Cryptocurrency mining regulations approved

A measure intended to manage the impact of cryptocurrency mining operations on Nebraska’s electrical grid received final approval from lawmakers May 14.

LB526, introduced by North Platte Sen. Mike Jacobson at the request of Gov. Jim Pillen, allows public power suppliers to impose requirements on certain cryptocurrency mining operations for the cost of infrastructure upgrades needed to serve them.

Under the bill, a public power supplier may require direct payment or a letter of credit from a cryptocurrency mining operation or impose terms and conditions on an operation as long as the requirements are fair, reasonable and not unduly discriminatory.

The bill requires a public power supplier to conduct a load study before imposing any requirement. A supplier also must list the number and annual energy usage of cryptocurrency mining operations under its jurisdiction on its website.

Anyone intending to install a cryptocurrency mining operation is responsible for notifying the local public power supplier. Additionally, an operation must allow a supplier to interrupt its electric service according to the supplier’s established rate schedules and policies.

The requirements go into effect Oct. 1 and apply to operations of 1 megawatt in size or greater.

LB526 passed on a vote of 49-0.