Reduce VOC Releases from Petroleum Storage and Loading

Summary#

This is a proposed set of federal rules called the Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations. It would require storage tanks and loading racks at many petroleum and petrochemical facilities to have vapour controls, regular inspections, repairs and record-keeping. The regulators estimate the rules would cut fugitive VOCs by about 494 kilotonnes, cut methane by about 8 kilotonnes, and produce a net present‑value benefit of about $337 million. The proposal was published on February 24, 2024 by Environment and Climate Change Canada and Health Canada and is open for comment for 60 days.

What it does#

• Requires fixed equipment to control vapour losses:
  • Storage tanks would generally need floating roofs, pressure‑vacuum vents or vapour control systems depending on size and the product handled.
  • Loading racks (truck, rail, marine) would generally need vapour recovery or vapour destruction systems, with vapour balancing allowed at some bulk plants.
• Sets inspection, testing and repair routines:
  • Monthly visual checks for some floating roofs and monthly checks for vapour system leaks.
  • Annual performance tests and more extensive internal inspections every 20 years for some tanks.
  • Repair deadlines (examples): vapour control system defects generally repaired within 15 days (with some extensions); floating roof defects within 45 days (extensions up to 180 days in some situations).
• Record‑keeping and registration:
  • Operators must keep inspection, repair and equipment records (retained for 6 years) and register facilities with the federal government.
• Phased compliance schedule:
  • New tanks and loading racks must comply when first used.
  • Existing equipment would be phased in: many controls are to be in place within 1–3 years, with longer staged timelines where many retrofits are needed — up to 7 years for tanks and up to 5 years for loading racks. At least 80% of tanks at a facility must be compliant within the first 3 years in most cases.
• Limits and exclusions:
  • The rules target terminals, refineries, upgraders, petrochemical facilities and bulk plants that meet size or throughput thresholds (for example, many tanks ≥ 100 m3 or loading above roughly 500,000 standard litres per day or 25 million standard litres per year).
  • Exemptions include retail fuel stations, very small tanks (under 4 m3), some upstream oil and gas equipment already covered by other rules, and offshore sites more than 5 km from shore.

Who's affected#

• Main businesses:
  • Petroleum terminals (crude and refined), primary product terminals, refineries, upgraders and petrochemical plants.
  • Some bulk plants that store and load volatile petroleum liquids.
• Workers and operators:
  • Plant managers, maintenance crews and contractors who inspect, repair and operate control equipment.
• Nearby communities:
  • People living close to large storage and loading sites — including some Indigenous communities named in consultations — could see the biggest air quality changes. The proposal cites communities such as the Aamjiwnaang First Nation as examples of places with elevated benzene measurements.
• Small businesses:
  • The government estimates very few small businesses would be in scope (the analysis identified about 3 small businesses that might be affected).
• Scale of coverage:
  • The departmental inventory used in the analysis identified roughly 243 facilities across Canada that could fall in scope (numbers vary by province).

If it is unclear whether a particular site would be covered, the owner/operator would need to check the thresholds in the text (product volatility, tank size, throughput, and distance from buildings or population centres).

Why it matters#

• Health risks: VOCs help form ground‑level ozone and fine particulate matter (PM2.5). Both pollutants worsen respiratory and cardiovascular disease and increase premature deaths. Some VOCs, notably benzene, are known human carcinogens. The departments estimate the air‑quality improvements from this proposal could avoid about 150 premature deaths and reduce many sick days over the analytic period.
• Local air quality: Storage and loading operations can produce high, localised VOC and benzene emissions. The rules aim to provide a consistent national standard so people living near terminals and refineries have the same basic protections regardless of province or municipality.
• Climate and product benefits: Reduced fugitive releases would modestly lower methane emissions (about 8 kt over the analysis period) and recover hydrocarbons that would otherwise be lost; the analysis monetizes recovered products and climate benefits as part of the overall benefit estimate.
• Costs and trade‑offs: The government’s cost‑benefit analysis estimates benefits of about $1.43 billion and costs of about $1.09 billion (present value), giving the estimated net benefit of $337 million. Most costs are for industry to buy and install control equipment and to operate and inspect it; governments would have additional enforcement and administration costs.
• Next steps: These are proposed regulations, not final. The Canada Gazette notice invited comments for 60 days after publication. The final rules (if adopted) would set the official coming‑into‑force date and the precise compliance timelines.