5938AMSSPANS2479.2SB 5938S AMD216By Senators Finkbeiner, SpanelADOPTED 03/17/2003 Strike everything after the enacting clause and insert thefollowing:NEW SECTION.Sec. The legislature finds that the currentfinancial responsibility laws for vessels are in need of update andrevision. The legislature intends that, whenever possible, thestandards set for Washington state provide the highest level ofprotection consistent with other western states and to ultimatelyachieve a more uniform system of financial responsibility on thePacific Coast.Sec. RCW 88.40.011 and 2000 c 69 s 30 are each amended to readas follows: ((Unless the context clearly requires otherwise,)) The definitionsin this section apply throughout this chapter unless the contextclearly requires otherwise. (1) "Barge" means a vessel that is not selfpropelled. (2) "Cargo vessel" means a selfpropelled ship in commerce, otherthan a tank vessel, fishing vessel, or a passenger vessel, of threehundred or more gross tons((, including but not limited to, commercialfish processing vessels and freighters)). (((2))) (3) "Bulk" means material that is stored or transported ina loose, unpackaged liquid, powder, or granular form capable of beingconveyed by a pipe, bucket, chute, or belt system. (((3))) (4) "Covered vessel" means a tank vessel, cargo vessel, orpassenger vessel. (((4))) (5) "Department" means the department of ecology. (((5))) (6) "Director" means the director of the department ofecology. 1 (((6))) (7)(a) "Facility" means any structure, group of structures,equipment, pipeline, or device, other than a vessel, located on or nearthe navigable waters of the state that transfers oil in bulk to or from((a tank)) any vessel with an oil carrying capacity over two hundredfifty barrels or pipeline, that is used for producing, storing,handling, transferring, processing, or transporting oil in bulk. (b) A facility does not include any: (i) Railroad car, motorvehicle, or other rolling stock while transporting oil over thehighways or rail lines of this state; (ii) retail motor vehicle motorfuel outlet; (iii) facility that is operated as part of an exemptagricultural activity as provided in RCW 82.04.330; (iv) undergroundstorage tank regulated by the department or a local government underchapter 90.76 RCW; or (v) marine fuel outlet that does not dispensemore than three thousand gallons of fuel to a ship that is not acovered vessel, in a single transaction. (((7))) (8) "Fishing vessel" means a selfpropelled commercialvessel of three hundred or more gross tons that is used for catching orprocessing fish. (9) "Gross tons" means tonnage as determined by the United Statescoast guard under 33 C.F.R. section 138.30. (10) "Hazardous substances" means any substance listed as of March1, 2003, in Table 302.4 of 40 C.F.R. Part 302 adopted ((August 14,1989,)) under section 101(14) of the federal comprehensiveenvironmental response, compensation, and liability act of 1980, asamended by P.L. 99-499. The following are not hazardous substances forpurposes of this chapter: (a) Wastes listed as F001 through F028 in Table 302.4; and (b) Wastes listed as K001 through K136 in Table 302.4. (((8) "Inland barge" means any barge operating on the waters of thestate and certified by the coast guard as an inland barge. (9))) (11) "Navigable waters of the state" means those waters ofthe state, and their adjoining shorelines, that are subject to the ebband flow of the tide and/or are presently used, have been used in thepast, or may be susceptible for use to transport intrastate,interstate, or foreign commerce. (((10))) (12) "Oil" or "oils" means any naturally occurring liquidhydrocarbons at atmospheric temperature and pressure coming from theearth, including condensate and natural gasoline, and any fractionation 2 thereof, including, but not limited to, crude oil, petroleum, gasoline,fuel oil, diesel oil, oil sludge, oil refuse, and oil mixed with wastesother than dredged spoil. Oil does not include any substance listed asof March 1, 2003, in Table 302.4 of 40 C.F.R. Part 302 adopted ((August14, 1989,)) under section 101(14) of the federal comprehensiveenvironmental response, compensation, and liability act of 1980, asamended by P.L. 99-499. (((11))) (13) "Offshore facility" means any facility located in,on, or under any of the navigable waters of the state, but does notinclude a facility any part of which is located in, on, or under anyland of the state, other than submerged land. (((12))) (14) "Onshore facility" means any facility any part ofwhich is located in, on, or under any land of the state, other thansubmerged land, that because of its location, could reasonably beexpected to cause substantial harm to the environment by dischargingoil into or on the navigable waters of the state or the adjoiningshorelines. (((13))) (15)(a) "Owner or operator" means (i) in the case of avessel, any person owning, operating, or chartering by demise, thevessel; (ii) in the case of an onshore or offshore facility, any personowning or operating the facility; and (iii) in the case of an abandonedvessel or onshore or offshore facility, the person who owned oroperated the vessel or facility immediately before its abandonment. (b) "Operator" does not include any person who owns the landunderlying a facility if the person is not involved in the operationsof the facility. (((14))) (16) "Passenger vessel" means a ship of three hundred ormore gross tons with a fuel capacity of at least six thousand gallonscarrying passengers for compensation. (((15))) (17) "Ship" means any boat, ship, vessel, barge, or otherfloating craft of any kind. (((16))) (18) "Spill" means an unauthorized discharge of oil intothe waters of the state. (((17))) (19) "Tank vessel" means a ship that is constructed oradapted to carry, or that carries, oil in bulk as cargo or cargoresidue, and that: (a) Operates on the waters of the state; or 3 (b) Transfers oil in a port or place subject to the jurisdiction ofthis state. (((18))) (20) "Waters of the state" includes lakes, rivers, ponds,streams, inland waters, underground water, salt waters, estuaries,tidal flats, beaches and lands adjoining the seacoast of the state,sewers, and all other surface waters and watercourses within thejurisdiction of the state of Washington.Sec. RCW 88.40.020 and 2000 c 69 s 31 are each amended to readas follows: (1) Any ((inland)) barge that transports hazardous substances inbulk as cargo, using any port or place in the state of Washington orthe navigable waters of the state shall establish evidence of financialresponsibility in the amount of the greater of ((one)) five milliondollars, or ((one)) three hundred ((fifty)) dollars per gross ton ofsuch vessel. (2)(a) Except as provided in (b) or (c) of this subsection, a tankvessel that carries oil as cargo in bulk shall demonstrate financialresponsibility to pay at least five hundred million dollars. Theamount of financial responsibility required under this subsection isone billion dollars after January 1, 2004. (b) The director by rule may establish a lesser standard offinancial responsibility for ((barges)) tank vessels of three hundredgross tons or less. The standard shall set the level of financialresponsibility based on the quantity of cargo the ((barge)) tank vesselis capable of carrying. The director shall not set the standard for((barges)) tank vessels of three hundred gross tons or less below thatrequired under federal law. (c) The owner or operator of a tank vessel who is a member of aninternational protection and indemnity mutual organization and iscovered for oil pollution risks up to the amounts required under thissection is not required to demonstrate financial responsibility underthis chapter. The director may require the owner or operator of a tankvessel to prove membership in such an organization. (3)(a) A cargo vessel or passenger vessel that carries oil as fuelshall demonstrate financial responsibility to pay ((the greater of atleast six hundred dollars per gross ton or five hundred thousand)) atleast three hundred million dollars. 4 (b) The owner or operator of a cargo vessel or passenger vessel whois a member of an international protection and indemnity mutualorganization and is covered for oil pollution risks up to the amountsrequired under this section is not required to demonstrate financialresponsibility under this chapter. The director may require the owneror operator of a cargo vessel or passenger vessel to prove membershipin such an organization. (4) A fishing vessel while on the navigable waters of the statemust demonstrate financial responsibility in the following amounts:(a) For a fishing vessel carrying predominantly nonpersistent product,one hundred thirtythree dollars and forty cents per incident, for eachbarrel of total oil storage capacity, persistent and nonpersistentproduct, on the vessel or one million three hundred thirtyfourthousand dollars, whichever is greater; or (b) for a fishing vesselcarrying predominantly persistent product, four hundred dollars andtwenty cents per incident, for each barrel of total oil storagecapacity, persistent product and nonpersistent product, on the vesselor six million six hundred seventy thousand dollars, whichever isgreater. (5) The documentation of financial responsibility shall demonstratethe ability of the document holder to meet state and federal financialliability requirements for the actual costs for removal of oil spills,for natural resource damages, and for necessary expenses. (((5) The department may by rule set a lesser amount of financialresponsibility for a tank vessel that meets standards for construction,propulsion, equipment, and personnel established by the department.The department shall require as a minimum level of financialresponsibility under this subsection the same level of financialresponsibility required under federal law.)) (6) This section shall not apply to a covered vessel owned oroperated by the federal government or by a state or local government.Sec. RCW 88.40.040 and 2000 c 69 s 33 are each amended to readas follows: (1) ((The department shall deny entry to the waters of the state toany vessel that does not meet the financial responsibility requirementsof this chapter)) It is unlawful for any vessel required to havefinancial responsibility under this chapter to enter or operate on 5 Washington waters without meeting the requirements of this chapter orrules adopted under this chapter, except when necessary to avoid injuryto the vessel's crew or passengers. Any vessel owner or operator thatdoes not meet the financial responsibility requirements of this chapterand any rules prescribed thereunder or the federal oil pollution act of1990 shall be reported by the department to the United States coastguard. (2) The department shall enforce section 1016 of the federal oilpollution act of 1990 as authorized by section 1019 of the federalact.SB 5938S AMD216By Senators Finkbeiner, SpanelADOPTED 03/17/2003 On page 1, line 2 of the title, after vessels; strike theremainder of the title and insert amending RCW 88.40.011, 88.40.020,and 88.40.040; and creating a new section.--- END --- 6