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Houston-based Phillips 66 faces federal charges related to alleged Clean Water Act violations

The Houston-based company is accused of discharging hundreds of thousands of gallons of industrial wastewater containing excessive amounts of oil and grease, the U.S. Department of Justice said. Photo via phillips66.com

Oil company Phillips 66 has been federally indicted in connection with alleged violations of the Clean Water Act in California, authorities said Thursday.

The Houston-based company is accused of discharging hundreds of thousands of gallons of industrial wastewater containing excessive amounts of oil and grease, the U.S. Department of Justice said.

The company allegedly dumped the wastewater from its Carson oil refinery into the Los Angeles County sewer system in 2020 and 2021 and did not report the violations, prosecutors said.

Phillips is charged with two counts of negligently violating the Clean Water Act and four counts of knowingly violating the Clean Water Act. The company faces up to five years of probation on each count and a maximum of $2.4 million in fines.

An arraignment date has not been set.

“Phillips 66 will continue its cooperation with the U.S. Attorney’s office and is prepared to present its case in these matters in court,” a spokesperson said in a statement Thursday. “The company remains committed to operating safely and protecting the health and safety of our employees and the communities where we operate.”

Last month, Phillips announced it would close its Southern California refinery by the end of 2025, citing market concerns. That refinery accounts for about 8% of California’s refining capacity, according to the state’s Energy Commission.

The company also operates a refinery near San Francisco that accounts for about 5% of California’s refining capacity, according to the state Energy Commission.

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A View From HETI

Syzygy Plasmonics has partnered with Volycys on its NovaSAF 1 project, which will convert biogas into sustainable aviation fuel in Uruguay. Photo courtesy of Syzygy

Houston-based Syzygy Plasmonics has announced a partnership with Velocys, another Houston company, on its first-of-its-kind sustainable aviation fuel (SAF) production project in Uruguay.

Velocys was selected to provide Fischer-Tropsch technology for the project. Fischer-Tropsch technology converts synthesis gas into liquid hydrocarbons, which is key for producing synthetic fuels like SAF.

Syzygy estimates that the project, known as NovaSAF 1, will produce over 350,000 gallons of SAF annually. It is backed by Uruguay’s largest dairy and agri-energy operations, Estancias del Lago, with permitting and equipment sourcing ongoing. Syzygy hopes to start operations by 2027.

"This project proves that profitable SAF production doesn't have to wait on future infrastructure," Trevor Best, CEO of Syzygy Plasmonics, said in a news release. "With Velocys, we're bringing in a complete, modular solution that drives down overall production costs and is ready to scale. Uruguay is only the start."

The NovaSAF 1 facility will convert dairy waste and biogas into drop-in jet fuel using renewable electricity and waste gas via its light-driven GHG e-Reforming technology. The facility is expected to produce SAF with at least an 80 percent reduction in carbon intensity compared to Jet A fuel.

Syzygy will use Velocys’ microFTL technology to convert syngas into high-yield jet fuel. Velocys’ microFTL will help maximize fuel output, which will assist in driving down the cost required to produce synthetic fuel.

"We're proud to bring our FT technology into a project that's changing the game," Matthew Viergutz, CEO of Velocys, added in the release. "This is what innovation looks like—fast, flexible, and focused on making SAF production affordable."

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