Senate Bill Targets Crypto Miners with Environmental Penalties
A Senate proposal, known as the Clean Cloud Act, threatens to impose penalties on cryptocurrency miners and AI data centers if they exceed federally set environmental benchmarks. The bill, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, aims to curb rising power demand from data-heavy industries and prevent surging energy costs for American households.
The proposal would require the EPA to set an emissions performance standard for facilities with over 100 kilowatts of installed IT capacity. These standards would be regionally based and would require an 11% annual emissions reduction. Any facility exceeding these limits would face penalties starting at $20 per metric ton of CO2e, with annual increases based on inflation plus an additional $10 per ton.
Critics argue the bill unfairly singles out crypto mining, labeling it a 'Losing ‘Blame the Server Racks’ Strategy.' The proposal also risks clashing with former President Donald Trump’s deregulatory stance, which included repealing a 2023 Biden executive order on AI safety. Trump has championed making the U.S. the global hub for both AI and cryptocurrency.