DEQ seeks rulemaking authority for above-ground fuel tanks to protect state tank fund

The North Dakota Department of Environmental Quality told the Senate Energy and Natural Resources Committee that House Bill 1058 would authorize administrative rules for above-ground storage tanks holding refined petroleum fuels that are already registered with the Petroleum Tank Release Compensation Fund. Carl Rockman, deputy director of the DEQ, said the bill does not expand the universe of tanks required to register with the fund but would allow the department to apply monitoring, record keeping and leak-detection standards similar to those used for underground tanks.

"This bill redirects responsibility for ensuring good operating practices to the individual owners and operators of the tanks rather than relying on the fees paid into the fund," Carl Rockman said, describing the purpose as reducing risk to the fund and identifying leaks earlier to avoid large remediation costs that can reach up to a million dollars at some sites. Rockman told the committee the DEQ assumed responsibility for the fund in 2019 and that the agency has staff to implement inspections without adding new full-time positions, though limited travel and operating costs were identified for the next biennium.

Industry groups that represent retail fuel marketers supported the bill while urging careful rule development. Mike Rood, president of the North Dakota Petroleum Marketers Association, said his membership helped drive the registration and wants the fund to remain solvent. NDPMA supports leak detection on lines running from above-ground tanks to retail dispensers and emphasized working with DEQ to design practical, affordable standards for both small and large operators. "One way or another, the industry will eventually need leak detection on fuel lines from ASTs feeding a retail gas outlet," Rood said.

Committee members pressed the DEQ on exemptions and implementation details. Rockman explained the draft language mirrors the existing fund statute and its exemptions, for example excluding smaller tanks and specific facility types, because the goal is to regulate only tanks already in the fund. Senators asked about monitoring costs and whether DEQ would approve acceptable monitoring systems before operators invest; Rockman said the administrative rules process will specify what is acceptable so operators will not be guessing. The committee also discussed maximum civil penalty language in the bill; Rockman said the recorded dollar figures are maximums consistent with other state environmental statutes and that typical penalties for minor violations would be much lower.

The hearing record shows technical questions about the interplay between federal SPCC rules and state regulation, the scale of likely monitoring-system costs, and which facility types are targeted. Organized marketers and the DEQ said they expect to work through those details in the rulemaking process and the bill is intended as a "focus" bill to authorize development of administrative rules rather than impose immediate new equipment mandates.

The hearing closed with no committee action recorded immediately.