Sec. 1821. Semiconductor incentive grants
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In this section— the term appropriate committees of Congress means— the Select Committee on Intelligence, the Committee on Commerce, Science, and Transportation, the Committee on Foreign Relations, the Committee on Armed Services, the Committee on Appropriations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Homeland Security and Governmental Affairs of the Senate; and the Permanent Select Committee on Intelligence, the Committee on Energy and Commerce, the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Science, Space, and Technology, the Committee on Appropriations, the Committee on Financial Services, and the Committee on Homeland Security of the House of Representatives; the term covered entity means a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to construct, expand, or modernize a facility relating to the fabrication, assembly, testing, advanced packaging, or advanced research and development of semiconductors; the term covered incentive means an incentive offered by a governmental entity to a covered entity for the purposes of constructing within the jurisdiction of the governmental entity, or expanding or modernizing an existing facility within that jurisdiction, a facility described in paragraph (2); the term governmental entity means a State or local government; the term Secretary means the Secretary of Commerce; and the term semiconductor has the meaning given the term by the Secretary.
The Secretary shall establish in the Department of Commerce a program that, in accordance with the requirements of this section, provides grants to covered entities to incentivize investment of semiconductor fabrication facilities, or assembly, testing, advanced packaging, or advanced research and development of semiconductors in the United States. A covered entity shall submit to the Secretary an application that describes the project for which the covered entity is seeking a grant under this section.
In order for a covered entity to qualify for a grant under this section, the covered entity shall demonstrate to the Secretary, in the application submitted by the covered entity under subparagraph (A), that— the covered entity has a documented interest in constructing, expanding, or modernizing a facility described in subsection (a)(2); and with respect to the project described in clause (i), the covered entity has— been offered a covered incentive; made commitments to worker and community investment, including through— training and education benefits paid by the covered entity; and programs to expand employment opportunity for economically disadvantaged individuals; and secured commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals.
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— confirms that the covered entity has satisfied the eligibility criteria under subparagraph (B); determines that the project to which the application relates is in the interest of the United States; and has notified the appropriate committees of congress 15 days before making any commitment to provide a grant to any covered entity that exceeds $10,000,000; and the Secretary may consider whether— the covered entity has previously received a grant made under this subsection; the governmental entity offering the applicable covered incentive has benefitted from a grant previously made under this subsection; and to the extent practicable, the covered entity is considered a small business concern, as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 ), notwithstanding section 121.103 of title 13, Code of Federal Regulations.
The Secretary shall not award more than $3,000,000,000 to a covered entity under this subsection. A covered entity that receives a grant under this subsection may only use the grant amounts to— finance the construction, expansion, or modernization of a facility described in subsection (a)(2), as documented in the application submitted by the covered entity under paragraph (2)(A), or for similar uses in state of practice and legacy facilities, as determined necessary by the Secretary for purposes relating to the national security and economic competitiveness of the United States; support workforce development for the facility described in subparagraph (A); or support site development for the facility described in subparagraph (A).
The Secretary shall recover the full amount with interest of a grant provided to a covered entity under this subsection if— as of the date that is 5 years after the date on which the Secretary makes the grant, the project to which the grant relates has not been completed, except that the Secretary may issue a waiver with respect to the requirement under this subparagraph if the Secretary determines that issuing such a waiver is appropriate and in the interests of the United States; or during the applicable term with respect to the grant, the covered entity engages in any joint research or technology licensing effort— with the Government of the People’s Republic of China, the Government of the Russian Federation, the Government of Iran, the Government of North Korea, or other foreign entity of concern; and that relates to a sensitive technology or product, as determined by the Secretary; and the Secretary shall recover up to the full amount with interest of a grant provided to a covered entity if the Secretary determines that commitments required under paragraph
(2)have not been fully implemented, except that the Secretary may issue a waiver with respect to the requirement under this subparagraph if the Secretary determines that issuing such a waiver is appropriate and in the interests of the United States. In carrying out the program established under subsection (b), the Secretary shall consult and coordinate with the Secretary of State and the Secretary of Defense. The Inspector General of the Department of Commerce shall— not later than 2 years after the date of enactment of this Act, and biennially thereafter until the date that is 10 years after that date of enactment, conduct a review of the program established under subsection (b), which shall include, at a minimum— a determination of the number of instances in which grants were provided under that subsection during the period covered by the review in violation of a requirement of this section; an evaluation of how— the program is being carried out, including how recipients of grants are being selected under the program; and other Federal programs are leveraged for manufacturing, research, and training to complement the grants awarded under the program; and a description of the outcomes of projects supported by grants made under the program, including a description of— facilities described in subsection (a)(2) that were constructed, expanded, or modernized as a result of grants made under the program; research and development carried out with grants made under the program; and workforce training programs carried out with grants made under the program, including efforts to hire individuals from disadvantaged populations; and submit to the appropriate committees of Congress the results of each review conducted under paragraph (1).
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Sec. 1821
Semiconductor incentive grants
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