He introduced a bill that would regulate the environmental footprint of cryptocurrency mining operations in Arkansas

In its upcoming 2025 session, state lawmakers will consider legislation that would place more regulations on cryptocurrency mining operations across the state.

Senator Brian King (R-Green Forest) has introduced a bill that would regulate the environmental footprint of energy-intensive data centers used to mine cryptocurrencies. Such operations have opened across the country, including in more rural states, such as Arkansas.

In 2024, the state legislature passed laws that imposed noise limits on cryptocurrency mines, limited ownership of data centers by certain foreign entities and allowed local governments some oversight of operations. The new regulations were passed retroactively after the state Legislature in 2023 approved them Arkansas data center lawIt is a law that limits the government’s ability to regulate the industry.

Mining operations are viewed by some as an economic opportunity for Arkansas. But data centers have faced widespread public backlash due to noise pollution near the communities in which they are located. There are mining operations in Faulkner County near Bono and also at DeWitt and other places.

King, a Republican who represents a rural district covering parts of six different counties, proposed the latest bill to give Arkansas the authority to regulate water and electricity use in data centers. During the 2024 legislative session, King was one of several lawmakers working to regulate data centers, a report said Arkansas attorney.

King could not be reached for comment on his bill as of publication of this story.

The proposed legislation would allow state regulators to take action “against a blockchain network or digital asset mining business if the influence of a blockchain network or digital asset mining business threatens vital groundwater supplies,” according to the draft bill.

It will also allow regulatory bodies to monitor the use of electricity in operations.

Cryptocurrency mining facilities require huge amounts of electricity to operate as well as using large amounts of water for cooling purposes. According to A United Nations University and Earth’s future Journal studyDuring 2020-2021, the global Bitcoin mining industry used an amount of electricity that would have placed it 27th globally if it were a country, placing the industry above Pakistan, with a population of 230 million, in terms of energy consumption.

Cryptocurrency institutions use data centers to “mine” cryptocurrencies, such as Bitcoin, thus creating the term cryptocurrency mining. Current Arkansas regulations regarding data centers apply to data centers used specifically for cryptocurrency mining.

King’s bill would enable Natural Resources Committeea state commission Department of AgricultureTo establish rules for collecting information and regulating water use in data centers. Computers tend to overheat, especially when under the pressure of intensive computing operations, such as cryptocurrency mining or artificial intelligence, which makes cooling with large amounts of water necessary.

His bill would also direct Arkansas Public Service Commissionwhich regulates utilities such as electric and gas companies, to produce rules monitoring electricity use in data centers. If passed, the law would allow the Public Service Commission to “direct utilities to discontinue service to a blockchain network” if the reliability of the electric grid is threatened by electricity usage.

Data centers have been popping up all over rural Arkansas in recent years, with A A prominent position in Cabot for its use of cryptocurrencies See the recent controversy in Lonoke County Circuit Court.

Arkansas Oil and Gas Committee It voted to begin rulemaking for data centers in December 2024, with rules setting out how individuals and companies can qualify for a permit and what permit violations will entail. The Oil and Gas Commission is accepting public comments on the proposal until January 13, 2025. Data centers currently operating for cryptocurrencies will also have to apply for and obtain a permit within 90 days of the oil and gas rules being finalized.

If King’s bill is approved by the Legislature and signed by Gov. Sarah Sanders, three state agencies would develop rules to regulate data centers. The legislative session is scheduled to begin on January 13 of this year.