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.
HB 1058 creates a new regulatory chapter for aboveground storage tanks in North Dakota and places the Department of Environmental Quality in charge of administering and enforcing the program. The bill defines which tanks are covered and, just as importantly, which are excluded, carving out many categories such as farm and residential tanks used for noncommercial motor fuel, heating oil tanks, septic tanks, pipelines, propane tanks, portable tanks, and tanks associated with certain industrial facilities, refineries, utilities, and oil and gas operations. It also authorizes the department to adopt rules on leak detection, recordkeeping, release reporting, corrective action, closure, construction standards, financial responsibility, and permit fees.
The bill also amends existing petroleum release compensation law to align definitions and registration provisions with the new aboveground tank program. It revises the definition of "tank" and related terms in section 23.1-12-02, adds or clarifies exclusions and optional registration eligibility for certain aboveground farm/residential tanks and diesel generator tanks, and updates the late-fee provision in section 23.1-12-17 so that a $25 per tank per month fee applies when registration payment is not received within 60 days of the date required by department rule. The bill further authorizes inspections, emergency action for imminent hazards, and civil penalties of up to $12,500 per day for violations or false statements.
The bill’s practical impact is to expand state oversight of aboveground petroleum storage while preserving broad exemptions for many agricultural, residential, utility, and industrial tanks. It gives the department new authority to require permits, collect fees into the operating fund, inspect facilities, and enforce compliance through orders, injunctions, and penalties. It also ties some tanks into the petroleum release compensation framework, allowing certain owners to register and potentially seek reimbursement for corrective action if they meet eligibility requirements.
The general sentiment reflected in the bill’s movement is strongly supportive, with the measure passing both chambers by wide margins. The bill originated from the Department of Environmental Quality, suggesting it was agency-driven and intended to fill a regulatory gap or modernize oversight. The lack of recorded committee transcript material limits insight into debate, but the lopsided votes indicate broad agreement on the need for a formal aboveground storage tank program.
Any likely contention centers on the scope of regulation and the many exemptions. Owners and operators of tanks near the coverage line may be concerned about registration, fees, inspection authority, and potential liability, while agricultural, energy, and industrial stakeholders likely sought the exclusions for their sectors. The late-fee and civil-penalty provisions, along with the department’s emergency powers, may also have been points of concern for regulated entities even though the final votes show little organized opposition.
HB 1058 adds a new chapter to Title 23.1 governing aboveground storage tanks and amends existing petroleum release compensation provisions to coordinate definitions, registration, and reimbursement eligibility. It expands the Department of Environmental Quality’s authority to regulate, inspect, permit, and penalize certain aboveground tank owners and operators, while excluding numerous categories of tanks from coverage. It also changes the late-registration fee rule in section 23.1-12-17 and directs permit fees into the department operating fund.
The overall sentiment appears favorable and pragmatic, with the bill passing the House 66-24 and the Senate 45-1. Because the bill was requested by the Department of Environmental Quality and there are no committee transcripts provided, the record suggests an agency-supported regulatory measure that drew broad legislative acceptance. The strong vote margins indicate that most legislators viewed the bill as a reasonable environmental and safety framework rather than a controversial expansion of regulation.
The main points of contention likely involved how broadly the new aboveground storage tank rules should apply and which tanks should be exempt. Exclusions for farm and residential tanks, heating oil tanks, propane tanks, pipeline-related facilities, oil and gas production equipment, refineries, utilities, and other industrial sites suggest negotiated carve-outs that would matter to agricultural, energy, and industrial stakeholders. Regulated owners and operators may also have been concerned about permit fees, inspection access, financial responsibility requirements, and civil penalties of up to $12,500 per day.