Greenidge Generation Scores Legal Win
On Nov. 14, Greenidge Generation Holdings Inc. marked a major win against New York’s Department of Environmental Conservation, or DEC. The state’s Supreme Court ultimately overturned the DEC’s denial to renew the company’s Title V Air Permit, which will enable Greenidge to keep operating its Dresden, New York, facility.
In the ruling, Judge Vincent Dinolfo blasted the actions of the DEC as “arbitrary and capricious” and said the department did not have any reasonable explanation for its decision. The court found that the DEC had misread the law known as the CLCPA in its attempts to crack down on the operations of Greenidge.
Sources of the Dispute
It started last August when the DEC denied renewing an air permit, citing the facility’s operations incompatible with New York’s climate goals. DEC reasoned that Greenidge’s operations were not in alignment with the emissions reductions required under the CLCPA. Greenidge responded by filing a lawsuit, saying that DEC had exceeded their regulatory power and ignored Greenidge’s adherence to all state and federal regulations.
In May, Greenidge took a hit when an appeal to keep operating was denied. However, the company received a temporary four-month waiver that allowed it to keep operating until September. This ruling from the court now cements its operational status.
Allegations of Political Overreach
Greenidge framed the ruling as a victory of the rule of law against what it termed “politically motivated governmental overreach.” In a statement to the press, the company underscored stringent adherence to environmental laws, coupled with its contributions to the regional economy. These include the creation of high-tech jobs and generation of electricity in the region.
This decision makes it the seventh ruling by the courts in favor of Greenidge with respect to its operations and firmly places this company in a strong position for ongoing regulatory discussions.
Implications for New York’s Climate Goals
The Greenidge case has brought into sharp focus the growing tension between environmental regulations and industrial development. In setting ambitious climate goals under the CLCPA, cases like this may set a precedent as New York navigates ecological priorities and economic growth.
Greenidge said it remains confident in its ability to work cooperatively with the DEC in completing a new air permit responsive to the Court’s decision while continuing to operate under environmental standards.
