About 200 people attended a public hearing by the Oregon Department of Environmental Quality on Zenith Energy’s draft air quality permit, a document the company needs to continue offloading and storing crude oil and renewable fuels in Northwest Portland.

The hearing on Monday night marked the relaunch of Zenith’s air permit process after state regulators put it on hold last fall in the wake of an unannounced inspection and a $372,600 fine issued to the company over unauthorized use of a dock near its terminal on the Willamette River.

Zenith appealed that decision. Earlier this month, the DEQ reduced the fine by more than half as part of a settlement agreement with the Houston-based company.

More than 40 people testified at the hearing, all of them opposed to Zenith. They argued that Zenith is a polluter that can’t follow the rules and that the new permit would allow it to greatly expand operations in the city.

In a statement, Zenith said its transition from handling crude oil to renewable fuels by 2027 makes it “a key partner in expanding the supply of low-carbon fuels to the Oregon market.” Renewable fuels include sustainable aviation fuel, ethanol, biodiesel and renewable diesel.

The draft permit allows Zenith to use new valves and piping only for loading and offloading of renewable fuels, jet fuel, sustainable aviation fuel and jet fuel blends.

A previous analysis of Zenith’s draft air quality permit application by The Oregonian/OregonLive showed the permit, if approved, could pave the way for Zenith to handle a lot more fuel than it does now.

That’s because Zenith already emits far fewer volatile organic compounds, known as VOCs, than its current air pollution cap.

And while the new air quality permit would set the emissions cap lower than Zenith’s current cap, renewable fuels emit less hazardous pollution than crude oil. So, Zenith would be able to vastly increase the total amount of fuels moving through its terminal.

Zenith officials have said that how much and what kind of fuel the company moves through its terminal in the future can’t be predicted and will depend on future market needs.

In recent months, environmental groups, neighborhood associations and some residents have renewed their fight to get the Portland City Council and the DEQ to stop Zenith’s continued activities at the city’s fuels hub.

Their questions about Zenith’s operations led the DEQ to conduct the surprise inspection of Zenith and to issue the fine.

Environmental groups also have challenged Portland administrative staff’s approval of Zenith’s land use credential with the Oregon Land Use Board of Appeals; that case continues and does not affect DEQ’s permitting process unless the court overturns or invalidates Portland’s decision.

After the public comment period closes, DEQ said it will take several weeks to evaluate and respond to comments and issue a decision. If needed, the agency may revise the permit based on the comments received.

— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.

Our journalism needs your support. Subscribe today to OregonLive.com.