President Joe Biden signed the Building Chips in America Act into law on October 2, exempting firms receiving direct subsidies and loans under the CHIPS and Science Act from complying with the National Environmental Policy Act (NEPA). The government shielding CHIPS firms from environmental regulation is clear evidence of industrial policy picking winners and losers.
Passed in 1969, NEPA requires federal agencies to conduct environmental reviews for major federal actions. The law requires federal officials to consult with relevant agencies about the impact of all "major Federal actions significantly affecting the quality of the human environment" before submitting statements to the Environmental Protection Agency. Major federal actions include private projects "subject to substantial Federal control and responsibility."
