Resolution would let senator introduce fees for high-use mining businesses

The bill that the resolution would allow a senator to introduce would require annual fees for extraordinary electricity use. The fee would cover digital asset mining businesses and businesses using blockchain networks that are operating when the proposed act takes effect. The fees would be based on monthly electricity use, with amounts ranging from $25,000 to $100,000 for each instance, depending on the amount used. The annual fee would cover each instance of extraordinary use during the preceding calendar year.

The proposed bill would require new businesses to estimate, report, and pay fees for electricity use. These requirements would cover digital asset mining businesses and businesses using blockchain networks that begin operating after the proposed act takes effect. Before using electricity at a site, a business would submit a good faith estimate for the next calendar year and any fee it believes applies. Within 30 days after its first calendar year of electricity use, the business would submit an attestation and records of actual use and pay applicable fees. The department would refund an overpayment within 30 days after receiving those materials. Knowingly making a false material statement could bring a penalty of at least $25,000 per violation. Upon conviction, a first offense would be a misdemeanor and a later offense a felony. The estimate and initial payment would be due before electricity use begins. Actual-use records and any remaining fees would be due within 30 days after the first calendar year of use.

The proposed bill would direct fee proceeds to three state agencies for staffing and oversight. The distribution would apply to proceeds from the proposed extraordinary electricity-use fees. The State Securities Department would receive 50%, the Attorney General's Office 25%, and the Department of Energy and Environment 25%. The agencies would use the money for staffing, operating costs, and oversight. The Attorney General's Office could also investigate state and national security concerns.