- New York PSC received a lawsuit from environmental activists in violation of the CLCPA bill signed in 2019.
- Digihost resolves to convert the Fortistar power plant into renewable natural gas.
- The CLCPA highlights the objectives it wishes to achieve with the new bill passed.
An environmental group recently filed a lawsuit against New York Public Service Commission (PSC) for approving the conversion of a crypto-mining facility in place of the Fortistar power plant.
Citing the climate law made in 2019, the environmental activists stated that the New York state agency had violated that law by approving the crypto-mining company in North Tonawanda, a town near Niagara Falls.
According to The Guardian, Public Service Commission (PSC) supervises and regulates public utilities. In September 2022, the PSC authorized the takeover of the Fortistar power plant by Canadian crypto-mining company Digihost.
Represented by Earthjustice, a non-profit organization, the Clean Air Coalition of Western New York and the Sierra Club expressed in the lawsuit that PSC’s approval of the crypto-mining facility violated the Climate Leadership and Community Protection Act (CLCPA) that was ratified in 2019.
The CLCPA bill highlighted ambitious climate change goals to be achieved by the state, and these goals include; 70% renewable electricity by 2030, 100% zero-emission electricity by 2040, 85% reduction in statewide GHG emissions from 1990 levels by 2050, 40% reduction in statewide GHG emissions from 1990 levels by 2030, and net zero emissions statewide by 2050.
The lawsuit claimed that the power plant was only used whenever there was a high need for electricity, such as unfavorable weather circumstances. It was operated 74 days a year, whereas the crypto mining facility would be performed 24/7, generating about 3000% more greenhouse emissions. It was setting back the climate change activists’ goal for the state. The court filing was a test to the Supreme Court to examine which the court valued more, crypto mining or climate change.
The environmental activists clamored for a thorough and concise evaluation of environmental reviews when considering decisions or approvals, so it does not make decisions to alter the climate objectives initially created. However, the Public Service Commission refused to evaluate the CLCPA and its requirements when reviewing the approval procedures.
Since the law requires all agencies to consider greenhouse gas emissions and their effects on disadvantaged communities, the activists also argued that the PSC needed to pay more attention to how it would affect those living around the facility in approving the crypto-mining facility.
“If such an action would threaten the CLCPA’s greenhouse gas reduction mandates, it can not proceed without a justification,” the court filing reads.
New York local businesses urge Governor to reject crypto-mining permits
In 2021, a group of local businesses urged Governor Kathy Hochul, through a letter, to reject permits looking to transform the state’s old “fossil-fuel power plants” into crypto-mining facilities.
“New York must halt this move to turn old fossil-fuel powered plants into crypto mining centers until a full environmental assessment is conducted on the impact that these operations will have no greenhouse gas emissions, as well as the state’s air and water quality,” the letter reads.
Digihost’s solution to the activists’ complaints
Digihost, a Canadian crypto-mining firm that was set to acquire and transform the Fortistar power plant into a crypto-mining facility, responded to the complaints made by the environmental activist, saying it would instead renovate the power plant into a renewable natural gas, claiming that it would only use all hydrogen by the end of 2023.
The company also mentioned that before the New York Public Service Commission approved it, it had been earlier approved by the North Tonawanda planning commission, which had also carried out its environmental review.
Digihost announces plan to move mining rigs.
In August 2022, Digihost announced that it was planning to move part of its mining rigs from New York to Alabama. Sharing its goal of achieving a hashing capacity of 55 MW in Alabama by the Q2 (second quarter) of 2023, the United States-based crypto company mentioned its plan to reduce energy costs by moving part of its rig from New York to Alabama.
2022 was a rough year for almost everyone in the crypto industry. The bear market ceased the growth of the crypto economy, leaving many companies to downsize their operations. Digihost revealed that it sold the BTC it produced earlier in July, and by the end of the month, it had only 220 BTC left.
Conclusion
The Clean Air Coalition of Western New York and the Sierra Club, represented by Earthjustice, have sued the New York Public Service Commission, arguing that it has violated the Climate Leadership and Community Protection Act (CLCPA) by approving the conversion of the Fortistar power plant into a crypto-mining facility.
