Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations and the Environmental Violations Administrative Monetary Penalties Regulations: SOR/2025-167
Canada Gazette, Part II, Volume 159, Number 19
Registration
SOR/2025-167 August 28, 2025
CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999
ENVIRONMENTAL VIOLATIONS ADMINISTRATIVE MONETARY PENALTIES ACT
P.C. 2025-624 August 28, 2025
Whereas, under subsection 332(1)footnote a of the Canadian Environmental Protection Act, 1999 footnote b, the Minister of the Environment published in the Canada Gazette, Part I, on June 8, 2024 a copy of proposed Regulations under the title Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, title that has since been changed, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;
And whereas, under subsection 209(3) of that Act, before the Regulations were recommended, the Minister of the Environment offered to consult with the governments of the territories to which those amendments apply and with the members of the Committee who are representatives of Aboriginal governments that have jurisdiction over Aboriginal land to which those amendments apply;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Environment, makes the annexed Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations and the Environmental Violations Administrative Monetary Penalties Regulations under
- (a) section 209footnote c of the Canadian Environmental Protection Act, 1999 footnote b; and
- (b) subsection 5(1) of the Environmental Violations Administrative Monetary Penalties Act footnote d.
Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations and the Environmental Violations Administrative Monetary Penalties Regulations
Canadian Environmental Protection Act, 1999
Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations
1 (1) The portion of subsection 14(1) of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations footnote 1 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) and 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’” is to 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’” is to 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’” is to 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’” is to be read as a reference to “API Std 2610, Design, Construction, Operation, Maintenance, and Inspection of Terminal and Tank Facilities”, and
- (iii) in Clauses 5.4.4(1)(a) to (c), the references to standards are to 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) The portion of subsection 14(2) of the Regulations before subparagraph (b)(iv) 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 Safety 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 652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil,
- (ii) CAN/ULC 653, 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 677, 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,
(3) Subparagraph 14(2)(b)(iv) of the French version of the Regulations is replaced by the following:
- (iv) la norme ULC/ORD-C142.18 intitulée Rectangular Steel Aboveground Tanks for Flammable and Combustible Liquids ou la norme CAN/ULC-S601 intitulée Norme sur les réservoirs hors sol en acier fabriqués en usine pour liquides inflammables et combustibles, selon celle de ces normes qui est en vigueur au moment de la fabrication du système de stockage,
(4) Subparagraph 14(2)(b)(v) of the Regulations is replaced by the following:
- (v) ULC/ORD-C142.21, Aboveground Used Oil Systems, or CAN/ULC 652, 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,
(5) Subparagraph 14(2)(b)(vi) of the French version of the Regulations is replaced by the following:
- (vi) la norme ULC/ORD-C142.22 intitulée Contained Vertical Steel Aboveground Tank Assemblies for Flammable and Combustible Liquids ou la norme CAN/ULC-S601 intitulée Norme sur les réservoirs hors sol en acier fabriqués en usine pour liquides inflammables et combustibles, selon celle de ces normes qui est en vigueur au moment de la fabrication du système de stockage.
(6) Subparagraph 14(3)(a)(i) of the Regulations is replaced by the following:
- (i) if used for storing used oil, CAN/ULC 652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil, and
(7) 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;
(8) Subparagraphs 14(3)(b)(i) and (ii) of the Regulations are replaced by the following:
- (i) if used for storing used oil, CAN/ULC 652, 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
(9) 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
(10) 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.
(11) 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 is to 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.
Environmental Violations Administrative Monetary Penalties Act
Environmental Violations Administrative Monetary Penalties Regulations
| Item | Column 1 Provision |
Column 2 Violation Type |
|---|---|---|
| 0.1 | 2.1(1) | C |
| 0.2 | 2.1(3) | C |
| Item | Column 1 Provision |
Column 2 Violation Type |
|---|---|---|
| 21.1 | 14(7) | B |
Coming into Force
5 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 652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 4 | 3.5.1(2) | CAN/ULC 652, 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 652, Standard for Tank Assemblies for the Collection, Storage and Removal of Used Oil |
| 11 | 3.6.1(1)(g) | CAN/ULC 653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids |
| 12 | 3.6.1(1)(h) | CAN/ULC 677, 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 652, 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 |
|
| 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 653, Standard for Aboveground Horizontal Steel Contained Tank Assemblies for Flammable and Combustible Liquids |
| 28 | 3.9.1(2)(b) | CAN/ULC 655, Standard for Aboveground Protected Tank Assemblies for Flammable and Combustible Liquids |
| 29 | 3.9.1(2)(c) | CAN/ULC 677, 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 653, 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 |
|
| 35 | 4.3.4 |
|
| 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) |
|
| 42 | 5.2.1(1)(g) | ANSI/CAN/UL 536, Standard for Safety for 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) |
|
| 50 | 8.7.2(b) |
|
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 3 to be able to acquire and install the latest storage tank equipment that meets these updated technical standards.
As well, amendments to the Environmental Violations Administrative Monetary Penalties Regulations are needed to designate certain provisions of the Regulations as being subject to administrative monetary penalties in cases of non-compliance.
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 4 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 (Canadian Council of Ministers of the Environment [CCME] Code).footnote 5
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.
The Department also administers the Environmental Violations Administrative Monetary Penalties Regulations (EVAMPR), which allow the Department’s enforcement officers to issue administrative monetary penalties (AMPs) for non-compliance with certain regulatory and legislative obligations, including certain provisions of the Regulations. Violations may be classified as Type A, B, C, D, or E, depending on the nature of the violation. These classificationsfootnote 6 inform the baseline penalty amount of the administrative monetary penalty.
The Department has identified three existing subsections of the Regulations that are currently not subject to administrative monetary penalties. Two of these subsections (subsections 2.1(1) and 2.1(3)) relate to fuel releases into the environment, while the third (subsection 14(7)) pertains to installation requirements. These need to be designated as violations under the EVAMPR to align with other sections of the Regulations subject to administrative monetary penalties.
Objective
The objective of the Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations (the 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 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 amendments modify the regulatory text in section 14 of the Regulations by updating references to 48 technical standards. This update involves revising references to technical standards incorporated within the Regulations, ensuring that the most current titles of these technical standards are accurately reflected. The amendments 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 Safety for Fuel Tank Accessories for Flammable and Combustible Liquids, a harmonized standard, is added as the most recent version of this standard. The amendments 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 is added to reflect the most recent version. The amendments also remove the year of reference from all technical standards, retaining only the title.
In addition, the amendments designate subsections of the Regulations as subject to administrative monetary penalties in cases of non-compliance under the EVAMPR. Subsections 2.1(1) and 2.1(3), related to releases, are designated as Type C violations, which are the most serious compliance issues designated under EVAMPR for regulations made under the CEPA. Type C violations, by their nature, always result in harm to the environment. Subsection 14(7), related to installation requirements, is designated as a Type B violation, which is a violation of moderate severity, and typically involves the risk of harm to the environment.
Regulatory development
Consultation
Consultations prior to the publication of the proposed amendments in the Canada Gazette, Part I
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 detailed 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, as part of the first phase of the amendment process, the amendments aim to ensure that the technical standards referenced in the Regulations remain current.
Stakeholders also advocated for more substantial amendments aimed at modernizing the Regulations. To address these concerns, the Department is undertaking a separate regulatory process to align the Regulations with current practices and technologies.
Consultations following the publication of the proposed amendments in the Canada Gazette, Part I
The proposed Regulations Amending the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations were published in the Canada Gazette, Part I, on June 8, 2024, for a 60-day consultation period. Additionally, the proposed amendments were made available on the Government of Canada’s new online regulatory consultation platform, inviting regulated parties, industry and other interested parties to submit their feedback. Approximately 1 450 interested parties were notified by email regarding the formal consultation process.
During the consultation period, 11 stakeholders, representing governments, a standards association, industry associations, engineering consultants, other government departments, and individuals, provided comments. The majority of these comments expressed support for the initiative to update existing technical standards in the Regulations.
One stakeholder recommended corrections to standard title references, which have been incorporated into the amendments.
Six stakeholders proposed adding new standards, including standards for piping and bladders. The Department considered the addition of these standards and determined that significant modifications to the Regulations would be required to incorporate these standards. As the objective of the amendments is to update the titles of technical standards currently referenced in the Regulations to ensure alignment with the latest versions in a timely manner, the addition of new standards will be addressed as part of the second phase of comprehensive amendments.
Several stakeholders sought clarification on specific proposed changes, which were addressed and resolved through follow-up meetings. Comments suggesting the need for a more comprehensive overhaul of the Regulations, such as removing the CCME Code incorporated by reference, increasing flexibility in installation requirements, and reflecting evolving industry practices, will be considered in the second phase of the comprehensive amendments. One stakeholder raised concerns about the transition away from fossil fuels; however, this broader policy issue lies beyond the scope of the amendments, which are focused on pollution prevention.
The National Advisory Committee (NAC), established under the CEPA, was also consulted on the proposed amendments, and no comments were received.
On October 28, 2024, emails were sent to 1 450 interested parties for a 30-day consultation period to propose including the designation of three existing provisions [ss. 2.1(1), 2.1(3), and 14(7)] from the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations under Schedule 1, Part 5, Division 13 of the Environmental Violations Administrative Monetary Penalties Regulations as part of the amendments. Interested parties did not raise concerns about the designation.
Modern treaty obligations and Indigenous engagement and consultation
The amendments are not expected to impact differently, directly or indirectly, the rights of Indigenous peoples. They 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 costs
The benefits and costs of the amendments were assessed in accordance with Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals, which includes identifying, quantifying and, where possible, monetizing the impacts associated with the policy.
The amendments address a gap in compliance that will benefit regulated parties installing new storage tank equipment. By updating the technical standards referenced in the Regulations, regulated parties will be able to acquire the latest storage tank equipment that meets updated industry standards while remaining compliant with the Regulations.
No impacts on costs were identified for the amendments. The amendments on their own do not impose any regulatory requirements on businesses and, therefore, do not result in any incremental compliance costs for stakeholders or enforcement costs for the Government of Canada.
Small business lens
Analysis under the small business lens concluded that the amendments do not impact Canadian small businesses, as the 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 amendments neither introduce new administrative costs for businesses nor introduce or repeal existing regulatory titles.
Regulatory cooperation and alignment
The amendments are not expected to have any impact on regulatory cooperation, agreements nor obligations. Of the 48 technical standards being updated, 4 are 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.
Effects on the environment
The amendments do 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 amendments. The amendments are therefore exempt from the strategic environmental and economic assessment (SEEA) process as per the Department’s SEEA policy and in accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for the amendments.
Rationale
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 amendments address this compliance gap by updating the technical standards referenced in the Regulations to the latest industry technical standards. These amendments facilitate the acquisition and installation of compliant storage tank system equipment without imposing additional costs or administrative burden on regulated parties. There is no requirement for new or different specifications, so no additional costs will be incurred by regulated parties.
The amendments bring the Regulations in line with current technical standards recognized in the industry without adding new compliance or administrative burden.
Implementation, compliance and enforcement, and service standards
Implementation
The amendments come into force on the day on which they are registered. The amendments do not necessitate any implementation plan, nor do they impose new compliance and enforcement requirements. Similarly, no new service standards have been introduced as part of these amendments.
Compliance and enforcement
As the Regulations are made under the CEPA, enforcement officers will, when verifying compliance, apply the Compliance and Enforcement Policy (the Policy) for the CEPA. The Policy sets out the range of possible enforcement responses to alleged violations. If an enforcement officer discovers an alleged violation following an inspection or investigation, the officer will choose the appropriate enforcement action based on the Policy.
The Regulations also make related amendments to the EVAMPR. This will enable enforcement officers to issue an administrative monetary penalty for certain violations of existing provisions under the Regulations, in alignment with the Policy Framework to Implement the EVAMPR. Administrative monetary penalties are designed to create a financial disincentive to non-compliance with designated legislative requirements and to supplement existing enforcement measures. The EVAMPR also specifies the method used to calculate the amount of the administrative monetary penalty, including baseline penalty amounts for different types of violations and violators, and aggravating factors that, if applicable, may increase the amount of the penalty.
Contacts
Tracey Spack
Director
Waste Reduction and Management Division
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: registrereservoir-tankregistry@ec.gc.ca
Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: ravd-darv@ec.gc.ca