A New York judge has indicated that a decision will be made by mid-November regarding Greenidge Generation’s legal challenge against the state, according to reports from local news outlets and a lawyer involved in the proceedings. This ruling could potentially conclude the ongoing dispute over the cryptocurrency mining operation’s power plant in Yates County.
The Greenidge Generation facility uses natural gas to generate electricity for its Bitcoin mining activities. This process results in the release of greenhouse gases, contributing to concerns about climate change.
Earlier this year, the New York State Department of Environmental Conservation (DEC) reaffirmed its decision to deny the renewal of the company’s operating permit for the power plant.
The DEC concluded that the power plant’s operations were “incompatible” with the state’s mandated emission reduction targets, specifically a 40% decrease in greenhouse gas emissions by 2030 as outlined in New York’s climate law.
Greenidge subsequently filed a lawsuit against the DEC in a Yates County court, challenging the permit denial. The company contends that the DEC misinterpreted the climate law and exceeded its authority in rejecting the permit application.
In a recent court document, Greenidge Generation President Dale Irwin stated that a forced closure of the power plant would necessitate the layoff of nearly all of its 31 employees, with 29 of these employees residing in New York.
“If forced to shut down, Greenidge would be compelled to cease operations at the Facility and move its cryptocurrency business to another state,” Irwin declared in a sworn statement.
During a court hearing in Penn Yan on Tuesday, Judge Vincent Dinolfo announced his intention to issue a ruling in the case by November 14th, according to Mandy DeRoche, an attorney representing Earthjustice, an environmental law organization.
Earthjustice is representing environmental advocacy groups including Seneca Lake Guardian, the Committee to Preserve the Finger Lakes, and the Sierra Club, all of whom have intervened in the case and are advocating for the plant’s closure, DeRoche stated.
“The emissions from this power plant are detrimental to the local community, the state as a whole, and the environment,” DeRoche argued. “Its continued operation constitutes a violation of New York State’s climate regulations, and it must be stopped.”
Greenidge has entered into an agreement with the state allowing it to continue operating while the legal proceedings are underway. The state had initially mandated that the company cease operations by September 9th.
A Greenidge spokesperson maintained that the power plant adheres to all relevant state and federal regulations. Furthermore, the spokesperson asserted that the company has generated jobs and economic opportunities in Yates County that align with New York’s environmental objectives.
“We are confident that a ruling based on legal principles will allow us to continue our operations,” the spokesperson added.
Data reported to the DEC indicates that between 2017 and 2019, the power plant’s emissions were comparable to those produced by nearly 40,000 vehicles. In 2020, these emissions more than doubled, and continued on an upward trajectory in 2021.