• The proposed code amendments seek to protect the public health and safety, environment, and foster a transition to cleaner fuels in alignment with the City's Climate Action goals;
• New bulk fossil fuel facilities, coal energy-generating facilities, and solid fuel yards would be prohibited in all zoning districts;
• Existing bulk fossil fuel facilities could be upgraded and maintained to ensure safe operations;
• Cleaner fuels would be specifically defined to include a number of types of liquid or gaseous fuels produced from renewable sources or that have low or no emissions;
• Capacity of existing bulk fossil fuel facilities could be expanded by 15% if switched to cleaner fuels, upgraded to seismic standards, and subject to approval of fire and spill response plans, among other requirements;
• Small fossil fuel storage and handling facilities of less than 60,000 gallons would be allowed in the IH, Heavy Industrial District, as a conditional use, and small cleaner fuel storage and handling facilities would be allowed in the IH District as a limited use;
• New cleaner fuel facilities of up to one million gallons capacity may be allowed by conditional use permit in the IH District in order to support the City’s Climate Action Strategy and a transition away from fossil fuels

Goal 1: Ensure that our built urban environment is the safest, most environmentally responsible and well maintained in the Pacific Northwest

In June 2020, City Council enacted a six-month moratorium on new or expanded large-scale fossil fuel facilities, based on concerns about potential impacts to local public and environmental health and safety and to climate change. It has been enacted to allow time to update the land use code standards for such uses and to align them with other planning efforts currently underway, such as the Vancouver Strategic Plan update, Climate Action Plan, and other Title 20 code amendments. The moratorium was extended four times by the City Council and is currently scheduled to expire on November 6, 2022.

Over the past two years, staff has consulted with fossil fuel industry experts, and engaged in a series of meetings with environmental advocates and fuel industry stakeholders including the Port of Vancouver and numerous representatives from several existing bulk fuel facilities, as well as the Planning Commission and City Council. Planning staff have tried where possible to incorporate input on specific code language to make the ordinance clearer and to balance the stated objectives of the Council with industry and environmental perspectives.

Six large oil storage or transshipment facilities exist in the City of Vancouver, four within the Port of Vancouver, one further west at Tidewater Barge, and one near Fruit Valley Road. Five of the facilities are within the IH, Heavy Industrial District and one is within the IL, Light Industrial District. All are located within areas susceptible to liquefaction in the event of an earthquake. All are located within the Fruit Valley Neighborhood in a census tract is identified by the State Department of Health being vulnerable to adverse health outcomes from environmental exposure due to lower median incomes, higher percentage of persons below the poverty line, higher percentage of Hispanic and non-white residents, and lower education attainment. Fruit Valley may be disproportionately impacted by the proposed ordinance because it contains most of the heavy industrially-zoned land in the City and is adjacent to a major railroad line; however, the ordinance attempts to address these issues by providing for extensive public review of individual applications to site a cleaner fuel facility and attaching stringent development standards related to health, safety and environmental protection.  

The proposed ordinance has the potential to improve safety of existing facilities through seismic upgrades, and any new facilities would be heavily scrutinized for potential environmental or neighborhood impacts. A major improvement is that the proposed ordinance would ban new bulk fossil fuel facilities, coal energy facilities and solid fuel storage uses that would have been allowed in the IH District. Existing bulk fossil fuel facilities would be allowed to convert to cleaner fuels with minimal process and, as an incentive to transition away from fossil fuels, could expand capacity by up to 15% provided the facility meets seismic codes and other standards.  

New small fossil fuel facilities less than 60,000 gallons total would be allowed in the IH Heavy Industrial District as a conditional use, which requires a public hearing to consider specific impacts. New small cleaner fuel facilities less than 60,000 gallons total would be allowed as a limited use in the IH District, subject to administrative approval (no hearing). Both categories of small fuel facility uses would additionally be required to comply with an extensive list of development standards to reduce impacts, including:

• Minimum 1,000’ buffer from residential zoning
• Construction to seismic standards; approval of fire response and spill control plans
• Greenhouse gas (GHG) emission study required
• Financial assurance in case of accident required
• Annual report to City regarding capacity, shipment activity/type required
• Permit oversight by the Southwest Washington Clean Air Agency and WA Department of Ecology

Following a public hearing on September 13, 2022, the Planning Commission voted 3-1 to recommend approval of the proposed ordinance to City Council.

• Ordinance will codify land use regulations that prohibit bulk fossil fuel facilities and other related uses, which is an identified outcome of the moratorium;

• Ordinance will allow existing fossil fuel facilities to be maintained and upgraded, and an  allowed modest increase in capacity is intended to incentivize a conversion to cleaner fuel and upgrade to seismic standards;
• Ordinance will allow for cleaner fuel storage and handling facilities subject to extensive public review and specific development standards in order to promote a transition to cleaner fuels locally.