Zenith Energy’s contentious proposal is approved in Portland, opening the door for a state permit.
Zenith Energy’s contentious land-use certificate was authorized by the city of Portland, marking a significant milestone in the fuel company’s ongoing operations along the Willamette River.
Monday morning’s approval comes in spite of an 11th-hour motion that two council members filed on Friday night in an attempt to exert pressure on the city’s administrative staff to postpone Zenith’s approval.
Zenith had been given until Tuesday by the Oregon Department of Environmental Quality to get a revised land-use compatibility statement from the city. To continue operating in the city, the corporation needs the consent to apply for a new state air quality permit.
The new City Council is under pressure from certain neighbors and environmental groups to take charge of the Zenith approval process. The decision should be completely administrative, according to city staff, much like the 150 other land-use compatibility statements the city analyzes annually on average. Since Zenith’s operations are a clearly permitted use in the city, they had stated that they would provide approval.
According to a statement from city administrator Michael Jordan, the City of Portland has an obligation to maintain its land use procedures in good faith and with due process for all parties.
It’s unknown if activists will try to overturn the city’s decision in court or how soon state regulators would accept Zenith’s air permit.
According to city officials, Zenith’s presence in Portland is essential to meeting the city’s goals for reducing greenhouse gas emissions.
Eleven businesses have fuel terminals at the Critical Energy Infrastructure Hub on the Willamette, including Zenith, a Houston-based company. In addition to offloading and storing crude oil at the location in Northwest Portland, it has committed to making the complete switch to renewable fuels by 2027 and stocks renewable fuels such biodiesel, renewable diesel, and sustainable aviation fuel.
It is the only enterprise at the hub that has been the focus of worries about fires, fuel spills, and earthquakes. In addition to the fact that it is up for state approval, the reason for this is probably resentment for its infractions, which include months of building activity without a permit and breaking local code by influencing Portland officials to approve the land-use paperwork.
Despite the resolution’s pending status, the councilors who submitted the resolution expressed their disappointment at the city staff’s prompt acceptance. The resolution requested an investigation into whether the staff intentionally misrepresented Zenith and another into whether Zenith had broken its own franchise agreement, in addition to postponing Zenith’s approval.
Councilor Mitch Green told The Oregonian/OregonLive, “I’m disappointed to learn that the city has proceeded in issuing the LUCS while we have this resolution in process to address substantive questions about whether Zenith or city staff have violated the public trust.”
The city is dedicated to investigating Zenith’s possible infractions more thoroughly, according to Donnie Oliveira, temporary deputy city administrator for community and economic development.
According to Oliveira, who spoke to The Oregonian/OregonLive, “The Mayor and I are fully committed to delivering the franchise investigation as requested and supporting further policy discussions about the future of the CEI Hub.”
Environmental activists criticized the city’s approval, arguing that it was a continuation of the backroom agreement the city had made with Zenith three years prior and that it failed to consider the public’s opposition of Zenith.
The choice made today is a total embarrassment. Dineen Crowe, a campaign manager with the Portland-based climate group 350PDX, said that city employees should feel embarrassed of themselves for once again banding together and supporting a fossil fuel firm situated in Texas over the concerns and opinions of local Portlanders.
In 2021, Zenith’s land-use certificate was initially rejected by the city. Zenith filed an appeal with the Oregon Supreme Court after the city vehemently defended the denial in court when Zenith challenged the decision.
While Zenith’s appeal was still ongoing in 2022, the city abruptly changed its mind and granted Zenith approval, allowing the firm to store crude oil for an additional five years without requiring the corporation to switch entirely to renewable energies by 2027. Three days later, a lower court decision that had supported the city’s right to reject the land-use credential was rejected by the Oregon Supreme Court.
Since then, groups representing the environment, labor, and community have encouraged the city to reevaluate Zenith’s approval, pointing out a number of errors and accusing public authorities of breaking their own regulations.
The state Department of Environmental Quality requested in December that Zenith obtain a fresh land-use compatibility statement from the city by February 4. Following an unexpected check at the pier, the EPA additionally penalized Zenith $372,600 for using a leased dock close to its terminal without authorization. Regulators stated that Zenith’s application was inspected, fined, and scrutinized following a number of community inquiries that the agency was unable to respond to.
The Oregonian/OregonLive’s study of Zenith’s recent application for an air quality permit revealed that, if granted, the permit may allow Zenith to expand in Portland and was unlikely to result in significant emission reductions.
The city’s Zenith clearance was received on Monday, according to environmental regulators, who said they will notify the public of the following steps, including the date of a hearing and another public comment session.
According to agency spokesperson Michael Loch, DEQ is checking the LUCS to make sure it is comprehensive and will confirm that decision in the upcoming weeks.
Gosia Wozniacka discusses a variety of environmental topics, including climate change, environmental justice, and the switch to sustainable energy. You may contact her at 971-421-3154 or [email protected].
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