Fuel Storage Tank System Priority Ranking Framework (For Proposals Ranked as D1 Under the National Priority Ranking Framework)

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Published by:
Indian and Northern Affairs Canada
10 Wellington Street
Gatineau, Quebec, K1A 0H4

This document was last updated: April 20, 2010

This document will evolve based on feedback from users and other stakeholders.

Table of contents

1.0  Purpose of this Framework

Pursuant to the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, all aboveground fuel storage tanks of 2,500 litres or greater capacity operated on federal or Aboriginal lands are required to be registered with Environment Canada and must display an Environment Canada identification number. As of June 13, 2010, suppliers will not be permitted to fill tanks not displaying an Environment Canada identification number.

This framework provides a procedure for prioritizing funding allocation decisions related to capital project submissions under the Capital Facilities and Maintenance Program (CFMP) to upgrade or replace non-compliant fuel tank systems. According to the CFMP's National Priority Ranking Framework, proposals to address storage tank systems that are non-compliant are ranked as D1 (Fuel Tank Systems - improvements to existing systems to meet legislative/regulatory compliance).

The purpose of the Fuel Tank Priority Ranking Framework is to further rank proposals once they have been classed as D1 under the National Priority Ranking Framework so as to allocate resources in a manner that ensures that those communities that are most reliant on fuel to heat or operate community infrastructure have a safe and reliable supply.

This framework aligns with the National Priority Ranking Framework in that the protection of human health and safety, as well as the support of the operation, maintenance, and preservation of assets, are the primary principles of the ranking process. This framework provides a means to quantify these priorities in a manner that is clear, transparent, and consistent. Fuel tank project proposals that obtain the highest score according to this framework represent the most urgent priorities.

2.0  Application

This framework is to be applied to applications for funding related to on-reserve fuel storage tank systems that:

All such storage tank systems must be in compliance with INAC's Fuel Storage Tank Protocol (which includes requirements such as registering, monitoring, and maintaining storage tank systems). The protocol requires that all fuel storage tank systems come into compliance with Environment Canada's Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations.

2.1  Priority Elementsvs. Eligibility

It is important to note that just because a given service provided by a tank may be listed as an element for priority ranking for funding in this framework, it does not necessarily mean that the tank in question is actually eligible for funding. All of the normal CFMP eligibility criteria still apply.

For example, as per section 3.4, a fuel storage tank system that provides fuel for electricity for a hospital receives a +6 to its score as this is considered a priority.

Another example would be residential homes. As First Nations receive minor capital funding to address their housing issues, INAC does not provide additional funding to repair or upgrade a fuel tank of an individual home.

3.0  Calculating Priority Ranking Score

To calculate a score for a storage tank system proposal, determine the base score according to the issue of non-compliance (as per Section 3.1), then adjust the score according to all applicable uses of the system (Sections 3.2). An individual score should be calculated for each storage tank system being ranked using the descriptions and scoring criteria provided.

Priority Ranking Score = Base Score + All Applicable Uses of System Score(s)

3.1  Base Score

As stated in the purpose of this framework, the priority ranking score is intended to prioritize projects that are meant to address non-compliance with existing legislation and regulations. The base score is therefore determined according to the significance of the non-compliance issue with the existing tank.

3.1.1  Issue of Non-Compliance

Based on the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, there are two groups of fuel storage tank systems that must be given special attention: leaking tanks which cannot be in use while they are leaking and must be addressed immediately, and "high-risk" (see regulations for definition) storage tank systems which must be addressed by June 2012.

  • A storage tank system that is leaking. Score = 10.
  • A storage tank system that is considered "high risk" as defined in the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations. Score = 8.
  • Other issues of non-compliance with the regulations. Score = 6.
  • Issues that currently are not resulting in non-compliance but may result in future non-compliance with the regulations if not addressed. Score = 0.
  • Issues that are not related to compliance with regulations and that will not result in non-compliance if not addressed (i.e., expansion of systems) are not considered a D1 priority and should not be evaluated under this framework.

3.2.  Applicable Uses of the System

This section provides factors that determine the importance of that particular fuel tank, and provides a score for various possible uses - or use-influencing factors - of that fuel tank that is being upgraded or repaired to meet regulation. A fuel tank that serves a more critical function will receive a higher score. Note that you should add the score of each of the sections below (3.2.1 to 3.2.5) that apply to a given tank.

3.2.1  Remoteness of System

Remote communities have a limited ability to resupply their fuel tanks. Failure to have fuel storage tanks operational during a window of opportunity for delivering fuel can leave a tank without fuel for a significant period of time (or otherwise require an expensive refuelling at a later date). Remoteness is measured in zones as per the definitions in INAC's Band Classification Manual.

  • Zone 4: Isolated - No year-round road access to a service centre: Add 10 to score.
  • Zone 3: Remote - With year-round road access and located more than 350 km of the nearest service centre: Add 7 to score.
  • Zone 2: Rural - With year-round road access and located within 50 km to 350 km of the nearest service centre: Add 4 to score.
  • Zone 1: Urban - With year-round road access and located within 50 km of the nearest service centre: Add 0 to score.

3.2.2  Essential Fuel Delivery System Tanks

The sole purpose of an essential fuel delivery system tank is the temporary storage of fuel that is in transit. If this essential fuel delivery system storage tank is non-compliant, the fuel will not reach the other tanks in the community, and therefore, even if the other tanks are themselves in compliance, they will not be able to receive fuel. A typical example is a bulk fuel seasonal storage tank farm in which fuel delivered by plane or barge is stored before being transferred to the rest of the community. However, if fuel can be delivered directly to other facility fuel tanks on a relatively regular basis, then such a tank farm is not deemed to be an essential fuel delivery system tank. Priority is based on remoteness zones as a rough means of determining how difficult and expensive it is to bypass the tank to provide fuel directly to other systems as an emergency measure.

  • Essential fuel delivery system tank in Zone 4: Add 8 to score.
  • Essential fuel delivery system tank in Zone 3: Add 6 to score.
  • Essential fuel delivery system tank in Zones 2 and 1: Add 4 to score.
  • Non-essential fuel delivery system tank (i.e., a temporary storage tank system that can be easily bypassed) in all Zones: Subtract -10 from score.
  • Not a fuel delivery system temporary storage tank (i.e., the tank provides a direct service such as heating or power to a facility, and is not used to store fuel that is in transit). Add 0 to score.

Note: An essential fuel delivery system tank is as vital as the individual tanks that it provides fuel to. Therefore, continue to also add the applicable scores of sections 3.2.3 to 3.2.5 based on the individual tank systems that rely upon the essential fuel delivery system tank. For any given section, use only the highest score if multiple values are possible due to multiple clients using the temporary storage tank.

3.2.3  Tanks Storing Fuel for Power Generation

A fuel tank or tank system that is the sole source of fuel for a power generator that is itself the sole source of sufficient power for vital community infrastructure, must be considered as vital, as the infrastructure to which it provides power, otherwise the infrastructure would become non-operational. Use only the highest score if multiple values are possible.

  • Sole source of fuel for a power generator that is the sole source of electricity for most of - or the entire - community: Add 8 to score.
  • Sole source of fuel for a power generator that is the sole source of electricity for one or more essential community infrastructure (i.e. facilities that cannot be shut down, due to health and safety, such as an emergency medical clinic, a hospital, a drinking water treatment plant, or a wastewater treatment plant): Add 6 to score.
  • Sole source of fuel for a power generator that is the sole source of electricity for a school: Add 5 to score.
  • Sole source of fuel for a power generator that is the sole source of electricity for one or more institutional community facilities (such as a community center, community day care, band office, public works building): Add 4 to score.
  • Source of fuel for a power generator that is not the sole source of sufficient electricity for a facility: Add 0 to score.

3.2.4  Tanks Storing Fuel for Facility Heating

A fuel tank or tank system that is the sole method of heating vital community infrastructure i.e.: no alternative means of heating) is considered as vital as the infrastructure that it supplies. Otherwise, it would be impossible to maintain a safe facility during winter months. Such a facility cannot have any alternative means of heating, notably electrical power, for the fuel tank to be considered a priority. Use only the highest score if multiple values are possible.

  • Sole source of fuel for heating one or more essential community infrastructure (i.e. facilities that cannot be shut down, due to health and safety, such as an emergency medical clinic, a hospital, a drinking water treatment plant, or a wastewater treatment plant): Add 6 to score.
  • Sole source of fuel for heating a community-owned subdivision of residential homes: Add 4 to score.
  • Sole source of fuel for heating a school: Add 3 to score.
  • Sole source of fuel for heating one or more institutional community facilities (such as a community center, community day care, band office, public works building): Add 2 to score.
  • A fuel tank for heating a facility in which there is an alternative means to heat the facility: Add 0 to score.

3.2.5  Tanks Storing Motive Fuel for Essential Vehicles

Key emergency vehicles are essential for the health and safety of the residents of the community. These include fire trucks, ambulances, drinking water delivery trucks, wastewater collection trucks, and fuel delivery trucks that deliver fuel from tank farms to buildings that rely on fuel for heating or power. Community-owned (i.e., non-commercial) tanks that are the sole source of motive fuel for essential vehicles should receive priority. Consideration should also be given to tanks supplying vehicles that are critical for maintaining access to the community, such as snow ploughs.

  • A fuel tank that is the sole source of motive fuel for essential vehicles: Add 6 to score.
  • A fuel tank that stores motive fuel for essential vehicles, but for which there is an alternative source of motive fuel available: Add 0 to score.

4.0  Interpreting a Score

This scoring system is intended to identify urgent cases to aid decisions in allocating available funding; fuel storage tank systems with the highest scores will receive the highest priority for funding allocations.

For ease of reference, a one page table is provided in Annex A to make calculations and obtain the final score of the proposal to upgrade a fuel storage tank system to meet current regulations.

Annex A:  Fuel Tank Priority Ranking Table

This table may be used to evaluate a given proposal to upgrade an existing fuel storage tank system to meet current legislation or regulations.

Proponent:

Project Description:

File Number:

Criteria Possible Values* Score
3.1  Base Score    
3.1.1  Issue of Non-Compliance
  • Leaking = 10
  • "High Risk" = 8
  • Other non-compliance = 6
  • Prevention of non-compliance = 0
 
3.2  Use of Tank Scores    
3.2.1  Remoteness
  • Zone 4 = +10
  • Zone 3 = +7
  • Zone 2 = +4
  • Zone 1 = +0
 
3.2.2  Essential Fuel Delivery System Tank
  • Essential tank in Zone 4 = +8
  • Essential tank in Zone 3 = +6
  • Essential tank in Zone 2 &1 = +4
  • Non-Essential tank, all zones = -10
  • Not a fuel delivery system tank = +0
 
3.2.3  Power Generation
  • Power for entire community = +8
  • Power for essential facility = +6
  • Power for school = +5
  • Power for other institution = +4
  • Not sole source of power = +0
 
3.2.4  Heating
  • Heating for essential facility = +6
  • Heating for entire sub-division = +4
  • Heating for school = +3
  • Heating for other institution = +2
  • Not sole source of heating = +0
 
3.2.5  Motive Fuel
  • Fuel for essential vehicles =+6
  • Alternative fuel source available = +0
 
Total Score - Final Priority Ranking Score Total scores of sections 3.1.1 + 3.2.1 + 3.2.2 + 3.2.3 + 3.2.4 + 3.2.5  
* Only use a single, most appropriate value to determine the score for each section. See the Fuel Tank Priority Ranking Framework document for details.
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