What This Bill Does
This bill requires the Environmental Protection Agency to create new rules so that large cryptocurrency mining operations must report their air pollution and greenhouse gas emissions. The bill also requires a detailed government study of how cryptocurrency mining affects the environment and energy use across the United States.
Who It Affects
Cryptocurrency mining companies that use 5 megawatts or more of electrical power (or multiple smaller operations owned by the same company that together use 5 megawatts or more). The Environmental Protection Agency, Department of Energy, and Congress are responsible for implementing the bill's requirements.
Key Provisions
- The EPA must issue a proposed rule within one year requiring large crypto-asset mining operations to report as covered facilities and to measure both direct emissions (from sources they operate) and indirect emissions (from purchased electricity) (Sec. 3(a)(1))
- The EPA must issue a final rule within 180 days after the public comment period ends on the proposed rule (Sec. 3(a)(2))
- The EPA must conduct a comprehensive study within one year examining the number and location of mining operations, greenhouse gas emissions, ecological impacts, public health effects, water use, noise pollution, and energy consumption patterns (Sec. 4(a) and 4(b))
- The EPA must submit a report on the study results to Congress and publish it on public websites within 18 months of the bill becoming law (Sec. 4(d))
- Crypto-asset mining facilities are added to federal data center energy efficiency requirements (Sec. 5)
What Changes
If this bill becomes law, large cryptocurrency mining operations would have to track and report how much air pollution and greenhouse gases they produce directly and from their electricity use. Federal agencies would gather detailed information about where mining operations are located, how much energy they use, whether they comply with clean air laws, and what environmental damage they cause. This information would be made public.
Important Definitions
- **Crypto-asset mining**: The process of performing calculations to add a valid block of data to the blockchain, typically in exchange for a reward or fee
- **Qualifying crypto-asset mining operation**: A single facility using 5 megawatts or more of electrical power, or multiple facilities owned by the same company that together use 5 megawatts or more
- **Scope 1 emissions**: Greenhouse gases directly from sources operated or controlled by the mining operation
- **Scope 2 emissions**: Greenhouse gases from purchased electricity, steam, heat, or cooling
- **Blockchain**: A distributed record-keeping system where data are shared across a network and linked using encryption (a security system using codes)
- **Air pollutant**: Any substance that has the meaning given in the Clean Air Act
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 661
To require an interagency study on the environmental and energy impacts
of crypto-asset mining, to assess crypto-asset mining compliance with
the Clean Air Act, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 6, 2023
Mr. MARKEY (for himself, Mr. MERKLEY, and Mr. SANDERS) introduced the
following bill; which was read twice and referred to the Committee on En-
vironment and Public Works
A BILL
To require an interagency study on the environmental and
energy impacts of crypto-asset mining, to assess crypto-
asset mining compliance with the Clean Air Act, and
for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Crypto-Asset Environ-
4
mental Transparency Act of 2023’’.
5
SEC. 2. DEFINITIONS.
6
In this Act:
7
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(1) ADMINISTRATOR.—The term ‘‘Adminis-
1
trator’’ means the Administrator of the Environ-
2
mental Protection Agency.
3
(2) AIR POLLUTANT.—The term ‘‘air pollutant’’
4
has the meaning given the term in section 302 of the
5
Clean Air Act (42 U.S.C. 7602).
6
(3) BLOCK.—The term ‘‘block’’ means a group
7
of data stored as a single record in a blockchain.
8
(4)
BLOCKCHAIN.—The
term
‘‘blockchain’’
9
means a distributed ledger technology in which—
10
(A) the data are shared across a network
11
that creates a digital ledger of verified trans-
12
actions or information among network partici-
13
pants; and
14
(B) the data are typically linked using
15
cryptography to maintain the integrity of the
16
ledger and execute other functions, including
17
transfer of ownership or value.
18
(5) CONSENSUS MECHANISM.—The term ‘‘con-
19
sensus mechanism’’ means a process to achieve
20
agreement among network participants on the cur-
21
rent state of a blockchain.
22
(6) CRYPTO-ASSET.—The term ‘‘crypto-asset’’
23
means a digital asset, which may be a medium of ex-
24
change, a representation of value, or both, for which
25
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•S 661 IS
generation or ownership records of the digital asset
1
are recorded in a distributed ledger technology that
2
relies on cryptography.
3
(7) CRYPTO-ASSET MINING.—The term ‘‘crypto-
4
asset mining’’ means the process of performing com-
5
putations to add a valid block of data to the
6
blockchain, typically in exchange for a reward or fee.
7
(8) POWER
LOAD.—The term ‘‘power load’’
8
means the amount of electrical power, in megawatts,
9
that can be consumed by a qualifying crypto-asset
10
mining operation.
11
(9) QUALIFYING CRYPTO-ASSET MINING OPER-
12
ATION.—The term ‘‘qualifying crypto-asset mining
13
operation’’ means—
14
(A) an individual crypto-asset mining facil-
15
ity that has a power load that is greater than
16
or equal to 5 megawatts; or
17
(B) multiple crypto-asset mining facilities
18
that—
19
(i) are owned by the same company;
20
and
21
(ii)(I) each have a power load that is
22
less than 5 megawatts; but
23
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•S 661 IS
(II) have a cumulative power load
1
that is greater than or equal to 5
2
megawatts.
3
(10) SCOPE 1 EMISSIONS.—The term ‘‘scope 1
4
emissions’’ means greenhouse gas emissions directly
5
from sources that are operated, controlled, or owned
6
by an individual or entity performing a qualifying
7
crypto-asset mining operation.
8
(11) SCOPE 2 EMISSIONS.—The term ‘‘scope 2
9
emissions’’ means indirect greenhouse gas emissions
10
associated with the purchase of electricity, steam,
11
heat, or cooling by an individual or entity per-
12
forming a qualifying crypto-asset mining operation.
13
(12)
SECRETARY.—The
term
‘‘Secretary’’
14
means the Secretary of Energy.
15
SEC. 3. COMPLIANCE WITH THE CLEAN AIR ACT.
16
(a) RULEMAKING REQUIRED.—
17
(1) PROPOSED REGULATION.—Not later than 1
18
year after the date of enactment of this Act, the Ad-
19
ministrator shall, pursuant to section 114(a) of the
20
Clean Air Act (42 U.S.C. 7414(a)), issue a notice of
21
proposed rulemaking to revise part 98 of title 40,
22
Code of Federal Regulations (as in effect on the
23
date of enactment of this Act)—
24
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•S 661 IS
(A) to require qualifying crypto-asset min-
1
ing operations to report as covered facilities
2
under subpart A of that part;
3
(B) to add a new subpart to that part that
4
includes qualifying crypto-asset mining oper-
5
ations as a source category;
6
(C) to include in the new subpart created
7
under subparagraph (B) appropriate calculation
8
methodologies, reporting guidelines, and moni-
9
toring operations of, with respect to qualifying
10
crypto-asset mining operations, scope 1 emis-
11
sions and scope 2 emissions; and
12
(D) to designate the qualifying crypto-
13
asset mining operations source category estab-
14
lished pursuant to subparagraph (B) as a
15
source category that is subject to greenhouse
16
gas reporting requirements and related moni-
17
toring, recordkeeping, and reporting require-
18
ments under section 98.2 of that title, regard-
19
less of whether a qualifying crypto-asset mining
20
operation emits at least 25,000 metric tons of
21
carbon dioxide-equivalent.
22
(2) FINAL
RULE.—Not later than 180 days
23
after the date on which the public comment period
24
on the proposed rule under paragraph (1) closes, the
25
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•S 661 IS
Administrator shall issue a final rule revising part
1
98 of title 40, Code of Federal Regulations.
2
(b) ASSESSMENT.—Not later than 1 year after the
3
date on which the Administrator finalizes the rule required
4
under subsection (a), the Administrator shall, pursuant to
5
section 114(a) of the Clean Air Act (42 U.S.C. 7414(a)),
6
issue requests for information for the purpose of con-
7
ducting an assessment of, with respect to qualifying
8
crypto-asset mining operations, the permit programs
9
under the Clean Air Act (42 U.S.C. 7401 et seq.), which
10
shall include identifying the extent to which any qualifying
11
crypto-asset mining operations are improperly operating
12
without a valid and current permit under that Act.
13
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
14
authorized to be appropriated to the Administrator to
15
carry out this section $5,000,000 for fiscal year 2023, to
16
remain available until expended.
17
(d) SAVINGS PROVISION.—Nothing in this section
18
limits the ability of the Administrator to require the re-
19
porting of emissions of any type in another source cat-
20
egory.
21
SEC. 4. IMPACT STUDY.
22
(a) IN GENERAL.—Not later than 1 year after the
23
date of enactment of this Act, the Administrator, in con-
24
sultation with the Secretary, the Administrator of the En-
25
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•S 661 IS
ergy Information Administration, the Federal Energy
1
Regulatory Commission, and the head of any other Fed-
2
eral agency the Administrator or the Secretary determines
3
appropriate, shall conduct a study on the environmental
4
impacts of crypto-asset mining in the United States.
5
(b) STUDY REQUIREMENTS.—The study required
6
under subsection (a) shall include—
7
(1) the number and location of any existing or
8
planned qualifying crypto-asset mining operation;
9
(2) the amount of greenhouse gas emissions
10
and other air pollutants that are—
11
(A) released by an onsite energy source;
12
and
13
(B) attributable to offsite-generated elec-
14
tricity, steam, heat, or cooling provided to a
15
qualifying crypto-asset mining operation;
16
(3) the anticipated increase of new, and expan-
17
sion of existing, qualifying crypto-asset mining oper-
18
ations;
19
(4) the potential impacts of electric energy con-
20
sumption by qualifying crypto-asset mining oper-
21
ations, including by prolonging the use of fossil fuel
22
generators, on the ability of the United States to
23
achieve the greenhouse gas emission reductions nec-
24
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•S 661 IS
essary to keep global warming below 1.5 degrees
1
Celsius compared to pre-industrial levels;
2
(5) the ecological impacts, including ecological
3
impacts associated with electronic waste generation
4
and the use or discharge of cooling water, caused by
5
qualifying crypto-asset mining operations;
6
(6) the potential public health impacts due to
7
the reduced air and water quality and increased
8
water stress on communities near qualifying crypto-
9
asset mining operations;
10
(7) the potential public health impacts from
11
greenhouse gas emissions released by qualifying
12
crypto-asset mining operations;
13
(8) the potential public health and ecological
14
impacts from noise generated by qualifying crypto-
15
asset mining operations;
16
(9) the amount of electric energy consumed by
17
each qualifying crypto-asset mining operation, in-
18
cluding the time of use of electricity and the poten-
19
tial grid stress posed by the power load of the quali-
20
fying crypto-asset mining operation;
21
(10) the source of electric energy consumed by
22
each qualifying crypto-asset mining operation;
23
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•S 661 IS
(11) the aggregated energy-use statistics and
1
greenhouse gas emissions statistics for qualifying
2
crypto-asset mining operations in the United States;
3
(12) an analysis of energy use and greenhouse
4
gas emissions by type of consensus mechanism;
5
(13) an analysis of demand-response programs
6
negotiated between qualifying crypto-asset mining
7
operations and electric utilities;
8
(14) an analysis of potential rate-design meas-
9
ures that could be implemented by State and local
10
regulators to reduce the energy consumption and de-
11
pendence on fossil fuel energy sources of crypto-
12
asset mining operations;
13
(15) a geospatial assessment of the extent to
14
which crypto-asset mining operations are located
15
within environmental justice communities, as defined
16
by the Administrator or within the Climate and Eco-
17
nomic Justice Screening Tool of the Council on En-
18
vironmental Quality; and
19
(16) an identification of, and recommendations
20
for, best practices for data types, data sources, and
21
methodologies for accurately measuring, modeling,
22
and tracking the environmental impacts of crypto-
23
asset mining operations in the United States in the
24
future.
25
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•S 661 IS
(c) PUBLIC COMMENT.—Before conducting the study
1
required by subsection (a), the Administrator shall provide
2
an opportunity for public comment and advice relevant to
3
conducting the study.
4
(d) REPORT
TO CONGRESS.—Not later than 18
5
months after the date of enactment of this Act, the Ad-
6
ministrator shall submit to the Committees on Energy and
7
Commerce and Science, Space, and Technology of the
8
House of Representatives and the Committees on Environ-
9
ment and Public Works and Energy and Natural Re-
10
sources of the Senate, and publish on the public websites
11
of the Environmental Protection Agency and the Depart-
12
ment of Energy, a report that contains the results of the
13
study required by subsection (a).
14
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
15
authorized to be appropriated to the Administrator to
16
carry out this section $5,000,000 for fiscal year 2023, to
17
remain available until expended.
18
SEC. 5. ENERGY EFFICIENCY OF DATA CENTER BUILDINGS.
19
Section 453(a)(1) of the Energy Independence and
20
Security Act of 2007 (42 U.S.C. 17112(a)(1)) is amend-
21
ed—
22
(1) in subparagraph (A), by striking ‘‘or’’ at
23
the end after the semicolon;
24
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•S 661 IS
(2) in subparagraph (B), by striking the period
1
at the end and inserting ‘‘; or’’; and
2
(3) by adding at the end the following:
3
‘‘(C) a facility in which 2 or more com-
4
puters perform logical operations to mine or
5
create crypto-asset (as defined in section 2 of
6
the Crypto-Asset Environmental Transparency
7
Act of 2023).’’.
8
Æ
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