Portland City Council Finance & Governance Committee (Whole) 08/06/26
Summary
A proposed transfer of the Zenith Energy fuel terminal franchise to global investment firm I Squared Capital moved forward to the full Council on a 7-5 vote, over strong objections from dozens of residents. The item before the committee was narrow — it only concerns the pipes that cross Front Avenue in the public right-of-way and whether the new owner has the technical, legal, and financial ability to operate them. City staff said their review found no basis to deny or add conditions. But community members, environmental groups, and attorneys used the hearing to raise much broader concerns about the terminal's seismic risk on liquefiable riverbank soil, wildfire and public health dangers, and the company's plans to expand fuel storage.
A major theme was transparency. Testifiers said the city had never released documents referenced in the mayor's draft ordinance, and that Zenith had sued the city to cut public process short and force immediate consent. Several councilors agreed the city made what they called an 'unforced error' by withholding records, and the City Attorney committed to disclosing the information, saying the public interest clearly requires it. Residents also asked the committee to add third-party enforcement to the franchise and to pass a separate emergency resolution blocking fuel expansion permits until the CEI Hub policy project is finished. I Squared representatives argued they would be a better, more sustainability-focused owner bound by strict European Union investment rules and committed to converting the site to 100% renewable fuels by 2027. Councilors who voted no — Koyama Lane, Morillo, Green, Avalos, and Kanal — said they wanted more time and information; those voting yes said the narrow question was straightforward and that approving the transfer would get Zenith out of town without limiting future oversight.
The committee also heard emotional testimony on Vision Zero from families of traffic crash victims and safety advocates, who criticized the West Burnside project for prioritizing repaving over safety fixes and urged the city to hold firm on adopted safety plans. Staff provided a written memo answering earlier councilor questions and will present intersection safety work at the Public Works Committee next Tuesday. Next steps: the franchise transfer goes to the full Council with referenced documents to be posted first, staff will explore possible conditions with I Squared, and the broader CEI Hub policy is expected to reach committee around September 16.
Key Points
- Public testimony on the proposed franchise transfer from Zenith Energy Terminals Holdings LLC to I Squared Capital (Springer Holdings/Skyline Renewable Energy), with roughly 50 people signed up to testify
- Committee voted to refer the franchise transfer to full Council with a due pass recommendation despite public calls for delay, transparency, and third-party enforcement
- Vision Zero update, including community testimony on traffic safety, the West Burnside paving project, and staff responses to prior committee questions
Votes (1)
Document 2026-263 — Consent to Franchise Transfer from Zenith Energy Terminals Holdings LLC to Isaac Springer Holdings LLC (amending Ordinance 188554)
Motion to refer the franchise transfer ordinance to the full Council with a recommendation that it be passed
Action Items
- City to publicly post/attach documents referenced in sections 4, 8, 9, and 10 of the mayor's franchise ordinance before the Council vote
- City Attorney to follow up on whether I Squared's Article 9 commitment to end fossil fuel storage by 2027 is legally binding and enforceable
- City Attorney and staff to explore reasonable conditions (third-party enforcement, risk bond, good neighbor agreement) with I Squared
- Councilor Avalos to follow up with the City Attorney on adding accountability layers to the franchise
- Councilor Green to work with the City Attorney on possibly attaching a forward-looking finding/directive tied to the CEI Hub comp plan and zoning work
- PBOT to present intersection safety work at the Public Works Committee next Tuesday
- Vision Zero staff to bring speed/red light camera expansion discussion to the Public Safety Committee
- Dana Dickman to follow up individually and with the committee on deeper responses to Vision Zero questions
Issues Discussed (21)
Testifiers criticized the city for withholding documents referenced in the mayor's draft ordinance on the Zenith franchise transfer and for allowing Zenith's lawsuit to compress public review timelines; the City Attorney committed to disclosing the withheld records before the item reaches full Council. Despite these transparency concerns, the committee voted 7-5 to advance the franchise transfer with a due-pass recommendation, with dissenting councilors citing the need for more time and information.
Staff indicated they will present intersection safety work at the Public Works Committee meeting the following Tuesday, in response to earlier councilor questions raised during the Vision Zero discussion.
Not addressed in this meeting; the session focused on the Zenith Energy franchise transfer vote and Vision Zero traffic safety testimony, with no discussion of Housing Bureau fund balances or budget policy corrections.
Not addressed in this meeting; the session focused on the Zenith Energy franchise transfer vote and Vision Zero traffic safety testimony, with no discussion of Fire Rescue Unit Funding.
The committee voted 7-5 to advance the Zenith Energy fuel terminal franchise transfer to I Squared Capital to full Council, despite public testimony alleging the city withheld key documents and Zenith sued to shorten public process. The City Attorney committed to disclosing the referenced records before the full Council vote, after several councilors called the withholding an "unforced error.
The committee voted 7-5 to advance the Zenith Energy franchise transfer to I Squared Capital to full Council with a due pass recommendation, despite dozens of residents raising concerns about seismic risk, fuel expansion, and the city's failure to disclose referenced documents. The City Attorney committed to releasing withheld records before the full Council vote, while dissenting councilors (Koyama Lane, Morillo, Green, Avalos, Kanal) sought more time and information.
Residents urged the committee to add third-party enforcement mechanisms to the Zenith/I Squared franchise transfer, but city staff maintained their narrow legal review found no basis to impose such conditions. The committee advanced the transfer to full Council on a 7-5 vote without adding enforcement provisions, though staff agreed to explore possible conditions with I Squared before the full Council vote.
Not directly addressed in this meeting; the session focused on the Zenith Energy franchise transfer to I Squared Capital and Vision Zero traffic safety updates, with no discussion of Urban Service Boundary Amendments.
Committee received a Vision Zero update featuring emotional testimony from crash victims' families and safety advocates who criticized the West Burnside project for prioritizing repaving over safety fixes. Staff provided a written memo responding to earlier councilor questions and will present intersection safety work at the Public Works Committee the following Tuesday.
The Finance & Governance Committee voted 7-5 to advance the Zenith Energy terminal franchise transfer to I Squared Capital to the full Council with a due pass recommendation, despite objections from dozens of residents citing seismic risk, transparency failures, and calls for third-party enforcement. Councilors acknowledged an "unforced error" in withholding referenced documents, and the City Attorney committed to disclosing them before the full Council vote.
Committee voted 7-5 to advance the Zenith-to-I Squared franchise transfer to full Council despite residents' calls for third-party enforcement conditions, with staff maintaining their review found no basis to add such conditions. The City Attorney committed to disclosing previously withheld documents referenced in the mayor's draft ordinance before the full Council vote, after councilors acknowledged an "unforced error" in transparency.
Residents urged the committee to pass a separate emergency resolution blocking new fuel expansion permits until the broader CEI Hub policy project is complete, with that policy work not expected to reach committee until around September 16. The committee's main action was on the narrower Zenith-to-I Squared Capital franchise transfer rather than the CEI Hub comprehensive planning process itself.
The committee heard emotional Vision Zero testimony from crash victims' families and safety advocates criticizing the West Burnside project for prioritizing repaving over safety fixes, urging the city to maintain adopted safety plans. Staff provided a written response memo and will present intersection safety work at the Public Works Committee the following Tuesday.
Not mentioned in this meeting; the session focused on the Zenith Energy franchise transfer vote and a Vision Zero traffic safety update, with no discussion of Moda Center renovation funding.
During the Zenith Energy franchise transfer debate, several councilors and the City Attorney acknowledged an "unforced error" in withholding documents referenced in the mayor's draft ordinance, with the City Attorney committing to disclose the records before the item reaches full Council. Testifiers also cited Zenith's lawsuit to shorten public process as evidence of transparency failures in the city's handling of the matter.
Residents pressed the committee to add third-party enforcement mechanisms to the Zenith franchise transfer as a condition of approval, but the committee advanced the transfer to full Council on a 7-5 vote without adding such conditions, with staff saying they would explore possible conditions with I Squared before the full Council vote.
Families of traffic crash victims and safety advocates gave emotional testimony criticizing the West Burnside project for prioritizing repaving over safety improvements and urging the city to uphold adopted Vision Zero safety plans. Staff provided a written memo responding to earlier councilor questions and will present detailed intersection safety work at the Public Works Committee the following Tuesday.
Residents urged the committee to add third-party enforcement mechanisms to the Zenith Energy franchise transfer agreement, but city staff maintained their review found no legal basis to add such conditions to the narrow right-of-way question. The committee advanced the transfer to full Council on a 7-5 vote without adding enforcement conditions, though staff agreed to explore possible conditions with I Squared Capital before the full Council vote.
Residents urged the committee to pass an emergency resolution blocking fuel expansion permits until the broader CEI Hub policy project is complete, but the committee's focus remained on the narrower Zenith-to-I Squared franchise transfer; the CEI Hub policy itself is expected to reach committee around September 16.
Committee voted 7-5 to refer the Zenith Energy franchise transfer (to I Squared Capital) to full Council with a due pass recommendation, despite dozens of residents testifying about seismic risk, transparency failures, and calls for third-party enforcement conditions. Councilors Koyama Lane, Morillo, Green, Avalos, and Kanal voted no seeking more time, while the City Attorney committed to releasing previously withheld documents before the full Council vote.
Not addressed in this meeting; the session focused on the Zenith Energy franchise transfer vote and Vision Zero traffic safety testimony, with no discussion of Police Bureau staffing or cost framework issues.