PORTLAND, Ore. — Zenith Energy has run into another setback in a long-running process to renew the air quality permit for operations at its fuel terminal in Northwest Portland, and the company has also been hit with a $372,600 fine from the Oregon Department of Environmental Quality (DEQ).
The fine is due to the company's unauthorized use of docks near its facility that are owned by the companies Chevron and McCall. Zenith has been leasing the docks since 2021, according to DEQ, but only obtained state authorization in June of this year after receiving a warning letter from DEQ. Zenith has 20 days to appeal the penalty.
“Ensuring compliance with all environmental regulations and land use laws is critical to protecting public health and the environment and maintaining trust in the regulatory process,” said Christine Svetkovich, DEQ’s northwest region administrator, in a statement. “DEQ remains committed to holding all permitted facilities accountable to these standards.”
On Friday, the state agency requested that Zenith obtain a new Land Use Compatibility Statement (LUCS) from the city of Portland as part of the process to renew Zenith's air quality permit. The company will need to get the city's approval by Feb. 4, 2025, and the air quality permitting process will be on hold in the meantime.
Zenith's current air quality permit has long since expired, but under DEQ rules, a facility that submits a renewal application on time is allowed to keep operating under the terms of the expired permit while the renewal process is in progress.
DEQ previously ordered Zenith to get a LUCS from Portland in 2021 as part of the renewal process, and the state agency denied Zenith's renewal after the city refused to grant approval — but the city reversed course the following year as part of an agreement that would see Zenith phase out crude oil in the next five years at its terminal.
The air quality permit renewal process continued to play out at DEQ after that, but the agency said Friday that Portland's 2022 LUCS didn't account for the McCall and Chevron operations and will therefore need to be redone. The renewal process is again on hold, DEQ said, but Zenith can still continue operations under its expired permit in the meantime.
Recently, an open letter called for increased public education and development of a coordinated plan to address earthquake vulnerabilities at the city's Critical Energy Infrastructure Hub, which consists of dozens of industrial-scale fuel tanks that hold about 90% of Oregon's gas and diesel supply before distribution — including Zenith's facility.
The hub sits along the Willamette River shoreline that is highly vulnerable to soil liquefaction, creating the potential for a catastrophic spill of about 100-200 million gallons of fuel when the next major earthquake arrives.
Along with calling for the companies that operate the hub to "assume full financial responsibility" for disaster prevention and clean-up efforts in the event of disaster, the letter asked state officials to closely monitor Zenith Energy's switch from crude oil to renewable fuels.
