Texas bill seeks to curb incentives for bitcoin miners

The bill sent to the Texas Senate would deprive bitcoin miners of certain key advantages to operate in the region. CoinDesk reports.

The co-founder and CEO of the Satoshi Action Fund, Dennis Porter, told the publication that the document limits the volume of participation by industry players in demand-response programs within the grid.

Authored by SB 1751, three Republican senators introduced the measure. In the relevant committee the document won unanimous support. In Porter’s view, this implies a 95% likelihood of passage in the Senate.

Texas has become one of the world’s largest mining hubs, largely thanks to low electricity tariffs and a business-friendly climate.

The ability to receive credits for turning off equipment during peak periods of demand so that the operator can meet consumers’ needs.

For example, in nine months of 2022, Riot Platforms (formerly Riot Blockchain) earned $21.3 million in this way.

The SB 1751 sent to the Texas Senate limits miners’ participation in demand-response programs to 10% of total capacity. The bill provides for mandatory registration of facilities with a capacity of more than 10 MW as major flexible-load operators with Texas’s energy provider, ERCOT.

The senators also propose stripping certain tax advantages for miners on some types of property.

“We urge all Texans to contact their representatives and urge them to vote against this free-market ban that would increase ERCOT’s costs for procuring demand-response services. Ultimately, this would raise costs for taxpayers and reduce the stability of the power grid,” Cranley said.

As reported, in March the U.S. Treasury advocated an introduction of an excise tax on mining companies at 30% of the cost of the electricity consumed by the equipment.