Greenidge fights New York State
Greenidge Generation, the operator of a controversial crypto mining facility and gas-fired power plant in the Finger Lakes, has taken legal action against New York State following the denial of its air emissions permit renewal. This denial, rooted in the 2019 Climate Leadership and Community Protection Act (CLCPA), threatens to shut down the plant as the permit is set to expire next month. State regulators argue that the facility’s greenhouse gas emissions are inconsistent with the state’s aggressive climate goals under the CLCPA, which aims to significantly reduce carbon emissions across various sectors. according to Timesunion.
Greenidge, however, is challenging the decision, asserting that the CLCPA does not grant the Department of Environmental Conservation (DEC) unlimited authority to close businesses by denying permit renewals. The lawsuit, filed in State Supreme Court in Yates County, argues that the law does not intend to give state agencies the power to arbitrarily decide which economic activities should be permitted based on climate policy.
The outcome of this legal battle could have far-reaching implications, as it may determine the extent of regulatory power under the CLCPA. Numerous New York businesses, particularly those requiring air emission permits, are closely watching the case. Environmentalists and climate activists, who have long opposed Greenidge’s operations, see this lawsuit as a critical test of the state’s commitment to enforcing its climate law.
Originally opened in 1937 as a coal-fired power plant, the Greenidge facility was later converted to natural gas and began operating as a crypto mining site in 2020. The plant’s use of natural gas, while cleaner than coal, has drawn criticism from environmental groups, who argue that its operation solely to mine cryptocurrency is unjustifiable in the face of the state’s climate crisis.
If Greenidge succeeds in court, it could set a precedent limiting the DEC’s ability to enforce the CLCPA through permit denials. This case also follows the DEC’s recent denial of a permit for the expansion of the Danskammer Energy gas plant, which led to the company withdrawing its application after losing in court. The Greenidge case is being closely monitored as a potential bellwether for future climate-related regulatory actions across the state.
