Bipartisan Texan Push in Congress to Boost Semiconductors, a Crucial Industry in the State

Environmental reviews under the National Environmental Policy Act, commonly called NEPA, require thorough documentation of government projects for potential environmental impacts — including a study of alternate projects that could have less impact on the environment. The reviews include public comment periods and may require an analysis by other agencies affected by the projects.

Members of both parties have criticized NEPA’s environmental reviews, which can take months or years, for holding up critical infrastructure, with many Republicans criticizing the hurdles as stifling bureaucracy that chokes off new oil and gas projects.

Many Democrats say the reviews can delay the robust development of renewable energy that is needed to reach the Biden administration’s climate and infrastructure goals.

“This bipartisan bill is a common-sense change that will ensure that the CHIPS Act delivers on its promise and these critical projects can get approved,” Allred said in a statement.

But environmentalists are uncomfortable watering down NEPA reviews. Nearly 80 Democrats in the U.S. House wrote to party leaders and President Joe Biden in May to oppose permitting reform that would have shortened NEPA review periods.

Allred and McCaul joined several other members of both parties to introduce the Building Chips in America Act in the House. Allred is making bipartisanship and moderation a focus of his campaign to unseat Cruz in the 2024 Senate race, in contrast to Cruz’s frequently aggressive partisan style.

But on this issue, Cruz and Allred have set aside almost polar-opposite politics, illustrating the importance of the semiconductor industry to Texas.

Already, firms including Texas Instruments, Samsung, X-FAB and NXP Semiconductors have announced billions of dollars in projects in the state. Texas Instruments announced a new $30 billion fabrication plant in Sherman, and Samsung plans to build a $17 billion plant in Taylor.

Of the $200 billion in investments announced since the CHIPS and Science Act was passed, more than $61 billion is bound for Texas, potentially creating more than 8,000 jobs, according to CNBC and the Semiconductor Industry Association.

Cruz joined Sen. Mark Kelly, D-Arizona, to push for the Building Chips in America Act to be tacked on to the National Defense Authorization Act as part of a large package of amendments. The $886 billion defense bill passed the Senate just before Congress broke for its monthlong August recess. Kelly introduced the bill in the Senate.

The U.S. House also passed its version of the defense act in July but added a number of right-wing priorities, including limiting gender-affirming care and banning service members from being reimbursed for abortion-related travel. House and Senate negotiators will work to resolve differences in the two bills in September.

The defense policy bill has traditionally been among the most bipartisan pieces of legislation Congress addresses every year. The Senate’s version of the bill passed smoothly on a widely bipartisan basis, but the House version received only four Democratic votes.

Matthew Choi is a Washington correspondent for The Texas Tribune. This story is published courtesy of the Texas Tribune, a nonpartisan, nonprofit media organization that informs Texans — and engages with them — about public policy, politics, government, and statewide issues.