EPA Strikes Historic $4.2 Million Settlement Over 2019 Philadelphia Refinery Explosion and Closure

Philadelphia, PA – A significant settlement has been announced by the U.S. Environmental Protection Agency with Philadelphia Energy Solutions regarding the 2019 explosion and fire that led to the closure of a major refinery in Philadelphia. The company has agreed to a $4.2 million settlement but has not accepted liability for the incident. The settlement is notable as it represents the highest amount ever sought under a specific Clean Air Act rule targeting the safe management of hazardous substances.

This settlement follows findings by the EPA that Philadelphia Energy Solutions failed to identify and properly manage risks associated with a hydrofluoric acid alkylation unit. This oversight led to the rupture of a severely corroded pipe elbow, originally installed in 1973, which was found to have degraded to the thickness of a credit card.

The catastrophic event occurred on June 21, 2019, and was a significant incident not just for the company but also for the local community and the region’s economy. At the time, the refinery was the largest such installation on the East Coast, handling up to 335,000 barrels of crude oil each day. The ensuing shutdown marked the end of an era for a facility that had been operational for 150 years.

Before final approval, the settlement will be subject to a 30-day public comment period. This allows stakeholders, including members of the local community, industry experts, and environmental advocates, to express their views or concerns. Following this period, the settlement will seek final approval by the court.

Following the refinery’s closure, the 1,300-acre site underwent a transformation, sold in 2020 and currently being redeveloped into a hub for industrial space and life sciences laboratories. This redevelopment marks a transition towards more diversified and potentially sustainable industrial operations.

In the wake of the explosion, the company filed for bankruptcy, leading to the involvement of the U.S. Bankruptcy Court in Delaware to manage the claims related to the incident and the company’s liabilities. The site itself remains under a stringent cleanup agreement, which is monitored by the EPA along with the Pennsylvania Department of Environmental Protection to ensure compliance with safety and environmental standards.

The incident has underscored the critical importance of stringent safety and maintenance protocols within industrial operations involving hazardous substances. Industry experts have suggested that this case may serve as a poignant reminder and potentially a benchmark for regulatory measures concerning the management and oversight of hazardous materials in refineries across the nation.

The settlement and ongoing site cleanup represent key steps towards addressing the long-term environmental and safety implications of the refinery’s operations and closure. It also raises questions about how future industrial developments can be managed to prevent similar incidents and ensure the safety of both workers and neighboring communities.