Administrator's Memo Requesting Emergency Clearance

January 24, 2024
Dominic J. Mancini
Deputy Administrator
Office of Information and Regulatory Affairs
Office of Management and Budget
Washington, DC
Subject: Cryptocurrency Mining Facilities – Request for Emergency Review and Clearance
Dear Dr. Mancini:
Pursuant to Office of Management and Budget (OMB) procedures established at 5 CFR Part 1320,
Controlling Paperwork Burdens on the Public, I request that the proposed information collection project,
“Proposed Emergency Survey – Cryptocurrency Mining Facilities” be processed as an Emergency
Revision Request in accordance with Section 1320.13, Emergency Processing. I have determined that the
information should be collected prior to the expiration of time period established under Part 1320. I am
making this request under 1320.13.2.i because public harm is reasonably likely if normal clearance
procedures are followed.
As evidence, the price of Bitcoin has increased roughly 50% in the last three months, and higher prices
incentivize more cryptomining activity, which in turn increases electricity consumption. At the time of
this writing, much of the central United States is in the grip of a major cold snap that has resulted in high
electricity demand. The combined effects of increased cryptomining and stressed electricity systems
create heightened uncertainty in electric power markets, which could result in demand peaks that affect
system operations and consumer prices, as happened in Plattsburgh, New York in 2018.1 Such
conditions can materialize and dissipate rapidly. Given the emerging and rapidly changing nature of this
issue and because we cannot quantitatively assess the likelihood of public harm, we feel a sense of
urgency to generate credible data that would provide insight into this unfolding issue.
EIA has engaged in a rigorous evaluation of U.S. cryptocurrency mining activity using publicly available
information. We estimate that cryptocurrency mining activity has grown rapidly over the last few years
and currently represents as much as 2.2% of U.S. electricity consumption. As noted above, more
localized concerns include strains to the electricity grid during periods of peak demand and the potential
for higher electricity prices among consumers. Local media in states such as Georgia, New York and
Texas, where cryptocurrency mining activity has seen comparatively high growth, have observed the
positive correlation between cryptocurrency mining and retail prices. Furthermore, the economics of
cryptocurrency mining are partly driven by the prevailing price of electricity. Given the modular nature
of the mining equipment, mining companies are able to relocate quickly to new areas with lower
electricity prices, which could further complicate the grid planning process. The North American Electric
Reliability Corporation (NERC) indicates in their latest long-term reliability assessment that “due to

1

https://crsreports.congress.gov/product/pdf/R/R45863

unique characteristics of the operations associated with cryptocurrency mining, potential growth can
have a significant effect on demand and resource projections as well as system operations.” 2
We have consulted with other federal agencies, including other DOE departmental elements, the U.S.
Environmental Protection Agency, and the Department of the Treasury, but have not identified an
authoritative data source of U.S. cryptocurrency mining energy consumption. Other government and
industry efforts to determine the effects of cryptocurrency mining on the energy system have generally
taken the form of studies, which lack the comprehensive, standardized, timely and consistent nature of
a formal data collection. Data gathered during this emergency clearance will provide critical insight that
informs our approach for the regular clearance process.
Due to the speed with which this activity has potentially disrupted the electric power industry, the time
required to request data collection under normal clearance will exceed the need to urgently collect this
information. This proposed emergency survey is necessary for EIA to fulfill its mission to provide timely
data collection to promote sound policymaking, efficient markets, and public understanding of energy
and its interaction with the economy and the environment. EIA has determined that the collection of
information monthly is required to adequately monitor the effects of cryptocurrency mining.
EIA designed this survey as a company-level form that reports for company facilities. Companies, which
have responsibility for the management of the facilities and often centralize resources, can participate in
a more efficient reporting process without burdening individual facilities. EIA will field a survey of 82
cryptocurrency mining companies and are requesting they report basic information on the facilities they
own and/or operate. EIA estimates that it will take each respondent 0.5 hours to complete the survey
every month, resulting in a total burden estimate of 246 hours if OMB approves this emergency ICR for
the maximum of 180 days.
We plan to publish the data described above following the completion of data collection. Publication
would take the form of a series of articles presented on the EIA website. Publications would be released
in the latter half of 2024.
With your emergency approval, EIA is ready to deploy the Cryptocurrency Mining Facilities survey on
January 29, 2024. We commit to publishing a public notice about this information collection in the
Federal Register within 30 days of approval. We appreciate your understanding of this urgent request
and look forward to your response.

Respectfully,

Joseph F. DeCarolis
Administrator
U.S. Energy Information Administration
2

https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_LTRA_2023.pdf