LOC News
Details on Semiconductor Package Emerge This Week
The Joint Committee on Semiconductors (JSEMI) met this week and moved SB 4 out of committee with the -15 and -9 amendments. With a budget impact of $210 million, SB 4 next moves to the Ways and Means Committee. The bill includes two program allocations: $10 million for the newly established Industrial Lands Loan Fund for financial assistance to local governments to prepare sites for semiconductor industrial development; $10 million for the University Innovation Research Fund to leverage federal research grants for public universities investment. The remaining $190 million will go to:
- Development and acquisition of a site for semiconductor manufacturing;
- Semiconductor research and development; and
- Workforce development, including internships and apprenticeships.
SB 4 is a major accomplishment for the legislative process. There remains a concern that the proposal comes up short on issues related to the land use process, which is critical for attracting the generational investments envisioned by the CHIPS Act. Governor Kotek will have executive authority for selecting sites, but that process will allow for legal challenges, which will reduce certainty for a potential investor. The alternative was to name physical sites for selection in legislation, which would have provided greater certainty for investors.
More work will need to be undertaken to meet all of the recommendations from the Oregon Semiconductor Competitiveness Task Force. The LOC’s ongoing focus for the Semiconductor Package will be to direct advocacy efforts toward sunset extensions for Enterprise Zones, SIP-Gainshare, funding for Regionally Significant Industrial Sites (RSIS), and a Research and Development Tax Credit.
So far, city testimony has been outstanding. It is going to take a combined effort to get the remaining components of the semiconductor package across the finish line and make sure Oregon can take advantage of the generational investment from the CHIPS Act.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 3/17/23