Greenidge Generation Holdings Inc. scored a major legal victory in keeping its Dresden, New York, facility operating. The New York Supreme Court favored Greenidge when it overturned the state Department of Environmental Conservation (DEC) denial of a crucial Title V Air Permit to the company.
On November 14, the ruling favored the Bitcoin mining operation, which has been fighting the DEC in court orders over whether or not it was complying with state climate laws.
Judge Vincent Dinolfo criticized the DEC as arbitrary and capricious and faulted the agency’s interpretation of the Climate Leadership and Community Protection Act (CLCPA). The court said the DEC had failed to furnish a rational basis for rejecting Greenidge’s permit renewal, clearing the way for the company to continue operating without further interruption.
Bitcoin Miner Greenidge Wins Legal Battle Against DEC Over Air Permit
Greenidge sued the DEC in August after its air permit renewal was denied. The DEC cited the CLCPA as proof that Greenidge’s operations didn’t comply with New York’s climate regulations. However, the company denied that the agency had exceeded its authority or taken into account that the facility was meeting existing environmental standards.
Greenidge was rejected from its appeal in May but allowed a four-month operational waiver until September. With the latest court decision, Greenidge has won long-term approval to continue its mining operation in Dresden.
Greenidge hailed the ruling as a victory for “facts and the rule of law” over what the wind farm characterized as “politically motivated governmental overreach.” The company stressed that its operation complies with the regulatory regime as it is a critical provider of high-tech jobs and electricity generation.
The ruling marks Greenidge’s seventh favorable decision on issues related to its operations and strengthens Greenidge’s legal standing in the region. Dec executives expressed optimism about future collaboration with the DEC to finalize a new permit under the court’s ruling.
It underscores New York’s determination to reach ambitious climate goals and the continuing conflict between those climate ambitions and the demands of industrial operations. The CLCPA, as the state tackles meeting its environmental goals, creates questions about how the state seeks to balance its environmental objectives with economic development in sectors like cryptocurrency mining, which consumes considerable energy.
Greenidge’s legal victory could presage a way forward for handling similar conflicts in the future, at least in other industries that might follow Greenidge’s example to dispute regulatory decisions perceived as reflecting overreach.
After a years-long legal battle that ended today, Greenidge Generation can continue its operations in Dresden while helping New York carve out its place in the state’s changing energy landscape. What is happening with it all is complicated.
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