Natural Gas Laws and Incentives in North Dakota
The list below contains summaries of all North Dakota laws and incentives related to natural gas.
Laws and Regulations
Alternative Fuel Tax Rates
An excise tax of $0.23 per gallon is imposed on alternative fuel sales and deliveries, including propane, compressed natural gas (CNG), and liquefied natural gas (LNG). One gallon of special fuel is equal to 120 cubic feet of CNG or 1.7 gallons of LNG. Retailers must obtain a license from the Office of the State Tax Commissioner to sell special fuels. Exceptions may apply.
(Reference North Dakota Century Code 57-43.2-02 through 57-43.2-05)
Biofuel Labeling Requirements
Ethanol and biodiesel fuel retailers must label retail dispensing units with the price, name, and main components of the fuel or fuel blend being sold. The labeling must follow established labeling specifications for petroleum-based fuels. Suppliers of ethanol and biodiesel must provide fuel retailers with an invoice stating the fuel blend. Alcohol fuel blends containing at least 1% of alcohol by volume must also be clearly labeled at the dispenser and on any price advertisements. Biodiesel and biodiesel blends must be identified by the capital letter “B” followed by the numerical value representing the percentage of biodiesel fuel. Additional specifications may apply.
(Reference North Dakota Century Code 23.1-13 and North Dakota Administrative Code 33.1-34-01)
State Incentives
Low-Emission Technology Grants
The North Dakota Industrial Commission (NDIC) administers the Clean Sustainable Energy Authority (CSEA) which provides grants to enhance the production of low-emission technology projects that increase economic benefits, create jobs, minimize waste, increase efficiency or reliability, or maximize the market potential for sustainable energy technology in North Dakota. Eligible applicants include corporations, cooperatives, associations, and others. For more information, including application materials and additional eligibility requirements, see the NDIC CSEA website and the CSEA Program Guidelines.
(Reference North Dakota Century Code 54-63.1, 17-01, and 17-07)
Medium- and Heavy-Duty Diesel Vehicle Repower and Replacement Grants
The North Dakota Department of Environmental Quality (NDDEQ) offers grants for the replacement or repower of non-road and on-road medium- and heavy-duty vehicles with new diesel or alternative fuel vehicles (AFVs). Grants may cover up to 38% of non-government project costs and up to 50% of government project costs. If funding is available, applicants may also allocate up to 15% of project costs to light-duty electric vehicle charging stations or hydrogen fueling equipment. Eligible AFVs include all-electric, compressed natural gas, propane, and hybrid electric vehicles. The program is funded by North Dakota’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including eligible projects and program application, see the NDDEQ Volkswagen Settlement website.
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.