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Bill Summary · HB 1058

Summary — HB 1058 (North Dakota, 2025)

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; and to provide a penalty.

Main purpose and intent

HB 1058 establishes a comprehensive statutory program for the regulation of aboveground storage tanks (ASTs) in North Dakota. The bill (requested by the Department of Environmental Quality, DEQ) creates a new chapter in Title 23.1 that defines ASTs, sets DEQ powers and duties, directs DEQ rulemaking on technical and financial requirements, authorizes permit/registration fees, provides inspection and emergency authorities, and establishes civil penalties for violations.

Key provisions

  • Definitions and exclusions: defines “aboveground storage tank” (broadly, tanks holding refined petroleum products) and lists numerous exclusions (e.g., small farm/residential fuel tanks, heating‑oil used on site, septic tanks, federally regulated pipeline facilities, certain portable tanks, federal government tanks, some refinery/terminal tanks, propane tanks, and other specific items).
  • DEQ authority and duties: DEQ must administer and enforce the new chapter and related AST programs, adopt rules, and may enter agreements with other jurisdictions to avoid duplicative regulation.
  • Required rulemaking areas (examples):
    • Leak detection methods and recordkeeping;
    • Release reporting and corrective action procedures;
    • Closure requirements to prevent releases;
    • Standards for construction and performance of new ASTs;
    • Designation of tanks as ineligible for delivery;
    • Evidence of financial responsibility for corrective actions and third‑party bodily injury/property damage claims.
  • Notification and permitting: rules to require owners/operators to notify DEQ of operational/nonoperational ASTs. DEQ may establish a permit/registration/license fee system based on expected processing, monitoring, and inspection costs. Fees are deposited into the DEQ operating fund and are subject to appropriation.
  • Inspections and enforcement: DEQ representatives may enter facilities, inspect, sample, and copy records upon presentation of credentials. On information of imminent hazards, DEQ may take emergency actions.
  • Penalties: civil penalties up to $12,500 per day for violations; false statements in required documentation subject to civil penalties up to $12,500 per violation. Each day of noncompliance is a separate violation. Administrative procedures follow existing administrative law (chapter 28‑32).
  • Liability/financial responsibility: owners/operators must maintain evidence of financial responsibility for corrective actions and third‑party compensation. Certain tanks may be eligible for reimbursement under the petroleum release compensation fund if registered (per specified statutory cross‑references).

Who is affected

  • Primary: owners and operators of aboveground storage tanks that store refined petroleum products (including midstream/terminal facilities, fuel distributors and retail sites unless excluded).
  • Secondary: DEQ (rulemaking, permitting, inspections, enforcement), local agencies contracting with DEQ, emergency responders, and the regulated community (including state/local governments and small businesses) that may incur compliance, monitoring, remediation, and permitting costs.

Procedural/timeline notes and status

  • Introduced: March 26, 2025 (Energy & Natural Resources Committee; at DEQ request).
  • DEQ rulemaking required to implement many technical and programmatic details; timing of rules not specified in the statute and will determine much of the compliance timeline.
  • Legislative actions recorded in the file indicate the bill progressed through amendments and both houses; enrollment and actions show it was presented to and approved by the Governor and recorded as Act No. 37 of 2025 (approved July 21, 2025). Implementation details (effective date or phased compliance deadlines) are determined by the enacted text and forthcoming DEQ rules.

Expected impacts

  • Compliance costs for AST owners/operators (equipment upgrades, monitoring, reporting, testing, closure, financial assurance).
  • DEQ workload increase for program administration, inspections, enforcement, and rulemaking; offset in part by permit/registration fees deposited to the DEQ operating fund.
  • Potential public‑health and environmental benefit from improved leak detection, faster corrective action, and clearer financial responsibility for releases.

For operational questions or to track rulemaking and implementation schedules, contact the North Dakota Department of Environmental Quality.

Compiled from official sources — confirm details with the bill’s official record.

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