By: Kolkhorst, Campbell, Nichols  S.B. No. 1751
         (In the Senate - Filed March 7, 2023; March 20, 2023, read
  first time and referred to Committee on Business & Commerce;
  April 5, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 11, Nays 0; April 5, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1751 By:  Kolkhorst
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the regulation and tax treatment of facilities in the
  ERCOT power region that demand a large load of interruptible power.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Section 39.1591 to read as follows:
         Sec. 39.1591.  VIRTUAL CURRENCY MINING AS DEMAND RESPONSE.
  (a)  In this section:
               (1)  "Virtual currency" has the meaning assigned by
  Section 12.001, Business & Commerce Code.
               (2)  "Virtual currency mining facility" means a
  facility that uses electronic equipment to add virtual currency
  transactions to a distributed ledger.
         (b)  The commission shall require the independent
  organization certified under Section 39.151 for the ERCOT power
  region to ensure that any demand response program operated by the
  independent organization to respond to emergencies that provides
  compensation for load reductions is open to participation by a
  virtual currency mining facility that is registered as a large
  flexible load under Section 39.360 only if the anticipated demand
  provided under Section 39.360(b) for all facilities of that type
  participating in the program is less than 10 percent of the total
  load required by all loads in the program.
         SECTION 2.  Subchapter H, Chapter 39, Utilities Code, is
  amended by adding Section 39.360 to read as follows:
         Sec. 39.360.  LARGE FLEXIBLE LOAD REGISTRATION. (a)  The
  commission by rule shall require a person operating a facility who
  enters into an agreement for retail electric service in the ERCOT
  power region to register the facility receiving service as a large
  flexible load under this section if:
               (1)  the person anticipates that the facility will
  require a total load of more than 10 megawatts before the second
  anniversary of the date the agreement begins;
               (2)  the facility load is interruptible; and
               (3)  the facility is a computing load.
         (b)  The rules must require a person described by Subsection
  (a) to:
               (1)  register the large flexible load with the
  commission not later than one business day after the date the
  agreement begins; and
               (2)  provide the commission with:
                     (A)  the location of the facility; and
                     (B)  the anticipated demand from the facility for
  the five-year period beginning on the date of the registration.
         SECTION 3.  Subchapter A, Chapter 312, Tax Code, is amended
  by adding Section 312.0022 to read as follows:
         Sec. 312.0022.  PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
  VIRTUAL CURRENCY MINING PROPERTY. (a) In this section:
               (1)  "Virtual currency" has the meaning assigned by
  Section 12.001, Business & Commerce Code.
               (2)  "Virtual currency mining facility" means a
  facility that uses electronic equipment to add virtual currency
  transactions to a distributed ledger.
         (b)  This section applies only to a virtual currency mining
  facility registered as a large flexible load under Section 39.360,
  Utilities Code.
         (c)  The governing body of a taxing unit may not enter into an
  agreement under this chapter to exempt from taxation a portion of
  the value of real property on which a virtual currency mining
  facility is located or is planned to be located during the term of
  the agreement, or of tangible personal property that is located or
  is planned to be located on the real property during that term.
         SECTION 4.  Section 312.0022, Tax Code, as added by this Act,
  applies only to an agreement entered into under Chapter 312, Tax
  Code, on or after the effective date of this Act.
         SECTION 5.  This Act takes effect September 1, 2023.
 
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