The Clean Air Council is challenging a decision by environmental regulators to allow the Philadelphia Energy Solutions refinery to claim credit for a reduction in emissions caused by the closure of Sunoco's Marcus Hook refinery.

The council last week sued to stop the Department of Environmental Protection from considering the Philadelphia refinery and the closed Marcus Hook refinery as one single air-pollution source. The decision would allow the new owners of the Philadelphia refinery to emit more pollution, at least temporarily.

The arrangement to give the Philadelphia refinery credit for the Marcus Hook emissions was one of the cornerstones of a deal to induce the Carlyle Group to take over operating Sunoco's Philadelphia refinery. The Carlyle-Sunoco joint venture, known as Philadelphia Energy Solutions, became official this month.

DEP Reaction

DEP Secretary Mike Krancer issued the following statement late Friday in response to the Clean Air Council's legal action:

"This baseless suit by the so-called "Clean Air Council" stabs in the back 22,000 union and other workers and their families in Southeastern PA. A year ago, we faced the death of this refinery and along with it, tens of thousands of local jobs; a way of life in the Delaware Valley; and a real threat to our nation's security in our own ability to refine oil on shore. Today, through Governor Corbett's leadership and bipartisan work between federal and state officials, as well as labor, management and the private sector investment firm, we found a solution which saved the refinery and protected the environment.

"Ultimately, overall emissions will be lower through, among other things, the use of lower sulfur Bakken Crude oil from North Dakota, which is extracted by horizontal drilling and hydraulic fracturing, and the facility's use of Pennsylvania natural gas for on-site power generation. It is shameful that this out-of-touch, extreme organization would for no reason jeopardize the livelihoods and way of life of so many people and also jeopardize America's ability to refine oil on our own shores."

Steelworkers

United Steelworkers International President Leo W. Gerard offered the following statement in response to a suit filed by the Clean Air Council:

"While we value the work of the Clean Air Council, and have long shared its goal of a cleaner, healthier environment, we respectfully disagree with its actions in this case.

"The compromise that allowed the Philadelphia refinery to be sold was a positive outcome after months of hard work by USW members, local, state and national leaders, and environmental officials. This agreement will mean nearly 1,000 good-paying jobs at the plant, as well as thousands more jobs created or saved in the community and along the supply chain.

"At a time when unemployment and other economic hardships are still a reality for so many families, we believe it is in the best interests of everyone involved to allow this agreement to go forward.

"In addition, this arrangement will, over the long term, mean cleaner overall emissions and cleaner air through the use of lower-sulfur crude oil and the use of natural gas for power generation."

PA Coal Association

The Pennsylvania Coal Alliance joined the United Steelworkers in condemning a Philadelphia Clean Air Council challenge to the joint public-private effort to save nearly 1,000 jobs at the former Sunoco Philadelphia refinery.

"We're compelled to speak out in defense of a common sense policy to preserve and increase domestic energy production," said John Pippy, Coal Alliance CEO.  "We in the coal industry saw the cooperative public-private efforts to save the Sunoco plant and hundreds of well-paying jobs as a positive sign that regulators at the local, state and federal level could work cooperatively with industry to reduce pollution while increasing domestic production."

Pippy called the Clean Air Council intervention effort "misguided and ultimately harmful to workers and consumers."

10/8/2012