Arkansas Senate Bill SR11

Arkansas 2024 Regular Session

• Introduced: 4/10/24
• Passed: 4/15/24

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

By implementing the extraordinary electrical energy usage fee, SR11 seeks to foster a more responsible approach among digital asset mining businesses, ensuring they contribute to the state's energy regulatory ecosystem. The fee structure is tiered, with specified amounts based on varying levels of energy usage from one megawatt (MW) to over ten MW. This not only creates a clear financial obligation but also strengthens the oversight framework for monitoring energy consumption related to digital asset mining activities in Arkansas.

Summary

SR11 is a Senate Resolution that authorizes the introduction of a nonappropriation bill aimed at amending the Arkansas Data Centers Act of 2023. This bill specifically targets digital asset mining businesses by requiring them to pay an annual fee to the Arkansas Department of Energy and Environment based on their extraordinary electrical energy usage. The intent is to create a regulatory framework that imposes a financial responsibility on these businesses for their significant energy consumption, thereby addressing concerns about energy consumption and the environmental impacts associated with digital asset mining operations.

Contention

As with any regulatory initiative, SR11 may face opposition, especially from stakeholders in the digital asset mining industry who may argue that such fees could hinder business operations or lead to operational relocations to states with less stringent regulations. Proponents, however, are likely to advocate for the bill as a necessary step to ensure sustainable energy practices and environmental stewardship in the face of growing digital asset mining activities, which can significantly strain local energy resources.