July 25 (Reuters) – The U.S. Environmental Protection Agency cannot force a long-idled oil refinery in the U.S. Virgin Islands to obtain a costly new pollution permit before restarting operations, a federal appeals court said Tuesday.
A three-judge panel of the 3rd U.S. Circuit Court of Appeals said, opens new tab the agency exceeded its authority under the Clean Air Act last year when it told Port Hamilton Refining and Transportation, the St. Croix refinery’s owner, it needed the permit.
The court said the law “unambiguously limits” the permitting program to “newly constructed or modified facilities.” Since the refinery in question was merely idled, the EPA can’t force the owner to obtain the permit, the court said.
The EPA and Port Hamilton did not immediately respond to requests for comment.
The decision removes a potentially costly hurdle in Port Hamilton’s path as it considered reopening the facility, which was built in the 1960s and idled in 2012 by a previous owner following pollution violations and significant financial losses.
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