BILL REQ. #:  H-1315.1 

Read first time 02/07/2005.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to the nature of coverage under the heating oil pollution liability protection act; amending RCW 70.149.050 and 70.149.080; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 70.149.050 and 1995 c 20 s 5 are each amended to read as follows:
     (1) In selecting an insurer to provide pollution liability insurance coverage to owners and operators of heating oil tanks used for space heating, the director shall evaluate bids based upon criteria established by the director that shall include:
     (a) The insurer's ability to underwrite pollution liability insurance;
     (b) The insurer's ability to settle pollution liability claims quickly and efficiently;
     (c) The insurer's estimate of underwriting and claims adjustment expenses;
     (d) The insurer's estimate of premium rates for providing coverage;
     (e) The insurer's ability to manage and invest premiums; and
     (f) The insurer's ability to provide risk management guidance to insureds.
     (2) The director shall select the bidder most qualified to provide insurance consistent with this chapter and need not select the bidder submitting the least expensive bid. The director may consider bids by groups of insurers and management companies who propose to act in concert in providing coverage and who otherwise meet the requirements of this chapter.
     (3) Owners and operators of heating oil tanks, or sites containing heating oil tanks where a preexisting release has been identified or where the owner or operator knows of a preexisting release are ((eligible for coverage)) covered under the program subject to the following conditions:
     (a) The owner or operator must have a plan for proceeding with corrective action; and
     (b) If the owner or operator files a claim with the insurer, the owner or operator has the burden of proving that the claim is not related to a preexisting release until the owner or operator demonstrates to the satisfaction of the director that corrective action has been completed.

Sec. 2   RCW 70.149.080 and 2004 c 203 s 3 are each amended to read as follows:
     (1) A pollution liability insurance fee of one and two-tenths cents per gallon of heating oil purchased within the state shall be imposed on every special fuel dealer, as the term is defined in chapter 82.38 RCW, making sales of heating oil to a user or consumer.
     (2) The pollution liability insurance fee shall be remitted by the special fuel dealer to the department of licensing.
     (3) The fee proceeds shall be used for the specific regulatory purposes of this chapter.
     (4) The fee imposed by this section shall not apply to heating oil exported or sold for export from the state.
     (5) Subject to the requirements of RCW 70.149.050(3), an owner or operator who is a customer of a special fuels dealer required to pay the pollution liability insurance fee under this section is covered by the liability insurance provided by this chapter.

NEW SECTION.  Sec. 3   Sections 1 and 2 of this act expire June 1, 2007.