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Zenith Energy and the CEI Hub

A fossil fuel terminal changed hands on the city's river. What did council require of the buyer, and what did it drop?

The city's seismic stability program is forcing bulk fuel terminal operators, including the newly sold Zenith facility, into major structural investments, according to city staff. By December 2036, all terminals must have cut in-service fuel storage capacity 20% below what was in service as of January 1, 2027. Council rejected relocating the CEI Hub elsewhere in the city, with staff saying no safer site exists in Portland, and voted down a 5% by-right increase in aviation fuel storage. It also dropped a plan to directly regulate non-fuel hazardous substance storage tanks, pushing that question to a future comprehensive plan policy instead. A proposed citizen-suit condition on the Zenith-to-ISQ franchise transfer, meant to let the public enforce violations the mayor doesn't, remains unresolved; a councilor warned it would hold up the sale itself. A resident testified that Zenith's own franchise enforcement found zero violations while the state found many, including years of unauthorized operation.

How council voted

3 recorded votes on this subject — 2 drew a dissenting vote, 1 failed.

  • 5–6 failed 1 absent 16 Sep 2026

    Consent to franchise transfer from Zenith Energy Terminals Holdings LLC to ISQ Springer Holdings, LLC (amend Ordinance 188554)

  • 11–1 carried 19 Mar 2025

    Declare actions concerning Zenith Energy Terminal Holdings, LLC, including placing communications into the public record, demanding the Mayor to investigate violations of the Zenith franchise agreement, and urging the Auditor to conduct an investigation into the competing statements and arguments heard by Council on January 21st, 2025, by City staff, Zenith, and members of the public

  • 3–0 carried 18 Sep 2024

    *Accept and appropriate grant for $405,720 from Oregon Department of Emergency Management for the Fossil Fuel Terminal Zoning and Comprehensive Plan Amendments project

Recorded roll-call votes only. Items passed without a roll call, and anything settled in committee without one, are not counted here.

What is actually in dispute

  • Zenith's own franchise-agreement enforcement found no violations, while the state found many, undercutting claims that existing mechanisms hold operators accountable. Public testimonyAM Session9 Sep 2026
  • The urgency being pushed around the franchise transfer is a manipulative tactic rather than a genuine deadline. Public testimonyFinance & Governance Committee (Whole)6 Aug 2026
  • I Squared Capital's own record of violations and lawsuits undermines its commitments to safe, compliant operation of the terminal. Public testimonyFinance & Governance Committee (Whole)6 Aug 2026
  • A councilor argued the proposed citizen-suit condition would effectively hold up the sale/transfer, contrary to its sponsors' claims. CouncilorAM Session2 Sep 2026

These are positions taken in the room, not conclusions of ours. A claim appearing here is not a finding that it is true.

What else was on the table

  • rejected Relocate the CEI Hub to an alternative, safer location Staff say there are no safer locations in Portland, since major industrial districts are all along the Willamette or Columbia corridor with the same liquefaction risk. City staffClimate, Resilience and Land Use Committee9 Oct 2025
  • rejected Allow a 5% by-right increase in aviation fuel storage capacity The amendment to allow the increase without discretionary review did not pass. Speaker unclear · Eli SpivakPortland City Work Session17 Sep 2026
  • rejected Regulate non-fuel hazardous substance storage tanks directly in the zoning code Dropped in favor of a comprehensive plan policy directing council to take up the issue separately. Speaker unclear · Eli SpivakPortland City Work Session17 Sep 2026
  • unresolved Add a citizen-suit/third-party enforcement condition to the Zenith-to-ISQ franchise transfer Proposed to give the public recourse if the new owner violates the franchise agreement and the mayor fails to enforce it. CouncilorAM Session2 Sep 2026

Why this exists

New capacity-reduction and building-code requirements for the bulk fuel terminals are being driven by the state's seismic stability program, which is forcing terminal operators to make major structural investments and changes.

THAT'S THE KEY THAT SORT OF LINES UP WITH THE DEQ SEISMIC STABILITY PROGRAM AND ALL OF THE INVESTMENTS AND CHANGES THAT THE TERMINALS ARE GOING TO HAVE TO MAKE AS A RESULT OF THOSE REQUIREMENTS.

City staffPortland City Work Session17 Sep 2026

The clock: 1 December 2036

All terminals must have reduced their in-service fuel storage capacity by 20% from what was in service as of January 1, 2027.

ALL THE TERMINALS MUST REDUCE THEIR IN-SERVICE FUEL STORAGE CAPACITY BY 20% OF WHAT IS IN SERVICE. AS OF JANUARY 1ST, 2027. AND THEY HAVE TO DO THAT BY DECEMBER OF 2036

City staffPortland City Work Session17 Sep 2026

What the record counts

58 meetings, 2025-01-16 to 2026-09-17
3 recorded votes, 1 failed
23 promises made on the record
4 deadlines passed with no delivery found in any later meeting

Promises whose deadline passed with no delivery found

Each was said on the record. We searched later meetings for the thing arriving and did not find it — which is not proof it never did.

  • Due 2025-11-10 Bureau of Planning and Sustainability

    Publish proposed draft of CEI Hub policy

    Promised at Portland City Council Climate, Resilience and Land Use Committee 10/09/25, 2025-10-09

  • Due 2025-11-13 Nobody named

    Add the Portland Gov QA public records link for the Zenith investigation to the committee agenda item

    Promised at Portland City Council Climate, Resilience and Land Use Committee 11/13/25, 2025-11-13

  • Due 2025-12-16 Planning Commission

    Hold Planning Commission hearing with public testimony on CEI Hub proposal

    Promised at Portland City Council Climate, Resilience and Land Use Committee 10/09/25, 2025-10-09

  • Due 2026-09-18 Nobody named

    Make oral testimony registration and agenda link available online for CEI Hub and Bulk Fuel Terminal ordinance public hearings

    Promised at Portland City Council Finance & Governance Committee (Whole) 09/16/26, 2026-09-16

Sums named on the record

  • $405,720

Quoted verbatim from item titles and promises. Not a total of what the city spent.

Votes are every recorded roll call on file. Promises are read from 433 of 433 meeting transcripts. Meetings counted are those linked to this subject's issue threads. Sums are quoted verbatim from item titles and promises, and are not a total of what the city spent.