WSR 07-20-029

PREPROPOSAL STATEMENT OF INQUIRY

POLLUTION LIABILITY

INSURANCE AGENCY

[ Filed September 24, 2007, 2:06 p.m. ]

Subject of Possible Rule Making: Amending chapter 374-70 WAC, Heating oil pollution liability insurance program, the changes may include, but not be limited to, adding new definitions for "abandoned heating oil tank" and "decommissioned heating oil tank," extending coverage for registrants who sell their property, giving registrants time to make claims after taking their heating oil tank out of service, revising the appeal process, eliminating the property restoration allowance, and adding new service provider requirements. The passage of HB 1789 requires that the rules pertaining to coverage be expanded to include compensation for protective tanks.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 70.149.040.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Changes to the definitions and sections pertaining to eligibility and coverage are needed because of recent agency appeals. The changes would establish clear time frames for registering for the program and for filing insurance claims with the agency. It would also clarify the definition of "heating oil tank" by defining "abandoned" and "decommissioned."

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Washington state department of ecology (ecology). Contact Mike Blum, UST/LUST Coordinator, Ecology, during rule development process. Ecology is a member of PLIA's oil heat advisory committee which provides input to PLIA on agency decisions.

Process for Developing New Rule: Will work with the agency's oil heat advisory committee which includes stakeholders from the department of ecology, Washington Oil Marketers Association/Pacific Northwest Oil Heat Council, insured heating oil tank owners, and Western States Petroleum Association.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Lynn Gooding, Director, 1015 10th Avenue S.E., (360) 586-5997, fax (360) 586-7187, pliamail@plia.wa.gov.

September 24, 2007

Lynn Gooding

Director

Washington State Code Reviser's Office