Pennsylvania Drops Crypto Mining Ban From Energy Conservation Bill Amid Union Pressure
Summary:
The Pennsylvania House Environmental Resources and Energy Committee has passed the Cryptocurrency Energy Conservation Act, which initially included a two-year ban on cryptocurrency mining, but was revised due to pressure from trade labor unions. The passed bill calls for an impact assessment on mining operations and stringent reporting requirements regarding energy consumption and emissions instead. Crypto miners in Pennsylvania are now required to submit biannual reports detailing their operations. The bill's sponsor, Democratic Representative Greg Vitali, voiced concerns about opposition from labor unions and their influence over Democratic colleagues.
Legislative efforts to control energy use in the crypto mining sector in Pennsylvania have been altered, with a proposed two-year ban on mining activities being dropped due to pressure from trade labor unions. The Cryptocurrency Energy Conservation Act was approved by the Pennsylvania House Environmental Resources and Energy Committee on October 16, though only narrowly, with 13 votes in favor and 12 against. Since its presentation to the Committee on June 21, this is the first substantial action taken on the bill.
The architect of the legislation and the Committee's chairman, Representative Greg Vitali, shared with The Pennsylvania Capital-Star that influential leaders within the Democratic Party had dissuaded him from pursuing the bill with the ban included. Vitali expressed that the labor unions, notorious for their staunch objections to environmental regulations, have a significant sway amongst his Democratic Party colleagues.
Vitali fears that going against these unions could potentially threaten the Democrats' control of the Pennsylvania House. He admitted to coming to terms, through firsthand experience as a chair, with the intolerance for robust environmental regulations. He would rather have the bill approved without the ban, rather than not having it approved at all.
The ban, if approved, would have put a stop to the issuance and renewal of permits for crypto mining operations. The recently passed bill, however, demands an environmental impact assessment of mining activities and stringent reportorial obligations.
Crypto miners in Pennsylvania will now be required to submit semi-annual reports detailing the size and number of mining sites, energy and water usage data, emission reports, and information on the types of energy sources used. This will be an annual requirement for existing miners while aspiring miners will have to submit this report before commencing operations.
Leading mining company, Stronghold Digital Mining, has already established its operations in Pennsylvania, one of the top three coal states in America. It bought two coal-burning power plants with plans to convert waste from these plants into energy for powering Bitcoin mining machines.
In July, Stronghold sought permission to utilize shredded tires to meet up to 15% of its energy requirements; a move that was vehemently opposed by local environment conservationists. Another mining company, TeraWulf, runs a nuclear-powered mining site in Pennsylvania.
Published At
10/17/2023 3:36:14 AM
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