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Zenith Energy

Zenith Energy Terminal Holdings, LLC is a fuel products transloading facility. The company accepts crude oil, diesel, renewable fuels and other fuel products from one mode of transportation, like railcars, and passes them along to another, such as marine vessels. In the interim, fuel products are stored at the facility in above-ground tanks. Zenith Energy is located at 5501 NW Front Avenue in northwest Portland.

Current status of Zenith Energy Air Quality Permit

DEQ announced the public comment period and public hearings for Zenith's draft Air Contaminant Discharge Permit on April 7, 2025. Read the public notice for information about the draft permit and how to provide comment. DEQ evaluates verbal and written comments with equal weight and may revise the draft permit based on comments received. All comments are due by May 30, 2025 at 5 p.m.

DEQ received a City of Portland approved Land Use Compatibility Statement, or LUCS, from Zenith on Feb. 3, 2025. DEQ reviewed the LUCS and determined it is sufficient to resume processing Zenith's air quality permit application. 
Public involvement

Upcoming public hearings

First public hearing: May 12, 2025, 6:30 – 9 p.m.
In person attendees will be invited to provide comment first with online and phone attendees following, time permitting.

  • Attend in person: Buckley Center Auditorium, University of Portland, 5000 N Willamette Blvd., Portland
  • Register to join online via Zoom 
  • Join via phone by calling 253-215-8782
    Webinar ID: 863 5360 2272
    Passcode: 746447 when prompted.
Second public hearing: May 15, 2025, 6 – 8:30 p.m.

Public information meetings

DEQ held a virtual public information meeting on Dec. 16, 2024 to share information and answer questions about the agency's decisions to pause Zenith's air quality permitting process, request a LUCS and issue an enforcement order.

DEQ also held virtual public information meetings on April 17, 2024 and Oct. 28, 2024 to share information and answer questions about how DEQ regulates the Zenith Energy terminal. The audience heard from DEQ's Air Quality Permitting program, Cleaner Air Oregon program, Fuel Tank Seismic Stability program, Emergency Response program on spill preparedness and Office of Compliance and Enforcement. DEQ also shared information about Zenith's draft Air Contaminant Discharge Permit and application.

​DEQ held a virtual public information meeting on Dec. 16, 2024 to share information and answer questions about the agency's decisions to pause Zenith's air quality permitting process, request a LUCS and issue an enforcement order.

DEQ also held virtual public information meetings on April 17, 2024 and Oct. 28, 2024 to share information and answer questions about how DEQ regulates the Zenith Energy terminal. The audience heard from DEQ's Air Quality Permitting program, Cleaner Air Oregon program, Fuel Tank Seismic Stability program, Emergency Response program on spill preparedness and Office of Compliance and Enforcement. DEQ also shared information about Zenith's draft Air Contaminant Discharge Permit and application.

Dec. 16, 2024 information meeting


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Air quality permit

Current status: Zenith's draft Air Contaminant Discharge Permit is currently in its public comment period until May 30, 2025 at 5 p.m. See above for more information on how to submit a comment or attend an upcoming hearing. 

Following the City's approval of Zenith's Land Use Compatibility Statement in 2022, Zenith submitted an air quality permit application to DEQ. See Zenith's permit application materials below and learn more about DEQ's air quality permitting
Note: DEQ cannot overturn a land use compatibility statement, which allows Zenith to operate at its terminal. That would either have to happen at the City of Portland or through the Land Use Board of Appeals. See the FAQs below for more information.

​2021

  • January: DEQ requests a new LUCS from Zenith.

  • August: City of Portland​ denies Zenith's application for a land use compatibility statement. Zenith appeals the City of Portland's decision to the Land Use Board of Appeals.

  • September: DEQ denies Zenith's air quality permit because of the City's denial of the land use compatibility statement.

  • October: Zenith appeals DEQ's denial of Zenith's air quality permit.

​2022​

  • February: Land Use Board of Appeals rules that the City has the authority to deny the LUCS. Zenith appeals the Land Use Board of Appeals decision to the Oregon Court of Appeals.

  • May: The Oregon Court of Appeals affirms the Land Use Board of Appeals ruling that the City has the authority to deny the LUCS.

  • June: Zenith appeals the Oregon Court of Appeals decision to the Oregon Supreme Court.

  • October: City approves Zenith's updated land use compatibility statement. Zenith sends DEQ amended Title V air quality permit application.

  • November: DEQ receives a copy of Zenith's air quality permit application.​

2024
  • October: DEQ announces the public notice​ of the draft Air Contaminant Discharge Permit and opens the public comment period to receive input from the community. The public notice also includes details about a second public information meeting and two public hearings. DEQ hosts a second public information meeting on Oct. 28 to share information about the draft Air Contaminant Discharge Permit and answer questions. 

  • November: Following an unannounced inspection​, DEQ pauses the air quality permitting process. DEQ cancels the public hearings to gather more information and determine next steps. 

  • December: DEQ announces continued pause of Zenith's air quality permitting process after it requested that Zenith provides a LUCS that covers operations on adjacent properties. DEQ also issues a $372,600 fine to Zenith for unauthorized use of the McCall dock between April 2021 and June 2024. DEQ hosts a public information meeting on Monday, Dec. 16, 2024 from 6 p.m. to 7 p.m. to talk to the community about its decisions and next steps. 

2025

  • February: DEQ receives a City of Portland approved LUCS from Zenith​ on Feb. 3, 2025. DEQ reviews the LUCS to ensure it is complete and determines it is sufficient to continue processing Zenith's air quality permit application. 

  • April: DEQ announces the public comment period and public hearings for Zenith's draft air quality permit. Re​ad the public notice​​ for information about the draft permit and how to provide comment.


Frequently asked questions

Questions raised by community members at the April 2024 public information meeting were compiled by Columbia Riverkeeper. Read the questions and DEQ’s answers.

​DEQ does not have the authority to make land use decisions. The City of Portland is the local land use authority for determining if the Zenith facility and operations are in line with local land use requirements. DEQ's process for reviewing these statements is to ensure any land use compatibility statement, or LUCS, the agency receives is consistent with that facility's application to confirm both DEQ and the land use agency are getting the same information.

DEQ asked Zenith for a new LUCS from the City of Portland in January 2021 because the activities Zenith proposed in its air quality permit renewal application did not match the existing LUCS.

When the City denied Zenith's LUCS, DEQ also denied Zenith's permit application. Zenith appealed the City's land use decision to the Land Use Board of Appeals. While the decision was under appeal, Zenith proposed a new LUCS and the City approved it. Zenith submitted a new air quality permit application to DEQ with the approved LUCS.

DEQ requested that Zenith provides a LUCS from the City of Portland that includes operations on adjacent properties in December 2024. The City approved Zenith’s LUCS application on Feb. 3, 2025. DEQ reviewed the LUCS to ensure it is complete and determined it is sufficient to continue with processing Zenith's air quality permit application.

Any reversal or appeal of the LUCS would have to come from the City or go through the Land Use Board of Appeals the same way Zenith appealed the City's 2021 denial.

Questions specific to the City's LUCS process, approval, decision making and auditor report can be sent to: ppd@portlandoregon.gov​

​The new LUCS​ updates where Zenith's activities may be located and includes conditions set in the 2022 LUCS.

These conditions require Zenith to cease all transloading of crude oil by 2027, lower the plant site emission limit for volitile organic compounds by nearly 80%, cease operation of the asphalt refinery and  remove30 storage tanks. It also prohibits new construction of facilities and infrastructure for handling fossil fuels, except for piping and related components for handling jet fuel and sustainable aviation fuel jet fuel blend.  New storage tank construction is only allowed for renewable fuels and non-fuel products. Zenith must formally request that DEQ terminates its Title V permit once the Air Contaminant Discharge Permit is in full effect.

Learn more about these conditions from the City of Portland Permitting and Development. Read the full LUCS on the City of Portland's public records website. Questions specific to the City's LUCS process, approval, decision making and auditor report can be sent to: ppd@portlandoregon.gov

​Zenith is operating in compliance with its existing Title V permit. Per Oregon law, while Zenith has a complete, timely application in, it may operate consistent with its existing permit until DEQ makes a permitting decision.​

DEQ is aware that the City's LUCS decision has been appealed to the Land Use Board of Appeals. OAR 340-018-0050(2)(a)(G) states: “If a local government land use compatibility determination or underlying land use decision is appealed subsequent to the Department's receipt of the LUCS, the Department shall continue to process the action unless ordered otherwise by LUBA or a court of law stays or invalidates a local action."

DEQ is following this rule and continuing the permitting process because the LUCS is still considered valid. An appeal does not automatically stop DEQ's permitting process unless ordered to by a legal authority.

Additionally, DEQ air quality permits are contingent on a valid LUCS. If the LUCS is overturned or revoked at any point, DEQ will evaluate how that land use decision will impact the air quality permit.




Below is a summary of key changes to the draft permit since the 2024 public notice. You can see the full list of changes in the draft permit review report.

  • Updated Land Use Compatibility Statement: The draft permit references the February 2025 and October 2022 land use compatibility statements issued by the City of Portland.

  • New fuel handling activities: The draft permit includes requirements for handling jet fuel, sustainable aviation fuel, or SAF, and SAF jet fuel blends, as allowed under the updated LUCS issued by the City of Portland.

    New connection: Installation of new piping components to connect the McCall Dock to the Kinder Morgan pipeline, as approved in Notice of Approval application number 63533. This is an approved update to the facility rather than a change to permit conditions.

  • Revised permit condition: A permit condition about product handling (formerly Condition 3.5) was moved to Condition 11.3 and revised to include jet fuel and sustainable aviation fuel blend as allowable products that the referenced new infrastructure may be used to handle.

    • ​This condition prohibits Zenith from using new infrastructure for handling products other than renewable fuels (as defined in Portland City Code 33.910.030), jet fuel, sustainable aviation fuel jet fuel blend and non-fuel products.

  • Emissions calculation updates: DEQ corrected a vapor growth factor used in emissions equations and removed a redundant factor related to crude oil loading. These changes improve calculation accuracy but do not affect the facility's emission limits.

  • Recordkeeping and reporting: Zenith must track and report all product types handled in new infrastructure as part of its annual reporting.

  • Technical corrections and administrative updates: DEQ fixed regulatory citations, clarified language and updated references throughout the permit for clarity and consistency.


The proposed permit includes the following conditions, which are part of the City of Portland's land use compatibility statement.

  • Cessation of handling and storage of crude oil after Oct. 3, 2027

  • Prohibition of shipping or receiving crude oil from Railcar Rack 1A

  • Utilize new infrastructure only for loading and unloading renewable fuels, jet fuel, sustainable aviation fuel, sustainable aviation fuel jet fuel blends and non-fuel products

    The draft permit also reduces the facility's emission limit of volatile organic compounds to 39 tons per year, meeting the LUCS requirement of less than 40 tons per year.


Contact

For media inquiries:

Michael Loch 
Office of Communications and Outreach
503-737-9435