Greenidge Generation will pay a $105,000 fine under a settlement reached with the federal Environmental Protection Agency under its Coal Ash (Coal Combustion Residuals) program. This settlement announced Tuesday is the first under the EPA’s National Enforcement and Compliance Initiatives. It commits Greenidge to address groundwater monitoring issues and to ensure the proper closure of a coal ash surface impoundment under the Resource Conservation and Recovery Act. Greenidge has voluntarily agreed to pay the fine but has not admitted to any fault.
According to the EPA, coal ash (CCR) is produced primarily from the burning of coal in coal-fired power plants and is a large industrial waste stream by volume. It can contain harmful levels of contaminants such as mercury, cadmium, arsenic, and cobalt. Before 2015, the management and disposal of coal ash was not regulated at the national level; instead, it was regulated to varying degrees, if at all, by some states under various programs. Historic disposal occurred through placement in unlined surface impoundments and landfills. Without proper containment and management, contaminants from coal ash can pollute waterways, groundwater, drinking water, and the air.
The coal ash pond at Greenidge is a more than 60-year-old remnant of the previous owners’ coal-fired power operations and was used to dispose of coal ash. After purchasing the facility, Greenidge put a permanent end to coal-fired operations by converting the facility to natural gas power, investing more than $100 million to date in its power generation and, later, its data center operations.
The Dresden plant burns natural gas to generate electricity for its bitcoin mining operation and also provides energy to the state’s electricity grid. The EPA alleges that Greenidge did not meet certain requirements under the coal ash program, including its failure to comply with certain groundwater monitoring system requirements, to adequately prepare annual groundwater monitoring and corrective action reports, and to timely prepare initial closure and post-closure plans for its coal ash impoundment.
In a statement last month, Greenidge Generation President Dale Irwin said, “The pond has been a blight on our community since before I was born, and the successful operation we’ve built here is the reason it is being removed. If we didn’t make the investment to build and grow our company in Yates County – despite the objections of some – the coal ash pond from previous ownership would literally just continue to sit there, as there would be no one to fund the cleanup. Greenidge is a part of this region’s future, and we take real pride in working to eliminate this dirty relic of the past.”
The settlement requires Greenidge to assess groundwater contamination from the coal ash impoundment at its facility. Greenidge will conduct groundwater sampling and analysis, evaluate groundwater flow to determine if additional wells are needed and update and implement a closure plan for the coal ash impoundment. Ultimately, if groundwater monitoring reveals contamination above the federal groundwater protection standards, Greenidge will be required by self-implementing regulation to design and implement a corrective action program to address the contamination. Greenidge has said it will remove the coal ash pond over five years under all federal and state standards by excavating the pond and surrounding area and removing the Coal Combustion Residuals caused by the prior owners.
To address the risks from disposal and discharge of coal ash, including leaking of contaminants into groundwater, blowing of contaminants into the air as dust, and the catastrophic failure of coal ash surface impoundments, in April 2015, EPA established national rules for coal ash management and disposal.
Since Greenidge purchased the facility in 2014, the company has never used coal or disposed of Coal Combustion Residuals in the coal ash pond. The removal of the pond posed a challenge for Greenidge, as the facility’s wastewater and stormwater were routed through the pond in accordance with Greenidge’s New York State Pollutant Discharge Elimination System Permit. Greenidge had previously devised a plan with New York State Department of Environmental Conservation to direct wastewater and stormwater away from the coal ash pond and now has completed the construction of the infrastructure to reroute the waters.
“EPA is working to ensure that companies comply with environmental regulations designed to protect public health, our lands, and water resources,” said EPA Region 2 Regional Administrator Lisa F. Garcia. “This settlement requires Greenidge to cease using, and close, its surface impoundment and to monitor groundwater at the facility to protect surrounding communities and determine whether further steps are required.”
