HOUSE BILL REPORT
HB 2501
As Reported by House Committee On:
Consumer Protection & Business
Title: An act relating to revising the real estate seller disclosure notice to reflect changes in the pollution liability insurance agency's home heating oil tank insurance program.
Brief Description: Revising the real estate seller disclosure notice to reflect changes in the pollution liability insurance agency's home heating oil tank insurance program.
Sponsors: Representatives Klicker, Fey, Ryu, Stuebe, Barkis, Barnard, Dufault, Ramel and Reed.
Brief History:
Committee Activity:
Consumer Protection & Business: 1/28/26, 1/30/26 [DP].
Brief Summary of Bill
  • Changes the statement that a seller of residential real property must make available to the buyer regarding oil tanks for heating purposes and the Pollution Liability Insurance Agency to say remediation assistance for heating oil contamination, instead of no cost insurance, may be available.
HOUSE COMMITTEE ON CONSUMER PROTECTION & BUSINESS
Majority Report: Do pass.Signed by 15 members:Representatives Walen, Chair; Hackney, Vice Chair; McClintock, Ranking Minority Member; Dufault, Assistant Ranking Minority Member; Abbarno, Berry, Corry, Donaghy, Kloba, Morgan, Reeves, Ryu, Santos, Steele and Volz.
Staff: Peter Clodfelter (786-7127).
Background:

Seller Disclosure Statement—Oil Tank for Heating Purposes.

A seller of residential real property must make available to the buyer the following statement:  "This notice is to inform you that if the real property you are considering for purchase utilizes an oil tank for heating purposes, no cost insurance may be available from the pollution liability insurance agency."

 

Pollution Liability Insurance Agency.

The Pollution Liability Insurance Agency (PLIA) offers programs to help people who own underground storage tanks and heating oil tanks.  This includes loans and grants for assistance with the costs of cleaning up spills and upgrading tanks; technical advice and written opinions to those who are cleaning up contamination from petroleum or heating oil; and help for owners and operators of petroleum underground storage tanks through a Financial Assurance Program to meet the legal requirement to have a financial plan in place for potential cleanup costs. 

 

On July 1, 2025, the PLIA completed the transition of the Heating Oil Insurance Program into the Heating Oil Loan and Grant Program.  Preliminary planning assessments and grants up to $60,000 and loans up to $68,000 are available to eligible property owners whose application is selected.
Summary of Bill:

Seller Disclosure Statement—Oil Tank for Heating Purposes.

The statement that a seller of residential real property must make available to the buyer is changed to say the following:  "This notice is to inform you that if the real property you are considering for purchase utilizes an oil tank for heating purposes, remediation assistance for heating oil contamination may be available.  Contact the Washington State Pollution Liability Insurance Agency for more information."

 

Prospective Application of Bill.

The bill applies prospectively only and not retroactively.  It applies only to sales of property that arise on or after January 1, 2027.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:

(In support) It is important that the required information in real estate seller disclosure forms is accurate.  The PLIA made a change in the heating oil program, to now provide loans and grants instead of insurance.  The bill aligns the mandatory real estate disclosure with the change to the PLIA program.  Because the specific real estate disclosures are required by statute, when there is a change in the world then the statute must be amended to change the disclosure that must be provided by law.  The bill makes the seller disclosure form accurately represent the PLIA program.

 

(Opposed) None.
Persons Testifying:

Representative Mark Klicker, prime sponsor; and Bill Clarke, Washington REALTORS.
Persons Signed In To Testify But Not Testifying: None.