ArkansasArkansas would charge mining businesses fees for high electricity use
Digital asset mining and blockchain businesses would pay fees tied to high electricity use, with fee money supporting state monitoring and investigations.
What it does
Covered businesses would pay annual fees for extraordinary electricity use in the prior year. The fee ranges from $25,000 to $100,000 based on monthly use, starting at one megawatt.
Before using electricity, a new business would estimate its next year's use and send any fee it believes applies. After a year, it would report actual use and pay any remaining fee.
A business that knowingly gives a materially false energy report could face a state penalty of at least $25,000 per violation. A first conviction would be a misdemeanor; later convictions would be felonies.
Fee proceeds would fund state agency staffing and monitoring of these businesses for energy concerns, fraud and other illegal activity, including state and national security concerns.
Argument forFees could support state monitoring for energy use, fraud and illegal activity, giving agencies resources to investigate concerns tied to these businesses.
Argument againstBusinesses could face large upfront payments based on estimates before their actual energy use is known, which may be difficult for new operators.
More detail
Businesses would pay an annual fee based on monthly electricity use above the listed levels. The rule covers digital asset mining businesses and businesses that use a blockchain network and are operating when the act takes effect. The fee applies for each instance of extraordinary energy use during the preceding calendar year. The annual fee is based on each qualifying instance of use during the preceding calendar year.
New businesses would submit an energy-use estimate and an upfront fee before using electricity at their site. This applies to digital asset mining businesses and blockchain businesses that begin operating after the act takes effect. After one full calendar year of use, the business must submit actual usage records, an attestation and the applicable fees within 30 days. The department must refund an overpayment within 30 days after receiving the required records. The estimate and advance payment are due before the business starts using electricity at its site. Actual use records and fees are due within 30 days after its first full calendar year of use.
The state could penalize knowingly false reports and impose criminal penalties for them. These penalties apply to digital asset mining and blockchain businesses that knowingly make materially false statements about their actual energy use. The department may impose a civil penalty of at least $25,000 per violation if it learns through an audit or other means that a business knowingly made a materially false statement. A conviction is required for the criminal penalties.
State agencies would use the fee proceeds for staffing and oversight. The allocations support oversight of digital asset mining and blockchain businesses, including energy concerns, fraud and other illegal activity. The money would be divided among the Securities Department (50%), Attorney General's Office (25%) and Energy and Environment Department (25%). The agencies could use it only for staffing, operating costs and the specified monitoring work.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29Died in Senate at Sine Die adjournment.Died
- Apr 21Read third time and failed of adoption.
- Apr 8Read the first time, rules suspended, read the second time and placed on the calendar.Minor
- Apr 6FiledIntroduced
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