Portland, Ore.— The Oregon Department of Environmental Quality today requested a land use compatibility statement, or LUCS, from Zenith Energy to cover operations on adjacent properties before the agency can proceed with the air quality permitting process. Additionally, DEQ issued a $372,600 fine to Zenith for unauthorized use of the McCall dock between April 2021 and June 2024.

DEQ requested Zenith to provide a LUCS issued by the City of Portland that includes these operations within 60 days, or by Feb. 4, 2025. DEQ determined that the LUCS Zenith submitted in 2022 for its Title V air quality permit renewal and new Air Contaminant Discharge Permit applications does not cover the McCall and Chevron properties adjacent to Zenith’s terminal, where Zenith loads fuel onto ships at marine docks.

The $372,600 penalty is for operating at the McCall dock without authorization under Zenith’s air quality permit. Zenith did not seek authorization from DEQ to use the dock until after the agency requested information and sent a warning letter. Zenith later obtained DEQ authorization in June 2024. Zenith has 20 days to appeal the penalty.

“Ensuring compliance with all environmental regulations and land use laws is critical to protecting public health and the environment and maintaining trust in the regulatory process,” said Christine Svetkovich, DEQ’s northwest region administrator. “DEQ remains committed to holding all permitted facilities accountable to these standards.”

The air quality permitting process is on hold while Zenith responds to DEQ’s request for a LUCS. Zenith may continue to operate under its current Title V air quality permit during that time.

Unlike in 2021, when DEQ denied Zenith’s permit renewal application because it was incomplete, this is not an application denial. Zenith later submitted a revised Title V permit renewal application which DEQ determined was complete in October 2022, as well as a new Air Contaminant Discharge Permit application which DEQ determined was complete in January 2023. Under DEQ rules, if the agency is reviewing a completed application and determines that additional information is needed, it must request the information in writing and provide a reasonable deadline for the applicant to respond.

DEQ will hold a virtual 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. Attend virtually on Zoom at ordeq.org/ZenithInfoMtg-Dec2024, or join via phone by calling 253-215-8782 and entering Webinar ID: 868 5013 9436, Passcode: 582325.

For more information, visit ordeq.org/zenith and sign up for email and text updates through GovDelivery.

Media contact: Michael Loch, public affairs specialist
michael.loch@deq.oregon.gov
503-737-9435

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