For New York to meet its ambitious climate goals, it is critical for energy consumption to decrease and for fossil fuels to be phased out. “Proof-of-work” (PoW) cryptocurrency mining uses enormous amounts of energy, reaps no tangible public benefit, and comes with an enormous carbon footprint. Most of the energy generated at these crypto mines never goes into the electrical grid. Instead, it is used by private companies, and only these companies and their investors enjoy the associated financial benefits. Meanwhile, the adverse environmental impacts of these polluting facilities are externalized, at the expense of the local communities in which they are located. In June 2022, the Hochul administration denied the air quality permit for the Greenidge plant in the Finger Lakes, which burns fracked gas for Bitcoin mining. The decision stated that the energy and climate impacts of PoW cryptocurrency mining operations at the power plant are inconsistent with New York’s climate goals. This precedent-setting decision demonstrates New York’s commitment to fulfilling the goals of the Climate Leadership and Community Protection Act (CLCPA) by taking steps to transition away from fossil fuel dependency. However, in order to ensure that we meet our climate mandates, more must be done. With proposals for cryptocurrency companies similar to Greenidge popping up across the state, this unregulated industry could drastically undermine the climate goals established under the CLCPA. Achieving the vision of an emissions-free grid by 2040 and a carbon neutral society by 2050 will not be possible if we allow fossil-fueled cryptocurrency operations to continue unchecked. This year, our state legislature passed first-in-the-nation legislation to protect peoples’ health and the environment by finally requiring the State to investigate the impacts of this technology on the environment and climate. The legislation, S.6486-D/A.7389-C, would establish a 2-year moratorium on the operation of cryptocurrency mining operations attached to fossil fuel facilities in NY until a full generic environmental impact statement has determined whether such operations can be mitigated to comply with the CLCPA. Now, the fate of the legislation is in the Governor’s hands. Will you send a message to Governor Hochul urging her to sign the moratorium into law? If no action is taken to ensure that a comprehensive generic environmental impact statement review is conducted, New York could see hundreds of unregulated data centers paired with dirty fossil fuel facilities popping up across the state. Halting the issuance of permits for fossil fuel power plants that run crypto mining operations for two years is a common-sense move, and the legislation would strengthen and solidify the valid points made in the Greenidge decision.
Bitcoin mining has the capacity to undermine our climate goals and increase pollution in communities that are already burdened with legacy contamination. Most New Yorkers concerned about climate change do not have the same financial resources as out of state cryptocurrency interests, but we do have our collective voices. Please urge Governor Hochul to sign S.6486-D/A.7389-C today, because we can’t allow crypto mining to exacerbate existing climate and health inequities any further.
Thank you for all you do to protect New York’s environment.
Roger Downs, Conservation Director
Sierra Club Atlantic Chapter
Take Action Today!