Ted Cruz proposes FLARE Act with $6B flared gas incentives

Texas Senator Ted Cruz has introduced the Facilitate Lower Atmospheric Released Emissions (FLARE) Act, a bill designed to incentivise the use of flared or vented natural gas for energy generation, particularly in cryptocurrency mining operations.

The legislation aims to position Texas as a leading hub for Bitcoin (CRYPTO:BTC) mining while addressing environmental concerns by repurposing wasted energy resources.

The FLARE Act proposes amendments to the U.S. Internal Revenue Code to offer tax incentives for industries capturing flared gas and converting it into value-added products such as electricity.

If enacted, the bill would apply to properties placed into service starting in 2026.

“This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment,” stated Cruz, emphasising its importance.

The bill has received endorsements from MARA Holdings, a Bitcoin mining company, and the Digital Power Network advocacy group.

MARA Holdings highlighted the environmental benefits of the proposal, claiming it would reduce emissions and unlock stranded energy sources.

Hailey Miller, Director of Government Relations for the Digital Power Network, added that the legislation could “eliminate unnecessary flaring and venting of natural gas while unlocking new opportunities for energy innovation.”

In addition to incentivising flared gas use, the FLARE Act includes provisions prohibiting entities owned by China, Iran, North Korea, or Russia from benefiting under its framework.

This aligns with broader security measures aimed at limiting foreign influence in critical industries.

The proposal reflects growing interest in diversifying revenue streams for Bitcoin miners.

Following Bitcoin’s April 2024 halving event, which reduced mining rewards by half, many miners have pivoted toward alternative business lines such as AI data center hosting and high-performance computing.

While Cruz’s bill addresses energy and environmental challenges, its legislative priority remains uncertain as Congress debates other crypto-related measures.

These include bills regulating stablecoins and digital asset market structures.

As lawmakers weigh competing priorities, the FLARE Act represents a significant step in integrating cryptocurrency mining with sustainable energy practices.