New York State Sued By Environmental Group For Approving Crypto Mining Facility

According to the Guardian, the New York Public Service Commission (PSC) was sued by environmental activists for approving the takeover of a cryptocurrency mining facility in the state.

The PSC, which oversees public utilities, authorized the conversion of the Fortistar North power plant into a crypto-mining farm in September 2022.

The facility, located in Tonawanda, a city less than 10 miles from Niagara Falls, will be taken over by Canadian mining company Digihost. Plaintiffs claim the approval violated New York’s 2019 climate law.

The Climate Leadership and Community Protection Act (CLCPA), which was passed in 2019, was allegedly broken by the PSC’s acceptance of the transfer, according to the Clean Air Coalition of Western New York and the Sierra Club, which were both represented by the nonprofit Earthjustice.

The CLCPA sets goals such as an 85 percent reduction in statewide emissions by 2050 and zero-emission electricity by 2040, among other goals. Activists argue that New York state must conduct environmental reviews when reviewing projects.

The Fortistar plant, according to Clean Air and the Sierra Club, was solely utilized as a “peaker” plant, running 10 to 74 days annually only when there was significant demand for energy, such as during the cold winters and hot summers. According to court documents, the facility would operate continuously as a crypto mining facility, increasing greenhouse gas emissions by up to 3,000%.

The groups contend that in order for the state to ultimately accomplish its climate goals, the CLCPA broadly mandates that environmental studies be done before approvals and judgments are made. The court complaint states that during the approval procedure, which got underway in April 2021, the PSC refused to examine the CLCPA and its criteria.

According to public papers, Digihost stated that it would convert the facility to renewable natural gas with the ultimate goal of using entirely hydrogen by the end of 2023 in response to environmental concerns raised to the PSC during the approval process by Clear Air and the Sierra Club. The North Tonawanda planning commission, which conducted its own environmental study, had approved the firm’s mining facility, the company also informed the panel.

A two-year embargo on new cryptocurrency mining businesses in the state utilizing fossil fuels was enacted by Governor Kathy Hochul in November. The factory was acquired by Digihost before the measure was passed into law; hence it is exempt from the ban.

Although detractors claim the number of employment created by crypto mining is tiny, proponents claim that it helps rural areas by bringing jobs and economic activity there.

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Harold

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