Advocates @ Cornell ILR Call on Gov to Declare Moratorium on Climate-Killing Bitcoin Mining

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NEW YORK, NY (02/10/2022) (readMedia)-- On Thursday, outside the Cornell ILR School where Governor Hochul spoke about "Rebuilding New York" – her vision for the state's infrastructure – advocates rallied and called for her to impose a moratorium on unchecked, climate-killing Bitcoin mining. They also urged the Governor to direct the Department of Environmental Conservation to deny the air permit renewal for Greenidge Generation, a 24/7 bitcoin mine in the Finger Lakes currently operating under grandfathered-in air permits. The rally came on the heels of comments Mayor Adams' made yesterday opposing crypto mining, during a Joint Legislative Hearing on the Executive Budget.

After China banned crypto-mining, citing the environmental threats the practice poses to meeting emissions reduction goals, outside speculators are flocking to upstate New York and taking advantage of the nonexistent environmental regulations. In this race to the bottom, New York State now hosts 20% of the country's rapidly-growing crypto mining industry to the detriment of small businesses, local economies, the environment, and the climate. By repowering dirty fracked gas plants like Greenidge, Bitcoin mining threatens to make it impossible for New York State to meet the critical zero-emissions climate goals outlined in the Climate Leadership and Community Protection Act.

Watch the event here.

Support for a moratorium is gaining growing momentum as reform groups Common Cause/NY and NYPIRG have criticized the crypto mining industry for exploiting public resources and straining the energy grid for private gain, and gubernatorial candidate Jumaane Williams joined Finger Lakes business owners and residents last week to draw attention to the environmental and economic risks of mining. In addition, a group of federal lawmakers led by Senator Elizabeth Warren recently requested details from six major Bitcoin miners about their electricity usage and contributions to climate change.

"The Greenidge power plant in the Finger Lakes poses a critical test of Governor Hochul's climate leadership," said Eric Weltman, a New York-based senior organizer with Food & Water Watch. "The science is clear: We should not be burning fracked gas for anything, let alone Bitcoin mining. The Hochul administration must reject Greenidge's air permit application and shut down this dirty, dangerous, and unnecessary power plant."

"Bitcoin is a fake currency that experts have called a ponzi scheme, but that hasn't kept wealthy tech-bros from invading New York State to destroy our natural resources, kneecap local businesses, and keep us from meeting the crucial climate goals outlined by the CLCPA. Repowering or expanding coal and gas plants to make fake money in the middle of a climate crisis is literally insane. We need Governor Hochul to impose a moratorium on proof-of-work crypto mining. Like fracking, which New York state banned, crypto mining poses a serious threat to the health and safety of all New Yorkers, " said Joseph Campbell, president of Seneca Lake Guardian.

The Bitcoin mining industry's CO2 emissions aren't just harmful for the climate - this industry's air pollution includes the same type of particulate matter that the EPA just found responsible for the preventable deaths of 143,000 elderly people. Powering Bitcoin mining with renewables is not a viable solution, as renewables supply cannot possibly meet the extreme energy demands of Bitcoin mining in addition to daily necessities such as heating and cooling homes and running cars. Any renewable energy that supports Bitcoin mining is renewable energy that is being diverted from the public grid.

And when crypto miners rely on the public grid, they stick everyday New Yorkers with the bill. A 2021 study estimates "the power demands of cryptocurrency mining operations in upstate New York push up annual electric bills by about $165 million for small businesses and $79 million for individuals.

Background

Located on the shores of Seneca Lake, Greenidge Generation is a once-mothballed power plant that has been converted into a bitcoin mine by the private equity firm that owns it. Greenidge operates over 17,000 Bitcoin mining machines and is expanding to over 32,500, pumping dirty fossil fuels into the air 24/7. This will lead to over one million tons of CO2 emissions each year, equal to that of 100,000 homes. Greenidge also sucks 139 million gallons of water each day from Seneca Lake and dumps it back in at 108 degrees, risking toxic algal blooms that make this water source for 100,000 people non-potable. The plant brings very few new jobs to the region while poisoning the air and natural resources the local $3 billion agritourism economy relies on.

The DEC's decision on Greenidge's air permit renewal was expected by January 31, but it was pushed back two months, allowing it to continue harming the community and expanding its operations. Greenidge is the test case for the rapidly growing Bitcoin mining industry in New York.

More than 1,000 organizations, businesses, environmental activists, concerned residents, wine makers, elected officials, and more have taken action over the last year in opposition to crypto mining in New York State. In letters to Governor Cuomo last year opposing Greenidge Generation's expansion from an emergency peaker plant to a 24/7 Bitcoin mining operation, organizations, businesses, and Finger Lakes residents demanded Gov. Cuomo revoke Greenidge's permits due to its massive greenhouse gas emissions, poisoning of the Finger Lakes, and noise pollution, with no economic benefit to the community. Greenidge Generation is still operating in Dresden, NY under grandfathered-in permits granted for use as a peaker plant, not 24/7 Bitcoin mining. Greenidge has applied for an air permit renewal and is awaiting a decision from the Department of Environmental Conservation. Similar fights have occurred in Plattsburgh and Niagara Falls, which resulted in local moratoriums.

Seneca Lake Guardian is urging Governor Hochul to place a moratorium on proof-of-work crypto mining with dozens of environmental organizations in the Stop Proof-of-Work Crypto Coalition including Earthjustice, NYPIRG, Sierra Club, and Food and Water Watch. There is a bill before both houses of the State Legislature that would place a statewide moratorium on proof-of-work crypto mining: S6486C and A7389B.

Proof-of-work cryptocurrency is an extremely energy-intensive process that requires thousands of machines whirring 24/7 to solve complex equations. The more machines that are running, the faster a coin is mined. Each one of these machines requires energy to run, plus more energy to run cooling technology. Globally, proof-of-work Bitcoin mining uses the same amount of energy each day as the entire country of Argentina. It produces 30,700 metric tons of e-waste each year, comparable to the yearly IT equipment waste of the Netherlands.

There are 49 decommissioned or underutilized power plants across the state, phasing out as New York reduces its greenhouse gas emissions, that could again guzzle fossil fuels - this time for their own private interests without any public benefit. If left unregulated, the industry will wreak irrevocable harm on the entire state of New York, making it impossible to reach New York's crucial climate goals as outlined in the Climate Leadership and Community Protection Act (CLCPA). The CLCPA commits to an 85% reduction in greenhouse gases by 2050 and 100% zero-emission electricity by 2040.

Crypto mining is also at odds with the overwhelmingly popular amendment to the state constitution passed last year, which guarantees every New Yorker the right to clean air, clean water, and a healthful environment. Revitalizing old polluting power plants for private financial gain, with drastic consequences for our air, water and climate, all while causing huge amounts of noise pollution, is now unconstitutional - and ought to be treated as such.