Earthjustice, a non-profit environmental law organization, filed a lawsuit in Albany County Superior Court in New York State. The lawsuit states that PSC approved the transfer of ownership of the use of the New York 55 MW power plant to cryptocurrency mining company Digihost International.
The plaintiffs allege that the regulator violated the Climate Leadership and Community Protection Act (CLCPA) by allowing the company to mine cryptocurrencies based on the Proof-of-Work (PoW) algorithm.
Fortistar North Tonawanda only operates 10 to 74 days a year, court documents show, releasing relatively small amounts of carbon dioxide and other pollutants into the air.. However, with the approval of the PSC, Digihost will be able to operate 24/7 throughout the year, which will increase New York's total greenhouse gas emissions by 3,500%.
“PSC is failing in its duty as a regulator to protect public health and comply with the requirements of climate laws,” Earthjustice organizers said in a complaint.
Recall that in March last year, the Committee for Environmental Protection in New York State approved a bill on a two-year ban on cryptocurrency mining on the PoW algorithm.. However, New York City Mayor Eric Adams believes the bill will hurt the state's economy.