The governor of New York state, Kathy Hochul, has actually been prompted by a group of local business to reject organization authorizations to bitcoin miners. The letter specifically asks for the “denial of permits for the Greenidge Generating Station and the Fortistar North Tonawanda Facility.” The letter likewise requires the New York federal government to evaluate “proof-of-work” (PoW) digital currency mining in the state as the local businesses think PoW mining “drastically undermines New York’s climate goals.”
Local Businesses From New York Urge Governor Kathy Hochul to Impose a Statewide Bitcoin Mining Moratorium
Climate change is a big deal to a number of local businesses in the state of New York as a large coalition of companies has urged governor Kathy Hochul to deny bitcoin mining permits. The union’s letter is backed by businesses and companies such as Seatuck Environmental Association, Ravines Wine Cellars, Peconic Baykeeper, Nassau Hiking & Outdoor Club, NYPAN Environmental Committee, Mothers Out Front New York, and New Yorkers for Clean Power.
“We, the undersigned organizations, businesses, and labor groups, write today to urge your administration to issue a statewide moratorium on proof-of-work (PoW) cryptocurrency mining until a thorough statewide Generic Environmental Impact Statement (GEIS) is conducted, and to deny the permits for the Greenidge Generating Station and the Fortistar North Tonawanda Facility,” the letter states. The letter, published to earthjustice.org on October 13, adds:
“These ‘mining’ activities, particularly proof-of-work cryptocurrency mining use enormous amounts of energy to power the computers needed to conduct business – should this activity expand in New York, it could drastically undermine New York’s climate goals established under the Climate Leadership and Community Protection Act.”
New York’s Bumpy Relationship With Bitcoin Mining
The state of New York (NY) is no stranger to such controversies over bitcoin mining as debate over the subject has raged on for a few years now. In 2018, a variety of counties in NY, like the Plattsburgh Common Council, passed new standards for miners that intended to control sound and fire security policies. Despite the stricter rules in specific areas, bitcoin miners have been flocking to NY over the last two years. Meanwhile, as miners went into the New York market, operations began getting grievances from local next-door neighbors and NY political leaders.
In December 2020, an environmental organization called Sierra Club, a committee aimed at preserving the Finger Lakes region, filed a lawsuit against the NY town of Torrey for allowing the Greenidge Generation power plant to expand its mining operations. Sierra Club asked the town of Torrey and the Torrey Planning Board to obstruct the building and construction with an injunction. Senator Kevin Parker (D) believes bitcoin miners should halt operations over climate change concerns as well.
In May 2021, senator Parker presented legislation to address these issues as he discussed that bitcoin mining “threatens not only New York’s climate goals, under the CLCPA, but also global energy policy, such as the Paris Agreement.”
Parker’s bill aimed to impose a moratorium on the operation of cryptocurrency mining centers until the NY government could complete an assessment of the environmental impact. If the moratorium was enforced, bitcoin mining operations that might show business does not “adversely affect the state greenhouse gas emission targets in the climate leadership and community protection act of 2019,” might run lawfully under NY law.
Letter Stresses ‘Climate Crisis in New York Is Here Now’
The recent letter to NY governor Kathy Hochul says that bitcoin mining facilities are threatening the state’s advances toward addressing climate change.
“In New York, data mining operations using warehouses full of computers have set up shop in upstate areas siphoning electricity from New York’s grid, ‘re-powering’ defunct fossil-fueled power plants, thus seriously jeopardizing the state’s progress on and meeting mandates for reducing greenhouse gas (GHG) emissions,” the letter highlights.
The letter stresses that the group of local businesses want governor Hochul to act now. The letter concludes:
“As you have witnessed in your early weeks on the job, the climate crisis in New York is here now. New York City recently saw unprecedented flooding that led to the loss of lives – strong climate action is needed now more than ever. We urge you to lead the way and set a national precedent on the issue of proof-of-work cryptocurrency by issuing a statewide moratorium and denying the permits for Greenidge and Fortistar. Thank you for your time and consideration of our comments.”
