Safety Advocates Urge City Council to Amend Franchise Transfer from Zenith Energy to I Squared Capital

Citing a Whitewashed Investigation and Zenith’s History of Violations, Advocates Say Approving the Transfer Without Amendments Would Be a Negligent Act and Put Community in Danger

FOR IMMEDIATE RELEASE 
July 20, 2026 

Media Contact:
Nick Caleb, Breach Collective, Nick@breachcollective.org, (541) 891-6761

PORTLAND, OR – On Thursday, the City of Portland’s Committee of the Whole will hear a request from Mayor Wilson that the Portland City Council approve the transfer of Zenith Energy’s Franchise Agreement to I Squared Capital, a global infrastructure investment firm based in Miami. Advocates are calling on city councilors to (1) slow down so the public receives full information and has time to prepare meaningful feedback for City Council, and (2) negotiate for a third party enforcement provision so that community and environmental groups can ensure the terms of the agreement are enforced if I Squared violates them. Advocates argue that approving the transfer as-is would incentivize more lawbreaking and dishonesty like we saw with Zenith.

Nick Caleb, Climate and Energy Attorney at Breach Collective, said: 

“Two mayoral administrations refused to enforce Zenith’s franchise agreement after years of consistent lawbreaking, misleading regulators, and putting Portlanders in danger. Now, Mayor Wilson is proposing that we rush the same agreement to an enormous private equity firm without additional protections? City staff have not even provided the public with access to all the documentation. At minimum, City Council must thoroughly scrutinize this proposal and provide the public with enough time to digest and comment on this item.”

The request for the franchise transfer comes months after the City released an internal investigation, reviewed by the Cable Huston law firm, which concluded that Zenith had not violated its franchise agreement. However, community groups have fiercely criticized the investigation as inadequate, pointing out that it was overseen by the same City officials who managed Zenith’s permitting and excluded documented evidence of the company’s misconduct. 

On April 13, 2026, environmental and community advocates hand delivered and emailed a letter rejecting the process and outcome of the Zenith Energy franchise agreement investigation (1) it was tainted by clear conflicts of interest; (2) it was too narrow in scope and brazenly avoided investigating acts where Zenith most clearly lied or committed fraud on the city; (3) it failed to adequately utilize investigative powers; and (4) it reached conclusions that were informed by erroneous or incomplete information.

Marnie Glickman, Executive Director of Braided River Campaign, said:

“City Council must not assign a franchise agreement that the City has already admitted it cannot or will not enforce. The City’s recent franchise investigation was a sham that ignored Zenith’s history of legal violations and deceptive conduct. To turn around and hand this same agreement and a road map to another out-of-state energy interest would be a negligent act that abandons the City’s duty to protect the public.”

Advocates and community members argue that the City has demonstrated a clear inability to hold Zenith accountable. Despite documented “flagrant violations” of state permits, violations of City lobbying codes as determined by the City Auditor, the illegal construction and use of pipelines, and many false representations, the City’s recent probe found “no material compliance issues.” Critics maintain this absurd result makes the franchise agreement itself worthless as a protective measure.

Nancy Hiser, from Tank the Tanks and a Linnton Neighborhood Resident, said

“Why would we extend an agreement that has manifestly failed to protect the public from a Houston-based company to a Miami-based private equity firm? Without a full, independent investigation into Zenith’s past lies and a complete overhaul of enforcement mechanisms, approving this transfer is just handing a get-out-of-jail-free card to a new set of out-of-state executives who have no incentive to behave any differently.”

I Squared Capital has publicly committed to transitioning the terminal to 100% so-called “renewable” fuels by 2027, but community members have already debunked many of the greenwashed claims about the benefits of these fuels. According to Private Equity Climate Risks, “[t]he company claims to have an Energy Transition Strategy that ‘embraces the full breath of clean energy;” however, 79 percent of the 19 energy companies in its portfolio are invested in fossil fuels, as of the end of July 2024.” I Squared has publicly stated that it is committed to expanding the facility into a regional fuel hub, which would increase danger to Portland’s residents and environment.

Community members and advocates note that the physical infrastructure at the Zenith site in the Critical Energy Infrastructure (CEI) Hub remains a significant seismic and environmental risk to the surrounding community; Portlanders strongly oppose taking on risk so that out-of-state companies can expand and operate a regional fuel export hub on liquefiable soil

Dineen Crowe, Campaign Director at 350PDX, said

“This decision is about more than who owns the stock; it is about whether our City government has the courage to stand up for its people. The City has shown it will not hold Zenith accountable. It would be the height of negligence to simply assume a massive private equity firm will somehow be more accountable to Portlanders than the last company was based on vague marketing about so-called ‘renewable’ energy. The Council must reject this assignment and negotiate a franchise agreement that actually includes enforceable protections, not just promises.”

David Labby with Tank the Tanks and a Linnton Neighborhood Resident, said, 

“Of course Zenith and its purchaser want to get under the wire. Linnton residents living at the epicenter of Hub risk expect the Council not to be steamrolled into giving a free pass to these out of state companies. Shouldn’t a new franchise agreement make us safer, not just codify the failed business as usual agreement?”

The City Council will consider the franchise assignment at the Committee of the Whole meeting on July 23rd at 9:30 AM. The franchise transfer item will likely be considered closer to 11:00 AM. 

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