Nebraska Passes Bill Requiring Bitcoin Miners to Pay for Grid Upgrades

On May 13, 2025, the Nebraska State Senate unanimously passed LB 526, a bill aimed at tightening oversight of crypto mining operations. The legislation, approved with 49 votes in favor, will take effect on October 1, 2025.

The new law introduces several key measures:

• Mandatory fees for mining companies to fund energy infrastructure upgrades
• Required reporting on energy consumption 
• Authority for power providers to temporarily disconnect mining facilities from the grid when necessary

In addition, LB 526 requires miners to notify local power providers before launching operations and to coordinate technical specifications for grid connection. 

If mining activity triggers the need for infrastructure upgrades, operators will bear the costs by funding the work directly or providing a financial guarantee letter.

Before issuing any such requirements, utilities must conduct a technical load study to assess the potential impact on grid stability. The bill also requires electricity providers to publicly disclose the number of mining operations they serve and their aggregate power consumption. Additionally, utilities are authorized to temporarily disconnect mining sites in line with rate policies and internal load management protocols.

Related: Illegal Bitcoin Mining Drains Malaysia’s Grid: TNB Sounds the Alarm

Why Now? The Context Behind LB 526

The passage of LB 526 underscores the growing focus among U.S. states on regulating crypto mining, especially as demand rises in regions with cheap electricity.

As seen in Texas, where miners have repeatedly faced criticism for triggering power disruptions, Nebraska is now confronting similar concerns about grid stability.

A major factor behind the bill was the presence of Marathon Digital, one of the industry’s largest players, which completed a large-scale equipment upgrade at its Kearney facility in early 2025. 

In smaller cities like Kearney, with a population of just 6,600, such operations can place considerable strain on local infrastructure. LB 526 aims to bring technical clarity and transparency to the sector, helping to prevent overloads and manage potential conflicts between miners and utilities.

Impact and Implications of LB 526

While LB 526 does not outright ban crypto mining, it introduces a new layer of regulatory friction, adding compliance procedures and infrastructure costs. Mandatory payments for grid upgrades, detailed energy reporting, and utility-controlled disconnections could make Nebraska a less attractive destination for new miners.

For established players like Marathon Digital, the law may slow down expansion plans and prompt a strategic reassessment. Nevertheless, the bill signals Nebraska’s intent to strike a balance: rather than outlaw mining, the state aims to fold it into a resilient energy framework.

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This case could set a precedent for other U.S. states looking to support digital innovation while safeguarding critical infrastructure from overloads and instability.

What’s Next?

LB 526 is slated to take effect on Oct. 1, 2025—unless vetoed by the governor. While Governor Jim Pillen has previously spoken favorably about the crypto sector, he has yet to comment specifically on mining. Given the bill’s unanimous legislative support (49–0), a signature appears highly likely.

In the coming weeks, attention will turn to the industry’s response, especially from Marathon Digital, the largest mining operator in Nebraska. Any decision to scale back or adjust operations could offer the first tangible signal of how the law will affect the market.

The bill is also expected to spark wider discussion across the sector, particularly among infrastructure providers and utilities now preparing to operate under a revised regulatory framework.

Related: Nebraska Enacts New Crypto ATM Regulations: What Will Change?