ExoticRidge can't violate crypto ban even with TDEC permit

BULLS GAP — Although ExoticRidge Crypto Company was banned from operating a bitcoin mine and data center in Hawkins County, it still has a pending construction permit from the Tennessee Department of Environment and Conservation. However, even if TDEC grants the permit, ExoticRidge cannot violate the county commission's ban. Jennifer Donnals, the senior communications advisor for TDEC, told the Kingsport Times News that an environmental permit doesn't give the power to break municipal rules. She said TDEC does not regulate crypto facilities. Rather, the permit regards air pollution regulations for two natural gas engines. Over a monthlong period, Hawkins residents sent 13 public notice comments to TDEC's division of air pollution control. The comments asked TDEC to deny ExoticRidge's application — citing energy, health and legal concerns — and for updates on the application's status. Donnals said all comments will be considered. TDEC issues permits based on whether an application meets regulations, which in this case, does not address residents' complaints about noise and other nuisances. TDEC must act on the application by early January, Donnals said. Background In mid-September, ExoticRidge applied to use the engines to power a crypto mine and data center in Bulls Gap. The company, founded in 2022 and based in Lexington, Kentucky, has two locations in its home state. This property would have been its first Tennessee project. After learning of the permit, many Hawkins residents decried ExoticRidge's plans. They were largely concerned with the constant noise a crypto mine and data center emits, particularly in that residential area. ExoticRidge CEO Will Daugherty told the Times News, in September, that it was intended to be a small operation, run off-grid. The natural gas engines would each produce 72 decibels at 50 feet, according to manufacturer Caterpillar. That is louder than a normal conversation but quieter than a vacuum cleaner. The computers at the facility would also produce noise. Dozens of residents attended the Sept. 22 Hawkins County Board of Commissioners meeting to voice their opposition to the crypto mine. Speaker Crystal Jessee, a lawyer in Bulls Gap, said 700 residents had signed a petition against it. That night, the board banned all crypto mines and data centers, using the County Powers Act. This act — which drew criticism in 2023, when the board mentioned it last — grants counties the authority to regulate anything deemed harmful to residents. However, attorneys from the County Technical Assistance Service warned county Mayor Mark DeWitte that banning one type of industry could lead to a legal challenge. While Commissioner Robbie Palmer has said that it covers two industries, Daugherty has said they are the same. If the ban is challenged, DeWitte said the board would explore editing it or looking for another solution.