Environmental activists filed a lawsuit against the New York Public Service Commission (PSC) on January 3, 13 to approve the acquisition of a cryptocurrency mining facility in the country.
according to According to The Guardian, the state's Public Services Commission (PSC) is responsible for regulating public services, 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 city less than ten miles from Niagara Falls, and was slated to be acquired by Canadian cryptocurrency mining company Digihost.
The plaintiffs claim the approval violated New York's 2019 climate law. The Climate Leadership and Community Protection Act (CLCPA) sets a statewide 85% emissions reduction goal by 2050 and zero electricity emission reductions by 2040, among other goals.
In the lawsuit, the Clean Air Alliance of Western New York and the Sierra Club were represented by the nonprofit organization Earthjustice, alleging that the Fortistar plant was operating only during periods of high demand for electricity, such as severe weather conditions. However, as a crypto mining facility, the site will operate 24 hours a day, increasing greenhouse gas emissions by up to 3,000%.
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Activists argue that New York state should conduct environmental reviews when reviewing projects.
In October 2021, a letter from a group of local businesses He asked the State to refuse to convert the plant to a cryptocurrency mining facility, alleging that:
โProof-of-work cryptocurrency mining uses massive amounts of energy to power the computers needed to do business; if this activity were to expand in New York, it could significantly undermine New York's climate goals established under the Climate Leadership and Community Protection Act. โ
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 mine site has been approved by the North Tonawanda Planning Commission, which conducts environmental reviews before making decisions.
In August, Digihost also Revealed 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.
