By Brian Hoop
Both the City of Portland and Oregon Department of Environmental Quality denied permits late August that were essential to Zenith Energy’s plans for future development at their Northwest Portland oil terminal. The Linnton Neighborhood Association has been active in a broad-based coalition of environmental groups opposing Zenith’s expansion project.
First, the Portland Bureau of Development Services denied a land use compatibility statement (LUCS) on August 27, which Zenith needed to renew its 5-year air quality permit with the Oregon DEQ. A few days later on September 1, the DEQ confirmed they would not renew the air quality permit since they would have required the City’s approval of the LUCS.
The Texas-based company receives crude oil shipped via rail cars to their 42-acre Portland terminal where it is stored in large tanks along NW St. Helens Rd. just North of Kittridge Bridge. From there it is sent through pipes to outgoing ships on the Willamette River. The company claimed the expanded transloading and shipping was for renewable fuels. The City factored in the shipping of fossil fuels in their decision.
Zenith quickly appealed the City’s decision sending the issue to the Oregon Land Use Board of Appeals. “We are confident that our operations are compliant with current zoning codes and the city’s comprehensive plan,” said W. Grady Reamer, vice president of Zenith’s western U.S. operations, in a media statement.
The City’s LUCS determined Zenith’s plans to expand their operation were not consistent with the City’s comprehensive plans and land use regulations. Zenith claims they were only modernizing their facility even though they had announced a nearly three-fold increase in the amount of renewable diesel processed at the terminal.
Environmental groups believe denial of the permits will lead to the company ceasing operations at the site. Zenith needed to renew the operating permits it inherited in 2017 from the previous owner, an asphalt company. Since then, it was operating under an expired air quality permit.
The issue is also clouded by how you interpret the City’s 2019 ban on the expansion of new fossil fuel infrastructure. Zenith says their air quality permit is not subject to the City’s ban since it was submitted before it went into effect.
Columbia Riverkeeper’s legal and program director Lauren Goldberg declared victory saying, “The rules have changed. It’s not 1990 anymore, it’s not 2000. It’s 2021 and this is not happening anymore,” she said.