PRINTER'SH1476B2129A03081 PWK:AAS 11/30/23 #90 A03081 AMENDMENTS TO HOUSE BILL NO.

16621476 THESponsor: GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1476REPRESENTATIVE 2023VITALI INTRODUCEDPrinter's BYNo. VITALI, WAXMAN, MADDEN, SANCHEZ, HILL-EVANS, STEELE, KHAN, BRENNAN, HOWARD, PIELLI, HOHENSTEIN AND SALISBURY, JUNE 21, 2023 REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 21, 2023 AN ACT Providing for a moratorium on electric generating facility that provides, in whole or in part, behind-the-meter electric energy consumed or utilized by a qualifying crypto-asset on the Department of Environmental Protection.imposing duties The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section2129 1.Amend Bill, page 2, line 1, by striking out "vast" Amend Bill, page 2, line 2, by inserting after "which" , approximately 55%, Amend Bill, page 2, lines 2 and 3, by striking out "production and consumption of energy" and inserting transportation and industrial sectors 2023/90PWK/HB1476A03081 - 1 -

Short title.

This act shall be known and may be cited as the Cryptocurrency Energy Conservation Act.

Section 2.

Declaration of policy.

The General Assembly finds and declares as follows:

(1) Climate change is the most serious long-term threat to this planet.

(2) The world needs to reach carbon neutrality by mid- century to avoid the worst effects of climate change.

(3) This Commonwealth is a major emitter of greenhouse gases that contribute to climate change, the vast majority of which are related to the production and consumption of energy.

(4) This Commonwealth is committed to reducing greenhouse gas emissions within the Commonwealth in order to help combat climate change, with goals of reducing greenhouse gas emissions by 26% from 2005 levels by 2025 and further reducing greenhouse gas emissions by 80% from 2005 levels by 2050 under Executive Order 2019-01.

(5) Recently, cryptocurrency mining has expanded greatly in the United States and this Commonwealth, with several major cryptocurrency mining operations expected to come online in this Commonwealth over the next several years.

(6) Cryptocurrency mining refers to the process of creating new units of cryptocurrency and verifying transactions by using computers to solve complicated calculations.

(7) Cryptocurrency mining requires a substantial amount of energy and currently accounts for as much as 1.7% of energy consumption in the United States, according to a White House report.

(8) The cryptocurrency mining industry currently operates with little governmental oversight or regulation.

(9) The massive use of energy to produce cryptocurrency is a wasteful use of finite resources.

(10) Unchecked cryptocurrency mining in this Commonwealth will prevent this Commonwealth from reaching its stated greenhouse gas emissions reduction goals.

Section 3.

Definitions.

The following words and phrases when used in this act shall have the meanings given to them in this section unless the 20230HB1476PN1662 - 2 - context clearly indicates otherwise:

"Blockchain." A distributed ledger technology in which:

(1) the data are shared across a network that creates a digital ledger of verified transactions or information among network participants;

and (2) the data are typically linked using cryptography to maintain the integrity of the ledger and execute other functions, including transfer of ownership or value.

"Consensus mechanism." A process to achieve agreement among network participants on the current state of a blockchain.

"Crypto-asset mining." The process of performing computations to add a valid block of data to the blockchain typically in exchange for a reward or fee, including a proof of work consensus mechanism and excluding those computations required to validate individual transactions.

"Department." The Department of Environmental Protection of the Commonwealth.

"Power load." The amount of electrical power, in megawatts, that is consumed by a qualifying crypto-asset mining operation.

"Qualifying crypto-asset mining operation." The term means:

(1) an individual crypto-asset mining operation located in this Commonwealth that has a power load that is greater than or equal to 5 megawatts;

(2) a crypto-asset operation located in this Commonwealth compromised of more than one location that has a cumulative power load that is greater than or equal to 5 megawatts;

or (3) a crypto-asset mining operation located at a natural gas well site in this Commonwealth.

"Scope 1 emissions." Greenhouse gas emissions directly from 20230HB1476PN1662 - 3 - sources that are operated, controlled or owned by an individual or entity performing a qualifying crypto-asset mining operation.

"Scope 2 emissions." 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.

Section 4.

Moratorium.

Notwithstanding any other provision of law, for two years following the effective date of this section, the department may not approve an application for a new permit or renew an existing permit under the act of January 9, 1959 (P.L.2119, No.787), known as the Air Pollution Control Act, including, but not limited to, section 6.1 of the Air Pollution Control Act, for an electric generating facility that provides, in whole or in part, behind-the-meter electric energy consumed or utilized by a qualifying crypto-asset mining operation.

Section 5.

Reporting requirements for qualifying crypto-asset mining operations.