Limits on VOC Releases from Petroleum Tanks

Summary#

The federal government has made the Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations: SOR/2025-88 under the Canadian Environmental Protection Act, 1999. The rule requires many petroleum storage tanks and vehicle/rail/ship loading racks to have equipment and inspections that limit releases of volatile organic compounds (VOCs) — including the carcinogen benzene — and it came into force on March 7, 2025.

Some parts (notably certain reporting rules) start later — for example subsection 43(3) and section 49 come into force on the 120th day after registration.

What it does#

• Sets who is covered. The rules apply to facilities that meet thresholds such as:
  • total tank storage of volatile petroleum liquids ≥ 500 m3; or
  • total loading of volatile petroleum liquids > 4,000 standard m3 per year; or
  • any tank ≥ 5 m3 storing liquids with benzene > 20% by weight; or
  • any tank ≥ 100 m3 storing liquids with vapour pressure > 76 kPa.
• Requires emissions control equipment on covered tanks and loading racks. Examples:
  • vapour recovery or vapour destruction systems;
  • internal or external floating roofs on tanks; or
  • pressure‑vacuum vents for small tanks.
• Requires standardized sampling and testing methods for vapour pressure, benzene content and VOC concentration. The rules let operators apply to use equivalent alternative test methods, subject to Minister approval.
• Sets inspection, monitoring and repair rules. Examples:
  • monthly and annual inspections for vapour control systems and floating roofs;
  • performance testing of vapour recovery/destruction systems (with continuous monitors on those systems);
  • timelines to repair defects (for example, most vapour‑control defects must be fixed or a temporary control used within 45 days).
• Special rules for high‑benzene situations:
  • tanks or racks handling liquids with benzene > 20% by weight must meet stricter controls and faster timelines (many within one year).
  • existing high‑benzene tanks may be allowed to keep floating roofs only if a fenceline monitoring program shows low benzene at the property edge.
• Phased implementation and transitional relief:
  • new tanks and racks must comply when first used.
  • many existing systems have up to three years (or longer, in some cases) to meet equipment requirements. Some requirements for existing systems phase in over one, three or four years depending on risk and equipment.
• Lists exemptions and limits, including facilities used only for retail fuel sales, certain upstream oil and gas operations, offshore facilities beyond 3 nautical miles, and small or remote sites that meet specified size and distance tests.
• Requires facility registration, record keeping and some reports to the Minister.

Who's affected#

• Operators of petroleum storage and loading sites such as:
  • crude oil and product terminals,
  • refinery and upgrader facilities,
  • petrochemical plants,
  • bulk fuel distribution plants, and
  • some iron and steel facilities that store or load volatile liquids.
• Facilities that meet the size, loading or product‑property thresholds listed above. Many small retail gas stations are excluded. Some small or remote bulk plants may also be exempt if they meet the rule’s tests.
• Workers who operate, inspect and repair tanks and vapour control equipment (they must be trained and some inspections require certified inspectors).
• Neighbouring communities and Indigenous groups near regulated facilities. The rule and the related Interim Order were developed in part because of air quality concerns raised by communities such as the Aamjiwnaang First Nation.
• If an operator wants to use alternative emissions control technology or a different test method, they must apply for Ministerial approval.

Why it matters#

• The Regulations aim to cut large sources of VOCs from storage and loading operations. Over the analysis period the government estimated reductions of about 488 kilotonnes of VOCs and about 7.8 kilotonnes of methane. That lowers smog formation and greenhouse‑gas damage.
• Benzene and some other VOCs are hazardous to health. The rules target shorter repair timelines and stricter controls where benzene risks are highest. Health Canada estimated the air‑quality improvements could prevent premature deaths and reduce illness (the Regulatory Impact Analysis Statement estimated monetized health benefits of about $1.1 billion over the analysis period).
• The government’s cost‑benefit analysis estimates total benefits of about $1.5 billion and total costs of about $1.2 billion, giving a net benefit of roughly $299 million; product recovered by better controls was estimated at about $350 million in value.
• For people living near terminals, refineries or chemical plants, the rules mean more inspections, faster repairs and tighter controls that should lower local air pollution and the risks from carcinogenic vapours like benzene.
• For operators, the rules mean upfront equipment and installation costs, then ongoing inspection, monitoring and record‑keeping obligations. The Regulations provide phased timelines and some exemptions to reduce disruption where risks are low.