Press release
Schumer Doubles Down On Efforts To 1) Secure New Federal Investment To Attract Semiconductor Fab To STAMP And 2) Launches $9.5+ Billion Push For New Hydrogen Fuel Investments In Bipartisan Infrastructure Bill And Budget Reconciliation Bill To Supercharge Plug Power’s STAMP And Rochester Factories
With STAMP In Contention For New $17B Samsung Chip Fab, Schumer-Led USICA Creates First-Ever Incentives To Land New Semiconductor Fab At STAMP & Schumer-Led Infrastructure Bills Would Put Plug Power’s WNY Workforce And STAMP At Forefront Of New Clean Hydrogen Economy
Schumer: Fed Funding Will Be The Green Light STAMP Needs To Lead Tech Industries
In his second personal visit to the STAMP campus, U.S. Senate Majority Leader Charles E. Schumer today launched his two-pronged plan to establish STAMP as a domestic hub for the semiconductor and clean energy industries. Schumer said his push would grow and attract new jobs and tenants to the tech campus, to boost the Western New York economy and grow new green economy and advanced manufacturing jobs.
Specifically, Schumer’s two-pronged plan:
1) Doubles down on the senator’s longstanding efforts to attract new semiconductor manufacturing operations to STAMP, such as the new $17 billion Samsung semiconductor chip fab, through the $52 billion in federal incentives for domestic semiconductor manufacturing and R&D included in the Schumer-led U.S. Innovation and Competition Act (USICA);
2) Launches a push to support Plug Power’s recently-announced green hydrogen fuel production facility at STAMP by securing new hydrogen investments through swift enactment of the recently Senate-passed Bipartisan Infrastructure Bill, the Infrastructure Investment and Jobs Act of 2021 (IIJA) and during negotiations for the accompanying Budget Reconciliation Bill.
“The WNY STAMP Campus is the perfect place to establish the next global hub for the semiconductor and clean energy industries,” said Senator Schumer. “Now with STAMP in contention to land Samsung’s $17 billion chip fab and its first tenant Plug Power is building North America’s largest green hydrogen fuel plant here, there’s no site better suited to lead the next tech revolution, and that’s because STAMP, with its shovel-ready facilities, low-cost and reliable utility grid, and top-notch workforce spanning from Buffalo to Rochester and beyond, is tailor-made to suit large-scale tech development. The USICA and IIJA, which I have already secured Senate passage of, and the Budget Reconciliation Bill, which I am working on negotiating now, will all work together to give STAMP the green light it needs to attract and lead established and emerging tech industries.”
Schumer has been working since January to urge Samsung to select STAMP as the site of their new semiconductor fab. The senator argued that the $17 million facility would help to establish New York as a global hub for the semiconductor industry and establish STAMP as a prime location for future tech development. Last month, Schumer revealed that following his personal calls to Samsung top brass where he expressed his strong support for the project coming to Western New York and emphasized that his efforts were now backed by incentives in the USICA, officials from the company visited the campus to take a first-hand look at the facilities and confirmed that the site was very much still in the running for the new fab. Schumer has also pushed STAMP with the CEOs of Intel and Micron as an ideal site for them to expand and build new manufacturing operations.
In June, Schumer announced senate passage of the USICA, which combined his Endless Frontier Act, other bipartisan competitiveness bills, and $52 billion in emergency supplemental appropriations to implement the semiconductor-related manufacturing and R&D programs the senator authorized in last year’s National Defense Authorization Act and a program to support legacy chip production that is essential to the auto industry, the military, and other critical industries. Schumer is now working with the House to pass the historic federal semiconductor incentives into law as well as supporting the recently introduced FABS Act that will also help develop and protect U.S. semiconductor supply chain capabilities through a new investment tax credit program.
A detailed breakdown of the $52 billion in supplemental appropriations appears below:
· $49.5 billion allocated over 5 years for a CHIPS for America Fund. Funding must be used to implement the Commerce Department semiconductor incentive and R&D programs authorized by the FY21 NDAA (Sec. 9902 & 9906). Within the fund, the following appropriations are available:
· Incentive Program: $39 billion appropriated upfront and allocated over 5 years to implement the programs authorized in Sec. 9902. $2 billion is provided to solely focus on legacy chip production to advance the economic and national security interests of the United States.
o $19 billion in FY22, including the $2 billion legacy chip production funding
o $5 billion each year, FY23 through FY26
· Commerce R&D programs: $10.5 billion appropriated upfront and allocated over 5 years to implement programs authorized in Sec. 9906, including the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program, and other R&D programs authorized in Sec. 9906.
o $5 billion in FY22:
§ $2.5 billion for advanced packaging
§ $2 billion for NSTC
§ $500 million for other related R&D programs
For use across the advanced packaging, NSTC, and other related R&D programs, the following would be provided:
o $2 billion in FY23
o $1.3 billion in FY24
o $1.1 for FY25 and FY26
· $2 billion for a CHIPS for America Defense Fund: Funding is appropriated up front and $400 million is allocated each year, over 5 years for the purposes of implementing programs authorized in Sec. 9903(b), providing support for R&D, testing and evaluation, workforce development, and other related activities, in coordination with the private sector, universities, and other Federal agencies to support the needs of the Department of Defense and the intelligence community.
· $500 million for a CHIPS for America International Technology Security and Innovation Fund: Funding is appropriated upfront and $100 million each year, allocated over 5 years to the Department of State, in coordination with the U.S. Agency for International Development, the Export-Import Bank, and the U.S. International Development Finance Corporation, for the purposes of coordinating with foreign government partners to support international information and communications technology security and semiconductor supply chain activities, including supporting the development and adoption of secure and trusted telecommunications technologies, semiconductors, and other emerging technologies.
Schumer is also throwing his support behind Plug Power’s efforts to expand their clean energy presence in New York. Schumer said the new Hydrogen fuel investments he is pushing to enact through the Bipartisan Infrastructure Investment and Jobs Act (IIJA) that passed the Senate this month and the Budget Reconciliation Bill that the Senate also advanced this month would help grow and expand Plug Power’s manufacturing plants in WNY. Specifically this fall Plug Power will break ground on building North America’s largest green hydrogen fuel production facility at STAMP and open a new gigafactory in Monroe County to manufacture hydrogen electrolyzers and hydrogen fuel cell components. Schumer said the visionary package of billions in new clean hydrogen energy investments in these bills come at the perfect time to power up new jobs and growth at Plug Power to jump start the 21st century hydrogen economy.
Schumer highlighted several of these new investments including:
· A new Hydrogen Fuel Production Tax Credit (PTC) included in the Budget Reconciliation Billthat would help enable Plug Power to grow and expand its green hydrogen fuel production levels at its sites, including the new STAMP site. Currently the STAMP facility is slated to employ 68 workers to make 45 tons per day of green hydrogen fuel, but Plug Power estimates the PTC will drive higher demand for green hydrogen powered equipment that in turn will enable Plug Power to produce and sell more green hydrogen fuel to supply fuel-cell-powered equipment and vehicles such as freight transportation, warehouse forklifts, and much more – some powered by fuel cells that will be manufactured at the upcoming Plug Power Gigafactory. That’s because the PTC will provide a tax credit worth up to $3/kilogram of hydrogen fuel produced, thus making this new green energy fuel cost-competitive. Plug Power estimates that 20-25 additional permanent jobs will be created for every additional 15 tons per day (TPD) of fuel produced. Ultimately, Plug Power’s goal is to produce as much as 500 TPD of green hydrogen fuel across its planned U.S. production facilities including the STAMP plant. 500 TPD would create over 700 new additional permanent high paying jobs at Plug Power’s fuel manufacturing facilities.
· $1 Billion over Fiscal Year 22-26 for a new Department of Energy Electrolyzer demonstration, commercialization and deployment program intended to decrease the cost of making clean hydrogen production from electrolyzers. Plug Power’s new Rochester gigafactory will manufacture electrolyzers which is equipment that coverts water into hydrogen fuel. Schumer said this investment, which is included in the Bipartisan Infrastructure Investment and Jobs Act (IIJA), will create new opportunities to partner with the Department of Energy to help drive demand for Plug Power’s innovative electrolyzers, and in turn, enable Plug Power to grow its WNY manufacturing workforce at STAMP which produces green hydrogen using these electrolyzers.
· $500 million in IIJA over FY22-26 for a new Department of Energy clean hydrogen production and recycling program to foster a clean hydrogen domestic supply chain in the U.S. Schumer said Plug Power’s WNY facilities would position the company to greatly benefit from this investment and become a major player in the new U.S. clean hydrogen supply chain industry. Schumer previously noted that Plug Power’s planned network of green hydrogen fuel production facilities, including the facility at STAMP, can be a national model in efforts to achieve the Biden administration’s goal to drastically reduce greenhouse gas emissions and create quality clean energy jobs.
· $8 billion in IIJA for the Department of Energy to establish four or more Regional Clean Hydrogen Hubs to demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen. Schumer said Western New York – anchored by STAMP and Plug Power’s new Gigafactory and Green Hydrogen Manufacturing Plant – would be well positioned to land one of these new industry-leading Hydrogen Hubs.
· The development of a national strategy and roadmap to facilitate a clean hydrogen economy. All around the globe, countries are recognizing the importance of hydrogen fuel and are developing strategies to grow their hydrogen economies. It is critical the United States creates a plan and maintains leadership – especially in green, renewably generated hydrogen – to foster U.S. companies like Plug Power and bolster national security.
· Hydrogen Fuel Cell Investment Tax Credit (ITC). Schumer also announced his push to continue the hydrogen fuel cell ITC which otherwise would begin to expire starting in 2022. The ITC provides a credit for the purchase of a fuel cell product, which helps defray the cost for consumers, including Plug Power’s customers, to switch over to hydrogen fuel cell-powered technology and equipment. Schumer explained that the fuel cell ITC is a critical stimulus for Plug Power’s success and its extension will help the company thrive and grow its PEM fuel cell production at its new Rochester Gigafactory and grow demand for its green hydrogen fuel produced at STAMP. This tax credit not only incentivizes businesses to purchase clean, American-made fuel cells and fuel from innovative companies like Plug Power, but it is also a proven job creator. For example Schumer cited that when he first visited Plug Power in 2010 at their Albany, NY headquarters the company had 87 employees, but by 2016 had grown to 330 employees and now employ 445 more in Western New York alone. With support from the ITC, Plug Power has now sold 40,000 fuel cell systems to its customers including Amazon, BMW, Walmart, and others to power forklifts and equipment now used in factories and distribution centers. The new Gigafactory will support Plug Power’s plans to both expand fuel cell production to power trucks, buses, airport service equipment, data center backup power, airplanes, and more, while the STAMP fuel production facility will supercharge the company to become a leading supplier of green hydrogen fuel.
Andy Marsh, President and CEO of Plug Power said, “Plug Power has been leading the charge in developing green hydrogen energy. We’re thrilled to have Leader Schumer and Congress play a key role in helping to bring affordable hydrogen to the market.”
GCEDC President & CEO Steve Hyde said, “The STAMP site was designed and is being built to enable the acceleration of new technologies and advances in manufacturing with our outstanding renewable energy and talent availability. The commitment by Plug Power to bring green hydrogen to the market with Project Gateway at STAMP, and of Senate Majority Leader Schumer to expand the benefits created by Plug Power and green hydrogen manufacturing, are true examples of STAMP’s vision being implemented to the benefit of Genesee County, our region and state, and for the future of our economy and environment.”
Schumer also outlined other wins for the region in the Bipartisan Infrastructure bill. The region will receive:
· $790,000 for the Genesee County Airport, $27,038,025 for Rochester’s Frederick Douglass Airport and $ 37,509,535 for Buffalo Niagara International Airport.
· For transit, over $94.5 million estimated for the Rochester-Genesee Regional Transportation Authority divided over five years.
· The region will also receive a sizable portion of the over $20 billion devoted for the Drinking Water and Clean Water State Revolving Funds, including a carve out within the Drinking Water State Revolving Fund to replace lead service lines in communities across New York.