EPA, Phillips 66 settle Clean Air Act violations

The Environmental Protection Agency said refining company Phillips 66 agreed to pay $500,000 and take steps to reduce pollution in gasoline to settle a claim.

The EPA alleged the refining company, which has headquarters in Houston, generated invalid sulfur credits between 2006-12.

Sulfur credits are earned when a refiner produces gasoline that contains less sulfur than mandated by the EPA. Those credits can then be sold to other companies, which use them to offset higher levels of sulfur in their gasoline.

The EPA said Phillips 66 agreed to retire more than 21 billion sulfur credits and pay a $500,000 penalty to settle violations of the Clean Air Act.

"EPA discovered these violations during facility inspections and through a review of company records, which included the results of third-party company audits required by the Clean Air Act," the agency said in a statement Monday.

Phillips operates 15 refineries in the United States that can process a combined 2.2 million barrels of oil per day. There was no statement from the company on the settlement.

[EPA]