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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation and tax treatment of facilities in the |
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ERCOT power region that demand a large load of interruptible power. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1591 to read as follows: |
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Sec. 39.1591. VIRTUAL CURRENCY MINING AS DEMAND RESPONSE. |
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(a) In this section: |
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(1) "Virtual currency" has the meaning assigned by |
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Section 12.001, Business & Commerce Code. |
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(2) "Virtual currency mining facility" means a |
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facility that uses electronic equipment to add virtual currency |
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transactions to a distributed ledger. |
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(b) The commission shall require the independent |
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organization certified under Section 39.151 for the ERCOT power |
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region to ensure that any demand response program operated by the |
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independent organization to respond to emergencies that provides |
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compensation for load reductions is open to participation by a |
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virtual currency mining facility that is registered as a large |
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flexible load under Section 39.360 only if the anticipated demand |
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provided under Section 39.360(b) for all facilities of that type |
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participating in the program is less than 10 percent of the total |
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load required by all loads in the program. |
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SECTION 2. Subchapter H, Chapter 39, Utilities Code, is |
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amended by adding Section 39.360 to read as follows: |
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Sec. 39.360. LARGE FLEXIBLE LOAD REGISTRATION. (a) The |
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commission by rule shall require a person operating a facility who |
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enters into an agreement for retail electric service in the ERCOT |
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power region to register the facility receiving service as a large |
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flexible load under this section if: |
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(1) the person anticipates that the facility will |
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require a total load of more than 10 megawatts before the second |
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anniversary of the date the agreement begins; |
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(2) the facility load is interruptible; and |
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(3) the facility is a computing load. |
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(b) The rules must require a person described by Subsection |
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(a) to: |
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(1) register the large flexible load with the |
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commission not later than one business day after the date the |
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agreement begins; and |
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(2) provide the commission with: |
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(A) the location of the facility; and |
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(B) the anticipated demand from the facility for |
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the five-year period beginning on the date of the registration. |
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SECTION 3. Subchapter A, Chapter 312, Tax Code, is amended |
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by adding Section 312.0022 to read as follows: |
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Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN |
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VIRTUAL CURRENCY MINING PROPERTY. (a) In this section: |
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(1) "Virtual currency" has the meaning assigned by |
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Section 12.001, Business & Commerce Code. |
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(2) "Virtual currency mining facility" means a |
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facility that uses electronic equipment to add virtual currency |
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transactions to a distributed ledger. |
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(b) This section applies only to a virtual currency mining |
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facility registered as a large flexible load under Section 39.360, |
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Utilities Code. |
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(c) The governing body of a taxing unit may not enter into an |
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agreement under this chapter to exempt from taxation a portion of |
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the value of real property on which a virtual currency mining |
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facility is located or is planned to be located during the term of |
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the agreement, or of tangible personal property that is located or |
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is planned to be located on the real property during that term. |
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SECTION 4. Section 312.0022, Tax Code, as added by this Act, |
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applies only to an agreement entered into under Chapter 312, Tax |
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Code, on or after the effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2023. |
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