New crypto mining companies that use a carbon-based energy source will face a two-year moratorium under the bill. Existing facilities, as well as those that use renewable energy sources, are unaffected.
The New York Assembly passed a bill to block new crypto mining facilities using non-renewable energy sources from setting up shop in the Empire state.
Assembly bill A7389C, sponsored by Democrat Anna Kelles, will impose a two-year moratorium on new crypto mining firms that use a carbon-based energy source. A corresponding bill is working its way through the state Senate.
An assembly committee had voted on Monday to advance the bill to a full vote of the legislative body.
The crypto industry mounted a fierce opposition to the bill, warning it might lead to miners relocating, impacting jobs or the U.S.’s “geopolitical interests.”
However, advocates of the bill noted that existing facilities would remain unaffected by the bill, as well as any facilities that tap renewable resources. The bill itself specifies that the New York Department of Energy “shall not approve a new application for or issue a new permit … for an electric generating facility that uses a carbon-based fuel and that provides, in whole or in part, behind-the-meter electric energy consumed or utilized by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions.”
Another provision would ban renewals for existing permits for similar facilities if the renewal applicant seeks to grow their facility.
The bill also calls for the state to create a “generic environmental impact statement” that evaluates PoW mining and mining facilities in the state.