Texas Senate Committee Approves Bill to Limit Crypto Mining Benefits

Texas has become a major hub for bitcoin mining due to its low electricity prices and business-friendly environment. However, in recent years, the Texas grid operator has slowed approvals for new mining facilities due to the high influx of miners. This bill aims to limit miners’ participation in grid balancing programs such as demand response programs to just 10% of the total participation.

In addition to the participation cap, the bill will also remove tax abatements for certain properties and require miners with over 10 megawatts (MW) of computing power to register as large flexible load operators with the Texas grid operator, ERCOT.

Critics of the bill, such as the Texas Blockchain Council’s Director of Business Development Kristine Cranley, argue that the legislation will increase ERCOT’s cost for procuring demand response services, leading to higher costs for Texas ratepayers and reduced grid stability. However, Texas resident Jackie Sawicky, who opposes Riot’s mining facility in Navarro County, contends that the bill is not an attack on bitcoin miners but rather an attempt to revoke their special treatment.