Appellate Court Rules Residents Can Fight Crypto Mine Over Climate Concerns
A New York appellate court has granted environmental groups the green light to challenge the state-approved transformation of an upstate gas-fired power plant into a cryptocurrency mining operation. This decision comes after the Sierra Club and the Clean Air Coalition of Western New York filed a lawsuit against the New York Public Service Commission’s approval of the project, arguing it would significantly increase pollution in nearby neighborhoods and contravene New York’s Climate Leadership and Community Protection Act (CLCPA) of 2019. The act aims for zero-emissions electricity by 2040, among other environmental goals, according to Courthousenews.
The initial ruling by a state judge dismissed the lawsuit on the grounds of lack of standing, but the appellate court’s reversal is based on the proximity of the plaintiffs to the proposed crypto mining site. This proximity, the court ruled, gives them the right to challenge the project under the CLCPA due to the direct impact it could have on them, differentiating their concerns from more generalized environmental worries.
The power plant, located in North Tonawanda between Buffalo and Niagara Falls, typically operates only during high-demand periods each year but could run continuously as a crypto mine, potentially increasing its greenhouse gas emissions by up to 3,500%. The New York Public Service Commission had previously allowed Digihost, a Canadian crypto company, to take over the plant despite these environmental concerns, stating that these issues were beyond the scope of their review process.
This appellate decision does not halt the project but allows the plaintiffs to argue their case in court regarding potential violations of the climate act. Earthjustice, representing the plaintiffs, hailed the decision as a victory for local communities’ rights to challenge decisions affecting their health, safety, and quality of life. The case now moves forward, potentially setting a precedent for how environmental laws are applied to the burgeoning cryptocurrency mining industry.
