Activists target crypto's climate impact

Your guide to the political forces shaping the energy transformation

May 02, 2023 View in browser   By Arianna Skibell POLITICO illustration by Claudine Hellmuth/Photos by iStock 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.   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. Listen to today’s POLITICO Energy podcast 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. The Manchin Show Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) reintroduced his permitting reform bill Tuesday. | Francis Chung/POLITICO Here we go again — Senate Energy and Natural Resources Chair Joe Manchin has reintroduced legislation to overhaul the nation's energy permitting laws after the proposal capsized last year, writes Jeremy Dillion. The West Virginia Democrat’s bill largely matches the language and provisions of a negotiated measure that failed to advance in the last Congress. 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.   GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGSITER HERE.     Power Centers Advocates rallied at the Supreme Court in 2022 after justices reined in EPA's authority to regulate climate pollution from power plants. | Francis Chung/E&E News/POLITICO SCOTUS on the move Monday's Supreme Court decision to revisit a key precedent on agencies' regulatory powers is giving hope to opponents of Biden's environmental agenda, writes Pamela King. Climate climate activists, however, fear the move will deliver yet another body blow from the same justices who handcuffed EPA last year. Climate vs. Insurance The Gulf Coast insurance crisis has hit a new low as two state-chartered insurance associations are being forced to borrow hundreds of millions of dollars to pay out hurricane claims, writes Thomas Frank. Borrowing in Florida and Louisiana could reach a combined $1.35 billion and will be repaid largely by insurance policyholders through premium increases or surcharges that will last for years. A new, albeit annoying tactic If you live on planet Earth, you might have noticed that climate change activists have become increasingly annoying in recent years, splattering masterpieces with soup, halting soccer and tennis matches, shutting down highways, and deflating the tires of ordinary people's SUVs (and Teslas), writes Karl Mathiesen. But activists say these actions are an important part of an existential struggle and the next necessary step after exhausting normal democratic acts like voting, peaceful protests, lobbying and disinvestment. In Other News Broken promises: In 2021, Google pledged to defund climate lies, but the ads keep coming. Dam! A new study has found that about 15 million people across the world are at risk from glacial melts that could cause dams to burst.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.     Subscriber Zone A showcase of some of our best subscriber content. President Joe Biden shakes hands with Philippine President Ferdinand Marcos Jr. as they meet Monday in the Oval Office of the White House. | Carolyn Kaster/AP Photo 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.   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.