The U.S. Department of Energy has announced up to $75 million in funding to support construction of a coal export terminal in Oakland, California. The decision marks the latest development in a decade-long dispute involving the project’s backers, city officials, and environmental groups. Litigation over the facility continues in multiple courts.
Investor Phil Tagami first proposed the terminal more than ten years ago as part of a redevelopment plan for a former Army base. A 2013 development agreement with the city initially described an all-purpose bulk terminal, but plans later shifted to exporting coal from Utah.
Oakland officials responded by passing an ordinance that banned coal storage in the city. Developers sued, arguing the move violated the agreement, and courts have issued mixed rulings on the city’s actions. The city later canceled a lease with the developers over missed construction milestones, leading to additional lawsuits.
Energy Secretary Chris Wright said the funding would address limited West Coast export capacity and advance American energy dominance. Environmental groups, including the San Francisco Baykeeper, said the project still requires air quality permits and pledged to scrutinize the process.
The terminal operator, Insight Terminal Solutions, filed for bankruptcy last year and sought more than $650 million in damages from the city, though that ruling was later vacated on appeal.