Congressman Cohen Introduces the Clean Cloud Act

WASHINGTON – Congressman Steve Cohen (TN-9) today introduced the Clean Cloud Act, legislation to establish emission standards for electricity used by high-demand energy users such as cryptominers and data centers. The measure has seven original cosponsors. The companion bill was introduced by Senators Sheldon Whitehouse (D-RI), Ranking Member of the U.S. Senate Committee on Environment and Public Works (EPW), and Senator John Fetterman (D-PA). 

Congressman Cohen made the following statement:

“The rapid growth of cryptominers and data centers is straining our energy grid and outpacing the growth of carbon-free electricity. Utilities are raising consumer electricity rates and relying increasingly on gas and coal generation to meet this load growth. In some instances, retired coal plants have even been brought back online to power cryptomining facilities. Even in markets with solar or wind, data centers often run 24/7 and require either long-duration storage or clean firm generation to be truly carbon neutral.

“Memphis already hosts significant data-center and data-processing operations, and more companies are looking to the Mid-South because of our strategic location. But Memphis is one of the most energy-burdened cities in America where families spend a larger share of their income on utilities than almost anywhere in the country. We cannot allow high-demand industries to increase pressure on the Tennessee Valley Authority’s (TVA) system or lead to higher bills for Memphis households.

“The Clean Cloud Act ensures that as data-center development inevitably grows, it’s powered responsibly, supported by new zero-carbon generation, and doesn’t leave communities like ours footing the bill.” 

The bill also:

• Requires an annual, published survey of cryptominers and data centers 

• Establishes an emissions intensity baseline

• Incentivizes new clean power development

• Supports energy affordability programs for residential consumers 

• Invests in zero-carbon electricity and battery storage

The Clean Cloud Act is endorsed by the following organizations: EnergyTag, Utility Workers Union of America (UWUA), Public Citizen, Southern Environmental Law Center, and Center for Biological Diversity

Endorsement statements:

“The US is experiencing significant demand growth driven, in part, by data center buildout and rapidly increasing electricity consumption. The Clean Cloud Act asks the largest energy users to take responsibility for their impacts by matching their electricity consumption with new clean electricity matched to the hour when and the location where they operate. When electricity users match their usage with new, near, and now clean electricity, the energy grid becomes more efficient, and savings can be passed along to consumers. The solutions outlined in this bill will help ensure that industrial growth does not exacerbate the affordability crisis we see today and drives around the clock clean energy forward,” said Alex Piper, Head of US Policy and Markets at EnergyTag. “EnergyTag applauds Congressman Cohen for his leadership here. Clean, affordable growth is necessary and possible, and this bill sets the foundation.”  

“This is a meaningful step toward finally reining in pollution from the high-emitting AI and cryptomining industries. The commonsense measures in the Clean Cloud Act will cut carbon emissions and prevent these sectors from deepening the climate crisis and putting communities at risk,” said Camden Weber, climate and energy policy specialist at the Center for Biological Diversity. “Rep. Cohen’s bill is a smart, much-needed move to bring oversight to these industries, which have operated without safeguards.”

“We fully support the goals behind the Clean Cloud Act, especially the opportunity to build additional power generation, increase electric grid stability and grow energy industry jobs,” said Utility Workers Union of America President James Slevin.  “We anticipate electricity demand on the grid continuing to grow exponentially over the coming years and we appreciate Congressman Cohen’s continued advocacy on this important issue.” 

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