Canada Gazette, Part I, Volume 158, Number 23: Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations
June 8, 2024
Statutory authority
Canadian Environmental Protection Act, 1999
Sponsoring department
Department of the Environment
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Issues
The Department of the Environment (the Department) administers various regulations under the Canadian Environmental Protection Act, 1999 (CEPA), including the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations (the Regulations), which set requirements for petroleum and allied petroleum storage tank systems under federal jurisdiction. When the Regulations were made, they incorporated by reference the technical standards that were available to the storage tank industry at the time. Since then, these technical standards have been updated. Amendments to the Regulations are needed for regulated partiesfootnote 1 to be able to acquire the latest storage tank equipment that meets these updated technical standards.
Background
The Regulations, which came into effect in June 2008, set requirements for petroleum and allied petroleum storage tank systems under federal jurisdiction to prevent soil and groundwater contamination. The Regulations apply to storage tank systems located on Aboriginal land, including those owned or operated by band councils or private businesses like gas stations. They also cover storage tank systems situated on federal land, such as those in federal parks managed by private companies, as well as systems operated by, or belonging to, federal departments, boards, or agencies, regardless of their location. Additionally, the Regulations extend to storage systems that are part of, or provide services to, federal works or undertakings, including railways, port authorities and airports.
In terms of ownership and operation, 50% of these storage tank systems are managed by First Nations communities and small businesses on Aboriginal land; 15% are operated by third parties on federal land and are classified as small businesses; 5% are overseen by federal entities; and the remaining 30% are part of federal works or undertakings.footnote 2 The Regulations specify which storage tanks and components can be installed. This storage tank system equipment must have a certification mark that shows it meets the technical standards prescribed in section 14 of the Regulations. Some standards are directly referred to in the Regulations and others refer to select parts of the Environmental Code of Practice for Aboveground and Underground Storage Tank Systems Containing Petroleum and Allied Petroleum Products (CCME Code).footnote 3
The Department conducts periodic reviews of industry technical standards to ensure that the Regulations align with the latest industry practices and remain up to date. The most recent review indicated that amendments to the Regulations are needed to align the existing technical standards currently referenced in the Regulations with their updated versions.
Objective
The objective of the proposed Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations (the proposed amendments) is to update the existing references to technical standards incorporated by reference in the Regulations, ensuring the inclusion of the most up-to-date technical standard titles. The proposed amendments are intended to facilitate compliance for regulated parties, enabling them to acquire equipment certified in accordance with the technical standards that are current at the time of manufacturing of the storage tanks or components.
Description
The proposed amendments would modify the regulatory text in section 14 of the Regulations by updating references to 48 technical standards. This update would involve revising references to technical standards incorporated within the Regulations, ensuring that the most current titles of these technical standards are accurately reflected. The proposed amendments would update references to titles for 38 technical standards incorporated by reference in the CCME Code. For example, ORD-C58.15-1992, Overfill Protection Devices for Flammable Liquid Storage Tanks is currently incorporated by reference in the CCME Code, and ANSI/CAN/UL/ULC 2583 Standard for Fuel Tank Accessories for Flammable and Combustible Liquids, a harmonized standard, would be added as the most recent version of this standard. The proposed amendments would also update references to 10 standards incorporated by reference in the Regulations that are out of date. For example, CAN/ULC-S660, Standard for Nonmetallic Underground Piping for Flammable and Combustible Liquids is currently prescribed in the Regulations, and CAN/ULC-S679, Standard for Metallic and Nonmetallic Underground Piping for Flammable and Combustible Liquids would be added to reflect the most recent version. The proposed amendments would also remove the year of reference from all technical standards, retaining only the title.
Regulatory development
Consultation
In 2022, the Department conducted a planned review of the Regulations and engaged with Indigenous peoples, regulated parties, industry and other interested parties to gather input on the implementation of the Regulations. As part of this engagement, the Department received numerous comments expressing support for improving the Regulations. A comprehensive summary of these comments is available in the What we heard report.
One common suggestion was the need to update the technical standards referenced in the Regulations, including options to simplify the incorporations by reference. The focus of these comments was on ensuring that the most current and relevant technical standards for the design and installation of storage tank systems are included. Consequently, the proposed amendments aim to ensure that the technical standards referenced in the Regulations are current.
Modern treaty obligations and Indigenous engagement and consultation
This proposal is not expected to impact differently, directly or indirectly, the rights of Indigenous peoples. It would respect the federal government’s obligations in relation to rights protected by section 35 of the Constitution Act, 1982, modern treaties, and international human rights obligations.
Regulatory analysis
Benefits and cost
A compliance gap currently exists for regulated parties installing new storage tank equipment that complies with updated technical standards that are not yet prescribed in the Regulations. The proposed amendments would address this compliance gap by updating the technical standards referenced in the Regulations to the latest industry technical standards. These amendments would facilitate the acquisition and installation of compliant storage tank system equipment without imposing additional costs or administrative burden on regulated parties. There would be no requirement for new or different specifications, so no additional costs would be carried by regulated parties.
The proposed amendments would bring the Regulations in line with current technical standards recognized in the industry without adding new compliance or administrative burdens.
Small business lens
Analysis under the small business lens concluded that the proposed amendments will not impact Canadian small businesses as the proposed amendments are not expected to result in incremental costs to businesses.
One-for-one rule
The one-for-one rule does not apply as there is no impact on business. The proposed amendments would neither introduce new administrative costs for businesses nor introduce or repeal existing regulatory titles.
Regulatory cooperation and alignment
The proposed amendments are not expected to have any impact on regulatory cooperation, agreements nor obligations. The 48 technical standards updates being proposed include four that would be harmonized with Canadian and American standards (ANSI/CAN/UL/ULC). These harmonized standards facilitate the certification of storage tank equipment across jurisdictions, which may make it easier for regulated entities to acquire storage tanks and components.
Strategic environmental assessment
The proposed amendments would not alter current regulatory obligations, nor change existing environmental protections. Therefore, no important positive or negative environmental effects are anticipated as a result of the proposed amendments. The proposal is therefore exempt from the strategic environmental assessment (SEA) process as per the Department’s SEA policy and in accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal.
Implementation, compliance and enforcement, and service standards
The proposed amendments would come into force on the day on which they are registered. The proposed amendments would not necessitate any implementation plan, nor would they impose new compliance and enforcement requirements. Similarly, no new service standards are introduced as part of these amendments.
Contacts
Astrid Télasco
Director
Waste Reduction and Management Division
Plastics and Waste Management Directorate
Environmental Protection Branch
Environment and Climate Change Canada
Email: registrereservoir-tankregistry@ec.gc.ca
Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Environment and Climate Change Canada
Email: ravd-darv@ec.gc.ca
PROPOSED REGULATORY TEXT
Notice is given, under subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999 footnote b, that the Governor in Council proposes to make the annexed Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations under section 209footnote c of that Act.
Any person may, within 60 days after the date of publication of this notice, file with the Minister of the Environment comments with respect to the proposed Regulations or a notice of objection requesting that a board of review be established under section 333footnote d of that Act and stating the reasons for the objection. Persons filing comments are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website. Persons filing comments by any other means, and persons filing a notice of objection, should cite the Canada Gazette, Part I, and the date of publication of this notice, and send the comments or notice of objection to Astrid Télasco, Director, Waste Reduction and Management Division, Environmental Protection Branch, Department of the Environment, 351 Saint-Joseph Blvd., Gatineau, Quebec K1A 0H3 (email: registrereservoir-tankregistry@ec.gc.ca).
A person who provides information to the Minister may submit with the information a request for confidentiality under section 313footnote e of that Act.
Ottawa, May 30, 2024
Wendy Nixon
Assistant Clerk of the Privy Council
Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations
Amendments
1 (1) The portion of subsection 14(1) of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations footnote 4 before paragraph (d) is replaced by the following:
(1) The owner or operator of a storage tank system that installs the system or any component of the system on or after June 12, 2008 must ensure that the system or the component conforms to the applicable requirements set out in the following provisions of the CCME Code of Practice, subject to subsection (6.1) of this section:
- (a) Part 3, excluding Section 3.2, Clause 3.3.1(1)(c), Article 3.3.2, Clause 3.4.1(1)(c), Article 3.4.3, Clauses 3.5.1(1)(a) and 3.6.1(1)(l), Section 3.7, Clause 3.9.2(2)(a), Articles 3.9.4 and 3.10.1;
- (b) Part 4, subject to the following:
- (i) excluding Articles 4.2.1 to 4.2.3, Clauses 4.2.4(1)(e) and 4.2.4(2)(h), Articles 4.2.5 and 4.2.6, Sentences 4.2.8(1) to 4.3.1(1) and 4.3.6(1) to 4.3.8(1), Section 4.4, Clauses 4.5.1(1)(a), (c) and (d) and Sentences 4.5.2(1) to (4) and 4.5.3(2), and
- (ii) in Clause 4.5.1(1)(b),
- (A) the reference to “CAN/ULC-S603-1992, ‘Underground Steel Tanks’” must be read as a reference to “CAN/ULC-S603, Standard for Steel Underground Tanks for Flammable and Combustible Liquids”, and
- (B) the reference to “CAN/ULC-S603.1-1992, ‘Galvanic Corrosion Protection Systems for Underground Steel Tanks’” must be read as a reference to “CAN/ULC-S603.1, Standard for External Corrosion Protection Systems for Steel Underground Tanks for Flammable and Combustible Liquids”;
- (c) Part 5, subject to the following:
- (i) excluding Clauses 5.2.1(1)(d) to (f), Articles 5.2.4 to 5.2.6, Clause 5.4.2(1)(b), Sentence 5.4.3(1) and Section 5.5,
- (ii) in Clause 5.4.2(1)(c),
- (A) the reference to “API RP 1632-96, ‘Cathodic Protection of Underground Storage Tank and Piping Systems’” must be read as a reference to “API RP 1632, Cathodic Protection of Underground Petroleum Storage Tanks and Piping Systems”, and
- (B) the reference to “API Std 2610-94, ‘Design, Construction, Operation, Maintenance and Inspection of Terminal and Tank Facilities’” must be read as a reference to “API Std 2610, Design, Construction, Operation, Maintenance, and Inspection of Terminal and Tank Facilities”;
- (iii) in Clauses 5.4.4(1)(a) to (c), the references to standards must be read as references to one of the following, whichever is in effect at the time the system or component is manufactured:
- (A) ULC/ORD-C971, Nonmetallic Underground Piping for Flammable and Combustible Liquids,
- (B) CAN/ULC-S660, Standard for Nonmetallic Underground Piping for Flammable and Combustible Liquids,
- (C) CAN/ULC-S679, Standard for Metallic and Nonmetallic Underground Piping for Flammable and Combustible Liquids; and
(2) Subsection 14(2) of the Regulations is replaced by the following:
(2) The owner or operator of a storage tank system that has aboveground tanks that installs those tanks on or after June 12, 2008 must ensure that
- (a) the spill containment device, whether installed on the tank at the fill opening or attached to the remote fill station, bears a certification mark certifying conformity with one of the following standards, whichever is in effect at the time the storage tank system is manufactured:
- (i) ULC/ORD-C142.19, Spill Containment Devices for Aboveground Flammable and Combustible Liquid Storage Tanks,
- (ii) CAN/ULC-S663, Standard for Spill Containment Devices for Flammable and Combustible Liquid Aboveground Storage Tanks,
- (iii) ANSI/CAN/UL/ULC 2583, Standard for Fuel Tank Accessories for Flammable and Combustible Liquids; or
- (b) the tank is equipped with a spill containment device and bears a certification mark certifying conformity with one of the following standards:
- (i) CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil,
- (ii) CAN/ULC-S653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids,
- (iii) ULC/ORD-C142.5, Concrete Encased Steel Aboveground Tank Assemblies for Flammable and Combustible Liquids, or CAN/ULC-S677, Standard for Fire Tested Aboveground Tank Assemblies for Flammable and Combustible Liquids, whichever is in effect at the time the storage tank system is manufactured,
- (iv) ULC/ORD-C142.18, Rectangular Steel Above-ground Tanks for Flammable and Combustible Liquids, or CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids, whichever is in effect at the time the storage tank system is manufactured,
- (v) ULC/ORD-C142.21, Aboveground Used Oil Systems, or CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil, whichever is in effect at the time the storage tank system is manufactured,
- (vi) ULC/ORD-C142.22, Contained Vertical Steel Aboveground Tank Assemblies for Flammable and Combustible Liquids, or CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids, whichever is in effect at the time the storage tank system is manufactured.
(3) Subparagraph 14(3)(a)(i) of the Regulations is replaced by the following:
- (i) if used for storing used oil, CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil, and
(4) Clauses 14(3)(a)(ii)(A) and (B) of the Regulations are replaced by the following:
- (A) CAN/ULC-S603, Standard for Steel Underground Tanks for Flammable and Combustible Liquids, or
- (B) CAN/ULC-S603.1, Standard for External Corrosion Protection Systems for Steel Underground Tanks for Flammable and Combustible Liquids;
(5) Subparagraphs 14(3)(b)(i) and (ii) of the Regulations are replaced by the following:
- (i) if used for storing used oil, CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil, and
- (ii) if used for storing other petroleum products or allied petroleum products, CAN/ULC-S615, Standard for Fibre Reinforced Plastic Underground Tanks for Flammable and Combustible Liquids, or ANSI/CAN/UL/ULC 1316, Standard for Fibre Reinforced Underground Tanks for Flammable and Combustible Liquid, whichever is in effect at the time the storage tank system is manufactured; and
(6) Paragraph 14(4)(a) of the Regulations is replaced by the following:
- (a) those tanks must bear a certification mark certifying conformity with CAN/ULC-S603.1, Standard for External Corrosion Protection Systems for Steel Underground Tanks for Flammable and Combustible Liquids; or
(7) Subparagraphs 14(5)(b)(i) and (ii) of the Regulations are replaced by the following:
- (i) one of the standards referred to in Clauses 5.2.1(1)(a) to (c) and (g) of the CCME Code of Practice, subject to subsection (6.1) of this section, or
- (ii) ULC/ORD-C971, Nonmetallic Underground Piping for Flammable and Combustible Liquids, CAN/ULC-S660, Standard for Nonmetallic Underground Piping for Flammable and Combustible Liquids, or CAN/ULC-S679, Standard for Metallic and Nonmetallic Underground Piping for Flammable and Combustible Liquids, whichever is in effect at the time the storage tank system is manufactured.
(8) Section 14 of the Regulations is amended by adding the following after subsection (6):
(6.1) For the purposes of subsections (1) and (5), any reference to a standard in the provisions of the CCME Code of Practice set out in column 1 of Schedule 4 must be read as a reference to
- (a) if only one standard is set out in column 2, the standard that is set out in that column; or
- (b) if more than one standard is set out in column 2, any one of those standards, whichever is in effect at the time the storage tank system’s component is erected or manufactured.
2 The Regulations are amended by adding, after Schedule 3, the Schedule 4 set out in the schedule to these Regulations.
Coming into Force
3 These Regulations come into force on the day on which they are registered.
SCHEDULE
(Section 2)
SCHEDULE 4
(Subsection 14(6.1))
| Item | Column 1 Provision of the CCME Code of Practice |
Column 2 Standard |
|---|---|---|
| 1 | 3.3.1(1)(e)(iii) | ANSI/API Std 2350, Overfill Prevention for Storage Tanks in Petroleum Facilities |
| 2 | 3.4.1(1)(e)(ii) |
|
| 3 | 3.5.1(1)(b) | CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 4 | 3.5.1(2) | CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 5 | 3.6.1(1)(a) | API Std 650, Welded Tanks for Oil Storage |
| 6 | 3.6.1(1)(b) | CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids |
| 7 | 3.6.1(1)(c) | CAN/ULC-S602, Standard for Aboveground Steel Tanks for Fuel Oil and Lubricating Oil |
| 8 | 3.6.1(1)(d) | CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids |
| 9 | 3.6.1(1)(e) | CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids |
| 10 | 3.6.1(1)(f) | CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 11 | 3.6.1(1)(g) | CAN/ULC-S653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids |
| 12 | 3.6.1(1)(h) | CAN/ULC-S677, Standard for Fire Tested Aboveground Tank Assemblies for Flammable and Combustible Liquids |
| 13 | 3.6.1(1)(i) | CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids |
| 14 | 3.6.1(1)(j) | CAN/ULC-S652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 15 | 3.6.1(1)(k) | CAN/ULC-S601, Standard for Shop Fabricated Steel Aboveground Tanks for Flammable and Combustible Liquids |
| 16 | 3.6.2 |
|
| 17 | 3.6.3 | CAN/ULC-S664, Standard for Containment Sumps, Sump Fittings, and Accessories for Flammable and Combustible Liquids |
| 18 | 3.6.4 | CAN/ULC-S668, Standard for Liners Used for Secondary Containment of Aboveground Flammable and Combustible Liquid Tanks |
| 19 | 3.6.6(1)(a) | API Spec 12B, Specification for Bolted Tanks for Storage of Production Liquids |
| 20 | 3.6.6(1)(b) | API Spec 12D, Specification for Field-welded Tanks for Storage of Production Liquids |
| 21 | 3.6.6(1)(c) | API Spec 12F, Specification for Shop-welded Tanks for Storage of Production Liquids |
| 22 | 3.8.1(1)(a) | API RP 651, Cathodic Protection of Aboveground Petroleum Storage Tanks |
| 23 | 3.8.1(1)(b) | API Std 653, Tank Inspection, Repair, Alteration, and Reconstruction |
| 24 | 3.8.1(1)(c) | NACE SP0193, Application of Cathodic Protection to Control External Corrosion of Carbon Steel On-Grade Storage Tank Bottoms |
| 25 | 3.8.1(1)(d) | STI R893, Recommended Practice for External Corrosion Protection of Shop Fabricated Aboveground Tank Floors |
| 26 | 3.8.2(1)(b) | API Std 653, Tank Inspection, Repair, Alteration, and Reconstruction |
| 27 | 3.9.1(2)(a) | CAN/ULC-S653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids |
| 28 | 3.9.1(2)(b) | CAN/ULC-S655, Standard for Aboveground Protected Tank Assemblies for Flammable and Combustible Liquids |
| 29 | 3.9.1(2)(c) | CAN/ULC-S677, Standard for Fire Tested Aboveground Tank Assemblies for Flammable and Combustible Liquids |
| 30 | 3.9.2(1)(a)(i) | CAN/ULC-S668, Standard for Liners Used for Secondary Containment of Aboveground Flammable and Combustible Liquid Tanks |
| 31 | 3.9.2(1)(a)(ii) | CAN/ULC-S653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids |
| 32 | 3.10.3(1)(a) | CAN/ULC-S656, Standard for Oil-Water Separators |
| 33 | 4.3.2 |
|
| 34 | 4.3.3 | CAN/ULC-S664, Standard for Containment Sumps, Sump Fittings, and Accessories for Flammable and Combustible Liquids |
| 35 | 4.3.4 | CAN/ULC-S664, Standard for Containment Sumps, Sump Fittings, and Accessories for Flammable and Combustible Liquids |
| 36 | 4.3.5 | CAN/ULC-S668, Standard for Liners Used for Secondary Containment of Aboveground Flammable and Combustible Liquid Tanks |
| 37 | 4.5.1(1)(b)(ii) | NACE SP0285, External Corrosion Control of Underground Storage Tank Systems by Cathodic Protection |
| 38 | 4.5.3(1)(a) | CAN/ULC-S603, Standard for Steel Underground Tanks for Flammable and Combustible Liquids |
| 39 | 5.2.1(1)(a) | ASTM A53/A53M, Standard Specification for Pipe, Steel, Black and Hot-Dipped, Zinc-Coated, Welded and Seamless |
| 40 | 5.2.1(1)(b) | CSA Z245.1, Steel pipe |
| 41 | 5.2.1(1)(c) | CAN/ULC-S633, Standard for Flexible Connector Piping for Fuels |
| 42 | 5.2.1(1)(g) | ANSI/CAN/UL-536, Standard for Safety Flexible Metallic Hose |
| 43 | 8.6.1(1)(a) | CAN/ULC-S603.1, Standard for External Corrosion Protection Systems for Steel Underground Tanks for Flammable and Combustible Liquids |
| 44 | 8.6.1(1)(b) | NACE SP0169, Control of External Corrosion on Underground or Submerged Metallic Piping Systems |
| 45 | 8.6.1(1)(c) | NACE SP0285, External Corrosion Control of Underground Storage Tank Systems by Cathodic Protection |
| 46 | 8.6.1(1)(d) | NACE SP0193, Application of Cathodic Protection to Control External Corrosion of Carbon Steel On-Grade Storage Tank Bottoms |
| 47 | 8.6.1(1)(e) | NACE TM0101, Measurement Techniques Related to Criteria for Cathodic Protection of Underground Storage Tank Systems |
| 48 | 8.6.1(1)(g) | API RP 651, Cathodic Protection of Aboveground Petroleum Storage Tanks |
| 49 | 8.7.2(a) | CAN/ULC-S664, Standard for Containment Sumps, Sump Fittings, and Accessories for Flammable and Combustible Liquids |
| 50 | 8.7.2(b) |
|
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