS funding alone triggers the specified federal review treatment. It does not establish that all permits, state or local requirements, or other federal obligations disappear. The project and the federal action at issue still matter.
Separate categorical exclusions and agency leadership
The statute also creates specified categorical exclusions for covered activities. Among them are qualifying construction, expansion, or modernization at or adjacent to an existing site where substantially similar work has been or is being carried out. This exclusion is subject to a limit: the facility may not more than double existing developed acreage or on-site supporting infrastructure. A project must meet the statutory terms; proximity to an existing fab alone is not enough.
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For certain covered activities that remain major federal actions under NEPA, the Act gives the Department of Commerce the first right to serve as lead agency. That changes who coordinates the federal review in the specified circumstances; it does not itself eliminate a review that remains required.
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The CHIPS Program Office works with applicants to determine whether a CHIPS project requires NEPA review under the Act, according to NIST’s NEPA and CHIPS Act page, updated September 28, 2026. A project-level assessment turns on more than its industry or the fact it receives a federal award:
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- Check the assistance conditions. Determine whether the described project activity began by December 31, 2024, whether the assistance is a loan or loan guarantee, or whether non-loan assistance is no more than 10% of estimated total project cost.
- Check for a categorical exclusion. Review whether the activity and site meet a statutory exclusion, including the conditions for qualifying work at or adjacent to an existing site.
- Ask whether a federal action remains subject to NEPA. The assistance provision does not settle that question when another reason makes the activity a major federal action.
- Identify the lead agency. For specified covered activities that still require NEPA review, Commerce may have the first right to lead.
NIST also reports that on June 28, 2024, CHIPS for America announced a final programmatic environmental assessment and finding of no significant impact for modernization and expansion of existing semiconductor fabrication facilities funded through the CHIPS Incentives Program. The assessment covers facilities within existing footprints and current-generation, mature-node, and leading-edge commercial fabs, including front-end and back-end facilities. It is a separate programmatic review context, not a blanket finding for every semiconductor project.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the headline needs qualification
The law was enacted by Congress, rather than being a blanket administrative waiver issued by the Biden administration. The House passed S. 2228 on September 23, 2024, by a 257–125 vote; it became Public Law 118–105 on October 2, 2024, as summarized in the Congressional Research Service report. Those are legislative milestones, not evidence of environmental effects. The accurate shorthand is that the Act narrows specified NEPA and National Historic Preservation Act review treatment for some CHIPS-supported projects while creating categorical exclusions and a Commerce lead-agency role in defined cases.
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