ICYMI: 1199 SEIU Endorses Cryptomining Moratorium

ALBANY, NY (04/28/2022) (readMedia)-- Yesterday, 1199 SEIU endorsed legislation that would put a two-year moratorium on new and renewed permits for proof-of-work cryptomining operations housed at fossil fuel-burning power plants (A.7389-C Kelles/S.6486-D Parker). This endorsement came just after the bill passed the NYS Assembly.

Todd Hobler, 1199SEIU Executive Vice President for Western and Upstate New York, said:

"The explosion of cryptocurrency mining projects in communities across New York threatens the air we breathe, the water we drink, our climate, our ecosystems and biodiversity. There is no public benefit to New Yorkers for using large amounts of our valuable energy resources to generate profit for a small number of wealthy private equity investors.

"New York is host to about 20% of all cryptocurrency mining operations in the United States. This speaks to the need for swift action at local and state levels to reign in this industry and ensure we do not worsen a climate and ecological crisis that is already at a tipping point.

"As a union of healthcare workers, many of whom live in low-income communities most effected by climate change, pollution, and health inequities, we believe that ending industrial cryptomining is important to protecting the wellbeing of all New Yorkers."

The union also put out a memo of support in favor of a cryptomining moratorium:

"Many 1199 members live in the shadows of power plants and, as healthcare workers, care deeply about the air we breathe and climate change. New York state should support and encourage industries that create good jobs and contribute to the community. We strongly support a A07389/S06486D and urge New York public officials to build an economy that protects the environment and works for all New Yorkers."

Read the full memo attached.

Background

Proof-of-work cryptocurrency mining (which Bitcoin uses) 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 year 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. 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.

These facilities are also 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 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.

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.

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 recently requested details from six major Bitcoin mining companies about their electricity usage and contributions to climate change. Earlier this month, 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."

Greenidge Generation, a power plant-turned-Bitcoin mine operating under grandfathered-in permits by the private equity firm that owns it, is the test case for proof-of-work cryptomining in New York. Its air permits are currently up for renewal by the NY Department of Environmental Conservation, 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 CLCPA. 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.

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.

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.

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1199SEIU United Healthcare Workers East is the largest and fastest-growing healthcare union in America. We represent over 450,000 nurses and caregivers throughout Massachusetts, New York, New Jersey, Maryland, Washington, D.C. and Florida. Our mission is to achieve quality care and good jobs for all.