NY Supreme Court’s ruling saves BT miner Greenidge

The New York Supreme Court has ruled that the state’s environmental watchdog’s decision to shut down BTC miner Greenidge (NASDAQ: GREE) was “affected by errors,” allowing the miner to keep operating as it reapplies for a new permit.

Greenidge has been locked in a legal battle with New York’s Department of Environmental Conservation (DEC) for over two years over its mining facilities in Dresden, in the Finger Lakes region of the state. In June 2022, DEC denied the miner an air permit renewal, alleging its activities violated the state’s climate law. After lower courts dismissed its appeals, Greenidge headed to the Supreme Court in August, arguing that the DEC had overstepped its mandate.

Supreme Court Judge Vincent Dinolfo recently ruled on the petition, and both sides are claiming victory.

Judge Dinolfo first dismissed Greenidge’s claims that the DEC had overstepped its mandate. In its August filing, the firm alleged that the decision revealed “a troubling overreach of its authority.” The judge ruled that the DEC is mandated to deny or issue permit renewals for greenhouse gas-emitting operations. He also affirmed the agency’s claims that Greenidge’s emissions violated the state’s climate law, popularly referred to as CLCPA.

DEC-affiliated parties, including environmental lobby group Earthjustice, claimed this was a huge victory for the agency, describing it as “a precedent-setting win that ensures New York can continue making decisions to protect our climate and the health and wellbeing of all New Yorkers.”

Earthjustice had joined the lawsuit as an interested party, representing other environmental lobby groups opposed to “climate-killing cryptominer” Greenidge’s operations.

“We will continue our fight until Greenidge shuts down for good,” pledged Earthjustice attorney Mandy DeRoche.

Yvonne Taylor, the vice president of the Seneca Lake Guardian, stated that while the ruling was vital, “I’m infuriated that Greenidge can continue to operate while the case goes back to administrative court…we will keep fighting until the facility is shut down.”

Greenidge claims victory

Greenidge, for its part, praised the ruling as a victory for the company. Specifically, the firm applauded the judge’s ruling that the final decision to deny it the air permit “was arbitrary and capricious and affected by an error of law.”

“Transparent political bias lost today. Facts and the rule of law won. The ruling ensures our facility will continue operating and our local employees will not have their careers ripped away by politically motivated governmental overreach that had no basis in law from the first day it began,” the company, which went public in 2021, said in a statement.

However, the ruling was more of a partial relief than an outright victory for Greenidge. The miner must reapply for the air permit from the DEC, and as the judge ruled, the agency has the authority to deny the permit yet again, as long as it does so within the confines of the law and consistent with established precedents.

Greenidge’s facility was a coal plant for most of its 67-year existence. It was then shut down for years before Greenidge revived it during the COVID-19 era to mine BTC. The local community, environmental groups, and the DEC have fought against its operations for years, claiming that its pollution was affecting locals’ health and working against the state’s pledge to reduce greenhouse gas emissions. Last year, the firm emitted 388,000 tons of CO2, equating to more than 80,000 cars.

Greenidge has, however, dismissed the impact of its facility on the state’s overall emission figures. In its statement, the miner claimed that shutting down the operation would have “no material impact on reaching Climate Law goals.”

The legal showdown in New York is one of several in the U.S. and beyond between miners and local communities. Some battles have resulted in the shutdown of miners, such as in the Norwegian town of Stokmarknes, where consistent public complaints led to the closure of a mining center.

In the U.S., dozens of legal battles are ongoing. The latest pitted America’s largest BTC miner, Marathon Digital (NASDAQ: MARA), against the residents of Hood County in Northern Texas. The locals claim the loud noises have affected their health and want the facility shut down.

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