This bill proposes the creation of Chapter 57-66 of the North Dakota Century Code, which establishes a pore space utilization tax and a North Dakota disaster fund. The tax will be imposed on individuals or entities that transport substances for injection and permanent underground storage in pore space within the state, set at five dollars per ton for substances transported via pipelines that are over twenty-five miles long and in service after July 31, 2025. Taxpayers will be required to remit the tax and file monthly reports detailing the amount of substances transported and taxes owed. The tax commissioner will have the authority to enforce compliance, including conducting investigations and hearings.

The revenue generated from this tax will be allocated primarily to the North Dakota disaster fund, which will receive the first five hundred million dollars collected. This fund is designated for expenses related to mitigating damages from pipeline transportation, purchasing specialized equipment for hazard response, and training related to pipeline hazards. The bill specifies that the fund cannot be used for expenses covered by insurance or other sources. The effective date for this legislation is set for taxable events occurring after June 30, 2025.