Unintended consequences
The Ledge is back in town for its fiscal session, which now happens every even-numbered year. While some see it as an easy way for legislators to pad per-diem and mileage expenses, in some cases it also provides a way to try to clean up the mess they made the previous year during the regular session.
That’s certainly the case this year when it comes to crypto-mining. In all, seven resolutions passed the Senate last Thursday alone with the intent of fixing the poorly crafted and hastily passed Arkansas Data Centers Act of 2023, or Act 851, which passed overwhelmingly in the waning days of the 2023 session.
It should be noted that the “resolutions” are not “bills.” They simply provide an OK for what amount to ideas to be sent to committee.
The primary issues related to crypto-mining are in the regulation of noise, and energy and water use of the operations that seem to produce more headaches, complaints and outrage than jobs or revenue for Arkansans. Another issue is foreign ownership.
Since the state opened its doors to these businesses last year, residents near the operations have complained about the loud buzzing that comes from the fans used to cool the computers solving complex equations that unlock access to digital currencies. This cooling requires electricity and water use that has become a concern for local utilities.
Some lawmakers have expressed regret over their votes in favor of the bill, which brings to mind the phrase “unintended consequences,” of which there are many.
The resolutions offered seek to amend the bill in ways that include requiring that no mine be built within 2,000 feet of the nearest residential or commercial building, relocation to industrial parks, allowing local governments to pass crypto mine-specific noise and zoning ordinances, and banning citizens and entities subject to the federal International Traffic in Arms Regulations from owning more than 15 percent of a mine in Arkansas.
One proposal was shot down because of potential—you guessed it—unintended consequences. However, lawmakers reversed course because as Sen. Alan Clark (R-Lonsdale) put it, sending the resolutions to committee would provide an opportunity for representatives from electric and water utilities to come and testify about crypto mines’ extensive usage of their services.
What a novel idea, for a legislative body charged with making the rules we all have to live by, to want to hear from those who are most directly affected by the rules. It seems like this might have been a good course of action last spring when Act 851 was originally passed.
Almost every state legislature that’s ever been convened anywhere at any time does 80 percent of its work during the last 20 percent of the time allotted. This means mistakes are inevitably made, and cleanup is necessary.
We are often reminded what mama said: Get it right the first time, kid, even if it takes longer than you would like. Fixing a mistake takes even more time.