House Passes Bill Requiring Registration Of Cryptocurrency Mining Operations, Impact Study

On December 13, the House passed House Bill 1476 sponsored by Rep. Greg Vitali (D-Delaware), Majority Chair of the House Environmental Resources and Energy Committee, requiring registration of cryptocurrency mining operations and an impact study of their operations by the Department of Environmental Protection and the Public Utility Commission.

The bill passed on a party-line vote of 102 to 101, Republicans opposing.

The PJM Interconnection has identified data centers (including cryptocurrency operations) as “huge, huge consumers of power” and are a major driver of increased electrical demand across the regional electric grid between now and 2037.  Read more here.

Cryptocurrency operations typically use electrical power directly from electric generation facilities preventing that energy from getting onto the electrical grid.

PJM also said at a House hearing December 11, there is also a gap in electric generation developing where power plants are retiring faster because of economic and environmental reasons than they can be replaced by renewable energy generation and energy storage.  Read more here.

This generation gap is potentially threatening the reliability of the grid and it is something PJM is trying to deal with.  Read more here.

In Pennsylvania, no agency was tracking the power they used to better understand the impact they were having on the grid, wholesale electricity prices and the environment.

With no specific reporting requirements and inconsistent permitting, the only way to become aware of new or expanded cryptocurrency operations is to rely on media reports or reports from residents when new operations suddenly show up next to them, according to PennFuture.  Read more here.

There have been examples in Pennsylvania-- Clearfield and Elk counties-- where cryptocurrency operations have been located next to shale gas well pads drawing natural gas directly from the wells to power very loud electric generators for the data centers.  Read more here.

Other operations have attached themselves to waste coal-fired power plants or have plans to develop next to nuclear power plants.   Read more here.

House Bill 1476 would require cryptocurrency operations to register their operations with DEP reporting--

-- Number and location of their facilities;

-- Amount of electric energy consumed;

-- Sources of the electricity and the type of fuel used;

-- Greenhouse gas emissions from that electric generation;

-- Water used in cooling the data center operation; and

-- Other information required by DEP.

DEP, in consultation with the Public Utility Commission, is required to issue a report within one year--

-- Providing an overview of cryptocurrency operations in the state based on the reports submitted on energy and water use, greenhouse gas emissions, etc.;

-- Anticipated increases in new operations or expansions of facilities;

-- Potential impacts of preventing electricity used by cryptocurrency operations from going onto the grid, including on wholesale electricity prices;

-- Other environmental impacts: water use, electronic waste generation;

-- Potential public hearing and impacts from noise generation.

House Bill 1476 now moves to the Senate for consideration.

Rep. Vitali’s related bill-- House Bill 1282 exempting cryptocurrency data mining facilities from the state tax credit for data centers (sponsor summary)- was reported out of the House Environmental Resources and Energy Committee June 6 and is now in the House Rules Committee.

(Photos: WESA cryptocurrency mining operation attached to a shale gas well in Elk County; Proposed cryptocurrency operation next to the Talen Susquehanna Nuclear Power Plant in Luzerne County.)

Related Article - Cryptocurrency:

-- U.S. Senate Hearing: Energy, Environmental Impacts Of Cryptocurrency Mining In Pennsylvania. [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Dec.  9 to 15 - 500 Conventional Abandoned Well Violations; 25 Days Of Shale Gas Water Withdrawals Without Permission; Wastewater Pipeline Spill  [PaEN] 

-- PA Oil & Gas Industry Compliance So Far In 2023 - It Isn’t Pretty   [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - December 16  [PaEN]

-- DEP Posted 68 Pages Of Permit-Related Notices In December 16 PA Bulletin  [PaEN]  

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-- House Passes Bill Requiring Registration Of Cryptocurrency Mining Operations, Impact Study  [PaEN] 

-- Carbon County Residents Urge DEP To Deny Stronghold Digital Mining, Inc. Request To Burn Tires To Fuel Its Cryptocurrency Mining Operation At The Panther Creek Power Plant  [PaEN] 

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-- House Passes Bill Requiring Registration Of Cryptocurrency Mining Operations, Impact Study  [PaEN] 

-- Carbon County Residents Urge DEP To Deny Stronghold Digital Mining, Inc. Request To Burn Tires To Fuel Its Cryptocurrency Mining Operation At The Panther Creek Power Plant  [PaEN] 

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[Posted: December 13, 2023]  PA Environment Digest