New York Senate Passes Crypto Mining Moratorium, Result Rests on Gov. Hochul

Over the past week, the New York State Senate passed a bill disallowing fossil fuel power plants from providing energy to proof-of-work (PoW) cryptocurrency mining projects for two years. Most crypto enthusiasts did not receive this recent development all too well. On the other hand, environmental groups expressed their enthusiasm and gratitude for the passage of the bill.

Generally, the bill still permits crypto mining done at home as well as those that utilize renewable energy or fossil fuels through the grid. Instead, it denies the air permits to the power plants that supply crypto mining projects. Power generation company Greenridge Generation, however, maintained that its operations do not fall under the purview of the bill.

State Assemblywoman Anna Kelles — who sponsored the bill at the lower house of the New York State Legislature — on the other hand, also pushed New York Governor Kathy Hochul to deny the air permits of the firm. “In essence this is a power plant bill. This bill says that we will not for the next two years allow cryptocurrency mining companies to purchase power plants that use fossil fuels … and use them for cryptocurrency mining. … That is the crux of this bill,” explained Kelles.

Greenridge Generation is only one of two bitcoin mining firms that the behind-the-meter fossil fuel power model. The Department of Environmental Conservation (DEC) is currently reviewing the company’s air permit, which is due for a decision on June 30. The Greenridge Generation power plant in Dresden — near Seneca Lake — uses lake water to cool its operation but some residents claim that this causes algae blooms.

Governor Hochul still holds the decision to either sign or veto the bill. The outcome will determine how the crypto industry, particularly in New York, will move forward. “Although the bill is quite limited in its scope, it will project an image of New York being ‘anti-bitcoin’ so it will likely limit any expansion of crypto mining in the state and accelerate even more the move to other jurisdictions, like Texas or Oklahoma, where there is strong political support for miners,” explained Blockfusion CEO Alex Martini.

“Even if the governor ends up vetoing this, I would imagine people are going to be very hesitant to set up more bitcoin mines in New York,” added Blockware Solutions mining analyst Joe Burnett. Environmental groups, on the other hand, believe that the signing of the moratorium would be a significant win for sustainability.

Source: CoinDesk