Massachusetts HD 1861: An Act relative to the cleanup of accidental home heating oil spills

Bill Text

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HOUSE DOCKET, NO. 1861        FILED ON: 1/17/2019 
HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1008 
 
The Commonwealth of Massachusetts 
_________________ 
PRESENTED BY: 
Steven S. Howitt 
_________________ 
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General 
 Court assembled: 
 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: 
An Act relative to the cleanup of accidental home heating oil spills. 
_______________ 
PETITION OF: 
 
NAME: DISTRICT/ADDRESS: DATE ADDED: 
Steven S. Howitt 4th Bristol 1/17/2019 
Bradford Hill 4th Essex 1/30/2019 
Timothy R. Whelan 1st Barnstable 1/29/2019 
Sarah K. Peake 4th Barnstable 1/30/2019 
Bruce E. Tarr First Essex and Middlesex 1/30/2019 
Stephan Hay 3rd Worcester 2/1/2019 

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HOUSE DOCKET, NO. 1861        FILED ON: 1/17/2019 
HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1008 
By Mr. Howitt of Seekonk, a petition (accompanied by bill, House, No. 1008) of Steven S. 
Howitt and others relative to homeowner's insurance coverage for the cleanup of accidental 
home heating oil spills.  Financial Services. 
 
The Commonwealth of Massachusetts 
 
_______________
 
In the One Hundred and Ninety-First General Court 
(2019-2020) 
_______________
 
 
An Act relative to the cleanup of accidental home heating oil spills. 
 
 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority 
of the same, as follows: 
 
1 SECTION 1.  Chapter 175 of the General Laws as appearing in the 2016 Official Edition 
2is hereby amended by striking out Section 4D and inserting in place thereof the following 
3section:– 
4  Section 4D. (a) As used in this section, unless the context clearly requires otherwise, 
5"residential property" shall mean a 1 to 4-unit dwelling used for living or sleeping and “liquid 
6fuel tank” shall mean a tank in which heating oil is stored and from which heating oil is delivered 
7or pumped through a fuel supply line to an oil burner, whether located within a dwelling or other 
8structure, including tanks installed at or below grade level, or located outdoors but excluding 
9underground tanks wherever located.  
10  (b) The joint underwriting association, formed pursuant to chapter 175C, and each 
11insurer licensed to write and engaged in the writing of homeowners' insurance shall offer the 
12following coverage to residential owners to whom a homeowners’ insurance policy is issued or 

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13renewed: (1) first party property coverage for response action costs incurred under chapters 21E 
14or 21K, or regulations promulgated pursuant thereto, and for property damage on the insured 
15property caused by or in response to a release of heating oil from a residential liquid fuel tank or 
16any piping, fuel supply lines, equipment or systems connected thereto; and (2) liability coverage 
17for third party claims arising out of a release of heating oil into the environment. Minimum 
18coverage of $75,000 per occurrence for first party property coverage, subject to a reasonable 
19deductible not to exceed $1,000 per claim, and $250,000 per occurrence for third party liability 
20shall be offered. Such minimum coverage shall be included in a homeowners’ insurance policy 
21unless the insurer or joint underwriting association obtains a written rejection of such coverage 
22signed by the policyholder, or the policyholder elects to purchase higher limits for such coverage 
23that the insurer or joint underwriting association, at its option, may offer.  For the purposes of 
24this section, first party property coverage shall include response action costs incurred to assess 
25and remediate a heating oil release impacting soil, indoor air or other environmental media on 
26the insured's property. Third party liability coverage shall include the obligation to defend the 
27insured at the insurer’s expense against third party claims, and such defense obligation shall 
28include coverage for costs incurred to investigate the source and extent of the release of heating 
29oil.  Damages covered under third party liability coverage shall include response action costs 
30incurred to address conditions on and off the insured's property arising from a heating oil release 
31on the insured's property that has impacted or is likely to impact groundwater or has migrated to, 
32or is likely to migrate to, a third party's property. First party and third party liability coverage 
33shall apply simultaneously and, in addition to, one another when both coverages are applicable. 
34 SECTION 2.  This act shall take effect on January 1, 2020.