AIR EMISSIONS Over the past 10 years, we have focused on significant investments in reducing air emissions. Since 2012, volatile organic compound (VOC) emissions from our Refining business unit have decreased by 34.5%. The air research and development program at the Phillips 66 Research Center collaborates with government agencies, trade organizations and academic institutions to provide data that leads to effective rule-making to improve air quality in the communities where we operate. We also find efficient ways to use resources. For example, in July 2021, we found a way to allow a third party to use excess fuel gas from our Bayway Refinery during turnaround and nonturnaround operations. Instead of burning in process heaters and boilers or flaring the excess, off-gas can now be piped directly to the cogeneration unit. This agreement has numerous benefits, including improved fuel balance, increased fluid catalytic cracking and improved energy performance at the site. Flare Gas Recovery At our Lake Charles Manufacturing Complex in Louisiana, the West Flare Recovery Gas Compressor system for Excel Paralubes was commissioned in 2021. Gas that would have normally been flared was instead recovered and recycled back into the refinery, resulting in less flaring and fewer emissions. Flare Gas Recovery systems minimize flaring during routine operations yet allow flares when needed for emergency safety mitigation purposes. Preventing Loss With Artificial Intelligence When trucks enter our terminals to be filled, we need to know how much product we can put in each truck to prevent overflow. Retained product that was part of a previous delivery, but is still in a truck's tank, is the leading cause of spills at our truck racks. We completed a proof-of-concept test and are testing a permanent installation of a retained product detection system utilizing artificial intelligence and infrared cameras to spot retained product in trucks as they enter our Denver Terminal. Identifying when there’s product already in the tanker before loading is expected to reduce the number of releases and subsequent downtime at the truck rack. The system is targeted for implementation at additional sites in 2022. Retained product detection system DENVER, CO 34.5% decrease in VOC emissions since 2012 35 ENVIRONMENT AND SAFETY 35 Lake Charles Manufacturing Complex WESTLAKE, LA