Greenidge Generation LLC v. New York State Department of Environmental Conservation

The operator of a natural gas-fired power plant in Yates County, New York filed a lawsuit in New York Supreme Court challenging the New York State Department of Environmental Conservation’s (DEC’s) denial of its application to renew its Clean Air Act Title V operating permit. The operator asserted that DEC lacked authority under New York’s Climate Leadership and Community Protection Act (CLCPA) to deny the permit based on DEC’s determination that the application would be inconsistent or interfere with statewide greenhouse gas emission limits. The operator also alleged that DEC misinterpreted the CLCPA not to require that DEC determine whether a justification for the application existed or to identify alternatives and mitigation measures. The complaint alleged that DEC’s interpretation would permit the agency “to function as New York State’s de facto climate czar, determining on an ad hoc subjective basis what facilities should be permitted to operate or be shut down based on climate change considerations alone.” In addition, the operator alleged that the decision was based on DEC’s improper policy determination that the facility’s emissions could never be justified because DEC “disapproved of the end use of the electricity generated by the Facility, namely, behind-the-meter cryptocurrency mining.” The operator also asserted that DEC’s determination that the application would not be consistent with greenhouse gas emissions limits was arbitrary and capricious because the operator had reduced emissions by 70% from 1990 levels and had agreed to further reductions consistent with the law’s 2030 target. The operator also contended that DEC’s interpretation of the CLCPA would violate the Supremacy Clause because the agency’s determination did not comply with the New York Independent System Operator’s federally approved tariff.