Summary of Bill S 813: An Act Relative to the Remediation of Home Heating Oil Releases

Bill Number: S 813

Introduced: February 27, 2025

Current Status: Reported favorably by committee and referred to the committee on Senate Ways and Means

Sponsors:

- Jacob R. Oliveira (Primary)

- Joan B. Lovely (Cosponsor)

- Adam J. Scanlon (Cosponsor)

Purpose and Intent

Bill S 813 aims to enhance the insurance coverage available for homeowners in Massachusetts who experience heating oil releases from residential liquid fuel tanks. The legislation seeks to ensure that homeowners are adequately protected against the financial burdens associated with the remediation of such environmental incidents.

Key Provisions

The bill proposes several significant changes to Chapter 175 of the General Laws, specifically regarding homeowners' insurance policies:

1. Definitions:

   • Environmental Media: Includes sediments, groundwater, and other natural resources affected by heating oil releases.
   • Liquid Fuel Tank: Refers to tanks storing heating oil, whether indoors or outdoors, excluding underground tanks.
   • Residential Property: Defined as a dwelling with 1 to 4 units used for living or sleeping.

2. Insurance Coverage Requirements:

   • First-Party Property Coverage: Insurers must cover costs related to assessing and remediating heating oil releases affecting residential properties, including damage to personal property.
   • Third-Party Liability Coverage: Insurers must defend homeowners against third-party claims and cover costs related to environmental impacts off the insured property due to heating oil releases.

3. Coverage Limits:

   • Minimum coverage of $75,000 per occurrence for first-party property damage and $250,000 per occurrence for third-party liability, with a deductible not exceeding $1,000 per claim.

4. Exclusions:

   • Insurers may exclude coverage if the heating oil release results from the homeowner's failure to comply with specific regulations, provided that the homeowner has received adequate written notice of these requirements.

Affected Parties

The bill primarily affects:
- Homeowners with residential properties using heating oil.
- Insurance companies providing homeowners' insurance in Massachusetts.
- Environmental and remediation service providers involved in addressing heating oil releases.

Procedural and Timeline Aspects

• The bill was introduced on February 27, 2025, and has been referred to the committee on Financial Services.
• A hearing is scheduled for June 24, 2025, from 10:30 AM to 2:00 PM in Gardner Auditorium.
• The provisions of this act will apply to policies issued or renewed on or after July 1, 2025.

Conclusion

Bill S 813 represents a proactive approach to addressing the environmental and financial challenges posed by heating oil releases in Massachusetts. By mandating specific insurance coverage, the bill aims to protect homeowners and ensure that they are not left to bear the costs of remediation alone.