Today, the Western States Petroleum Association warned that a City of Portland proposal to mandate a 20% drawdown in fuel stored at the Critical Energy Infrastructure Hub will risk the stability of the entire region’s fuel supply and could result in major fuel price spikes, all without any substantial improvement to seismic safety. The city’s plan, which could be voted on as soon as this Thursday, imposes an arbitrary cap on storage at the facility through which more than 90% of Oregon’s fuel is transferred, limiting supplies and reducing the buffer that absorbs any disruption in fuel shipments to the state.
“Oregonians don’t have to choose between earthquake safety and an affordable, reliable fuel supply,” said WSPA Vice President – Washington & Oregon Jessica Spiegel. “Safety is the highest priority for the energy companies that operate at Portland’s CEI Hub, and they work under a robust set of safeguards from federal, state and local regulators. Capping the CEI Hub’s capacity will leave us more vulnerable to fuel shortages and price spikes whenever fuel shipments to the region are disrupted.”
The consequences of constraining Oregon’s primary fuel storage and distribution infrastructure extend far beyond Portland, weakening the state’s resilience during storms and other emergencies, particularly for communities outside the metropolitan area. The proposal will increase operational costs – which will likely be passed on to consumers – at a time when businesses and families are already facing a significant affordability crisis.
In addition to posing serious consequences for Oregon’s fuel supply, Portland’s proposal is based on an incomplete engineering analysis and ignores seismic safety efforts that are already underway. The studies cited to support this proposal rely on assumptions of catastrophic tank failure without any structural calculations or observed earthquake failure rates. Tank performance depends on shell construction, anchorage, foundations and actual ground deformation. Even severe settlement does not necessarily rupture a tank. Additionally, the CEI Hub is currently regulated by a comprehensive framework of federal and state safety standards that have evolved specifically to address risks from earthquakes and other hazards, including EPA Spill Prevention, Control and Countermeasure regulations, DEQ oversight, OSHA process safety standards, API Standard 653 (tank inspection and maintenance) and Oregon’s recent SB 1567 Seismic Vulnerability and Mitigation Plan requirements.
“Companies operating at the CEI Hub are already working with state officials to implement Oregon’s Fuel Tank Seismic Stability Program,” added Spiegel. “We ask that the City of Portland allow us to complete this important work before imposing additional requirements on this infrastructure.”
A fact sheet with additional information on Oregon’s fuel supply infrastructure and the drawbacks to imposing additional constraints on that system is available HERE.