A new law meant to expedite building of semiconductor facilities in the U.S. creates questions about how it might also adversely affect the environment and public health.
For decades, U.S. semiconductor production has relied on toxic “forever chemicals” known as PFAS and other hazardous substances. Tests for these chemicals downstream from semiconductor facilities have identified a complex mixture of known and unknown PFAS.
These releases of PFAS and other hazardous chemicals have contaminated the air and water, including in the birthplace of the semiconductor industry, California’s Santa Clara County, home to Silicon Valley, where more toxic Superfund sites are located than in any other U.S. county.
On October 2, President Joe Biden signed into law the Building Chips in America Act, which exempts the Department of Commerce from performing environmental reviews and soliciting public input for some semiconductor facility construction projects seeking federal funding to build or expand new and existing manufacturing plants.
Here we explore what this new law could mean for the environment and the public health of millions of Americans threatened by the PFAS contamination crisis.
What are PFAS and why are they harmful?
PFAS are known as “forever chemicals” because they build up in the body and never break down in the environment. They are used in thousands of consumer and industrial applications to make products waterproof, nonstick and stain-repellent.
Hundreds of studies link PFAS exposure to health harms including testicular, kidney, liver and pancreatic cancer; reproductive problems; weakened childhood immunity; low birth weight; endocrine disruption; increased cholesterol; and weight gain in children and dieting adults.
What are semiconductors and chips?
A semiconductor is a material that conducts electricity under certain conditions and blocks it in other conditions. Chips are made from semiconductors and contain a complex network of electronic components.
Chips or semiconductor chips are used in almost all electronic devices including smartphones, computers, solar panels, and electric vehicle batteries and cars.
What does the Building Chips in America Act do?
The law removes the Commerce Department’s responsibility to perform environmental reviews – as required by the National Environmental Policy Act, or NEPA – for certain projects receiving federal funding. Public feedback also is no longer required before some semiconductor manufacturers are awarded federal grants from the $38 billion included in a 2022 law known as the CHIPS and Science Act.
The Building Chips in America Act also details a number of activities that are no longer considered a “major federal action” and therefore would not trigger a federal NEPA environmental review.
Semiconductor facilities are still subject to other environmental laws, such as the Clean Air Act, the Clean Water Act and the Solid Waste Disposal Act. But many of the regulations for semiconductor manufacturing are out of date and do not directly address some hazardous chemicals, like PFAS. Exemptions from pre-construction environmental reviews could put some communities at risk, especially those in states with weaker environmental laws.
EWG does not oppose domestic semiconductor production. But we do oppose the exemption of certain industries from our bedrock environmental laws put in place to protect public health and the environment.
What is the National Environmental Policy Act?
Enacted in 1970, NEPA is one of our nation’s foundational environmental protection laws. It requires federal agencies to evaluate the environmental effects of their proposed actions before making decisions, and seek public input on them.
For major federally funded construction projects, environmental assessments or environmental impact statements are required if the project could significantly affect the environment. NEPA also requires public participation in the review process. Citizens may comment on these environmental evaluations for potential projects in their communities.
NEPA reviews help ensure projects don’t harm public health and protect the environment, and provide citizens a platform to voice concerns about potential risks to their communities.
What is the CHIPS and Science Act?
This law, enacted in 2022, aims to scale up domestic production of semiconductors by allocating billions in federal grants and loans. These major tax and financial incentives are designed to boost U.S. manufacturing, research and development of semiconductor technology.
EWG does not oppose the CHIPS and Science Act. But the federal government should not bypass NEPA safety guardrails when it considers which projects receive federal funding.
How many semiconductor manufacturing facilities are there in the U.S.?
According to Environmental Protection Agency compliance records, 1,191 active locations are classified as “Semiconductor and Related Device Manufacturing” in the U.S.
Of these facilities, 10 percent have violated federal environmental regulations in the past three years. Of those facilities subject to federal or state-issued pollution discharge permits, 27 percent violated discharge regulations in the same period.
With the enactment of the CHIPS and Science Act and the Building Chips in America Act, the number of semiconductor fabrication facilities in the U.S. is expected to increase rapidly over the next few years.
What types of PFAS does the semiconductor industry use?
The industry’s own 2023 survey identified active use of more than 200 types of PFAS throughout the manufacturing process of semiconductors and chips, including: polyfluorinated polyether oils (PFPE); polytetrafluoroethylene (PTFE); perfluoroalkylsulfonates (PFSA); perfluorobutane sulfonate (PFBS); polyvinylidene fluoride (PVDF); polychlorotrifluoroethylene (PCTFE).
The semiconductor industry phased out the use of PFOS in 2019 and plans to phase out PFOA by 2025.
Are there safer alternatives?
Alternatives to forever chemicals can be used for some processes in semiconductor manufacturing, including for photolithography, photoresist and etching. They would protect the environment, public health and the workers who would otherwise be handling these hazardous chemicals. But it’s not clear how long the transition to new chemicals will take, since some of the alternatives are still under development or being reviewed.
Are there federal standards in place to curb PFAS emissions from semiconductor manufacturing facilities?
Currently, there are no federal limits on industrial releases of PFAS into the air and water nor proper disposal requirements of PFAS wastes.
Some discharges into waterways are subject to permit limits, but PFAS wastewater discharges from semiconductor manufacturing facilities are not subject to industry-wide Clean Water Act pollution limits, called effluent limitation guidelines. States can update pollutant discharge permits to address these releases, but so far they haven’t for semiconductor companies.
Does the EPA have a plan to address PFAS air and water emissions from the semiconductor industry?
In 2021, the EPA released its PFAS Strategic Roadmap, which sets timelines for specific actions on PFAS. The Biden administration fulfilled some of its most important commitments, including setting historic new drinking water standards for PFAS and designating PFAS as hazardous substances under the Superfund law. But much more remains to be done to curb industrial air and wastewater releases and proper waste disposal of PFAS.
What can Congress do?
Congress should pass the Clean Water Standards for PFAS Act, which would require the EPA to develop PFAS discharge limits for certain industries, including semiconductor manufacturers by the end of 2025. In particular, the bill would require the EPA to develop discharge limits for the electrical and electronic components industry by December 31, 2025.
Congress should also make the PFAS Action Act a priority. It would require the EPA to designate PFOA and PFOS as hazardous air pollutants within 180 days and require the EPA to determine whether to list other PFAS within five years, among other measures. Once the agency lists a chemical as a hazardous air pollutant, it can set emissions standards for how much of a chemical is being released into the air. Regulating PFAS as a hazardous air pollutant would reduce the amount of toxic air pollution for frontline communities who live downwind from semiconductor plants.
What can states do?
States play an important role in implementing many of our major environmental laws like the Clean Air Act and Clean Water Act by issuing permits to polluting facilities and enforcing permit limits. When issuing and renewing permits for semiconductor facilities, states should include PFAS and other toxic chemical monitoring requirements and emissions limits.
When a facility applies for or renews a permit, some states, like New York, also require facilities to disclose whether they are using certain PFAS at their facility. States should also require facilities to handle and dispose of hazardous substances responsibly, without releases into the environment.
In the absence of federal leadership, states should step up to protect their residents from exposures to toxic chemicals, like PFAS, from polluting industries.
The Building Chips in America Act may help boost domestic production of semiconductors, but by exempting certain projects from environmental reviews, it could threaten public health and the environment. As semiconductor production facilities expand across the U.S., it is critical to strengthen protections from PFAS and other hazardous chemicals to ensure communities are not exposed to toxic pollutants.
