July 29, 2022
The bipartisan CHIPS and Science Act has been sent to President Biden for his signature after passing both chambers. After passing the Senate 64-34, the U.S. House voted 243-187, with 24 Republicans, to pass legislation that will provide $54.2 billion in supplemental funding for the semiconductor and wireless industry, including $52 billion in grants and incentives specifically for the American semiconductor industry.
In addition to these grants, a 25% investment tax credit for manufacture of semiconductors and tools to create semiconductors will be included, alongside a $500 million for an international secure communications program, $200 million for worker training, and $1.5 billion for public wireless supply-chain innovation. The package also contains several “plus” items including funding authorizations for the National Science Foundation, Energy Department Office of Science and more.
CHIPS Act – ($54.2 billion)
Commerce Department Incentives Program ($39 billion)
The incentive program would have $39 billion allocated to implement the Semiconductor Initiative Program Financial Assistance Program (FY2021 National Defense Authorization Act Section 9902), which requires the Commerce Secretary to establish a program that provides financial assistance to incentivize investment in semiconductor facilities. Within the incentive program, up to $6 billion may be used for the cost of direct loans and loan guarantees.
Advanced Microelectronics Research and Development ($11 billion)
This $11 billion would be allocated to several programs included in Section 9906 of the FY2021 NDAA, including the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program, and other R&D and workforce development programs. The FY22 funding would include $2 billion for NSTC, $2.5 billion for advanced packaging, and $500 billion for other related R&D programs. Funding for FY23-FY26 to be used across the programs would include $2 billion in FY23, $1.3 billion in FY24, $1.1 billion in FY25, and $1.6 billion in FY26.
CHIPS for America Workforce and Education Fund – ($200 million)
CHIPS for America Defense Fund – ($2 billion)
CHIPS for America International Technology Security and Innovation Fund – ($500 million)
Public Wireless Supply Chain Innovation Fund – ($1.5 billion)
Appropriate $1.5 billion for the Public Wireless Supply Chain Innovation Fund with the goal of encouraging movement toward open-architecture, software-based wireless technologies and funding innovative technologies in the U.S. mobile broadband market.
Advanced Manufacturing Investment Credit
This is a 25% investment tax credit for semiconductor manufacturing investments and includes incentives for the manufacturing of semiconductors and specialized tooling equipment required in the semiconductor manufacturing process. The credit begins after December 21, 2022, for properties for which construction begins before January 1, 2027.
National Science Foundation Authorization – ($81 billion total over 5 years; +$36 billion over baseline)
Invest in Strategic Translational Science
Authorizes $20 billion for the first-of-its-kind National Science Foundation (“NSF”) Directorate for Technology, Innovation, and Partnerships (“TIP”), which will accelerate domestic development of national and economic-security critical technologies such as artificial intelligence, quantum computing, advanced manufacturing, 6G communications, energy, and material science. ($20 billion total)
Grow Basic Research
Supports early-stage research that will create revolutionary new ideas, including in areas such as the food-energy-water system, sustainable chemistry, risk and resilience, clean water systems, technology and behavioral health, critical minerals, precision agriculture, and the impact of satellite constellations on NSF-funded science.
Build the STEM Workforce
Authorizes funding for STEM education, including scholarships, fellowships, and traineeships to create workers in critical fields, including establishing an artificial intelligence scholarship-for-service program, a national network for microelectronics education, and cybersecurity workforce development programs. ($13 billion total)
Building Broad-based Research Opportunities
Grows funding for NSF research activities for universities across the country, including investment in minority serving institutions and emerging research institutions, and by placing EPSCoR jurisdictions on a path to receive 20% of funding in key accounts by FY2029.
Expand Rural STEM Education
Provides for research and development to increase access to STEM education opportunities in rural schools and to provide teachers with the resources they need to teach more effectively.
Department of Commerce Technology Hubs – ($11 billion total over 5 years; +$11 billion over baseline)
Build Regional Innovation
Directs the Department to create 20 geographically-distributed “regional technology hubs”. These hubs will focus on technology development, job creation, and expanding U.S. innovation capacity. ($10 billion total)
Establishes the “Recompete Pilot Program,” to support persistently distressed communities with economic development activities. ($1 billion total)
National Institute of Standards and Technology Authorization – ($9 billion total, +$4 billion over baseline)
Support Critical Technology Research and Standards
Advances research and standards development for industries of the future, including quantum information science, artificial intelligence, cybersecurity, advanced communications technologies, and semiconductors.
Strengthen Small Manufacturers
Triples funding for Manufacturing Extension Partnership, to support small- and medium-sized manufacturers with cybersecurity, workforce training, and supply chain resiliency ($2 billion total)
Combat Supply Chain Disruption
Leverages the Manufacturing Extension Partnership to creates a National Supply Chain Database, to assist the businesses with supplier scouting and minimizing supply chain disruptions ($131 million total)
Grow Manufacturing USA
Supports the creation of new competitively-awarded manufacturing research institutes with expanded capacity for education and workforce development. ($829 million total)
Promote Competitiveness in International Standards
Expands interagency coordination and information exchange activities to support private sector engagement and ensure effective Federal engagement in the development and use of international standards.
National Aeronautics and Space Administration Authorization
Authorize the Artemis Moon Program
Authorizes the Moon-to-Mars Exploration Campaign, including the Artemis program to return America to the Moon, including the first woman and person of color.
Maintain the International Space Station
Extends authorization for the International Space Station through 2030 and establishes priorities for research, as required to bring Americans to Mars.
Extend NASA Enhanced Use Lease Authority
Enables NASA to lease underutilized properties through 2032, and to use lease revenues to address facility maintenance while reducing taxpayer costs.
Support NASA Science Priorities
Expresses support for a balanced science portfolio, including Earth science observations and the search for life beyond Earth. Supports continued development of the Nancy Grace Roman Space Telescope and requires quarterly progress reports to Congress.
Advance U.S. Aeronautics Leadership
Requires NASA to continue research efforts in aeronautics, including with the use of experimental aircraft, to advance supersonic flight, aircraft efficiency, and advanced materials manufacturing.
Enhance NASA Technology, Infrastructure, and Workforce
Directs NASA to invest in testing infrastructure and capabilities, supports space nuclear power and propulsion research and technology maturation activities (with an in-space demonstration of a nuclear propulsion systems) and requires a study and planning on the industrial base and NASA workforce. Codifies the Office of STEM Engagement to promote STEM literacy and workforce development.
Ensure Planetary Defense
Codifies the Planetary Defense Coordination Office and requires NASA to continue efforts to protect Earth from asteroids and comets, including a dedicated Near-Earth Object Surveyor telescope.
Research Security to Protect Federal Investments in the U.S. R&D Enterprise
Empower NSF Research Security
Requires the NSF to maintain a Research Security and Policy Office to identify potential security risks, conduct outreach and education to the research community, establish procedures and policies on research security for the Foundation, and conduct risk assessments of applications and disclosures.
Train Researchers on Best Practices
Creates an online resource for institutions and researchers to receive NSF guidance and information on security risks and best practices and requires covered individuals seeking funding from Federal research agencies to complete annual training on research security. Creates a Research Security and Integrity Information Sharing Organization that would serve as a clearinghouse for institutions and researchers to identify improper and illegal efforts to compromise research security.
Prohibit Foreign Recruitment Programs
Requires the Office of Science and Technology Policy to promulgate guidance to all Federal research agencies that would:
Prohibit Federal research agency personnel from participating in foreign talent recruitment programs
Required covered individuals on applications (e.g., Principal Investigators) to disclose participation in foreign talent recruitment programs
Prohibit awards in cases where covered individuals are participating in malign foreign talent recruitment programs
Requires annual disclosures for NSF award recipients regarding foreign financial arrangements. Institutions receiving NSF funds would have to disclose financial support for foreign countries of concern (China, Russia, North Korea, Iran) and allows NSF to reduce, suspend, or terminate funding under certain circumstances. Provides Federal research agencies with authority to request contracts and documents related to foreign appointments and employment with foreign entities for applicants.
Department of Energy Provisions
Basic Energy Sciences
Authorizes a research and development program in basic energy sciences, including materials science and engineering, chemical sciences, and prioritizes research and development in sustainable chemistry.
Reauthorizes research and development activities related to artificial photosynthesis and electricity storage.
Directs research in foundational nuclear science, establishes a carbon materials science initiative, and establishes a carbon oxide sequestration research and geologic computing initiative.
Biological and Environmental Research
Expands the biological systems science, environmental, and climate science programs relevant to developing new energy technologies and supporting the Department’s energy, environment, and national security missions.
Authorizes up to six bioenergy research centers focused on fundamental research in plant and microbial systems biology, biological imaging and analysis, and genomics to accelerate bioenergy sources’ research, development, and commercial application.
Directs research in low-dose radiation exposure on Earth, low-Earth orbit, and the space environment.
Authorizes climate and Earth modeling research.
Advanced Scientific Computing Research
Authorizes a program to support advanced computing and networking technologies and expands the Computational Science Graduate Fellowship.
Supports quantum network infrastructure research and development and broadens access to quantum computing resources.
Fusion Energy Research
Directs the construction of a Material Plasma Exposure Experiment Facility capable of meeting the research needs for testing of fusion materials.
Provides for upgrades to meet research needs for understanding physical and chemical changes to plasmas at fundamental timescales, and explore new regimes of dense material physics, astrophysics, planetary physics, and short-pulse laser-plasma interactions.
High Energy Physics Program
Establishes a program in elementary particle physics and associated advanced technology research and development, including using high energy accelerators and advanced detectors to create and study the interaction
Directs a program in nuclear physics and provides guidance and authorization levels for the construction of the Facility for Rare Isotope Beams and the Electron-Ion Collider.
Accelerator Research and Development
Fosters private-public partnerships to develop, demonstrate, and enable the commercial application of such technologies, supports associated workforce development activities, and provides access to accelerator design and engineering resources.
Isotope Development and Production
Establishes a program to produce isotopes for research, medical, industrial, and related purposes, advance isotope production methods and techniques, and ensures that production activities do not compete with private industry.
Establishes an isotope demonstration subprogram to support the development and commercial demonstration of critical stable or radioactive isotope production at existing commercial nuclear power plants.
Increased Collaboration with Teachers and Scientists
Directs the Office to support the development of a scientific workforce through programs that foster collaboration between K-12 students, university students, early-career researchers, faculty, and national laboratories.
High-Intensity Laser Research Initiative and Helium Conservation
Authorizes the establishment of a high-intensity laser research initiative to advance laser technologies relevant to future facility needs in discovery science and to support a user network of academic and national laboratory high-intensity laser facilities.
Establishes a program to reduce the use of helium among the Department’s grantees and facilities by encouraging recycling and reuse.
Established Program to Stimulate Competitive Research (EPSCoR)
Expands the authorized scope and funding for the Department’s EPSCoR program over 5 years; increases transparency and accountability of the program; and expands the ways the Department can support research capabilities in eligible states including with undergraduate scholarships, grants to support early career faculty and staff, and funding to expand research capacity in key technology areas and partnerships with National Labs and industry.
Directs the Secretary to develop and maintain tools and processes to manage and mitigate security risks to facilitate determinations of the risk of loss of United States intellectual property or threat to the national security of the United States.
Amends the Energy Independence and Security Act of 2007 to authorize a Regional Clean Energy Innovation Program at the Department of Energy to establish regional partnerships that promote the economic development of diverse geographic areas of the United States by supporting clean energy innovation.
Foundation of Energy Security and Innovation
Establishes a Foundation for Energy Security and Innovation (FESI) for the DOE to engage with the private sector to raise funds that support the creation, development, and commercialization of innovative technologies that address tomorrow’s energy challenges. Functions of the foundation will include:
Increasing access to private sector funding. As a 501(c)(3), FESI will have the flexibility to engage with various private sector sources for funds and attract new non-traditional partners.
Accelerating commercialization. FESI will facilitate public-private partnerships to commercialize research and technology as well as administer prize competitions that engage the private sector to invest in commercial solutions to big problems.
Convening thought-leaders. FESI will organize events, briefings, and symposia to create a neutral space for partners to share ideas and engage the public.
Training tomorrow’s workforce. FESI will support education and training of new researchers in energy through awards, grants, and fellowships.
Microelectronics Research Program: Requires DOE to establish a dedicated research program focused on research, development, and demonstration of next-generation microelectronics. Eligible research areas within this program include materials and chemical sciences, novel microchip designs and diverse computing architectures, integrated sensing, photonic integration and packaging, cybersecurity through design, and advancements in next-generation microelectronics manufacturing, among others. The Secretary should ensure that all research activities support commercial technology transfers and identify opportunities to enhance workforce development.
Microelectronics Science Research Centers: Requires DOE to, subject to appropriations, develop four Microelectronics Science Research Centers, to be located at National Laboratories, Universities, non-profit or commercial research entities, or consortiums to carry out research activities focused on addressing the foundational challenges in design, development, characterization, prototyping, demonstration, and fabrication of microelectronics. These research centers are required to coordinate with other federal programs focused on microelectronics R&D and would be required to support technology transfer and workforce development initiatives to support the private sector.
National Nuclear University Research Infrastructure Reinvestment
Amends the Energy Policy Act of 2005 to improve collaboration between relevant nuclear energy university stakeholders and to maintain and upgrade existing university research reactor infrastructure. Authorizes $55 million for each of fiscal years 2023 through 2027 for these activities.
Advanced nuclear research infrastructure enhancement subprogram.
Amends the Energy Policy Act of 2005 to establish a new university infrastructure subprogram that will further the development of advanced nuclear technologies including by establishing not more than four new research reactors and new nuclear science and engineering facilities. Authorizes a total of $390M over fiscal years 2023 through 2027 for these activities.
Steel Upgrading Partnerships and Emissions Reduction (SUPER) Act
This section authorizes a DOE research, development, demonstration, and commercial application program of advanced tools, technologies, and methods for low-emissions steel manufacturing, focusing on several key technology areas, including heat generation, carbon capture, smart manufacturing, resource efficiency, alternative materials, and high-performance computing.
This section also directs the Secretary to support an initiative for the demonstration of low-emissions steel manufacturing in collaboration with industry partners, institutions of higher education, and the National Laboratories, and to consider leveraging the resources of the Manufacturing USA Institutes.
Applied Laboratories Infrastructure Restoration and Modernization
Authorizes funding for deferred maintenance, critical infrastructure needs, and modernization activities across National Laboratories for each of fiscal years 2023 through 2027, including National Renewable Energy Laboratory, National Energy Technology Laboratory, Idaho National Laboratory, Savannah River National Laboratory, Sandia National Laboratories, Los Alamos National Laboratory, Lawrence Livermore National Laboratory.
Department of Energy Research, Development, and Demonstration Activities
Authorizes funding for research, development, and demonstration aligned with the 10 technology areas in the applied energy offices. This section authorizes appropriations for building technologies, sustainable transportation, advanced manufacturing, industrial emissions reduction technology, advanced materials, and renewable power research, development, and demonstration within the Office of Energy Efficiency and Renewable Energy. It also authorizes appropriations for grid modernization research, development and demonstration within the Office of Electricity. This section authorizes appropriations for advanced materials research, development, and demonstration within the Office of Nuclear Energy. It also authorizes appropriations for artificial intelligence and information technologies within the Office of Environmental Management. This section also authorizes appropriations for clean industrial technologies, alternative fuels, and carbon removal research, development, and demonstration within the Office of Fossil Energy and Carbon Management. It also authorizes appropriations for the Advanced Research Projects Agency—Energy.
Fission for the Future
Directs the Secretary to establish a program to provide Federal financial assistance to eligible entities to support the research, development, and demonstration of advanced nuclear reactors. It also directs the Secretary to use a competitive, merit-based review process.