The Executive Committee of the Washington County Democratic Party (WCDP) adopted the following Resolution on Monday, May 12, in opposition to the under-regulation of cryptocurrency mining facilities in Johnson City, TN. In so doing, WCDP is supporting the efforts of neighbors in South Johnson City who are concerned with the establishment of a Bitcoin mining facility by Brightridge on their newly acquired parcel of land in the Buffalo Mountain Industrial Park.
A Resolution in Opposition To Under-regulation of Cryptocurrency Mining Facilities in Johnson City, Tennessee
WHEREAS, industrial‑scale Bitcoin mining operations employ thousands of high‑speed computers that consume vast amounts of electricity and produce continuous, low‑frequency mechanical noise documented at levels exceeding thresholds linked to sleep disruption, stress‑related illness, and wildlife disturbance;
WHEREAS, the residents of Washington County’s New Salem community in Limestone, Tennessee, have endured those very conditions since the Limestone Bitcoin mining operation opened in 2021;
WHEREAS, significant public outcry caused Washington County to sue the bitcoin mining operator, Red Dog Technologies, and its landlord BrightRidge to compel the dismantling of industrial-scale Bitcoin mining operations by March 2026;
WHEREAS, BrightRidge has since purchased land on Innovation Drive in Johnson City, and city officials are advancing zoning amendments that would explicitly permit “data centers and cryptocurrency mines” in I‑2 districts while failing to adapt and reinforce the city’s noise ordinance (City of Johnson City, Tenn. title 11, ch.5 (2021));
WHEREAS, Bitcoin mines generate almost no permanent jobs, frequently employing fewer than 10 total employees with no verifiable community employment impact;
WHEREAS, the Tennessee Valley Authority (TVA) ceased offering economic incentive grants to cryptocurrency mining operations in January 2023, recognizing that such facilities do not generate substantial employment opportunities;
WHEREAS, under Tennessee law, industrial machinery for qualifying data centers is exempt from state and local sales‑and‑use tax, and electricity sold to those facilities is taxed at a preferential rate of one‑and‑one‑half percent (1.5 %), denying Johnson City meaningful revenue;
WHEREAS, peer‑reviewed analyses and local government memoranda show measurable declines in nearby residential property values where crypto‑mining noise is audible, compounding economic harm to homeowners;
WHEREAS, Proof‑of‑Work mining substantially increases regional greenhouse‑gas emissions and strains electric‑grid capacity, shifting costs onto ordinary rate‑payers while undermining community climate goals;
WHEREAS, the current Johnson City proposal contains no requirements for state‑of‑the‑art liquid or geothermal cooling, no binding community revenue‑sharing, and no independent fiscal or environmental impact studies;
WHEREAS, safeguarding public health, fiscal responsibility, and environmental stewardship are core values of the Washington County Democratic Party;
NOW, THEREFORE, BE IT RESOLVED BY THE EXECUTIVE COMMITTEE OF THE WASHINGTON COUNTY DEMOCRATIC PARTY THAT:
I. The Board of Commissioners for the City of Johnson City should reject Ordinance No. 4914-25 and its proposed zoning changes to the I-2 Business Development District.
II. The Board of Commissioners for the City of Johnson City should commission independent environmental and economic impact studies prior to consideration of additional proposals related to Bitcoin mining facilities.
III. The Board of Commissioners should establish explicit, data-driven safeguards regulating cryptocurrency mining operations to protect Johnson City’s residents, environment, and quality of life. Such safeguards must include:
- A statutory maximum decibel threshold measured with a Class 1 meter:
- The greater of 45dB or background, A-weighted Leq(1 hr) measured at parcel boundary.
- -5dB enhancement for any ⅓-octave band that exceeds adjacent bands by ≥ 5 dB.
- A statutory mandate to prevent noise at the source, including:
- Lined silencers on all intake/exhaust louvers, fans, and heat-exchanger fans.
- Prohibition on force-air chip cooling for facilities exceeding 1MW compute capacity.
- An escalating statutory fee structure for violations of these provisions:
- $500/day, doubled daily.
- Explicit power-down authority after 7 days of non-compliance.
- An enhanced minimum setback distance of 3,400 feet from residences, schools, parks, hospitals, and other sensitive community locations.
- An enforceable minimum $10,000 per MW-year revenue sharing agreement or impact fee structure to ensure tangible community benefits insulated from PILOT flexibility.
IV. The Board of Commissioners should actively facilitate meaningful public engagement throughout the consideration and decision-making process to ensure transparency, community input, and broad public support.
Adopted this 12th day of May, 2025.
