The US Government Halts Mandatory Bitcoin Mining Energy Consumption Assessment
The United States government has agreed to halt its mandatory assessment and data collection of energy consumption by the Bitcoin mining industry. This decision was made following legal action initiated by Riot Platforms and the Texas Blockchain Council, resulting in an agreement by the Department of Energy and the Energy Information Administration (EIA) to withdraw the survey.
Challenging the Mandatory Data Collection
The Energy Information Administration initiated a mandatory data collection survey in January, which was met with opposition from Riot Platforms and the Texas Blockchain Council. The lawsuit argued that the submission of data on power usage, imposed by the Cryptocurrency Mining Facilities Survey, was unjustified under federal law. It further claimed that the Energy Information Administration had exceeded its authority and failed to prove how the survey would prevent public harm.
As a response to the lawsuit, the Department of Energy and the Energy Information Administration have halted and withdrawn the survey. They have also pledged to destroy any data collected during the survey.
โEIA will destroy any information that it has already received in response to the survey, and if it receives any additional information, it will destroy that as well.โ
An Agreement Reached
Pierre Rochard, Vice President of Research at Riot Platforms, announced that the US government was canceling the survey and destroying the data it had collected.
โBREAKING: the Biden Administration is canceling the fake #Bitcoin mining โemergencyโ declaration and destroying the data that it illegally collected. The government is going to restart the process the legal way: with public notice and comment.โ
Bitcoin Mining and Energy Requirements
Bitcoin mining has raised concerns due to its perceived high energy consumption. In order to solve cryptographic problems and validate transactions, large numbers of computers are required, resulting in significant electricity usage. According to estimates from the Energy Information Administration, Bitcoin mining accounts for between 0.6% and 2.3% of the annual electricity consumption in the United States. To put this into perspective, the state of Utah accounted for 0.8% of the total electricity consumed in 2023, while Washington State, with a population of 8 million, accounted for 2.3%.
Department of Energy to Seek Feedback
The Energy Information Administration has announced plans to solicit feedback on its crypto miner survey following the agreement with Riot Platforms and the Texas Blockchain Council. As part of this agreement, the EIA will publish a notice outlining its proposed miner survey and allow for public comments for 60 days. This process will replace the emergency survey that was originally initiated.
โDefendants agree that in considering the comments submitted in response to the New Federal Register Notice, EIA will also consider any comments submitted in response to the February 9 Notice as if they had been submitted in response to the New Federal Register Notice.โ
Hot Take: The US Government Responds to Legal Challenge on Bitcoin Mining Energy Consumption Assessment
The US government has decided to halt its mandatory assessment and data collection of energy consumption by the Bitcoin mining industry. This decision comes after Riot Platforms and the Texas Blockchain Council raised legal concerns regarding the survey. The Energy Information Administration had initiated the survey in January, requiring data on power usage from Cryptocurrency Mining Facilities. However, the lawsuit filed against the EIA argued that the urgency and public harm prevention justifications were lacking. As a result of the legal action, the Department of Energy and the EIA agreed to withdraw the survey and destroy any collected data. Future plans involve soliciting feedback from the public through a notice proposing a new survey.
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