AN ACT
Relating to financial assurance; and amending RCW 43.200.200, 43.200.210,
70.98.095, and 70.98.098.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.200.200 and 1990 c 82 s 1 are each amended to read as follows:
(1)
The director of the department of ecology shall periodically review the
potential for bodily injury and property damage ((in the packaging,
shipping, transporting, treatment, storage,)) arising from the
transportation and disposal of commercial low-level radioactive ((materials))
waste under ((licenses or)) permits issued by the state.
(2) ((Except
as otherwise provided in subsection (7) of this section,)) The
director ((shall)) may require ((each)) permit holders
to ((maintain liability coverage)) demonstrate financial assurance
in an amount that is adequate to protect the state and its citizens from all
claims, suits, losses, damages, or expenses on account of injuries to persons
and property damage arising or growing out of the ((packaging, shipping,
transporting, treatment, storage, and)) transportation or disposal
of commercial low-level radioactive ((materials)) waste. The ((liability
coverage)) financial assurance may be in the form of insurance, cash
deposits, surety bonds, corporate guarantees, and other acceptable
instruments or guarantees determined by the director to be acceptable
evidence of financial assurance.
(3) In
making the determination of the appropriate level of ((liability coverage))
financial assurance, the director shall consider:
(a)
The nature and purpose of the activity and its potential for injury and damages
to or claims against the state and its citizens;
(b)
The current and cumulative manifested volume and radioactivity of ((material))
waste being packaged, transported, buried, or otherwise handled;
(c)
The location where the ((material)) waste is being packaged,
transported, buried, or otherwise handled, including the proximity to the
general public and geographic features such as geology and hydrology, if
relevant; and
(d)
The legal defense cost, if any, that will be paid from the required ((liability
coverage)) financial assurance amount.
(4)
The director may establish different levels of required ((liability coverage))
financial assurance for various classes of permit holders.
(5)
The director shall establish by rule the instruments or mechanisms by which a
((person)) permit applicant or holder may demonstrate ((liability
coverage)) financial assurance as required by RCW 43.200.210. ((Any
instrument or mechanism approved as an alternative to liability insurance shall
provide the state and its citizens with a level of financial protection at
least as great as would be provided by liability insurance.))
(6)
The director shall complete ((the first)) a review and
determination, and report the results to the legislature((,)) by
December 1, ((1987.)) 1994, and at least every five years
thereafter, the director shall conduct a new review and determination and
report its results to the legislature.
(((7)
(a) The director by rule may exempt from the requirement to provide liability
coverage a class of permit holders if the director determines that the
exemption of that class will not pose a significant risk to persons or property
and will not pose substantial financial risk to the state.
(b)
The director may exempt from the requirement to provide liability coverage an
individual permit holder if the director determines that the cost of obtaining
that coverage for that permit holder would impose a substantial financial
hardship on the person and that failure to maintain the coverage will not pose
a significant risk to persons or property and will not pose a substantial
financial risk to the state.))
Sec.
2. RCW
43.200.210 and 1990 c 82 s 2 are each amended to read as follows:
(1)(((a)))
The department of ecology shall require that any person who holds or applies
for a permit under this chapter indemnify and hold harmless the state from
claims, suits, damages, or expenses on account of injuries to or death of
persons and property damage, arising or growing out of any operations
and activities for which the person holds the ((license or)) permit, and
any necessary or incidental operations.
(((b)
Except for a permit holder not required to maintain liability insurance
coverage under RCW 43.200.200(7), the department shall require any person who
holds or applies for a permit under this chapter to demonstrate that the person
has and maintains liability coverage for the operations for which the state has
been indemnified and held harmless pursuant to this section. The agency shall
require coverage in an amount determined by the director of the department of
ecology pursuant to RCW 43.200.200.))
(2)
The department of ecology shall refuse to issue or shall suspend the ((license))
permit of any person required by this section to ((hold and maintain
liability coverage)) demonstrate adequate financial assurance who
fails to demonstrate compliance with this section. The permit shall not be issued
or reinstated until the person demonstrates compliance with this section.
(3)
The department of ecology shall require (a) that any person required to ((maintain
liability coverage)) demonstrate financial assurance maintain with
the agency current copies of any insurance policies, certificates of insurance,
or any other documents ((used to comply with this)) sufficient to
evidence compliance with this section, (b) that the agency be notified of
any changes in the ((insurance coverage)) instruments of financial
assurance or financial condition of the person, and (c) that the state be
named as an insured party on any insurance policy used to comply with this
section. This subsection shall not apply to any person subject to the same
requirements under RCW 70.98.095.
Sec.
3. RCW
70.98.095 and 1990 c 82 s 4 are each amended to read as follows:
(1)(((a)
The radiation control agency shall require that any person who holds or applies
for a license or permit under this chapter indemnify and hold harmless the
state from claims, suits, damages, or expenses on account of injuries to or
death of persons and property, arising or growing out of any operations or
activities for which the person holds the license or permit, and any necessary
or incidental operations.
(b)
Except for a license or permit holder who the secretary has exempted from
maintaining liability coverage pursuant to RCW 70.98.098(5), the radiation
control agency shall require any person who holds or applies for a license or
permit under this chapter to demonstrate that the person has and maintains
liability coverage for the operations for which the state has been indemnified
and held harmless pursuant to this section.)) The radiation
control agency ((shall)) may require ((coverage)) any
person who applies for, or holds, a license under this chapter to demonstrate
that the person has financial assurance sufficient to assure that liability
incurred as a result of licensed operations and activities can be fully
satisfied. Financial assurance may be in the form of insurance, cash deposits,
surety bonds, corporate guarantees, letters of credit, or other financial
instruments or guarantees determined by the agency to be acceptable financial
assurance. The agency may require financial assurance in an amount
determined by the secretary pursuant to RCW 70.98.098.
(2)
The radiation control agency shall ((suspend the license or permit of)) refuse
to issue a license or permit or suspend the license or permit of any person
required by this section to ((hold and maintain liability coverage)) demonstrate
financial assurance who fails to demonstrate compliance with this section.
The license or permit shall not be issued or reinstated until the person
demonstrates compliance with this section.
(3)
The radiation control agency shall require (a) that any person required to ((maintain
liability coverage)) demonstrate financial assurance, maintain with
the agency current copies of any insurance policies, certificates of insurance,
letters of credit, surety bonds, or any other documents used to comply
with this section, (b) that the agency be notified of any changes in the ((insurance
coverage)) financial assurance or financial condition of the person,
and (c) that the state be named as an insured party on any insurance policy
used to comply with this section.
Sec.
4. RCW
70.98.098 and 1990 c 82 s 3 are each amended to read as follows:
(1) ((Except
as otherwise provided in subsection (5) of this section, the secretary shall
require each permit or license holder to maintain liability coverage in an
amount that is adequate to protect the state and its citizens from all claims,
suits, losses, damages, or expenses on account of injuries to persons and
property damage arising or growing out of the packaging, shipping,
transporting, treatment, storage, and disposal of commercial low-level
radioactive materials. The liability coverage may be in the form of insurance,
cash, surety bonds, corporate guarantees, and other acceptable instruments.
(2))) In
making the determination of the appropriate level of ((liability coverage))
financial assurance, the secretary shall consider:
(a)
The ((nature and purpose of the activity and its potential for injury and
damages to or claims against the state and its citizens;
(b)
The current and cumulative manifested volume and radioactivity of material
being packaged, transported, buried, or otherwise handled;
(c)
The location where the material is being packaged, transported, buried, or
otherwise handled, including the proximity to the general public and geographic
features such as geology and hydrology, if relevant;
(d)
The report prepared by the department of ecology pursuant to RCW 43.200.200;
and
(e)
The legal defense cost, if any, that will be paid from the required liability
coverage amount.
(3))) report
prepared by the department of ecology pursuant to RCW 43.200.200; (b) the
potential cost of decontamination, treatment, disposal, decommissioning, and
cleanup of facilities or equipment; (c) federal cleanup and decommissioning
requirements; and (d) the legal defense cost, if any, that might be paid from
the required financial assurance.
(2)
The secretary may establish different levels of required ((liability
coverage)) financial assurance for various classes of permit or
license holders.
(((4)))
(3) The secretary shall establish by rule the instruments or mechanisms
by which a person may demonstrate ((liability coverage)) financial
assurance as required by RCW 70.98.095. ((Any instrument or mechanism
approved as an alternative to liability insurance shall provide the state and
its citizens with a level of financial protection at least as great as would be
provided by liability insurance.
(5)(a)
The secretary by rule may exempt from the requirement to provide liability
coverage a class of permit or license holders if the secretary determines that
the exemption of that class will not pose a significant risk to persons or
property and will not pose substantial financial risk to the state.
(b)
The secretary may exempt from the requirement to provide liability coverage an
individual permit or license holder if the secretary determines that the cost
of obtaining that coverage for that license or permit or license holder would
impose a substantial financial hardship on the person and that failure to
maintain the coverage will not pose a significant risk to persons or property
and will not pose a substantial financial risk to the state.))
