Two Oregon environmental groups are asking a court to boot a water quality permit for a proposed $2.5 billion renewable diesel refinery back to state regulators.

Hood River-based Columbia Riverkeeper, two local people and the Northwest Environmental Defense Center – a Portland-based nonprofit – have filed a lawsuit in the Multnomah County Circuit Court, claiming a water quality certification the Oregon Department of Environmental Quality issued to NXTClean Fuels earlier this year is “legally deficient.” They are asking the court to send that certification back to DEQ for revision.

“With the type of permit that it is, under the Clean Water Act, the state is supposed to ensure that the facility will not be violating our water quality standards,” said Audrey Leonard, an attorney with Columbia Riverkeeper. “And the conditions on this permit are not protective enough. They’re pretty boilerplate conditions.”

For years, local people and environmental groups have raised concerns the facility could pollute the Columbia River, damage a system of dikes and levees that control water drainage in the area and disrupt nearby working farms.

NXTClean Fuels, also known as NEXT Renewable Fuels, is a Houston-based company proposing to build a large refinery outside Clatskanie at Port Westward, a small industrial park with deep-water access to the Columbia River.

If built, the facility would be able to crank out up to 50,000 barrels a day, or about 750 million gallons a year, of sustainable jet fuel and renewable diesel made with fish grease, used cooking oil and other oils from agricultural crops like soybeans.

Renewable diesel is chemically similar to petroleum-based fuels, which makes it compatible with traditional fossil fuel engines.

Researchers estimate refineries produced about 340 million gallons of sustainable aviation fuel last year, but they expect that number to climb rapidly as companies like NEXT continue developing new projects.

NEXT claims the Oregon facility would generate $45 million per year in local and state tax revenue once in operation and create 240 jobs. Local elected officials and union groups have expressed support for the project.

But some residents and farmers say the risks to the environment outweigh the economic benefits. They say the proposed site sits on loose, unstable soils with a shallow water table and would be prone to liquefaction in the event of a strong earthquake.

“Why would you want to build this facility that is heavier than what we already have out there with more rail cars, more vibration than we have out there and more toxic chemicals that you’re bringing into this region,” said Wendy Schmidt, a farmer and a co-petitioner in the lawsuit.

Schmidt primarily grows hay and oats and raises livestock at her farm. Her property is adjacent to the proposed site. She said if built, the refinery could cause irreparable damage to nearby farms and crucial habitat for migrating salmon on the Columbia River.

“If this facility does go through, there’ll be no more agriculture out here. Because no one will be able to survive it,” Schmidt said.

Some of the tenants at the Port Westward Industrial Park include Portland General Electric’s Beaver Power Plant and the Columbia Pacific Bio-Refinery – which bills itself as the largest ethanol manufacturing facility on the West Coast.

Back in January, DEQ issued NEXT a so-called 401 water quality certification, which certifies the construction and operation of the refinery will comply with state water quality standards. The company needs this state certification before it can receive other federal permits to move forward.

But environmental groups argue DEQ failed to include sufficient conditions in the permit to protect water quality, saying, for example, the state agency ignored the seismic vulnerability of the refinery site, which has soils that could act like a liquid during a strong earthquake, said Leonard.

Columbia Riverkeeper initially appealed DEQs approval of the permit, and asked the agency to reconsider its decision. But in May, DEQ denied that petition for reconsideration. In its reasoning, the agency said seismic standards are addressed in local building codes, and are not water-quality related.

Michael Hinrichs, a spokesperson for NEXT, told OPB the environmental group’s decision to challenge the permit is not surprising.

“This is the standard playbook of Columbia Riverkeeper. They appeal every single decision, and we understand that strategy,” he said. “That’s why we anticipate it all the time.”

Hinrichs said the company has done rigorous research and worked to comply with federal and state regulations.

“The state adhered to its regulations. It made the correct decision. It was asked for reconsideration, and they denied it because they made their decision based on state regulations,” Hinrichs said. “And we anticipate the permit to be upheld.”

Hinrichs said that NEXT is still set to begin construction this year, though it still needs several other permits, including an environmental impact assessment from the U.S. Army Corps of Engineers. That federal agency is set to release a draft assessment later this summer, which will be followed by a public hearing.

News Source : https://www.opb.org/article/2025/06/05/environmental-groups-oregon-court-renewable-diesel-refinery-columbia-river/