Judge rules Greenidge Generation LLC Can Continue Constructing Buildings That Will House Expansion to 32,500 Bitcoin Mining Machines
In Article 78 case, Judge rules that Greenidge Generation LLC can continue construction on new buildings that will house their expansion with drastic ramifications for the climate, environment, and local economy
YATES COUNTY, NY (04/08/2022) (readMedia)– Yesterday, in Yates County Supreme Court, Judge Daniel J. Doyle ruled against 33 petitioners including Seneca Lake Guardian in Sierra Club et al. v. Town of Torrey et al. Petitioners sued the Town of Torrey for failure to properly follow State Environmental Quality Review (SEQRA) requirements when the Town approved Greenidge Generation LLC’s application to build new buildings to house its expanded Bitcoin mining operation.
“Greenidge is being rewarded for pressing ahead with construction even in the face of our lawsuit. It’s a slap in the face to the $3 billion dollar agritourism industry and its 60,000 jobs, as well as the people of the Finger Lakes, all to make fake money in the middle of a real climate crisis. The ruling, which does not reject the merits of the case, combined with Governor Hochul’s repeated failure to make a decision on Greenidge’s air permits, is a greenlight to continue wreaking havoc on the environment. We will continue to push the Governor to put New Yorkers ahead of this Connecticut based private equity firm hell bent on climate-killing Bitcoin mining,” said Joseph Campbell, president of Seneca Lake Guardian.
On March 31 the DEC punted the deadline to renew or deny Greenidge Generation’s Title V Air Permit for a second time. After a previous two-month delay and more than a year of advocacy by residents, business owners, wine makers, environmental activists, and elected officials, the DEC announced that a decision will not be made until June 30, two days after the gubernatorial primary.
The DEC has already confirmed that Greenidge is a threat to New York’s energy goals as outlined in the CLCPA. In a story published last week in the Albany Times Union, the Department of Environmental Conservation cast doubts about continuing operations:
“Greenidge ‘has not demonstrated that the project is consistent with the attainment of statewide greenhouse gas emission limits established in the Climate Act.’ The agency said that Greenidge has not yet shown how the operation would not hinder the goals of reducing greenhouse gas emissions.”
And at a recent Environmental Conservation budget hearing when asked about the potential impact of the escalating cryptocurrency mining activity in upstate NY on the states energy grid, the NYS Energy Research and Development Authority (NYSERDA) President Doreen Harris stated, “There could be a very significant impact on NY load resulting from cryptocurrency mining depending on the penetration of the resource.”
Located on the shores of Seneca Lake, Greenidge is a once-mothballed power plant that was converted into a bitcoin mine by the private equity firm that owns it. The plant has brought only 48 new jobs to the region compared to the existing $3 billion agritourism economy, employing approximately 60,000 people, while poisoning the Finger Lakes’ natural resources. With over 17,000 Bitcoin machines and plans to expand to 32,500, Greenidge will emit over one million tons of CO2 each year, equivalent to that of 100,000 homes. Greenidge also sucks 139 million gallons of water each day from Seneca Lake and dumps it back in at 108 degrees, risking toxic algal blooms that make this water source for 100,000 people non-potable.
Bitcoin mining is a fast-growing issue. After China banned it, citing the environmental threats the practice poses to meeting emissions reduction goals, outside speculators are flocking to upstate New York and taking advantage of New York’s apparent inability to properly apply environmental regulations to the Bitcoin industry. New York now hosts 20% of the U.S.’s Bitcoin mining.
Greenidge is just the beginning, and advocates fear that its operations signal to even more outside speculators that New York’s closed and underutilized fossil fuel-burning plants are available to be bought up and re-open as gas guzzling Bitcoin mining cancers on communities. Advocates are urging Governor Hochul to put a statewide moratorium on proof-of-work cryptomining. New York hosts 20% of the U.S.’s Bitcoin mining to the detriment of small businesses, local economies, the environment, and the climate. After China banned cryptomining, citing the environmental threats the practice poses to meeting emissions reduction goals, outside speculators have flocked to upstate New York to take advantage of the nonexistent environmental regulations.
The Governor is well within her legal authority to act, according to a new white paper from Columbia Law School Sabin Center for Climate Change Law: A Pause on Proof-Of-Work: The New York State Executive Branch’s Authority to Enact a Moratorium on the Permitting of Consolidated Proof of Work Cryptocurrency Mining Facilities. The paper (summary of findings available here) draws on precedent established in 2010 when the executive branch signed the fracking moratorium. It finds the Governor has authority to stop new proof-of-work cryptomining operations by enacting a moratorium on the permitting of these facilities until a Generic Environmental Impact Statement (GEIS) to determine the full extent of the impacts of mining on communities is complete.
Background
Proof-of-work cryptocurrency mining (which Bitcoin uses) is an extremely energy-intensive process that requires thousands of machines whirring 24/7 to solve complex equations. The more machines that are running, the faster a coin is mined. Each one of these machines requires energy to run, plus more energy to run cooling technology. Globally, proof-of-work Bitcoin mining uses the same amount of energy each year as the entire country of Argentina. It produces 30,700 metric tons of e-waste each year, comparable to the yearly IT equipment waste of the Netherlands. If left unregulated, the industry will wreak irrevocable harm on the entire state of New York, making it impossible to reach New York’s crucial climate goals as outlined in the Climate Leadership and Community Protection Act (CLCPA). The CLCPA commits to an 85% reduction in greenhouse gases by 2050 and 100% zero-emission electricity by 2040.
These facilities are also major emitters of methane and toxic air pollutants including benzene, formaldehyde and polycyclic aromatic hydrocarbons (PAHs), which are precursors of ground level ozone pollution and known causes of asthma, heart attacks, strokes, reproductive damage and preterm birth.
Powering Bitcoin mining with renewables is not a viable solution, as renewables supply cannot possibly meet the extreme energy demands of Bitcoin mining in addition to daily necessities such as heating and cooling homes and running cars. Any renewable energy that supports Bitcoin mining is renewable energy that is being diverted from the public grid. And when crypto miners rely on the public grid, they stick everyday New Yorkers with the bill. A 2021 study estimates “the power demands of cryptocurrency mining operations in upstate New York push up annual electric bills by about $165 million for small businesses and $79 million for individuals.
Cryptomining is also at odds with the overwhelmingly popular amendment to the state constitution passed last year, which guarantees every New Yorker the right to clean air, clean water, and a healthful environment. Revitalizing old polluting power plants for private financial gain, with drastic consequences for our air, water and climate, all while causing huge amounts of noise pollution, is now unconstitutional – and ought to be treated as such.
Reform groups Common Cause/NY and NYPIRG have specifically criticized the crypto mining industry for exploiting public resources and straining the energy grid for private gain, and a group of federal lawmakers led by Senator Elizabeth Warren recently requested details from six major Bitcoin mining companies about their electricity usage and contributions to climate change. Earlier this month, President Biden issued an executive order requiring federal agencies study the legal, economic, and environmental impacts of cryptocurrencies, including Bitcoin mining. Even the Mayor of New York City, Eric Adams, an avid crypto booster has come out against mining, declaring at a February 9th joint session of the Legislature: “I support cryptocurrency, not crypto mining.”
More than 1,000 organizations, businesses, environmental activists, concerned residents, wine makers, elected officials, and more have taken action over the last year in opposition to crypto mining in New York State. A letter sent to Governor Hochul in October was signed by more than 650 individuals and groups. In letters to Governor Cuomo last year opposing Greenidge Generation’s expansion from an emergency peaker plant to a 24/7 Bitcoin mining operation, organizations, businesses, and Finger Lakes residents demanded Gov. Cuomo revoke Greenidge’s permits due to its massive greenhouse gas emissions, poisoning of the Finger Lakes, and noise pollution, with no economic benefit to the community. Greenidge Generation is still operating in Dresden, NY under grandfathered-in permits granted for use as a peaker plant, not 24/7 Bitcoin mining. Greenidge has applied for an air permit renewal and is awaiting a decision from the Department of Environmental Conservation. Similar fights have occurred in Plattsburgh and Niagara Falls, which resulted in local moratoriums.
Legislation (A7389B/S6486C) to place a 3 year moratorium on Bitcoin mining in New York State is picking up steam in the Assembly with 41 co-sponsors including 15 senior-ranking Assembly committee chairs as of February 24.
About Seneca Lake Guardian
Seneca Lake Guardian is a New York State Not-for-Profit Corporation with 501(c)(3) and is dedicated to preserving and protecting the health of the Finger Lakes, its residents and visitors, its rural community character, and its agricultural and tourist related businesses through public education, citizen participation, engagement with decision makers, and networking with like-minded organizations.