August 29, 2022

Tomorrow’s Federal Register will include Executive Order (E.O) 14080 from President Joe Biden entitled, “Implementation of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act” that was signed into law on August 9, 2022. As you will recall, SWACCA successfully advocated for the application of Davis-Bacon prevailing wage requirements to over $50 billion in federal funds to incentivize the construction of domestic microchip manufacturing facilities.

The E.O. stresses that these investments will “create well-paying, high-skilled jobs in construction, manufacturing, and maintenance.” To this end, the EO directs federal agencies to prioritize the generation of such benefits as “well-paying, high-skilled union jobs.”  Moreover, the E.O. provides that meeting the CHIPS Act’s objectives will require effective implementation of the Act by the Administration in collaboration with labor unions and other worker organizations.

To further this collaboration, E.O. 14080 establishes the “CHIPS Implementation Steering Council” with the purpose of coordinating policy development to ensure the effective implementation of the CHIPS Act. The Co-Chairs of the Council will be the Assistant to the President for Economic Policy, the Assistant to the President for National Security Affairs, and the Director of the Office of Science and Technology Policy. The E.O. provides that the Co-Chairs of the Council may consult with (among other parties) employers, labor unions and worker organizations to provide individual perspectives and advice to the Steering Council on the effective implementation of the Act. The Council will also include: (1) the Secretary of Labor; (2) the Secretary of the Treasury; (3) the Secretary of Defense; (4) the Secretary of Commerce; (5) the Secretary of State; (6) the Secretary of Energy; (7) the Director of the Office of Management and Budget; (8) the Administrator of the Small Business Administration; (9) the Director of National Intelligence; (10) the Assistant to the President for Domestic Policy; (11) the Chair of the Council of Economic Advisers; (12) the National Cyber Director; (13) the Director of the National Science Foundation; and (14) the heads of such other executive departments, agencies, and offices as the Co-Chairs may from time to time invite to participate.

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