Nebraska legislators advance LB 526 to manage energy costs linked to cryptocurrency mining

In a significant legislative session on April 3, 2025, the Nebraska Legislature addressed pressing energy consumption issues linked to cryptocurrency mining through the advancement of Legislative Bill 526. This bill aims to manage the growing demands on Nebraska's power grid, particularly from high-energy users like cryptocurrency operations, while ensuring the integrity of public power systems.

Senator Jacobson, the bill's proponent, emphasized that LB 526 is not intended to stifle innovation but to promote responsible growth. The legislation introduces three key measures: it allows public power suppliers to require cryptocurrency miners to cover infrastructure upgrade costs, mandates that large mining operations operate under interruptible rate schedules to protect grid reliability, and ensures transparency by requiring public disclosure of energy usage by these operations.

The bill responds to concerns raised by communities experiencing delays or losses in industrial projects due to power availability issues. For instance, Kearney has seen a single cryptocurrency facility consume as much energy as the entire city, highlighting the strain on local resources. Jacobson noted that without proper management, such high consumption could displace other economic opportunities, potentially costing Nebraska significant investments and jobs.

The discussions also revealed a collaborative effort among legislators to address concerns from various stakeholders, including public power districts and cryptocurrency advocates. Amendments to the bill, such as the removal of proposed taxes on cryptocurrency operations, were made to alleviate opposition and foster support.

In addition to LB 526, the session also introduced Legislative Bill 48, which aims to establish family resource and juvenile assessment centers to prevent youth from entering the juvenile justice system. This bill focuses on providing immediate support to families in crisis, emphasizing community-driven solutions and partnerships with local organizations. The pilot program will initially fund two centers, with a focus on ensuring that resources are effectively utilized without imposing new taxes.

As the Nebraska Legislature moves forward with these bills, the implications for energy management and youth support services are poised to shape the state's economic landscape and community welfare. The advancement of LB 526 and LB 48 reflects a proactive approach to balancing innovation with responsible resource management, setting a precedent for future legislative efforts in Nebraska.