Solomon Samuel 
A Pennsylvania representative has removed a two-year prohibition on cryptocurrency mining from a bill to regulate the sector’s energy consumption, citing pressure from labor unions.
The Pennsylvania House Environmental Resources and Energy Committee narrowly approved the Cryptocurrency Energy Conservation Act on October 16 by a vote of 13 for and 12 against, after the bill had stalled since its introduction on June 21.
The Pennsylvania Capital-Star reported on the same day that Democratic Party leaders pressured Democratic Representative Greg Vitali, the bill’s sponsor and chairman of the Committee, not to include the moratorium in the measure.
Excerpt of the amended House Bill No. 1476 with the two-year crypto mining moratorium struck off. Source: Pennsylvania House of Representatives
Rep. Vitali asserted that construction trade unions have a “chronic opposition” to environmental policy and that the unions have his Democratic colleagues in their pockets.
“Frankly, [the unions have] the ear of House Democrats, and they have the ability to peel off members who would otherwise be supportive of good environmental policy.”
Vitali asserted that voting against the unions would jeopardize the Democratic majority in the Pennsylvania House, and he would prefer that the measure pass without a moratorium than not pass at all.
“In my first six months as majority chair, I learned the hard way that there is little tolerance for strong environmental policy,” Vitali said. The two-year prohibition would have prevented the approval of new and renewed mining facility permits.
The bill imposes an impact assessment and new reporting requirements on mining operations. Within six months, miners in this state must submit data on the number and scale of their mines, as well as their energy sources, emissions reports, and energy and water consumption.
Cryptocurrency producers in Pennsylvania will be required to submit reports annually. Before beginning operations, all new miners must submit the same report.
Stronghold Digital Mining has established operations in Pennsylvania, the third-largest coal-producing state in the United States, and purchased two coal-burning power plants on the premise that it will convert the plants’ waste into energy to fuel hundreds of Bitcoin (BTC) mining machines.
In July, the miner requested permission to produce up to 15 percent of its energy requirements by burning shredded tires, a move strongly opposed by local environmental groups.
TeraWulf has a nuclear-powered Bitcoin processing facility in Pennsylvania.