The New York Assembly enacted legislation to prevent new crypto mining operations from opening in the Empire State that use non-renewable energy sources.

Assembly Bill A7389C, introduced by Democrat Anna Kelles, would put a two-year prohibition on new crypto mining companies that employ carbon-based electricity. A companion measure is now being debated in the state Senate.

On Monday, an assembly committee agreed to forward the measure to the whole legislative body for a vote. The crypto sector was outspoken in its opposition to the measure, arguing that it may lead to miners moving, affecting jobs or the United States’ geopolitical interests.

However, supporters of the bill pointed out that existing facilities, as well as any facilities that use renewable resources, would be unaffected by the legislation. The measure states that the New York Department of Energy shall not grant or issue a new permit… for an electric generating facility that utilizes a carbon-based fuel and supplies, in whole or in part, behind-the-meter electric energy used or utilized by cryptocurrency mining operations that employ proof-of-work authentication techniques to authenticate blockchain transactions.

Another clause would prohibit the renewal of current permits for similar facilities if the renewal applicant intends to expand their facility. The measure also requires the state to develop a general environmental impact assessment that assesses PoW mining and mining facilities in the state.

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