WEBVTT 1 00:08:03.442 --> 00:08:03.797 Good morning. 2 00:08:03.942 --> 00:08:07.576 I call this meeting of the Committee of the Whole of the Portland City Council to order. 3 00:08:07.882 --> 00:08:11.451 It is 9:33 AM on August 6th, 2026. 4 00:08:12.000 --> 00:08:13.052 Keelan, will you please call the roll? 5 00:08:13.697 --> 00:08:14.086 Good morning. 6 00:08:14.264 --> 00:08:14.733 Koyama Lane? 7 00:08:15.072 --> 00:08:15.201 Here. 8 00:08:15.639 --> 00:08:15.898 Morillo? 9 00:08:16.543 --> 00:08:16.658 Here. 10 00:08:17.093 --> 00:08:17.434 Novick? 11 00:08:17.579 --> 00:08:17.692 Here. 12 00:08:18.064 --> 00:08:18.403 Clark? 13 00:08:19.276 --> 00:08:19.536 Here. 14 00:08:20.069 --> 00:08:20.392 Green? 15 00:08:20.733 --> 00:08:20.942 Here. 16 00:08:21.476 --> 00:08:21.928 Timmerman? 17 00:08:23.562 --> 00:08:23.951 Avalos? 18 00:08:24.370 --> 00:08:24.500 Here. 19 00:08:24.613 --> 00:08:25.584 And can you turn the lights up? 20 00:08:25.988 --> 00:08:26.264 Thanks. 21 00:08:29.290 --> 00:08:29.689 Dunphy. 22 00:08:29.689 --> 00:08:30.069 Here. 23 00:08:30.069 --> 00:08:32.610 Smith. 24 00:08:32.610 --> 00:08:36.029 Pirtle-Guiney. 25 00:08:36.029 --> 00:08:37.950 Ryan. 26 00:08:37.950 --> 00:08:38.529 Kanal. 27 00:08:38.529 --> 00:08:40.490 Here. 28 00:08:40.490 --> 00:08:42.769 Christopher, will you please read the statement of conduct? 29 00:08:42.929 --> 00:08:44.249 Or Kevin, I'm not sure who's doing it today. 30 00:08:45.269 --> 00:08:47.690 Welcome to the meeting of the Finance and Governance Committee of the Whole. 31 00:08:47.690 --> 00:08:57.389 To testify before this committee in person or virtually, you must sign up in advance of the committee agenda at www.portland.gov/council/agenda/committee-whole or by calling 311. 32 00:08:57.389 --> 00:08:58.190 Information on engaging with the committee can be found at this link. 33 00:08:59.701 --> 00:09:02.298 Registration for virtual testimony closes 1 hour prior to the meeting. 34 00:09:02.427 --> 00:09:05.039 In-person testifiers must sign up before the agenda item is heard. 35 00:09:05.312 --> 00:09:06.866 Public testimony will be taken on an item. 36 00:09:06.931 --> 00:09:09.928 Individuals may testify for 3 minutes unless the Chair states otherwise. 37 00:09:10.201 --> 00:09:11.803 Your microphone will be muted when your time is over. 38 00:09:12.205 --> 00:09:13.086 The Chair preserves order. 39 00:09:13.167 --> 00:09:19.225 Disruptive conduct such as shouting, refusing to conclude your testimony when your time is up, or interrupting others' testimony or committee deliberations will not be allowed. 40 00:09:19.658 --> 00:09:21.309 If you cause a disruption, a warning will be given. 41 00:09:21.407 --> 00:09:23.313 Further disruption results in ejection from the meeting. 42 00:09:23.746 --> 00:09:26.440 Anyone who fails to leave once ejected is subject to arrest for trespass. 43 00:09:26.567 --> 00:09:29.004 Additionally, the committee may take a short recess and reconvene virtually. 44 00:09:29.501 --> 00:09:31.360 Your testimony should address the matter being considered. 45 00:09:31.490 --> 00:09:32.899 Testifying, state your name for the record. 46 00:09:33.140 --> 00:09:35.337 If you're a lobbyist, identify the organization you represent. 47 00:09:35.610 --> 00:09:37.982 Virtual testifiers should unmute themselves when the clerk calls your name. 48 00:09:38.159 --> 00:09:38.399 Thank you. 49 00:09:39.859 --> 00:09:40.179 Thank you. 50 00:09:40.565 --> 00:09:42.568 Appreciate everybody being here today. 51 00:09:42.664 --> 00:09:48.758 So today we have a couple items on our agenda that are continuations of our meeting from 2 weeks ago. 52 00:09:48.822 --> 00:09:59.500 After the committee chair updates, we'll have a continuation of the discussion of the potential transfer of the franchise from Zenith Energy Terminals Holding LLC to ISQ Springer Holdings LLC. 53 00:09:59.870 --> 00:10:00.945 We had the presentation. 54 00:10:01.009 --> 00:10:02.100 We'll hear the testimony now. 55 00:10:02.791 --> 00:10:05.759 We do have 50 people signed up for testimony last I checked. 56 00:10:07.188 --> 00:10:13.399 Then we have Vision Zero, which we'll call the presentation item and public hearing together and do the public hearing portion first. 57 00:10:13.448 --> 00:10:15.711 That's, I think, 4 people have signed up for that. 58 00:10:16.192 --> 00:10:22.533 And then if time is remaining, we'll have some of the responses from staff to the questions councilors raised 2 weeks ago. 59 00:10:23.240 --> 00:10:28.006 I'll note for the record that this is the exact plan we had 2 weeks ago at the end of the meeting, and no changes have been made. 60 00:10:28.054 --> 00:10:28.167 Thank you. 61 00:10:28.279 --> 00:10:28.940 Made to that plan. 62 00:10:30.163 --> 00:10:35.073 So we're going to ask that if you need the full 3 minutes, you will have it. 63 00:10:35.653 --> 00:10:41.653 But if you don't need it, please feel free to make sure that there's time for other folks who are waiting to testify as well. 64 00:10:42.659 --> 00:10:46.506 All right, can you please call the first item, Keelan? 65 00:10:48.672 --> 00:10:53.066 Item 1, document 2026-274, Committee Chair Updates. 66 00:10:53.711 --> 00:10:53.974 Thanks. 67 00:10:54.023 --> 00:11:01.942 I'll keep the committee chair update portion brief today other than of course we do have an update from Vice President I'm Council Vice President Olivia Clark, chair of the Public Works Committee. 68 00:11:02.856 --> 00:11:15.889 There have been some updates to the, the meeting calendar, and you'll see that things are just kind of, as they get locked in, being put into tentative and confirmed on the list or moved down as we know that we're going to need a little bit more time. 69 00:11:16.707 --> 00:11:21.163 Hopefully by next week we'll have the more information on the oversight hearings for the rest of the year. 70 00:11:22.591 --> 00:11:25.701 No updates on Part 2 or Part 3 at the moment. 71 00:11:26.504 --> 00:11:31.659 You'll see that we'll do part 4 in a second, which is the committee update from Chair Clark. 72 00:11:31.725 --> 00:11:41.812 But I did add a new council deadlines for administration just to show what things are being expected back from the administration to council as a way of increasing transparency. 73 00:11:42.326 --> 00:11:43.947 Colleagues, please feel free to send me more. 74 00:11:44.011 --> 00:11:51.144 The only one I had was something I knew about this week, which is the investment policy options report back due on August 31st. 75 00:11:52.587 --> 00:11:54.769 Any questions on that before I pass it over to Chair Clark? 76 00:11:56.227 --> 00:11:58.216 All right, Chair Clark, take it away. 77 00:11:59.081 --> 00:11:59.339 Great. 78 00:12:00.043 --> 00:12:00.557 Thank you, Mr. 79 00:12:00.605 --> 00:12:00.894 Chair. 80 00:12:02.369 --> 00:12:03.346 Quick update. 81 00:12:04.533 --> 00:12:05.672 Can everybody hear me okay? 82 00:12:06.457 --> 00:12:06.601 Good. 83 00:12:07.275 --> 00:12:07.996 Yes, thank you. 84 00:12:08.623 --> 00:12:13.898 At our last meeting, we had an excellent overview and discussion of autonomous vehicles. 85 00:12:14.652 --> 00:12:24.889 PBOT provided us with a report, and I was very interested To hear about their research of other cities where autonomous vehicles have been operating. 86 00:12:25.966 --> 00:12:27.265 They'll be coming back to us. 87 00:12:27.330 --> 00:12:34.475 We asked them to come back to us drafting an ordinance for us to discuss, hopefully in September. 88 00:12:35.118 --> 00:12:51.168 We also got an update on the work that's being done in preparation to implement the transportation utility fee and the street there's a lot of work to be done there before we can actually implement those in January. 89 00:12:52.460 --> 00:13:08.524 Tomorrow, our committee is going on a tour of the filtration plant, which is well-timed because at our committee meeting next Tuesday, we're going to be getting an overview of the oversight that's taking place of the project. 90 00:13:09.240 --> 00:13:12.815 And, um, Yeah, very well timed. 91 00:13:12.894 --> 00:13:21.356 And then we're also, uh, next week I think we're having, um, a discussion of, um, hold on just a second. 92 00:13:21.852 --> 00:13:32.221 Oh, uh, to kind of tease out in the Vision Zero, we're going to tease out some of the safety measures and talk more in more detail about what kinds of safety measures we can implement. 93 00:13:33.071 --> 00:13:34.321 Um, and that will be interesting. 94 00:13:34.369 --> 00:13:36.051 And then just a really quick update. 95 00:13:36.373 --> 00:13:42.505 Really quick update on what's going on with the waterfront, uh, the RFP, and just bringing us up to date on that. 96 00:13:42.586 --> 00:13:46.644 So with that, Mr. Chairman, that's my brief report. 97 00:13:48.433 --> 00:13:49.352 Thank you, Chair Clark. 98 00:13:49.417 --> 00:13:51.287 Any questions for Chair Clark? 99 00:13:51.335 --> 00:13:52.543 I see Councilor Green is in the queue. 100 00:13:54.277 --> 00:13:54.875 Uh, thank you. 101 00:13:54.972 --> 00:14:05.321 Not, not a question, just sort of affirming, since the, since the Public Works Committee will be a quorum on that trip, just want the public to know we're not we're not discussing any policy items related to the committee at all. 102 00:14:05.514 --> 00:14:07.965 We're just getting information from the bureau, right? 103 00:14:09.610 --> 00:14:09.931 Thank you. 104 00:14:11.248 --> 00:14:11.570 Thank you. 105 00:14:14.623 --> 00:14:14.912 Thank you. 106 00:14:14.960 --> 00:14:17.129 That concludes the chair update. 107 00:14:17.193 --> 00:14:20.658 So I will ask Keelan if you could please call item 2. 108 00:14:22.014 --> 00:14:31.009 Document 2026-263, consent to franchise transfer from Zenith Energy Terminals Holdings LLC to ISG. 109 00:14:31.110 --> 00:14:35.009 Q Springer Holdings LLC, amend Ordinance 188554. 110 00:14:36.341 --> 00:14:38.154 All right, I don't see anyone in the queue. 111 00:14:38.283 --> 00:14:39.615 We're ready to take testimony. 112 00:14:39.663 --> 00:14:48.379 So, uh, noting that for those who aren't immediately first, all the presentation and all that is in the meeting, um, records from 2 weeks ago, so the 23rd. 113 00:14:48.941 --> 00:14:51.124 Uh, and if you could please call the first panel, Keelan. 114 00:14:52.230 --> 00:14:57.817 Yeah, uh, let me— sorry, just want to go over a couple quick reminders here. 115 00:14:58.746 --> 00:15:01.893 I will call up testifiers in groups of 5. 116 00:15:01.972 --> 00:15:04.268 Each individual will have 3 minutes. 117 00:15:04.349 --> 00:15:09.660 For those testifying in person, you will see the timer countdown displayed on the monitor in front of the testimony table. 118 00:15:10.206 --> 00:15:13.047 For those testifying virtually, the timer is displayed in Zoom. 119 00:15:13.176 --> 00:15:19.274 You will hear the timer chime twice, once when there are 30 seconds left, then a second time when your time is up. 120 00:15:19.772 --> 00:15:22.836 Before you begin your testimony, please state your name for the record. 121 00:15:23.318 --> 00:15:24.844 All right, let's get started. 122 00:15:24.892 --> 00:15:32.663 Our first panel includes Lynn Handlen, Jules Bailey, Nick Caleb, Danny Noonan, Jerry Zhang. 123 00:15:34.061 --> 00:15:39.390 As people are, as people are coming up, I did also want to say thank you so much for your patience waiting the 2 weeks to do this. 124 00:15:49.216 --> 00:15:50.595 Ah, okay. 125 00:15:51.059 --> 00:16:00.533 Um, my name is Lynn Spitaleri-Handlin, and I'm speaking today on behalf of myself and many others who previously signed up to testify. 126 00:16:00.855 --> 00:16:10.104 In the interest of time, we've decided to provide a few collective testimonies summarizing our key concerns with the Zenith franchise transfer. 127 00:16:11.049 --> 00:16:22.831 Our hope is that by giving back agenda time to you, you'll be able to move more quickly on the one key action council can take now to make the Zenith and all CEI Hub thank you. 128 00:16:23.857 --> 00:16:33.764 Zenith Energy is a company with a history of violations, background deal— backroom deals, flat-out lies to the DEQ about their plans, which is getting worse. 129 00:16:34.357 --> 00:16:39.696 A company that poses many threats to the health and safety of the community, the rivers, and the environment. 130 00:16:39.888 --> 00:16:52.519 This and the city administration's inability or unwillingness to provide adequate oversight are why third-party enforcement and due diligence around ISQ's legal and technical history are so critical. 131 00:16:53.499 --> 00:17:12.577 In a short time, we have learned that ISQ has numerous worker safety, railroad safety, environmental, and other violations in the UK, lawsuits around business practices and investment strategies in New York City, allegations of fraud and malpractice settled by substantial payouts in Florida, and the list of bad goes on. 132 00:17:13.251 --> 00:17:19.445 This is why the community is asking for full transparency and documentation on the administrative review. 133 00:17:20.873 --> 00:17:40.557 ISQ has publicly stated it will continue to pursue expansion of the Zenith facility into a major fuel export hub, increasing the facility's risk to Portlanders by more fuel bomb train activity down the gorge and even more fuel storage on liquefiable riverbank soils. 134 00:17:41.391 --> 00:17:47.368 We know you understand that this brings only risk and no significant benefit to Portlanders. 135 00:17:48.186 --> 00:17:49.999 Our ask of you is simple. 136 00:17:50.608 --> 00:18:05.184 Make sure you're not creating a loophole by which the new owner, ISQ, can apply for facility expansions before you consider and implement the new zoning codes that will come from the CEI Hub policy project. 137 00:18:05.521 --> 00:18:22.256 The franchise transfer agreement should be conditioned, or a separate resolution should be passed, precluding expansion permits until the CEI Hub policy has been debated and implemented, especially given the nature of ISQ. 138 00:18:22.578 --> 00:18:30.395 And the more time you have, the more you may learn of how— what a bad idea this is. 139 00:18:31.057 --> 00:18:42.330 We understand the City Council faces a packed agenda of critical issues, but we also know that a catastrophe at the hub could erupt at any time. 140 00:18:42.670 --> 00:18:54.505 We stand behind council doing everything in your power to quickly pass the strongest possible CEI hub protections to make Portland's future safer and healthier. 141 00:18:54.731 --> 00:18:55.137 Thank you. 142 00:19:00.371 --> 00:19:01.800 Good morning, council. 143 00:19:02.011 --> 00:19:02.873 My name is Jules Bailey. 144 00:19:03.051 --> 00:19:09.330 I'm a former Democratic state representative, former chair of the House Energy and Environment Committee, and former board chair of the Oregon League of Conservation Voters. 145 00:19:09.381 --> 00:19:21.483 I'm appearing today in a consulting capacity with Skyline Renewable Energy, the Portland-based company backed by I Squared Capital and that is operating this— seeking to operate this terminal. 146 00:19:22.847 --> 00:19:24.903 I understand the history of this facility. 147 00:19:25.497 --> 00:19:31.019 Concerns about crude by rail, fossil fuel expansion, safety, and the conduct of the current operator are real. 148 00:19:32.063 --> 00:19:38.964 And you're hearing about them today from concerned citizens who earnestly want our city to meet its climate obligations and ensure community safety. 149 00:19:39.944 --> 00:19:40.634 I want the same thing. 150 00:19:41.807 --> 00:19:46.173 Approval today should not be understood as an endorsement of this facility's history. 151 00:19:47.249 --> 00:19:51.343 This smaller issue of a franchise agreement transfer is an opportunity to change it. 152 00:19:52.770 --> 00:20:02.757 Portland and Oregon have adopted policies requiring substantial reductions in carbon intensity of transportation fuels, including at least 50% renewable fuel, moving towards 99% in 2030. 153 00:20:03.383 --> 00:20:08.888 Those standards only work if there is reliable infrastructure to receive, store, and distribute lower carbon fuels. 154 00:20:09.884 --> 00:20:16.400 This terminal is already a major point of entry for renewable diesel, a fuel that's not only lower in carbon but also safer than crude. 155 00:20:17.041 --> 00:20:25.339 It's also the only terminal in Oregon with sustainable aviation fuel storage at scale, and it supplied the fuel used in PDX's first sustainable aviation fuel delivery. 156 00:20:26.494 --> 00:20:28.308 Renewable fuels aren't the final destination. 157 00:20:28.662 --> 00:20:35.419 Electrification remains essential, but for heavy-duty transportation and aviation, where full electrification is not yet available at scale, thank you. 158 00:20:35.578 --> 00:20:36.093 I'll be brief. 159 00:20:36.156 --> 00:20:39.464 To meet our climate goals at scale, renewable diesel and sustainable aviation fuel are necessary. 160 00:20:40.284 --> 00:20:49.868 Climate Solutions estimates that renewable diesel produces at least 60% fewer lifecycle greenhouse gas emissions than petroleum diesel, and often even less, and they work in existing engines. 161 00:20:51.298 --> 00:20:54.156 Council's not being asked to simply trust another operator's promises. 162 00:20:54.734 --> 00:21:03.260 I Squared is making this acquisition through its Energy Transition Infrastructure Fund, an Article IX fund with a mandate to invest in renewable fuels and clean energy infrastructure. 163 00:21:03.886 --> 00:21:09.218 And Skyline has committed to eliminate fossil fuel storage at this terminal by October 2027. 164 00:21:10.486 --> 00:21:13.038 This commitment is not merely a response to the current permit. 165 00:21:13.134 --> 00:21:17.357 It's part of the mandate of the investment vehicle being used to acquire the facility. 166 00:21:18.096 --> 00:21:20.297 And there are many layers of oversight already. 167 00:21:21.324 --> 00:21:23.973 I would not have agreed to work with Skyline without those commitments. 168 00:21:26.542 --> 00:21:30.666 The question before you is narrower than the history of this facility surrounding it. 169 00:21:30.796 --> 00:21:36.974 This is only about I Squared's technical, legal, and financial ability to operate and maintain the pipes in the street. 170 00:21:37.681 --> 00:21:39.109 The decision today is binary. 171 00:21:39.847 --> 00:21:47.182 Approving the transfer allows a new operator backed by an energy transition fund and investment mandate to replace the current owner. 172 00:21:47.712 --> 00:21:50.794 Denying the transfer does not eliminate the terminal or its existing permits. 173 00:21:51.098 --> 00:21:51.757 It leaves Zenith. 174 00:21:52.063 --> 00:21:52.433 In place. 175 00:21:53.660 --> 00:21:56.386 Portland created demand for cleaner fuels through public policy. 176 00:21:56.903 --> 00:22:04.769 Transit agencies, school bus fleets, trucking, aviation, and construction all need this facility to meet that demand, and I respectfully ask your approval of the transfer. 177 00:22:09.423 --> 00:22:09.520 Chair—. 178 00:22:09.520 --> 00:22:15.415 Excuse me— Chair Kanal, Vice Chairs Ryan and Koyama Lane, and esteemed City Council members, my name is Nick Caleb. 179 00:22:15.497 --> 00:22:17.424 I'm the climate energy attorney at Breach Collective. 180 00:22:17.957 --> 00:22:19.804 I'm registered with the city as a lobbyist. 181 00:22:20.638 --> 00:22:29.521 Since the last meeting on this topic, the city has been sued by Zenith demanding that a court cut public process short and force council's immediate consent to the franchise transfer. 182 00:22:30.277 --> 00:22:43.159 I suspect Zenith and I Squared were triggered by councilors' questions to the city attorney and staff, which clarified that council has full legislative authority here to deny, approve, or attach conditions to an approval and to conduct a full public process. 183 00:22:44.250 --> 00:22:49.768 Zenith and I Squared were hoping that you would see this as a purely rubber stamping exercise and are now trying to bully you. 184 00:22:50.329 --> 00:22:58.061 Unfortunately for them, public process has just begun because the public remains in the dark on essential information related to this proposed deal. 185 00:22:59.394 --> 00:23:13.317 The mayor's draft ordinance references documents that remain restricted from the public, including materials referenced in Sections 4, 8, 9, and 10, including but not limited to I Squared's alleged technical, legal, and financial qualifications and the city's assessment of those qualifications. 186 00:23:13.397 --> 00:23:13.734 I think that's a good point. 187 00:23:14.777 --> 00:23:19.650 I've been trying to gain access to documentation related to the terminal sale since April and have been getting the runaround. 188 00:23:20.643 --> 00:23:25.451 In April, I made a records request and received a single unrelated document. 189 00:23:25.932 --> 00:23:34.859 The city responded to a broader records request in May with a fee estimate pending alert that lasted over 2 and a half months, an extraordinary delay for an estimate in my experience. 190 00:23:35.868 --> 00:23:42.792 Interestingly, last week the city finally sent me some of the documentation I requested, including a few of the missing documents from my April request. 191 00:23:42.840 --> 00:23:42.969 Thank you. 192 00:23:43.563 --> 00:23:48.166 The city provided no explanation for why they had not provided those documents with the earlier release. 193 00:23:48.599 --> 00:23:54.278 Some of these records raise my eyebrows, to say it softly. 194 00:23:54.711 --> 00:23:59.188 Unfortunately, I have not received all the crucial documents referenced in the mayor's franchise ordinance. 195 00:24:00.006 --> 00:24:04.962 These documents form the basis of the mayor's recommendation for approval of this franchise transfer. 196 00:24:05.364 --> 00:24:09.278 The public requires this information for any meaningful engagement in this public process. 197 00:24:09.343 --> 00:24:09.535 Thank you. 198 00:24:10.372 --> 00:24:19.583 The city's failure to provide documentation referenced in the mayor's ordinance is an egregious failure of the city's obligations to the public, especially given the city's troubled history with Zenith. 199 00:24:20.242 --> 00:24:27.347 This context creates an appearance of a deliberate strategy to delay the release of full records until after the approval of this franchise transfer. 200 00:24:31.515 --> 00:24:34.721 This would not be the first time the city pulled a stunt like this related to Zenith. 201 00:24:35.142 --> 00:24:47.778 Last time, it resulted in a multi-year scandal and this city council finding in a resolution that high-level staff substantially undermine public confidence in the city's administrative apparatus by creating the appearance of impropriety. 202 00:24:48.369 --> 00:24:51.042 I expect we all would very much like to avoid a repeat. 203 00:24:51.782 --> 00:24:53.586 To conclude, my ask today is simple. 204 00:24:54.182 --> 00:25:01.617 Please make documents referenced in the mayor's ordinance available to the public with adequate time to review them before any council vote on this franchise transfer. 205 00:25:02.021 --> 00:25:02.313 Thank you. 206 00:25:06.303 --> 00:25:06.530 Okay. 207 00:25:06.873 --> 00:25:10.875 Chairs Kanal, Vice Chairs Ryan and Koyama Lane, Portland City Councilors, thank you for the opportunity to give testimony. 208 00:25:13.343 --> 00:25:15.317 For the record, my name is Danny Noonan. 209 00:25:15.654 --> 00:25:22.541 I am a registered lobbyist with the city on behalf of the 501 nonprofit Breach Collective, and I am giving my testimony in that capacity. 210 00:25:23.696 --> 00:25:30.890 This meeting takes place in the midst of a full-blown climate disaster in the form of a historic wildfire season in Oregon that will continue to worsen. 211 00:25:31.482 --> 00:25:32.784 This disaster is not an anomaly. 212 00:25:32.928 --> 00:25:39.719 June 2026 was the 2nd warmest June according to analyses of global weather data going back to 1850. 213 00:25:40.650 --> 00:25:45.907 2026 Is very likely to be among the top 5 warmest years on record and possibly the warmest. 214 00:25:46.891 --> 00:25:50.407 The 11 warmest years on record have occurred in the last 11 years. 215 00:25:51.960 --> 00:25:59.727 The brutal summer conditions we are now facing come after an incredibly warm and dry winter, with Oregon's snowpack over the last 12 months among the lowest on record. 216 00:26:00.480 --> 00:26:06.018 We are now also now entering into a super El Niño event in the Pacific Ocean that could drive temperatures even higher. 217 00:26:07.269 --> 00:26:12.507 These climate conditions should be reason enough for this council to be concerned about the expansion of fossil fuel infrastructure. 218 00:26:12.586 --> 00:26:28.217 But as you are well aware, there is the added problem that the city of Portland and approximately 90% of Oregon's liquid fuel storage is situated within the Cascadian subduction zone, in which there is a 37% chance of a 7.1+ magnitude earthquake within the next 50 years. 219 00:26:29.597 --> 00:26:46.053 This will liquefy the earth under Portland's critical energy infrastructure hub and cause the largest I'm sure you've heard this all before, and the reason I'm reciting these facts right now is that you don't seem to be acting like it. 220 00:26:46.778 --> 00:27:06.976 Yesterday, council held a hearing to consider the mayor's proposal to raid the Portland Clean Energy Fund for sports stadium renovations, removing resources that are supposed to be for community adaptation to conditions like these under the flimsiest of environmental and energy efficiency pretext, and cynically presenting this decision as a referendum on the city's economy. 221 00:27:08.589 --> 00:27:18.878 Today, council is considering rubber-stamping a franchise transfer from one of Portland's most notorious fossil fuel companies to an international venture capital firm with a particularly Byzantine corporate structure. 222 00:27:21.089 --> 00:27:30.909 Speaking of flimsy pretenses, we have heard and will probably continue to hear about how renewable fuels in this terminal are going to be part of Portland's future climate solutions. 223 00:27:31.913 --> 00:27:35.807 The reality is that renewable fuels usually still have a greenhouse gas emissions intensity. 224 00:27:35.855 --> 00:27:40.662 Sometimes this is marginally less than fossil fuels, sometimes it is more. 225 00:27:41.270 --> 00:27:46.942 Often there are environmental externalities associated with producing these renewable fuels that further diminish its purported benefits. 226 00:27:46.990 --> 00:27:53.112 Sometimes renewable fuels are just a way of outsourcing greenhouse gas emissions to agriculture and other sectors of the economy. 227 00:27:53.721 --> 00:28:14.925 The Port of Portland, Zenith, and I-Square Capital have all indicated they intend to expand fuel storage in this terminal, which flies in the face of economy-wide analyses that show that we need to wind down the use of all hydrocarbons and increase electrification, and which means that both the greenhouse gas emissions and the potential consequences of seismic risk may increase rather than decrease over time. 228 00:28:15.086 --> 00:28:16.930 Please give this decision the attention it deserves. 229 00:28:17.027 --> 00:28:17.303 Thank you. 230 00:28:20.119 --> 00:28:20.573 Good morning. 231 00:28:20.993 --> 00:28:21.933 My name is Jerry Zhang. 232 00:28:22.078 --> 00:28:24.394 I'm a, I'm a vice president here at I Squared Capital. 233 00:28:25.547 --> 00:28:28.576 We know this terminal carries a nuanced history in Portland. 234 00:28:29.153 --> 00:28:37.710 We're here because we'll be a different type of owner— long-term, committed to Portland and Oregon's clean energy goals, and responsive to this community. 235 00:28:38.623 --> 00:28:41.282 There are a few points that attracted us to make this investment. 236 00:28:42.147 --> 00:28:50.689 Number one, Oregon's clean fuel policies have made this, in the near term, one of the most attractive markets for renewable fuels anywhere in the country. 237 00:28:51.426 --> 00:28:54.249 On certain measures ahead of larger states like California. 238 00:28:54.954 --> 00:28:59.107 Number 2, our incentives and Portland's point in the same direction. 239 00:28:59.942 --> 00:29:04.559 We create the most value by converting this terminal to 100% renewable fuels. 240 00:29:05.329 --> 00:29:09.932 Succeeding here means delivering on Portland's and Oregon's clean energy goals. 241 00:29:10.925 --> 00:29:12.690 I want to make an important distinction here. 242 00:29:13.332 --> 00:29:17.404 The ultimate owner of the terminal asset will be our Energy Transition Fund. 243 00:29:17.500 --> 00:29:17.596 Thank you. 244 00:29:17.885 --> 00:29:19.185 Managed by I-Squared Capital. 245 00:29:19.891 --> 00:29:25.651 It matters which part of I-Squared is making this investment, and I-Squared manages several distinct funds. 246 00:29:26.469 --> 00:29:42.256 Our Energy Transition Fund adheres to EU's most rigorous sustainability standard with a core legally binding mission of investing in assets that genuinely move society towards a cleaner future, a mission that lines up with Oregon's and Portland's clean energy goals. 247 00:29:43.315 --> 00:29:47.148 Our commitment to safety and sustainability is backed by real capability. 248 00:29:47.968 --> 00:29:56.512 We are a global infrastructure investor that invests in essential services people rely on every day— energy, utilities, transportation, etc. 249 00:29:57.219 --> 00:30:04.253 We operate bulk fuel terminals in Europe and the Philippines, where regulatory compliance and safety are embedded within our core values. 250 00:30:05.329 --> 00:30:08.509 Consider the contrast between today's owner and the new one. 251 00:30:09.265 --> 00:30:13.489 Zenith is a Houston-based platform owned by 2 private equity firms. 252 00:30:14.083 --> 00:30:22.828 Zenith runs terminals across the country, whereas this facility is one of many in its portfolio, with other assets storing fossil fuel products. 253 00:30:23.535 --> 00:30:26.295 I Squared, on the other hand, is an infrastructure investor. 254 00:30:26.903 --> 00:30:34.991 The fund that's acquiring this asset is legally bound by EU's most rigorous sustainability standard, and this will be our only terminal in our fund. 255 00:30:35.586 --> 00:30:40.511 Our team will be based here in Portland, and our plan is to convert the asset to 100% renewable fuels. 256 00:30:40.559 --> 00:30:40.817 Thank you. 257 00:30:41.737 --> 00:30:47.684 We have the experience, financial strength, and values to operate this facility responsibly for the long term. 258 00:30:48.410 --> 00:30:51.391 We plan to retain the full team that operates this facility today. 259 00:30:52.115 --> 00:30:54.354 We will be good community partners and neighbors. 260 00:30:55.270 --> 00:31:00.884 Portland has a well-earned reputation for environmental stewardship, and we plan to contribute to that. 261 00:31:01.348 --> 00:31:02.013 Thanks for your time. 262 00:31:03.906 --> 00:31:04.507 Wow. 263 00:31:09.038 --> 00:31:21.276 Next panel includes Ben Harper, Randall Friesen, Samantha Hernandez, Jordan Lewis, Michaela McCormick. 264 00:31:27.662 --> 00:31:30.750 Good afternoon. 265 00:31:31.461 --> 00:31:34.843 My name is Ben Harper, and I'm head of sustainability here at I Squared Capital. 266 00:31:35.392 --> 00:31:36.770 And I want to thank you for your time today. 267 00:31:37.477 --> 00:31:54.137 I'd like to start by reiterating the change in ownership of this terminal is an opportunity to make a positive break from the past and for our team to operate a best-in-class facility in supporting the City of Portland and the State of Oregon in achieving its climate and sustainable fuel goals today and in the future. 268 00:31:55.355 --> 00:32:05.715 What should be most important to the council and to the community is knowing that we will be operating this terminal under the strictest regulatory framework requiring the utmost operational diligence. 269 00:32:06.501 --> 00:32:11.314 The regulation under which this terminal is operated does not allow us to simply promise a cleaner future. 270 00:32:12.099 --> 00:32:16.768 It requires us to deliver one and to prove it every year to the regulators. 271 00:32:17.634 --> 00:32:24.948 The commitment to convert this site to 100% renewable fuel by 2027 is not a press release, but it's a condition of our ownership. 272 00:32:26.007 --> 00:32:36.287 And that's because we're purchasing this terminal in a fund governed by the European Union's strictest sustainability regulation, the Sustainable Finance Disclosure Regulation, or SFDR. 273 00:32:37.521 --> 00:32:39.701 SFDR is a transparency framework. 274 00:32:40.183 --> 00:32:48.810 It requires asset managers like ourselves and other financial market participants to disclose how they handle sustainability in their investments. 275 00:32:49.868 --> 00:32:56.989 SFDR classifies funds and therefore investments into 3 tiers according to their environmental and social impact. 276 00:32:58.080 --> 00:33:03.237 Article IX, which applies to this facility, is by far the strictest here. 277 00:33:03.926 --> 00:33:09.516 And this is an important distinction for which I'd like to share what makes an Article IX fund investment different. 278 00:33:10.689 --> 00:33:16.502 So with an Article IX fund investment, the core of these regulations include 3 foundational components. 279 00:33:17.321 --> 00:33:23.568 One, the investment must, must be an economic activity that contributes to an environmental or social objective. 280 00:33:24.162 --> 00:33:32.306 And in this case, the environmental objective is to reduce carbon emissions from a very hard-to-abate industry like aviation and transportation. 281 00:33:33.460 --> 00:33:42.484 Second, the investee company must follow good governance practices, including mandatory yearly reporting requirements and other transparency mechanisms. 282 00:33:43.221 --> 00:33:47.679 And most— third and most importantly, the concept of do no significant harm. 283 00:33:48.063 --> 00:33:52.358 If you look at the regulations, you'll see the acronym DNSH, do no significant harm. 284 00:33:52.936 --> 00:34:03.108 This regulation requires us to evidence the operations so the concerns this council and community has raised are no longer just our reputation at stake. 285 00:34:03.594 --> 00:34:04.679 It's our legal obligation. 286 00:34:06.269 --> 00:34:10.639 Being an Article IX fund also elevates issues from reputational to regulatory relevant. 287 00:34:11.123 --> 00:34:16.880 Without inclusion in our Article IX fund, many concerns may be more reputational and community relations issues. 288 00:34:17.862 --> 00:34:38.333 Under Article IX, they feed directly into the do no significant harm test so I'd like to point out that the interest and safety in the— of the community and our financial interests point in exactly the same direction. 289 00:34:38.913 --> 00:34:39.170 Thank you. 290 00:34:44.369 --> 00:34:46.628 Good morning, Chair Kanal and council members. 291 00:34:47.047 --> 00:34:50.548 I am Randall Friesen, the executive secretary of the Columbia Pacific Building Trades Council. 292 00:34:50.597 --> 00:34:57.317 I'm here today representing over 20,000 construction professionals across the Portland metropolitan and Southwest Washington regions. 293 00:34:58.231 --> 00:35:05.219 Our council comprises 22 local unions whose members build and maintain the critical systems within the critical energy infrastructure hub. 294 00:35:06.309 --> 00:35:17.067 Because over 90% of Oregon's liquid fuel supply passes through this hub, this is a statewide infrastructure necessity, not just a local Portland issue, and it should be treated with that same level of gravity. 295 00:35:18.028 --> 00:35:25.059 Oregon, Multnomah County, and City of Portland have set climate reduction goals, and this terminal is necessary component to reach those goals. 296 00:35:26.039 --> 00:35:33.809 As outlined in the city's carbon reduction goals, fossil fuels need to be replaced by nearly 100% renewable gas and diesel by 2030. 297 00:35:34.403 --> 00:35:38.900 Any delay or actions to prevent the hub from moving forward puts these goals and mandates at risk. 298 00:35:40.344 --> 00:35:44.889 That means sustainable aviation fuel and renewable diesel are necessary to meet the state's climate goals. 299 00:35:45.733 --> 00:35:49.166 Renewable fuels are at least 60% carbon savings over petroleum fuel. 300 00:35:50.954 --> 00:35:56.592 Access to that fuel is necessary for construction equipment, trucks, and other heavy equipment to meet state and local mandates. 301 00:35:57.153 --> 00:36:11.907 We are proud that I Squared Capital is not only committed to accomplishing the nearly 100% renewable fuel mandate, but also committed to using union labor for system upgrades and safety improvements, highlighting the highest skilled and trained workforce in the construction industry. 302 00:36:11.954 --> 00:36:12.085 Thank you. 303 00:36:13.014 --> 00:36:16.269 Demonstrating their commitment to safety, quality, and family-wage jobs. 304 00:36:17.264 --> 00:36:32.710 With other renewable fuel projects on the horizon, such as Next Clean Energy, this hub is and will continue to help decarbonize 90% of the state's available fuel system while also helping show that Portland is soon to be ahead of the curve in the transition away from fossil fuels. 305 00:36:33.369 --> 00:36:48.570 We ask that the council, as you all carefully consider this proposal, to approve the franchise transfer, transfer within thank you very much for your time and careful consideration. 306 00:36:51.429 --> 00:36:52.349 Hello, Committee of the Whole. 307 00:36:52.349 --> 00:36:53.210 My name is Jordan Lewis. 308 00:36:53.449 --> 00:36:56.730 I'm a volunteer lobbyist for the Portland Democratic Socialists of America. 309 00:36:56.730 --> 00:37:04.489 I recently had the horror of reading in the news that fires in Spokane have destroyed nearly 1,000 homes and forced the evacuation of 70,000 people. 310 00:37:04.489 --> 00:37:09.494 Now wildfires threaten forests on Mount Hood, The Timberline Lodge may actually be destroyed. 311 00:37:09.958 --> 00:37:19.443 As we process this news, we are smothered in a thick white smoke which casts an orange haze on everything, blocks out the sun, gives us a constant mild headache, and leaves our tissues inflamed. 312 00:37:19.827 --> 00:37:24.362 The wildfire risk and smoke inhalation risk are no longer things we just read about on the news. 313 00:37:24.891 --> 00:37:29.201 It's getting harder and harder to change the channel or turn up the radio and ignore the new reality. 314 00:37:30.242 --> 00:37:37.418 When I moved to Portland in 2020, I actually lived in Clackamas area during the intense wildfire scare, which made the evening sun blood orange for a week straight. 315 00:37:38.253 --> 00:37:40.385 I was on an evacuation watch for several days. 316 00:37:40.753 --> 00:37:45.628 Our air conditioner broke, and so I was exposed to severe wildfire smoke, which essentially poisoned me. 317 00:37:46.172 --> 00:37:47.295 This was 6 years ago. 318 00:37:47.695 --> 00:37:51.320 We witnessed those horrors, and those stirred us to action, right? 319 00:37:52.186 --> 00:37:52.570 Not really. 320 00:37:53.467 --> 00:37:57.621 When you talk to younger people, ask yourself, will this person live a full and healthy life? 321 00:37:57.813 --> 00:38:00.907 Will this person have the luxury of dying peacefully of natural causes? 322 00:38:01.403 --> 00:38:06.759 The younger the person is, the more likely they will burn to death in urban wildfires like happened in LA, Hawaii, and now Spokane. 323 00:38:07.273 --> 00:38:09.983 They will experience heat waves coincident with rolling blackouts. 324 00:38:10.481 --> 00:38:13.496 They'll be drafted to fight in wars over scarcer and scarcer resources. 325 00:38:13.929 --> 00:38:19.512 They'll experience all kinds of new cancers as they inhale burnt forest, cars, and buildings from faraway conflagrations. 326 00:38:20.090 --> 00:38:26.313 When you talk to younger people you know will grow up in this world and you look back on how you spent your time in office, what will you tell them? 327 00:38:26.586 --> 00:38:29.811 That you knowingly traded away their future for guilt-free trips to the airport? 328 00:38:30.228 --> 00:38:33.485 That you undermined the Portland Clean Energy Fund to pay for cops who don't exist? 329 00:38:33.965 --> 00:38:44.617 That you made roads bigger and larger so that more fuels could be burned, that you watched public transit get gutted so that more fuels could be burned, that you rolled out the red carpet for a fuel terminal to get sold to private equity. 330 00:38:45.210 --> 00:38:48.210 I'm testifying in opposition to the transfer of the Zenith franchise agreement. 331 00:38:48.498 --> 00:38:50.936 A constant false sense of urgency is a sign of a scammer. 332 00:38:51.065 --> 00:38:57.288 I've seen this before from freeway expansion boosters, from the owners of the Trail Blazers, and from phone-based identity scammers. 333 00:38:57.657 --> 00:39:01.778 The point has always been to use urgency to lock the public out of public decision-making and to get unpopular. 334 00:39:01.860 --> 00:39:03.141 Popular decisions expedited. 335 00:39:03.639 --> 00:39:04.826 Good ideas hold up to scrutiny. 336 00:39:05.259 --> 00:39:09.347 The city attorney said last time the council has authority to attach conditions to the franchise agreement. 337 00:39:09.668 --> 00:39:10.744 That is public information. 338 00:39:11.193 --> 00:39:17.045 Zenith is already suing the city for the second time, hoping to silence people like me from our charter-mandated opportunity to testify. 339 00:39:17.670 --> 00:39:18.233 It's shameful. 340 00:39:18.713 --> 00:39:20.382 And beware greenwashing. 341 00:39:21.215 --> 00:39:23.219 People will come here and talk about the renewable fuels plan. 342 00:39:23.300 --> 00:39:27.244 Where were these people when the transportation package flopped and transit got defunded? 343 00:39:27.309 --> 00:39:39.639 That's going to result in a lot more Michaela is joining us online. 344 00:39:41.989 --> 00:39:43.681 Hello, I'm Michaela McCormick. 345 00:39:43.777 --> 00:39:50.213 I'm a member of Extinction Rebellion PDX, for whom I'm speaking. 346 00:39:51.478 --> 00:39:57.215 Some of what I will say is a repeat, and it's well worth repeating. 347 00:39:58.545 --> 00:40:07.077 It is an outrage that Zenith is suing the city to stop council's due diligence on I Squared's technical and legal qualifications. 348 00:40:07.927 --> 00:40:18.545 Zenith's past illegalities and shady practices are the very reason that the city administration should provide all documentation on the depth of their I Squared review. 349 00:40:19.556 --> 00:40:27.041 Zenith waited until the franchise hearings were in progress to sue are they afraid of what will be revealed in testimony? 350 00:40:28.307 --> 00:40:46.155 Without access to the city's vetting of I Squared, even a cursory search shows that I Squared's— I Squared's a giant private equity firm— has multiple red flags showing they have not put the safety and well-being of communities at the forefront. 351 00:40:47.277 --> 00:40:53.157 I Squared committed 18 law-breaking acts with associated fines in the UK. 352 00:40:53.702 --> 00:41:01.617 In the categories of workplace safety and health, labor standards, railroad safety, consumer protection, and the environment. 353 00:41:02.498 --> 00:41:17.065 There are lawsuits around I Squared's financial misconduct and regulatory compliance in New York, and suits alleging insurance fraud and business malpractice in Florida, with I Squared paying settlements without admitting liability. 354 00:41:17.978 --> 00:41:20.077 This does not bode well for Portland. 355 00:41:21.423 --> 00:41:38.628 Given city administrators' lack of willingness or inability to provide adequate oversight in the past, council should ensure protections have been built into the franchise agreement, such as a 3 to 5 year performance review with automatic termination for violations. 356 00:41:39.365 --> 00:41:48.648 Whatever decision council makes regarding the franchise, it is crucial that council pass an emergency resolution preventing fuel expansion permits. 357 00:41:49.083 --> 00:41:54.199 Until the CEI hub policy has been fully debated and implemented. 358 00:41:55.260 --> 00:41:56.128 Thanks for your attention. 359 00:42:00.166 --> 00:42:04.481 Right, uh, checking to see if Samantha Hernandez is here. 360 00:42:08.567 --> 00:42:12.644 Uh, next panel includes Heather King, Marnie Glickman, J.T. 361 00:42:12.693 --> 00:42:18.329 Hendricks, Diane Meisenhelter, John Rosapup. 362 00:42:23.914 --> 00:42:37.358 Go ahead. 363 00:42:37.760 --> 00:42:38.163 Oh, I'm first. 364 00:42:38.211 --> 00:42:39.099 Sorry, everyone. 365 00:42:39.648 --> 00:42:40.715 Um, good morning. 366 00:42:40.778 --> 00:42:42.005 My name is Marnie Glickman. 367 00:42:42.601 --> 00:42:48.938 I'm the executive director of Braided River Campaign, a registered city lobbyist, and a District 2 resident. 368 00:42:49.659 --> 00:42:59.972 We are here to ask you, our city council, to stand up against the fossil fuel industry bullying, stand up for the safety of Portlanders, and protect our local democracy. 369 00:43:00.951 --> 00:43:06.003 We ask you to make documents related to this franchise transfer available to the public. 370 00:43:06.757 --> 00:43:23.840 The mayor's draft ordinance lists documents in Sections 4, 8, 9, and 10 that are unavailable to us and spark concerns of a deliberate attempt by the mayor and high-level administrators to delay the release of these records until after the approval of the franchise transfer. 371 00:43:24.643 --> 00:43:31.677 And I want to specify high-level administrators because we know that most planners, support staff, council aides make the city work well. 372 00:43:32.657 --> 00:43:45.648 Portland residents and environmental stewards cannot evaluate the essential technical legal and financial information at issue or review the city's administration's own evaluation of this administration. 373 00:43:45.922 --> 00:43:50.659 And we need to look at these conclusions and they need to be made public. 374 00:43:51.139 --> 00:43:56.648 In other words, we are here to ask for the information we need to fully participate in our local democracy. 375 00:43:57.483 --> 00:44:07.293 This refusal to give the public full information about a matter of great interest mirrors efforts by the mayor and high-level administrators on the Moda Center issue. 376 00:44:07.518 --> 00:44:08.289 Moda Center issue. 377 00:44:08.561 --> 00:44:24.344 Project Mount Hood and the extreme discrepancies around housing money last fall and the recent exclusion of environmental leaders from final negotiations with PGE on a controversial project impacting ancient trees in Forest Park. 378 00:44:24.905 --> 00:44:28.351 This pattern of deceptive practices must come to an end. 379 00:44:28.831 --> 00:44:35.416 Transparency and accountability are essential ingredients in our climate emergency work plan and the future of our city. 380 00:44:36.605 --> 00:44:39.943 Renewable fuels are dangerous, toxic, and flammable. 381 00:44:40.536 --> 00:44:48.079 Even Portland City Code explicitly defines renewable diesel as being chemically the same as petroleum diesel fuel. 382 00:44:48.945 --> 00:44:51.947 Please consider the big picture when you make your decisions today. 383 00:44:52.396 --> 00:44:58.190 The unhealthy air we've been breathing and the wildfires generated by the climate crisis. 384 00:44:58.590 --> 00:45:00.452 People and wildlife are suffering. 385 00:45:01.222 --> 00:45:02.458 Remember our geography. 386 00:45:02.764 --> 00:45:12.782 We sit here just 5 miles from Zenith, Zenith is 300 yards from the Portland Harbor Superfund site and a few hundred yards from Forest Park. 387 00:45:13.440 --> 00:45:20.762 Zenith is also smack dab in the middle— oh my— of Portland's largest heat island, the CEI Hub. 388 00:45:22.110 --> 00:45:25.498 We heard I Squared Capital's promises to be good community partners. 389 00:45:25.563 --> 00:45:28.726 Let's ask them to agree to a third-party enforcement provision. 390 00:45:29.175 --> 00:45:38.746 They said today that they comply with important EU legal obligations maybe they will say yes to a meaningful local agreement for third-party enforcement. 391 00:45:39.375 --> 00:45:43.047 10 Years from now, will we look back and say, wow, look how far we've come? 392 00:45:43.500 --> 00:45:45.903 We are here to answer that question with you today. 393 00:45:46.065 --> 00:45:46.387 Thank you. 394 00:45:51.244 --> 00:45:55.989 Good morning, Chair Kanal, Vice President Ryan and Koyama Lane, and the members of City Council. 395 00:45:56.472 --> 00:45:57.050 My name is J.T. 396 00:45:57.097 --> 00:46:00.778 Hendricks, and I am a lifelong Oregonian who lives just up Highway 30 in Warren. 397 00:46:01.536 --> 00:46:06.978 I've had the honor of working at the Portland Terminal for the last 23 years under its previous 5 owners. 398 00:46:07.813 --> 00:46:13.992 As a member of this community, I place the highest importance on safe operations and steward of the environment, our environment. 399 00:46:14.472 --> 00:46:21.791 I've served as the terminal manager for the last 8 years, and I'm proud to report there have been no reportable spills during that time, during my time as terminal manager. 400 00:46:22.481 --> 00:46:26.798 The Portland Terminal is the largest renewable fuel storage facility in Pacific Northwest. 401 00:46:27.489 --> 00:46:38.994