Austin News

U.S. Senator Ted Cruz has introduced the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, aiming to promote on-site energy generation by decentralizing electricity sources and enhancing grid resiliency during periods of high demand or extreme weather.

"I am committed to making Texas the number one place for Bitcoin mining. The FLARE Act incentivizes entrepreneurs and crypto miners to use natural gas that would otherwise be stranded," stated Cruz. He emphasized that the bill leverages Texas's significant energy potential while reinforcing its status as a hub for the Bitcoin industry. Cruz urged his colleagues to swiftly consider and advance the legislation.

The Digital Power Network has endorsed the bill. Hailey Miller, Director of Government Relations & Public Policy for the organization, expressed support for the initiative, stating, "The Digital Power Network strongly supports the introduction of the FLARE Act by Senator Cruz. This critical legislation will help eliminate unnecessary flaring and venting of natural gas while unlocking new opportunities for energy innovation in the United States."

Miller highlighted the bill's provision of permanent full expensing for infrastructure that captures and utilizes flared gas, creating strong incentives for industries such as Bitcoin mining to convert wasted energy into productive uses, which both strengthen the grid and promote economic growth.

"Bitcoin miners are uniquely positioned to help reduce emissions by harnessing stranded and wasted energy sources," Miller added. The FLARE Act, she said, ensures that American energy producers can implement advanced solutions to enhance energy market efficiency and resilience.

The FLARE Act also specifies the permanent 100% bonus depreciation for equipment that processes natural gas into electricity and other productive uses. It prohibits entities owned by China, Iran, North Korea, or Russia from using this cost recovery option. The bill aims to lower emissions by encouraging the conversion of stranded natural gas into usable energy.