CHRISTIANSTED — The U.S. Environmental Protection Agency has warned the new owners of Limetree Bay refinery that they may need to obtain a new “Prevention of Significant Deterioration” permit, and recommended that they not restart operations until a final determination is made.
The EPA sent a letter on March 22 to West Indies Petroleum Limited and Port Hamilton Refining and Transportation, the new owners of the former Limetree Bay refinery on St. Croix, asking for additional information regarding past and future changes to processes and emission units at the refinery.
The information will enable the agency to evaluate this issue further, before making a final determination regarding the need for a PSD permit, according to information from the EPA.
“As EPA continues to obtain additional information to reach a final decision on the need for this particular permit, we remain committed to ensuring that any potential restart of this facility would occur safely and in accordance with environmental laws,” Lisa F. Garcia, EPA regional administrator, said in a statement. “Given the concerning incidents at this facility that previously endangered the health of the people who live and work in surrounding communities, we will carefully review the information we receive and any new plans before determining our next steps in the permitting process.”
The EPA issued an emergency stop work order at the refinery in May 2021, after a series of chemical and oil mist releases that affected neighboring homes and farms and contaminated cisterns used for drinking water.
“In response to these incidents, EPA ordered the refinery to pause all operations until the agency could be assured that this facility can operate safely and in accordance with laws that protect public health,” according to the EPA.
According to the letter, “Because a PSD permit may be required prior to startup of the Refinery operations or of any Refinery unit(s), EPA strongly recommends that you not proceed with any such actions while EPA continues to evaluate PSD applicability. In addition, as EPA has made clear, it is very important to avoid any recurrence of the incidents that took place at the Refinery in the first half of 2021.”
A PSD permit “applies to new major air pollution sources or major modifications at existing sources that result in an increase of certain pollutant emissions (for example, particulate matter, sulfur dioxide, or nitrogen oxide) where the area in which the source is located attains or meets EPA’s national air quality health standards. In its letter, EPA poses a series of questions to the new owners, seeking answers that will help determine whether the refinery needs to obtain a PSD permit.”
The purpose of the permit program is to ensure air quality isn’t degraded by air pollution sources like the refinery, and “PSD permits are complex and specific to a given facility. In general, they require the facility to meet emissions limits that would be achieved by using the best available air pollution control technology and perform an air quality impact analysis, with an opportunity for public review and comment,” according to the EPA. “If such a permit is required for the refinery on St. Croix, it must be obtained prior to startup of that facility.”
In response to questions from The Daily News, the EPA clarified that the agency had first issued a PSD permit to former refinery owner HOVIC, or Hess Oil Virgin Islands Corp., followed by a series of three PSD permits to former refinery owner HOVENSA, the joint partnership between Hess Oil and Petroleos de Venezuela, the state-owned oil company, which were amended over the years and transferred to Limetree Bay in 2018.
The EPA had previously informed West Indies Petroleum that there are numerous requirements that need to be met before the refinery can restart operations, including obtaining one or more Territorial Pollutant Discharge Elimination System permits.
“As EPA receives additional information about the new owners’ plans at the facility, the agency will continue to evaluate what additional requirements, including permitting requirements, may need to be met,” according to the EPA.
For more information, visit epa.gov/vi/refinery-st-croix-us-virgin-islands