Provides that the department's rules authorized under RCW 88.46.160 and this act shall be scaled to the risk posed to people and to the environment, and be categorized by type of transfer, volume of oil, frequency of transfers, and such other risk factors as identified by the department.

Provides that the rules may require prior notice be provided before an oil transfer, regulated under chapter 88.46 RCW, occurs in situations defined by the department as posing a higher risk. The notice may include the time, location, and volume of the oil transfer. Unless oil transfers are scheduled in advance four hours or more, marine fuel outlets transferring less than three thousand gallons of oil in a single transaction to a ship that is not a covered vessel shall not be required to notify the department before the oil transfer.

Provides that the department may require semiannual reporting of volumes of oil transferred to ships by a marine fuel outlet.

Provides that the rules may require additional measures to be taken in conjunction with the deployment of containment equipment or with the alternatives to deploying containment equipment.

Requires the rules to include regulations to enhance the safety of oil transfers over water originating from vehicles transporting oil over private roads or highways of the state.

Requires that the department shall by rule adopt procedures to determine the adequacy of contingency plans approved under RCW 88.46.060. The rules shall require random practice drills without prior notice that will test the adequacy of the responding entities. The rules may provide for unannounced practice drills of individual contingency plans. The department shall review and publish a report on the drills, including an assessment of response time and available equipment and personnel compared to those listed in the contingency plans relying on the responding entities, and requirements, if any, for changes in the plans or their implementation. The department may require additional drills and changes in arrangements for implementing approved plans which are necessary to ensure their effective implementation.