Activists target crypto’s climate impact

A city-by-city, state-by-state movement against the voracious energy demands of cryptocurrency mining is growing — and gaining some victories.

Frustrated by the lack of federal regulation, activists are targeting local laws and rules to rein in a practice they say is threatening the U.S. power grid and slowing the adoption of low-carbon energy, Niina H. Farah writes.

Mining cryptocurrency requires an immense amount of energy. Computers “mine” bitcoin and some other types of digital currency by solving complex puzzles around the clock. The more computers that are running, the better the odds of turning a profit.

Crypto miners argue they can consume power responsibly while improving the nation’s power system — a tall order for an industry that uses more energy per year than Australia.

Though concerns about crypto’s energy demands are far from new, they have taken on new urgency in the U.S., which became a safe haven for crypto mining after China banned the practice in 2020. In the ensuing two years, the U.S. went from being home to 3.5 percent of the global mining of bitcoin to 38 percent. When mining is done in regions where coal and natural gas still provide most electricity, the result could be more planet-warming pollution.

Taking action: Across the country, anti-crypto-mining advocates are targeting local and state officials to regulate or ban the practice.

New York issued a moratorium on new crypto mines while state officials evaluate their environmental effects. But that didn’t apply to an existing mining facility built on an old coal plant in the Finger Lakes region. So activists invoked the state’s climate law to argue that the facility — a combination bitcoin mining and natural gas plant — conflicts with the law’s emission reduction targets.

The state agreed, denying the facility’s request to renew its permit. The company is appealing the decision while pledging to go carbon free.

In Washington state, the House and Senate approved a bill that would require operations like crypto mines to meet the state’s ambitious clean electricity purchasing requirements. The measure is awaiting Gov. Jay Inslee’s (D) signature.

Other states are moving in the opposite direction. Missouri and Mississippi are both working to pass “right to mine” bills, which encourage development of the sector. Texas has also welcomed the industry.

Some members of Congress are pushing for federal action. Sen. Ed Markey, a Massachusetts Democrat, reintroduced legislation this year that could lay the groundwork for creating national efficiency standards for crypto mining.

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Today in POLITICO Energy’s podcast: Wes Venteicher breaks down California’s decision to phase out combustion engines in trucks, buses and trains, and what that could mean for other states.

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The bill’s introduction comes as Congress continues informal talks on overhauling the nation’s permitting laws, and Manchin said it would serve as a strong starting point for further Senate negotiations.

But it’s unclear whether the measure can gain enough bipartisan support. For example, the legislation would once again authorize the Mountain Valley natural gas pipeline — an inclusion that soured progressive Democrats on the bill last year.

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Climate climate activists, however, fear the move will deliver yet another body blow from the same justices who handcuffed EPA last year.

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A new, albeit annoying tactic
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The United States will help the Philippines build out its supply chain of minerals, in a move to help both countries more quickly transition to clean energy and transportation.

Manchin has accused the Biden administration of jeopardizing offshore oil and renewable energy development by contemplating a move to skip offshore lease sales in 2024.

A U.S.-Canada task force launched to better align the two countries’ clean energy priorities held its inaugural meeting Tuesday afternoon in Washington.

That’s it for today, folks! Thanks for reading.