Communities Hit by Cryptomining Across the Country Demand Federal + Local Regs

DRESDEN, NY (05/10/2022) (readMedia)-- Residents and advocates from communities across the country threatened by climate-killing cryptomining joined together publicly for the first time this morning to demand local and federal regulation for this growing and dangerous industry. Representatives from New York, West Virginia, South Carolina, Pennsylvania, Georgia, and Kentucky shared stories about how cryptomining is wreaking havoc on their communities. Yesterday, these groups and others from across the country submitted comments to the Biden administration about the harm cryptomining is causing to their communities.

Watch the press conference here.

"In the Finger Lakes and across New York, outside speculators are invading our communities to destroy our natural resources, kneecap local businesses, and keep us from meeting crucial climate goals, just to make a few people very, very rich. While we wait for Governor Hochul to enact sane energy policy and put a moratorium on climate-killing cryptomining, the federal government must step in and regulate this dangerous and growing industry. Repowering or expanding coal and gas plants to make fake money in the middle of a climate crisis is literally insane," said Yvonne Taylor, Vice President of Seneca Lake Guardian.

"Blockstream is using over 10 times the energy used by the entire city of Adel while it disturbs the peace of residents in an environmental justice community 24 hours per day, seven days per week, and 365 days per year," said Dr. Treva Gear, chair and founder of the Concerned Citizens of Cook County (Adel, Georgia).

"Bitcoin miners are eager to take advantage of subsidies and lax regulation in Pennsylvania. Power plants burning highly polluting waste coal have been turned into mining operations, portable generators and mining hardware have shown up unannounced at fracked-gas well sites, and even nuclear power plants are installing miners. Not only are taxpayers and ratepayers paying the price, we all pay the price of increased pollution," said Rob Altenburg, Senior Director for Energy and Climate at Citizens for Pennsylvania's Future.

In its recent report, the Intergovernmental Panel on Climate Change (IPCC) warned that global warming will reach dangerous levels if we don't drastically reduce our dependence on fossil fuels much faster than we are. But after China banned proof-of-work cryptomining (the process Bitcoin uses), citing the environmental threats the practice poses to meeting emissions reduction goals, speculators are flocking to the U.S. to resurrect mothballed fossil fuel power plants as energy-intensive Bitcoin mines. With no oversight or regulations, the U.S. has become the top destination for Bitcoin miners. While these facilities comprised of automated machines create few new jobs, they threaten the climate in addition to small businesses, local economies, and natural resources.

Proof-of-work cryptocurrency mining 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, Bitcoin mining consumes more energy each year than the entire country of Argentina. In the U.S. alone, Bitcoin mining produces an estimated 40 billion pounds of carbon emissions each year. It also produces 30,700 metric tons of e-waste each year globally, comparable to the yearly IT equipment waste of the Netherlands. Bitcoin mining facilities are major emitters of methane and toxic air pollutants including benzene, formaldehyde and polycyclic aromatic hydrocarbons (PAHs), which are precursors of ground level ozone pollution and known causes of asthma, heart attacks, strokes, reproductive damage and preterm birth.

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 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.

"Proof of Work industry generates one to two million dollars of revenue per hour but drains our pocketbooks much more. We all pay through their heavily subsidized electricity rates that also keeps us dependent on environmentally costly fossil-fueled peaker plants. Yet, few benefit from mining. Even the largest mining farms create fewer jobs than a typical McDonalds restaurant. In Plattsburgh, a local manufacturer uses half the power of our largest Bitcoin farm, but has 50 to 100 times more employees," said Colin Read, Money and Banking and Sustainability professor at SUNY Plattsburgh, and former mayor of Plattsburgh, NY when it was the first community in the country to impose a moratorium on Bitcoin mining to combat noise, heat, and higher electricity costs.

"I'm one of many volunteers who serve on Climate Smart Community Task Forces and we're fed up with energy-intensive bitcoin operations spewing GHG emissions that cancel out all the hard work and actions we've taken to reduce emissions in our respective towns and cities," said Deborah Gondek, North Tonawanda, NY resident & member of North Tonawanda's Climate Smart Task Force.

"Without educating ourselves, business owners, community leaders, and elected officials on these issues, we are allowing the cryptocurrency industry to put "mines" over the matters of our communities," said Michael K. Coleman, Energy Advocate, Upstate Forever, South Carolina.

Background

Seneca Lake Guardian, the Finger Lakes-based group coordinating this new national coalition, is leading the fight against proof-of-work cryptomining in New York. Greenidge Generation, a power plant-turned-Bitcoin mine operating under grandfathered-in permits by the private equity firm that owns it, is New York's test case for the issue. Its air permits are currently up for renewal by the NY Department of Environmental Conservation (DEC), and advocates warn that a renewal of its air permits would signal to more outside speculators that New York's fossil fuel power plants, closed as we work toward meeting greenhouse gas emissions reductions goals, are available to be bought up and re-opened as gas guzzling Bitcoin mining cancers on communities.

Located on the shores of Seneca Lake, Greenidge has brought only 48 new jobs to the region compared to the existing $3 billion agritourism economy, employing approximately 60,000 people, while poisoning the Finger Lakes' natural resources. 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 1 million tons of CO2 emissions each year, equal to that of 100,000 homes. Greenidge also sucks up to 139 million gallons of water each day from Seneca Lake and dumps it back in at up to 108 degrees. Gregory Boyer, director of SUNY's Great Lakes Research Consortium, has warned about Greenidge's potential to cause harmful algal blooms, which can be dangerous or fatal to humans and other animals in Seneca Lake, and make this water source for 100,000 people non-potable.

The DEC has consistently cited the need to sift through 4000 public comments as part of the reason for the now five month delay in making a decision. The new deadline is June 30th, two days after the gubernatorial primary. Researchers from Cornell University FOILed for the comments, and found that 98% of the comments are opposed to Greenidge.

The DEC has already confirmed that Greenidge is a threat to New York's energy goals as outlined in the state's Climate Leadership and Community Protection Act. In a recent story, "DEC Commissioner Basil Seggos told WSKG that he continues to have "significant concerns" whether Greenidge Generation's operations will be compliant with the state's statutory climate goals under the Climate Leadership and Community Protection Act, or CLCPA." Seggos later said, "Our belief still stands that this is a facility that's going to have an uphill battle complying with the law."

And at a recent 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."

In addition to fighting against Greenidge's air permit renewal, advocates, scientists, electeds, and more are urging Governor Hochul to put a moratorium on proof-of-work cryptomining.

The Governor is well within her legal authority to act, according to a new white paper from Columbia Law School Sabin Center for Climate Change Law: A Pause on Proof-Of-Work: The New York State Executive Branch's Authority to Enact a Moratorium on the Permitting of Consolidated Proof of Work Cryptocurrency Mining Facilities. The paper (summary of findings available here) draws on precedent established in 2010 when the executive branch signed the fracking moratorium. It finds the Governor has authority to stop new proof-of-work cryptomining operations by enacting a moratorium on the permitting of these facilities until a Generic Environmental Impact Statement (GEIS) to determine the full extent of the impacts of mining on communities is complete.

Cryptomining is at odds with the overwhelmingly popular amendment to the New York 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.

Reform groups Common Cause/NY and NYPIRG have specifically criticized the crypto mining industry for exploiting public resources and straining the energy grid for private gain, and a group of federal lawmakers led by Senator Elizabeth Warren requested details from six major Bitcoin mining companies about their electricity usage and contributions to climate change. The NY League of Conservation voters sent a letter to Governor Hochul urging her to pause and regulate cryptomining, and 1199 SEIU recently announced their endorsement of a cryptomining moratorium. Earlier this year, President Biden issued an executive order requiring federal agencies study the legal, economic, and environmental impacts of cryptocurrencies, including Bitcoin mining. Even the Mayor of New York City, Eric Adams, an avid crypto booster has come out against mining, declaring at a February 9th joint session of the Legislature: "I support cryptocurrency, not crypto mining."

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. A letter sent to Governor Hochul in October was signed by more than 650 individuals and groups. 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 grandfathered-in permits. And recently, several groups sent an open letter to Senators Gillibrand and Schumer urging them to visit the Finger Lakes and meet the residents and business owners whose livelihoods are suffering the environmental and economic consequences of Greenidge.

Legislation (A7389B/S6486C) to place a 2 year moratorium on proof-of-work cryptomining in New York State recently passed the NYS Assembly, and now must be approved by the Senate.

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.