A New York trial court vacated the New York State Department of Environmental Conservation’s (DEC’s) denial of an application to renew an air permit for a power plant used for behind-the-meter cryptocurrency mining. DEC’s final denial concluded that the facility’s operation would be inconsistent or interfere with attainment of Climate Leadership and Community Protection Act (CLCPA) statewide greenhouse gas emissions limits. The court found that DEC had authority under New York’s Uniform Procedure Act to deny applications for inconsistency with the CLCPA’s standards but that DEC’s denial in this case was arbitrary and capricious and affected by an error of law because the agency stopped its analysis at a finding of inconsistency with the emissions limits and did not assess the justification for the project. The court therefore annulled the final denial and remitted to DEC. The court rejected, however, the applicant’s contention that DEC had engaged in improper policymaking by deciding “behind closed doors” that electricity use for cryptocurrency mining was not desirable. The court also upheld DEC’s determination that granting the renewal application would be inconsistent with attainment of the greenhouse gas emissions limits. In addition, the court found that the applicant did not exhaust its administrative remedies for a Supremacy Clause argument that federal regulation superseded CLCPA obligations.

Challenge to the denial of an application for renewal of a Title V air permit for natural gas-fired power plant used to power cryptocurrency mining.

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

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New York Court Annulled Climate Law-Based Denial of Air Permit for Power Plant Used for Cryptocurrency Mining

Filed

United States of America

New York

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Area of the economy in which actors engage in identical or related activities.

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The management and allocation of funds, assets and investments to meet various objectives

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Either money or something of monetary value is transferred between two or more organisations, people or countries.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Actions to reduce emissions in energy generation and supply.

Investment in electricity transmission and distribution systems capable of integrating renewable energy, supporting electrification and strengthening energy system resilience.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

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Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

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Heavy precipitation refers to any form of weather where substances fall from the sky, including rain, snow, sleet, or hail.

New York Court Annulled Climate Law-Based Denial of Air Permit for Power Plant Used for Cryptocurrency Mining

Target

Policy instrument

Risk

Impacted group

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Finance