Port Hamilton Refining and Transportation LLLP v. United States Environmental Protection Agency, No. 23-1094 (3d Cir. 2023)
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Port Hamilton Refinery purchased an existing St. Croix petroleum refinery at a 2021 bankruptcy auction, hoping to resume operations. The Refinery had for decades served as the backbone of St. Croix’s local economy until it ceased operations in 2012. Months later, the EPA notified Port Hamilton that it would need a Prevention of Significant Deterioration (PSD) permit before the Refinery could resume operations.
The PSD program is part of the Clean Air Act (CAA); a facility must not contribute to the violation of applicable air quality standards and must implement the “best available control technology” to limit air pollution, 42 U.S.C. 7475(a), 7479(3). PSD applies to newly constructed stationary sources of air pollution and sources that undergo emissions-altering modifications. Under EPA’s “Reactivation Policy,” an existing facility is “new” if EPA concludes that it had previously been “shut down” and restarted. If the EPA determines that the facility had only been “idled,” it need not obtain a permit.
In 2018, EPA notified the Refinery’s prior owner that it need not obtain a PSD permit because the Refinery had been only “idled” since 2012. In 2022, EPA reversed course. The Third Circuit vacated the EPA decision. The Reactivation Policy, as applied to the Refinery, exceeds EPA’s statutory authority.
The court issued a subsequent related opinion or order on November 22, 2023.
The court issued a subsequent related opinion or order on November 22, 2023.
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