Semiconductor incentives

The Secretary shall establish in the Department of Commerce a program that, in accordance with the requirements of this section and subject to the availability of appropriations for such purposes, provides Federal financial assistance to covered entities to incentivize investment in facilities and equipment in the United States for the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment. A covered entity shall submit to the Secretary an application that describes the project for which the covered entity is seeking financial assistance under this section. In order for a covered entity to qualify for financial assistance under this section, the covered entity shall demonstrate to the Secretary, in the application submitted by the covered entity under subparagraph (A), that— with respect to the project described in clause (i), the covered entity has— made commitments to worker and community investment, including through— determined— With respect to the review by the Secretary of an application submitted by a covered entity under subparagraph (A)— the Secretary may not approve the application unless the Secretary— the Secretary may consider whether— In awarding Federal financial assistance to covered entities under this subsection, the Secretary shall— give priority to ensuring that a covered entity receiving financial assistance will— The Secretary may request records and information from the applicant to review the status of a covered entity. The applicant shall provide the records and information requested by the Secretary. The Secretary shall determine the appropriate amount and funding type for each financial assistance award made to a covered entity under this subsection. Federal investment in any individual project shall not exceed $3,000,000,000 unless the Secretary, in consultation with the Secretary of Defense and the Director of National Intelligence, recommends to the President, and the President certifies and reports to the appropriate committees of Congress, that a larger investment is necessary to— A covered entity that receives a financial assistance award under this subsection may only use the financial assistance award amounts to— For all awards to covered entities, the Secretary shall— If the project does not commence and complete by the set target dates in (A), the Secretary shall progressively recover up to the full amount of an award provided to a covered entity under this subsection. The Secretary shall recover the full amount of an award provided to a covered entity under this subsection if, during the applicable term with respect to the award, the covered entity knowingly engages in any joint research or technology licensing effort— In the case of delayed projects, the Secretary may waive elements of the clawback provisions incorporated in each award after— The Secretary shall notify appropriate committees of Congress— In this paragraph, the term “legacy semiconductor”— includes— Not later than 2 years after August 9, 2022, and not less frequently than once every 2 years thereafter for the 8-year period after the last award under this section is made, the Secretary, after public notice and an opportunity for comment and if applicable and necessary, shall issue a public notice identifying any additional semiconductor technology included in the meaning of the term “legacy semiconductor” under clause (i). The functions of the Secretary under this paragraph shall not be subject to sections 551, 553 through 559, and 701 through 706 of title 5. In carrying out clause (ii), the Secretary shall consult with the Director of National Intelligence and the Secretary of Defense. In carrying out clause (ii), the Secretary shall consider— In this paragraph, the term “semiconductor manufacturing”— On or before the date on which the Secretary awards Federal financial assistance to a covered entity under this section, the covered entity shall enter into an agreement with the Secretary specifying that, during the 10-year period beginning on the date of the award, subject to clause (ii), the covered entity may not engage in any significant transaction, as defined in the agreement, involving the material expansion of semiconductor manufacturing capacity in the People’s Republic of China or any other foreign country of concern. The prohibition in the agreement required under clause (i) shall not apply to— significant transactions involving the material expansion of semiconductor manufacturing capacity that— For the purpose of applying the requirements in an agreement required under clause (i), a covered entity shall include the covered entity receiving financial assistance under this section, as well as any member of the covered entity’s affiliated group under section 1504(a) of title 26, without regard to section 1504(b)(3) of title 26. During the applicable term of the agreement of a covered entity required under subparagraph (C)(i), the covered entity shall notify the Secretary of any planned significant transactions of the covered entity involving the material expansion of semiconductor manufacturing capacity in the People’s Republic of China or any other foreign country of concern. Not later than 90 days after the date of receipt of a notification described in subparagraph (D) from a covered entity, the Secretary, in consultation with the Secretary of Defense and the Director of National Intelligence, shall— Upon a notification under clause (i)(II) that a planned significant transaction of a covered entity is a violation of the agreement of the covered entity required under subparagraph (C)(i), the Secretary shall— Subject to clause (iv), if a covered entity fails to remedy a violation as set forth under clause (ii), the Secretary shall recover the full amount of the Federal financial assistance provided to the covered entity under this section. If the Secretary, in consultation with the Secretary of Defense and the Director of National Intelligence, determines that a covered entity planning a significant transaction that would violate the agreement required under subparagraph (C)(i) could take measures in connection with the transaction to mitigate any risk to national security, the Secretary— The Secretary may request from a covered entity records and other necessary information to review the compliance of the covered entity with the agreement required under subparagraph (C)(i). In order to be eligible for Federal financial assistance under this section, a covered entity shall agree to provide records and other necessary information requested by the Secretary under clause (i). Subject to clause (ii), any information derived from records or necessary information disclosed by a covered entity to the Secretary under this section— Clause (i) shall not prevent the disclosure of any of the following by the Secretary: Not later than 60 days after the date on which the Secretary finds a violation by a covered entity of an agreement required under subparagraph (C)(i), and after providing the covered entity with an opportunity to provide information in response to that finding, the Secretary shall provide to the appropriate Committees of Congress— The Secretary may issue regulations implementing this paragraph. In carrying out the program established under subsection (a), the Secretary shall coordinate with the Secretary of State, the Secretary of Defense, the Secretary of Homeland Security, the Secretary of Energy, and the Director of National Intelligence. The Comptroller General of the United States shall— not later than 2 years after the date of disbursement of the first financial award under subsection (a), and biennially thereafter for 10 years, conduct a review of the program established under subsection (a), which shall include, at a minimum— an evaluation of how— the Federal Government could take specific actions to address shortages in the semiconductor supply chain, including— a description of the outcomes of projects supported by awards made under the program, including a description of— drawing on data made available by the Department of Labor or other sources, to the extent practicable, an analysis of— semiconductor industry data regarding businesses that are— It is the sense of Congress that, in carrying out subsection (a), the Secretary should allocate funds in a manner that— The Secretary shall establish within the program established under subsection (a) an additional program that provides Federal financial assistance to covered entities to incentivize investment in facilities and equipment in the United States for the fabrication, assembly, testing, or packaging of semiconductors at mature technology nodes. In order for an entity to qualify to receive Federal financial assistance under this subsection, the covered entity shall agree to— In granting Federal financial assistance to covered entities under this subsection, the Secretary may use the procedures established under subsection (a). In addition to the considerations described in subsection (a)(2)(C), in granting Federal financial assistance under this subsection, the Secretary may consider whether a covered entity produces or supplies equipment or materials used in the fabrication, assembly, testing, or packaging of semiconductors at mature technology nodes that are necessary to support a critical manufacturing industry. In awarding Federal financial assistance to covered entities under this subsection, the Secretary shall give priority to covered entities that support the resiliency of semiconductor supply chains for critical manufacturing industries in the United States. There are authorized to be appropriated to the Secretary to carry out this subsection $2,000,000,000, which shall remain available until expended. Section 3212 of title 42 shall apply to a construction project that receives financial assistance from the Secretary under this section. Subject to the requirements of subsection (a) and this subsection, the Secretary may make or guarantee loans to covered entities as financial assistance under this section. The Secretary may select eligible projects to receive loans or loan guarantees under this subsection if the Secretary determines that— the covered entity— The Secretary shall base a determination of whether there is a reasonable prospect of repayment of the principal and interest on a loan under paragraph (2)(A)(i) on a comprehensive evaluation of whether the covered entity has a reasonable prospect of repaying the principal and interest, including, as applicable, an evaluation of— the projected financial strength of the covered entity— A loan provided under this subsection— A loan or guarantee provided under this subsection may include any other terms and conditions that the Secretary determines to be appropriate. No loan may be guaranteed under this subsection, unless the Secretary determines that— New loans may not be obligated and new loan guarantees may not be committed to under this subsection, unless appropriations of budget authority to cover the costs of such loans and loan guarantees are made in advance in accordance with section 661c(b) of title 2. The loan agreement for a loan guaranteed under this subsection shall provide that no provision of the loan agreement may be amended of 33 So in original. Probably should be “or”. waived without the consent of the Secretary. Notwithstanding any other provision of law, the provision by the Secretary of Federal financial assistance for a project described in this section that satisfies the requirements under subsection (a)(2)(C)(i) of this section shall not be considered to be a major Federal action under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (referred to in this subsection as “NEPA”) or an undertaking for the purposes of division A of subtitle III of title 54 if— Nothing in this subsection may be construed as altering whether an activity described in subparagraph (A), (B), or (C) of paragraph (1) is considered to be a major Federal action under NEPA, or an undertaking under division A of subtitle III of title 54, for a reason other than that the activity is eligible for Federal financial assistance provided under this section. Not later than 4 years after disbursement of the first financial award under subsection (a), the Inspector General of the Department of Commerce shall audit the program under this section to assess— No funds made available under this section may be used to construct, modify, or improve a facility outside of the United States.