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PORTLAND, Ore. (AP) — The Oregon Court of Appeals opened the door for Portland to reinstate its ban on the expansion of bulk fossil fuel terminals.

The city passed the ban in 2016 after deciding not to make zoning changes to accommodate a $500 million terminal proposed by a Canadian energy company. The Land Use Board of Appeals struck down Portland’s ordinance, but the Appeals Court reversed that decision Thursday, saying it wasn’t a violation of the commerce clause.

Business groups such as the Western States Petroleum Association say Portland discriminated against out-of-state companies looking to build terminals to export fuels versus those serving in-state customers. The rules limited bulk fuel tanks to 2 million gallons — too small for an international distribution terminal.

The Petroleum Association tells The Oregonian/OregonLive it’s disappointed by the decision. General counsel Oyango Snell says the Portland ordinance punishes Oregon consumers and businesses that rely on affordable fuel.


Information from: The Oregonian/OregonLive,