Portland City Council PM Session 10/01/26
Council voted 12-0 to tighten rules on the fuel tank hub in NW Portland: new tanks need the highest earthquake rating, can't boost capacity, and must sit 250 feet back from the river. Aviation fuel got a carve-out that survived two close votes (5-7 and 6-6), and a push to put 40% of climate fund money into cutting fuel demand stalled when debate got cut off at 5pm — picks back up October 7.
Agenda
- 2026-311: Adopt the Critical Energy Infrastructure Hub Policy Project to support public health and natural hazards risk reduction (amend Code Titles 33 and 24)
- 2026-312: Add Bulk Fuel Terminal Capacity Reduction Regulations Code to reduce Critical Energy Infrastructure Hub fuel storage by 2036 in support of hazard mitigation (add Code Chapter 17.112)
Summary
Portland moved closer to new rules for the Critical Energy Infrastructure Hub, the fuel tank district in Northwest Portland that faces serious earthquake risk. On a 12-0 vote, the council adopted an amendment package to the zoning and Comprehensive Plan ordinance. Under the changes, fuel terminals replacing old tanks must go through a public Type III review. Replacement tanks cannot add capacity, must meet the highest seismic standard (Risk Category 4), must sit in equal or lower-risk locations, and require a bond to guarantee the old tank is torn down. Any expansion of tank or transloading capacity must show a documented current need and no alternative location. It also cannot raise total hub capacity, except for a 5% allowance for aviation fuel, and new tanks must be set back at least 250 feet from the Willamette River. More neighborhoods, schools and a newspaper will get notice of terminal projects. The city is also directed to study limits on non-fuel hazardous materials such as asphalt.
Aviation fuel divided the council. An effort by Councilor Green to drop the 5% aviation fuel allowance failed 5-7. A separate proposal to remove the aviation fuel exemption from the 2036 capacity reduction rule failed on a 6-6 tie. Opponents pointed to airport jobs and cargo and warned that the state legislature could preempt the city's rules. On the companion fuel reduction ordinance, the council approved, 10-2, several other changes: annual reporting by terminals and to council, mandatory penalties for noncompliance or misrepresentation, and a directive to develop alternatives to regulating tank capacity using data due March 31, 2027. Councilors Zimmerman and Ryan voted no. Councilor Zimmerman questioned the switch from 'may' to 'must' on penalties. The city attorney said this removes up-front discretion but still allows settlement negotiation in court.
Councilor Novick then proposed committing at least 40% of Portland Clean Energy Fund money to transportation to cut fuel demand. Several councilors said they agreed with the goal but would vote no, preferring to take it up in the upcoming Climate Investment Plan process. Debate was cut off at 5 p.m. and will resume October 7, 2026 at 10 a.m. The zoning ordinance returns November 5, 2026 for consideration with final findings. Public testimony is closed, though the council may reopen it.
Key Points
- Council unanimously (12-0) adopted a joint amendment package from Councilors Green, Pirtle-Guiney, Kanal, Clark and Koyama Lane to the Critical Energy Infrastructure (CEI) Hub Policy Project ordinance (Document 2026-311). The package includes Comprehensive Plan policy changes and Title 33 zoning code changes.
- The Title 33 changes replace three Type III reviews with two. A new storage tank replacement review requires that replacement tanks add no capacity, are built to Risk Category 4, sit in locations with the same or lower seismic risk, and are backed by a performance bond to ensure old tanks are demolished. A consolidated capacity and transloading expansion review requires a current needs analysis, no alternative location, net public benefit, no increase in total hub capacity except a 5% allowance for aviation fuel, and a 250-foot setback from the Willamette River.
- The amendments also expand neighborhood contact and notice requirements to more neighborhood associations, educational institutions and a broadly distributed newspaper. They direct the city administration to bring back a work program on limiting storage of non-fuel hazardous materials such as asphalt, which make up about 20% of hub storage.
- Councilor Green's separate amendment (Green 1) to remove the 5% aviation fuel expansion allowance in Title 33 failed 5-7. Supporters questioned the aviation fuel demand modeling. Opponents cited Portland International Airport (PDX) jobs, air cargo and the risk that the state legislature would preempt the city.
- On the bulk fuel terminal capacity reduction ordinance (Document 2026-312, Title 17), Vice President Clark divided the joint amendment package. The section removing the existing aviation fuel exemption from the 2036 capacity reduction failed on a 6-6 tie. The remaining sections passed 10-2: a directive to develop alternatives to regulating tank capacity, annual reporting, mandatory penalties, and a commitment to ongoing risk reduction work.
- Councilor Novick proposed adding a finding that commits the council to spending at least 40% of Portland Clean Energy Fund (PCEF) dollars on transportation in the next Climate Investment Plan, to reduce fuel demand. Debate was unfinished when the meeting ended at 5 p.m.
Votes (4)
Green/Pirtle-Guiney/Kanal/Clark/Koyama Lane 2 Amendment to Document 2026-311
Single amendment package to the CEI Hub Policy Project ordinance. Strengthens Comprehensive Plan policy language (tribal nations, decarbonized economy, natural hazards, a new risk reduction policy) and amends Title 33: expanded neighborhood contact, a new tank replacement review, a consolidated capacity/transloading expansion review, and a directive on non-fuel hazardous materials.
Green 1 Amendment to Document 2026-311
Would strike the 5% storage capacity expansion allowance for aviation fuel from the Title 33 approval criteria (33.870.060 C).
Amendment 2 (divided) of Green/Pirtle-Guiney/Kanal/Clark/Koyama Lane 2 to Document 2026-312
Would remove the Title 17 exemption for aviation fuel storage capacity existing as of January 1, 2027 from the 2036 capacity reduction requirement, and make conforming cleanup to match Title 33.
Amendments 1, 3, 4 and 5 of Green/Pirtle-Guiney/Kanal/Clark/Koyama Lane 2 to Document 2026-312
Directs staff to use terminal data reported by March 31, 2027 to propose alternatives to regulating tank capacity by September 1. Moves to annual terminal reporting and annual staff reports to council on fuel demand and consumption (incorporating Novick 2 and 3). Makes penalties mandatory ('must impose') for noncompliance or misrepresentation of material facts. Reaffirms commitment to ongoing hub risk reduction work.
Action Items
- Planning and Sustainability staff to prepare a revised 2026-311 ordinance with findings and technical conforming amendments for November 5, 2026
- City administration to bring back a work program on limiting storage of non-fuel hazardous materials (e.g., asphalt) at the hub
- Terminals to report data by March 31, 2027; staff to propose alternatives to regulating storage tank capacity (e.g., fill levels) by September 1
- Staff to report annually to council on terminal data, fuel demand forecasts and consumption
- Council to resume Title 17 amendment discussion (Novick 1, then Kanal amendments) on October 7, 2026 at 10:00 AM
- Pirtle-Guiney offered to work with Smith and the bureau on voluntary notification lists that reach underserved communities
- Staff to address the conforming reference to the aviation fuel storage expansion review in technical amendments
Issues Discussed (15)
As part of the broader CEI Hub zoning amendment package adopted 12-0, the council directed the city to initiate a work program studying potential limits on non-fuel hazardous materials storage, such as asphalt, at the hub.
Council debated the 5% aviation fuel capacity allowance within the CEI Hub zoning amendments, with Councilor Green's motion to eliminate the allowance failing 5-7 and a separate motion to remove the aviation fuel exemption from the 2036 capacity reduction rule failing on a 6-6 tie. Opponents of removing the allowance cited airport jobs and cargo needs and warned of potential state legislative preemption.
Councilor Novick proposed committing at least 40% of Portland Clean Energy Fund money to transportation projects aimed at cutting fuel demand, but several councilors said they'd rather address this in the upcoming Climate Investment Plan process; debate was cut off at 5 p.m. and will resume October 7, 2026.
Council voted 12-0 to adopt a joint amendment package to the CEI Hub zoning and Comprehensive Plan ordinance, establishing Type III review for tank replacements, Risk Category 4 seismic standards, 250-foot river setbacks, and capacity caps with a 5% aviation fuel allowance. Separate attempts to eliminate the aviation fuel exemption failed (5-7 and 6-6 tie votes), and the ordinance returns November 5, 2026 for final consideration with findings.
Council voted 12-0 to adopt a joint amendment package to the CEI Hub zoning and Comprehensive Plan ordinance, establishing seismic standards (Risk Category 4), capacity caps with a 5% aviation fuel exception, 250-foot river setbacks, and expanded public notice requirements for terminal projects. Amendments to eliminate the aviation fuel allowance failed (5-7 and 6-6 tie), and the zoning ordinance will return November 5, 2026 for final consideration with findings.
Council voted 12-0 to adopt a joint amendment package establishing new Type III review requirements for CEI Hub fuel terminal replacements, including seismic Risk Category 4 standards, no-capacity-increase rules, demolition bonds, and 250-foot Willamette River setbacks for new tanks. Separate efforts to remove a 5% aviation fuel allowance failed (5-7) and to strip aviation fuel's exemption from the 2036 capacity reduction rule tied 6-6, while the companion fuel reduction ordinance with mandatory penalties and reporting requirements passed 10-
Council voted 12-0 to adopt a joint amendment package to the CEI Hub zoning and Comprehensive Plan ordinance, establishing new Type III review requirements for tank replacement (Risk Category 4 seismic standards, no capacity increases, demolition bonds) and capacity expansion (documented need, no alternatives, 250-foot river setback). Amendments to remove a 5% aviation fuel allowance failed on 5-7 and 6-6 votes, and the ordinance returns November 5, 2026 for final consideration.
Council narrowly preserved the aviation fuel exemption in the fuel storage reduction policy: Councilor Green's effort to drop the 5% aviation fuel capacity allowance failed 5-7, and a separate proposal to remove the aviation fuel exemption from the 2036 capacity reduction rule failed on a 6-6 tie, with opponents citing airport jobs, cargo needs, and risk of state preemption.
As part of the adopted CEI Hub amendment package, the council directed city staff to develop a work program studying potential limits on non-fuel hazardous materials, such as asphalt, stored at the hub.
The council approved, 10-2, a directive within the companion fuel reduction ordinance requiring staff to develop alternatives to regulating tank capacity, with data due March 31, 2027, alongside new annual reporting requirements and mandatory penalties for noncompliance. Councilors Zimmerman and Ryan voted no, with Zimmerman raising concerns about the shift from discretionary ("may") to mandatory ("must") penalty language.
Council unanimously adopted (12-0) a joint amendment package to the CEI Hub zoning and Comprehensive Plan ordinance, establishing seismic safety standards, capacity limits, and expanded public notice requirements for fuel terminal projects, while splitting on aviation fuel exemptions (5-7 and 6-6 votes on related amendments). The zoning ordinance will return November 5, 2026 for final consideration with findings, as debate on a related Portland Clean Energy Fund transportation proposal was postponed to October 7.
As part of the CEI Hub zoning amendment package adopted 12-0, the council directed the city to develop a work program studying limits on storage of non-fuel hazardous materials, such as asphalt, at the hub.
Council retained a controversial 5% aviation fuel capacity allowance within the CEI Hub zoning amendments, rejecting Councilor Green's effort to remove it on a 5-7 vote, while a separate attempt to strip aviation fuel's exemption from the 2036 capacity reduction rule failed on a 6-6 tie. Opponents of removing the exemptions cited airport jobs, cargo needs, and risk of state preemption.
As part of the adopted CEI Hub zoning amendment package, the council directed city staff to develop a work program studying potential limits on non-fuel hazardous materials, such as asphalt, stored at the hub. No specific details or timeline for this study were discussed beyond the directive itself.
The council adopted a zoning amendment package (12-0) allowing a 5% aviation fuel capacity exception within the CEI Hub capacity cap, after Councilor Green's motion to eliminate the allowance failed 5-7 and a separate proposal to remove the aviation fuel exemption from the 2036 capacity reduction rule failed on a 6-6 tie. Opponents of removing the exemption cited airport jobs, cargo needs, and risk of state preemption.