Canada’s Federal VOC Regulations: What Facility Operators Need to Prioritize

• Phase 2 controls VOC emissions from petroleum liquid storage tanks and loading racks
• Operators must install, inspect, maintain and repair applicable emissions control equipment and meet recordkeeping and reporting requirements
• Several initial deadlines have passed, with additional requirements taking effect through 2027, 2028 and later years

On March 7, 2025, Environment and Climate Change Canada finalized the Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations (SOR/2025-88), commonly referred to as the Federal VOC Regulations Phase 2. The regulations were published in the Canada Gazette, Part II, on March 26, 2025.

The Phase 1 regulations focused on process equipment fugitive volatile organic compound (VOC) leak detection and repair and fenceline monitoring, whereas the Phase 2 regulations are aimed at controlling emissions from petroleum liquid storage tanks and loading racks. Tanks and loading racks have been identified as significant contributors of VOC emissions, and Phase 2 requires applicable sources to be equipped with emissions control equipment. Operators must install, inspect, maintain and repair that equipment and comply with recordkeeping and reporting requirements.

Facilities subject to the regulations include most petroleum refineries and upgraders; truck, rail, marine and pipeline terminals; petrochemical facilities; bulk fuel facilities and steel mills. Facility exemptions include qualifying upstream oil and gas facilities already subject to federal or provincial methane control requirements, gas plants, retail gas stations or cardlocks, offshore platforms, small storage capacity facilities and certain remote facilities.

Whether controls are required depends on how the petroleum liquid and equipment are classified under the regulations. Operators should evaluate each tank and loading rack based on the material handled, applicable benzene designation and equipment characteristics.

The required control equipment also varies by classification and equipment type. Depending on the applicable requirements, controls may include floating roofs, vapour control systems or other specified emissions control equipment. Operators should confirm the designation and requirements for each regulated tank and loading rack under SOR/2025-88 and document the basis for that determination.

Under the regulations, new tanks, loading racks and control equipment must meet applicable design and performance criteria as the requirements apply. For existing storage tanks and loading racks, phased implementation periods allow additional time to bring equipment into compliance depending on the equipment and emissions risk.

There are accelerated timelines for high benzene tanks and loading racks. The use of floating roof tanks can be extended in qualifying circumstances if a fenceline monitoring (FLM) program demonstrates compliance with specified benzene concentration limits. If those conditions are not met, operators must progressively reduce the number of high benzene tanks using floating roofs instead of vapour control systems.

Where a large proportion of existing tanks or loading racks requires new emissions control equipment, the regulations also provide a deferred application process. Subject to specified conditions, some tanks may remain designated for deferred application through the seventh year and some loading racks through the fifth year, with the number permitted to remain deferred decreasing each year.

Several of the initial compliance dates have now passed, and operators should ensure those requirements have been addressed while preparing for upcoming milestones.

July 5, 2025: The initial facility registration deadline passed. Facilities subject to the regulations were required to submit registration documentation, including an inventory of regulated tanks and loading racks. Annual updates to required registration and inventory information, or notification that no information has changed, are now required within 30 days after each anniversary of the regulations coming into force

July 5, 2025: Action plan requirements came into force for specified activities involving high benzene tanks. Where applicable, operators must develop an action plan and submit it to the Minister at least 30 days before implementation

September 3, 2025: The first FLM report was due for operators continuing to use qualifying floating roofs instead of vapour control systems on existing high benzene tanks. Annual reporting requirements now apply

March 7, 2026: First-anniversary requirements took effect for specified existing tanks, vapour control systems, high benzene tanks and high benzene loading racks

December 31, 2026: The current vapour leak threshold of 10,000 parts per million by volume applies through this date. For releases detected after December 31, 2026, the threshold decreases to 1,000 parts per million by volume

March 7, 2027: For facilities that had three or more qualifying existing high benzene tanks when the regulations came into force, remaining tanks must meet the applicable requirements or no longer qualify as high benzene tanks. Applicable fenceline benzene concentration limits also become more stringent at the second anniversary

March 7, 2028: The three-year compliance milestone applies to many other existing tanks and loading racks. Existing marine loading racks used to load ships or transport barges, other than high benzene loading racks, generally have until the fourth anniversary

Operators should test whether their compliance programs are keeping pace with the phased requirements:

• Action plan and emissions minimization plan development
• FLM program development, implementation and reporting
• FLM data management and trending to identify limit exceedance risks
• Equipment designation and registration updates
• Tank visual inspections and support for lower explosive limit (LEL) testing and inspection documentation
• Regulatory obligation log preparation with actions and deadlines