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LB 526

Provide powers and duties for public power districts related to cryptocurrency mining operations

109th Legislature (2025-2026) Introduced by Mike Jacobson

Public power utilities may require large crypto miners to cover grid upgrade costs upfront, with load studies, transparency, and possible service interruptions.

Approved by Governor on May 20, 2025
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Bill Summary · LB 526

Summary — LB 526 (2025)

Status: Approved by Governor May 20, 2025 (Final Reading passed 49–0–0). Operative date: October 1, 2025. Introduced January 22, 2025 by Senator Mike Jacobson (at Governor’s request).

Purpose

LB 526 gives public power suppliers explicit authority to protect their systems and allocate costs when large cryptocurrency mining facilities create new or increased electric loads that necessitate transmission or distribution upgrades. The bill aims to ensure that the costs and operational impacts of such facilities are identified and addressed up front.

Key provisions

  • Definitions

    • “Cryptocurrency mining” — validating transactions for addition to a blockchain distributed ledger.
    • “Cryptocurrency mining operation” — any facility of one megawatt (1 MW) or greater that conducts cryptocurrency mining.
    • “Public power supplier” — public power districts, municipal electric utilities, or other government entities providing electric service.

  • Authority for public power suppliers

    • May impose requirements on cryptocurrency mining operations to cover the cost of necessary infrastructure upgrades, including requiring direct prepayment or a letter of credit.
    • May impose terms and conditions on such operations. All requirements must be “fair, reasonable, and not unduly discriminatory.”

  • Studies and procedure

    • Must conduct a load study (independent grid impact/load study) before imposing any requirement to determine costs, impacts, and necessary upgrades.

  • Notification, interconnection, and operational controls

    • Any person intending to install a qualifying mining operation must notify the local public power supplier and is subject to the supplier’s interconnection requirements.
    • Public power suppliers must publish on their websites the number of cryptocurrency mining operations under their jurisdiction and each operation’s annual energy usage.
    • Suppliers may interrupt a mining operation’s electric service according to the supplier’s established rate schedules and policies.

Notable amendment/action

  • An earlier version of the bill (and the introducer’s statement) included a 2.5‑cent per kWh excise tax on cryptocurrency mining above 1,000 kWh/year with proceeds to the General Fund. Amendment AM691 struck that excise tax; the enacted bill does not impose the tax.

Who is affected

  • Primary: cryptocurrency mining operations of 1 MW or larger (developers/operators).
  • Utilities: public power districts, municipal utilities, and other public power suppliers (authority and administrative tasks).
  • Indirect: local communities, ratepayers (cost-allocation and potential service planning), and developers considering new mining facilities.

Potential impacts/considerations

  • Shifts upfront financial responsibility for distribution/transmission upgrades to large miners (via prepayment or letters of credit).
  • Increases transparency (public reporting of counts/usage).
  • Gives utilities explicit operational control (interruption rights) to protect grid reliability.
  • Could deter some large projects or change contract/financing arrangements for miners due to prepayment/credit requirements.
  • No new state excise revenue was enacted after amendment.

Legislative milestones: Referred to Revenue Committee (Jan 24), hearing Feb 12, AM691 adopted Mar 27, advanced and passed Final Reading Apr–May 2025, presented to Governor May 14, approved May 20, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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