Request for Information on the Energy and Climate Implications of Digital Assets, 17105-17107 [2022-06284]

Agencies

• Office of Science and Technology Policy

[Federal Register Volume 87, Number 58 (Friday, March 25, 2022)]
[Notices]
[Pages 17105-17107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 [email protected] 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 
[email protected].

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