The New York Public Service Commission (PSC) was sued by environmental activists Jan. 13 for approving the acquisition of a cryptocurrency mining facility in the state.
According to The Guardian, the state’s Public Service Commission (PSC) is responsible for regulating public utilities and approved the conversion of the Fortistar North power plant into a crypto mining site in September 2022.
Located in Tonawanda, a town less than ten miles from Niagara Falls, the facility was set to be acquired by Canadian crypto mining firm Digihost.
Plaintiffs allege that the permit violates the New York City Climate Act of 2019. The Climate Leadership and Community Protection Act (CLCPA) sets goals, among other things, to reduce nationwide emissions by 85% by 2050 and zero-emission electricity by 2040.
In the lawsuit, the Clean Air Coalition of Western New York and the Sierra Club are represented by the nonprofit Earthjustice, which alleges that the Fortistar system only operates during periods of high power demand, such as peak hours. B. extreme weather conditions. However, as a crypto mining facility, the site would run 24 hours a day and generate up to 3,000% more greenhouse gas emissions.
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Activists argue that New York State must conduct environmental assessments when appraising projects.
In October 2021, a letter from a group of local businesses called on the state to refuse to convert the power plant into a crypto mining facility, claiming:
“Proof-of-work cryptocurrency mining consumes massive amounts of energy to power the computers needed to do business – should this activity expand to New York it could be the subject of the Climate Leadership and Community Protection Act drastically undercut the New York climate targets set.”
According to public documents, Digihost planned to convert the facility to renewable natural gas to reduce its environmental impact. The Company also noted that the mining site has been approved by the North Tonawanda Planning Commission, which conducts environmental assessments before making decisions.
In August, Digihost also announced plans to move some of its mining rigs from New York to Alabama to reduce energy costs, Cointelegraph reported.
Digihost did not immediately respond to Cointelegraph’s request for comment.