Portland City Council PM Session 09/17/26
Portland's looking at forcing the 11 fuel terminals on Highway 30 to cut storage capacity 20% by 2036 — that hub holds 315 million gallons, 90% of Oregon's fuel supply, sitting on ground that could liquefy in a big earthquake. Industry wants a pause, enviro groups want deeper cuts based on actual volume, no vote yet — real hearing is September 24 at 2pm.
Summary
Two ordinances that would reduce fuel storage risk at Portland's Critical Energy Infrastructure (CEI) Hub moved toward a final vote, with a City Council hearing set for September 24. The core proposal from the Bureau of Planning and Sustainability would require the 11 bulk fuel terminals along Highway 30 to cut their in-service storage capacity by 20% by the end of 2036, limit expansion of all fuel types, and add stronger comprehensive plan policies. The hub currently holds about 315 million gallons of fuel — roughly 90% of Oregon's liquid fuel supply — on soil at high risk of liquefaction during a Cascadia earthquake.
The work session included a presentation from Oregon DEQ on its seismic retrofit program, which requires facilities to assess and mitigate earthquake risk, with most work expected to run through about 2038. Three advocacy panels presented: a coalition of more than 20 environmental and community groups pushed for a data-driven drawdown based on actual fuel volume rather than a fixed 20% tank cut, along with stronger, more enforceable policy language. The Portland Metro Chamber asked the Council to pause the process, citing conflicting economic studies and an updated draft released only the night before. The Western States Petroleum Association argued that storage capacity provides essential operational flexibility and warned that a 20% cut could reduce the system's ability to respond to supply disruptions, which could raise prices statewide. Notably, both community advocates and industry expressed interest in a volume-based approach over the tank-based one BPS proposed, though staff cautioned it would be operationally more complex and costly.
No votes were taken at this informational session. Councilors raised questions about the timing of reductions, safety trade-offs between fewer tanks versus lower fuel levels, emergency capacity, and impacts on the rest of the state. Both ordinances will be considered at the City Council hearing on Thursday, September 24, 2026, at 2:00 p.m., where the public can testify in person or virtually, and councilors may bring forward amendments.
Key Points
- Presentation on two ordinances regulating bulk fuel terminals at the CEI Hub, including comprehensive plan amendments, zoning code (Title 33) and building code (Title 24) changes, and a new Title 17 capacity reduction program requiring a 20% reduction in fuel storage capacity by 2036
- Update from Oregon DEQ on the Fuel Tank Seismic Stability Program, which requires seismic assessments and mitigation plans with implementation expected through approximately 2038
- Presentations from a coalition of environmental groups (proposing amendments favoring a data-driven, volume-based drawdown), the Portland Metro Chamber (requesting a pause), and the Western States Petroleum Association (defending storage capacity as operational flexibility)
Action Items
- BPS to provide follow-up information on the cost and legal implications of a volume-based fuel tracking program
- Western States Petroleum Association representative to consult members and return with more detailed information on capacity questions by the September 24 hearing
- Portland Metro Chamber to submit specific details on discrepancies between the two commissioned studies to the record
- BPS to report fuel and tank data to City Council at intervals (2028, 2031) for potential adjustments
- Councilors to decide whether to formally bring forward coalition amendments for the September 24 hearing
- Members of the public to submit testimony in writing or orally at the September 24 hearing
Issues Discussed (11)
Council held an informational work session on two ordinances requiring CEI Hub bulk fuel terminals to cut storage capacity 20% by 2036, hearing competing testimony from environmental advocates (favoring a volume-based drawdown), the Portland Metro Chamber (requesting a pause), and the petroleum industry (warning of supply risks). No votes were taken; a final hearing with possible amendments is scheduled for September 24, 2026.
Oregon DEQ presented an update on its Fuel Tank Seismic Stability Program, which requires CEI Hub facilities to conduct seismic assessments and implement mitigation plans through approximately 2038, running alongside the city's proposed 20% storage capacity reduction ordinances. Councilors questioned how DEQ's seismic retrofit timeline and requirements would coordinate with the city's fuel storage reduction program, with no votes taken at this informational work session.
During a work session on CEI Hub fuel storage ordinances, the Portland Metro Chamber requested a pause citing conflicting economic studies and a last-minute draft update, while the Western States Petroleum Association warned that BPS's proposed 20% tank capacity cut could reduce operational flexibility and raise fuel prices statewide. No votes were taken, though BPS was asked to provide follow-up on the cost implications of an alternative volume-based approach favored by both industry and environmental advocates.
Not directly addressed in this session; discussion centered on CEI Hub seismic fuel storage regulations rather than the citywide carbon emissions reduction strategy or 2030 target gap.
Council held an informational work session on two ordinances requiring CEI Hub's 11 fuel terminals to cut in-service storage capacity by 20% by 2036 and strengthen comprehensive plan policies, hearing competing input from environmental groups (favoring a volume-based drawdown), the Portland Metro Chamber (requesting a pause), and industry representatives (warning of supply risks). No votes were taken; the ordinances advance to a final Council hearing on September 24, 2026.
Not addressed in this meeting; the session focused entirely on CEI Hub fuel storage seismic risk ordinances, with no discussion of Fire Rescue staffing levels.
Not mentioned in this meeting; the session focused entirely on CEI Hub fuel storage ordinances and related seismic risk policy.
Not addressed in this meeting; the session focused entirely on CEI Hub fuel storage seismic risk ordinances, with no discussion of Vision Zero intersection safety improvements.
Council held a first-reading work session on ordinances requiring an 20% reduction in fuel storage capacity at the CEI Hub's 11 bulk terminals by 2036, hearing competing input from environmental groups favoring a volume-based drawdown, the Portland Metro Chamber requesting a pause, and industry warning of supply risks. No vote was taken; the ordinances advance to a Council hearing on September 24, 2026, with BPS asked to follow up on the feasibility of a volume-based approach.
During a work session on CEI Hub fuel storage regulations, both environmental advocates and the petroleum industry voiced support for a volume-based drawdown approach over BPS's proposed 20% tank capacity cut, though staff noted volume-based tracking would be more complex and costly to implement. Council directed BPS to provide follow-up information on the cost and legal implications of volume-based fuel tracking ahead of the September 24 hearing.
Council held an informational work session on ordinances requiring CEI Hub fuel terminals to cut storage capacity 20% by 2036, hearing from DEQ on its seismic retrofit timeline and competing testimony from environmental groups (favoring a volume-based drawdown), the Portland Metro Chamber (seeking a pause), and industry (warning of supply risks). No vote was taken; councilors debated tank-based vs. volume-based reduction approaches ahead of a September 24 final hearing.