• Environmental group has filed a lawsuit against the New York Public Service Commission (PSC) for allowing the takeover of a bitcoin mining plant in the state.
• The state Public Service Commission (PSC), which oversees public utilities, approved the conversion of the Fortistar North power plant into a crypto-mining facility in September 2022.
• The organization Earthjustice is representing the Clean Air Coalition of Western New York and the Sierra Club in the complaint, which asserts that the Fortistar plant was only used when there was a significant demand for energy, such as during severe weather.
On January 13th, environmental activists filed a lawsuit against the New York Public Service Commission (PSC), accusing them of violating the state’s 2019 Climate Leadership and Community Protection Act (CLCPA). The lawsuit is in response to the PSC’s decision to allow the takeover of a bitcoin mining plant in the state. The facility, known as Fortistar North, is located in Tonawanda, less than 10 miles from Niagara Falls.
The PSC, which oversees public utilities, approved the conversion of the Fortistar North power plant into a crypto-mining facility in September 2022. Canadian cryptocurrency mining company Digihost was slated to take over the site and operate it around-the-clock. This would result in up to 3,000% greater greenhouse gas emissions than the plant had previously produced.
The lawsuit, filed by Earthjustice on behalf of the Clean Air Coalition of Western New York and the Sierra Club, alleges that the PSC’s decision violated the CLCPA. The Act includes a goal of achieving zero-emission electricity by 2040 and a reduction of 85% of state-wide emissions by 2050. Activists also argue that the PSC did not conduct the necessary environmental reviews before approving the project.
In an October 2021 letter, a coalition of environmental groups urged the PSC to reject Digihost’s application, citing the company’s track record of pollution, climate disruption, and violations of labor rights. The letter also argued that the plant’s conversion was in conflict with the CLCPA.
The lawsuit seeks to compel the PSC to rescind its approval of the project and to require the Commission to conduct an environmental review. It also requests that the PSC be held accountable for any damages incurred by the conversion of the Fortistar North power plant into a crypto-mining facility.
The lawsuit comes amidst a growing concern over the environmental impacts of cryptocurrency mining. Many governments have taken steps to limit or ban the activity due to the high levels of energy consumption and associated greenhouse gas emissions. The New York lawsuit could set a precedent for other states considering similar projects.