New York Public Service Commission Sued By Environmental Activists, Here's The Cause!

JAKARTA - The New York Public Service Commission (PSC) was sued by environmental activists on January 13 for approving the takeover of cryptocurrency mining facilities in the state.

According to The Guardian, the state's Public Services Commission (PSC) is responsible for regulating public utilities and in September 2022 authorized the conversion of the Fortistar North power plant into a crypto mining site.

The facility is located in Tonawanda, a town less than ten miles from Niagara Falls, and will be taken over by Canadian crypto mining company Digihost.

Plaintiffs claim that the agreement violates New York's 2019 climate law. The Climate Leadership and Community Protection Act (CLCPA) sets targets for reducing 85% of statewide emissions by 2050 and zero-emission electricity by 2040, among other targets.

In the lawsuit, the Clean Air Coalition of Western New York and the Sierra Club represented by the non-profit Earthjustice, claim that Fortistar factories only operate during periods of high electricity demand, such as extreme weather conditions. However, as a crypto mining factory, the site will operate 24 hours a day, generating up to 3,000% more greenhouse gas emissions.

Activists argue that New York state should conduct an environmental review when inspecting projects.

In October 2021, a letter from a group of local businesses asked the state to object to converting the power plant into a crypto-mining facility.

“Proof-of-Work cryptocurrency mining uses enormous amounts of energy to power the computers needed to run a business — if this activity thrives in New York it could drastically undermine New York's climate goals set under the Act. Climate Leadership and Community Protection,” they said, quoted by Cointelegraph.

According to a public filing, Digihost plans to convert the facility to renewable natural gas to reduce its environmental impact. The company also noted that the mining site had been approved by the North Tonawanda planning commission, which conducted an environmental review prior to making a decision.

Cointelegraph reported last August, Digihost also disclosed plans to move some of its mining rigs from New York to Alabama in an effort to lower energy costs, Cointelegraph reported.

Digihost did not immediately respond to Cointelegraph's request for comment about the report.