DALLAS, TEXAS – U.S. lawmakers are seeking to scrutinize the environmental footprint of Texas’ Bitcoin mining operations, labeling the state a “deregulated safe harbor” offering “cheap power and laissez-faire regulation” in a letter to the Electric Reliability Council of Texas (ERCOT), the body responsible for overseeing the Lone Star state’s electricity.
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The concerns rest on Bitcoin mining’s potential impact on the state’s energy grid stability and the ongoing climate crisis. In the letter, Massachusetts senator Elizabeth Warren and other lawmakers expressed concern that Texas’ state subsidies to miners were being paid by taxpayers. The senators are seeking a full accounting of energy usage and environmental costs.
Texas is home to approximately 30 Bitcoin mines, with dozens more eyeing the prospect of relocation. Almost all of the mining operations are sited in rural counties, far away from urban infrastructure like fast internet and plentiful mining manpower. Staunchly pro-crypto Governor Greg Abbott lured companies there with the pledge of lower energy bills and taxes, and abundant land – a promise that many miners say was fulfilled after China banned mining last year, sparking an exodus of miners to greener pastures in Texas.
But the state may still be unprepared for the potential risks. Last February, Texas’ power grid failed, killing hundreds and engulfing millions of people in darkness for multiple days. Although ERCOT has repeatedly said no miner can connect to the grid if their potential energy use exceeds available supply, some watchdogs are sounding the alarm about an increased demand miners will put on an increasingly strained grid.
Crypto miners, however, say they voluntarily unplug from the grid during peak demand periods, ensuring that there is no stress. This was on display during weeks of 100-plus weather this summer, when miners successfully disconnected from the grid.
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