H-2060              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1828

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By House Committee on Environmental Affairs (originally sponsored by Representatives Phillips, D. Sommers, Sayan, Winsley, Basich, Spanel, Rust, Brumsickle, Morris, Jones, Locke, Anderson, Jacobsen, Crane, Pruitt, Wineberry, Wang, P. King, Valle, Nelson, Cooper and G. Fisher)

Read first time 3/1/89.

AN ACT Relating to financial responsibility requirements for vessels transporting hazardous substances; adding a new chapter to Title 88 RCW; prescribing penalties; and declaring an emergency.

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

NEW SECTION. Sec. 1.     The legislature recognizes that spills of hazardous substances and other forms of incremental pollution present serious danger to the fragile marine environment of Washington state.  It is the intent and purpose of this chapter to define and prescribe financial responsibility requirements for vessels which transport petroleum products and other hazardous substances across the waters of the state of Washington.

NEW SECTION. Sec. 2.     The following definitions apply throughout this chapter:

          (1) "Department" means the department of ecology;

          (2) "Hazardous substance" means oil, and any hazardous substance designated by regulations adopted under section 311(b)(2)(A) of the federal clean water act, 33 U.S.C. Sec. 1251 et seq.;

          (3) "Oil" means oil of any kind or in any form, including, but not limited to, petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other than dredged spoil;

          (4) "Vessel" means every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water, including barges.

NEW SECTION. Sec. 3.     The owner or operator of any vessel over three hundred gross tons, that transports oil or other hazardous substances as cargo, using any port or place in the state of Washington or the navigable waters of the state shall establish, under regulations prescribed by the director of the department, evidence of financial responsibility in the amount of the greater of one million dollars, or one hundred fifty dollars per gross ton of such vessel, to meet the liability to the state of Washington for the following:  (1) The actual costs for removal of spills of oil or hazardous substances; (2) civil penalties and fines; and (3) natural resource damages.

NEW SECTION. Sec. 4.     Financial responsibility may be established by any one of, or a combination of, the following methods acceptable to the director of the department:  (1) Evidence of insurance; (2) surety bonds; (3) qualification as a self-insurer; or (4) other evidence of financial responsibility.  Any bond filed shall be issued by a bonding company authorized to do business in the United States.  Documentation of such financial responsibility shall be kept on any barge or tank vessel transporting oil as cargo and filed with the department.  The owner or operator of any other vessel shall maintain on the vessel a certificate issued by the United States coast guard evidencing compliance with the requirements of section 311 of the federal clean water act, 33 U.S.C. Sec. 1251 et seq.

NEW SECTION. Sec. 5.     Any vessel owner or operator that does not meet the financial responsibility requirements of this chapter and any rules prescribed thereunder shall be reported to the secretary of transportation who shall suspend the privilege of operating the vessel until financial responsibility is demonstrated.

NEW SECTION. Sec. 6.     Any claim for costs incurred by this state, or any agency or instrumentality thereof, may be brought directly against the insurer or any other person providing evidence of financial responsibility as required under this chapter.

NEW SECTION. Sec. 7.     Any owner or operator of a vessel subject to this chapter, who fails to comply with section 3 of this act or any regulation issued thereunder, shall be subject to a penalty not to exceed ten thousand dollars.  The penalty shall be imposed pursuant to RCW 43.21B.300.

NEW SECTION. Sec. 8.     The department shall adopt rules as necessary to implement this chapter.

NEW SECTION. Sec. 9.     Sections 1 through 8 of this act shall constitute a new chapter in Title 88 RCW.

NEW SECTION. Sec. 10.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 11.    This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.