WSR 26-04-098
PROPOSED RULES
POLLUTION LIABILITY
INSURANCE AGENCY
[Filed January 30, 2026, 4:54 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 25-12-094.
Title of Rule and Other Identifying Information: Chapter 374-70 WAC, Heating oil pollution liability insurance program, also referred to as the heating oil insurance program (HOIP).
Hearing Location(s): On Tuesday, March 10, 2026, at 5:00-6:30 p.m.; on Wednesday, March 11, 2026, at 12:00-1:30 p.m.; and on Thursday, March 12, 2026, at 11:00 a.m. - 12:30 p.m., virtual via Zoom sessions. Links to Zoom meetings can be found on the pollution liability insurance agency's (PLIA) website at https://plia.wa.gov/public-engagement/. Please submit written comments to rules@plia.wa.gov. See https://plia.wa.gov/public-engagement/ for more details and links to the Zoom sessions.
Date of Intended Adoption: April 13, 2026.
Submit Written Comments to: Keith Bradley-Hewitt, P.O. Box 40930, Olympia, WA 98504, email rules@plia.wa.gov, phone 800-822-3905, beginning 8:00 a.m., February 18, 2026, by 5:00 p.m., March 19, 2026.
Assistance for Persons with Disabilities: Contact Xyzlinda VanEvery, phone 360-407-0515, TTY 711 or 800-833-6388, email rules@plia.wa.gov, by 5:00 p.m., March 19, 2026.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: PLIA provides an effective and efficient government funding model to support underground storage tank owners and operators in meeting financial responsibility and environmental cleanup requirements.
PLIA's HOIP was authorized by the legislature under RCW
70A.330.040 to assist heating oil tank owners and operators with the cost of cleaning up releases from heating oil tanks. In 2020, the legislature directed PLIA to transition HOIP to the agency's revolving loan and grant program, as described in chapter
70A.345 RCW.
On July 2, 2020, PLIA implemented the first phase of this transition by ending new registrations for HOIP. PLIA completed the transition on August 1, 2025, by ending all active registrations for HOIP. From that date onward, PLIA will not accept any new heating oil claims in HOIP, but will continue to administer claims that were still active at the time of the transition completion.
The proposed changes to the rule include the legislative directive that PLIA transition HOIP to a revolving loan and grant program, and provides procedural updates to how any remaining active claims will be administered now that the transition has been completed.
Reasons Supporting Proposal: This chapter provides registered heating oil tank owners and operators funds to clean up contamination in order to meet the substantive requirements of the Model Toxics Control Act, chapters
70A.305 RCW and 173-340 WAC. The amended rule reflects statutory direction regarding transitioning of the program and updates to program administration.
Statute Being Implemented: Chapter
70A.330 RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Phi Ly, 500 Columbia Street N.W., Olympia, WA 98501, 360-407-0517.
A school district fiscal impact statement is not required under RCW
28A.305.135.
A cost-benefit analysis is not required under RCW
34.05.328. Cost-benefit analysis is not required for an existing program.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW
19.85.025(3) as the rules are adopting or incorporating by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of statewide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule; and rule content is explicitly and specifically dictated by statute.
Scope of exemption for rule proposal:
Is not exempt.
The proposed rule does impose more-than-minor costs on businesses.
Small Business Economic Impact Statement (SBEIS)
Section 1: Introduction: PLIA has proposed a rule change to chapter 374-70 WAC, HOIP. This change meets the mandate stated in RCW
70A.330.040(1)
1 that requires the executive director to "close out existing claims under the heating oil pollution liability insurance program."
1 | Found in chapter 70A.330 RCW, Petroleum storage tank systems —Pollution Liability Protection Act. |
Since the proposed rule has the potential to impose more-than-minor costs on businesses, an SBEIS is required by law (RCW
19.85.030). This study has been developed to analyze the compliance costs of the proposed rule to small and large businesses and determine whether small businesses will bear a disproportionate share of these costs or experience any economic impacts from participating in the transition of HOIP.
Objective of the SBEIS: The objective of the SBEIS, as established in RCW
19.85.040, is to identify and evaluate the various requirements and costs that the rule might impose on businesses. In particular, the purpose is to determine whether a disproportionate impact of the compliance costs is borne by small businesses in the state. The legislative purpose of the Regulatory Fairness Act (chapter
19.85 RCW) is set out in RCW
19.85.011:
"The legislature finds that administrative rules adopted by state agencies can have a disproportionate impact on the state's small businesses because of the size of those businesses. This disproportionate impact reduces competition, innovation, employment, and new employment opportunities, and threatens the very existence of some small businesses. The legislature therefore enacts the Regulatory Fairness Act with the intent of reducing the disproportionate impact of state administrative rules on small business."
The specific purpose of the SBEIS is identified in RCW
19.85.040:
"A small business economic impact statement must include [1] a brief description of the reporting, recordkeeping, and other compliance requirements of the proposed rule, and [2] the kinds of professional services that a small business is likely to need in order to comply with such requirements. [3] It shall analyze the costs of compliance for businesses required to comply with the proposed rule adopted pursuant to RCW 34.05.320, including costs of equipment, supplies, labor, and increased administrative costs. [4] It shall consider, based on input received, whether compliance with the rule will cause businesses to lose sales or revenue. [5] To determine whether the proposed rule will have a disproportionate impact on small businesses, the impact statement must compare the cost of compliance for small business with the cost of compliance for the ten percent of businesses that are the largest businesses required to comply with the proposed rules using one or more of the following as a basis for comparing costs: (a) Cost per employee;
(b) Cost per hour of labor; or
(c) Cost per one hundred dollars of sales.
(2) A small business economic impact statement must also include:
(a) [6] A statement of the steps taken by the agency to reduce the costs of the rule on small businesses as required by RCW 19.85.030(3), or reasonable justification for not doing so, addressing the options listed in RCW 19.85.030(3); (b) [7] A description of how the agency will involve small businesses in the development of the rule;
(c) [8] A list of industries that will be required to comply with the rule. However, this subsection (2)(c) shall not be construed to preclude application of the rule to any business or industry to which it would otherwise apply and;
(d) An estimate of the number of jobs that will be created or lost as the result of compliance with the proposed rule."
For purposes of the SBEIS, the terms "business," "small business," and "industry" are defined by RCW
19.85.020:
| |
| • | "Small business" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, and that has fifty or fewer employees. |
| • | "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030. |
| • | "Industry" means all of the businesses in this state in any one four-digit standard industrial classification as published by the United States department of commerce, or the North American industry classification system as published by the executive office of the president and the office of management and budget. However, if the use of a four-digit standard industrial classification or North American industry classification system would result in the release of data that would violate state confidentiality laws, "industry" means all businesses in a three-digit standard industrial classification or the North American industry classification system. |
Summary of Proposed Rule: In an effort to mitigate the negative environmental and human health impacts associated with accidental releases from heating oil tanks, under chapter
70A.330 RCW, PLIA administered HOIP since 1996. HOIP provided participants with up to $60,000 in state-funded coverage to pay for clean-up of tank releases.
HOIP was a state reinsurance program established under a treaty with a private insurer. This treaty ended in February 2025; hence, removing PLIA's administration of a no premium, no deductible policy to owners of registered heating oil tanks. Participation in HOIP is completely voluntary. Businesses that participate in HOIP include entities which own a PLIA-registered heating oil tank and service providers that perform cleanups that meet HOIP requirements. Service providers are entities specializing in cleaning heating oil tank releases and are not compelled by any state law or regulation to participate in HOIP. In fact, service providers are selected by, and work for the heating oil tank owner. To participate in HOIP (where the service provider is directly paid for work) they must agree to a standard of reporting and invoicing outlined in the rule. These service providers agree to PLIA's established process regarding documentation for work performed for, and approved by, the tank owner.
PLIA's proposed changes to chapter 374-70 WAC reflect the agency's process for closing out HOIP and addressing outstanding claims. The chapter's changes include the following.
| |
| • | Directs owners seeking assistance with heating oil releases to the heating oil loan and grant program (HOLG). (See chapter 374-90 WAC.) |
| • | PLIA's activities under HOIP are revised to past tense. |
| • | States the ending of HOIP and the final reporting date for filing a claim. |
| • | Removes any text referencing heating oil tank registration. |
| • | Provides date-bound specifics for claim coverage and claim filing, including the reopening of claims that still have remaining coverage amounts. |
To support a state-sponsored program to assist heating oil tank owners addressing releases, PLIA established HOLG in 2020. HOLG is another voluntary program that significantly differs from HOIP, and although it is referenced in the rule change, does not impact this report's findings.
Compliance with Rule Change: It should be noted that cleanup of heating oil releases is a required action under the Model Toxics Control Act, chapter
70A.305 RCW and chapter 173-340 WAC, regardless of whether that action is taken independently or under a PLIA program.
Data from HOIP can be used to help assemble a more detailed understanding of the types of industries potentially affected by the transition of HOIP. Figure 1 shows the number of claims filed under HOIP per year since the program's inception. The data for this figure was based on the initial date of release but can be assumed to accurately represent the number of filings in each calendar year.
Figure 1. Number of HOIP Claims, 1996-20252,3
2 | Data provided via private communication with PLIA (heating oil claims by the department of licensing (year)). |
3 | Data from 2025 is year to date. |
Additional analyses of HOIP user-base can be conducted by extracting information from an extensive database4 accessed via the department of ecology website, which contains all regulated storage tanks installed and documented in Washington state since 1900. The database includes important information regarding the location and contents of these tanks. For example, for each site, the database lists the site name, region of the state, county, number of tanks, date of installment, material stored in each tank, and material used to construct each tank. The database does not include information about tank conditions, nor the type of businesses using the tanks.
4 | Department of ecology, regulated underground storage tanks (USTs). |
Although this database does not specify which tanks are specifically used for heating oil, it can provide an approximate list of the businesses within the state which possess a heating oil tank via a series of screening filters. First, the master list was filtered to include only sites with tanks marked as "active" and tank compartments containing either "heating fuel" or "kerosene." From this initial list, a keyword search was conducted using the information listed under each site's name to exclude any specified use-cases outside of heating, including any non-commercial sites, such as public-school facilities or state agency buildings, as well as any sites that are likely to be storing heating fuel or kerosene for transportation or energy purposes, such as gas stations or airports.
Based on these parameters, the estimated total number of businesses in possession of an operable heating tank within Washington is 86.
Methods of Analysis: This analysis attempts to compare the cost of compliance per $100 of sales between both large and small businesses in possession of heating oil tanks to determine whether small businesses will bear a disproportionate share of these costs. Small businesses are defined as any independent business entity with fewer than 50 employees, including both sole proprietorships and businesses organized as another type of entity, such as a partnership or a corporation. Within the context of this analysis, large businesses in possession of heating oil tanks were defined using a keyword search which flagged specific entities from among the 86 identified above to generate a list which primarily includes hospitals and facilities associated with telecommunication companies, as those industries are among the most likely to employ more than 50 individuals per business.
Section 2: Determining Impact on Small Businesses: When assessing how the rule change will affect Washington state small businesses, it is critical to note that participation in HOIP was entirely voluntary. Of the potential businesses in possession of a heating oil tank, it is unclear how many of these have registered tanks under HOIP and are qualified to file a claim for coverage. Of the more than 35 service providers on PLIA's public list, the rule change has de minimus to no impact because these business relationships are with the registered heating oil tank.
An SBEIS must also include a discussion of costs related to reporting and recordkeeping, additional professional services, and loss of revenue and sales anticipated under the new regulation. In terms of recordkeeping and reporting, there are no additional costs anticipated. There should be no more recordkeeping or reporting requirements than are currently required under HOIP. In terms of additional professional services, particularly for small businesses, none are anticipated. Finally, there are no anticipated losses of revenue or sales to heating oil tank owners. The number of jobs is not expected to change for any impacted businesses.
Ultimately, small businesses, whether an entity with a heating oil tank or a service provider or consultant performing cleanup, are not expected to be disproportionately impacted by this rule change. If anything, this change will benefit those businesses which own a heating oil tank by directing them to another voluntary PLIA program.
Section 3: Small Business Involvement in Rule Making and Impact Reduction Efforts:
Involvement of Small Business in the Development of the Proposed Rule: PLIA makes consistent efforts to reach out to impacted small businesses whenever proposing a new rule or rule change. Outreach included public comment sessions dedicated to all service providers who participate in HOIP. Notably, the rule update cites the statutory changes set by the legislature in 2020. Service providers and other small businesses engaged in PLIA's heating oil programs were informed about the transition of HOIP through direct email communication.
In order to gather more information on financially vulnerable heating oil tank owners, PLIA engaged in outreach activities with service providers and consultants who had experience performing tank decommissioning procedures.5 PLIA also shared information about the transition via virtual public information sessions and the implementation of informative banners on their website.
5 | PLIA. HOLG program, program questions and answers. |
Actions Taken to Reduce the Impact of the Rule on Small Businesses: To make the transition of HOIP as seamless as possible for small businesses, PLIA implemented a transitionary period following the end of the legal agreement between the agency and the private insurance company which provided policies to program participants under HOIP. From July 1, to July 31, 2025, those still enrolled in HOIP were able to file a new claim granted that the incident of release occurred prior to the deadline on June 30th.6 This transitionary period ended on August 1, 2025, and no new claims are to be filed under HOIP in the future.
6 | PLIA. Heating oil pollution liability insurance program. |
References: Department of ecology, regulated USTs. Heating oil tanks included in this database are a subset of all regulated tanks and do not include unregulated tanks. [Contact agency for links to references.]
PLIA, heating oil insurance service providers.
PLIA, heating oil loan and grant program.
PLIA, heating oil loan and grant program, program questions and answers.
PLIA, heating oil pollution liability insurance program.
PLIA, home page.
A copy of the statement may be obtained by contacting Keith Bradley-Hewitt, P.O. Box 40930, Olympia, WA 98504-0930, phone 360-407-0520, email rules@plia.wa.gov.
January 30, 2026
Keith Bradley-Hewitt
Community Outreach Specialist
RDS-6802.2
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-010Purpose and authority.
(((1) The purpose of this chapter is to address a solution to the threat posed to human health and the environment by accidental releases of heating oil from heating oil tanks. It is in the best interest of all citizens for heating oil tanks to be operated safely, and for accidental releases or spills to be dealt with expeditiously in order to ensure that the environment, particularly groundwater, and human health are protected. It is also in the best interest of individual heating oil tank owners to protect them from the unexpected liability and potential financial hardship associated with an accidental release from a heating oil tank.
(2))) The pollution liability insurance agency is directed by chapter
70A.330 RCW to ((
establish))
transition the heating oil pollution liability insurance program to
a revolving loan and grant program which will assist owners and operators of heating oil tanks.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-020Definitions.
Unless the context requires otherwise, the definitions in this section shall apply throughout this chapter.
(1) "Abandoned heating oil tank" means a heating oil tank that has been left unused and that is no longer connected to an oil-fired furnace used for space heating of human living or working space on the premises where the tank is located.
(2) "Accidental release" means a sudden or nonsudden release of heating oil from a heating oil tank or its system that results in bodily injury, property damage, or a need for corrective action, neither expected nor intended by the owner or operator.
(3) "Agency" means the Washington state pollution liability insurance agency established pursuant to chapter
70A.325 RCW and is referred to as PLIA throughout this chapter. For purposes of chapter
70A.330 RCW, agency or PLIA shall also mean staff or employees of the pollution liability insurance agency.
(4) "Bodily injury" means bodily injury, sickness, or disease sustained by a person, including death at any time, resulting from the injury, sickness, or disease.
(5) "Claim" means a demand made by a named insured, or the insured's representative, for payment of the benefits provided under the heating oil pollution liability insurance program.
(6)(a) "Corrective action" means those actions reasonably required to be undertaken by the insured to remove, treat, neutralize, contain, or clean up an accidental release in order to comply with a statute, ordinance, rule, regulation, directive, order, or similar legal requirement, in effect at the time of an accidental release, of the United States, the state of Washington, or a political subdivision of the United States or the state of Washington. "Corrective action" includes, where agreed to in writing, in advance by the insurer, action to remove, treat, neutralize, contain, or clean up an accidental release to avert, reduce, or eliminate the liability of the insured for corrective action, bodily injury, or property damage. "Corrective action" also includes actions reasonably necessary to monitor, assess, and evaluate an accidental release.
(b) "Corrective action" does not include:
(i) Removal, replacement or repair of heating oil tanks or other receptacles, except reimbursement of new tank replacement costs in accordance with RCW
70A.330.100;
(ii) Replacement or repair of piping, connections, and valves of tanks or other receptacles; or
(iii) Costs directly associated with tank removal.
(7) "Decommissioned heating oil tank" means a heating oil tank that is no longer connected to an oil-fired furnace used for space heating of human living or working space on the premises where the tank is located and that has been taken out of operation in accordance with the International Fire Code and any pertinent local government requirements.
(8) "Director" means the director of the Washington state pollution liability insurance agency or the director's appointed representative.
(9) "Heating oil" means any petroleum product used for space heating in oil-fired furnaces, heaters, and boilers, including stove oil, diesel fuel, or kerosene. "Heating oil" does not include petroleum products used as fuels in motor vehicles, marine vessels, trains, buses, aircraft, or any off-highway equipment not used for space heating, or for industrial processing or the generation of electrical energy.
(10) "Heating oil tank" means a tank and its connecting pipes, whether above or below ground, or in a basement, with pipes connected to the tank for space heating of human living or working space on the premises where the tank is located. "Heating oil tank" does not include a decommissioned or abandoned heating oil tank, or a tank used solely for industrial process heating purposes or generation of electrical energy.
(11) "Heating oil tank service provider" or "service provider" is an independent contractor ((responsible for))who may be hired by the insured to conduct corrective action including sampling and testing, remedial actions, site restoration, and submittal of required reports to PLIA. A service provider is not a representative, staff, or an employee of the pollution liability insurance agency.
(12) "Insurer" means the commercial insurance company ((providing))who provided pollution liability insurance to PLIA which covered owners of heating oil tanks registered under the heating oil pollution liability insurance program. PLIA is the reinsurer of the commercial insurance company and acts as the designated representative of the insurer for the heating oil pollution liability insurance program.
(13) "MTCA" means the Model Toxics Control Act (chapter
70A.305 RCW).
(14) "Named insured" means the owner of the heating oil tank registered for coverage under the heating oil pollution liability insurance program.
(15) "Occurrence" means an accident, including continuous or repeated exposure to conditions, that results in an accidental release from a heating oil tank.
(16) "Online community" means the cloud-based application and data system used by the agency, the agency's customers, and service providers to submit documentation, report, process, and look up project information.
(17) "Owner" means the person, or his or her authorized representative, legally responsible for a heating oil tank, its contents, and the premises upon which the heating oil tank is located.
(18) "Owner or operator" means a person in control of, or having responsibility for, the daily operation of a heating oil tank.
(19) "Per occurrence, per site, per year" means one accidental release per site, per year.
(20) "Pollution liability insurance agency" (PLIA) means the Washington state pollution liability insurance agency established pursuant to chapter
70A.325 RCW. For purposes of chapter
70A.330 RCW, pollution liability insurance agency shall also mean staff or employees of the pollution liability insurance agency.
(21) "Pollution liability insurance agency trust account" means the pollution liability insurance agency trust account established under chapter
70A.325 RCW and established in the custody of the state treasurer. Expenditures from the account are used for the purposes of chapter
70A.325 RCW including the payment of costs of administering the pollution liability insurance program, and payment of reinsurance claims.
(22) "Property damage" means:
(a) Physical injury to, destruction of, or contamination of tangible property, including the loss of use of the property resulting from the injury, destruction, or contamination; or
(b) Loss of use of tangible property that has not been physically injured, destroyed, or contaminated but has been evacuated, withdrawn from use, or rendered inaccessible because of an accidental release.
(23) "Property damage restoration" means the restoration of property to a similar condition to that of the property prior to the accidental release. Restoration includes the replacement of sod, plants or concrete driveway or walkway, or the replacement of flooring in the case of a basement tank.
(24) "Release" means a spill, leak, emission, escape, or leaching into the environment.
(25) (("Service provider" means an independent contractor or business who provides corrective action to address heating oil tank releases. A service provider is not a representative, staff, or an employee of the pollution liability insurance agency.
(26))) "Third-party claimant" means a person alleged to have suffered property damage requiring corrective action or bodily injury as a direct result of a leak or spill from the heating oil tank of a named insured.
(((27)))(26) "Third-party liability" means the liability of a heating oil tank owner to another person due to property damage requiring corrective action or bodily injury that results from a leak or spill from a heating oil tank.
(27) "Extended reporting period" means the 30 day time period after the insurance policy coverage has ended when a claim can still be filed. However, the release from the heating oil tank must have occurred during the time period when the insurance policy was in effect. For purposes of this program, the heating oil insurance policy coverage ended on June 30, 2025, and the extended reporting period was from June 30, 2025, until July 30, 2025.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-030Responsibility.
(1) The director of the pollution liability insurance agency ((
is))
was directed by chapter
70A.330 RCW to establish the heating oil pollution liability insurance program to assist owners and operators of heating oil tanks((
. The agency implements and administers the pollution liability insurance program established by chapter 70A.325 RCW and the heating oil pollution liability insurance program established by chapter 70A.330 RCW))
who were registered in the program, and then to transition heating oil tank owners and operators from the program into the loan and grant program in chapter 70A.345 RCW.
(2) The location of the principal office and the mailing address of the agency is:
Pollution Liability Insurance Agency
Washington State
P.O. Box 40930
Olympia, WA 98504-0930
(3) The principal administrative and appointing officer of the agency is the director. The director may designate other employees of the agency to act in ((his or her))their behalf in the director's absence or with respect to those matters in which so doing would enhance the efficiency of the agency's operations.
(4) In administering the heating oil pollution liability insurance program, PLIA acts as the designated representative of the insurer ((providing))who provided pollution liability insurance to owners of registered heating oil tanks.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-040Insurance program.
The director, as the heating oil pollution liability insurance program administrator, ((is responsible for obtaining))obtained pollution liability insurance coverage on behalf of the named insureds: All owners of registered heating oil tanks as defined in this chapter. The pollution liability insurance policy ((will provide))was a claims made and reported policy, which provided up to $60,000 coverage, ((including reinsurance,)) per occurrence, per site, per year and ((shall be))was in excess of other valid insurance and warranties. ((The policy will be reinsured through the pollution liability insurance agency trust account.))
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-050Eligibility.
In accordance with RCW
70A.330.040(1), only heating oil tanks in Washington state with registrations in place before July 2, 2020, and the owner associated with that
registered heating oil tank ((
are))
were eligible for coverage under the heating oil pollution liability insurance ((
program)).
The heating oil pollution liability insurance policy coverage ended on June 30, 2025, with an extended reporting period of 30 days, which allowed for a claim to be made until July 30, 2025. (1) ((Participation in the heating oil pollution liability insurance program is optional for heating oil tank owners with heating oil tank registrations in place before July 2, 2020.))Claims made for a nonregistered heating oil tank are not eligible for coverage under this program.
(2) Claims made for a registered heating oil tank after the extended reporting period are not eligible for coverage under this program.
(3) Claims made for an abandoned or decommissioned heating oil tank((s)) are not eligible for coverage under ((the heating oil pollution liability insurance program, except as described in WAC 374-70-080(4) and 374-70-090(4)))this program if the claim is made after the extended reporting period.
(((3)))(4) Claims made by an individual who is not the individual who registered the heating oil tank are not eligible for coverage under this program. Registration of the heating oil tank in the heating oil pollution liability insurance program must be in the name of the current owner of the property where the registered heating oil tank is located. ((In the event of a property ownership transfer, the new property owner must submit an updated registration form within 180 calendar days of the property ownership transfer in order to maintain the registration. The date of the property ownership transfer will be considered the first day of the 180 calendar days. If the new owner does not register within 180 calendar days, the registration will end.
(a) Property ownership transfers include, but are not limited to, sales, gifting, and inheritances.
(b) A person inheriting property with a heating oil tank registration has 12 months to notify PLIA about the property ownership transfer. After 12 months the registration ends if there are no notifications to PLIA and no named property owner.
(4) If a claim for coverage under WAC 374-70-080 or 374-70-090 is submitted within 180 calendar days after the property is transferred, and before the new owner has submitted an updated registration, the new owner will be deemed to be the named insured for the purposes of this chapter.))
(5) PLIA reserves the right to perform an independent investigation to verify the eligibility of a heating oil tank. All investigative costs will be the responsibility of PLIA.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-060Coverage.
(1) The effective date of coverage under the heating oil pollution liability insurance program is January 1, 1996, to June 30, 2025, with an extended reporting period. Corrective action for an accidental release occurring prior to ((this effective date will))January 1, 1996, is not ((be)) covered under ((the))this program. Corrective action for an accidental release occurring after June 30, 2025, will not be covered under this program.
(2) The heating oil pollution liability insurance program provides coverage for corrective action costs up to $60,000 per occurrence, per site, per year, exclusive of other valid insurance or warranties.
(3) ((Corrective action))Costs covered under the heating oil pollution liability insurance program include:
(a) Corrective action if the accidental release occurs after the registration of a heating oil tank and before June 30, 2025, and was a claim made under this program;
(b) Actions necessary to determine the extent and severity of an accidental release;
(c) Costs, not to exceed $60,000 per occurrence, per site, per year;
(d) Costs in excess of other valid insurance or warranties;
(e) Third-party property damage restoration, including landscaping, limited to $1,500 for each third-party claimant per occurrence, per site, per year;
(f) Excavation, treatment and/or removal and proper disposal of any soil or water contaminated by the accidental release and proper disposal of nonrepairable heating oil tank or tanks;
(g) Required soil and water sampling and testing to determine if corrective action standards have been met; and
(h) Reimbursement of new tank replacement costs in accordance with RCW
70A.330.100.
(i) The technical assistance program enrollment fee for the heating oil tank release site.
(4) ((Corrective action))Costs not covered under the heating oil pollution liability insurance program include:
(a) Corrective action if the accidental release occurred prior to the registration of a heating oil tank or after June 30, 2025;
(b) Any costs if the accidental release is not covered by the claim made to the agency;
(c) Costs covered by other valid insurance or warranties;
(((c)))(d) Costs in excess of $60,000 per occurrence, per site, per year, exclusive of other valid insurance or warranties;
(((d)))(e) Cleanup of contamination from other sources;
((
(e)))
(f) Removal, repair or replacement of the heating oil tank, lines, or furnace, except reimbursement of new tank replacement costs in accordance with RCW
70A.330.100;
(((f)))(g) Emergency heat restoration procedures;
(((g)))(h) Cleanup of a site beyond the MTCA cleanup levels or requirements;
(((h)))(i) Corrective action associated with an abandoned or decommissioned heating oil tank or site;
(((i)))(j) Corrective action to address releases or damage to the heating oil tank or its system or surrounding property caused by a service provider or contractor;
(((j)))(k) Corrective action performed by a service provider whose principal is also the named property owner of the registered heating oil tank;
(((k)))(l) Costs associated with landscaping and surface restoration in excess of previous conditions for the property of the named insured;
(((l)))(m) Costs associated with property restoration that are not deemed essential to personal safety or are in excess of previous conditions at the site;
(((m)))(n) Third-party property damage restoration, including landscaping, in excess of $1,500 for each third-party claimant per occurrence, per site, per year; and
(((n)))(o) Defense costs, including the costs of legal representation, expert fees, and related costs and expenses incurred in defending against claims or actions brought by or on behalf of:
(i) The United States, the state of Washington, or a political subdivision of the United States or state of Washington to require corrective action or to recover costs of corrective action; or
(ii) A third party for bodily injury or property damage caused by an accidental release.
(5) If a claim exceeds $60,000 in total damages, coverage within the $60,000 policy limit shall be on a pro rata basis between the insured heating oil tank owner and third-party claimant(s).
(6) A claim will be accepted for coverage only after the named insured provides PLIA with documentation which confirms the existence of an accidental release which is eligible for coverage under these rules. PLIA reserves the right to perform an investigation including, but not limited to, soil sample testing, to confirm a release.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-070Parties involved with an accidental release and corrective action.
Among the potential parties involved when an accidental release is suspected from a heating oil tank or line are the heating oil tank owner or operator, adjacent property owners, heating oil supplier, PLIA, third-party administrator, department of ecology, and heating oil tank service providers.
(1) Heating oil tank owner or operator. All liabilities caused by an accidental release originating from a heating oil tank are the sole responsibility of the heating oil tank owner or operator. The pollution liability insurance agency and/or the state of Washington accepts no liability, nor portion of the liability, from the heating oil tank owner or operator.
(a) The heating oil tank operator may submit forms to PLIA on behalf of the owner, however, no corrective action may be performed without the specific written consent of the heating oil tank owner.
(b) The heating oil tank owner or operator is responsible for notifying the heating oil supplier in the case of a suspected accidental release and investigating the source and extent of the suspected accidental release.
(c) The heating oil tank owner is responsible for providing documentation to PLIA that pollution liability coverage will not be provided by the homeowner's insurer.
(d) If corrective action is implemented, the heating oil tank owner is responsible for selecting a service provider ((approved by the insurer)) and approving the completed corrective action.
(2) Adjacent property owners. If an accidental release migrates offsite, or is suspected to have migrated, the adjacent property owner may be involved in the corrective action. In this situation, the heating oil tank owner or operator shall notify PLIA of the occurrence and provide the adjacent property owner's name, address and telephone number.
(3) Heating oil supplier. Some heating oil suppliers provide customer services which may be a resource to evaluate a suspected accidental release to the environment. If after investigating a heating system malfunction, a heating oil supplier determines that an accidental release may have occurred, the heating oil supplier should inform the owner or operator of the accidental release.
(4) PLIA acts as the designated representative of the insurer for purposes of the heating oil pollution liability insurance program. PLIA provides informal advice and technical assistance to heating oil tank owners and operators (chapter 374-80 WAC), ((provides listings of service providers approved by the insurer,)) manages claims for the insurer and provides ((certification))documentation that a claim is closed.
(5) Third-party administrator. PLIA may appoint a third-party administrator to assist in monitoring, investigation and corrective action.
(6) Department of ecology. The department of ecology administers statewide laws and rules detailing MTCA cleanup standards ((for both soil and groundwater)). To be an eligible ((for coverage under))cost covered by the heating oil pollution liability insurance program, corrective action must satisfy MTCA and ((pertinent))applicable local government requirements.
(7) Heating oil tank service provider. A heating oil tank service provider is an independent contractor who contracts with the heating oil tank owner to perform corrective action, and meets the requirements detailed in WAC 374-70-100.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-080Claims.
The program provides coverage for a claim submitted for an accidental release from a registered heating oil tank until June 30, 2025, with a 30 day extended reporting period. Claims submitted after July 30, 2025, are not covered under this program.
(1) Coverage under the heating oil pollution liability insurance program shall be in excess of other valid insurance and warranties. Payment of a claim will be made only if the cleanup of contamination resulting from an accidental release is not covered by other valid insurance and warranties.
(2) Corrective action will be accomplished by the most cost-effective method available. To receive payment from the heating oil pollution liability insurance program for covered ((corrective action)) costs, the following actions are required:
(((1)))(a) The claim must be for corrective action resulting from an accidental release from a heating oil tank which has been registered with PLIA prior to the accidental release and where the release occurred before June 30, 2025;
(b) The claim must be received by PLIA prior to July 30, 2025;
((
(2)))
(c) The claim must satisfy all requirements and restrictions established by chapter
70A.330 RCW and this chapter. Any failure to satisfy all requirements and restrictions may be a basis for denial of claim;
(((3) The heating oil tank owner or operator must provide notice to PLIA that a potential claim exists as soon as practicable after discovery that an accidental release may have occurred;
(4) A claim must be made with PLIA by the owner of the registered tank as soon as practicable, but not more than 180 calendar days after the date a registered heating oil tank becomes abandoned or decommissioned;
(5) Upon receipt of notice of a potential claim, PLIA will commence completion of the notice of claim, and will require the heating oil tank owner to select a service provider from PLIA's listing of approved heating oil tank service providers;
(6) The heating oil tank operator may submit reports and forms on behalf of the heating oil tank owner; however, no corrective action will be initiated or performed without the specific written consent of the heating oil tank owner;
(7) The heating oil tank owner is responsible for investigation to determine the source of a suspected accidental release. The heating oil tank owner is also responsible for providing documentation to PLIA that coverage will not be provided by the owner's homeowners' insurer;
(8) If the claim is determined by PLIA to be valid, PLIA will notify the heating oil tank owner or operator. The corrective action shall be performed by a heating oil tank service provider approved by the insurer;
(9) The heating oil tank service provider will notify PLIA of selection by the heating oil tank owner. PLIA will inform))(d) The heating oil tank operator may submit reports and forms on behalf of the heating oil tank owner; however, no corrective action will be initiated or performed without the specific written consent of the heating oil tank owner;
(e) The heating oil tank owner is responsible for investigation to determine the source of a suspected accidental release.
(3) For coverage under the program, upon discovery of an accidental release, the heating oil tank owner or operator of the registered tank must complete the following actions:
(a) The heating oil tank owner or operator must have filed a notice of potential claim with PLIA as soon as practicable after discovery that an accidental release may have occurred;
(b) Upon receipt of notice of a potential claim, PLIA will review the notice of potential claim. As part of the review, the heating oil tank owner or operator must provide PLIA with soil sampling results and documentation showing there is no other insurance coverage (e.g., homeowners' insurance). If the claim is determined by PLIA to be valid, PLIA will notify the heating oil tank owner or operator;
(c) Upon notification of a valid claim, the heating oil tank owner or operator will select a heating oil tank service provider, and inform PLIA of their selection. PLIA will inform the heating oil tank owner if the heating oil tank service provider is ineligible to work in the heating oil insurance program;
(d) The heating oil tank service provider ((of))must use the following forms ((to be used and)) which are accessed through the online community:
(((a)))(i) Scope of work proposal. This form will provide the heating oil tank owner or operator and PLIA the site characterization and proposal of the extent and elements of corrective action to include analytical samples, as well as a specific cost proposal;
(((b) Change order))(ii) Work plan amendment. This form provides a proposal for change or deviation from the scope of work proposal;
(((c) Project field))(iii) Site characterization report. This form provides a record of all corrective action and work elements, as well as a record of detailed costs. The ((project field))site characterization report must include color photographs of the project at commencement, completion, and any significant steps in between, as well as appropriate project sketches and/or plans; and
(((d)))(iv) Closeout report. This will include a project closeout form, final cleanup report, and ((corrective action cost claim. The closeout report may serve as the closure of the claim under this program;
(10)))final invoice.
(e) The heating oil tank service provider will submit ((for approval)), via the online community documents, a scope of work proposal for corrective action at the heating oil tank site first to the heating oil tank owner or operator for approval and then to PLIA ((a scope of work proposal for corrective action at the heating oil tank site))for approval;
(((11)))(f) Upon receipt of approval by the heating oil tank owner and PLIA of the scope of work proposal, the heating oil tank service provider may commence work to accomplish corrective action(s);
(((12) All work performed by the heating oil tank service provider on behalf of the heating oil tank owner or operator and PLIA must be within the terms of the contract and the approved scope of work proposal and shall not exceed costs included in the scope of work proposal. Any change(s) or deviation(s) from the approved scope of work proposal must be accomplished through a change order request which must be approved in advance by the heating oil tank owner or operator and then PLIA. Any work performed by the heating oil tank service provider that has not been approved, prior to performance, by the heating oil tank owner or operator and/or PLIA or is beyond the terms of the scope of work proposal or change order(s), or is in excess of costs approved in the scope of work proposal or change order(s), will not be paid or reimbursed under the heating oil pollution liability insurance program. Such work or excess costs will be the responsibility of the heating oil tank owner and/or heating oil tank service provider;
(13)))(g) Corrective action activities and costs must be recorded by the heating oil tank service provider on the ((project field))site characterization report form in the online community;
(((14)))(h) Upon completion of all corrective action, the heating oil tank owner must sign the project closeout report ((indicating))or indicate approval ((of and satisfaction))via the online community, which states they are approving of and satisfied with all work performed by the heating oil tank service provider;
(((15)))(i) Upon completion of corrective action and approval by the heating oil tank owner, the heating oil tank service provider must submit to PLIA a complete ((claim report))closeout report and final invoice;
(((16)))(j) Upon completion of corrective action that ((appears to satisfy))satisfies the requirements of all applicable state and local statutes, the ((director))agency will ((certify))document that the claim has been closed((;)).
(((17)))(4) All work performed by the heating oil tank service provider on behalf of the heating oil tank owner or operator and PLIA must be within the terms of the contract and the approved scope of work proposal and shall not exceed costs included in the scope of work proposal. Any change(s) or deviation(s) from the approved scope of work proposal must be accomplished through a work plan amendment request which must be approved in advance by the heating oil tank owner or operator and then PLIA. Any work performed by the heating oil tank service provider that has not been approved, prior to performance, by the heating oil tank owner or operator and/or PLIA or is beyond the terms of the scope of work proposal or work plan amendment(s), or is in excess of costs approved in the scope of work proposal or work plan amendment(s), will not be paid or reimbursed under the heating oil pollution liability insurance program. Such work or excess costs will be the responsibility of the heating oil tank service provider.
(5) If a notice of potential claim has been filed and approved by PLIA but no work commenced within ((12))six months, then PLIA may close the claim for inactivity, and the registered owner must request reopening of the claim from PLIA((;)). If work at the property (e.g., invoices submitted, work plans submitted) stops for a consecutive six months, then PLIA may close the claim for inactivity, and the registered owner must again request reopening of the claim from PLIA.
((
(18)))
(6) Approval of claims and payment of covered costs are contingent upon the availability of revenue. The director reserves the right to defer payment at any time that claim demands exceed the statutory limit provided in RCW
70A.330.040(1) and to develop a plan on resuming payments. Payment will commence with sufficient revenue((
;))
.(((19)))(7) PLIA will maintain all records associated with a claim for a period of 10 years((; and)).
(((20)))(8) In the case of an emergency, the director may authorize deviation from this procedure to the extent necessary to adequately respond to the emergency.
NEW SECTION
WAC 374-70-085Reopening a claim.
The program provides coverage for a claim submitted for an accidental release from a registered heating oil tank until June 30, 2025, with a 30 day extended reporting period. Claims submitted and approved prior to July 30, 2025, but administratively closed may be reopened using the following process:
(1) The reopened claim coverage is for the corrective action resulting from an accidental release from a heating oil tank at the time the claim was made. The reopened claim does not cover costs associated with a new release. Where a new release has commingled with the release associated with a claim, the insurance coverage will be provided for the percentage of the costs aligned with the claim release;
(2) The reopened claim must satisfy all requirements and restrictions established by chapter
70A.330 RCW and this chapter. Any failure to satisfy all requirements and restrictions may be a basis for denial of further work under the claim;
(3) The heating oil tank owner or operator must provide notice to PLIA that they wish to reopen a claim and then attend a claim review meeting with PLIA. PLIA recommends attending a claim review meeting before filing a notice of reopening claim. However, a meeting must occur before PLIA will issue a reopened claim determination. A claim may only be reopened by the heating oil tank owner or operator who filed the original claim;
(a) The reopened claim will only address contamination from the release reported in the claim. At PLIA's request the heating oil tank owner or operator must submit documentation to prove by clear, cogent, and convincing evidence the contamination is associated with the claim's release of heating oil as part of the notice of reopening claim. A laboratory reported opinion on chromatograms may be used to age date a diesel sample;
(b) Where a claim has been closed due to completion of a MTCA remedial action, the heating oil tank owner or operator must show to PLIA by clear, cogent, and convincing evidence that the reopened claim is necessary to meet MTCA standards and to be protective of human health and the environment;
(4) A reopened claim does not in any way increase the limits of the insurance policy. The reopened claim will be limited to eligible cost of up to $60,000 minus any costs already paid out under the claim;
(5) PLIA will review notice of a reopened claim, and upon approval, the heating oil tank owner will select a heating oil tank service provider and provide notice of the selection to PLIA. PLIA will inform the heating oil tank owner if the heating oil tank service provider is ineligible to work in the heating oil insurance program;
(a) The heating oil tank operator may submit reports and forms on behalf of the heating oil tank owner; however, no corrective action will be initiated or performed without the specific written consent of the heating oil tank owner;
(b) The following forms must be used by the heating oil service provider for work in the heating oil insurance program. The forms are accessed through the online community:
(i) Scope of work proposal. This form will provide the heating oil tank owner or operator and PLIA the site characterization and proposal of the extent and elements of corrective action to include analytical samples, as well as a specific cost proposal;
(ii) Work plan amendment. This form provides a proposal for change or deviation from the scope of work proposal;
(iii) Site characterization report. This form provides a record of all corrective action and work elements, as well as a record of detailed costs. The site characterization report must include color photographs of the project at commencement, completion, and any significant steps in between, as well as appropriate project sketches and/or plans; and
(iv) Closeout report. This will include a project closeout form, final cleanup report, and final invoice;
(c) The heating oil tank service provider will submit via the online community a scope of work proposal for corrective action at the heating oil tank site, first to the heating oil tank owner or operator for their approval and then to PLIA;
(d) Upon receipt of approval by the heating oil tank owner and PLIA of the scope of work proposal, the heating oil tank service provider may commence work to accomplish corrective action(s);
(e) Corrective action activities and costs must be recorded by the heating oil tank service provider on the site characterization report form in the online community;
(f) Upon completion of all corrective action, the heating oil tank owner must sign the project closeout report or indicate approval via the online community, which states they are approving of and satisfied with all work performed by the heating oil tank service provider;
(g) Upon completion of corrective action and approval by the heating oil tank owner, the heating oil tank service provider must submit to PLIA a complete closeout report and final invoice;
(h) Upon completion of corrective action that satisfies the requirements of all applicable state and local statutes, the director will document that the claim has been closed;
(6) All work performed by the heating oil tank service provider on behalf of the heating oil tank owner or operator and PLIA must be within the terms of the contract and the approved scope of work proposal and shall not exceed costs included in the scope of work proposal. Any change(s) or deviation(s) from the approved scope of work proposal must be accomplished through a work plan amendment request which must be approved in advance by the heating oil tank owner or operator and then PLIA. Any work performed by the heating oil tank service provider that has not been approved, prior to performance, by the heating oil tank owner or operator and/or PLIA or is beyond the terms of the scope of work proposal or work plan amendment(s), or is in excess of costs approved in the scope of work proposal or work plan amendment(s), will not be paid or reimbursed under the heating oil pollution liability insurance program. Such work or excess costs will be the responsibility of the heating oil tank service provider;
(7) If a notice of reopened claim has been filed and approved by PLIA but no work commenced within six months, then PLIA may close the claim for inactivity, and the registered owner must again request reopening of the claim from PLIA. If work at the property (e.g., invoices submitted, work plans submitted) stops for a consecutive six months, then PLIA may close the claim for inactivity, and the registered owner must again request reopening of the claim from PLIA;
(8) Approval of claims and payment of covered costs are contingent upon the availability of state funding. The director reserves the right to defer payment at any time that claim demands exceed the statutory limit provided in RCW
70A.330.040(1) and to develop a plan on resuming payments. Payment will commence with sufficient state funding;
(9) PLIA will maintain all records associated with a claim for a period of 10 years; and
(10) In the case of an emergency, the director may authorize deviation from this procedure to the extent necessary to adequately respond to the emergency.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-090Third-party claims.
The program provides coverage for a third-party claim submitted for an accidental release from a registered heating oil tank until June 30, 2025, with a 30 day extended reporting period. Claims submitted after July 30, 2025, are not covered under this program.
Coverage for a third-party claim under the heating oil pollution liability insurance program shall be in excess of other valid insurance and warranties. Payment of a third-party claim will be made only if the cleanup of contamination resulting from an accidental release is not covered by other valid insurance and warranties. Corrective action will be accomplished by the most cost-effective method available. For a third party to receive payment from the heating oil pollution liability insurance program for covered corrective action costs, the following actions are required:
(1) The third-party claim must be for corrective action resulting from an accidental release from a heating oil tank which has been registered with PLIA prior to the accidental release, where the accidental release occurred prior to June 30, 2025, and the claim was filed prior to July 30, 2025;
(2) The claim must satisfy all requirements and restrictions established for third-party claims by chapter
70A.330 RCW and this chapter. Any failure to satisfy all requirements and restrictions may be a basis for denial of claim;
(3) The third-party claimant must provide notice to PLIA that a potential third-party claim may exist as soon as practicable after discovery that damage may have occurred from an accidental release from a named insured's heating oil tank;
(4) ((The claim must be submitted to PLIA as soon as practicable but no later than 180 days after the date a registered heating oil tank is abandoned or decommissioned;
(5))) Upon receipt of notice of a potential claim, PLIA will commence completion of the notice of claim;
(((6)))(5) If an accidental release from a named insured's heating oil tank has been confirmed as impacting the third-party claimant, PLIA, as designated representative of the insurer will initiate an investigation to determine the source of the contamination. Investigation will be performed by PLIA or a designated representative approved by the insurer. PLIA may also assist the named insured heating oil tank owner in determining if the insured's homeowner's insurance provides coverage for third-party damage. The third-party claimant shall cooperate fully with the investigator and provide any information or access necessary to complete the investigation;
(((7)))(6) If the claim is determined by PLIA to be valid, the third-party claimant will be notified by PLIA to select ((an approved))a heating oil tank service provider to perform corrective action((;
(8) The heating oil tank service provider will notify PLIA of selection by the third-party claimant. PLIA will then inform the heating oil tank service provider of the following forms to be used and which are accessed through the online community:
(a) Scope of work proposal. This form will provide the third-party claimant and PLIA the site characterization and a proposal of the extent and elements of corrective action to include analytical samples, as well as a specific cost proposal;
(b) Change order. This form provides a proposal for change or deviation from the scope of work proposal;
(c) Project field report. This form provides a record of all corrective action and work elements, as well as a record of detailed costs. The project field report must include color photographs of the project at commencement, completion, and any significant steps in between, as well as appropriate project sketches and/or plans; and
(d) Closeout report. This form will include a project closeout report, final cleanup report, and corrective action cost claim. The closeout report may serve as the closure of the claim under this program;
(9) The heating oil tank service provider will submit for approval to the third-party claimant and then to PLIA a scope of work proposal for corrective action at the heating oil tank site;
(10) Upon receipt of approval by the third-party claimant and PLIA of the scope of work proposal, the heating oil tank service provider may commence work to accomplish corrective action(s);
(11) All work performed by the heating oil tank service provider on behalf of the third-party claimant and PLIA must be within the terms of the contract and the approved scope of work proposal and shall not exceed costs included in the scope of work proposal. Any change(s) or deviation(s) from the approved scope of work proposal must be accomplished through a change order request which must be approved in advance by the third-party claimant and then PLIA. Any work performed by the heating oil tank service provider that has not been approved, prior to performance, by the third-party claimant and PLIA, or is beyond the terms of the scope of work proposal or change order(s), or is in excess of costs approved in the scope of work proposal or change order(s), will not be paid or reimbursed under the heating oil pollution liability insurance program. Such work or excess costs will be the responsibility of the third-party claimant and/or heating oil tank service provider;
(12) Corrective action activities and costs must be recorded by the heating oil tank service provider on the project field report form provided in the online community;
(13) Upon completion of all corrective action, the third-party claimant must sign the project closeout report indicating approval of and satisfaction with all work performed by the heating oil tank service provider;
(14) Upon completion of corrective action and approval by the third-party claimant, the heating oil tank service provider must submit to PLIA a complete claim report;
(15) Upon completion of corrective action that appears to satisfy the requirements of all applicable state and local statutes, the director will certify that the third-party claim has been closed;
(16) Approval of claims and payment of covered costs are contingent upon the availability of revenue. The director reserves the right to defer payment at any time that claim demands exceed the statutory limit provided in RCW 70A.330.040(1) and to develop a plan on resuming payments; (17) PLIA will maintain all records associated with a claim for a period of 10 years; and
(18) In the case of an emergency, the director may authorize deviation from this procedure to the extent necessary to adequately respond to the emergency.)). PLIA will inform the heating oil tank owner if the heating oil tank service provider is ineligible to work in the heating oil insurance program;
(7) The following forms must be used by the heating oil service provider for work in the heating oil insurance program. The forms are accessed through the online community:
(a) Scope of work proposal. This form will provide the third-party claimant and PLIA the site characterization and proposal of the extent and elements of corrective action to include analytical samples, as well as a specific cost proposal;
(b) Work plan amendment. This form provides a proposal for change or deviation from the scope of work proposal;
(c) Site characterization report. This form provides a record of all corrective action and work elements, as well as a record of detailed costs. The site characterization report must include color photographs of the project at commencement, completion, and any significant steps in between, as well as appropriate project sketches and/or plans; and
(d) Closeout report. This will include a project closeout form, final cleanup report, and final invoice;
(8) The heating oil tank service provider will submit via the online community a scope of work proposal for corrective action at the heating oil tank site, first to the third-party claimant for their approval and then to PLIA;
(9) Upon receipt of approval by the third-party claimant and PLIA of the scope of work proposal, the heating oil tank service provider may commence work to accomplish corrective action(s);
(10) Corrective action activities and costs must be recorded by the heating oil tank service provider on the site characterization report form in the online community;
(11) Upon completion of all corrective action, the third-party claimant must sign the project closeout report or indicate approval via the online community, which states they are approving of and satisfied with all work performed by the heating oil tank service provider;
(12) Upon completion of corrective action and approval by the third-party claimant, the heating oil tank service provider must submit to PLIA a complete closeout report and final invoice;
(13) Upon completion of corrective action that satisfies the requirements of all applicable state and local statutes, the director will document that the claim has been closed;
(14) All work performed by the heating oil tank service provider on behalf of the third-party claimant and PLIA must be within the terms of the contract and the approved scope of work proposal and shall not exceed costs included in the scope of work proposal. Any change(s) or deviation(s) from the approved scope of work proposal must be accomplished through a work plan amendment request which must be approved in advance by the third-party claimant and then PLIA. Any work performed by the heating oil tank service provider that has not been approved, prior to performance, by the third-party claimant and/or PLIA or is beyond the terms of the scope of work proposal or work plan amendment(s), or is in excess of costs approved in the scope of work proposal or work plan amendment(s), will not be paid or reimbursed under the heating oil pollution liability insurance program. Such work or excess costs will be the responsibility of the heating oil tank service provider;
(15) If a notice of a third-party claim has been filed and approved by PLIA but no work commenced within six months, then PLIA may close the claim for inactivity, and the third-party claimant must request reopening of the claim from PLIA. If work at the property (e.g., invoices submitted, work plans submitted) stops for a consecutive six months, then PLIA may close the claim for inactivity, and the third-party claimant must again request reopening of the claim from PLIA;
(16) Approval of claims and payment of covered costs are contingent upon the availability of state funding. The director reserves the right to defer payment at any time that claim demands exceed the statutory limit provided in RCW 70A.330.040(1) and to develop a plan on resuming payments. Payment will commence with sufficient state funding; (17) PLIA will maintain all records associated with a claim for a period of 10 years; and
(18) In the case of an emergency, the director may authorize deviation from this procedure to the extent necessary to adequately respond to the emergency.
AMENDATORY SECTION(Amending WSR 23-05-006, filed 2/2/23, effective 3/5/23)
WAC 374-70-100Service provider requirements and procedures.
(1) ((All))Corrective action under this program shall be performed by ((insurer approved))a heating oil tank service provider((s)). A heating oil tank service provider is an independent contractor ((responsible for))hired by the insured to conduct corrective action including excavation, sampling and testing, remedial actions, site restoration, and submittal of required reports to PLIA. The contractual agreement is between the heating oil service provider and the registered heating oil tank owner.
(2) PLIA does not approve or endorse any company considered to be a heating oil tank service provider. Heating oil tank service providers are required to sign an agreement with PLIA that the provider and its employees (including subcontractors) will adhere to the terms and conditions detailed in the program's service provider agreement and to renew this agreement annually.
(((a) PLIA provides a list of heating oil tank service providers on PLIA's website. This list is reviewed and updated regularly.
(b)))(3) Any service provider ((suspended or terminated due to violation))who does not follow the terms of the service provider agreement is ((prohibited from participating))ineligible to participate in the heating oil insurance program.
(((3)))(a) In addition to noncompliance with any of the terms in the service provider agreement, the following events may be grounds for being ineligible to participate in the heating oil insurance program:
(i) Improper use of claim funds with or without the heating oil tank owner's or third-party claimant's permission, including improper or false billing to maximize or exceed the heating oil tank owner's total claim amount.
(ii) Abusive, unprofessional, or inappropriate communications between the service provider and any member of PLIA's staff or the heating oil tank owner or third-party claimant. This includes willfully ignoring or dismissing inquiries from PLIA regarding the claim.
(iii) Repeated noncompliance with the instruction and procedures in the service provider agreement.
(iv) False or misleading information provided by the service provider to PLIA or to the heating oil tank owner or the third-party claimant or members of the public.
(v) Nonperformance, fraudulent performance, or unsatisfactory performance of contract requirements between the service provider and the heating oil tank owner or third-party claimant.
(vi) Other inconsistent or unsatisfactory performance such as deviation from standard industry best practices, as determined by PLIA's legislative and policy manager and/or the deputy director.
(vii) Any violation of federal, state, or local law or regulation by the service provider.
(4) Once retained by the named insured or the third-party claimant, the heating oil tank service provider works with ((the insurer, PLIA, as the insurer's designated representative,))PLIA, the heating oil tank owner or operator and/or the third-party claimant to:
(a) Perform the corrective action;
(b) Document the costs of the corrective action; and
(c) File the forms required through the online community to receive payment from the heating oil pollution liability insurance program.
(((4)))(5) All heating oil tank service providers must follow claims procedures as outlined in WAC 374-70-080 and 374-70-085.
(((5) Whenever possible,))All corrective action activities must meet the criteria established by MTCA and any pertinent local ordinances or requirements.
AMENDATORY SECTION(Amending WSR 97-06-080, filed 3/3/97, effective 4/3/97)
WAC 374-70-130Confidentiality of information.
(1) All information related to registration of heating oil tanks obtained during heating oil tank registration shall be confidential and ((may))is not ((be)) subject to public disclosure under chapter ((42.17))42.56 RCW.
(a) Information submitted as part of a claim is not confidential or subject to the confidentiality requirements of RCW 70A.330.080. This information may be withheld or redacted if a Public Records Act (chapter 42.56 RCW) exemption applies. (b) Information gathered during, or related to, remedial actions conducted under this chapter is not confidential or subject to the confidentiality requirements of RCW 70A.330.080. This information may be withheld or redacted if a Public Records Act (chapter 42.56 RCW) exemption applies. (2) All examination and proprietary reports and information obtained in soliciting bids from insurers and in monitoring the selected insurer shall be confidential and may not be made public or otherwise disclosed to any person, firm, corporation, agency, association, government body, or other entity.