State approves Zenith Energy’s air quality permit
The Oregon Department of Environmental Quality has issued Zenith Energy’s air quality permit, allowing the controversial company to continue storing and loading crude oil and renewable fuels at a hub in Northwest Portland. State regulators issued the permit on Thursday after evaluating more than 800 written and 60 verbal comments, many of them opposing the permit. Zenith needed the permit approval to continue operations at the Critical Energy Infrastructure hub on the Willamette River. The Houston-based Zenith’s presence in Portland has attracted fierce backlash in recent years from environmental activists and some city residents concerned with the company’s myriad violations and the potential for fuel spills and explosions in the event of a large earthquake in the region. Zenith is one of 11 fuel companies at the hub.Lisa Ball, an air quality permit manager with DEQ, said the agency issued the permit because it found Zenith was in compliance with state law, had met all applicable rules and regulations and had submitted a complete permit application, including an updated land-use credential issued by the city of Portland. The new permit requires less frequent state inspections and company reporting requirements than Zenith’s previous permit, Ball said, though the department retains the authority to inspect the company as needed or in the case of violations. Ball said the new permit is also more stringent than Zenith’s previous permit because it prohibits crude oil storage and loading starting in October 2027 and includes stricter emission standards. It requires Zenith to reduce by 80% the amount of emitted volatile organic compounds, known as VOCs, a group of air pollutants that can cause irritation to the eyes, nose and throat, damage to the liver, kidney and central nervous system and, in some cases, cause cancer. It also adds PM 2.5 and greenhouse gases – chiefly carbon dioxide – to the company’s regulated pollutants. PM 2.5 are tiny particles that are small enough to penetrate deep into the lungs and even enter the bloodstream. “This permit is more protective of human health and the environment,” Ball said.Environmental groups have disputed that characterization and said their own analysis – submitted as part of the public comments on the permit application – shows Zenith will not meet the emissions limits in the newly granted permit. “DEQ chose to accept Zenith’s mathematical sleight of hand despite expert analysis showing real-world pollution will be much worse,” said Audrey Leonard, an attorney with Columbia Riverkeeper, a Hood River-based environmental group focused on protecting the river. “The public knows better – Zenith’s expansion of so-called renewable fuels will result in more harm to our rivers, air and communities.” A previous analysis of Zenith’s draft air quality permit application by The Oregonian/OregonLive showed the permit, if approved, was not likely to lead to substantial emission reductions because Zenith is currently emitting far below the cap of its previous permit limits. The analysis also found the permit would likely pave the way for Zenith to significantly expand the amount of fuel it stores in Portland because renewable fuels such as renewable diesel or renewable naphta produce less pollution, allowing the company to store more of them without going over the permit limits. Zenith officials praised the permit approval and said the company’s transition to renewable fuel storage would ensure Oregon has the supply it needs to meet its carbon reduction goals. “The infrastructure investments being made during this transition will also ensure our terminal continues to operate at the highest standards of safety. We look forward to supporting regional leaders in creating a lower-carbon future,” Zenith’s chief commercial officer Grady Reamer said in a statement. In the meantime, Portland is still in the midst of an investigation into the potential violations of Zenith Energy’s franchise agreement, including whether Zenith violated the law when it constructed and used new pipes at an additional dock on the river – without reporting it to authorities – to load renewable and fossil fuels. City officials have said the investigation would likely conclude by the end of the year. Also ongoing: a legal challenge over the city’s land-use approval for Zenith, filed by environmental groups with the Oregon Land Use Board of Appeals. Portland officials have had a complex relationship with the company. The city denied Zenith’s land-use credential in 2001 and defended the decision in court before reversing course and approving it with the condition that Zenith transition to renewable fuels and secure a new air permit with more stringent emission limits. In February, despite mounting opposition from local activists, city staff once again approved a land-use credential for Zenith.The approval came after DEQ last year found Zenith had been using the McCall dock and pipes to load and unload fuels without authorization. As part of the sanctions, DEQ officials required Zenith to seek a new land-use approval before continuing its air quality permit process.DEQ officials said they would reevaluate Zenith’s air permit if the legal case or city investigation led to any changes to the status of the land-use approval – such as if the city revoked it or the state land use panel invalidated it.The newly issued air permit is valid for five years. If you purchase a product or register for an account through a link on our site, we may receive compensation. 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The DEQ found Zenith was in compliance with state law, had met all applicable rules and regulations and had submitted a complete permit application, including an updated land-use credential issued by the city of Portland.
The Oregon Department of Environmental Quality has issued Zenith Energy’s air quality permit, allowing the controversial company to continue storing and loading crude oil and renewable fuels at a hub in Northwest Portland.
State regulators issued the permit on Thursday after evaluating more than 800 written and 60 verbal comments, many of them opposing the permit. Zenith needed the permit approval to continue operations at the Critical Energy Infrastructure hub on the Willamette River.
The Houston-based Zenith’s presence in Portland has attracted fierce backlash in recent years from environmental activists and some city residents concerned with the company’s myriad violations and the potential for fuel spills and explosions in the event of a large earthquake in the region. Zenith is one of 11 fuel companies at the hub.
Lisa Ball, an air quality permit manager with DEQ, said the agency issued the permit because it found Zenith was in compliance with state law, had met all applicable rules and regulations and had submitted a complete permit application, including an updated land-use credential issued by the city of Portland.
The new permit requires less frequent state inspections and company reporting requirements than Zenith’s previous permit, Ball said, though the department retains the authority to inspect the company as needed or in the case of violations.
Ball said the new permit is also more stringent than Zenith’s previous permit because it prohibits crude oil storage and loading starting in October 2027 and includes stricter emission standards.
It requires Zenith to reduce by 80% the amount of emitted volatile organic compounds, known as VOCs, a group of air pollutants that can cause irritation to the eyes, nose and throat, damage to the liver, kidney and central nervous system and, in some cases, cause cancer.
It also adds PM 2.5 and greenhouse gases – chiefly carbon dioxide – to the company’s regulated pollutants. PM 2.5 are tiny particles that are small enough to penetrate deep into the lungs and even enter the bloodstream.
“This permit is more protective of human health and the environment,” Ball said.
Environmental groups have disputed that characterization and said their own analysis – submitted as part of the public comments on the permit application – shows Zenith will not meet the emissions limits in the newly granted permit.
“DEQ chose to accept Zenith’s mathematical sleight of hand despite expert analysis showing real-world pollution will be much worse,” said Audrey Leonard, an attorney with Columbia Riverkeeper, a Hood River-based environmental group focused on protecting the river. “The public knows better – Zenith’s expansion of so-called renewable fuels will result in more harm to our rivers, air and communities.”
A previous analysis of Zenith’s draft air quality permit application by The Oregonian/OregonLive showed the permit, if approved, was not likely to lead to substantial emission reductions because Zenith is currently emitting far below the cap of its previous permit limits.
The analysis also found the permit would likely pave the way for Zenith to significantly expand the amount of fuel it stores in Portland because renewable fuels such as renewable diesel or renewable naphta produce less pollution, allowing the company to store more of them without going over the permit limits.
Zenith officials praised the permit approval and said the company’s transition to renewable fuel storage would ensure Oregon has the supply it needs to meet its carbon reduction goals.
“The infrastructure investments being made during this transition will also ensure our terminal continues to operate at the highest standards of safety. We look forward to supporting regional leaders in creating a lower-carbon future,” Zenith’s chief commercial officer Grady Reamer said in a statement.
In the meantime, Portland is still in the midst of an investigation into the potential violations of Zenith Energy’s franchise agreement, including whether Zenith violated the law when it constructed and used new pipes at an additional dock on the river – without reporting it to authorities – to load renewable and fossil fuels. City officials have said the investigation would likely conclude by the end of the year.
Also ongoing: a legal challenge over the city’s land-use approval for Zenith, filed by environmental groups with the Oregon Land Use Board of Appeals.
Portland officials have had a complex relationship with the company. The city denied Zenith’s land-use credential in 2001 and defended the decision in court before reversing course and approving it with the condition that Zenith transition to renewable fuels and secure a new air permit with more stringent emission limits.
In February, despite mounting opposition from local activists, city staff once again approved a land-use credential for Zenith.
The approval came after DEQ last year found Zenith had been using the McCall dock and pipes to load and unload fuels without authorization. As part of the sanctions, DEQ officials required Zenith to seek a new land-use approval before continuing its air quality permit process.
DEQ officials said they would reevaluate Zenith’s air permit if the legal case or city investigation led to any changes to the status of the land-use approval – such as if the city revoked it or the state land use panel invalidated it.
The newly issued air permit is valid for five years.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.