Enviro Activists Tell NYS Senate: Crypto Is A Climate Killer; Moratorium Now

ALBANY, NY (01/13/2022) (readMedia)-- Joseph Campbell, president of Seneca Lake Guardian, spoke this morning at a NYS Senate Roundtable about the environmental impact of proof-of-work cryptocurrency mining. The roundtable was hosted by Senators Todd Kaminsky, Kevin Parker, and Diane Savino. A quickly expanding industry, crypto mining poses a severe threat to the local environment, economies, and the climate.

"Proof-of-work cryptocurrency mining is a climate killer. Completely unregulated, wealthy outside speculators are 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. Like fracking, which New York state banned, crypto mining poses a serious threat to the health and safety of all New Yorkers, while privatizing limited, public resources. We can not become the wild west for crypto-bros kicked out of China looking for cheap power. That's why we're urging Governor Hochul to impose a moratorium on proof-of-work cryptocurrency mining. Repowering or expanding coal and gas plants to make fake money in the middle of a climate crisis is literally insane." said Joseph Campbell, president of Seneca Lake Guardian.

Background

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 mining is a rapidly growing industry. Its energy use across the country has risen 320% in just the past five years across the country, and New York hosts nearly 20%. Despite the danger it poses, Tusk Strategies recently announced a massive initiative to make New York the crypto mining capital of the country. Without swift action from the NYS government, New York's environment, local businesses, and climate goals are in their line of fire.

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.

There is currently no state or federal oversight for this industry, and outside speculators are flocking to New York to take advantage of the lack of regulation. There are nearly 30 decommissioned or underutilized power plants upstate, 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 guaranteeing 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 and water, is now unconstitutional.

Crypto mining privatizes access to the grid for private gain and sets a dangerous precedent, wherein anyone with the resources to do so can burn fossil fuels and strain the grid in order to make a profit. 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."

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.