Zenith Energy, a recurring flash point in environmental efforts to better regulate the Critical Energy Infrastructure Hub in industrial Northwest Portland, has been sold. The sale is taking place as the City of Portland is moving forward with new rules and policies governing the Critical Energy Infrastructure Hub where it is located.
Critics do not believe the proposed rules go far enough or fast enough. The Portland Planning Commission will hold work sessions on them on Jan. 20 and Feb. 10. The City Council is expected to consider them this coming Spring.
Photo from Columbia Riverkeeper.
The Houston-based Zenith is one of 11 companies with fuel terminals along the west bank of the Willamette River between industrial Northwest Portland and Linnton, where they are vulnerable to such threats as wildfires, landslides, and the Cascadia Subduction Zone earthquake predicted to eventually strike the region. It is the only one currently storing crude oil, which has provoked repeated protests from environmental groups and activists.
As first reported by The Oregonian on Dec. 16, Zenith is being purchased by I Squared Capital, an international firm specializing in infrastructure investments. It manages $50 billion in assets in over 70 countries, including natural gas companies, solar, wind and battery storage facilities and fiber-optic networks. The price was not disclosed.
In October, the Oregon’s Department of Environmental Quality approved Zenith’s new air quality permit, securing its continued operations on the river despite the ongoing opposition. Under the permit, Zenith is required to fully transition to renewables within two years. I Squared Capital said they will comply with the requirement, although renewable fuels are also toxic and flammable.
Environmental groups have also challenged the city’s earlier land-use approval for Zenith before the Oregon Land Use Board of Appeals. LUBA initially found the approval was a routine administrative action beyond its review, but in November, the Oregon Court of Appeals overturned that finding and remanded the decision back to the board.
The sale was reported as the city is moving forward with its Critical Energy Infrastructure Hub Project, which is intended to strengthen safety standards, tighten zoning requirements, and reduce the fuel stored there by 20% by 2036. The Planning Commission, which is managing the project, held a hearing on the proposal to reduce the possibility of a toxic disaster along the six-mile stretch of the river that includes 630 fuel tanks run numerous energy companies, primarily on land between the river and Highway 30 from Northwest Kittridge Avenue to Northwest 113th Avenue.
More than 90% of Oregon’s fuel supply travels through the hub.
Environmental activists, tribal representatives, and neighborhood groups said the proposal is too slow and limited. They called for the drawdown to start immediately and increase as fuel use falls statewide. The risks are otherwise too great, they argued.
“They are environmental, they are equity, they are fire, they are floods. It just goes on and on. And we’ve got 300 million gallons of fuel. Do you know what that would look like if that went to the biggest disaster in American history?” KOIN-TV quoted Nancy Hiser, a Linnton Neighborhood resident who can see the tanks from her home, as saying.
The Port of Portland said the draft plan underestimates jet fuel demand for Portland International Airport, which could drive up costs.
“The port respectfully asks that you provide an exception for aviation fuel from the proposed drawdown requirement as well as restrictions on storage capacity and transloading,” KOIN-TV reported Regional Affairs Manager Daniel Eisenbeis as saying.
The Planning Commission will accept written testimony prior to the second work session from Jan. 13 to Jan. 23. After considering public testimony, the planning commission will propose recommended changes to the City Council. Additional testimony will be accepted during the council process.
More information on the Critical Energy Infrastructure Hub Project can be found here.