By Nancy Hiser
Risk Bonding – Holding Tank Farms Accountable
There is uncertainty whether the state or county will be taking the lead to require risk bonding to hold Critical Energy Infrastructure (CEI) Hub liquid fuel facilities financially accountable for damages they cause. This is not simply an “after-the-disaster” measure because facilities’ may be incentivized to act more quickly on mitigation if risk bonds are priced lower for seismic stability improvements that are already completed. One state bill proposes a statewide risk bond study (HB2949) and another expands the ways that monies from the Seismic Risk Mitigation Fund may be used for earthquake preparedness (HB 2151).
Two additional 2025 session bills relate to providing regional disaster fuel storage locations to serve local communities rather than depending on Linnton-based CEI Hub fuel (HB2152), which may be unavailable or interrupted following a catastrophe. A CEI Hub Transition Plan (HB 3450) calls for development of short- to long-term geographic diversification for energy storage.
With the seismic time clock clicking, advocates are calling for organizations and the public to support these bills and to communicate the importance of these measures to their elected state officials.
DEQ Fuel Tank Seismic Stability Program
Seven of the original 14 local oil facilities regulated by DEQ have not yet completed their initial seismic vulnerability assessments (SVAs) which were due in June 2024. Five SVAs are currently being reviewed by DEQ and 2 facilities, PDX Fuel and Vigor Industries, are scheduled to complete their mitigation ahead of schedule, proving it can be done. For those that are stalling, the 10-year timeclock for complete mitigation has not yet started.
Zenith Secures City Approval
Zenith’s Land Use Compatibility Statement (LUCS–”lux”) was approved by a City hearings officer in February despite widespread vocal opposition. Several City Councilors attempted to delay the vote unsuccessfully. Eighteen individuals, many in Linnton, signed on as plaintiffs along with the Northwest Environmental Defense Center (NEDC), 350PDX, and Willamette Riverkeeper in an appeal to the Land Use Board of Appeals (LUBA) to rescind the City’s decision. Four City Councilors sponsored a resolution calling for placing communications into the public record, demanding the Mayor investigate violations of the Zenith franchise agreement, and urging the Auditor to conduct an investigation into the competing statements and arguments heard by Council on January 21st, 2025, by City staff, Zenith, and members of the public. This passed out of committee on 3.10.25 and awaits a full Council vote.