Senator Gillibrand Urges EPA Oversight of Greenidge’s Title V Permit Renewal Application

Powerful Letter Calls on the Environmental Protection Agency to Look Into Harmful Environmental Impacts of Greenidge Generation Cryptocurrency Mining Plant

ALBANY, NY — Senator Gillibrand issued a strongly worded letter to the EPA today, urging them to exert oversight on the Greenidge facility’s Title V air permit renewal. The letter stresses that the facility’s purpose has changed significantly from that of a peaker plant, supplying power to the public in times of high demand, to a private Bitcoin operation, using more than the originally anticipated amount of energy, and subsequently harming the sustainable economy of the Finger Lakes region. The permit is currently under review by New York’s Department of Environmental Conservation (DEC), which also released a statement yesterday that Greenidge had not shown compliance with the state’s ambitious climate law, the Climate Leadership and Community Protection Act (CLCPA). Gillibrand is asking the EPA to also become involved under the Federal Clean Air Act. 

Following the release of Senator Gillibrand’s letter, Seneca Lake Guardian, a regional grassroots environmental organization, issued the following statement:

“We applaud Senator Gillibrand’s leadership in raising this important issue and its urgency to the EPA. The increased air emissions from this plant will harm our air, water, and vibrant agritourism economy if left unchecked. Moreover, as the DEC itself pointed out, the Greenidge facility has not demonstrated compliance with our state’s bold climate initiative. We echo Senator Gillibrand’s call on the EPA to take action under the Clean Air Act and use its oversight power in the review of Greenidge Generation’s permit. We hope that other political leaders will follow suit and take a stand on this climate busting industry that is moving rapidly into New York and beyond.”

On September 8th, DEC Commissioner Basil Seggos tweeted that as of now, Greenidge’s Title V air permit is inconsistent with the CLCPA. There is a public comment period deadline of October 22nd with a public hearing on October 13th. Those interested in talking points for commenting can contact Seneca Lake Guardian at www.senecalakeguardian.org and sign up to receive email updates. The full DEC statement can be viewed here: https://www.dec.ny.gov/permits/123728.html

Renowned environmental law firm Earthjustice identified 30 dormant or underutilized power plants across the state, and certainly there are many more throughout the U.S., that could be transformed into greenhouse gas emitting cryptocurrency mining facilities in the midst of a climate crisis. Unless addressed, this industry will continue to undermine New York’s ambitious CLCPA goals to reduce greenhouse gases by 2030. It would also throw a wrench into President Biden’s climate initiative that he outlined this week. “We must regulate this growing industry before it’s too late. Our climate depends on it,” said Yvonne Taylor, Vice President and co-founder of Seneca Lake Guardian. 

“Bitcoin mining is one of the most significant climate change issues facing our state, which very few people know about.  Bitcoin mining operations at Greenidge are already releasing large amounts of carbon dioxide into the atmosphere, which is threatening our health and environment.  New York State cannot possibly meet its greenhouse gas reduction targets with the proliferation of bitcoin mining in the state. My former agency, the EPA, has a vital role to play on this issue. EPA should team up with state regulators and carefully review not only the Title V air toxics permit, but all air and water permits needed by Greenidge.  The tragic impacts of Hurricane Ida reminds us that we need to slash carbon emissions and not allow new sources, like bitcoin mining, to make the climate crisis even worse,” said Judith Enck, former Administrator, EPA  Region 2.

“Senator Gillibrand is right to sound the alarm bell on Greenidge. This facility poses grave risks to our water, our air, and our livable climate. It’s time to shut this dirty power plant down and get serious about bringing the era of fossil fuels to an end,” said Alex Beauchamp at Food and Water Watch

This letter breaks a day before shareholders at Support.com vote on a merger with Greenidge which would give the Bitcoin operation a large influx of funds and make Greenidge (GREE) publicly traded on NASDAQ. 

Background on Greenidge Generation and the current situation

Greenidge Generation reopened their facility in 2017 in Dresden, NY and by March of 2020, the plant was using over 14 megawatts of power, enough to power 9,000 homes, to mine bitcoin every day. The plant’s greenhouse gas emissions increased almost tenfold from 2019 to 2020, emitting over 220,000 metric tons of carbon dioxide. Greenidge’s current permit allows it to emit 641,878 metric tons annually and it has applied for the same permitting limits in their renewal application. However, New York’s Climate Leadership and Community Protection Act requires the state to begin including in its CO2-e count, the emissions created by the “upstream” sources of the fuel used by in-state electricity generating plants. For Greenidge, that means counting the methane and other GHG gases (CO2-e) emitted by the fracked natural gas wells and pipelines it relies on for its fuel supply.

Greenidge estimates that its “upstream” CO2-e for each year between 2022 and 2026 at 476,820 tons (432,582 metric tons), meaning Greenidge’s total onsite and upstreams CO2-e emissions would add up to 1.05 million tons per year from 2022 to 2026 (952,968 metric tons) — well above the CO2-e limit sought in the renewal permit.

Seneca Lake is fragile and at a tipping point. According to the Finger Lakes Institute, temperatures at the north end of Seneca Lake are rising every year. Because of its magnitude and depth, it takes 20 years for Seneca Lake to turn over. The Greenidge facility has been permitted to dump over 134 million gallons of hot water a day into the lake, as the energy it takes to run the plant has to be redirected. If this continues, it is estimated that it would take hundreds of years for the lake and its wildlife to recover. Not only is the hot water damaging the lake, but noise pollution remains a serious concern for both the lake and surrounding areas. 

Drinking water for over 100,000 people is also being compromised, causing expenses for municipalities to provide potable water to skyrocket. The $3 Billion annual revenue and 58,000 jobs in the Agricultural and Tourism industry, relying on the lake temperature, is threatened. People who have spent generations building their livelihoods that rely on the lake could have their legacies ripped out from under them. In a short amount of time, the Greenidge facility has prompted an ecological disaster that, if left untouched, will wreak irrevocable damage on the Finger Lakes region and all who inhabit it.