POWERING CRYPTO

PETE SALOUTOS; LUERAT SATICHOB/GETTY IMAGES

CANARY IN THE COIN MINE

Some lawmakers are trying to pause energy-intensive bitcoin operations in New York. They’re facing an uphill battle.

By Annie McDonough

WHEN THE NORTH COUNTRY city of Plattsburgh enacted a first-in-the-nation ban on cryptocurrency mining in 2018, it was because of nonstop noise and rising energy bills due to the city’s power quota. Environmental concerns about the energy demands of bitcoin mining weren’t yet on too many Plattsburgh residents’ radar. “Nobody knew, back then, much about bitcoin,” said Colin Read, who was mayor of Plattsburgh at the time.

In New York today, the debate over bitcoin mining has become primarily focused on its environmental effects. Bitcoin mining is a controversial – and now closely watched – practice because of the massive amount of energy that one particular type of mining used for bitcoins, known as proof-of-work mining, consumes. In proof-of-work mining, many computers compete against each other to solve complex puzzles that allow miners to verify transactions and unlock new coins.

And even just four years ago, Read said, bitcoin mining’s carbon footprint was a fraction of what it is today. That’s in part thanks to the design of the virtual currency, which becomes more difficult to mine as more people participate in mining. As the state continues to experience a boom in bitcoin mining, some state lawmakers are trying to block new mining sites at fossil fuel plants with a proposed statewide moratorium.

Even New Yorkers who aren’t entirely sure what bitcoin mining is may have heard of Greenidge Generation, a converted natural gas power plant near Seneca Lake that is powering energy-intensive proof-of-work mining. Greenidge is in the process of renewing key state permits for its plant, including an air pollution control permit required for large emitters like power plants. In its decision, the state Department of Environmental Conservation must consider whether Greenidge’s greenhouse gas emissions are in compliance with the standards set by the landmark Climate Leadership and Community Protection Act. The 2019 law requires, among other benchmarks, a 40% reduction in state greenhouse gas emissions (from 1990 levels) by 2030. In initial statements, the state has said Greenidge hasn’t yet demonstrated compliance with the new law.

For over a year, residents and environmental advocacy groups like Seneca Lake Guardian have protested the plant, called for the state to deny Greenidge renewed permits and advocated for a statewide moratorium on proof-of-work mining to halt more operations like Greenidge from moving into New York. Although the impending decision is a routine permit renewal, some now consider it a bellwether for New York’s tolerance for more sites like Greenidge. “We view Greenidge as the test case for how the other underutilized or decommissioned power plants throughout New York state will fall. If (the permit renewal) is denied, that would sort of cast an unfortu-