NY Supreme Court allows Greenidge Bitcoin Miner to stay open, pending permit review

The New York Supreme Court has ruled in favor of Greenidge, a Bitcoin mining operation, allowing the company to continue its operations while it reapplies for a new air permit.

The ruling, which follows a protracted legal battle with the state’s Department of Environmental Conservation (DEC), acknowledges procedural errors in the state agency’s initial decision to shut down the facility.

Greenidge, based in Dresden, in the Finger Lakes region, has faced fierce opposition from environmental groups and local communities, who argue that the facility’s high emissions violate New York’s climate law. In June 2022, the DEC denied Greenidge’s request to renew its air permit, claiming the company’s operations were out of compliance with the state’s Climate Leadership and Community Protection Act (CLCPA). After the firm’s appeals were rejected by lower courts, Greenidge took the case to the state’s highest court in August, challenging the DEC’s authority and the environmental concerns raised by its operations.

In his ruling, Supreme Court Judge Vincent Dinolfo upheld the DEC’s authority to deny permits for operations that emit significant greenhouse gases, affirming that Greenidge’s emissions violated the CLCPA. However, the judge also concluded that the DEC’s decision to deny the permit was “arbitrary and capricious” and tainted by legal errors, allowing Greenidge to reapply for the necessary permits to continue operating.

Environmental groups, including Earthjustice, hailed the decision as a victory for climate protection, with Earthjustice attorney Mandy DeRoche vowing to continue the fight against the facility. “We will continue our fight until Greenidge shuts down for good,” DeRoche stated.

Despite this, Greenidge claims a partial victory. The company praised the ruling for upholding its right to operate, asserting that “transparent political bias lost today,” while emphasizing that the ruling allows the company to continue its operations and protect local jobs. However, the miner must reapply for the air permit, and the DEC retains the authority to deny the request if it complies with the law.

The legal battle over Greenidge’s operations is part of a broader national debate over the environmental impact of cryptocurrency mining, which has sparked tensions between local communities, environmental advocates, and the industry. Greenidge, which revived a former coal plant to mine Bitcoin, emitted over 388,000 tons of CO2 last year, equivalent to the emissions from 80,000 cars. Despite the criticism, Greenidge maintains that its operations have no significant impact on New York’s overall climate goals.

As the case returns to the administrative courts, the outcome of this ongoing legal battle remains uncertain, with both sides gearing up for what could be a prolonged fight over the future of Bitcoin mining in the state.