Arkansas Senate Bill SB10

Arkansas 2025 Regular Session

• Introduced: 12/13/24
• Refer: 1/13/25
• Failed: 5/5/25

Caption

To Amend The Arkansas Data Centers Act Of 2023; And To Regulate The Impact On Water Usage And The Electric Grid By Blockchain Networks And Digital Asset Mining.

Impact

The introduction of SB10 signifies a proactive approach to managing the environmental implications of emerging technologies in Arkansas. By establishing monitoring protocols, state agencies will better understand the resource demands of blockchain technologies and respond timely to potential threats posed by these industries. The bill seeks to balance technological growth with environmental stewardship, reflecting an acknowledgment of the potential strain on both water resources and electricity supply.

Summary

Senate Bill 10 aims to amend the Arkansas Data Centers Act of 2023, focusing on regulating the influence of blockchain networks and digital asset mining on the state's natural resources. The bill specifically grants the Arkansas Natural Resources Commission the authority to monitor water usage by these operations and take regulatory action if excessive consumption threatens critical groundwater supplies. Furthermore, it empowers the Arkansas Public Service Commission to oversee the impact of these activities on the electric grid and intervene if reliability is at risk.

Contention

Notably, while the bill is positioned to enhance regulatory scrutiny of blockchain operations, it may face opposition from advocates of blockchain technology who argue that such measures could stifle innovation in this burgeoning sector. Concerns may arise regarding the potential for overreach by regulatory bodies, particularly in how they define 'excessive water usage' or determine the threats to the electric grid's reliability. The tension between fostering economic development through digital assets and ensuring sustainable resource management will be central to discussions surrounding SB10.