Zenith Energy and Portland's fuel terminal

Zenith operates a fuel terminal in Northwest Portland. The private sale can proceed only if the City consents to transferring the franchise for pipelines in the public right of way. The franchise runs through 2037 and is separate from the terminal's land-use approvals and state air permit.

City staff conducted four rounds of inquiries into ISQ's technical, legal, financial, and compliance history. ISQ says it will retain the terminal's 21 employees and invest in older tanks. Staff found the company qualified and found no basis for extra transfer conditions. The disclosed review also identifies environmental, safety, and administrative incidents at affiliated facilities, including matters that were resolved and proceedings that remain pending.

The five Councilors who opposed referral focused on incomplete public disclosure, distrust created by the City's earlier Zenith investigation, and whether Council should seek stronger accountability before giving consent. The seven who supported referral generally treated the transfer as a narrow qualifications decision and emphasized that broader CEI Hub policy remains available through separate legislation.

Zenith is suing the City for breach of contract, alleging unreasonable delay and asking a federal court to order consent. Separately, the City Attorney corrected earlier written guidance that said nine Council votes were required. The City's current position is that a transfer needs a simple majority because it is not the grant of a new franchise.

A separate CEI Hub package would change the rules for every covered fuel terminal, not just Zenith. The draft would limit expansion and transloading, strengthen replacement-tank standards, and require a 20 percent reduction in covered in-service fuel storage from a 2027 baseline by December 1, 2036. It remains a proposal. A September 16 Committee of the Whole hearing is the next step, not final adoption.