DEC denies Greenidge air permit renewal

YATES COUNTY--In a decision that has both rallied environmental advocates and unified project supporters, the New York State Department of Environmental Conservation announced Thursday, June 30 it has denied a Title V air permit renewal for the Greenidge Generation facility. In a 20-page document, the DEC explained the permit renewal did not demonstrate the required compliance with the state Climate Leadership and Community Protection Act.
"Rather than solely providing energy to the state's electricity grid, the power plant now primarily provides energy behind-the-meter to support the demands of Greenidge's energy-intensive proof of work cryptocurrency mining operations," the DEC statement announcing the decision read.
While the renewal was denied, Greenidge officials have already announced operations at the plant will continue unabated while they challenge the decision.
"Because our application was already deemed complete, we operate pursuant to the State Administrative Procedures Act (SAPA). Consistent with the provisions of the SAPA, we can continue running uninterrupted under our existing Title V Air Permit, which is still in effect, for as long as it takes to successfully challenge this arbitrary and capricious decision," a Greenidge press release said.
The DEC highlighted current power generation at Greenidge has shifted from grid support to powering thousands of Bitcoin mining computers that can run 24 hours a day, seven days a week. The fossil fuel, natural gas, burned to create the power "emitted 514,012 short tons [carbon dioxide equivalent] of greenhouse gases including both direct and upstream emissions," in 2021. There have also been concerns that the facility's use of Seneca Lake water to cool power-generating equipment could create conditions that would help harmful algae blooms be more prevalent. The original Title V air permit was granted long before the existence of the crypto mining operation was ever established. The DEC said in their denial that they considered if the facility was "necessary for purposes of maintaining electric system reliability," and concluded, "From 2011 through 2017, however, the facility did not operate; no known reliability issues were identified during that period. Studies undertaken over the last decade also demonstrate that the facility is not needed in any capacity for purposes of maintaining the reliability of the electric system."
Environmental advocates said Greenidge operations oppose the vast tourism industry in the region. Greenidge officials have long held they are a legacy operation dating back to 1937 and abide by all permits.
"This is an incredible, precedent-setting moment for everyone who has fought side by side with the Finger Lakes community," said Yvonne Taylor, vice president of Seneca Lake Guardian in a prepared statement. "Gov. Hochul and the DEC stood with science and the people, and sent a message to outside speculators: New York's former fossil fuel-burning plants are not yours to re-open as gas-guzzling Bitcoin mining cancers on our communities."
In a statement, Greenidge officials noted they offered to reduce emissions as part of the renewal, but also go on to say the state has no legal standing to deny the permit in the first place.
While environmental leaders are celebrating the news, local county officials and business leaders are decidedly not.
"Our county legislature voted unanimously in support of Greenidge in 2015, 2016 and again in 2021, and for good reason," said Nonie Flynn, Yates County administrator. "For anyone living in Yates County, Greenidge has provided a reliable source of revenue to fund the services we provide. This revenue has helped allow Yates County to keep our tax levy flat at $16.5 million for the past three years, which has a positive impact on each and every Yates County resident."
Along with the loss in tax revenue, there is concern the county could lose some of the highest-paying jobs in the region.
"Our community has benefited enormously from Greenidge, and I'm extremely disappointed in this decision," said Steve Griffin, CEO of the Finger Lakes Economic Development Center. "Not only has Greenidge hired locally, including recent local high school graduates, but they created more jobs in tech than anyone in the area, and more than they had originally estimated. These jobs are paying some of the highest salaries in the county."
Despite the benefits to Yates County, public comments solicited by the state about the project were overwhelmingly negative. The DEC received over 4,000 comments and a FOIL request by Cornell researchers in April discovered 98 percent of the comments were against the permit renewal.
While operations at Greenidge will continue in the meantime as they mount a legal challenge, environmental advocates and politicians throughout the state have implored Gov. Hochul to sign a crypto mining moratorium bill.
"Now, it's up to Gov. Hochul to finish the job by signing the cryptomining moratorium bill," said Taylor. "Especially in light of this morning's EPA v. WV decision, she has a real opportunity to protect New York's Climate Leadership and Community Protection Act -- and lead the nation -- by acting now."