[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9457 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 9457
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 HOUSE OF REPRESENTATIVES
December 7, 2022
Mr. Huffman (for himself and Ms. Bonamici) introduced the following
bill; which was referred to the Committee on Energy and Commerce
_______________________________________________________________________
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Crypto-Asset Environmental
Transparency Act of 2022''.
SEC. 2. FINDINGS.
Congress finds that--
(1) human activity is the dominant cause of observed
climate change in the past century;
(2) climate change is increasing the frequency and
intensity of wildfires, droughts, severe storms, heat waves,
rising of sea levels, and severe weather events;
(3) the Federal Government has--
(A) committed under the decision of the 21st
Conference of Parties of the United Nations Framework
Convention on Climate Change, adopted in Paris, France,
December 12, 2015 (commonly referred to as the ``Paris
Agreement''), to reduce greenhouse gas emissions by 50
to 52 percent by 2030; and
(B) a responsibility to mitigate current and future
impacts of climate change to protect the health,
safety, and welfare of individuals of the United
States;
(4) crypto-asset mining operations--
(A) can be energy intensive; and
(B) unlike most other technologies, are often
designed to generally increase computing requirements
over time, which can lead to increased energy
consumption;
(5) a crypto-asset network, Bitcoin, consumes more energy
annually than countries such as Chile or Bangladesh consume;
(6) crypto-asset mining operations often rely on fossil
fuels for power, which contributes to greenhouse gas emissions;
(7) the carbon dioxide emissions of the United States from
Bitcoin mining were estimated at 21 to 35 megatons per year in
2022, which is equivalent to the annual emissions from more
than 4,500,000 to 7,500,000 gasoline-powered cars driven for 1
year;
(8) crypto-asset mining can also cause local noise and
water pollution;
(9) the number of crypto-asset mining facilities in the
United States is increasing, and the share of the United States
of global Bitcoin mining rose from 3.5 percent in 2020 to 38
percent in 2022;
(10) crypto-asset mining is an emergent industry, and the
potential of crypto-asset mining to exacerbate systemic racial,
social, environmental, and economic injustices is not
sufficiently understood;
(11) there is no comprehensive, independent study of
crypto-asset mining operations in the United States, including
the energy use, resource mix, and greenhouse gas emissions of
those crypto-asset mining operations; and
(12) one of the primary recommendations of the report of
the Office of Science and Technology Policy entitled ``Climate
and Energy Implications of Crypto-Assets in the United States''
and dated September 2022 was to obtain detailed data on energy
use and emissions from crypto-asset activity.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Air pollutant.--The term ``air pollutant'' has the
meaning given the term in section 302 of the Clean Air Act (42
U.S.C. 7602).
(3) Block.--The term ``block'' means a group of data stored
as a single record in a blockchain.
(4) Blockchain.--The term ``blockchain'' means a
distributed ledger technology in which--
(A) the data are shared across a network that
creates a digital ledger of verified transactions or
information among network participants; and
(B) the data are typically linked using
cryptography to maintain the integrity of the ledger
and execute other functions, including transfer of
ownership or value.
(5) Consensus mechanism.--The term ``consensus mechanism''
means a process to achieve agreement among network participants
on the current state of a blockchain.
(6) Crypto-asset.--The term ``crypto-asset'' means a
digital asset, which may be a medium of exchange, a
representation of value, or both, for which generation or
ownership records of the digital asset are recorded in a
distributed ledger technology that relies on cryptography.
(7) Crypto-asset mining.--The term ``crypto-asset mining''
means the process of performing computations to add a valid
block of data to the blockchain, typically in exchange for a
reward or fee.
(8) Power load.--The term ``power load'' means the amount
of electrical power, in megawatts, that can be consumed by a
qualifying crypto-asset mining operation.
(9) Qualifying crypto-asset mining operation.--The term
``qualifying crypto-asset mining operation'' means--
(A) an individual crypto-asset mining facility that
has a power load that is greater than or equal to 5
megawatts; or
(B) multiple crypto-asset mining facilities that--
(i) are owned by the same company; and
(ii)(I) each have a power load that is less
than 5 megawatts; but
(II) have a cumulative power load that is
greater than or equal to 5 megawatts.
(10) Scope 1 emissions.--The term ``scope 1 emissions''
means greenhouse gas emissions directly from sources that are
operated, controlled, or owned by an individual or entity
performing a qualifying crypto-asset mining operation.
(11) Scope 2 emissions.--The term ``scope 2 emissions''
means indirect greenhouse gas emissions associated with the
purchase of electricity, steam, heat, or cooling by an
individual or entity performing a qualifying crypto-asset
mining operation.
(12) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 4. COMPLIANCE WITH THE CLEAN AIR ACT.
(a) Rulemaking Required.--
(1) Proposed regulation.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall issue a
notice of proposed rulemaking to revise part 98 of title 40,
Code of Federal Regulations (as in effect on the date of
enactment of this Act)--
(A) to require qualifying crypto-asset mining
operations to report as covered facilities under
subpart A of that part;
(B) to add a new subpart to that part that includes
qualifying crypto-asset mining operations as a source
category;
(C) to include in the new subpart created under
subparagraph (B) appropriate calculation methodologies,
reporting guidelines, and monitoring operations of,
with respect to qualifying crypto-asset mining
operations, scope 1 emissions and scope 2 emissions;
and
(D) to designate the qualifying crypto-asset mining
operations source category established pursuant to
subparagraph (B) as a source category that is subject
to greenhouse gas reporting requirements and related
monitoring, recordkeeping, and reporting requirements
under section 98.2 of that title, regardless of whether
a qualifying crypto-asset mining operation emits at
least 25,000 metric tons of carbon dioxide-equivalent.
(2) Final rule.--Not later than 180 days after the date on
which the public comment period on the proposed rule under
paragraph (1) closes, the Administrator shall issue a final
rule revising part 98 of title 40, Code of Federal Regulations.
(b) Assessment.--Not later than 1 year after the date on which the
Administrator finalizes the rule required under subsection (a), the
Administrator shall, pursuant to section 114(a) of the Clean Air Act
(42 U.S.C. 7414(a)), issue requests for information for the purpose of
conducting an assessment of, with respect to qualifying crypto-asset
mining operations, the permit programs under the Clean Air Act (42
U.S.C. 7401 et seq.), which shall include identifying the extent to
which any qualifying crypto-asset mining operations are improperly
operating without a valid and current permit under that Act.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator to carry out this section $5,000,000
for fiscal year 2023, to remain available until expended.
(d) Savings Provision.--Nothing in this section limits the ability
of the Administrator to require the reporting of emissions of any type
in another source category.
SEC. 5. IMPACT STUDY.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Administrator, in consultation with the Secretary, the
Administrator of the Energy Information Administration, the Federal
Energy Regulatory Commission, and the head of any other Federal agency
the Administrator or the Secretary determines appropriate, shall
conduct a study on the environmental impacts of crypto-asset mining in
the United States.
(b) Study Requirements.--The study required under subsection (a)
shall include--
(1) the number and location of any existing or planned
qualifying crypto-asset mining operation;
(2) the amount of greenhouse gas emissions and other air
pollutants that are--
(A) released by an onsite energy source; and
(B) attributable to offsite-generated electricity,
steam, heat, or cooling provided to a qualifying
crypto-asset mining operation;
(3) the anticipated increase of new, and expansion of
existing, qualifying crypto-asset mining operations;
(4) the potential impacts of electric energy consumption by
qualifying crypto-asset mining operations, including by
prolonging the use of fossil fuel generators, on the ability of
the United States to achieve the greenhouse gas emission
reductions necessary to keep global warming below 1.5 degrees
Celsius compared to pre-industrial levels;
(5) the ecological impacts, including ecological impacts
associated with electronic waste generation and the use or
discharge of cooling water, caused by qualifying crypto-asset
mining operations;
(6) the potential public health impacts due to the reduced
air and water quality and increased water stress on communities
near qualifying crypto-asset mining operations;
(7) the potential public health impacts from greenhouse gas
emissions released by qualifying crypto-asset mining
operations;
(8) the potential public health and ecological impacts from
noise generated by qualifying crypto-asset mining operations;
(9) the amount of electric energy consumed by each
qualifying crypto-asset mining operation, including the time of
use of electricity and the potential grid stress posed by the
power load of the qualifying crypto-asset mining operation;
(10) the source of electric energy consumed by each
qualifying crypto-asset mining operation;
(11) the aggregated energy-use statistics and greenhouse
gas emissions statistics for qualifying crypto-asset mining
operations in the United States;
(12) an analysis of energy use and greenhouse gas emissions
by type of consensus mechanism;
(13) an analysis of demand-response programs negotiated
between qualifying crypto-asset mining operations and electric
utilities;
(14) an analysis of potential rate-design measures that
could be implemented by State and local regulators to reduce
the energy consumption and dependence on fossil fuel energy
sources of crypto-asset mining operations;
(15) a geospatial assessment of the extent to which crypto-
asset mining operations are located within environmental
justice communities, as defined by the Administrator or within
the Climate and Economic Justice Screening Tool of the Council
on Environmental Quality; and
(16) an identification of, and recommendations for, best
practices for data types, data sources, and methodologies for
accurately measuring, modeling, and tracking the environmental
impacts of crypto-asset mining operations in the United States
in the future.
(c) Public Comment.--Before conducting the study required by
subsection (a), the Administrator shall provide an opportunity for
public comment and advice relevant to conducting the study.
(d) Report to Congress.--Not later than 18 months after the date of
enactment of this Act, the Administrator shall submit to the Committees
on Energy and Commerce and Science, Space, and Technology of the House
of Representatives and the Committees on Environment and Public Works
and Energy and Natural Resources of the Senate, and publish on the
public websites of the Environmental Protection Agency and the
Department of Energy, a report that contains the results of the study
required by subsection (a).
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator to carry out this section $5,000,000
for fiscal year 2023, to remain available until expended.
SEC. 6. ENERGY EFFICIENCY OF DATA CENTER BUILDINGS.
Section 453(a)(1) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17112(a)(1)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end
after the semicolon;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) a facility in which 2 or more computers
perform logical operations to mine or create crypto-
asset (as defined in section 3 of the Crypto-Asset
Environmental Transparency Act of 2022).''.
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