Philadelphia, Pennsylvania – The U.S. Environmental Protection Agency has reached a significant $4.2 million settlement with Philadelphia Energy Solutions, the firm that previously owned and operated a prominent East Coast refinery. This agreement follows the closure of the refinery due to an explosion and fire in 2019, marking the end of its 150-year operation as the largest oil refining complex on the East Coast.
The settlement, which will undergo a 30-day public comment period before potential final court approval, represents the largest amount ever sought by the EPA for a refinery under the Clean Air Act rule. This rule mandates that owners and operators must ensure the safe management of regulated and other extremely hazardous substances.
Investigations by the EPA revealed that Philadelphia Energy Solutions had failed to identify and assess the hazards posed by a pipe elbow in a hydrofluoric acid alkylation unit at the refinery. The rupture of this pipe elbow, caused by severe corrosion that had compromised the pipe wall since its installation in 1973, led to the explosion and subsequent fire on June 21, 2019.
Following the incident, the company entered bankruptcy, prompting the EPA to file a claim in U.S. Bankruptcy Court in Delaware. The 1,300-acre site where the refinery once stood was sold in 2020 and is currently undergoing redevelopment into industrial space and life sciences labs, all while remaining subject to a comprehensive cleanup agreement under the oversight of the EPA and the Pennsylvania Department of Environmental Protection.
The closure of the refinery, while marking the end of an era in Philadelphia’s industrial history, signifies a new chapter in the ongoing efforts to ensure environmental safety and sustainability in the region. The settlement reached between the EPA and Philadelphia Energy Solutions serves as a critical step towards holding companies accountable for the safe management of hazardous substances and preventing future incidents that could endanger both workers and the surrounding community.
