Judge Issues Decision in Greenidge Generation Air Permit Case Against NYS DEC
YATES COUNTY, NY (WENY) -- A Yates County Supreme Court judge has issued an order in a suit filed by cryptocurrency mining operation Greenidge Generation, against the New York State Department of Environmental Conservation and its acting commissioner, Sean Mahar.
Greenidge Generation operates a natural gas power plant and Bitcoin mining facility in Dresden, in Yates County. The facility generates its own electricity to power its miners, known as "behind the meter" power.
In 2022, the New York State DEC denied Greenidge the renewal of its Title V Air Permit, stating "renewal of the Title V permit would be inconsistent with or would interfere with the attainment of the Statewide greenhouse gas (GHG) emission limits established in Article 75 of the Environmental Conservation Law (ECL)" based on the state's Climate Leadership and Community Protection Act (CPCLA), that went into effect in 2020.
Greenidge Generation appealed the decision, and in May of 2024, an administrative law judge ruled that the DEC did not err in finding that the renewal of the Title V air permit would be inconsistent with the CLCPA's GHG emission limits.
In August 2024, Greenidge filed suit in Yates County Supreme Court, bringing six claims against the DEC, seeking the annulment of the DEC's final denial of the Title V Air Permit, stating the agency lacks the authority to deny Greenidge's permit application under the CLCPA; the DEC failed to assess justification and alternatives/mitigation as required by the CLCPA; the DEC's consistency determination was arbitrary and capricious; the DEC's interpretation of the CLCPA is in error of law as it would render the CLCPA in violation of the Supremacy Clause, and additionally asked a series of ten declaratory judgments pursuant to CPLR 3001 concerning CLCPA and DEC's application of CLCPA.
Greenidge also filed a motion seeking a temporary restraining order and preliminary injunction to prevent the DEC from requiring the company to relinquish its Title V permit, or shut down operations at its Dresden facility. Since the permit renewal application was denied in 2022, Greenidge has been able to continue its operations as normal during the appeals and litigation process.
During oral arguments on October 29, both Greenidge and the DEC agreed to extend a deadline to relinquish its permit until November 14, 2024.
Ultimately, in the court decision filed on November 14, 2024 the Yates County Supreme Court Judge ruled that the DEC had authority under the CLCPA to deny the renewal application. However, the judge wrote that the DEC's "disinclination to grant the Renewal Application foreclosing CLCPA 7 (2)'s justification analysis was arbitrary and capricious and affected by an error of law."
In his conclusion, the judge annulled the May 8, 2024 decision by the DEC regional director to deny Greendige's application to renew its Clean Air Act Title V permit, and referred the matter to the DEC for further proceedings. However, the judge denied Greenidge's motion for a temporary restraining order and preliminary injunction, as well as a request for relief.
In separate statements, both Greenidge Generation and environmental opponents against its operations called the judge's decision a victory.
Greenidge Generation's statement is as follows:
“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 Climate Act is a good and well-intended law, but it did not give DEC political appointees and bureaucrats the power to rewrite a statute and unilaterally decide for themselves the value of working-class New Yorkers’ jobs. They tried hard, in concert with their allies in the advocacy community for whom truth was a bridge too far, but no amount of spin could change that fact.“The damage caused to our company and employees by the recklessness of the DEC and all those who lied about our operation is real, and today the Court set the record straight – we were right, and the state and its allies were wrong.“This is the seventh court ruling on Greenidge’s operation – with seven decisions in favor of Greenidge. Why? Because when actual judges rule — not DEC political actors — the facts and law govern, and our record is clear: we comply with state and federal law.“DEC wanted a virtue-signaling result: to shut down a facility with no material impact on reaching Climate Law goals and one that offered significant emissions mitigation consistent with Climate Act aims. So they tried to short-circuit the process to get to their pre-determined outcome – and they got caught.“This decision highlights the growing importance of data center operations – whether supporting AI, digital currency, cloud computing, or other high-tech businesses – and how we can bring modern career paths to Upstate New Yorkers, who have waited far too long for the opportunity.“Our facility shows this region can create future-focused data center jobs and economic activity by utilizing power behind the meter – and provide power to the electrical grid everyday – while also meeting the state’s ambitious climate goals.“Going forward, we hope the DEC will listen to the Court and begin working collaboratively with Greenidge to finalize a new permit, consistent with the court’s rebuke of the State’s decision and for the benefit of New York State.”
"Today's ruling confirms what we've known all along: that the DEC has the statutory authority under New York's climate law to deny Greenidge the air permit that allows it to power its cryptomine," said Lisa Perfetto, a senior attorney in the Clean Energy Program at Earthjustice.
"Greenidge's cryptomining operation clearly violates the CLCPA and should immediately cease operations. The Finger Lakes community has been sounding the alarm on the disastrous impacts of this facility on their water, air, and climate. We will continue our fight until Greenidge shuts down for good," said Mandy DeRoche, a deputy managing attorney in the Clean Energy Program at Earthjustice.
"Not only was Greenidge trying to overturn the prior DEC decisions, it was also trying to decimate New York's monumental climate law," said Kate Bartholomew, Atlantic Chapter Chair, Sierra Club. "I'm heartened that the court saw through the out-of-state polluter's erroneous claims in this case. I am disgusted by how much this polluter is allowed to abuse the legal system and to continue operating as it aggressively litigates its weak claims."
"While I'm relieved by the precedent set by today's decision, I'm infuriated that Greenidge can continue to operate while the case goes back to administrative court. The cryptomining operation has been sucking up millions of gallons of water a day from Seneca Lake and dumping it back in at dangerously hot temperatures," said Yvonne Taylor, vice president of Seneca Lake Guardian. "For years, Greenidge has been polluting local air and spewing climate-warming greenhouse gasses into the atmosphere. It's absurd that Greenidge is still operating, and we will keep fighting until the facility is shut down."
"I applaud the judge's decision to support the DEC's authority to rescind Greenidge's air emission permit," said Irene Weiser, coordinator of Fossil Free Tompkins, an environmental advocacy group. "However, I"m frustrated that this legal battle will continue, and that Greenidge will be able to continue polluting our community. This 67 year old power plant-that had been shut down for years before Greenidge came along-uses outdated technology that causes more pollution than its counterparts and should not be allowed to continue operating."