Introduction to the FLARE Act
U.S. Senator Ted Cruz (R-TX) has introduced a brand new bill that goals to show waste energy into electricity for Bitcoin mining. The Facilitate Lower Atmospheric Released Emissions (FLARE) Act, introduced on March 31, is geared towards making waste energy productive by capturing gas that will otherwise be flared or vented.
Purpose of the FLARE Act
The plan is to incentivize this capture by offering full expensing for property used to capture that gas. Cruz specifically pointed to crypto mining as a direct output of this extra energy. In an announcement announcing the bill’s introduction, he said that it, “takes advantage of Texas’s vast energy potential, reinforces our position as the house of the Bitcoin industry, and is nice for the environment.”
Benefits of the FLARE Act
The Senator affirmed his commitment to "making Texas the primary place for Bitcoin mining,” adding that the FLARE Act, “incentivizes entrepreneurs and crypto miners to make use of natural gas that will otherwise be stranded." The U.S. focused bill specifically names competitive countries that shall not be allowed to take part in the scheme, including China, Iran, North Korea, and Russia.
Support for the FLARE Act
In a press release from Cruz’s office, Hailey Miller, Director of Government Relations & Public Policy on the Digital Power Network, praised the brand new bill, saying that Bitcoin miners are “uniquely positioned to assist reduce emissions by harnessing stranded and wasted energy sources.” Miller added that the FLARE Act “ensures that American energy producers have the tools to deploy cutting-edge solutions that make our energy markets more efficient and resilient."
How the FLARE Act Works
The latest Act would specifically, "amend the Internal Revenue Code of 1986 to supply for everlasting full expensing for property used to capture gas that will otherwise be flared or vented and to make use of such gas in value-added products." This measure must also help to boost grid resilience while offering latest electricity and "other useful outputs."
Background and Context
Cruz’s bill comes after U.S. President Donald Trump pledged to be certain that “all remaining Bitcoin” could be mined within the U.S. as a part of his reelection campaign. Bitcoin advocates have long held that mining the cryptocurrency may very well be a method of harnessing waste energy from natural gas flaring, the practice of burning off excess gas that may’t be economically captured or transported.
Conclusion
The FLARE Act has the potential to make a big impact on the environment and the Bitcoin mining industry. By capturing waste energy and using it to mine Bitcoin, the Act will help reduce emissions and promote sustainable energy practices. With the support of key stakeholders and the potential for significant advantages, the FLARE Act is a very important step forward for the Bitcoin mining industry and the environment.
