|
Text of an amendment recommended by the
committee on Ways and Means to the Senate Bill to facilitate homeowner
heating oil spill remediation (Senate, No. 2404). |
The
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In the Year Two Thousand and Eight.
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By striking out all
after the enacting clause and inserting in place thereof the following:—
“SECTION 1. Section
127B½ of chapter 111 of the General Laws, as appearing in the 2006 Official
Edition, is hereby amended by striking out, in line 3, the words “a residential
underground fuel storage tank or” and inserting in place thereof the following
words:- contaminated media caused by a release of home heating oil or natural
gas from a residential underground fuel storage tank or from
SECTION 2. Said section 127B½ of said
chapter 111 of the General Laws, as so appearing, is hereby further amended by
inserting after the word “tank”, in lines 13 and 19, the following words:- ,
removal of contaminated media caused by a release of home heating oil or
natural gas
SECTION 3. Chapter 148 of the General
Laws is hereby amended by inserting after section 38I the following section:-
Section 38J. (a) As used in this
section the following terms shall, unless the context clearly requires
otherwise, have the following meanings:-
“Board”, the board of fire prevention
regulations within the department.
“Department”, the department of fire
services.
“Fuel supply line”, shall mean,
without limitation, a line from a tank to a burner in which oil is supplied to
the burner.
“Oil burner”, a device for burning
oil in heating appliances including, but not limited to, boilers, furnaces,
water heaters, or ranges.
“Oil safety valve”, shall mean,
without limitation, a device that prevents the flow of oil should a fuel supply
line break.
“Residential property”, a 1 to 4 unit
dwelling used for living or sleeping.
“Tank”, shall mean, without
limitation, a liquid fuel tank from which oil is stored, delivered or pumped
through a fuel supply line to a burner.
(b) An owner of residential property
utilizing an above-ground liquid fuel storage tank for consumptive use on the
premises with a capacity of 1,100 gallons or less and a fuel supply line and a
fuel return line in direct contact with concrete or earth shall have such lines
replaced and enclosed with continuous non-metallic sleeves. Such upgrades shall
be completed in accordance with the latest manufacturers’ standards. An owner
of residential property utilizing an above-ground tank for use on the premises
with 1 or more fuel supply lines in direct contact with concrete or earth
shall: (1) enclose any fuel supply line with a continuous non-metallic sleeve;
(2) have an oil safety valve installed at the tank end of any fuel supply line
in accordance with the manufacturer’s instructions; or (3) employ any other
release detection method approved by the board; provided, however, that these
upgrades shall not be required if the burner is located above the fuel storage
tank and the entire fuel supply line is connected to, and above, the top of the
tank. An owner of an outdoor, above-ground, oil tank shall be required to meet
such additional release prevention standards as required by the board.
(c) The provisions of subsection (b)
shall not apply to: (1) an owner of residential property if the fuel supply
lines on such property were installed or upgraded on or after
(d) Upgrades of fuel supply and
return lines shall be inspected and certified by a licensed oil burner
technician on a form approved by the department and submitted to the head of
the local fire department or his designee. A reasonable fee may be charged for
such inspection.
SECTION 4. Chapter 175 of the General
Laws is hereby amended by inserting after section 4C the following section:-
Section 4D. (a) As used in this
section the following terms shall, unless the context clearly requires
otherwise, have the following meanings:-
“Residential property”, a 1 to 4 unit
dwelling used for living or sleeping.
(b) No insurer licensed to write and
engaged in the writing of homeowners’ insurance, nor the joint underwriting
association, formed pursuant to chapter 175C, shall: (1) fail to provide
coverage for, exclude from coverage or deny coverage for response action costs
incurred under chapters 21E or 21K, or regulations promulgated pursuant
thereto, in response to a release of liquid fuel from a residential liquid fuel
storage tank or any piping, fuel supply lines, equipment or systems connected
thereto; (2) refuse to defend or indemnify a residential property policyholder
from third-party claims arising out of a release of liquid fuel into the
environment; (3) refuse to issue or renew a residential property policy, cancel
such an existing policy, charge an excessive premium or provide limits for all
such coverage for released liquid fuel-related response costs, claims and
liability that are less than $50,000 per occurrence for first party property
and $200,000 per occurrence for third-party liability, in addition to legal
defense costs, subject to a reasonable deductible that shall be not greater
than $1,000 per claim; or (4) otherwise discriminate relative to the
availability or terms and conditions of a residential property homeowner’s
policy based on the existence of a liquid fuel storage tank or of any piping,
fuel supply lines, equipment or systems connected thereto at the insured’s
property or in response to a claim of a release of liquid fuel into the
environment. For the purposes of this section, first party property coverage
shall include response action costs incurred to assess and remediate a liquid
fuel release impacting soil, indoor air or other environmental media on the
insured’s own property and the reimbursement of any associated personal
property damage. Third-party liability coverage shall defend and indemnify the
insured against any third-party claims and shall include response action costs
incurred to address conditions on and off the insured’s property arising from a
liquid fuel release on the insured’s own property that has impacted or is
likely to impact groundwater or has migrated to or is likely to migrate to a
third party’s property. First party and third-party liability coverage shall
apply simultaneously and, in addition to, one another when both coverage are
applicable. Insurers may charge reasonable premiums to all homes served by
liquid fuel heating systems for such coverage, with a loss cost multiplier not
exceeding that for other coverage under the same policy, and may charge higher
premiums for residential properties currently served by underground liquid fuel
tanks than are charged for residential properties served by above-ground liquid
fuel tanks. Insurers may exclude coverage or charge higher premiums for
underground storage tanks that, at the time of commencement of the policy
period, are either known by the insured to exist on the property or reasonably
should have been known by the insured to exist had the insured made reasonable
inquiries based on obvious property conditions or readily available records.
(c) Notwithstanding subsection (b),
an insurer may refuse to provide coverage pursuant to said subsection (b)
relative to residential property that has not completed the upgrades and
inspection required in section 38J of chapter 148 and any regulations
promulgated thereto, until the insured presents to the insurer proof that the
required upgrades and certification have been completed and certified pursuant
to said section 38J of said chapter 148.
SECTION 5. Notwithstanding any
general or special law to the contrary, the department of environmental
protection shall investigate the issues posed by liquid fuel releases at and
from residential properties and make recommendation thereto, including the
reduction of current annual fees billed to residential sites listed under the
Massachusetts Contingency Plan and measures to consider for reduction of the
burden on homeowners for complying with the Massachusetts Contingency Plan,
without compromising the protection of the public health, safety, welfare or
the environment at such sites. The department shall submit a report of its
investigation and recommendations to the joint committee on environment,
natural resources and agriculture not later than
SECTION 6. Notwithstanding any
general or special law to the contrary, the board of fire prevention
regulations within the department of fire services, in coordination with the
department of public safety, shall adopt regulations to carry out the purposes
of section 38J of chapter 148 of the General Laws, not later than
SECTION 7. Notwithstanding any
general or special law to the contrary, section 3 shall apply to all persons
who own property subject to section 38J of chapter 148 of the General Laws
effective
SECTION 8. Notwithstanding any
general or special law to the contrary, section 4 shall take effect January 1,
2010.”.