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Zenith Energy, the company in a long-running battle with Portland over a fuel terminal, is offering to stop storing crude oil within five years in exchange for a key approval.
Zenith had previously committed to transitioning to 50% renewable fuels by 2026.
City officials did not immediately respond to a request for comment on the Zenith proposal.
Columbia Riverkeeper, one of the many environmental group’s that has fought Zenith, cautiously claimed victory. In a statement, the group said:
"Zenith's proposal to phase out crude oil handling is the direct result of countless hours spent by Portlanders and others to protect our communities, air, and water from the dangers of fossil fuels. Columbia Riverkeeper is encouraged that Zenith has acknowledged the need to transition away from fossil fuels. However, Zenith's history of misleading regulators and the public means that we will closely scrutinize Zenith's words and actions going forward."
Portland in August 2021 denied Zenith a land use compatibility statement (LUCS) for the Northwest Portland terminal, where fuels arrive by train and are stored before going out by land and sea. The denial left Zenith unable to renew a state air permit for the terminal.
The city had found that “the extent of … fossil fuel activity (at the site) and potential adverse impact on the environment and historically marginalized groups is not compatible with the comprehensive plan policies.”
The terminal has continued to operate as Zenith fights the city’s decision. The Land Use Board of Appeals upheld Portland's right to deny the LUCS, but said the city needed to strengthen its case. Meanwhile, the Zenith appeal has moved to the Oregon Supreme Court.
Zenith, though, is apparently now thinking it needs another solution.
“This proposal is compatible with the City’s land use regulations and 2035 Comprehensive Plan. Zenith looks forward to its Portland facility helping the region realize a low carbon, renewable fuel future,” Grady Reamer, Zenith’s vice president of U.S. Operations West, said in a statement.