Wednesday 07 December 2022 ▪ 14:00 ▪
min read – by
In Kentucky, cryptocurrency miners would benefit from reduced electricity rates and tax credits. What significant advantages for large facilities like Elbon Facility and Bitiki-KY! However, keeping this type of contract could affect the Kentuckians’ situation in the future. Sensing a less bright future for the residents, Earthjustice calls for an investigation.
Investigating crypto mining contracts in Kentucky
In his declaration As of December 5, environmental legal group Earthjustice reportedly opened a formal investigation into tax benefits given to two crypto mining giants in Kentucky. In particular, he mentions two mining contracts that provide lower electricity rates for the Elbon Facility and Bitki-KY as part of a tax relief bill for players in the sector.
As a reminder, Elbon Facility is said to have a 250 MW crypto mining facility in Louisa and Bitiki-Ky is said to have received a $250,000 tax credit from the state of Kentucky.
But a question arises: wouldn’t these abuses of crypto-intensive companies lead to higher electricity bills for residents of Kentucky ?
To further clarify the situation, Earthjustice found it only to:
- appeal to the State Public Service Commission (PCS) to initiate a formal investigation;
- formed a coalition of groups including the Kentucky Conservation Committee, the Mountain Association, Kentuckians for the Commonwealth, the Appalachian Citizens Legal Center, the Kentucky Solar Energy Society and the Sierra Club to pressure the Commission.
A link to the FTX scandal?
Several reasons would have led Earthjustice to challenge PCS. Among them are:
- the bankruptcy of a cryptocurrency mining facility in Washington state in 2018 that generated $700,000 in unpaid electricity bills;
- payment issues of a crypto mining company in Arkansas in 2019, due to major improvements;
- the debates of crypto companies like FTX;
- the negative impacts of mining on the environment and public health;
” Our economic development funds should be used for projects that actually benefit local communities – not for risky overseas businesses that choose to profit from our resourcesbut that risk increasing utility bills in communities that are already struggling “, they specify in this statement.
Earthjustice and the Sierra Club have already released new guidance in which they have clarified that bitcoin mining would have emitted approximately 27.4 million tons of CO2 between July 2021 and December 2022. New York State is already on alert, the White House as well it doesn’t do that. consider standing firm in the face of this kind of calling. We will be patiently awaiting the outcome of this investigation.
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