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  | By:  Kolkhorst, et al. | S.B.  No.  1751 |
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  | 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. | |
  |            Statutes affected: Introduced: () Senate Committee Report: () Engrossed: () |