BRENHAM PLANNING AND ZONING TO CONSIDER PROHIBITING COMMERCIAL CRYPTO MINING AT HOMES

  

The Brenham Planning and Zoning Commission will discuss cryptocurrency and whether to disallow cryptocurrency mining in residential areas at its meeting this (Monday) evening.

The commission will seek to amend the city’s code of ordinances pertaining to limitations on home occupations.  The new language, if approved, would prohibit commercial cryptocurrency mining as a home occupation or hobby.

This past fall, the city received a request for additional electricity for a single-family home to support large, state-of-the-art computer systems needed for DigiCoin trading.  The city met with the property owner to discuss the additional electrical upgrades for the proposed use, allowing an additional 1,200 amps of electrical service to the standard 200 amps.

Since approval, city staff say the electricity load for the residential property has been excessive, to the point the usage is the same as found in large commercial contracts.  A major difference is the deposit associated with utility accounts based on the use of the property; according to the city, currency mining at a home does not require any additional deposit for service, and properties with currency mining generate bills that far surpass the $300 deposit if a bill were to default.

The city says further research from staff has led to findings that cryptocurrency mining has additional impacts and, if allowed to continue in residential zoned areas, could result in the need for additional and costly infrastructure.  Therefore, language has been drafted to define and disallow commercial cryptocurrency mining and server farms in residential areas.

Also tonight, commissioners will consider a commercial replat request from Appel Hill Properties, LP and HH Brenham Holdings, LP.  The property owners seek to replat their three tracts in the Appel Business Park on Highway 290 West, next to Robert C. Appel Drive, into two tracts.  The replat would allow further development and expansion of their existing automobile dealership.  Staff recommends approval of the request.

The commission will meet today at 5:15 p.m. at Brenham City Hall.

Click here to read the agenda packet for today's meeting.

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14 Comments

  1. I wonder about the legality of banning people from doing something in their own home? If there’s an electrical usage problem then limit the amount that people can buy or have in one residential unit

    1. Zoning restricts commercial enterprises to be not allowed in residential areas. They’re running a business in a home. Probably a case of the city not having the use determined so they will now establish that in the ordinance and define it. It happens when new things in the world are established that once weren’t a thing.

    2. Clarice, that is exactly what they are doing. . .limiting the amount of electricity wattage for a residential unit. These operations use as much electricity as 5+ homes.

    3. The legality of zoning is well established (unfortunately) but enforceability is a wholly other matter. We don’t want to mess with any of that. It’s utterly delusional to try to tilt at the crypto windmill. The surest way to kill a cryptocurrency mining operation is to increase the energy cost. Residential power usage probably fits a bell curve. Wherever there are a bunch of outliers on the high side of the curve, that’s where the City should simply charge a higher marginal rate per kWh to address variable costs or require a larger deposit to cover fixed costs and collections risk. Making electric customers pay a fair market price for electric service would take care of the issue right quick. Might also solve some other problems with certain customers that the City didn’t know it even had.

  2. I am happy to see the City of Brenaham taking a common sense approach here. “Crypto mining” is a gross waste of our energy resources. Just a gross waste. Use oil/gas/solar resources to “crack” digital sequences to obtain a non-material asset that is backed by nothing of real value (no products sold or income, no material assets)?
    If you think about this concept for a minute it is just absolutely ridiculous. This all seems like a setup to waste resources and put us further in a hole. Think about this – when companies go public they issue X number of shares of stock at a given price. There is nothing to explain the fact that whoever setup “bitcoin” left millions of them to be “cracked” by people throwing electricity down the drain. There is something behind all of this and I guess we will find out what that is at some point.

  3. COUNCIL MAKE THE RIGHT DECISION! THE IS NO GOOD REASON TO OUTRIGHT BAN CRYPTO MINING. AT THE VERY MOST, IMPOSE RESTRICTIONS DURING HIGH USE SCENARIOS SUCH AS THOSE EXPERIENCED DURING THE STORM OF 21′.

  4. The entire complaints about home crypto mining seem to revolve around a series of “what-if” scenarios that aren’t actually happening. There’s no grid overload. There’s no bill defaults. There’s no rolling blackouts. This type of small town mentality and shortsighted thinking will only drive young and/or forward-thinking people out of Brenham. Why punish everyone including small hobbyist miners for the actions (or potential actions) of just a few? The reality is that the vast majority of home miners are using much less energy than the person you are basing this proposed ban on. In a normal community, a business (the electric company) would appreciate customers consuming more of its product (electricity). Crypto is the future. Get on board or be left behind.

    1. I don’t think people farming crypto are using less energy than a normal family or are even much different than than the guy they are basing this on. And lets face it when they make more money they will add to their system and use more power. Regulate it fine but what your saying I find hard to believe. It’s hard on the system. Everyone knows this. Figure out a way to make it allowable somewhere in the city and have a way to make sure the energy consumption is accommodated. In a residential area is not it. Wait till they grow and need large fans. Neighbors will love this. Then all of the sudden it will be why hasn’t the city done anything about this. How on earth is this allowed in a residential area? We live here. That’s all you will hear.

      1. Once again, I’m hearing a series of “what if” objections by people who are not familiar with mining or know what it entails. There are currently existing laws that deal with all of these objections. Noise ordinances exist. Building codes exist. Zoning codes exist. We have laws that cover these potential situations that I must repeat again, ARE NOT A CURRENT PROBLEM.

  5. Please city council don’t consider this. Enough is Enough. Do the right thing. It’s not wanted or needed. Learn to say NO.

  6. The area around Rockdale, Thorndale, and Taylor is growing with Bitcoin and similar cryptocurrency ‘mining’ facilities. An NHK (Japanese news) report from last year showed one such facility and the reporter related that the facility used as much electrical energy per hour as would 20,000 households in the same time period. Currently, I believe several of those towns are trying to attract more and more ‘mining’ operations. Certainly, for those operations, there will no doubt be an unlimited and consistent supply of energy, since a world traded currency cannot/will not be turned off with a switch. However, for the poor householders and other business consumers, rolling blackouts and power shutdowns might well happen if a weather event were to occur in the heat of summer or the dead of winter. I wonder about the residents of Washington County–would we trade everyone’s house being turned off while a Bitcoin mining operation continued to have power?

    1. Doesn’t the city own the electrical service and thereby profit from additional usage? And would not that additional profit serve to reduce the taxes on all of us? The only real (and weak) objection I see is the possibly insufficient deposit. Just increase the deposit and problem solved. Stay out of the way of a budding entrepreneur.

    1. It all is a bit dodgey to begin with, but if they are paying their bills for the electricity and internet bandwidth, then why is this an issue???
      Maybe the City Council could focus on other items that have more importance to the majority, and stop wasting time.

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