Zenith Energy’s agreement with city under investigation due to new resolution

PORTLAND, Ore. (KOIN) — Following their approval of Zenith Energy’s air quality permit, the Portland City Council is now pushing for an extensive probe into the fuel company.

With an 11-1 vote, and with District 3 Councilor Steve Novick as the sole opponent, Portland leaders approved a resolution that calls on Mayor Keith Wilson to “pause any administrative actions related to Zenith Energy” until he investigates its agreement with the city. City Auditor Simone Rede is expected to conduct a report on the company as well.

Zenith’s fuel storage terminal along the Willamette River has been a hot topic among public officials and environmental advocates for several years, with multiple new developments since the new councilors took over.

Despite pushback from residents who have argued the company’s operations pose health and safety risks for the community, city leaders approved the land use statement in early February.

This decision came after the Oregon Department of Environmental Quality paused its permitting process, and issued Zenith a $372,600 fine following an inspection of the facility last year. ODEQ alleged the company was not authorized to use the McCall dock between April 2021 and June 2024.

But Zenith previously told KOIN 6 that the department had already been granted “full visibility” into the fuel storage terminal for years. In response to environmental concerns, the company has also told city officials it is committed to phasing out crude oil transports by 2027.

Still, a coalition of environmental activists filed a notice of intent to appeal Zenith’s permit in late February. The organizations and residents argued that the city failed to engage with the public before approving the land use statement.

During Wednesday’s meeting, District 3 Councilor Angelita Morillo contended that launching a probe into the company’s franchise agreement with officials was a necessary step in addressing the issue.

“I think if we don’t have some of the deeper investigative actions about how the city has engaged on this, then the community is never going to stop showing up, and this is going to be a matter that is just not going to be resolved,” Morillo said.

Under the new resolution, several city officials and bureaus are also required to disclose their previous communication with Zenith to the public.