In re Greenidge Generation LLC

In a ruling on issues raised regarding the denial of an application for renewal of a natural gas-fired power plant’s Title V air permit, a New York State Department of Environmental Conservation (NYSDEC) administrative law judge (ALJ) ruled that Section 7(2) of the Climate Leadership and Community Protection Act (CLCPA) authorized NYSDEC to deny the application. Section 7(2) provides that New York State agencies must consider whether decisions “are inconsistent with, or will interfere with, the attainment of the statewide [greenhouse gas] emission limits” established in the CLCPA, and, if an action is deemed inconsistent, that agencies must provide a detailed justification and identify alternatives or greenhouse gas mitigation measures to be imposed. The ALJ also found that NYSDEC staff did not err in concluding that the renewal permit was not consistent with the CLCPA emissions limits notwithstanding the applicant’s proposal to cease operations in 2035 or 2040. The ALJ’s other issues rulings included a determination that CLCPA Section 7(3)—which requires that New York State agencies “not disproportionately burden disadvantaged communities”—was applicable to the permit renewal application. The ALJ identified three issues for adjudication: (1) whether there is justification for renewal of the air permit notwithstanding its inconsistency with the greenhouse gas emissions limits; (2) whether there are proposed alternatives or greenhouse gas mitigation measures that would immediately lessen or eliminate the inconsistency or interference with greenhouse gas emissions goals at the time of permit issuance; and (3) whether renewal of the air permit would disproportionately burden disadvantaged communities. Although the ALJ concluded that the power plant’s primary purpose—which was to provide electricity for cryptocurrency mining—was not relevant to whether the renewal permit was inconsistent with the CLCPA greenhouse gas emissions limits, the ALJ found that purpose could be considered in the determination of whether the permit renewal was justified. The ALJ granted full party status to four environmental groups.