Give testimony on proposed amendments to reduce fuel storage capacity at bulk fuel facilities in northwest Portland

In this article

The Critical Energy Infrastructure (CEI) Hub Policy Project aims to further regulate bulk fuel facilities and support safety upgrades to reduce risks in the event of an accident or earthquake. This will be accomplished by updating policies in the Comprehensive Plan and amending the City code. The project will also support convening local, state and federal agencies to strengthen coordination needs to improve risk mitigation and response efforts among various agencies regulating the CEI Hub.

What is the CEI Hub?

The CEI Hub is a six-mile stretch of industrial land in northwest Portland along the Willamette River that stores 90% of Oregon's liquid fuel supply. Studies show that this area is vulnerable to earthquakes and other natural disasters, posing human health and environmental risks.

City Council package

There are two components of the project that will be considered by City Council during a Finance and Governance Committee of the Whole hearing on Sept. 16:

1. The Recommended Draft, which represents Planning Commission's recommendation to City Council on zoning code and Comprehensive Plan amendments.
2. The Bulk Fuel Terminal Capacity Reduction Regulations - or Capacity Reduction Program for short- which proposes a 20% reduction in fuel storage capacity by 2035. This program would be implemented through Title 17, the Public Improvements Code.

About the Recommended Draft

The Recommended Draft outlines the draft comprehensive plan policy and zoning code amendments to support risk reduction at bulk fuel terminals. The proposed amendments to the zoning code and the Comprehensive Plan were recommended to the City Council for approval by the Planning Commission in March.

Key elements of the proposal include:

• New and revised Comprehensive Plan policies related to the CEI Hub that support emergency preparedness, climate resiliency, and environmental protection,
• A prohibition on the expansion of storage tank capacity for all fuel types except aviation fuel.
• A limited 5 percent capacity expansion for aviation fuel storage
• Allowing for the transfer of fuel capacity from one site to another at another 20 percent reduction,
• Limiting the expansion of infrastructure that transfers fuel between storage tanks and different modes of transportation, also known as transloading infrastructure.

Read the Recommended Draft

About the Capacity Reduction Program Regulations

In addition to the proposed amendments to the zoning code and comprehensive plan, the City Council will consider adoption of a Bulk Fuel Terminal Capacity Reduction Program.

Key elements of the proposal include:

• Storage capacity requirements: Bulk Fuel Terminals must reduce their storage capacity by at least 20 percent by 2036.
• Inventory requirements:
• Terminals must provide a January 2027 inventory of existing capacity to serve as the baseline for the required capacity reduction.
• Terminals must provide a December 2036 in-service storage capacity inventory showing compliance with the proposed regulations.
• Review and compliance processes, and a penalty structure.

Read the Capacity Reduction Program Regulations

How to submit testimony

The Recommended Draft and Capacity Reduction Program will be considered by the Portland City Council during an upcoming hearing at the Committee of the Whole on Sep. 16. There are two ways to submit testimony to the City Council:

1. Submit written testimony through the project's Map App by Wednesday, Sep. 16 at 5 p.m. Written testimony for the Recommended Draft and the Capacity Reduction Program will be accepted separately.
   • Submit written testimony for the Recommended Draft
   • Submit written testimony for the Capacity Reduction Program
2. Give oral testimony at the hearing on Wednesday, Sept. 16. Registration for oral testimony will become live on the Council Clerk's website on Friday, Sept. 11 at 9 a.m.

Other project updates

In response to questions and concerns about the proposed CEI Hub regulations and the possible impact and future fuel supplies, the City of Portland commissioned an independent Economic Impact Analysis. This analysis includes an evaluation of the fuel demand model that informed the proposed regulations, and an economic assessment to understand how fuel prices might impact Oregon's economy.

Learn more about the Economic Impact Analysis.

Next steps

The City Council Committee of the Whole will consider oral and written testimony during a hearing on Wednesday, Sept. 16. During this hearing, the Committee may propose amendments and vote to refer the package for consideration at a regular City Council meeting. There will be another opportunity for the public to submit testimony at a future City Council meeting before the final vote.

Learn more and sign up for updates

More information about the project is available on the project website. You can also contact project staff with comments or questions by email at [email protected].

Sign up for project updates.