Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1058
(Energy and Natural Resources Committee)
(At the request of the Department of Environmental Quality)
AN ACT to create and enact a new chapter to title 23.1 of the North Dakota Century Code, relating to
the regulation of aboveground storage tanks; to amend and reenact section 23.1-12-02 and
subsection 7 of section 23.1-12-17 of the North Dakota Century Code, relating to the
department of environmental quality and tank registration fees; and to provide a penalty.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new chapter to title 23.1 of the North Dakota Century Code is created and enacted
as follows:
Definitions.
For purposes of this chapter:
1."Aboveground storage tank" means any one or a combination of aboveground containers,
vessels, or enclosures, including associated piping or appurtenances used to store an
accumulation of refined petroleum products that is not an underground storage tank as
defined in chapter 23.1 - 04. The term does not include a:
a.Farm or residential tank used for storing motor fuel for noncommercial purposes.
b.Tank used for storing heating oil for consumptive use on the premises where stored.
c.Septic tank.
d.Pipeline facility, including gathering lines and breakout tanks, regulated under:
(1)The Natural Gas Pipeline Safety Act of 1968 [Pub. L. 90-481].
(2)The Hazardous Liquid Pipeline Safety Act of 1979 [Pub. L. 96-129, 49 U.S.C. 60101
et seq.].
(3)An interstate pipeline facility regulated under state laws comparable to the
provisions of law in paragraph 1 or 2.
(4)Title 49, Code of Federal Regulations, part 195.
e.Surface impoundment, pit, pond, lagoon, storm water collection system, or wastewater
collection system.
f.Flow-through process tank or vapor recovery unit tank.
g.Liquid trap or associated gathering lines directly related to oil or gas production and
gathering operations.
h.Tank owned by the federal government.
i.Tank used for the transportation of petroleum.
j.Tank with a capacity under one thousand three hundred twenty gallons [4996.73 liters]
used to store lubricating oil. H. B. NO. 1058 - PAGE 2
k.Tank used to store ethanol or biodiesel for wholesale purposes with a capacity greater
than twenty thousand gallons [75708.24 liters].
l.Tank that is located at or is part of a terminal, midstream facility, petrochemical plant,
syngas plant, fertilizer plant, petroleum or renewable fuels refinery, electric energy
conversion facility, electric transmission related facility, and associated transloading
facility.
m.Tank, liquid trap, gathering line, or other facility associated with exploration, development,
or production of oil, gas, or geothermal resources controlled under title 38.
n.Asphalt tank.
o.Storage tank situated in an underground area, including a basement, cellar, mine, mine
drift, mine shaft, or mine tunnel, if the storage tank is situated upon or above the surface
of the floor.
p.Propane storage tank.
q.Tank used to fuel or service rail locomotives, rail equipment, or coal mining equipment.
r.Portable tank.
s.Tank under subdivision d or l of subsection 13 of section 23.1 - 12 - 02, unless the owner or
operator registers the tank and is eligible for reimbursement under the petroleum release
compensation fund.
2."Department" means the department of environmental quality.
3."Disposal" means the discharge, deposit, injection, dumping, spilling, leaking, or placing of any
solid waste or hazardous waste into or on any land or water so the solid waste or hazardous
waste or any hazardous constituent of the waste may enter the environment or be emitted into
the air or discharged into any waters, including ground water.
4."Electric energy conversion facility" means a plant, addition, or combination of a plant and
addition, designed for or capable of wind energy generation, or any means of energy
generation, and the plant associated facilities.
5."Electric transmission related facility" means an electric transmission line and associated
facilities designed for transmission of generated electricity, or a facility used for utility - scale
storage of electricity and connected or adjacent to an electric transmission facility or facility
controlled by or serving a utility with electric energy transmission, and distribution equipment
and materials.
6."Facility" means all contiguous land and structures, other appurtenances, and improvements
on the land used for storing a regulated substance. A facility may consist of several contiguous
storage or operational units.
7."Midstream facility" means a facility that receives petroleum products by pipeline or by truck.
The term does not include a retailer or end user.
8."Operator" means a person in control of, or having responsibility for, the daily operation of an
aboveground storage tank.
9."Owner" means a person who holds title to, controls, or possesses an interest in the
aboveground storage tank.
10."Petroleum" means: H. B. NO. 1058 - PAGE 3
a.Gasoline or petroleum products as defined in chapter 23.1 - 13;
b.Constituents of gasoline or fuel oil under subdivision a; and
c.Oil sludge and oil refuse.
11."Portable tank" means a storage tank and storage tank piping or wiring that is not stationary or
affixed, including a tank on skids.
12."Refined petroleum products" means gasoline, kerosene, heating oils, diesel fuels, and other
compounds as defined by the department.
13."Release" means any spilling, leaking, emitting, discharging, escaping, leaching, or disposing
from an aboveground storage tank into the environment, including ground water, surface
water, or subsurface soils.
14."Terminal" means a refined petroleum product storage and distribution facility that is supplied
directly by pipeline and from which the refined petroleum product may be removed from the
rack.
15."Utility" means a person engaged in and controlling electric generation, transmission of
electric energy, or the transmission of water from or to any electric energy conversion facility.
Powers and duties of the department.
The department shall:
1.Administer and enforce this chapter.
2.Administer aboveground storage tank programs under this chapter.
3.Adopt, modify, repeal, and enforce rules governing the aboveground storage tanks.
4.Enter agreements with other local, state, or federal agencies regarding responsibilities for
regulating aboveground storage tanks to promote consistency in enforcement and avoid
duplication in regulation.
Aboveground storage tank regulations.
The department shall adopt rules:
1.For maintaining a leak detection method or combination of methods designed to identify
releases in a manner consistent with the protection of human health and the environment.
2.For maintaining records of any monitoring of a leak detection system, inventory control
system, or tank testing system.
3.For reporting of any releases and corrective action taken in response to a release from an
aboveground storage tank.
4.For taking corrective action in response to a release from an aboveground storage tank.
5.For the closure of an aboveground storage tank to prevent a release of regulated substances
into the environment.
6.For designation of an aboveground tank as ineligible for delivery.
7.For maintaining evidence of financial responsibility for taking corrective action and
compensating third parties for bodily injury and property damage caused by sudden and
nonsudden accidental releases arising from operating an aboveground storage tank. H. B. NO. 1058 - PAGE 4
8.Establishing standards for construction and performance of new aboveground storage tanks.
9.For notifying the department or designated local agency of the existence of any operational or
nonoperational aboveground storage tank.
10.For a permit fee system to own, install, or operate an aboveground storage tank.
Fees - Deposit in operating fund.
The department by rule may provide for the payment and collection of reasonable fees for the
issuance of permits for registering, licensing, or permitting aboveground storage tanks. The permit fees
must be based on the anticipated cost of filing and processing the application, taking action on the
requested permit, and conducting a monitoring and inspection program to determine compliance or
noncompliance with the permit. Any moneys collected for permit licensing fees must be deposited in the
department operating fund in the state treasury and any expenditure from the fund is subject to
appropriation by the legislative assembly.
Inspections - Right of entry.
To develop or enforce any rule authorized by this chapter or enforce a requirement of this chapter,
any duly authorized representative or employee of the department may, upon presentation of
appropriate credentials, at any reasonable time:
1.Enter any place, facility, or site at which an aboveground storage tank is located.
2.Inspect and obtain samples of any substance the department has reason to believe may be
regulated by this chapter.
3.Inspect and copy any records, reports, information, or test results relating to the purposes of
this chapter.
Imminent hazard.
Upon receipt of information that a release from an aboveground storage tank may present an
imminent and substantial endangerment to health or the environment, the department may take
emergency action as necessary to protect health or the environment.
Enforcement penalties.
1.If the department finds a person is in violation of a permit, rule, standard, or requirement of
this chapter, the department may issue an order requiring the person to comply with the
permit, rule, standard, or requirement, and the department may bring an action for a civil
penalty, including an action for injunctive relief. An action under this chapter must be brought
in the district court for the county in which the violation occurred or in which the party in
violation has the party's residence or principal office.
2.A person that violates a provision of this chapter or any rule, standard, or permit condition
adopted under this chapter is subject to a civil penalty not to exceed twelve thousand five
hundred dollars per day of violation. Each day of noncompliance constitutes a separate
violation for purposes of penalty assessments.
3.A person that knowingly makes a false statement or representation in documentation required
by this chapter is subject to a civil penalty not to exceed twelve thousand five hundred dollars
per violation.
4.An administrative action brought under this chapter must be conducted in accordance with
chapter 28 - 32. H. B. NO. 1058 - PAGE 5
SECTION 2. AMENDMENT. Section 23.1-12-02 of the North Dakota Century Code is amended and
reenacted as follows:
23.1-12-02. Definitions.
As used in this chapter, unless the context otherwise requires:
1."Actually incurred" means, in the case of corrective action expenditures, the owner, operator,
landowner, an insurer, or a contractor hired by the owner, operator, or the landlord has
expended time and materials, and only that person is receiving reimbursement from the fund.
2."Board" means the petroleum release compensation board.
3."Corrective action" means an action required by the department to minimize, contain,
eliminate, remediate, mitigate, or clean up a release, including any remedial emergency
measures. The term does not include the repair or replacement of equipment or
preconstructed property.
4."Dealer" means a person licensed by the tax commissioner to sell motor vehicle fuel or special
fuels within the state.
5."Department" means the department of environmental quality.
6."Electric energy conversion facility" means a plant, addition, or combination of a plant and
addition, designed for or capable of wind energy generation, or any means of energy
generation, and the plant associated facilities.
7."Electric transmission related facility" means an electric transmission line and associated
facilities designed for transmission of generated electricity, or a facility used for utility - scale
storage of electricity and connected or adjacent to an electric transmission facility or facility
controlled by or serving a utility with electric energy transmission, and distribution equipment
and materials.
8."Fund" means the petroleum release compensation fund.
7.9."Location" means a physical address or site that has contiguous properties. Noncontiguous
properties within a municipality or other governmental jurisdiction are considered separate
locations.
10."Midstream facility" means a facility that receives petroleum products by pipeline or by truck.
The term does not include a retailer or end user.
8.11."Operator" means a person in control of, or having responsibility for, the daily operation of a
tank under this chapter.
9.12."Owner" means a person who holds title to, controls, or possesses an interest in the tank
before the discontinuation of its use.
10.13."Petroleum" means any of the following:
a.Gasoline and petroleum products as defined in chapter 23.1-13.
b.Constituents of gasoline and fuel oil under subdivision a.
c.Oil sludge and oil refuse.
11.14."Portable tank" means a storage tank along with its piping and wiring that is not stationary or
affixed, including a tank that is on skids. H. B. NO. 1058 - PAGE 6
12.15."Release" means any unintentional spilling, leaking, emitting, discharging, escaping, leaching,
or disposing of petroleum from a tank into the environment whether occurring before or after
the effective date of this chapter, but does not include discharges or designed venting allowed
under federal or state law or under adopted rules.
13.16."Tank" means any one or a combination of containers, vessels, and enclosures, whether
aboveground or underground, including associated piping or appurtenances used to contain
an accumulation of petroleum, ethanol, or biodiesel. The term does not include:
a.Tanks owned by the federal government.
b.Tanks used for the transportation of petroleum.
c.A pipeline facility, including gathering lines and breakout tanks:
(1)Regulated under the Natural Gas Pipeline Safety Act of 1968.
(2)Regulated under the Hazardous Liquid Pipeline Safety Act of 1979.
(3)Regulated under state laws comparable to the provisions of law in paragraph 1 or 2,
if the facility is an interstate pipeline facility.
(4)Regulated under title 49, Code of Federal Regulations, part 195.
d.An underground farm or residential tank with a capacity of one thousand one hundred
gallons [4163.94 liters] or less or an aboveground farm or residential tank of any capacity
used for storing motor fuel for noncommercial purposes. However, the owner of an
aboveground farm or residential tank may, upon application, register the tank and be
eligible for reimbursement under this chapter.
e.A tank used for storing heating oil for consumptive use on the premises where stored.
f.A surface impoundment, pit, pond, or lagoon, storm water collection system, or
wastewater collection system.
g.A flowthrough process tank or vapor recovery unit tank.
h.A tank, liquid trap, or associated gathering lines directly related to oil or gas, or other
facility associated with the exploration, development, or production or gathering
operationsof oil, gas, or geothermal resources under title 38.
i.A storage tank situated in an underground area such as a basement, cellar, mine
working, drift, shaft, or tunnel, if the storage tank is situated upon or above the surface of
the floor.
j.A tank used for the storage of propane.
k.A tank used to fuel or service rail locomotives, rail equipment, or surface coal mining
equipment.
l.An aboveground tank used to feed diesel fuel generators. Upon application, the owner or
operator of an aboveground tank used to feed diesel fuel generators may register the
tank and is eligible for reimbursement under this chapter.
m.A portable tank.
n.A tank with a capacity under one thousand three hundred twenty gallons [4996.728 liters]
used to store lubricating oil. H. B. NO. 1058 - PAGE 7
o.A tank used to store ethanol or biodiesel for wholesale purposes with a capacity of
greater than twenty thousand gallons [75708.24 liters].
p.A tank that is located at or is part of a terminal, midstream facility, petrochemical plant,
syngas plant, fertilizer plant, petroleum or renewable fuels refinery, electric energy
conversion facility, or electric transmission related facility, including associated
transloading facility.
q.An asphalt tank.
r.A septic tank.
14.17."Tank integrity test" means a test to determine that a tank is sound and not leaking. For an
underground tank, the term means a certified third-party test that meets environmental
protection agency leak detection requirements. For an aboveground tank, the term means a
test conducted according to steel tank institute SP 001 or American petroleum institute 653.
18."Terminal" means a refined petroleum product storage and distribution facility that is supplied
directly by pipeline and from which the refined petroleum product may be removed from the
rack.
15.19."Third party" means a person who is damaged by the act of a registered owner, operator, or
dealer requiring corrective action, or a person who suffers bodily injury or property damage
caused by a petroleum release.
20."Utility" means a person engaged in and controlling electric generation, the transmission of
electric energy, or the transmission of water from or to any electric energy conversion facility.
SECTION 3. AMENDMENT. Subsection 7 of section 23.1-12-17 of the North Dakota Century Code
is amended and reenacted as follows:
7.If a registration payment is not received within sixty days of July firstthe date required under
rules adopted by the department, a late fee of twenty-five dollars per tank per month must be
imposed on the tank owner or operator. H. B. NO. 1058 - PAGE 8
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1058.
House Vote: Yeas 66 Nays 24 Absent 4
Senate Vote:Yeas 45 Nays 1 Absent 1
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State