Portland declined Friday to certify that Zenith Energy’s petroleum terminal in Northwest Portland complies with the city’s land-use rules, creating an obstacle in the company’s efforts to renew a state air quality permit for the site.
Zenith bought the former asphalt refinery for $61 million in 2017. It uses the 48-acre facility to store fuels before transferring them to ships bound for refineries and markets elsewhere.
The Houston-based company has said it plans to make the facility a hub for “renewable diesel.” It agreed in April that it would only store and transfer renewable fuels and non-fuel using the new infrastructure the city permitted it to build at its rail terminal along the Willamette River. And it agreed to submit to regular testing by an outside firm it must hire to ensure it complies with the restrictions on that equipment.
But the city maintains that Zenith’s plans violate Portland zoning code, which bars expansion of large fossil fuel terminals. As recently as 2019, the company allowed millions of gallons of Canadian tar sands crude oil to be transported through and stored in Portland.
Portland Commissioner Dan Ryan, who runs the city’s Bureau of Development Services, which issued Friday’s denial, said the city’s ruling reflects Portland’s commitment to environmental stewardship.
“The decision goes well beyond the confines of one Council office or bureau—we all stand united in affirmation of the City of Portland’s commitment to pursuing a clean energy future, addressing climate change, and reducing our dependence on fossil fuels,” Ryan said.
Zenith said it plans to appeal the city’s ruling.
“We are very disappointed in the city’s decision, which is particularly puzzling as we know our plan to transition to a fully renewable energy facility is very much in line with the values and goals reflected in the City of Portland’s 2035 Comprehensive Plan,” Zenith Vice President W. Grady Reamer said in a statement. He said the company seeks to shift to renewable fuels, not expand the site’s capacity.
The decision on renewing Zenith’s air quality permit rests with Oregon’s Department of Environmental Quality, which will consider a handful of factors, including whether the facility conforms to local land-use policies.
-- Mike Rogoway | mrogoway@oregonian.com | twitter: @rogoway