BILL REQ. #: S-3864.1
| State of Washington | 58th Legislature | 2004 Regular Session |
Read first time 01/16/2004. Referred to Committee on Natural Resources, Energy & Water.
AN ACT Relating to heating oil tank liability protection; amending RCW 70.149.040, 70.149.070, and 70.149.080; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 70.149.040 and 1997 c 8 s 1 are each amended to read
as follows:
The director shall:
(1) Design a program for providing pollution liability insurance
for heating oil tanks that provides up to sixty thousand dollars per
occurrence coverage and aggregate limits, and protects the state of
Washington from unwanted or unanticipated liability for accidental
release claims;
(2) Administer, implement, and enforce the provisions of this
chapter. To assist in administration of the program, the director is
authorized to appoint up to two employees who are exempt from the civil
service law, chapter 41.06 RCW, and who shall serve at the pleasure of
the director;
(3) Administer the heating oil pollution liability trust account,
as established under RCW 70.149.070;
(4) Employ and discharge, at his or her discretion, agents,
attorneys, consultants, companies, organizations, and employees as
deemed necessary, and to prescribe their duties and powers, and fix
their compensation;
(5) Adopt rules under chapter 34.05 RCW as necessary to carry out
the provisions of this chapter;
(6) Design and from time to time revise a reinsurance contract
providing coverage to an insurer or insurers meeting the requirements
of this chapter. The director is authorized to provide reinsurance
through the pollution liability insurance program trust account;
(7) Solicit bids from insurers and select an insurer to provide
pollution liability insurance for third-party bodily injury and
property damage, and corrective action to owners and operators of
heating oil tanks;
(8) Register, and design a means of accounting for, operating
heating oil tanks;
(9) Implement a program to provide advice and technical assistance
to owners and operators of active and abandoned heating oil tanks if
contamination from an active or abandoned heating oil tank is
suspected. Advice and assistance regarding administrative and
technical requirements may include observation of testing or site
assessment and review of the results of reports. If the director finds
that contamination is not present or that the contamination is
apparently minor and not a threat to human health or the environment,
the director may provide written opinions and conclusions on the
results of the investigation to owners and operators of active and
abandoned heating oil tanks. The agency is authorized to collect, from
persons requesting advice and assistance, the costs incurred by the
agency in providing such advice and assistance. The costs may include
travel costs and expenses associated with review of reports and
preparation of written opinions and conclusions. Funds from cost
reimbursement must be deposited in the heating oil pollution liability
trust account. The state of Washington, the pollution liability
insurance agency, and its officers and employees are immune from all
liability, and no cause of action arises from any act or omission in
providing, or failing to provide, such advice, opinion, conclusion, or
assistance; ((and))
(10) Establish a public information program to provide information
regarding liability, technical, and environmental requirements
associated with active and abandoned heating oil tanks;
(11) Monitor agency expenditures and seek to minimize costs and
maximize benefits to ensure responsible financial stewardship;
(12) Create an advisory committee of stakeholders to advise the
director on all aspects of program operations and fees authorized by
this chapter. The committee should meet at least quarterly, or more
frequently at the discretion of the director; and
(13) If necessary, adopt by rule appropriate user fees to
supplement program funding.
Sec. 2 RCW 70.149.070 and 1997 c 8 s 2 are each amended to read
as follows:
(1) The heating oil pollution liability trust account is created in
the custody of the state treasurer. All receipts from the pollution
liability insurance fee collected under RCW 70.149.080 and reinsurance
premiums shall be deposited into the account. Expenditures from the
account may be used only for the purposes set out under this chapter.
Only the director or the director's designee may authorize expenditures
from the account. The account is subject to allotment procedures under
chapter 43.88 RCW, but no appropriation is required for expenditures.
Any residue in the account in excess of funds needed to meet
administrative costs for January of the following year shall be
transferred at the end of the ((biennium)) calendar year to the
pollution liability insurance program trust account.
(2) Money in the account may be used by the director for the
following purposes:
(a) Corrective action costs;
(b) Third-party liability claims;
(c) Costs associated with claims administration;
(d) Purchase of an insurance policy to cover all registered heating
oil tanks, and reinsurance of the policy; and
(e) Administrative expenses of the program, including personnel,
equipment, supplies, and providing advice and technical assistance.
Sec. 3 RCW 70.149.080 and 1995 c 20 s 8 are each amended to read
as follows:
(1) A pollution liability insurance fee of ((six-tenths of one))
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 ((with payment of
the special fuel dealer tax)).
(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.
NEW SECTION. Sec. 4 Section 3 of this act takes effect July 1,
2004.