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 country’s Public Service Commission (PSC) is responsible for regulating public utilities, and authorized in September 2022 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 is set to be taken over by Canadian crypto mining company Digihost.
Plaintiffs claim that the agreement violates the New York climate law of 2019. The Climate Leadership and Community Protection Act (CLCPA) sets the goal of 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 are represented by the nonprofit Earthjustice, claiming that the Fortistar plant is only operated during times when electricity is needed, such as during extreme weather conditions. However, as a crypto mining factory, the site will run 24 hours a day, producing up to 3,000% more greenhouse gas emissions.
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Activists argue that New York state should conduct environmental reviews when reviewing projects.
In October 2021, a letter from a local business group asked the state to reject the conversion of power plants into crypto mining facilities, which stated:
“Proof-of-Work cryptocurrency mining uses a lot of energy to power the computers needed to do business – if this activity develops in New York, it could drastically undermine New York’s climate goals established under the Climate Leadership and Community Protection Act.”
According to public filings, Digihost plans to convert the facility to renewable natural gas to reduce its environmental impact. The company also noted that the mining site was approved by the North Tonawanda planning commission, which conducted an environmental review before making a decision.
In August, Digihost also announced plans to move part of its mining rigs from New York to Alabama in an effort to reduce energy costs, Cointelegraph reported.
Digihost did not immediately respond to Cointelegraph’s request for comment.