Cruz Introduces FLARE Act to Boost Crypto Mining with Surplus Gas

Senator Ted Cruz has introduced the Facilitating Lower Atmospheric Released Emissions (FLARE) Act, a legislative proposal aimed at encouraging cryptocurrency miners to utilize surplus natural gas that is typically discarded. The bill seeks to provide tax benefits to companies that collect and repurpose flared natural gas, a byproduct of oil drilling usually released into the air. Under the FLARE Act, companies investing in systems to reduce flaring and venting would qualify for complete tax deductions. These systems would transform excess natural gas into valuable energy sources such as electricity, liquid fuels, or processing power for digital asset mining.

Cruz highlighted the bill’s potential economic and environmental benefits, particularly in Texas. He emphasized that the initiative would minimize waste, generate economic opportunities, and position Texas as a leader in Bitcoin mining. He urged his fellow legislators to support the bill, underscoring its importance in advancing energy innovation and environmental stewardship.

The legislation includes measures to prevent foreign entities of concern from obtaining tax benefits. This restriction targets U.S.-allied businesses to ensure that tax incentives remain within the boundaries of American domestic energy independence. The initiative also supports the reduction of harmful emissions through the repurposing of waste gas, simultaneously strengthening both energy capacity and delivery networks. Proponents advocate this approach because it enhances the stability of the grid system, especially during times of intense weather and high demand usage.

Several industry players have expressed support for the FLARE Act. Bitcoin mining firm MARA Holdings stated that the bill could “reduce emissions and unlock stranded energy” in Texas and beyond. MARA has already implemented a 25-megawatt micro data center operation in Texas and North Dakota, using excess gas to generate electricity for data processing. If the bill passes, similar infrastructure projects would qualify for permanent full expensing, allowing companies to deduct the entire cost of implementation from their taxable income starting in 2026.

Cruz has previously advocated for using excess energy from oil and gas operations for Bitcoin mining. At the 2021 Texas Blockchain Summit, he suggested that instead of flaring natural gas, it should be put to productive use. “Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it, you’re helping the environment enormously,” he said at the time. The FLARE Act has sparked discussion about the intersection of cryptocurrency mining and energy sustainability. As the bill moves through legislative review, its potential impact on both the mining industry and environmental efforts will be closely watched.