Portland Mayor Wilson Ignores City Council Calls for Investigation of Zenith; Grants LUCS

On Jan. 31, Portland City Councilors Morillo and Green Called for Accountability in Response to Public Outcry About Zenith’s Legal Violations and Plans to Expand

FOR IMMEDIATE RELEASE 
Feb. 3, 2025

Media Contacts: 
Nick Caleb, Breach Collective, 541-891-6761, nick@breachcollective.org
Dineen Crowe, 350PDX, 631-830-7478, dineen@350pdx.org

Portland, Oregon - This morning, the City of Portland granted a Land Use Compatibility Statement (LUCS) to Zenith Energy, giving the Texas-based fossil fuel company a green light to expand its operations in Portland. The decision comes only days after Portland City Councilors formally called for an investigation of Zenith in response to years of community demands for accountability and a public process. Outraged community members say they will protest the decision on Wednesday, Feb. 5 at 8:30 a.m. at City Hall.

On Friday, Jan. 31, Portland City Councilors Angelita Morillo and Mitch Green submitted a draft resolution in response to community concern about the Zenith Energy liquid fuels terminal in NW Portland. According to coverage in The Oregonian:

“The resolution would direct Mayor Keith Wilson to conduct an investigation of potential violations by Zenith of its franchise agreement with the city and to report to council within 90 days.

It also would direct the council or a committee of council members to investigate if city staff made “willful false statements” during the recent council work session or in other communication with city leaders and the public.

It would order city staff and the city attorney to put all communications between city employees and Zenith on the public record.

And it would seek to put Zenith’s pending land-use application or future permits or applications on hold pending the results of the two investigations. The resolution doesn’t seek to change who makes the decision on land-use permits in the city.”

On December 5, 2024, the Oregon Department of Environmental Quality (DEQ) issued a $372,600 fine to Zenith Energy for unauthorized construction, modification, and use of a leased dock with a requirement that Zenith obtain a new LUCS from the City of Portland before the agency will consider a new air permit. DEQ set a deadline of February 4, 2025 for Zenith to obtain new land use permissions.

Thousands of community members and dozens of organizations have called on City of Portland officials to deny Zenith’s LUCS application. On January 21, 2025, the City Council held a work session and a listening session on Zenith’s operations. After the January 21st work session, advocates from 350PDX sent a letter to the City, fact checking claims made by staff and Zenith. 

Dineen Crowe from 350PDX said,

“Today’s decision is a complete disgrace. City staff should be ashamed of themselves for yet again colluding and siding with a Texas-based fossil fuel company over the needs and voices of local Portlanders. Our community had hope in this new city administration, but already we’ve been let down. The January 21 City Work Session that ultimately led to today’s decision was full of false and blatantly misleading claims from City staff. Advocates were not consulted during the last LUCS process in 2022, instead Zenith and City officials met secretly to strike a compromise without any public feedback or involvement. And today, it seems history has repeated itself.”

Jan Zuckerman from Braided River Campaign said: 

“During his campaign, candidate Keith Wilson told voters that he would rescind Zenith’s LUCS if there was evidence of malfeasance and a lack of transparency. His own staff admitted to city councilors on Jan. 21 that there was malfeasance and a lack of transparency in the 2022 LUCS process. And now Mayor Wilson has turned around and granted a new LUCS anyway! This is a massive betrayal!”

Nancy Hiser, Tank the Tanks and Linnton Neighborhood Association said,

“This is completely unacceptable in terms of community safety and public process! Now, the City Council must ensure that our rights are protected.”

In October 2024, polling from Data Progress showed that nearly half of Portlanders support revoking Zenith Energy’s LUCS and shutting down the oil-by-rail facility while 58% of likely voters do not trust Zenith to follow through on its purported “renewable fuels” plans. This polling was conducted prior to DEQ’s $372,600 fine for Zenith’s illegal construction, modification, and use of a leased dock.

Kate Murphy from Columbia Riverkeeper said, 

"After getting caught illegally expanding its fossil fuel operations, Zenith has convinced the City of Portland to issue additional approvals for a further expansion of dangerous operations that threaten our communities, the environment, and Tribal treaty resources. Despite the array of serious concerns and in-depth documentation demonstrating Zenith's consistent history of violations and dishonesty, Portland city administrators are gambling public health and safety in favor of a fossil fuel company's profits."

John Giacoppe from the Portland Democratic Socialists of America said, 

“Zenith Energy has obfuscated its true intentions from the very beginning of its operations in Portland. The company has concealed major changes in land use from the public, expanded and developed facilities without government approval, and found loopholes in city code to expand fossil fuel and toxics throughput despite pledges to the contrary. A history of deceit demands a close watch, and city officials who have allowed Zenith’s transgressions to continue unabated should have their work reviewed with equal scrutiny.” 

Nick Caleb from Breach Collective said, 

“Mayor Wilson betrayed the confidence of Portlanders this morning. Rather than give the community a voice in a massive decision that would impact their public safety, he has continued the practices of the last city government.”

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Breach Sends Letter to Portland City Council With a Blueprint to Deny Zenith’s LUCS