Portland Approves New Pipelines for Zenith Energy’s Renewable Fuels

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January 10, 2024

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by Gosia Wozniacka (The Oregonian/OregonLive) The city of Portland has approved a request by Zenith Energy to build three new pipelines at the Northwest Portland fossil fuel terminals on the Willamette River.

The Texas-based company says it will use the 12-inch pipelines strictly to transport renewable fuels, including renewable diesel, biodiesel and sustainable aviation fuel, which are typically produced from vegetable oils, greases, animal fats or other waste products.

The pipelines are part of the company’s plan to phase out crude oil storage by October 2027 under an agreement with the city, said Grady Reamer, Zenith’s chief commercial officer.

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Zenith is one of 11 fossil fuel terminals along the river, where it offloads and stores fuels at its site before transferring them to ships bound for refineries, local markets and other destinations along the West Coast.

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The pipeline approval comes four years after Portland rejected a similar Zenith proposal.

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City officials turned down that request because Zenith acknowledged the new pipelines would be physically capable of transporting fossil fuels and a 2015 city policy opposes the expansion of fossil fuel infrastructure in Portland.

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Two years later, the city sought to block Zenith’s operations by denying it the land-use credential it needed to renew its air quality permit with Oregon’s Department of Environmental Quality. A court battle ensued. But last October, the city reversed course and Portland leaders gave Zenith a controversial stamp of approval for five more years of crude oil storage after the company promised it would then transition to all renewable fuels.

The city said Zenith’s eventual transition meets Portland’s climate and environmental goals, including its focus on cleaner biodiesel and renewable diesel.

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A portion of the pipes will be buried underground. The pipelines won’t cross any neighborhoods.

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Environmentalists and local activists said construction of the new pipelines could indirectly increase the risks of explosions, fires and spills associated with fossil fuels’ transport and the potential for a massive spill in case of a large earthquake.

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The company also pointed to two seismic risk assessment reports commissioned by Zenith in 2020 and 2022, which concluded that several of Zenith’s tanks did not pose an earthquake risk. The company’s contractor is currently studying the rest of the tanks, the company said.

The green light for the pipeline project comes as Zenith is awaiting the approval of a new air permit from the Oregon Department of Environmental Quality. Environmentalists and Multnomah County commissioners have asked the agency to deny that permit.

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The pipeline approval decision can be appealed to the city by Jan. 16. READ MORE

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Statement on greenway review for Zenith Energy Terminal Holdings (City of Portland)
Multnomah County Commissioners oppose air quality permit for Zenith terminal (Multnomah County)

Excerpt from City of Portland: Today (January 2, 2024) the Bureau of Development Services released a decision approving a greenway review for Zenith Energy Terminal Holdings, LLC. -- The greenway review was necessary as Zenith Energy seeks to install three 12-inch diameter pipelines on the existing overwater dock at 5480 NW Front Avenue, on land owned and operated by McCall Oil, and connect them to the existing terminal infrastructure at Zenith-owned property at 5501 NW Front Avenue.

Zenith Energy seeks these alterations to existing development in order to transport renewable fuel products such as biodiesel, renewable diesel, or sustainable aviation fuel.

The portion of the proposed development located at 5480 NW Front Avenue is within the River Industrial Greenway overlay zone. Portland’s Zoning Code (Portland City Code Section 33.440.310.B) requires a greenway review for exterior alterations within a greenway overlay zone.

The administrative decision allows Zenith Energy to:

Install three 12-inch pipelines and associated supports, valves and hose connections on an existing dock adjacent to the Willamette River;
Excavate a temporary drill pit associated with boring and installation of two of the new pipes under NW Front Avenue from the McCall Oil site to the existing Zenith Energy terminal infrastructure at 5501 NW Front Avenue, as well as construct two test stations for cathodic protection of those pipes to prevent corrosion, and
Install landscaping and remove associated nuisance species.

The approval of the greenway review is subject to the following conditions:

A zoning permit is issued for inspection of required landscape plantings and a separate commercial construction permit may be required for development of the proposed infrastructure.
The applicant of the zoning permit must monitor the required landscape plantings for five years to ensure survival and replacement as described in the decision and submit monitoring and maintenance reports to the Land Use Services Division of the Bureau of Development Services for review and approval.

This land use review decision (case file number LU 23-046738 GW) may be appealed to the City Hearings Officer no later than 4:30 p.m. on Tuesday, Jan. 16. Instructions on how to file an appeal are included in the land use review decision. Additional appeal information can be found here.

Download PDF fileType II and IIx Decision Appeal Form291.21 KB

The full land use review decision, including exhibits, can be found here. READ MORE