Oregon committee hears package of bills to address seismic risk at Portland’s fuel 'CEI Hub'

Representative Thuy Tran, chair of the House Committee on Emergency Management, General Government, and Veterans, opened public hearings Feb. 27 on four bills aimed at reducing seismic risk and improving fuel resilience at Portland’s Critical Energy Infrastructure (CEI) Hub.

The package includes House Bill 2152, which would direct the Oregon Department of Transportation to develop a statewide geographic diversity of fueling stations and disaster reserve plan; House Bill 3450, directing the Oregon Department of Energy to develop an energy storage transition plan for the CEI Hub; House Bill 2151, which would expand permissible uses of the Seismic Risk Mitigation Fund; and House Bill 2949, directing DEQ to study financial-assurance options for bulk oil and liquid-fuel terminals.

Why it matters: The CEI Hub, a six-mile stretch along the Willamette River in Northwest Portland, is the primary entry and storage point for most of Oregon’s liquid fuels. Multiple witnesses and legislators told the committee that the hub is located on river‑deposited soils susceptible to liquefaction in a major Cascadia Subduction Zone earthquake, raising the risk of tank failures, large spills into the Willamette River, fires and prolonged statewide fuel shortages.

Representative Thuy Tran (House District 45) framed the package as “the backbone of our state's energy security and emergency preparedness,” saying the bills aim to “mitigate risk, enhance disaster resilience, ensure financial accountability, and support the transition toward a more sustainable and secure energy future.”

Senator Michael Dembrow, who described himself as the 2022 chief sponsor of related legislation, told the committee the current legislation builds on Senate Bill 1567 (2022), which created a DEQ fuel tank seismic stability program. “We were living on borrowed time, sitting on a ticking time bomb,” Dembrow said, summarizing prior work that required vulnerability assessments for large tanks and prompted a statewide energy security assessment.

Engineer and geologist Yumei Wang testified in support of the bills and described liquefaction risks based on past studies. Wang said the soils at the hub were “highly liquefiable” and showed photos from international ports that experienced large ground movement. She told the committee that county studies estimate tens of millions of gallons could flow into the river in a severe event and said the bills would help move Oregon from facility‑by‑facility mitigation toward planning for the hub as a system.

Bill summaries and testimony

- House Bill 2152 (statewide fuel storage / disaster reserves): Witnesses said HB 2152 would require a statewide geographic diversity plan for disaster reserves to reduce dependence on the CEI Hub during emergencies. Supporters noted the bill calls for prioritizing underserved areas and assessing environmental impacts; several witnesses emphasized the need for decentralized bulk or regional storage in seismically safer locations.

- House Bill 3450 (energy storage transition plan): Sponsors and supporters said HB 3450 would direct the Oregon Department of Energy, with input from DEQ and other agencies, to develop a transition plan for the CEI Hub focusing on short-, medium- and long-term benchmarks, stakeholder engagement and feasibility studies including a risk bond study.

- House Bill 2151 (Seismic Risk Mitigation Fund expansion): Testimony explained HB 2151 would adjust the allowable uses of the existing Seismic Risk Mitigation Fund (created under earlier legislation) to include community preparedness investments such as warning systems, evacuation planning and fire‑response improvements near the hub.

- House Bill 2949 (financial assurance / risk bonding study): Witnesses described HB 2949 as directing DEQ to contract for a third‑party study on whether owners/operators of bulk fuel terminals should be required to obtain insurance, surety bonds or other financial assurance for catastrophic-release costs and how any requirement would dovetail with infrastructure improvements.

Supporters included neighborhood leaders, community groups and public‑health and climate organizations who urged passage of the full package. Daniel Frey of Mobilizing Climate Action Together said his family would “be profoundly negatively affected by the collapse of the CEI Hub” and urged support for HB 2152 and HB 2151. Tom Karwacki, chair of the University Park Neighborhood Association, and Mary Margaret Wheeler Weber, vice chair of the Portsmouth Neighborhood Association, described local vulnerability and asked the committee to move the bills forward.

Public‑health advocates emphasized community impacts. Samantha Hernandez, Healthy Climate Program Director at Oregon Physicians for Social Responsibility, told the committee that a Cascadia‑scale earthquake could create spills and toxic exposures with “massive costs and damages,” and urged support for the package, including the financial‑assurance study in HB 2949.

Industry and procedural comments

The Western States Petroleum Association (represented by Sophia Steele) registered opposition to HB 3450 as written, saying stakeholder convenings are already underway and warning the bill could duplicate existing processes. Steele said the association was neutral on HB 2949 pending an amendment and urged a careful market analysis before imposing financial‑assurance requirements.

Several technical and policy clarifications were raised in committee discussion. Witnesses and legislators noted prior steps: Senate Bill 1567 (2022) required vulnerability assessments for large tanks and directed an energy security assessment. Witnesses said DEQ’s program is in progress but does not address hub‑wide planning such as relocation or system‑level redundancy.

Committee process and next steps

Chair Tran conducted public hearings on the four bills. The committee closed the public hearing on HB 2152 and HB 3450 during the meeting and opened but continued HB 2151 to allow more testimony at a later date. Representative Travis Nelson spoke in support of HB 2151 and described it as a change in allowable uses of the mitigation fund rather than a new appropriation. Representative Lewis requested amendments to include the State Fire Marshal, the Oregon Department of Emergency Management and the State Resilience Officer in planning and to require reporting back to this committee.

No formal votes were taken during the Feb. 27 hearing. Committee members and staff indicated additional amendments and further testimony will be scheduled; the chair announced a subsequent meeting date would be set.

Ending

Committee members said the bills are part of a multi‑session effort that began with SB 1567 and will require additional study, interagency cooperation and stakeholder engagement. Several witnesses urged timely legislative action; others urged careful technical study before imposing financial requirements on terminal operators. The committee reserved further consideration and asked staff to accept amendment proposals.

(Reporting note: All quotations and attributions are taken from the Feb. 27 public hearing of the House Committee on Emergency Management, General Government, and Veterans.)