As Alarm Grows Over Crypto Mining’s Energy Consumption, Bitcoin Lobbyists Peddle State Bills

Earthjustice warns that a new 'model' bill for cryptocurrency mining, promoted by the Satoshi Action Fund, would shield miners from local zoning and noise ordinances and interfere with utility regulators' ability to set fair electricity rates. The briefing details how proof-of-work mining strains electric grids, increases electricity costs for residents, causes significant noise and environmental pollution, and fails to deliver promised economic benefits.

• The Satoshi Action Fund's model bill, rebranded as a 'Blockchain Basics' bill, aims to prevent local governments from enacting zoning and noise ordinances and restricts utility commissions from setting electricity rates based on the specific risks and costs associated with crypto mining.
• Proof-of-work cryptocurrency mining consumes significant energy, potentially accounting for up to 2.3 percent of U.S. electricity, which can lead to grid instability, brownouts, and blackouts during peak demand periods.
• Crypto mining operations increase electricity costs for other consumers through grid upgrade expenses and the need for utilities to purchase expensive spot-market power. In Texas, these costs are estimated at $1.8 billion per year for non-mining residents.
• The industry causes substantial local externalities, including noise pollution described as comparable to jet engines, water consumption equivalent to 300,000 U.S. households in 2021, and the generation of significant electronic waste from specialized ASIC machines.
• Despite promises of economic development, crypto mines typically provide few jobs and can leave communities with debt for infrastructure upgrades if the operations relocate or go bankrupt.

APA

Earthjustice (2024). As Alarm Grows Over Crypto Mining’s Energy Consumption, Bitcoin Lobbyists Peddle State Bills. https://earthjustice.org/feature/cryptomining-bitcoin-state-bills-legislation

Chicago

Earthjustice. As Alarm Grows Over Crypto Mining’s Energy Consumption, Bitcoin Lobbyists Peddle State Bills. 2024. https://earthjustice.org/feature/cryptomining-bitcoin-state-bills-legislation.

Wikipedia

{{cite report |author=Earthjustice |title=As Alarm Grows Over Crypto Mining’s Energy Consumption, Bitcoin Lobbyists Peddle State Bills |date=26 March 2024 |url=https://earthjustice.org/feature/cryptomining-bitcoin-state-bills-legislation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{earthjustice2024alarm, author = {{Earthjustice}}, title = {{As Alarm Grows Over Crypto Mining’s Energy Consumption, Bitcoin Lobbyists Peddle State Bills}}, institution = {Earthjustice}, year = {2024}, month = mar, url = {https://earthjustice.org/feature/cryptomining-bitcoin-state-bills-legislation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }