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Environmentalists sue state over cryptomining power plant near Buffalo that uses fracked gas

14 January 2023
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Environmentalists sue state over cryptomining power plant near Buffalo that uses fracked gas
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ALBANY  — The Earth Justice Environmental organization has filed suit against the state Public Service Commission over its September approval of the sale of a Buffalo-area power plant to a cryptomining firm.
 
They say the approval runs counter to the state’s Climate Leadership and Community Protection Act which aims to lower greenhouses gas emissions.
 
Environmentalists have been critical of cryptominers, who use large banks of computers to solve the math formulas used to run cryptocurrency exchanges. The computers used by these miners use enormous amounts of energy, at a time when activists are trying to close down fossil fuel powered plants.

Earthjustice, which is working with the Clean Air Coalition of Western New York and Sierra Club names the PSC as well as the sellers and buyers of the plant, Fortistar and Digihost respectively. The suit was filed in State Supreme Court in Albany County.

The lawsuit challenges the PSC’s approval of the sale and is the first legal action of its kind to demand that a state agency follow the legal obligations established by New York’s landmark climate law, according to the plaintiffs.

Fortistar operates a 55-megawatt gas-fired power plant in North Tonawanda, between the Erie Canal and the Niagara River. The plant uses gas that is extracted through hydrofracking, which isn’t allowed in New York but which takes place in other states including Pennsylvania and Ohio.

Over the last five years, Fortistar, Earth Justice says, has only run between 10 and 74 days per year, emitting relatively small amounts of carbon dioxide or CO2 greenhouses gases.vIt’s not unusual for some older power plants to operate as “peakers,” or facilities that are turned on only when there is peak demand for electricity, such as summer heat waves when air conditioning use spikes. 

But with the PSC’s approval, the new owners, Digihost will be able to operate 24/7 all year long, leading to much higher emissions, up to 3500 percent more, the plaintiffs allege.

“The PSC is failing in its role as a regulatory body to protect public health and to uphold the requirements of the Climate Leadership and Community Protection Act,” Chris Murawski, Executive Director of Clean Air Coalition of Western New York, said of the case.

Increased operations at Fortistar would also result in higher levels of local air pollutants that cause asthma, cancer, and maladies, the litigants say.

“Everything changed when New York State enacted its landmark climate law, which requires all its agencies to consider the effects of their decisions on greenhouse gas emissions and the plight of disadvantaged communities,” said Roger Downs, conservation director for the Sierra Club Atlantic Chapter.

“Allowing a failing gas fired power plant to be acquired and revived by an energy hungry cryptomine, without considering the environmental impacts, runs counter to the intent of the climate law,” he added.

Earth Justice v Psc Et Al by Karlin Rick on Scribd

PSC officials declined to comment, saying they don’t talk about ongoing litigation.

While the PSC approved sale of the plant, another agency, the state Department of Environmental Conservation in June denied approval of an air emissions permit for another cryptomine, the Greenidge Generation plant, which is in the Finger Lakes region. They also produce power that goes to the state’s energy grid.

Fortistar has applied for a renewal of its air permit, but the DEC has not yet deemed their application complete.

Additionally, on Nov. 22, Hochul signed a two-year moratorium on renewed permits for fossil-fueled power plants that produce their own energy to mine crypto. The law requires the DEC perform a full environmental impact assessment on the energy and environmental impacts of crypto mining operations.

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 The moratorium did not affect air permit applications that had been previously submitted.

[crypto-donation-box]

“New York’s landmark climate law means that agencies can’t ignore the climate and environmental justice consequences of their decisions. We’re calling on the court to hold agencies accountable and ensure that cryptocurrency miners don’t get a free pass” said Dror Ladin, Senior Attorney at Earthjustice.

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rkarlin@timesunion.com 518 454 5758 @RickKarlinTU

 

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