EPA: Withhold permit for oil-by-rail terminal in Vancouver

VANCOUVER, Wash. (AP) — The U.S. Environmental Protection Agency says a plan to build the nation's largest oil-by-rail terminal does not comply with the federal Clean Water Act, and that a key permit for the project should be withheld until its risks are addressed.

The Columbian newspaper reports that the EPA expressed its concerns in a letter last week to the Army Corps of Engineers, which is considering whether to grant the permit. Tesoro Corp. and Savage Cos. hope to build a terminal that would handle an average of 360,000 barrels of crude oil per day. The oil would arrive by rail and leave by ship.

The EPA's letter raised numerous concerns, including the risk of oil spills.

The National Park Service has also expressed worries. Environmentalists opposed to the project say the letters could be "a game-changer."