ICYMI: Cruz-Kelly Chips Permitting Reform Bill Passed Congress with Widespread Bipartisan Support

WASHINGTON, D.C. –– In case you missed it, earlier this week, U.S. Senate Commerce Committee Ranking Member Ted Cruz (R-Texas) and Sen. Mark Kelly’s (D-Ariz.) semiconductor plant permitting reform bill cleared the House after unanimously passing the Senate last December. The bill, S.2228 as replaced by the Kelly-Cruz full substitute amendment, is now headed to the President’s desk to be signed into law. The legislation would expedite the process to construct semiconductor manufacturing plants by removing burdensome environmental reviews and permits for microchip projects.

The Kelly-Cruz chips permitting reform bill received widespread bipartisan support, including from Secretary of Commerce Gina Raimondo. The legislation is a critical step in decreasing dependency on China and creating more jobs and incentives for investment in Texas.

Watch the interview and read more about the legislation below.

Local News Live: Congress passes bill to streamline federal process for chip manufacturing projects in America

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“Congress passed a bill this week that will streamline federal reviews for some microchip manufacturing projects in America.

“The Building Chips in America Act passed in the House on Monday and is now on its way to President Joe Biden’s desk.

“The bill streamlines the environmental review process for semiconductor manufacturing facilities that were incentivized by the CHIPS and Science Act.

“Several projects are in the works but supporters of the bill have said that they have been delayed because of government red tape.

“The bipartisan bill was authored in the Senate by Sen. Ted Cruz (R-TX) and Sen. Mark Kelly (D-AZ).

“Cruz said that the passage of the bill will benefit communities across the country where the projects are happening like his home state of Texas.

“‘What this is going to mean is new manufacturing plants will be built in Texas much faster. It will mean billions more dollars invested in the economy in Texas, and it will mean thousands more high-paying jobs in Texas. It’s a great victory for jobs in Texas,” said Sen. Cruz.

“The senator also said the bill will also make America safer by manufacturing the chips domestically.”

The Texas: U.S. House Passes 'Kelly-Cruz Amendment' to CHIPS Act, Sent to Biden's Desk

“The U.S. House of Representatives approved a bill on Monday aimed at streamlining permitting laws to facilitate the domestic construction of semiconductor factories.

“The bipartisan legislation passed by a vote of 257 to 125, with 49 members not voting, and now moves to the president’s desk for approval.

“The bill passed the Senate last year, and was passed in the House of Representatives this week as the “Kelly-Cruz substitute amendment.”

“Sens. Ted Cruz (R-TX) and Mark Kelly (D-AZ) submitted the amended text of their Senate bill in December 2023.

“When a bill passes as a "substitute amendment" in Congress, the original text is entirely replaced with new content. This new version of the bill, offered as an amendment, becomes the text that is voted on and passed.

“It aims to accelerate the construction of U.S. semiconductor facilities, as the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 has made over $50 billion available to promote domestic production and innovation.

“It will also streamline federal permitting by designating the Department of Commerce as the lead agency for National Environmental Policy Act (NEPA) reviews, exempting certain projects from NEPA, providing the Secretary of Commerce with greater authority to expedite reviews in coordination with state and local governments, and limiting court challenge timelines.

“Cruz and Kelly celebrated the amendment’s passage in a joint statement after the House passed it this week.

“‘My number one priority in the Senate is delivering jobs for Texans. When soon signed into law, the Kelly-Cruz legislation will mean tens of thousands of good-paying jobs and hundreds of billions in new investments for the Lone Star State,” wrote Cruz.

“‘I’m proud to have led this effort with Senator Mark Kelly to streamline environmental permitting for semiconductor factories, a crucial step in onshoring jobs and making our country less dependent on China for semiconductors critical to national defense.”

“Cruz continued to exchange jabs with Rep. Colin Allred (D-TX-32), who voted to pass the most recent act, over the past year regarding Cruz’s “no” vote on related legislation last year.

“At the time, Cruz supported one portion of the CHIPS Act but disagreed with another.

“Cruz explained in 2023 that the CHIPS Act consisted of two key parts: the Facilitating American-Built Semiconductors (FABS) Act, offering a tax credit to boost domestic semiconductor manufacturing investment, and the CHIPS Act itself, providing billions in direct subsidies to companies. While Cruz co-sponsored the FABS Act, he voted against the CHIPS Act due to his opposition to direct subsidies, favoring the more indirect incentive of the tax credit.

“Following this week's passage of the Building Chips in America Act, Samsung celebrated by saying that the bill is “ensuring U.S. innovation continues to surge!”

“Texas has seen businesses flocking to the state over the past few years, and semiconductor manufacturers have already started construction on facilities in towns like Taylor and Sherman.

“The ongoing battle for semiconductor supremacy between China and the U.S. is intensifying as both nations invest heavily in domestic chip production and innovation, with the global semiconductor industry projected to reach a value of approximately $1 trillion by 2030.”

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