Advocates Demand Sen Gillibrand Put NYers Ahead of Polluting, Predatory Crypto

DRESDEN, NY (05/11/2023) (readMedia)-- As Senator Gillibrand ramps up her re-election efforts, environmental and economic justice advocates called on her to prioritize real New Yorkers over the wealthy, polluting, and predatory crypto industry. The ills of cryptomining were recently exposed in a front page New York Times story, going in-depth into the massive, negative impact of the industry on the climate and local communities. The 34 Biggest cryptocurrency mining operations in the U.S. use as much power as 3 million homes while creating few jobs, but increasing energy bills for many local communities across the country.

Watch the presser here.

"It's been over a year since Senator Gillibrand committed live on WNYC to visit the Finger Lakes and meet with those of us whose health and livelihoods have been threatened by cryptomining at Greenidge Generation. Instead she did the opposite and went all-in on crypto," said Yvonne Taylor, Founder of the National Coalition Against Cryptomining and Vice President of Seneca Lake Guardian. "New Yorkers made our voices heard loud and clear: Bitcoin mining is a threat to our nation-leading climate law and environment. The NYS legislature, Governor Hochul, and the DEC listened and responded. Senator Gillibrand is supposed to be our champion for upstate NY, but right now she's out of step with her own state and even the White House."

On April 27, 2022, Senator Gillibrand committed live on WNYC to visit the Finger Lakes and meet with the residents and business owners negatively affected by Greenidge Generation's Bitcoin mining operation. Neglecting to follow through on that comment, in the year since, she:

• Introduced a bill that had crypto industry groups cheering
• Seemingly dropped her effort to make the Finger Lakes a National Heritage Area.
• Encouraged Americans to invest in crypto for retirement savings
• Hired former general counsel for crypto platform Coinbase as her Chief Counsel for Finance
• Accepted at least $150,000 in donations from crypto CEOs, including Sam Bankman-Fried (which she later donated elsewhere) and the Winklevoss twins

These actions are entirely out-of-step with New York, where the NYS Legislature passed a nation-leading cryptomining moratorium and the DEC denied Greenidge Generation's air permit renewal. Unfortunately, Greenidge Generation is still operating and harming the climate, environment, and local agritourism economy as it appeals the DEC's decision on the air permit. And another company has started burning fracked gas in order to mine Bitcoin: Digihost, in the Fortistar power plant in North Tonawanda.

"Cryptomining is harming North Tonawanda and other cities in many ways -- high noise levels, increased emissions, electronic waste, air and water pollution. Increased transparency across the crypto industry is needed because without a thorough assessment about the impacts of this unregulated industry, communities like ours will continue to be taken advantage of," said Deborah Gondek, resident of North Tonawanda. "We hope Senator Gillibrand will come visit North Tonawanda, hear our concerns, and support our fight against Digihost."

New York may also become the first state to protect investors and consumers by tightening regulations on the cryptocurrency industry. New York Attorney General Letitia James' recently introduced nation-leading legislation to do just that. The crypto industry is rampant with fraud, and has been criticized for targeting and misleading people of color and low-income communities who have been traditionally excluded from wealth.

"Millions of Americans lost their savings after being misled by the Crypto industry about its safety and value. Instead of protecting New Yorkers and Americans that were targeted and swindled by celebrity-filled crypto commercials, Senator Gillibrand has decided to be a spokesperson for the controversial industry," said Charles Khan, Organizing Director at the Strong Economy For All Coalition. "Her recently announced bid for re-election seems more like a job application as a crypto lobbyist. New Yorkers need a Senator that is dedicated and ready to fight for the needs of the many, not just their donors."

At the presser, advocates called on Senator Gillibrand to get smart about climate-killing, predatory crypto: that means following through on her commitment to visit the Finger Lakes and make a trip to WNY to meet with communities impacted by Digihost. They also called on her to sign onto Senator Markey's Crypto-Asset Environmental Transparency Act, support the Biden Administration's efforts to put a 30% tax on cryptominers' electricity, and support NY AG James' proposed nation-leading regulations on crypto. Finally, they asked that she pledge not to raise money from the crypto industry for her campaign.

"The Finger Lakes is a national treasure of natural beauty, history, and world class wine. Bitcoin mining at a massive scale at one and potentially more power plants is a direct threat to the bright future of our region, which is within a day's drive of 65 million people," said Michael Warren Thomas, Radio Host - the Voice of the Finger Lakes.

"It is understandable that every mayor and economic development specialist in Rural America harbors the same hope. How can we take our local resources and use them to create sustainable jobs? In New York State, that resource is inexpensive and sustainable electricity, but there is only so much Niagara River power to go around, and this industry uses valuable electricity to generate few jobs. We should be left to decide what is best for New York State. Bitcoin mining does not even make that list, despite the slick presentations of venture capitalists to small communities like mine across New York State," said Colin Read, Economist and former Mayor of Plattsburgh, NY.

BACKGROUND

New York is the first state to regulate cryptomining, with the historic cryptocurrency mining moratorium that passed in November 2022 and implemented a two-year pause on new and renewed air permits for fossil-fueled power plants that mine cryptocurrency. But this does not apply to Greenidge Generation, which applied for its air permit before the law took effect.

But before the moratorium passed, on June 30, 2022, after more than a year of advocacy by residents, business owners, wine makers, environmental activists, and elected officials, the New York State Department of Environmental Conservation (DEC) denied Greenidge Generation a renewal of its Title V Air Permit. Greenidge has been operating as a 24/7 proof-of-work cryptocurrency mining facility for Bitcoin under grandfathered in permits for other usage.

Proof-of-work cryptocurrency mining is an extremely energy intensive process that threatens the ability of governments across the globe to reduce our dependence on climate-warming fossil fuels. Mining 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 for cooling. According to a new Guidebook from Earthjustice and the Sierra Club, from July 2021-22 Bitcoin mining in the U.S. alone consumed as much electricity as four states combined, emitting as much as 6 million cars annually. The White House's Office of Science and Technology Policy recently put out a groundbreaking report that confirms proof-of-work cryptomining is incompatible with federal and local emissions reductions goals, and it cannot continue unabated.

Cryptocurrency mining facilities are major emitters of air pollutants. And when cryptocurrency miners rely on the public grid, they can stick everyday people 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." 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.

At an Environmental Conservation budget hearing when asked about the potential impact of the escalating cryptocurrency mining activity in upstate NY on the states energy grid, the NYS Energy Research and Development Authority (NYSERDA) President Doreen Harris stated, "There could be a very significant impact on NY load resulting from cryptocurrency mining depending on the penetration of the resource."

Cryptomining 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.

About Seneca Lake Guardian

Seneca Lake Guardian is a New York State Not-for-Profit Corporation with 501(c)(3) and is dedicated to preserving and protecting the health of the Finger Lakes, its residents and visitors, its rural community character, and its agricultural and tourist related businesses through public education, citizen participation, engagement with decision makers, and networking with like-minded organizations.