Notice2022-06284
Request for Information on the Energy and Climate Implications of Digital Assets
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 25, 2022
Issuing agencies
Science and Technology Policy Office
Abstract
The United States is committed to combatting the climate crisis and reaching net-zero greenhouse gas emissions no later than 2050. On March 9, 2022, President Biden signed an Executive Order on Ensuring Responsible Development of Digital Assets, which outlines a whole-of-government strategy to harness the benefits and mitigate the risks of digital assets, including the implications for energy use and the climate. The Executive Order tasked the White House Office of Science and Technology Policy (OSTP) to submit a report to the President that examines the potential for digital assets to impede or advance efforts to tackle climate change and the transition to a clean and reliable electricity grid. As OSTP conducts this examination, it invites comments from interested stakeholders, including the public. In particular, this RFI seeks comments on the protocols, hardware, resources, economics, and other factors that shape the energy use and climate impacts of all types of digital assets. It also seeks comment on attempts to mitigate climate harms and reduce energy use associated with digital assets, potential energy or climate benefits from digital assets and opportunities for natural asset or emissions accounting, likely future developments or industry trajectories related to digital assets, and implications that digital assets have for U.S. policy including as it relates to electricity grid reliability and greenhouse gas intensity.
Full Text
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<title>Federal Register, Volume 87 Issue 58 (Friday, March 25, 2022)</title>
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[Federal Register Volume 87, Number 58 (Friday, March 25, 2022)]
[Notices]
[Pages 17105-17107]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06284]
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OFFICE OF SCIENCE AND TECHNOLOGY POLICY
Request for Information on the Energy and Climate Implications of
Digital Assets
AGENCY: Office of Science and Technology Policy (OSTP).
ACTION: Notice of Request for Information on the Energy and Climate
Implications of Digital Assets.
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SUMMARY: The United States is committed to combatting the climate
crisis and reaching net-zero greenhouse gas emissions no later than
2050. On March 9, 2022, President Biden signed an Executive Order on
Ensuring Responsible Development of Digital Assets, which outlines a
whole-of-government strategy to harness the benefits and mitigate the
risks of digital assets, including the implications for energy use and
the climate. The Executive Order tasked the White House Office of
Science and Technology Policy (OSTP) to submit a report to the
President that examines the potential for digital assets to impede or
advance efforts to tackle climate change and the transition to a clean
and reliable electricity grid. As OSTP conducts this examination, it
invites comments from interested stakeholders, including the public. In
particular, this RFI seeks comments on the protocols, hardware,
resources, economics, and other factors that shape the energy use and
climate impacts of all types of digital assets. It also seeks comment
on attempts to mitigate climate harms and reduce energy use associated
with digital assets, potential energy or climate benefits from digital
assets and opportunities for natural asset or
[[Page 17106]]
emissions accounting, likely future developments or industry
trajectories related to digital assets, and implications that digital
assets have for U.S. policy including as it relates to electricity grid
reliability and greenhouse gas intensity.
DATES: Interested persons and organizations are invited to submit
comments on or before 5:00 p.m. ET on May 9, 2022.
ADDRESSES: Interested individuals and organizations should submit
comments electronically to <a href="/cdn-cgi/l/email-protection#9adef3fdf3eefbf6dbe9e9ffeee9c8dcd3daf5e9eeeab4fff5eab4fdf5ec"><span class="__cf_email__" data-cfemail="62260b050b16030e23111107161130242b220d1116124c070d124c050d14">[email protected]</span></a> and include <
RFI Response: Climate Implications of Digital Assets > in the subject
line of the email. Due to time constraints, mailed paper submissions
will not be accepted, and electronic submissions received after the
deadline cannot be ensured to be incorporated or taken into
consideration.
Instructions: Response to this RFI is voluntary. Each responding
entity (individual or organization) is requested to submit only one
response.
Responses may address one or as many topics as desired from the
enumerated list provided in this RFI, noting the corresponding number
of the topic(s) to which the response pertains. Submissions must not
exceed 10 pages (exclusive of cover page) in 11-point or larger font,
with a page number provided on each page. Responses should include the
name of the person(s) or organization(s) filing the comment, as well as
the respondent type (e.g., academic institution, advocacy group,
professional society, community-based organization, industry, member of
the public, government, other). Respondent's role in the organization
may also be provided (e.g., researcher, administrator, student, program
manager, journalist) on a voluntary basis. Comments containing
references, studies, research, and other empirical data that are not
widely published should include copies or electronic links of the
referenced materials; these materials, as well as a list of references,
do not count toward the 10-page limit. No business proprietary
information, copyrighted information, or personally identifiable
information (aside from that requested above) should be submitted in
response to this RFI. Comments submitted in response to this RFI may be
posted on OSTP's website or otherwise released publicly.
In accordance with Federal Acquisitions Regulations Systems
15.202(3), responses to this notice are not offers and cannot be
accepted by the Federal Government to form a binding contract.
Additionally, those submitting responses are solely responsible for all
expenses associated with response preparation.
FOR FURTHER INFORMATION CONTACT: For additional information, please
direct questions to Nik Marda at 202-456-4444 or
<a href="/cdn-cgi/l/email-protection#501439373924313c112323352423021619103f2324207e353f207e373f26"><span class="__cf_email__" data-cfemail="66220f010f12070a27151503121534202f26091512164803091648010910">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background: Climate change is one of the most pressing problems
confronting our nation and our world, which is why President Biden has
committed to cutting U.S. greenhouse gas pollution by 50-52% by 2030,
advancing environmental justice, and having a net-zero emissions
economy by 2050. Building on the historic progress on climate action
that President Biden achieved in his first year in office, the
President's plan to achieve those goals includes improving energy
efficiency, deploying a record amount of new carbon-free energy
sources, and advancing clean energy innovation.
The explosive growth of the digital asset ecosystem may contribute
to greater energy use and negatively impact the climate. Many digital
assets, including cryptocurrencies, use decentralized consensus
mechanisms as opposed to a central authority to verify transactions.
While different digital asset systems use different consensus
mechanisms, many use ``proof of work'' based systems that require
significant amounts of computing power and electricity, often derived
from carbon-intensive sources. Some researchers estimate that
cryptocurrencies use more electricity each year than many individual
countries in the world, including some industrialized nations. Thus,
digital assets may present a key environmental challenge at a time when
we need to shift to carbon-free sources in order to combat climate
change. On the other hand, digital assets might also have a positive
impact on the climate. For example, they may provide new opportunities
in carbon accounting and verification, increasing trust in carbon
measurement and creating a novel opportunity for addressing climate
change.
Recognizing these climate risks, other risks, and potential
benefits of digital assets, President Biden signed Executive Order
(E.O.) 14067: Ensuring Responsible Development of Digital Assets on
March 9, 2022, to outline a whole-of-government strategy on digital
assets. Pursuant to E.O. 14067, OSTP, and its partners from the
Executive Office of the President and Federal agencies, are examining
the connections between distributed ledger technology and energy
transitions, the potential for these technologies to impede or advance
efforts to tackle climate change at home and abroad, and the impacts
these technologies have on the environment.
This RFI seeks public input to better understand the climate
impacts of digital assets. In particular, this RFI seeks comments on
the protocols, hardware, resources, economics, and other factors that
shape the energy use and climate impacts of all types of digital
assets. It also seeks comment on attempts to mitigate climate harms and
reduce energy use associated with digital assets, potential energy or
climate benefits from digital assets and opportunities for natural
asset or emissions accounting, likely future developments or industry
trajectories related to digital assets, and implications that digital
assets have for U.S. policy including as it relates to electricity grid
reliability and greenhouse gas intensity. These comments will inform a
report to the President on the climate impacts of digital assets.
Terminology: The terms blockchain, central bank digital currency,
cryptocurrencies, digital assets, and stablecoins, have the definitions
provided in Section 9 of E.O. 14067.
Scope: OSTP invites input from interested stakeholders, including
academic researchers and policy analysts; technical practitioners
specializing in digital ledger technologies; civil society and advocacy
groups; individuals and organizations who work on environmental issues;
industry and industry association groups; Federal entities and
employees; State, local, tribal, territorial, and foreign governments;
and members of the public.
Information Requested: Respondents may provide information for one
or as many topics below as they choose.
1. Protocols: Information on the climate impacts of the protocols
used by digital assets. This includes the effect of cryptocurrencies'
consensus mechanisms on energy usage, as well as potential mitigating
measures and alternative mechanisms of consensus and the design
tradeoffs those may entail. For example, many digital assets--including
those that make use of smart contracts--use or are looking into less
energy-intensive consensus mechanisms than ``proof of work.''
Information is sought related to the benefits and drawbacks of those
alternative mechanisms, as well as their different energy consumption
profiles.
2. Hardware: Information about the climate impacts from the
physical components that run the protocols for digital assets. This
includes the
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embodied emissions of specialized hardware and cooling equipment used
to mine certain cryptocurrencies, as well as the waste generated from
this equipment needing to be replaced frequently due to rapidly
improving mining equipment. This also includes potential mitigating
measures and technology improvements to reduce the environmental impact
from hardware usage.
3. Resources: Information about the resources used to sustain and
power digital assets. This includes the electricity that powers mining
rigs and the water used to cool those operations, as well as potential
mitigating measures to reduce the amount of electricity and water used.
This also includes quantitative estimates of the total amounts of these
resources used by particular types of digital assets, or by the digital
asset ecosystem at large. This also includes information concerning
whether the costs of resources used are borne equitably across society
or are disproportionately borne by historically disadvantaged
communities.
4. Economics: Information about how the energy use of digital
assets is affected by the value of, demand for, and supply of
particular digital assets or their underlying infrastructure. This
includes the environmental and infrastructural effects from
cryptocurrency miners moving to areas with cheaper electricity, as well
as the incentives that exist for cryptocurrency miners to use renewable
energy sources for mining. This also includes information about impacts
on the electric grid and about the need for potential incremental grid
investments, along with the impacts on electricity bills for customers
near or in affected service territories.
5. Past or ongoing mitigation attempts: Information about past or
ongoing attempts to mitigate negative climate impacts of digital
assets. This includes voluntary industry efforts, and cryptocurrencies
that are changing their consensus mechanism in order to reduce their
energy usage. This also includes climate-focused and energy efficiency
regulation or standards efforts by State, local, territorial, tribal,
federal, or foreign governments.
6. Potential energy or climate benefits: Information about how
digital assets can potentially yield positive energy or climate
impacts. This includes potential uses of blockchain that could support
monitoring or mitigating technologies to climate impacts, such as
opportunities for natural asset or emissions accounting, as well as the
exchanging of liabilities for greenhouse gas emissions, water, and
other natural or environmental assets. This also includes specific
approaches to increase the likelihood of direct climate or emissions
benefits from digital assets, or associated grid services that
indirectly lead to climate or emissions benefits. Furthermore,
information is sought supporting or rebutting claims made by some
proponents of cryptocurrencies that the energy used by mining
cryptocurrencies is a net climate positive, either because it occurs
during demand lulls or because it increases demand for renewable
electricity sources.
7. Likely future developments or industry trajectories: Information
about likely future developments or industry trajectories that would
have implications for the future climate impacts of digital assets.
This includes expected future developments in protocols, hardware,
resources, and economics. Where possible, please describe the expected
timescale for likely future developments.
8. Implications for U.S. policy: Information about how the climate
impacts of digital assets might have implications for U.S. policy. This
includes implications for energy policy, including as it relates to
grid management and reliability, energy efficiency incentives and
standards, sources of energy supply, greenhouse gas intensity, and the
transition to a net-zero emissions economy by 2050.
9. Other information: Any other information, not covered above,
that is relevant for understanding the climate impacts of digital
assets.
Dated: March 21, 2022.
Stacy Murphy,
Operations Manager.
[FR Doc. 2022-06284 Filed 3-24-22; 8:45 am]
BILLING CODE 3270-F2-P
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