WEBVTT 1 00:07:01.725 --> 00:07:02.420 People need a little—. 2 00:07:02.696 --> 00:07:04.392 Good afternoon. 3 00:07:04.458 --> 00:07:07.043 I'm calling to order this work session of the Portland City Council. 4 00:07:07.697 --> 00:07:09.379 Colleagues and the public, hello. 5 00:07:10.076 --> 00:07:17.822 Today we are holding a work session on the 2 legislative items related to the Critical Energy Infrastructure, or the CEI Hub. 6 00:07:18.629 --> 00:07:23.648 One item makes changes to Title 13 and 24, and one makes changes to Title 17. 7 00:07:24.100 --> 00:07:26.245 The Bureau of Planning and Sustainability has advanced these items as a package. 8 00:07:26.300 --> 00:07:36.338 This item was originally scheduled to be heard in the Committee of the Whole pursuant to Portland City Code 3.02.020.B Sub 1A Sub 1 Sub B. 9 00:07:37.411 --> 00:07:43.903 4 Councilors submitted letters requesting that this item be heard instead in full council, which has the same effect as a referral to full council. 10 00:07:44.625 --> 00:07:49.177 Following that action, my, my office scheduled an informational work session prior to these first readings. 11 00:07:49.932 --> 00:07:54.196 This, this is a common practice for complex legislation. 12 00:07:54.483 --> 00:08:11.473 These items are scheduled to be heard at full council next Thursday, September 24th, at a time certain of 2:00 As previously stated on the record at the Committee of the Whole on September 16th, this work session will include a presentation by city staff and a council question and answer session with staff. 13 00:08:11.906 --> 00:08:25.399 Additionally, council has requested brief informational presentations from the Oregon Department of Environmental Quality and a balanced panel— set of panels of representatives from engaged environmental and industrial industry organizations. 14 00:08:26.314 --> 00:08:30.944 Council will not take other public testimony, vote, or take any action at the work session. 15 00:08:30.992 --> 00:08:31.105 Thank you. 16 00:08:31.747 --> 00:08:46.144 Our goal today is to educate council and the public on the underlying legislation of what has been recommended by the Planning Commission and the administration's proposed Title 17 amendments, as well as the state-level administrative actions with which this council's work is in conversation. 17 00:08:47.495 --> 00:08:57.054 As public interest and lobbying activity on this legislation has been high and led by a few key organizations, we've also invited a balanced section of these advocates to present their positions to council. 18 00:08:57.392 --> 00:09:08.225 Our goal is to enter our formal hearings next week with every member of this body and the public record having a reasonably equal understanding of what it is before us for consideration. 19 00:09:08.369 --> 00:09:18.192 Colleagues, we will be limiting Q&A to strictly clarifying questions during presentations and engaging in free and open Q&A with the Planning and Sustainability staff in the second half of the meeting. 20 00:09:19.186 --> 00:09:21.669 With that, I will now turn this over. 21 00:09:22.071 --> 00:09:22.486 Thank you, sir. 22 00:09:23.306 --> 00:09:26.177 To BPS staff to make their first presentation. 23 00:09:26.549 --> 00:09:28.982 Welcome, Director Engstrom and your whole team. 24 00:09:35.164 --> 00:09:37.501 Good afternoon. 25 00:09:37.842 --> 00:09:42.023 Um, for the record again, I'm Eric Engstrom, the Director of the Bureau of Planning and Sustainability. 26 00:09:42.761 --> 00:09:57.833 Um, I have with me, um, Tom Armstrong, who will give the bulk of our presentation to keep things efficient, but also joining me is Patricia Dieffenderfer, Chief Planner, Eli Spivak representing the Planning Commission's recommendation here today. 27 00:09:57.913 --> 00:10:03.110 And then we also have a few other planning and sustainability staff in the room should there be more technical questions. 28 00:10:03.158 --> 00:10:08.815 So with that, I will turn it over to Tom once he's got the presentation loaded. 29 00:10:11.220 --> 00:10:11.673 All right. 30 00:10:11.964 --> 00:10:12.692 Thank you, Eric. 31 00:10:13.096 --> 00:10:14.682 For the record, I'm Tom Armstrong. 32 00:10:14.730 --> 00:10:22.134 I'm a supervising planner at the Bureau of Planning and Sustainability and have been managing this project. 33 00:10:23.352 --> 00:10:41.355 This afternoon, I'll go through some of the basic elements of the 2 ordinances that are before you, starting with a little bit of background on the purpose and process that we went through, and then go through each of the elements in this legislative package. 34 00:10:42.413 --> 00:10:45.090 Again, there are 2 ordinances in front of you. 35 00:10:45.860 --> 00:10:49.129 The first one is a land use decision. 36 00:10:49.241 --> 00:10:59.840 It's comprehensive plan policy amendments and amendments to Title 3, 33, the zoning code, and also Title 24, which is the building code. 37 00:11:00.356 --> 00:11:11.355 And then the second ordinance is a new program in Title 17, which deals with storage capacity reduction over time. 38 00:11:13.442 --> 00:11:19.975 Again, as part of the council legislative process, we've established 2 different legislative records. 39 00:11:20.673 --> 00:11:37.452 Which is where all you can find all of the background information that has gone into this process, the other background reports, the energy forecasts, all of the information that is available to you to inform your decision. 40 00:11:38.660 --> 00:11:41.221 So a little bit about the project purpose and scope. 41 00:11:42.427 --> 00:11:56.725 We set out about a year and a half ago to update the policies and regulations, development regulations, to reduce the risks associated with bulk fuel terminals in the CI Hub. 42 00:11:57.288 --> 00:12:04.384 The CI Hub is that area along Highway 30 and the Willamette River in Northwest Portland. 43 00:12:04.514 --> 00:12:14.769 Currently, there are 11 bulk fuel terminals that have about 315 million gallons of fuel storage spread across those 11 terminals. 44 00:12:16.398 --> 00:12:23.219 The fuel we get primarily comes from the refineries up in the Puget Sound region. 45 00:12:23.830 --> 00:12:34.388 About 2/3 of the fuel comes to us via the Olympic Pipeline, which you see here in red, where Portland is the terminus of that pipeline. 46 00:12:34.614 --> 00:12:37.807 The other third, most of it comes via barge. 47 00:12:38.260 --> 00:12:40.187 Up the Columbia River to Portland. 48 00:12:41.677 --> 00:12:51.363 And then we get a little bit via rail coming from refineries in Montana and Salt Lake City. 49 00:12:53.317 --> 00:13:00.653 Where the fuel goes is, you know, a lot of it stays within the Willamette Valley itself. 50 00:13:01.874 --> 00:13:07.687 There is a small pipeline down to Eugene where there is a smaller Uh, terminal down in Eugene. 51 00:13:08.346 --> 00:13:17.144 Uh, about 10% of it goes upriver via barge to serve Eastern Oregon, Eastern Washington, parts of Idaho. 52 00:13:17.774 --> 00:13:23.754 The rest is distributed throughout the state via truck from the terminals in the CI Hub. 53 00:13:25.356 --> 00:13:33.509 At the same time, the CI Hub is located on land, you know, river-adjacent land is sediment. 54 00:13:35.282 --> 00:13:36.551 Thank you. 55 00:13:38.527 --> 00:13:45.001 The Hub is located on lands that are at high risk of liquefaction. 56 00:13:46.006 --> 00:13:52.326 It is also adjacent to Forest Park and subject to wildfire risk. 57 00:13:53.376 --> 00:14:10.451 And that, you know, should an accident or an event occur at the Hub, the spillover effect includes The potential of spreading wildfires, spills to the river, and toxic air quality concerns throughout Portland. 58 00:14:11.139 --> 00:14:13.654 A little bit about our process. 59 00:14:14.889 --> 00:14:21.250 We got started with you all back in March of 2025 with a work session similar to this. 60 00:14:22.403 --> 00:14:33.365 Following that, we started a process where we held a series of community meetings to outline the process and start talking about concepts and alternatives. 61 00:14:34.601 --> 00:14:46.570 We really followed that up in the summer of 2025 with small group meetings to really start to talk through what those concepts might look like. 62 00:14:47.596 --> 00:15:02.303 We then held a collaborative work session, a facilitated work session with all parties, both business and industry and community groups to really hear from each other and to begin to shape these alternatives. 63 00:15:03.313 --> 00:15:16.264 In September of '25, we released a discussion draft that had 4 alternatives in it, and we kicked off a broader public information engagement process to get feedback on those alternatives. 64 00:15:17.418 --> 00:15:32.217 Once we got feedback on those alternatives, we held another collaborative work session That helped inform primarily what we as BPS staff went into what we called a proposed draft. 65 00:15:33.517 --> 00:15:36.296 And that is what went before the Planning Commission. 66 00:15:36.360 --> 00:15:44.335 That mainly was the comprehensive plan policy amendments and the zoning code, Title 33 zoning code amendments. 67 00:15:45.894 --> 00:15:51.504 The Planning Commission went through their process of hearings and work session deliberations. 68 00:15:52.113 --> 00:15:56.721 Before they came out with their recommendation in March of this year. 69 00:15:57.732 --> 00:16:07.254 Following that, we turned our attention to the Title 17 Capacity Reduction Program and crafting those regulations. 70 00:16:07.928 --> 00:16:16.871 We did a community engagement process around a draft of those regulations through June of this year. 71 00:16:17.565 --> 00:16:22.260 And then we published the proposal in August of this year. 72 00:16:23.313 --> 00:16:33.379 Throughout this whole process, we've engaged our bureau partners, particularly BES Permitting and Development. 73 00:16:34.188 --> 00:16:44.264 We also convened an interagency workgroup with other state agencies, primarily DEQ, to get feedback on, on our proposals. 74 00:16:44.778 --> 00:16:52.307 And then in addition, we engaged tribal governments and nonprofit organizations in the Portland area. 75 00:16:53.191 --> 00:17:08.268 At each of these steps, with the tribal government engagement, we were emailing tribal staff notice of where we were in the process, what the latest draft was available, and our availability to talk about those. 76 00:17:08.846 --> 00:17:26.442 I would say we have been most engaged with tribal staff from the Grand Ronde Tribe and back and forth with them throughout this process leading up even to the council process that we are starting today. 77 00:17:28.189 --> 00:17:31.818 Some key issues that we've heard from all parties. 78 00:17:32.576 --> 00:17:38.306 I think we heard most strongly from the community about wanting to reduce the storage capacity. 79 00:17:38.375 --> 00:17:38.498 Thank you. 80 00:17:39.388 --> 00:17:47.471 In the CEI hub over time and to really push it as far as we can. 81 00:17:49.089 --> 00:18:11.009 From industry, we've heard a lot of concern about those limits and about reducing capacity and how that will affect their flexibility, how it might reduce resilience of the hub overall, might affect other climate programs such as our renewable fuels program. 82 00:18:12.329 --> 00:18:15.124 And then from the rest of Oregon, we've heard concerns. 83 00:18:16.568 --> 00:18:33.771 We've heard concerns and wanting to acknowledge that the decisions that we make here in Portland have an impact on the rest of the state because the hub, you know, provides 90% of the liquid fuels that are consumed in Oregon. 84 00:18:34.030 --> 00:18:37.794 And so we've been sensitive to those concerns as well. 85 00:18:40.815 --> 00:19:08.809 Particularly in terms of regulatory context and how development regulations— we've worked a lot with DEQ, and you'll hear from DEQ later this afternoon around their programs and wanting to ensure that our new rules don't interfere, particularly with DEQ's fuel tank seismic stability program that will require seismic upgrades over the next 10 years. 86 00:19:09.324 --> 00:19:18.559 And so we wanted to make sure, and we've worked a lot with DEQ staff to make sure that these programs work together. 87 00:19:19.443 --> 00:19:30.270 And I think you'll hear about that both from our presentation and from So a little bit about the details before you. 88 00:19:30.352 --> 00:19:47.058 In terms of comprehensive plan policies, you'll see we're making some adjustments to existing policies, and, and also we're bringing forward a set of new policies that are specific to the Critical Energy Infrastructure Hub. 89 00:19:48.201 --> 00:19:50.157 This is an umbrella policy for the critical energy infrastructure hub. 90 00:19:52.077 --> 00:20:05.391 And we have a number of sub-policies that address the key issues, especially as they relate to bulk fuel terminals and what we're looking for to happen in that. 91 00:20:05.471 --> 00:20:19.537 And this is really a balance between safety, seismic upgrades, environmental protection, and at the same time recognizing the economic significance that the hub plays. 92 00:20:20.114 --> 00:20:20.994 And so we're trying to balance those things. 93 00:20:21.042 --> 00:20:21.138 Thank you. 94 00:20:26.205 --> 00:20:32.395 We have a number that speak to a number of different elements that come into play as part of that. 95 00:20:33.260 --> 00:20:41.807 And these are all policy directions that not only inform these actions, but future actions and projects that occur in the hub. 96 00:20:42.913 --> 00:20:48.734 A little bit more detail about the zoning code and building code amendments. 97 00:20:48.815 --> 00:20:49.007 Thank you, Mayor. 98 00:20:49.615 --> 00:21:03.386 First, as a starting point, you know, we went through a process from 2016 to 2022 to adopt limits on these fuel terminals. 99 00:21:04.540 --> 00:21:14.929 We started with a prohibition on new fuel terminals, and we currently list the existing fuel terminals from expanding their fossil fuel storage capacity. 100 00:21:16.789 --> 00:21:39.308 At the same time, those terminals are currently allowed unlimited expansion for aviation fuel and renewable fuels and unlimited expansion for transloading infrastructure— the pipes, the offloading racks, the pumps that move the fuel through the system in between the transportation modes. 101 00:21:40.624 --> 00:21:47.942 We allow for the repair and replacement and what we call the reconfiguration of storage tanks. 102 00:21:48.039 --> 00:21:57.309 So that allows the terminals to take a large tank and make it into smaller tanks that allow them flexibility as market demands change. 103 00:21:58.115 --> 00:22:11.862 An important thing that you see in this air photo here is that we define a bulk fossil fuel terminal as a terminal having 2 million gallons of storage capacity. 104 00:22:12.573 --> 00:22:16.288 And what you see in the middle here is, is that is one large tank. 105 00:22:17.074 --> 00:22:25.005 So any, any facility with multiple tanks is going to be classified as a bulk fuel terminal. 106 00:22:27.650 --> 00:22:37.203 The recommended changes before you in the zoning code are to limit the expansion for all fuel types. 107 00:22:37.686 --> 00:22:46.934 And so that sort of takes away the unlimited ability to expand for aviation fuel and for renewable fuels. 108 00:22:48.577 --> 00:23:01.452 We allow some transfers between terminals and some aviation fuel expansion through a Type 3 land use review that includes public notice. 109 00:23:02.284 --> 00:23:08.092 Public comment, a hearings officer decision that is appealable to council. 110 00:23:09.720 --> 00:23:27.519 We are also limiting the expansion of transloading infrastructure, again, with a process there, a Type 3 land use review process as a relief valve for any transloading expansion. 111 00:23:28.267 --> 00:23:35.439 We continue to allow for the repair, replacement, and reconfiguration of the existing storage tanks and infrastructure. 112 00:23:35.887 --> 00:23:48.257 And again, that's the key that sort of lines up with the DEQ seismic stability program and all of the investments and changes that the terminals are going to have to make as a result of those requirements. 113 00:23:49.701 --> 00:23:53.326 There is a recommended building code change. 114 00:23:53.874 --> 00:24:04.691 To Title 24 to require a building permit for structural support for any piping carrying hazardous materials. 115 00:24:05.204 --> 00:24:19.097 This really is sort of to make it explicitly clear that PP&D plays a role that is similar to what is already in the fire code and the role that the Fire Bureau plays. 116 00:24:19.815 --> 00:24:34.443 But we included this at the request of PP&D just to sort of make it explicitly clear of what is required as part of any of those improvements. 117 00:24:36.125 --> 00:24:39.569 Terbs, now for the Title 17 code amendments. 118 00:24:41.563 --> 00:24:44.053 This is the capacity reduction regulation. 119 00:24:44.672 --> 00:24:47.503 We have a— and I'll go through each of these requirements. 120 00:24:49.325 --> 00:25:05.609 The first one is, is we have a capacity reduction requirement that all the terminals must reduce their in-service fuel storage capacity by 20% of what is in service as of January 1st, 2027. 121 00:25:05.965 --> 00:25:09.423 And they have to do that by December of 2036. 122 00:25:10.394 --> 00:25:21.684 And the 2036 date, we selected because we envision that these terminals are going to have to make all of the seismic improvements. 123 00:25:22.278 --> 00:25:35.047 They're going to have to be pulling tanks and capacity offline to do those seismic improvements, and they're going to need that flexibility to— as they move and do the seismic improvements. 124 00:25:35.913 --> 00:25:44.933 But what we want to do is send a clear signal to the terminals that by the time you make all those seismic improvements, You should be— plan to be 20% smaller. 125 00:25:47.269 --> 00:25:51.189 We have a couple of exemptions from that reduction requirement. 126 00:25:52.272 --> 00:25:57.256 The first is storage capacity for a regulated public utility. 127 00:25:58.080 --> 00:26:05.034 One of the terminals out there is a Northwest Natural liquefied natural gas terminal. 128 00:26:05.904 --> 00:26:08.664 It is used for peak wintertime heating demand. 129 00:26:08.881 --> 00:26:09.593 I think that's a good example. 130 00:26:10.102 --> 00:26:11.498 It is a single tank. 131 00:26:11.801 --> 00:26:16.644 It is 7 million gallons of storage capacity, but it is a single tank. 132 00:26:17.142 --> 00:26:30.436 And rather than requiring them to dismantle that tank and make it smaller, we just are not allowing them to expand their storage capacity, but keep that in place. 133 00:26:31.335 --> 00:26:35.808 The second one is for aviation fuel capacity. 134 00:26:36.385 --> 00:26:47.209 And I'll show you in a minute, but aviation fuel is the one fuel type that is expected to grow in demand over the next 25 years. 135 00:26:48.348 --> 00:27:01.403 And so we— and similar to the 5% expansion process, we wanted to preserve that capacity to serve that need as well. 136 00:27:02.079 --> 00:27:20.859 And then the other exemption is for any terminal that actually goes through the Type 3 review process to get additional capacity, that would be exempt from the reduction requirement itself. 137 00:27:21.567 --> 00:27:27.787 And that applies to both any transfers that occur and the aviation fuel storage expansion review. 138 00:27:29.781 --> 00:27:35.450 We have set up in that code a baseline inventory process. 139 00:27:36.461 --> 00:27:39.945 We want to understand where everybody is at today. 140 00:27:40.876 --> 00:27:52.983 The various data sources that we have don't always line up, so we want to make sure that we understand where everybody is as of January 1st, 2027. 141 00:27:54.127 --> 00:28:01.342 And that we would repeat that process in 2036 to ensure everybody has met the reduction requirement. 142 00:28:02.780 --> 00:28:10.913 We have enforcement procedures and penalties, both for those— that inventory and reporting requirement. 143 00:28:11.784 --> 00:28:23.123 The $12,000 per day, $24,000 per day after 30 days is similar to what the DEQ requires for their process that they're currently going forward. 144 00:28:23.171 --> 00:28:23.381 Thank you. 145 00:28:24.808 --> 00:28:40.329 And then in 2036, for a violation of the reduction requirement, we have proposed $0.25 per gallon per day for every gallon that they have not reduced their capacity by. 146 00:28:42.210 --> 00:28:49.288 As a, you know, one of the things that we heard clearly from the community was that these penalties need to be meaningful. 147 00:28:50.016 --> 00:28:52.796 And can't be just written off as a cost of doing business. 148 00:28:53.487 --> 00:28:58.644 We think these levels get us there in terms of that meaningfulness. 149 00:29:01.097 --> 00:29:07.123 Underpinning all of these, how we've calibrated these requirements, is fuel demand modeling. 150 00:29:08.121 --> 00:29:13.696 Again, this gets at the concern that we want to reduce the risk at the hub. 151 00:29:14.117 --> 00:29:21.619 At the same time, we want to continue to provide the fuel that our economy will need going forward. 152 00:29:22.085 --> 00:29:42.588 I think the first one is that when we look back, even, you know, back over the last 30 years, even as Oregon and the region has grown both in terms of population and our economy, we've seen that fuel demand be flat to declining. 153 00:29:43.993 --> 00:29:51.422 So we haven't seen a lot of need for expanding the hub, especially this is Oregon data. 154 00:29:52.151 --> 00:29:53.922 The Washington data looks similar. 155 00:29:55.589 --> 00:30:04.300 And so despite all that growth, we've had a flat, in terms of a flat curve in terms of fuel consumption. 156 00:30:05.990 --> 00:30:18.035 When we look out forward, we're looking at a couple of different sources, but the first one we started with was some fuel consumption forecasts from the federal government. 157 00:30:18.982 --> 00:30:34.949 And this is where you see that there's forecasted decline in petroleum, and, and that includes renewables in there, with the jet fuel being the one component that is expected to increase in demand. 158 00:30:36.059 --> 00:30:41.838 But jet fuel makes up about 10% of the fuel out in the hub today. 159 00:30:44.069 --> 00:30:45.049 We did our own modeling. 160 00:30:46.470 --> 00:31:00.672 We hired Parametrics, a consulting firm here in Portland, to look at the fuel consumption data, look at the policies that are expected to influence fuel demand. 161 00:31:00.817 --> 00:31:09.787 All of our climate carbon reduction policies, and how are those expected to influence the fuel demand. 162 00:31:10.237 --> 00:31:20.144 We ran a number of different policy scenarios looking at fuel consumption and what the hub is expected to provide. 163 00:31:21.010 --> 00:31:26.534 What you see here, the dashed line there is at the end of 2036. 164 00:31:27.353 --> 00:31:37.077 The horizontal line at that 80% level is really what the hub is running at today, about 75 to 80% capacity. 165 00:31:37.943 --> 00:31:51.874 We see a slight increase over the next 5 to 6 years, 7 years of fuel demand, and then we really see our policies start to take hold and really drive down the demand for liquid fuels. 166 00:31:52.771 --> 00:31:59.599 In particular, We've sort of based our proposals on that red line, which we call delayed progress. 167 00:32:00.483 --> 00:32:23.133 So one of the things that we heard a lot is that given our current federal policy environment, you know, the lack of electric vehicle incentives, uncertainty around fuel efficiency requirements, What would that mean to our fuel demand curves? 168 00:32:23.567 --> 00:32:39.259 And so we built into that scenario what we call a delayed progress, a delay in the uptake, a delay, a lower level of EV conversions to sort of, you know, be a hedge against that in our demand curves. 169 00:32:39.307 --> 00:33:01.888 And that really is what we're looking at is that We don't expect a lot of need for expanded capacity in the hub and that we can reduce it over time and, you know, that we're not gonna need that even planning for growth out to 2036. 170 00:33:03.815 --> 00:33:12.375 We took that model, we heard concerns, we asked another consulting firm, Eco Northwest, to do an evaluation of that model. 171 00:33:13.185 --> 00:33:28.481 I think they recognize some of the things that Parametrics did in terms of the uncertainty of where we're at today and, you know, some of the data availability challenges that we face. 172 00:33:29.648 --> 00:33:44.569 But at the end of the day, you know, the model results show that, you know, a potential outcome is that our proposed regulations will not impact the price of fuel. 173 00:33:46.119 --> 00:33:57.483 The other question that we asked Econ Northwest was, well, set that aside, how do fuel price impacts affect the economy, particularly in Oregon? 174 00:33:57.981 --> 00:34:06.596 Regardless of where they come from, whether it's our regulations or foreign policy decisions, how does that affect the economy overall? 175 00:34:07.292 --> 00:34:27.733 I think what they— a couple of key things they found is, you know, consumers face the initial burden of that increased fuel prices, especially lower-income households, especially households and businesses outside of the Portland area that are more dependent on liquid transportation fuels. 176 00:34:29.048 --> 00:34:31.554 Eventually that ripples through the business side. 177 00:34:32.965 --> 00:34:42.021 However, over time, those impacts are— don't have a huge impact on the economy. 178 00:34:42.293 --> 00:34:49.887 What they found was a sustained 10% increase in fuel prices could mean the loss of 4,600 jobs. 179 00:34:51.268 --> 00:34:57.273 For context, there's 1.9 million jobs in Oregon in 2025. 180 00:34:58.092 --> 00:35:01.608 The other thing that they recognize is that there is a feedback loop. 181 00:35:02.206 --> 00:35:11.690 That sustained fuel prices drives behavior change, that people find ways to reduce their fuel demand. 182 00:35:12.483 --> 00:35:19.528 They buy, they drive less, they buy electric vehicles, they figure out ways to reduce those costs. 183 00:35:21.860 --> 00:36:00.016 At the end, where we landed as a proposal to you, Is, um, we think that right now the hub is using about 75% of their existing storage capacity, and that, um, with that, uh, in 2036, when you look out, um, with the fuel demand, especially under that delayed progress scenario, a, a 20% reduction in that storage capacity brings that utilization level up to about 36. 184 00:36:00.210 --> 00:36:04.704 And again, you have before you 2 related ordinances. 185 00:36:06.666 --> 00:36:07.603 It is a package. 186 00:36:08.199 --> 00:36:12.913 They don't need to go together, but they work with each other. 187 00:36:14.965 --> 00:36:20.831 And, you know, again, the record and all of the supporting evidence is in the public communications document. 188 00:36:20.878 --> 00:36:21.009 Thank you. 189 00:36:21.614 --> 00:36:28.668 That will support your decision can be found in eFiles for each of these ordinances. 190 00:36:30.480 --> 00:36:32.023 And that is my presentation today. 191 00:36:32.103 --> 00:36:39.164 I'm going to turn things over to Eli Spivak to talk a little bit about the Planning Commission process. 192 00:36:39.907 --> 00:36:45.961 Well, thank you everyone for the opportunity to share the Planning Commission's recommendation in support of the CEI Hub project. 193 00:36:46.608 --> 00:36:47.318 First, some history. 194 00:36:47.891 --> 00:36:56.847 After going through the Planning and Sustainability Commission 7 years ago where I served, City Council first adopted the fossil fuel terminal project in 2019. 195 00:36:57.762 --> 00:37:02.463 The city finally prevailed against all challenges by 2025, 6 years after initial adoption. 196 00:37:03.074 --> 00:37:16.407 Since then, we've learned some things that we should be regulating, including transloading facilities and both fossil and renewable fuels, and also how to go about, how to go about it, such that these new rules go into effect soon rather than being held up for years as happened before. 197 00:37:17.402 --> 00:37:20.704 We also have new partners, including the state, who can regulate things we cannot. 198 00:37:21.489 --> 00:37:23.605 That's a good thing, but also makes things complicated. 199 00:37:25.032 --> 00:37:32.326 The Planning Commission spent 4 months engaging with the CEI Hub project from December of 2025 to March of 2026. 200 00:37:32.887 --> 00:37:40.228 During this time, we received a briefing, heard oral testimony from 63 people, and reviewed over 155 pieces of written testimony. 201 00:37:41.143 --> 00:37:54.432 Then we reconvened for a series of 3 work sessions interspersed with 4 subquorum working groups specific to fuel demand projections, aviation fuels, transloading regulations, and DEQ's seismic stability program. 202 00:37:55.090 --> 00:38:02.030 We brought in experts from DEQ and from PP&D to understand state regulations, data availability, and inspection protocols. 203 00:38:03.025 --> 00:38:06.039 We ended up crafting 5 amendments on the comprehensive plan policies. 204 00:38:06.472 --> 00:38:09.679 And 14 to the zoning code, plus 5 technical amendments. 205 00:38:10.385 --> 00:38:15.534 The vast majority of these passed and became the recommended draft that's in front of you today, and which I'll summarize in a moment. 206 00:38:16.336 --> 00:38:17.284 But first, the big picture. 207 00:38:18.567 --> 00:38:24.036 Virtually all, about 90%, of fossil and renewable fuels used in Oregon are processed through the CEI hub. 208 00:38:24.838 --> 00:38:29.137 This is not sustainable from an economic, environmental, or safety perspective. 209 00:38:29.891 --> 00:38:35.000 We have too many volatile, explosive eggs in one vulnerable basket, And the ground will shake. 210 00:38:36.630 --> 00:38:40.452 From a seismic risk standpoint, the CEI Hub facilities are in the wrong place. 211 00:38:41.115 --> 00:38:43.918 We strongly support efforts to explore alternative locations. 212 00:38:44.710 --> 00:38:47.697 The absence of a single point of accountability complicates that task. 213 00:38:49.224 --> 00:38:57.257 The storage of non-fuel hazardous materials was not part of the scope of this project, and yet the issue poses a significant gap in the regulation of bulk terminals. 214 00:38:58.177 --> 00:39:05.789 There's nothing in the current or proposed code that would limit Bulk fuel terminal operators from building tanks for non-fuel materials such as hot asphalt. 215 00:39:06.592 --> 00:39:11.539 Portland should consider regulating non-fuel hazardous materials at the CEI hub as a follow-up project. 216 00:39:13.018 --> 00:39:17.242 We must rapidly decrease our dependence on fossil fuels. 217 00:39:17.514 --> 00:39:23.585 The CEI hub focuses narrowly on the supply side by regulating storage facilities and transloading facilities. 218 00:39:24.019 --> 00:39:29.463 Yet 40% each of Oregon's greenhouse gas emissions come from the transportation and building sectors, 80% total. 219 00:39:30.286 --> 00:39:43.389 We strongly encourage council to ensure funding, staffing for the new Sustainability and Climate Commission to further the city's climate action goals and decarbonize the sectors that continue to buy and burn what the CEI Hub sells. 220 00:39:45.110 --> 00:39:46.367 So here are the amendments we made. 221 00:39:46.755 --> 00:40:00.186 In the comprehensive plan policies, we added language to the economic significance policy that articulates not just how these facilities support the economy, but also the ongoing economic risk of concentrating such facilities in a natural hazard risk area. 222 00:40:01.293 --> 00:40:07.210 We added a policy on community resilience that addresses environmental and public health risks from these facilities. 223 00:40:08.204 --> 00:40:18.353 And we added a new policy, 3.83-I, to evaluate and consider regulating nonfuel hazardous materials stored at bulk terminals, thus queuing up a follow-up project. 224 00:40:19.268 --> 00:40:31.320 In the zoning code, we ensured that when a tank is replaced, its associated transloading facilities, including loading docks, If someone wants to expand those, they have to go through a separate discretionary review. 225 00:40:32.429 --> 00:40:43.199 In several places, we added requirements for not just having a DEQ risk mitigation implementation plan, but also providing a letter from DEQ confirming the applicant is currently in compliance with that plan. 226 00:40:43.969 --> 00:40:52.590 We added language to ensure that any relocated tank must go in a lower seismic risk location, and we added criteria that require transloading facilities to meet all of the requirements that we've outlined. 227 00:40:52.576 --> 00:40:52.630 Oregon thank you. 228 00:40:52.768 --> 00:40:56.215 Structural Specialty Code Risk Category 4 where applicable. 229 00:40:56.617 --> 00:41:03.668 So not just the tanks have to meet those standards, but transloading facilities do as well, because if the earthquake happens, any one of those things can leak. 230 00:41:05.972 --> 00:41:13.329 If the codes don't apply, then you have to have a 1-barrel maximum spillage allowed in the case of a seismic event. 231 00:41:14.057 --> 00:41:22.065 We added new approval criteria for any new tanks and transloading facilities to minimize and mitigate and mitigate risks to public health and safety from wildfire. 232 00:41:23.076 --> 00:41:30.652 We added to the transloading expansion review a requirement to demonstrate significant public benefits that include at least one non-economic benefit to the region. 233 00:41:31.039 --> 00:41:33.945 So you can't just expand transloading showing economic benefits. 234 00:41:33.992 --> 00:41:34.795 That's not sufficient. 235 00:41:34.940 --> 00:41:36.320 You have to show additional benefits as well. 236 00:41:37.364 --> 00:41:45.101 We added an exception to the prohibition on new fuels for aviation fuel up to 5% increase, as Tom mentioned earlier, subject to a discretionary land use review. 237 00:41:45.150 --> 00:41:45.327 Thank you. 238 00:41:46.338 --> 00:41:48.942 And we had an amendment that would have allowed a 5% increase by right. 239 00:41:49.005 --> 00:41:49.697 That did not pass. 240 00:41:51.079 --> 00:41:55.128 For this, we created the Aviation Fuel Storage Tank Capacity Expansion Review Process. 241 00:41:55.193 --> 00:41:56.076 That's a mouthful. 242 00:41:56.172 --> 00:41:56.960 Staff helped with this. 243 00:41:58.148 --> 00:42:11.389 With a half dozen approval criteria, including if you're going to have more aviation fuel capacity, you'd be required to demonstrate— to do a fuel demand analysis and demonstrate that there's no practical alternative location outside the CEI hub. 244 00:42:12.409 --> 00:42:15.780 Any such review, since it's a Type 3, would end up back with City Council, with you. 245 00:42:17.748 --> 00:42:26.045 We adopted an amendment to notify neighbors of any proposed transloading facilities, new structures, or tank demolitions, not just new tanks, because neighbors want to know what's happening there. 246 00:42:27.030 --> 00:42:38.123 And we prepared an amendment to regulate non-fuel hazardous substance storage tanks, but we dropped that in favor of adopting the comprehensive plan policy I mentioned before and suggesting the City Council move on this and soon. 247 00:42:38.268 --> 00:42:38.784 Thank you. 248 00:42:39.943 --> 00:42:44.731 We appreciate staff support over this entire process and your attention to the project. 249 00:42:44.778 --> 00:42:47.061 Now the recommended draft is now in your hands. 250 00:42:47.655 --> 00:42:48.489 We've done our best with it. 251 00:42:48.844 --> 00:42:53.706 You now have the opportunity to stick with it or improve upon it with your final bite at the apple. 252 00:42:54.333 --> 00:42:56.507 That's mine. 253 00:42:57.152 --> 00:42:58.746 Thank you all. 254 00:42:58.925 --> 00:43:07.112 Colleagues, if there's any technical or clarifying questions at this time for our, our staff here, we will have more thorough back and forth at the last part of this. 255 00:43:07.641 --> 00:43:11.833 But if they have any questions right now while these folks are here, and they will be sticking around to the end. 256 00:43:12.217 --> 00:43:14.449 So Councilor Green and then Councilor Novick. 257 00:43:15.831 --> 00:43:16.072 Thanks. 258 00:43:16.215 --> 00:43:20.101 I'm not sure if this is quick technical or more appropriate for the back end. 259 00:43:20.213 --> 00:43:23.119 So feel free to say this is more appropriate for the back end. 260 00:43:23.360 --> 00:43:23.697 Okay. 261 00:43:24.661 --> 00:43:27.021 Thanks for the presentation, Tom. 262 00:43:27.085 --> 00:43:28.483 I just have a quick clarifying question. 263 00:43:28.530 --> 00:43:37.992 So you sort of In this update, you indicated that there will be reporting the results of the data you'll be collecting every 3 years to the City Council. 264 00:43:38.536 --> 00:43:41.070 And we wouldn't start this drawdown until 2036. 265 00:43:41.166 --> 00:43:47.048 And there was a sort of assertion that we have 75%, we're only utilizing 75%. 266 00:43:47.177 --> 00:43:50.496 So there seems to indicate 25% surplus capacity. 267 00:43:50.543 --> 00:44:10.641 So can you just walk us through why we wouldn't start that drawdown earlier if we've got that data that sort of shows yeah, because, um, in order to comply with the DEQ seismic stability program, they're going to have to take some of that capacity offline to do the seismic improvements. 268 00:44:11.634 --> 00:44:22.338 And so while that is coming offline, you know, think of it, take 20% offline, we still have enough to continue to supply the fuel we need to run the city. 269 00:44:22.385 --> 00:44:24.923 So you're saying today and over the next 10 years. 270 00:44:25.516 --> 00:44:32.938 And so it's, it's, you know, you bring some offline, you improve it, and you keep moving through the system. 271 00:44:33.612 --> 00:44:48.103 But that last, you know, all we're saying to the terminals is that as you plan all those improvements, the last little bit, um, comes offline and, and you have to take it offline out of service. 272 00:44:48.344 --> 00:45:07.498 You don't We think, we think they need the flexibility to make those improvements and continue to supply the fuel you need— we need, because you— that fuel demand curves are pretty flat out to 2036, and then they start to drop off. 273 00:45:07.949 --> 00:45:08.862 Okay, that, that's helpful. 274 00:45:08.958 --> 00:45:09.552 That clarifies. 275 00:45:09.617 --> 00:45:12.505 And you, you think they need until 2036 to do that? 276 00:45:13.146 --> 00:45:14.974 That is— you'll hear that is the state of the art. 277 00:45:15.215 --> 00:45:21.280 The state requirement, they'll— once their improvement plans are approved, they have 10 years to implement it. 278 00:45:21.809 --> 00:45:25.773 We expect those approvals actually to not come in until next year. 279 00:45:26.880 --> 00:45:33.168 So the '36 date is probably a 9-year improvement plan for the terminals. 280 00:45:33.521 --> 00:45:34.003 Okay, thanks. 281 00:45:34.067 --> 00:45:36.297 I think that's about all I get for a quick clarifying. 282 00:45:36.554 --> 00:45:37.114 So thanks. 283 00:45:37.693 --> 00:45:38.960 We will have more time for back and forth. 284 00:45:39.025 --> 00:45:39.875 Thank you very much, Councilor Green. 285 00:45:39.938 --> 00:45:40.501 Councilor Novick. 286 00:45:41.365 --> 00:45:48.465 I just want to note that Svetlana Lazareva from DEQ is online in order to talk about DEQ's retrofit program. 287 00:45:48.577 --> 00:45:49.250 She presents next. 288 00:45:49.394 --> 00:45:51.733 Yes, but she has a hard stop at 3. 289 00:45:52.039 --> 00:45:52.215 Okay. 290 00:45:52.278 --> 00:45:57.630 So I'm actually begging my colleagues to save their questions for BPS till later because we can talk to them at any time. 291 00:45:57.726 --> 00:45:58.239 Thank you, Councilor. 292 00:45:58.288 --> 00:46:02.503 Well, actually, yeah, I will go ahead and I'll keep the folks in the queue as is. 293 00:46:02.775 --> 00:46:05.242 Councilor Pirtle-Guiney, then Koyama Lane, and then Clark. 294 00:46:05.322 --> 00:46:06.844 But we're going to go to DEQ next. 295 00:46:06.925 --> 00:46:09.190 So thank you all. 296 00:46:09.269 --> 00:46:13.331 We're going to now move to a presentation from Svetlana Lazarev. 297 00:46:13.766 --> 00:46:15.050 I'm sorry, Svetlana. 298 00:46:15.195 --> 00:46:15.226 Hi. 299 00:46:16.255 --> 00:46:20.188 Seismic stability and hazardous waste manager with the Department of Environmental Quality. 300 00:46:20.733 --> 00:46:26.081 You know, our legislation is at the city level, is in parallel and conversation with ongoing work at the state level. 301 00:46:26.130 --> 00:46:35.105 And so as Councilor Novick had requested, Manager Lazarev is now here to present an update on the substance and status of these state actions. 302 00:46:35.509 --> 00:46:36.512 Take it away, Svetlana. 303 00:46:38.438 --> 00:46:39.215 Good afternoon. 304 00:46:40.461 --> 00:46:41.239 Can you see my slides? 305 00:46:42.688 --> 00:46:43.195 Yes, we can. 306 00:46:43.684 --> 00:46:45.530 They're in presentation mode and everything? 307 00:46:47.016 --> 00:46:47.652 Everything looks good. 308 00:46:48.702 --> 00:46:49.155 All right then. 309 00:46:50.059 --> 00:46:50.916 Good afternoon again. 310 00:46:51.273 --> 00:47:00.271 And for the record, my name is Svetlana Lazarev, and I manage the Fuel Tank Seismic Stability Program at the Department of Environmental Quality. 311 00:47:01.021 --> 00:47:03.304 Our program is now entering its 4th year. 312 00:47:03.983 --> 00:47:08.306 I appreciate the invitation to be here today and to provide you with a high-level update. 313 00:47:08.989 --> 00:47:18.545 My goal is to cover essential context and key operational milestones that define our progress so far, and I have 10 slides to help me do that. 314 00:47:20.364 --> 00:47:24.695 If there is time for clarifying questions, I would be happy to answer those. 315 00:47:25.114 --> 00:47:25.501 Thank you. 316 00:47:28.842 --> 00:47:37.182 This slide highlights the primary cluster of fuel terminals within Northwest Portland's critical energy infrastructure hub. 317 00:47:38.065 --> 00:47:47.320 The individual facilities are shown in orange along the river, while there are 4 additional facilities located outside this zone regulated by the program. 318 00:47:47.690 --> 00:47:49.293 Our focus today is the CEI hub. 319 00:47:50.112 --> 00:47:53.849 The facilities are built, like Tom said, on highly unstable ground. 320 00:47:54.539 --> 00:48:03.376 Originally wetlands, now filled with dredged sediments, making them exceptionally prone to liquefaction and lateral spreading during a seismic event. 321 00:48:04.226 --> 00:48:08.918 Compounding this geographic risk is the age of its infrastructure itself. 322 00:48:09.465 --> 00:48:14.797 An overwhelming 98% of tanks were constructed prior to 1993. 323 00:48:15.795 --> 00:48:25.009 And the year 1993 is important because it marks the first time building codes were updated to account for a Cascadia megaquake threat. 324 00:48:27.699 --> 00:48:33.217 To address these vulnerabilities, Senate Bill 1567 established DEQ's Seismic Stability Program. 325 00:48:33.927 --> 00:48:43.367 The facilities listed on the right are required to, required to submit comprehensive seismic vulnerability assessments to DEQ for review. 326 00:48:44.561 --> 00:48:49.572 Following DEQ's approval, each facility must develop a targeted risk mitigation implementation plan. 327 00:48:49.686 --> 00:48:49.898 Thank you. 328 00:48:51.059 --> 00:49:04.518 Once DEQ approves these mitigations, the facilities are mandated to fully implement their plans within a 1-year timeframe— I'm sorry, within a 10-year timeframe, ensuring transition toward a more resilient infrastructure. 329 00:49:06.329 --> 00:49:19.027 The seismic vulnerability assessment is divided into 3 components: the soil geotechnical assessment, the structural evaluation, and the safety systems analysis. 330 00:49:20.159 --> 00:49:24.833 In general, this is sequential and highly iterative engineering process. 331 00:49:25.561 --> 00:49:34.713 The assessments begin by facilities geotechnical engineers characterizing the site soil and establishing baseline seismic forces. 332 00:49:36.197 --> 00:49:48.045 Once the ground conditions are defined, facilities structural engineers evaluate structures and safety systems to see how they will withstand an earthquake allowing them to pinpoint specific structural deficiencies. 333 00:49:49.039 --> 00:49:53.817 From there, the process loops to reconcile geotechnical and structural findings. 334 00:49:54.650 --> 00:50:03.675 For example, facility geotechnical engineers may need to go back and do additional analysis or consider potential soil mitigation options. 335 00:50:04.429 --> 00:50:10.952 And structural engineers might consider how structures may be improved to withstand moving soil. 336 00:50:11.786 --> 00:50:14.902 DEQ does not prescribe assessment or mitigation methods. 337 00:50:15.239 --> 00:50:17.632 Those are up to facilities to consider and propose. 338 00:50:18.693 --> 00:50:27.349 DEQ engineering team performs rigorous peer review of facility engineers' work and propose deeper analysis if necessary. 339 00:50:28.248 --> 00:50:38.092 This back-and-forth review continues until the assessment is comprehensive and provides a reliable foundation for the next phase, the risk mitigation implementation plan. 340 00:50:38.157 --> 00:50:38.284 Thank you. 341 00:50:39.809 --> 00:50:44.527 Once DEQ approves the seismic vulnerability assessment, the clock begins for the next phase. 342 00:50:45.266 --> 00:50:50.384 Facilities will have 6 months to develop and submit their risk mitigation implementation plans. 343 00:50:51.219 --> 00:50:55.038 Mitigation will be implemented through a phased approach. 344 00:50:55.550 --> 00:51:05.708 Each facility's plan must detail specific actionable mitigation measures that can be successfully completed at the 1-year, 3-year, and 5-year marks. 345 00:51:05.757 --> 00:51:05.885 Thank you. 346 00:51:06.610 --> 00:51:14.708 These timelines must be accompanied by explanation of the prioritization to ensure that the highest-risk vulnerabilities are addressed first. 347 00:51:18.349 --> 00:51:23.206 When it comes to primary and secondary containment, facilities have 2 compliance pathways. 348 00:51:23.967 --> 00:51:29.106 DEQ views both of these options as providing equivalent level of safety. 349 00:51:29.541 --> 00:51:32.217 The first pathway is designed for existing equipment. 350 00:51:32.606 --> 00:51:37.278 Focusing on retrofitting and anchoring current structures to withstand seismic events. 351 00:51:37.824 --> 00:51:44.777 This applies to tanks and secondary containment structures such as walls, basins, berms, and other systems designed to contain a spill. 352 00:51:46.173 --> 00:52:05.639 The secondary pathway applies to new construction, new tanks and containment systems, ensuring that future infrastructure meets the most stringent modern code requirements, which is Risk Category 4 provided in American Society of Civil Engineers code. 353 00:52:11.592 --> 00:52:17.467 This slide is to give you a real-world example of this program in action. 354 00:52:19.079 --> 00:52:25.798 So this picture is from the Portland International Airport fuel facility, which has been uniquely ahead of the curve. 355 00:52:25.900 --> 00:52:31.518 Curve with their seismic vulnerability assessment and risk mitigation implementation plan. 356 00:52:32.498 --> 00:52:40.398 They began investigating the seismic vulnerability of their facility well before GQ's seismic stability program was formally established. 357 00:52:41.329 --> 00:52:47.945 Based on their initial assessment, their original plan was to replace 2 of the 3 existing tanks. 358 00:52:48.795 --> 00:52:57.204 However, once our program was established, Rigorous SVE criteria required them to push their engineering analysis a bit further. 359 00:52:57.835 --> 00:53:06.289 As a result of that deeper evaluation, they shifted their strategy and, and are now rebuilding all 3 tanks to meet risk category 4 standards. 360 00:53:11.844 --> 00:53:19.297 Looking at the program implementation timeline, they're currently in a phase of this intensive Analytical work. 361 00:53:20.005 --> 00:53:26.737 In-depth engineering assessments are happening at most of the CI facilities, each on its own timeline. 362 00:53:27.717 --> 00:53:37.231 A few seismic vulnerability assessments are scheduled to be submitted to DEQ before the end of this year, and the majority are slated for completion in 2027. 363 00:53:38.259 --> 00:53:43.128 Last July, we released a voluntary report, and it has information about all facilities' timelines. 364 00:53:43.192 --> 00:53:43.369 Thank you. 365 00:53:44.958 --> 00:53:58.210 And based on this timeline, we anticipate the mitigation to last approximately through 2038 and maybe extend a few years beyond that. 366 00:54:01.271 --> 00:54:09.208 In the 2026 legislative session, lawmakers expanded our program's authority by passing House Bill 4100. 367 00:54:09.967 --> 00:54:15.246 We are currently in the middle of the rulemaking process to implement these new statutory requirements. 368 00:54:16.242 --> 00:54:32.416 This update centers entirely on financial assurance and requires facilities to obtain a certificate of financial responsibility from DEQ by demonstrating their capability to cover spill-related damages up to $300 million. 369 00:54:33.652 --> 00:54:49.030 A major focus of the ongoing stakeholder conversations is the process of how local municipalities, the city, and the county will be compensated for emergency response and cleanup expenses in the event of a major spill. 370 00:54:52.525 --> 00:55:01.925 The law requires at least equal participation of community, local governments, and regulated industry representatives on the Rules Advisory Committee. 371 00:55:02.632 --> 00:55:07.978 The City of Portland interests are represented by Tom Armstrong on the Rules Advisory Committee. 372 00:55:09.280 --> 00:55:11.735 And this is my last slide. 373 00:55:11.784 --> 00:55:25.561 And in closing, the progress we're able to make in seismic stability program is a direct result of the ongoing community, regulated industry, and local governments collaboration. 374 00:55:26.219 --> 00:55:27.536 And for that, we are—. 375 00:55:27.536 --> 00:55:27.824 Thank you. 376 00:55:28.081 --> 00:55:29.030 Deeply grateful. 377 00:55:32.019 --> 00:55:40.755 And this is the end of my, um, prepared presentation, and if time allows, I'd be happy to answer clarifying questions. 378 00:55:41.432 --> 00:55:43.043 Thank you very much, Svetlana. 379 00:55:43.592 --> 00:55:47.123 Uh, colleagues who were in the queue for BPS staff, I will come back to you. 380 00:55:47.172 --> 00:55:51.856 I just want to very quickly check and see if Councilor Clark— is your question for— okay, Councilor Novick, your question for Svetlana? 381 00:55:51.985 --> 00:55:52.228 Okay. 382 00:55:53.115 --> 00:55:54.068 Yes, thank you, Mr. President. 383 00:55:54.295 --> 00:55:55.483 2 Quick questions. 384 00:55:55.675 --> 00:55:59.289 Um, one, you were talking about how there's 2 options. 385 00:55:59.369 --> 00:56:05.181 One is to have a fancy new or renovated Category 4 tank, or to have something like a containment wall. 386 00:56:05.936 --> 00:56:11.860 And I was asking you earlier, how would a containment wall survive if there— it's on liquefied soil? 387 00:56:11.974 --> 00:56:13.291 And I think you said, well, it wouldn't. 388 00:56:13.338 --> 00:56:15.442 So that's why we're having to do soil mitigation. 389 00:56:15.521 --> 00:56:18.797 And I think you said that it's actually possible to, like, densify the soil. 390 00:56:18.878 --> 00:56:19.327 Is that right? 391 00:56:20.811 --> 00:56:21.572 It is possible. 392 00:56:24.989 --> 00:56:27.222 Methodologies to improve soil exist. 393 00:56:28.322 --> 00:56:42.030 And so those basically focus on improve— like making the soil denser, right, and improving drainage. 394 00:56:43.342 --> 00:56:48.818 We do not require that facilities do specific mitigation measures. 395 00:56:49.813 --> 00:56:55.702 We do not require that they do either soil mitigation or structure mitigation. 396 00:56:56.873 --> 00:57:16.905 They can consider their options, and their proposal has to show us that they— whatever setup they choose, whether they choose to improve the soil Or whether they choose to improve the situation on site in other ways. 397 00:57:17.483 --> 00:57:31.579 They just have to show us that they will either not spill more than 42 gallons per containment system or that any new construction they build is to risk category 4. 398 00:57:34.262 --> 00:57:34.617 Thank you. 399 00:57:34.760 --> 00:57:46.619 And I think you might have already said this, but in terms of when you expect this process to be completed and the retrofits actually to be done, I think you might have said that's like 2038, 2040, somewhere like that. 400 00:57:47.309 --> 00:58:00.766 I think, yeah, based on the current timeline, we anticipate all of the final comprehensive assessments be submitted by the end of 2027. 401 00:58:01.199 --> 00:58:13.001