Financial responsibility for oil spills
We require tank vessels, including small barges and commercial cargo/fishing/passenger vessels, to have financial responsibility. This means they are able to pay for the costs and damages of a spill up to a specified amount.
What is financial responsibility?
Financial responsibility refers to the proof or demonstration that a responsible party is able to pay for the costs and damages of a spill up to a specified amount. Typically, financial responsibility is evidenced by an insurance policy or Pollution and Indemnity (P&I) club documents, but also may involve surety bonds, guarantees, letters of credit, or qualification for self-insurance.
Financial responsibility requirements
Washington has financial responsibility requirements for vessels based on the vessel type, size, and the volume of fuel or cargo. Washington does not have its own certification program; we rely on federal and other state programs to certify vessels for financial responsibility.
On April 17, 2023, Ecology began a rulemaking to create a new rule, Chapter 173-187 WAC Financial Responsibility. The rulemaking will ensure that vessels and facility owners and operators have adequate financial resources to pay cleanup and damage costs arising from an oil spill. As part of this rulemaking, the existing Chapter 317-50 WAC – Financial Responsibility for Small Tank Barges and Oil Spill Response Barges, will be incorporated into the new rule and then repealed. For information about the rulemaking, visit our website at https://ecology.wa.gov/Regulations-Permits/Laws-rules-rulemaking/Rulemaking/WAC-173-187.
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Financial requirements |
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|---|---|
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Tank vessels and large barges of equal or greater than 300 gross tons |
$1 billion |
| Tank vessels of less than 300 gross tons | Based on the quantity of cargo the vessel is capable of carrying but no less than the federal requirement |
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Small tank barges of 300-or-less gross tons or a self-propelled tank vessel less than one hundred and thirty feet in overall length |
$2 million or $3,000 per barrel of total capacity of persistent oil or $1,500 per barrel of total capacity of nonpersistent oil; |
|
Small tank barges of 300-or-less gross tons carrying non-persistent oil |
$1,500 per barrel of total capacity |
| Cargo vessels and passenger vessels with an oil capacity greater than 6,000 gallons | $300 million |
| Fishing vessels of 300-or-greater gross tons where oil is predominantly a persistent product | $6.67 million or $400.20 per barrel of total capacity; whichever is greater |
| Fishing vessels of 300-or-greater gross tons where oil is predominantly a non-persistent product | $1.334 million or $133.40 per barrel of total capacity; whichever is greater |
| Barges that transport hazardous substances in bulk as cargo | $5 million or $300 per gross ton; whichever is greater |
| Oil spill response barges | None if tank barge is certified to be used solely for an oil spill response |
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Type of facility |
Financial requirements |
|---|---|
| Onshore or offshore facility This does not apply to facilities owned and operated by federal, state, or local government |
To be determined by Ecology for damages that might occur during a reasonable worst case spill |
More information
- Financial responsibility law. Describes requirements, provides information on ways to establish documentation of financial responsibility, and sets conditions for vessels to enter or operate on Washington waters.
- Financial responsibility rule. Addresses financial responsibility for small tank barges and oil spill response barges.
- West Coast Spill Financial Responsibility Requirements. Washington is a member of the Pacific States/British Columbia Oil Spill Task Force which has compiled comparative summary of oil spill financial responsibility requirements.
Related links
Contact information
Matt Bissell
Acting Preparedness Section Manager
Matt.Bissell@ecy.wa.gov
360-280-7061