EPA v. Phillips 66

Case summary

This case addresses alleged violations of the Clean Air Act (CAA) by Phillips 66, an energy manufacturing and logistics company. Phillips 66’s refining operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day. The violations stem from generation of invalid sulfur credits, and failure to meet recordkeeping, reporting, sampling, and testing requirements under Section 211 of the Clean Air Act (CAA or Act), and the regulations promulgated thereunder at 40 C.F.R. Part 80. The violations were discovered during a 2010 audit and also during a separate evaluation of Phillips’ attest engagement reports. Failure to sample and test gasoline according to proper procedures and requirements, failure to maintain records, and failure to submit required reports to the EPA are considered significant violations because they may result in (1) a reduced ability by the EPA to know whether the fuel at issue met an applicable standard, or would require substantial government resources in order to determine whether the fuel met the applicable standards, (2) increased emissions as a result of fuel being produced that does not meet applicable standards, and (3) a large negative overall impact on the integrity of the fuels program. During settlement negotiations, Phillips retired more than 3.5 billion sulfur credits. As part of the settlement, Phillips will retire an additional 21 billion sulfur credits. This will result in a significant reduction in the sulfur content of gasoline and a significant reduction in pollution from vehicles. Phillips also agreed to pay a civil penalty of $500,000 to the U.S. Treasury.

Defendants (1)

• Phillips 66 CompanyNamed in complaintNamed in settlement

Facilities (1)

• PHILLIPS 66 COMPANY

  3010 BRIARPARK DRIVE, HOUSTON, TX, 77042

  Registry ID: 110055648955

Statutes cited

• CAA 211 — Regulation of Fuels - Motor Vehicle and Engine Fuels

Enforcement conclusions (1)

• Phillips 66entered 2014-02-27

  Primary law: CAA

  Federal penalty: $500,000

Timeline (4 milestones)

• 2014-02-27Final Order Issued
• 2014-02-27Complaint Filed/Proposed Order
• 2014-03-18Enforcement Action Closed
• 2014-03-27Enforcement Action Data Entered