Arkansas House Bill HR1019

Arkansas 2024 Regular Session

• Introduced: 4/10/24
• Report Pass: 4/16/24
• Refer: 4/10/24
• Failed: 5/9/24

Caption

To Authorize The Introduction Of A Nonappropriation Bill To Require A Digital Asset Mining Business To Pay A Fee For Extraordinary Electrical Energy Usage.

Impact

The introduction of HR1019 reflects an increasing concern regarding the power consumption attributed to digital asset mining, which has become a contentious issue in many states. By enforcing these fees, the state anticipates that it will not only generate revenue that can be reinvested into monitoring and enforcement resources but also incentivize digital asset mining businesses to adopt more energy-efficient practices. Additionally, this regulation may bring Arkansas in line with best practices adopted in other jurisdictions where energy use in cryptocurrency mining is heavily scrutinized.

Summary

House Resolution 1019 (HR1019) proposes to amend the Arkansas Data Centers Act of 2023 by instituting a fee structure for digital asset mining businesses based on extraordinary electrical energy usage. The bill outlines a tier system where fees range from $25,000 for certain low levels of electricity consumption to $100,000 for businesses that utilize significant amounts of energy. Each digital asset mining operation will also be subject to oversight and monitoring procedures to ensure compliance with these new regulations. The intent behind this legislation is to mitigate the environmental impact of energy-intensive blockchain activities and ensure responsible energy consumption and usage.

Contention

While supporters of HR1019 argue that it encourages sustainable energy use and provides a necessary framework for an unregulated industry, opponents raise concerns about the potential financial burden on businesses operating in the digital asset space. They suggest that imposing such hefty fees may drive these operations out of the state, negatively impacting Arkansas’ position in the high-tech economy. This opposition may also stem from fears that increased regulation could stifle innovation within the sector, particularly as many digital asset mining businesses seek to find a foothold in a rapidly evolving marketplace.