Update on Path Forward for Addressing Emissions of Benzene and Other Volatile Organic Compounds from Petroleum Liquid Storage and Loading Operations

May 28, 2024

The Government of Canada is working to further address emissions of benzene and other volatile organic compounds (VOCs) from petroleum storage and loading operations across Canada.

On February 24, 2024, the Government of Canada published, for public consultation, draft regulations that expand upon existing regulations to reduce VOC emissions from a variety of petroleum and petrochemical facilities across Canada. Following a 60-day public comment period that closed on April 24, 2024, the Government of Canada is now working to finalize the regulations by winter 2024-25. It is closely considering the comments received from provinces and territories, Indigenous communities, industry, non-governmental organizations, and other interested parties.

On May 16, 2024, Canada’s Minister of Environment and Climate Change issued an Interim Order to petrochemical facilities located in Sarnia, Ontario, that meet certain criteria. This was in response to the significant danger to human health from volatile organic compounds (VOCs), including carcinogenic benzene, originating from these facilities. The Interim Order is expected to lower ambient levels of benzene in and around the Aamjiwnaang First Nation. This supports meaningful action to address the environmental concerns raised by the Aamjiwnaang First Nation. 

On May 24, 2024, the Interim Order was approved by the Government of Canada, formally extending the Order for up to two years. The extension of the order ensures petrochemical facilities in the Sarnia area continue to limit releases of cancer-causing benzene emissions.

Finalizing VOC Regulations for Petroleum Liquid Storage and Loading Operations

The draft Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations would put in place requirements to control emissions of VOCs from petroleum liquid storage tanks and loading racks at petroleum refineries; upgraders; petrochemical facilities; truck, rail, marine and pipeline terminals; and large bulk plants. They represent a second phase of VOC regulations for the “downstream” petroleum and petrochemical sectors.

The draft regulations build on VOC regulations to address emissions from process equipment at petroleum refineries, upgraders and petrochemical facilities integrated with a refinery or upgrader, which were finalized in 2020.

As detailed in the Backgrounder published with the draft regulations, VOCs contribute to airborne pollution that increases the risks for a wide range of health problems, including cardiovascular and respiratory illnesses like asthma attacks, lung cancer, and heart and lung disease, as well as heart failure. Benzene is a recognized carcinogen, and inhalation exposure to benzene is of particular concern for populations located in areas where emissions from storage and loading operations are causing increased concentrations of benzene in the air. Both total VOCs and benzene are included in the List of Toxic Substances under the Canadian Environmental Protection Act. The oil and gas sector is Canada’s largest source of VOC emissions, and a significant source of benzene emissions.

The draft regulations were informed by extensive consultation and engagement. In May 2021, Environment and Climate Change Canada (ECCC) launched public consultations through a discussion paper on a proposed approach to control VOC emissions from the storage and loading of petroleum liquids. Following publication of the discussion document, ECCC hosted technical webinars that were attended by more than 250 participants, held more than 80 bilateral meetings with a wide variety of interested parties, and participated in community and facility visits. The input and technical information received was considered in writing the draft regulations that were published on February 24, 2024.

During the formal comment period for the draft regulations (February 24, 2024, to April 24, 2024), ECCC received 49 written submissions from a wide variety of industry associations and companies, non-governmental organizations, provincial, territorial and municipal governments, an Indigenous community and members of the general public. Since the publication of the draft regulations, ECCC has also hosted technical webinars and has held more than 30 bilateral meetings.

What we heard

Some of the key comments received during consultations on the draft regulations relate to: 

• The importance of the federal government taking accelerated and strong action to protect vulnerable communities and neighbourhoods located near facilities emitting harmful VOCs including carcinogenic benzene. The federal government has a particular fiduciary responsibility to protect Indigenous peoples from these harmful emissions as per the United Nations Declaration on the Rights of Indigenous Peoples Act. This is of notable importance where provincial and municipal regimes do not provide adequate protections
• Competitiveness considerations, which are non-existent to minimal given the U.S. has had equivalent federal regulations for over a decade
• Opportunities to clarify and refine vapour pressure criteria and test methods related to crude oil storage tanks
• Implementation timelines for benzene storage tanks and other sources of VOCs emissions
• Technical considerations related to large and complex facilities with many storage tanks
• Considerations regarding bulk fuel facilities that receive products
• Technical criteria for vapour destruction equipment
• Supply chain considerations; and 
• Requirements for diluent and condensate tanks at upstream oil and gas facilities covered by federal or provincial methane regulations

Over the coming months, finalization of the regulations will take into account the feedback received during formal consultations as well as information from continued engagement on technical aspects of the draft regulations.

These regulations are a high priority for the Government of Canada and are expected to be published in the Canada Gazette, Part II, by winter 2024-2025.

Interim Order to Address Harmful Levels of Carcinogenic Benzene Affecting the Aamjiwnaang First Nation

On May 16, 2024, the Government of Canada issued an Interim Order that immediately applies certain requirements from the draft Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations to cut benzene emissions from Sarnia’s petrochemical facilities that meet certain criteria. The Order was made under subsection 94(1) of the Canadian Environmental Protection Act, 1999 (CEPA).

The Interim Order was approved by the Government of Canada on May 24, 2024, formally extending the Order for up to two years.

The Order requires that petrochemical production facilities in Sarnia with fenceline concentrations of benzene above 29 micrograms per cubic metre (μg/m3) measured in any of the two-week sampling periods beginning on March 1, 2023, and ending on February 29, 2024, at any sampling location established in accordance with Ontario regulations implement vapour-control measures, including fully closed vent systems with vapour control on certain storage tanks that store benzene. 

The Aamjiwnaang First Nation community, which is bordered by Sarnia’s refinery and petrochemical district, will directly benefit from this Order as benzene concentrations exceeded this threshold regularly in recent months.

The Aamjiwnaang First Nation and Sarnia have been subjected to poor air quality conditions which have worsened in recent months, according to monitoring done by Environment and Climate Change Canada, the Province of Ontario, and Aamjiwnaang First Nation. This has resulted in significant danger and variety of health issues have been reported by community members. The seriousness of this situation merits an immediate response to protect the community. The Interim Order accelerates certain requirements of the Reduction in the Release of Volatile Organic Compounds (Storage and Loading of Volatile Petroleum Liquids) Regulations for facilities that meet certain criteria.

Reducing benzene emissions from gasoline stations

As indicated in a Notice of Intent published on February 24, 2024, the Government of Canada will take further steps to limit harmful benzene emissions from additional sources that affect Canadians. Similar to health concerns related to emissions from the storage and loading of volatile petroleum liquids at terminals and other large facilities (to be addressed by the proposed VOC Phase 2 regulations), a 2023 report by Health Canada concluded that Canadians living near gasoline stations may be exposed to elevated health risks due to benzene emissions from underground gasoline storage tanks and other sources at gas stations. Consultations on potential risk management options to address benzene emissions from gasoline stations are being conducted in 2024.

Next steps

In the coming weeks and months, the Government of Canada will:

• Apply the Interim Order Respecting Releases of Benzene from Petrochemical Facilities in Sarnia, Ontario, and continue to track the situation in the Aamjiwnaang First Nation and the Sarnia area to determine if additional federal actions may be required
• Continue to consult with provincial, territorial and municipal governments, Indigenous partners, industry, and other stakeholders on the draft VOC regulations 
• Work towards publication of final VOC regulations for petroleum storage and loading operations across Canada by winter 2024-2025
• Consult on risk management approaches to reduce benzene emissions from gas stations