N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 1

CHIPS for America

Overview of NEPA and Environmental Reviews

Komie K. Jain, J.D., Director of Environmental Division

Hoshing Wan Chang, PhD, Supervisory NEPA Coordinator

March 21, 2023
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KEY OBJECTIVES

THIS PRESENTATION WILL:

• Share how environmental compliance fits into 

the CHIPS Incentive Program

• Provide an overview of the NEPA process

• Identify other relevant environmental statutes

• Share next steps for CHIPS Incentives Program 

applicants to get started
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N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 3

ROLE OF ENVIRONMENTAL COMPLIANCE IN FIRST CHIPS 

INCENTIVE FUNDING OPPORTUNITY

Environmental Risk is one of 

four elements of the 

Technical Feasibility and 

Readiness program priority

Timely satisfaction of environmental and permitting requirements is critical to the 

success of the CHIPS program.
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CHIPS ENVIRONMENTAL DIVISION

THE CHIPS ENVIRONMENTAL DIVISION WILL:

• Focus on the CHIPS program

• Ensure that Department of Commerce satisfies applicable 

environmental laws and requirements in connection with activities 

that receive funding through the CHIPS Incentives Program

• Work with federal and state agencies, applicants and contractors 

in an iterative process to ensure efficient, effective, and 

predictable reviews that result in informed and 

environmentally responsible decisions

Note: The CHIPS Environmental Division sits within the CHIPS Program Office in the 

National Institute of Standards and Technology (NIST) at the Department of Commerce.
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National Environmental Policy Act 

(NEPA) Overview
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HISTORY OF NEPA

• President Nixon signed NEPA into law on January 1, 1970.

• 42 U.S.C. 4321 et seq.

• NEPA established the country’s national environmental policy and set forth 

a process to implement it.

• NEPA is a procedural statute

• NEPA is a national policy, which ensures that federal agencies consider 

the environmental impacts of their decisions.
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PURPOSE OF NEPA

• “To declare a national policy that encourages productive and enjoyable 

harmony between man and his environment;

• to promote efforts that prevent or eliminate damage to the environment 

and biosphere and stimulate the health and welfare of man;

• to enrich the understanding of the ecological systems and natural 

resources important to the Nation; and

• to establish a Council on Environmental Quality.”

Sec. 2 [42 USC § 4321]
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PRIMARY OBJECTIVES OF NEPA

• Requires federal agencies to assess the environmental impact of all major 

Federal actions significantly affecting the quality of the human 

environment.

• To disclose, analyze, and consider environmental information as a criteria 

when making decisions

• To inform the public of potential impacts and alternatives and involve the 

public in decision making.

NEPA is a process, not an event.
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WHEN DOES NEPA APPLY?

MAJOR 

FEDERAL 

ACTIONS

Projects or programs 

entirely or partially 

funded by, assisted 

by, regulated by, 

conducted by, 

approved by, and/or 

permitted by a 

Federal Agency

MAJOR 

FEDERAL 

ACTIONS

Actions with effects 

that may be major 

and which are 

potentially subject to 

Federal control and 

responsibility

AFFECTING

will or may have an 

effect

HUMAN 

ENVIRONMENT

the natural and 

physical environment 

and the relationship 

of people to that 

environment

NEPA requires federal agencies to assess the environmental impact of all 

major Federal actions significantly affecting the quality of the human 

environment.
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KEY TERMS IN NEPA AND ITS REGULATIONS 

(40 CFR 1508.1)

ENVIRONMENTAL 

ASSESSMENT 

(EA)

Concise public document 

prepared by a Federal agency 

to aid an agency's compliance 

with the Act and support its 

determination of whether to 

prepare an environmental 

impact statement or a finding 

of no significant impact

FINDING OF NO 

SIGNIFICANT IMPACT 

(FONSI)

Document by a Federal agency 

briefly presenting the reasons 

why an action, not otherwise 

categorically excluded (§

1501.4 of this chapter), will 

not have a significant effect 

on the human environment 

and for which an environmental 

impact statement therefore will 

not be prepared

ENVIRONMENTAL IMPACT 

STATEMENT 

(EIS)

Detailed written statement as 

required by NEPA section 

102(2)(C)
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THE KEY NEPA PROCESS

No

Public Involvement/

EPA Comments

Agency Identifies

Need for Action

Implementation of Action

Decision

Environmental Effects Likely

to Be Significant?

No

Finding of No Significant Impact

(FONSI)

Significant

Environmental Effects?

Yes

Yes

Draft Environmental

Impact Statement (EIS)*

Record of Decision (ROD)

Final EIS

Environmental

Assessment (EA)

Publish Notice of Intent

to Prepare an EIS The agency identifies that it is involved in 

a proposed Major federal action under NEPA. This would 

include projects or programs entirely or partially funded by, 

assisted by, regulated by, conducted by, approved by, and 

permitted by a Federal Agency.

The agency then determines if the environmental effects 

are likely to be significant. To assist in this determination, the 

agency prepares the Environmental Assessment (EA).

If the EA demonstrates that the proposed action would not have 

significant effects, a Finding of No Significant Impacts (FONSI) is 

prepared. If the agency finds there are significant environmental 

impacts during the process of preparing an EA, the agency 

prepares a notice of intent (NOI) to prepare an environmental 

impact statement, EIS.

After the draft EIS is completed, the draft EIS is subject to public 

comments including the impacted communities and EPA 

comments. The agency will consider all the comments from EPA 

and the public to finalize the EIS. Once the EIS is finalized, then 

the record of decision (ROD) is issued and then the actions can 

be implemented.
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WHO CAN PREPARE NEPA DOCUMENTS 

FOR THE CHIPS PROGRAM?

• EAs and EISs can be prepared by NIST, the applicant, 

or a contractor, but the agency is responsible for the 

documents’ contents, and must independently 

evaluate any material prepared by others

• NIST can also adopt an EA or EIS prepared by 

another federal agency

• NIST (or a contractor hired by the agency) must draft 

the FONSI or ROD
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Additional

Environmental Authorities
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FEDERAL LAWS INCLUDE:

• Section 7 of the Endangered Species Act,

• Section 404 of the Clean Water Act,

• Section 106 of the National Historic 

Preservation Act,

• the Clean Air Act,

• Executive Order 11988, Floodplain 

Management, and

• Executive Order 12898, Federal Actions to 

Address Environmental Justice in Minority 

Populations and Low-Income Populations

What other laws 

and executive 

orders affect the 

environmental 

review process? 
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CHIPS Environmental 

Review Process
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ENVIRONMENTAL REVIEW FOR THE 

FIRST FUNDING OPPORTUNITY

The Department intends to prioritize applications that demonstrate a clear path to meeting 

permitting requirements in a timely manner. 

Review Environmental Questionnaire (EQ)

• CPO environmental questionnaire will be mandatory for all applications

Attend upcoming webinar, which will review EQ in detail

Submit EQ with pre-application (if pre-application is submitted) or application

• All applicants are encouraged to submit a pre-application because this gives CPO an opportunity to 

provide feedback before the applicant submits a full application

CHIPS Environmental Division will use the EQ to assess environmental risks and merits of 

application

Information in application will be used to inform NEPA review and applicant's separate environmental 

permitting obligations

1

2

3

4

5
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OTHER WAYS TO START PREPARING FOR 

ENVIRONMENTAL REVIEW PROCESS

Applicants are encouraged to begin assessing potential environmental impacts as soon 

as possible.

Prompt completion of the NEPA process depends on the applicant:

• Ensuring adequate expertise is available, either in-house or through contractors

• Preparing information and analysis as soon as they can (including a draft EA or EIS)

• Being responsive to agency requests for additional information and analysis to ensure a 

timely review
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 18

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 18

ROLES DURING ENVIRONMENTAL REVIEW PROCESS

CHIPS Environmental Division

• Responsible for complying with NEPA

• Work with applicant and contractor in an iterative 

process to ensure smooth and timely completion 

of the NEPA process

• Will request the applicant prepare required 

documentation and technical studies, support 

consultations, and provide other information as 

requested through the NEPA process, under the 

supervision of the CHIPS Environmental Division

• Reviews environmental review document prepared 

by applicant, consulting with relevant Federal, 

state, Tribal, and local agencies as required or 

appropriate

• Reviews and assesses applicant’s plans for 

obtaining construction and operation 

environmental permits

• Oversees public involvement in the environmental 

review of CHIPS Incentives Program proposed 

actions

Applicants

Strongly encouraged to:

• Familiarize themselves with NEPA 

• Ensure that their project teams have the 

necessary NEPA expertise, which could include 

hiring companies or consultants that specialize in 

NEPA

• Prepare for the environmental review process as 

early as possible by:

• gathering data and analysis, 

• engaging experts or outside contractors, 

• drafting materials

• Prepare environmental review documents under 

the supervision of the CHIPS environmental 

review team 

• Obtain any necessary permits, such as Clean 

Water Act or Clean Air Act permits.
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 19

STATE ENVIRONMENTAL REVIEWS

• A number of states require environmental reviews similar to the National 

Environmental Policy Act (NEPA).

• In some cases, the state review may precede the CHIPS NEPA process, 

and the CHIPS Environmental Division may rely on information gathered 

through the state process for the NEPA process.

• In other cases, CHIPS will work with the applicant and the state to 

prepare a single document that meets both state and Federal 

requirements.

• While the CHIPS environmental team cannot adopt a non-Federal 

environmental review document, the CHIPS Environmental Division can 

incorporate that analysis into its NEPA review.
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 20

Resources
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 21

Resources

• Visit CHIPS.gov for resources, including:

• Environmental Compliance overview and FAQs

• Notice of Funding Opportunity

• Vision for Success paper

• Applicant guides and templates

• Webinar schedule (and recordings of prior webinars)

• Join our mailing list

• Contact us

• askchips@chips.gov – general inquiries and NEPA questions

• apply@chips.gov – application-related inquiries and NEPA 

questions
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 22

Thank you