Greenidge Wins Court Approval but Faces Regulatory Challenges
The New York Supreme Court has ruled to allow Greenidge Generation to continue its operations and reapply for its Clean Air Act Title V permit. This ruling follows from a 2022 denial of its application to renew an air permit by the New York State Department of Environmental Conservation because of potential violations of the state’s Climate Leadership and Community Protection Act.
Judge Vincent Dinolfo’s ruling overturned the DEC’s denial, finding that the agency had behaved arbitrarily and capriciously in making its final decision. However, the court did confirm that the DEC had the authority under the CLCPA to deny such permits, in that respect demonstrating that Greenidge must remain subject to onerous environmental strictures going forward.
Denial of Permit Under Appeal
The case emerged after Greenidge lost an appeal against the DEC’s denial of permits in May this year. Facing a possible shutdown, Greenidge launched an Article 78 petition in efforts to secure a judicial review. Thanks to a Nov. 14 court decision, the Bitcoin mining facility located in Dresden, New York, has been allowed to continue running while the DEC reconsiders this application.
Judge Dinolfo emphasized that, though the DEC was within its rights to deny the permit, given the climate laws in place, there were major errors on the part of their reasoning. The case has now been referred back to the DEC, pending reconsideration, after the court decision.
Polarized Reactions
The ruling has attracted wide and varied reactions from all sides. Greenidge celebrated the decision as a huge victory for its local workforce and against what it described as “politically motivated governmental overreach.” It said it remained supremely confident in its ability to meet environmental standards while continuing operations.
But environmental groups were less enthused. Earthjustice, speaking on behalf of several advocacy organizations, expressed frustration with the court’s decision to allow Greenidge to continue operating while litigation continues. “Greenidge is gaming the system to avoid accountability for its outsized role in polluting our air and heating our planet under New York’s landmark climate laws,” Sierra Club Atlantic Chapter chair Kate Bartholomew said in a statement.
The case serves as a reminder of the tensions among economic interests, environmental advocacy, and New York’s high-minded climate goals, as reconsideration of Greenidge’s permit works its way through the process. Though the company has dodged a bullet, it remains squarely in the sights of regulators and environmental groups.
