Pennsylvania lawmakers have decided to drop a proposed two-year ban on crypto mining from a bill that aims to regulate the energy consumption of the industry. The move came after intense pressure from trade labor unions and concerns about the impact on Democratic Party support.
The Cryptocurrency Energy Conservation Act, which was introduced in June, had been stalled in the Pennsylvania House Environmental Resources and Energy Committee for months.
On Monday, the committee finally passed the bill with a narrow margin of 13 votes in favor and 12 against.
The bill’s sponsor and the chair of the committee, Democratic Representative Greg Vitali, said that he faced pressure from trade labor unions and Democratic Party leaders to remove the moratorium from the bill.
He claimed that the unions had a consistent history of opposing environmental policies and had significant influence over his Democratic colleagues.
“Frankly, [the unions have] the ear of House Democrats, and they can peel off members who would otherwise be supportive of good environmental policy,” Vitali stated, underscoring the sway these groups held within the Democratic majority in Pennsylvania’s House.
Vitali emphasized that pushing against the unions’ interests could risk the Democratic majority in the state’s House, making it preferable to pass the bill without the mining ban rather than not pass it at all.
He noted that his earlier experiences as majority chair taught him that strong environmental policies had limited support.
The proposed two-year ban would have halted the issuance of new and renewed permits for crypto mining facilities in Pennsylvania.
However, following the removal of the ban, the bill has been revised to include an impact study on mining operations and new reporting requirements.
Under the revised bill, crypto miners in the state must submit various pieces of information within six months.
This information includes:
- The number and size of mining sites operated,
- Details about energy sources, emissions reports, and
- Energy and water consumption data.
Pennsylvania-based crypto miners will be required to submit these reports annually. Additionally, new miners entering the state must provide the same information before commencing operations.
The move to scrap the ban comes at a time when crypto miners are actively seeking alternative energy sources to reduce costs.
Notably, Stronghold Digital Mining, a crypto mining company, has established operations in Pennsylvania and acquired two coal-burning power plants with the intention of utilizing plant waste to power hundreds of Bitcoin mining rigs.
The company had previously sought approval to burn shredded tires to generate up to 15% of its energy needs, a proposal that faced strong opposition from local environmental groups.
