Cryptocurrency mining moratorium stalls in New York State Senate

ALBANY, N.Y. — A first in the nation effort to impose a moratorium on cryptocurrency mining at fossil fuel plants in New York is not expected to advance in this session after fierce pushback from the industry.

Sen. Kevin Parker (D-Brooklyn), who chairs the energy committee and sponsored the measure, said the lack of action will undermine progress on the Climate Leadership and Community Protection Act, the state’s landmark climate law that requires steep emissions reductions over the next decade.

Upstate New York has increasingly become a burgeoning location for cryptocurrency mining due to its fairly cheap energy and shuttered power plants with unused electric infrastructure. But the growth has also fueled protests from some residents and environmental groups about the local impact on pollution.

“The New York state Senate has abdicated its responsibility to address climate change or attempt to meet the goals of the CLCPA,” Parker told POLITICO. “The lack of courage on the cryptocurrency moratorium is especially disappointing because it’s a resource that’s being exploited by people that care nothing for our state.”

Why it matters: The two-year cryptocurrency mining moratorium","link":{"target":"NEW","attributes":[],"url":"https://subscriber.politicopro.com/article/2022/05/cryptocurrency-mining-moratorium-advocates-push-for-senate-passage-00031058?source=email","_id":"00000181-216b-d243-a1c9-297b44fb0000","_type":"33ac701a-72c1-316a-a3a5-13918cf384df"},"_id":"00000181-216b-d243-a1c9-297b44fb0001","_type":"02ec1f82-5e56-3b8c-af6e-6fc7c8772266"}">two-year cryptocurrency mining moratorium was passed by the Assembly earlier this session and is narrowly targeted at proof-of-work mining that utilizes behind-the-meter electricity from fossil fuel plants. It exempts operations that have already secured or applied for new or renewed air permits and the bulk of facilities in New York that rely on power from the electric grid.

It would have been the first such ban in the U.S. and also required a study of the industry and its environmental impacts. The cryptocurrency industry and business groups pushed back hard on the measure, arguing it would have a chilling effect and misrepresenting it as a wholesale ban on mining digital currencies.

Details: Parker had previously expressed confidence in the support for the measure, especially since the Senate passed a more aggressive moratorium last year. Officials familiar with the discussions said while there are enough votes to pass the bill, leadership decided not to bring it to a vote.

Some senators with cryptocurrency mining operations in their districts have opposed the moratorium. Sen. Todd Kaminsky (D-Nassau County), who chairs the environmental conservation committee, has also expressed concerns about the message it sends to the industry.

Sen. Jeremy Cooney (D-Rochester), has opposed the moratorium and instead backed bills to study the impacts of the industry. Foundry is a cryptocurrency company based in his district that has lobbied aggressively against the moratorium.

Cooney said a moratorium could be a precursor to a ban and that more information is needed about the environmental and climate impacts of the industry before that step is taken.

"We don't want to send a message that we're closed off," he said.

Parker said he’s not gotten a satisfactory explanation as to why the bill isn’t being brought to the floor for a vote.

He said failing to pass the moratorium poses the risk that the industry will refire and ramp up fossil fuel plants across upstate New York, putting the state’s climate goals further out of reach.

Assemblymember Anna Kelles (D-Ithaca), who sponsored the bill in that chamber and has championed the issue alongside environmental advocates and Finger Lakes residents near a gas-powered cryptocurrency mining project, raised similar concerns.

“It passed the Senate last year and it was a much broader bill that passed the Senate last year,” she said. “Literally the only thing that’s different between last year and this year is a phenomenal amount of money coming from the industry into this state.”

Sen. Brad Hoylman (D-Manhattan) said some members of the conference are valuing perceived short-term economic benefits over the long term environmental costs of the industry.

“It’s a myopic view that needs to be called out,” he said. “We’re in a period where people are desperate for solutions to their regional economic needs. … Some of us question the wisdom of bowing and scraping to such a speculative industry.”

What’s next: The session is scheduled to end Thursday.

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By: Marie J. French
Title: Cryptocurrency mining moratorium stalls in New York State Senate
Sourced From: www.politico.com/news/2022/06/01/senate-backs-down-on-cryptocurrency-mining-moratorium-00036388
Published Date: Wed, 01 Jun 2022 16:01:00 EST

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