The New York Public Service Commission (PSC) was sued by environmental activists on January 13 for approving the acquisition of a cryptocurrency mining facility in the state.
According to According to The Guardian, the state’s Public Service Commission (PSC) is responsible for regulating public services and authorized in September 2022 the conversion of the Fortistar North power plant into a crypto mining site.
The facility is located in Tonawanda, a city less than ten miles from Niagara Falls, and Canadian crypto mining firm Digihost has taken it over.
The plaintiffs claim the approval violates New York’s 2019 climate law. The Climate Leadership and Community Protection Act (CLCPA) sets a goal of 85% statewide emissions reductions by 2050 and zero-emissions electricity by 2040, among other goals.
In the lawsuit, the Western New York Clean Air Coalition and the Sierra Club are represented by the non-profit organization Earthjustice, alleging that the Fortistar plant was only operated during periods of high electricity demand, such as extreme weather conditions. . However, as a crypto mining facility, the site would be running 24 hours a day, generating up to 3,000% more greenhouse gas emissions.
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Activists argue that New York state should conduct environmental reviews when reviewing projects.
In October 2021, a letter from a group of local businesses asked the state to deny the conversion of the power plant to a crypto mining facility, claiming that:
“Proof-of-work cryptocurrency mining uses enormous amounts of energy to power the computers needed to conduct business; if this activity were to expand in New York, it could drastically undermine New York’s climate goals set under the Climate Leadership Act and Community Protection”.
According to public documents, Digihost planned to convert the facility to renewable natural gas to reduce its environmental impact. The company also noted that the mine site has been approved by the North Tonawanda planning commission, which conducts environmental reviews before making decisions.
In August, Digihost also revealed plans to move part of its mining rigs from New York to Alabama in an effort to reduce energy costs, Cointelegraph reported.
Digihost did not immediately respond to Cointelegraph’s request for comment.
