On May 1st, the Arkansas House of Representatives passed Senate Bills 78 and 79, which amended the Arkansas Data Centers Act of 2023, sometimes known as the “Right to Mine” Act. These bills are expected to be signed into law by the Governor today.
What does this mean for miners in the state?
The biggest unknown change is the creation of a state licensing and regulatory system overseen by the Oil and Gas Commission under the Department of Energy and Environment, which shall establish requirements for permitting of digital asset mining business. This can be expected to take some time before we see new rule making, as the Oil and Gas Commission will have to recruit knowledge individuals, prepare a report on their proposed process, hold public comment, and ultimately, vote and create the permitting regime and then implement it. Arkansas Blockchain Counsel will be a key stakeholder for communicating industry needs and thoughts throughout this process, which will likely take place over the next year.
Are there changes which impact my business immediately?
While there are some impacts from the bill – they are not equally shared. The good news: if you have a mine operating right now, you are likely shielded from most impacts.
The key aspects of these amendments are as follows:
Zoning and Ownership:
- Municipalities cannot rezone an area where a mine is already operating.
- Foreign ownership by governments, entities, or persons designated in the US International Traffic in Arms Regulations is prohibited. If a mine is owned by such an entity, they must divest within 365 days.
- If a site is not zoned industrial, or has received a special use permit or similar, sites must be at least 2000 feet from residential / commercial use structures.
Noise Ordinance:
- The good news: no statewide noise ordinance was put in place. However, local entities may now pass and create new noise regulations for digital asset mining businesses.
- If the mine is not using liquid cooling technology, then mines must have the “envelope fully enclosed.”
- What? In laymen’s terms, pre-manufactured structures must have all sides enclosed and the exhaust side shall have some level of noise abatement. In practice, this means Ant Boxes can’t be used unless your site meets the zoning / 2000 ft rule.
ABC has played a critical role in both minimizing the impact of the amendments and serving as the primary voice for the industry throughout this process. We will continue to do so as the licensing committee and other elements of the amendments play out over the year. Your voice has never been more critical. Join us and make sure we can continue to defend your rights and represent your interests. If you have a question, you can also reach out at .
