On February 24, 2024, Environment and Canada Climate Change (ECCC) proposed a new federal regulation titled, ‘Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids)’. This rulemaking has been anticipated for a while – the initial stakeholder engagement took place in summer of 2021.
Currently, there is no federal regulation that addresses volatile organic compound (VOC) emissions reductions from storage tanks and loading operations owned and operated by private companies on private land. Guidance from instruments such as the Canadian Council of Ministers of the Environment (CCME) – CCME PN 1180 (storage tanks) and CCME PN 1057 (vapour recovery at gasoline distribution networks) currently exist; however, these are voluntary and therefore non-abiding. Some provincial and municipal regulations do currently regulate a portion of these emissions (such as Metro Vancouver, Quebec, or Ontario), however there is no consistent nation-wide system to regulate these emission sources. The proposed new federal regulation aims to close this gap and provide a national framework for regulating these emission sources. ECCC aims to improve public health and reduce harmful impacts to the environment by facilitating reductions in VOC and benzene emissions through the implementation of this regulation.
Who will be subject?
Storage tanks and loading operations at facilities such as petroleum terminals, crude oil terminals, refineries, and bulk plants may be subject to these regulations. To be subject, these operations must handle volatile petroleum liquids (defined based on their true vapour pressure (TVP) at ambient temperature or at storage temperature, if heated, and benzene concentration). Substances such as gasoline or crude oil are expected to be subject, whereas substances such as diesel or heating oil are expected to be exempt.
Tanks with capacities less than 4 m3, pressurized tanks, and vehicle tanks are exempt. Low throughput loading racks that pose a lower risk to public health are also exempt. Retail gas stations and offshore facilities are also exempt.
Storage Tanks
Tanks with capacities greater than 100 m3 will be required to implement either a floating roof design or install a vapour control system (vapour recovery or vapour destruction). Tanks storing liquids with high benzene concentration have to install vapour control (i.e., no option for floating roof).
Loading Racks
Subject loading operations will be required to implement vapour control system. Higher risk operations such as gasoline loading above 250,000 m3/year have to install vapour recovery (i.e., vapour destruction not allowed).
Monitoring
The proposed rule has comprehensive monitoring requirements such as monthly Lower Explosive Limit (LEL) testing for internal floating roof tanks, monthly visual inspections, and annual leak detection tests. The rule also requires annual performance test for vapour control systems (to demonstrate compliance with emission limits). Vapour control systems will be required to have continuous monitoring systems installed – either direct emissions or a parameter like firebox temperature.
Repairs
Facilities will be required to repair any identified leaks or defects within 45 days for tanks and within 15 days for loading operations in most instances. Extended timelines may be available in some circumstances.
Registration and Reports
Subject facilities will be required to register with ECCC, maintain accurate inventory onsite, submit annual reports, and submit reports for nonroutine events likes malfunctions, downtimes, or recurring leaks.
Compliance Timeline
New entities will be required to comply with the regulations upon commencement of operations. Existing facilities have a staggered timeline for bringing all subject units into full compliance – typically within 3 years of promulgation of the regulation. Applications can be made to request additional timeline from ECCC.
Conclusion
Requirements contained within the proposed regulation are comprehensive. There are significant capital and operating costs involved with the implementation of floating roof design and/or vapour control systems. Subject facilities will need to dedicate resources to maintain monthly inspection programs, to coordinate testing and sampling, to maintain necessary records and submit required reports to ECCC, and to train personnel adequately.
ECCC is accepting public comments on this proposed regulation through April 24, 2024.
Trinity is here to help! If you would like to assess how this proposed regulation may impact your facility, please email Sundar Sadashivam in Trinity’s Toronto Office or call us at 416.391.2527.
