A milestone environmental measure designed to tap the brakes on the spread of cryptocurrency mining operations burning fossil fuels in New York has passed the state legislature.

The closely watched bill approved early Friday by the state Senate would establish a two-year moratorium on new and renewed air permits for fossil fuel power plants used for energy-intensive “proof-of-work” cryptomining.

Proof-of-work is the blockchain-based algorithm used by bitcoin and some other cryptocurrencies.

The bill, which supporters say is the first of its kind, now goes to Democratic Gov. Kathy Hochul for consideration. The governor has said she wants to make sure any legislation balances economic and environmental concerns.

Environmentalists who lobbied for the bill said natural gas-burning power plants being used for cryptomining operations threaten the state’s ability to meet its long-term climate goals.

Supporters of the cryptocurrency industry said the measure would crimp economic development in New York. The Blockchain Association, an industry group, said it would simply prompt mining operations to move to other states.

Cryptocurrency mining requires specialized computers that consume huge amounts of energy.

One study calculated that as of November 2018, bitcoin’s annual electricity consumption was comparable to Hong Kong’s in 2019, according to the U.S. Energy Information Administration.

Some miners are looking for ways to reduce their reliance on fossil fuels to produce the necessary electricity.

A coalition of environmental groups has separately been urging the Hochul administration to deny the air permit renewal for Greenidge Generation in the Finger Lakes, which also produces power for the state's electricity grid. A decision could come at the end of the month.

This measure, if signed into law, would not affect pending applications like the one from Greenidge.

The measure also would require the state Department of Environmental Conservation to perform an environmental impact assessment on how cryptomining affect the state’s ability to meet its climate goals.

Additional reporting by The Associated Press.

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GHENT, KY — Construction noise echoes across the once-peaceful hills surrounding the Ghent Generating Station as crews move millions of cubic yards of coal ash on the Kentucky Utilities property near the Ohio River.

Jessica Rowles, 24, a married mother of a 2-year-old son, lives on one of those hills in Gallatin County, about 50 miles southwest of Cincinnati.

Lot Tan

"There can't possibly be anything good that comes from living that close to an ash pond," said Rowles as she stood at the end of her driveway overlooking KU's property. "I worry about it. I really do."

A 2019 report by the Environmental Integrity Project named the Ghent Generating Station one of the "ten worst contaminated" coal ash sites in the United States.

The EIP report said the groundwater monitoring wells at the Ghent power plant had lithium levels up to 154 times the amount considered safe.

It was one of the highest lithium levels documented at 265 coal power plant sites identified in the report.

Lithium, which is used to treat depression, has been linked to kidney and neurological damage, according to the United States Environmental Protection Agency.

"It's nasty stuff," said Abel Russ, one of the principal researchers and writers of the 2019 EIP report. "It's something that comes up with coal ash a lot."

The William H. Zimmer Power Plant in Clermont County also has groundwater with unsafe lithium levels, according to the plant's 2020 groundwater monitoring report.

But lithium isn't regulated in drinking water, which means local water districts don't test for it.

That includes water districts in communities next to massive coal ash containment areas with documented unsafe lithium levels.

"I won't drink it," said Rowles, who gets her water from Carroll County Water District in Ghent.

Lot Tan

CCWD's water is "safe" and meets national drinking water standards, according to District Manager Obe Cox.

"Based on current information, we believe that we do not have an issue," Cox wrote in an email response to questions from the WCPO 9 I-Team.

In March, the EPA published proposed rules regulating lithium in public water systems.

EPA wants sample testing for these contaminants to begin in 2023-2025.

The WCPO 9 I-Team wanted to know more about the potential harm posed by unsafe levels of lithium in groundwater and what's being done to address it, particularly in Ghent, which is so close to hundreds of acres of coal ash on KU's property.

Our investigation Closed and Undisclosed has examined the impact of coal ash, those responsible for it, and how it's being cleaned up and contained primarly at closed coal-fired power plants and the sites scheduled to shut down within the next decade.

The I-Team has also reported extensively on the effect of the power plant closures on residents, the environment and the economy.

But the Ghent Generating Station isn't planning to shut down.

In fact, it appears to be thriving.

And that, along with KU's assurances that the utility has everything under control, is enough to satisfy some public officials.

"I personally have confidence in the people at that plant to do the right thing," Carroll County Judge Executive Harold "Shorty" Tomlinson said. "I can't say anything bad about them."

Terry Helmer

Tomlinson said he's not concerned about what national environmental groups think of the risks associated with coal ash on KU's property.

"If everybody would take care of their own part of the country the way they see fit, I think we'd probably be better off," Tomlinson said.

The biggest problems near Ghent are road conditions and traffic, not coal ash, according to Tomlinson.

Rowles said many people in the community support KU and don't appreciate the coal ash problem because they can't see how it's impacting them.

"I usually don't hear anything about it," Rowles said.

In February, the United States Geological Survey released findings of a new study of lithium in groundwater.

"About 45% of public-supply wells and about 37% of U.S. domestic supply wells have concentrations of lithium that could present a potential human-health risk," according to the USGS report.

The data came from National Water-Quality Assessment projects taken in more than 3,000 untreated groundwater wells from 1991-2018, according to the USGS website.

The USGS map of the areas included in the report shows no samples from Ghent or other communities near coal-fired power plants within a one-hour drive of Cincinnati.

"Because of the variability of lithium concentrations from well to well, I can't speculate on the concentrations in that area, wrote USGS Groundwater Status and Trends Coordinator Bruce Lindsey in an email response to the I-Team's questions about the report. "We did evaluate potential sources of lithium, but only for large, national data sets."

Lindsey said the study didn't consider if coal ash in some communities contributed to high lithium levels detected in groundwater.

Threat to drinking water?

In the early 2000s, residents in Town of Pines, Indiana, complained about the "bad taste" of their drinking water, according to EPA's 2016 Record of Decision report on the case.

EPA tests detected unsafe levels of arsenic, boron and molybdenum in private wells used for drinking water in the community.

EPA

The EPA blamed the contamination on a leeching coal ash landfill and coal ash spread throughout the community, according to the 2016 report.

EPA classified Town of Pines as an "Alternative Superfund Site."

Residents received bottled water until they could get municipal water piped into their homes.

In 2015, after extensive cleanup and monitoring, EPA said the wells were no longer contaminated.

Town of Pines is one of 40 "proven damage" cases of coal ash contaminating public water wells, rivers, lakes and other environmental damage, according to a 2014 EPA report.

KU has downplayed the risk posed by contaminated groundwater on the company's property near Ghent.

"No groundwater in the vicinity of any of our power plants is used for -- or considered a threat to -- any drinking water supplies," wrote LGE/KU's Vice-President of Communications and Corporate Responsibility Chris Whelan in an email response to the I-Team's questions.

But national environmental groups insist that contaminated groundwater at the Ghent Generating station is a potential threat to drinking water.

Sky 9, Michael Benedic

"I think it's similar to other sites, but worse," Russ said.

Russ said he bases his opinion on public reports utilities are required to post online for most coal ash sites.

The 2019 EIP report on coal ash used those public reports to determine the level of contamination at plants around the country.

At KU's Ghent plant, initial test samples from a groundwater monitoring well showed "super high" lithium levels, according to Russ.

That extraordinarily high lithium level helped place Ghent on the 10 worst contaminated list.

Since then, some of the highest levels seen initially at Ghent and other plants have dropped dramatically in some wells.

Zoom interview screenshot

"They were accurate readings when they did it," Russ said.

Some utilities criticized the EIP report for "cherry-picking" extremely high early test results from new monitoring wells that didn't accurate reflect the level of contamination at current and former coal-fired power plants.

"EIP cited many of the outliers that were eliminated from the Ghent data-set prior to publication of the EIP report," Whelan wrote. "The EIP study also does not acknowledge progress and reporting associated with the company’s ongoing CCR Rule compliance plans, including those at Ghent Station."

Russ acknowledged that the higher initial levels of contamination are somewhat of a "mystery" that may partly be the result of more suspended sediment in well water following the drilling of those monitoring wells.

"It's still very contaminated and I think it would be in the top 10 or 20" in the country, Russ said.

KU's groundwater monitoring reports claim "no adjoining properties are expected to be impacted" by contaminants detected in the wells.

The EIP report said it's "difficult" determining the quality of drinking water in communities close to coal ash sites.

"Most often, neither power companies nor state regulators test private drinking water wells," according to the EIP report.

The Kentucky Energy and Environment Cabinet refused to say if it has ever tested groundwater outside of KU's property to determine if it's contaminated with lithium or other substances found at Ghent Generating Station.

The EPA said one of the benefits of testing for lithium and other unregulated substances is that samples may show the levels are low and are not a concern.

That, according to the EPA, should give communities more confidence that their water is safe to drink.

How is KU dealing with the coal ash?

Environmental groups insist coal ash needs to be removed from power plants and contained in lined landfills that will be less likely to leech contaminants into ground water.

KU considered transporting coal ash to an off-site location, but the utility said that was more expensive than building the landfill and keeping the waste on-site, according to company records filed with the Kentucky Public Service Commission.

KPSC records show KU expected to spend an estimated $341 million just on the first phase of construction for the coal ash landfill.

The landfill can hold up to 51 million cubic yards of material, according to the KPSC records.

Sky 9, Michael Benedic

KU's 2020 groundwater monitoring report claims, "No adjoining properties are expected to be impacted" by contaminated groundwater on the KU site.

But that report also acknowledged that the Ohio River "represents the potential exposure point for impacted groundwater" for ATB-1, a multi-site coal ash containment area next to U.S. Route 42, which runs just south of the river.

"ATB-1 Multi-Unit appears to discharge directly to the Ohio River at a rate that is likely not discernable (sic) upon contact with the comparably large volume of water flowing within the river," according to KU's 2020 groundwater monitoring report.

A second KU coal ash containment site at Ghent, ATB-2, is uphill from ATB-1.

Groundwater from ATB-2 potentially extends north within the valley on KU property, according to the groundwater monitoring report.

KU's report indicates groundwater below the landfill may extend southeast into the valley.

The company said it has closed two coal ash impoundments and is in the process of closing three others.

KU said its coal ash closure plan complies with federal regulations.

"Our operations are protecting the environment and our communities," Whelan wrote.

The Kentucky Energy and Environment Cabinet inspects the Ghent coal ash impoundments and other state sites required to comply with federal regulations, but KEEC spokesman John Mura declined to say whether KU was currently complying with federal coal ash rules.

"As to whether KU is meeting CCR requirements for the Ghent site, the Ghent facility is in the process of meeting regulations that cover coal ash containment ponds and its closure plan meets requirements," Mura wrote in an emailed response to the I-Team's questions.

But Russ insists KU's coal ash closure plan allows some of the waste to remain in groundwater and that it doesn't do enough to protect the environment and potential harm to wildlife and humans.

Buying out neighbors

In the last dozen years, KU spent about $10 million buying approximately 900 acres of privately-owned land surrounding the Ghent Generating Station, according to real estate records reviewed by the I-Team.

The utility refused to comment on the land purchases or why it bought the homes of some neighbors, but not others living next to them.

Most of the residents living within 3 miles of the Ghent Generating Station are low-income, according to the U.S. Census.

That includes Jessica Rowles, her husband and their child.

"I like it out here. I really do. I mean, we've called it home for quite a few years, but the dangers of that with whatever might be there, I worry about it," Rowles said.

Rowles walked to the edge of her property and pointed at several lots purchased by KU.

Lot Tan

"They wanted the space," Rowles said. "They were expanding is what they told us."

She said KU offered $18,000 to buy their land, barely enough to cover what she claimed to owe on the property, according to Rowles.

"We wouldn't be breaking even if we were to sell to them at that offer," Rowles said. "We wouldn't be able to get anywhere else to live, so that just wasn't an option."

KU's Whelan declined to confirm whether the utility made an offer to buy the property.

So for now, Rowles said, she feels stuck on a hill overlooking hundreds of acres of coal ash with no realistic opportunity to leave and find an affordable home near her family in Ghent.

Until then, Rowles said, she'll focus on trying to keep her family healthy and happy.

And keep drinking bottled water.

CINCINNATI — A Detroit-based demolition company is facing fines of $14,475 for the Dec. 9 collapse of the Killen power plant in Adams County, where two men were killed and three people were injured.

The Occupational Safety & Health Administration proposed two separate fines on Jan. 25 and Feb. 2 against Adamo Demolition Company, which is contesting both citations on which the fines are based, according to OSHA records.

Adamo declined to be interviewed, saying OSHA is conducting an ongoing investigation. But it released a statement to address some of WCPO's questions.

"The safety and well-being of our employees is paramount," the statement said. "If any employee ever felt unsafe at a particular job site, we would address that issue immediately and responsibly to make certain their concerns were resolved to their satisfaction."

The WCPO 9 I-Team has been investigating the Killen collapse by talking to current and former Adamo employees and their family members, seeking records from government agencies and researching a 2015 demolition project in which Adamo’s former CEO was fatally injured. Here is a summary of what we learned:

• OSHA’s proposed fines in Adams County are roughly half of what the agency originally proposed for the 2015 incident.
• Two lawsuits alleged the 2015 incident was caused by improper cuts to the metal support structure of a coal-conveyor bridge that collapsed, causing one death and one serious injury. The complaints, which were later settled, alleged a lack of oversight on the project.
• One former Adamo employee told the I-Team the Killen project wasn’t properly supervised. One of the men killed in the collapse told his fiancée that cuts to the Killen support structure were not inspected as required by Adamo’s handbook.

“Adamo denies that its rules and procedures concerning the verification of cuts was not followed,” wrote Christian Hauser, a Troy, Mich. attorney who represents the company. “To the contrary, Adamo utilizes a detailed and comprehensive process regarding structural cuts to the steel in advance of blasting. There was no lack of supervision with respect to any component of this project.”

Inside the Killen plant

Former Adamo employee Labe Griffith did not think the project was well supervised.

“Absolutely not,” Griffith said. One supervisor "wouldn’t even get out of the truck. He’s physically not able. He would stay in the truck and look at things from afar. No, it was not properly supervised.”

The supervisor declined to answer the I-Team's questions, referring our call to the company.

Griffith said he worked as a laborer at the Killen site from September to mid-November, when he was laid off. He said there was a lot of pressure to keep the job on schedule.

"I felt unsafe every day," he said. “I was never so relieved in my life to be laid off from a job.”

Jamie Fitzgerald also had safety concerns about the Killen plant before he perished in the collapse, according to Fitzgerald’s fiancée, Lora Conley.

“No one was inspecting the guys before they made these cuts, like it was supposed to, like it was in their handbook from Adamo,” Conley said. “I do know that because Jamie had made numerous comments about that.”

Zoom interview March 29, 2021

Power plants tough to demolish

Demolition contractors make cuts to weaken the support structure of buildings before using explosives to drop them safely, said Thomas Eagar, a professor of materials engineering at the Massachusetts Institute of Technology. The goal is to make debris fall inward, toward the center of the building site, Eagar said. Power plants are particularly tricky because they have large, high roofs and different kinds of support structures for different parts of the building.

“It’s a controlled explosion, but it’s also a very sophisticated structural engineering problem, where you’ve taken out all of the extra safety beams and columns and have just enough to hold the building up until you set off the charges,” Eagar said. “Unfortunately, there’s many things that can go wrong. That’s why you have to have competent supervision.”

Litigants cited lapses in project oversight in two separate lawsuits sparked by the 2015 collapse of a conveyor bridge at the Muskingum River power plant in Southeastern Ohio. In a 2016 complaint, a Michigan man who worked for Adamo, Ahmed Hussein, alleged he suffered “serious and permanent injuries” at Muskingum River. Hussein's lawsuit said he made cuts to the conveyor bridge “as he had been directed by” the plant’s owner and Dykon Explosive Demolition Corp., an Adamo subcontractor.

In 2017, the widow of John Adamo claimed her husband was killed in the bridge collapse because “Hussein made straight line cuts instead of the vee-shaped cuts typically used to weaken a structure for this type of explosive demolition.” The cuts led to the “premature collapse” of the structure, Carolyn Adamo alleged. She accused Dykon of “failing to properly supervise those, including Mr. Hussein, making the cuts and/or other steps to weaken the structure.”

Dykon answered Hussein’s allegations in 2017 by arguing Adamo’s contracts with the plant’s owner, Muskingum River Development LLC, made Adamo “solely responsible for the safety of their employees” and for “all means and methods of performing the work,” including “the effects of demolition preparations… on the structural integrity of the coal conveyor bridge.”

The cases ended with a 2018 settlement for Hussein and 2019 settlement for Carolyn Adamo.

Adamo violation history

OSHA issued three serious violations and one deemed “other than serious” against Adamo in the Muskingum River collapse. Those citations resulted in a proposed fine of $28,000, which was later reduced to $12,500 in a formal settlement with OSHA. Records indicate 10 people were exposed to hazardous conditions in the incident, which received a “gravity” rating of 10 out of 10. OSHA rates the gravity of violations based on the severity and likelihood of injury or illness due to the alleged violation. It's one of the biggest factors impacting the size of fines.

In the Killen collapse, OSHA has issued one serious and one other-than-serious violation so far, resulting in proposed fines totaling $14,475. The agency wouldn’t explain the reasoning behind the proposed fines or release copies of the citations. Records indicate four people were exposed to hazardous conditions at Killen and the Dec. 9 incident scored a gravity rating of 5 out of a possible `10.

Eagar found it troubling that Adamo had two fatal demolition accidents in five years.

“If you’ve run into problems in the past you should be extra careful in the future,” he said. “It doesn’t sound to me that these people put the controls in place to have a quality program to make sure they wouldn’t have these types of accidents again.”

Conley hopes OSHA’s final report explains what caused the collapse.

“I just want answers," she said. "I want to know why this happened. I want my kids to know that Jamie did everything he was supposed to do and that he wanted out of there.”

Provided, John Fitzgerald

Adamo declined to answer questions about similarities between the Muskingum River collapse and problems at the Killen plant. Its attorney’s statement asked for patience among those looking for answers.

“While we recognize there is a great deal of sorrow in the community due to this accident, it is important that this does not lead to speculation or a disregard for the truth,” Hauser wrote. “Adamo takes this situation very seriously and we are committed to working and cooperating with OSHA as the investigation continues into the events that led to this terrible accident.”