Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S2737 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	SENATE . . . . . . . . . . . . . . No. 2737
2	2	The Commonwealth of Massachusetts
3	3	_______________
4	4	In the One Hundred and Ninety-Third General Court
5	5	(2023-2024)
6	6	_______________
7	7	SENATE, April 22, 2024.
8	8	The committee on Senate Ways and Means to whom was referred the Senate Bill relative
9	9	to the remediation of home heating oil releases (Senate, No. 648), - reports, recommending that
10	10	the same ought to pass with an amendment substituting a new draft with the same title (Senate,
11	11	No. 2737).
12	12	For the committee,
13	13	Michael J. Rodrigues 1 of 3
14	14	FILED ON: 4/22/2024
15	15	SENATE . . . . . . . . . . . . . . No. 2737
16	16	The Commonwealth of Massachusetts
17	17	_______________
18	18	In the One Hundred and Ninety-Third General Court
19	19	(2023-2024)
20	20	_______________
21	21	An Act relative to the remediation of home heating oil releases.
22	22	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
23	23	of the same, as follows:
24	24	1 SECTION 1. Chapter 175 of the General Laws is hereby amended by striking out section
25	25	24D, as appearing in the 2022 Official Edition, and inserting in place thereof the following
26	26	3section:-
27	27	4 Section 4D. (a) As used in this section, the following words shall have the following
28	28	5meaning unless the context clearly requires otherwise:
29	29	6 “Environmental Media”, sediments, subsurface strata, plant life or water, including
30	30	7territorial, coastal and inland surface waters, groundwater, streams and water in drains, tanks or
31	31	8sewers, sewer, septic or waste treatment or storage or disposal systems servicing real property
32	32	9buildings or structures.
33	33	10 “Liquid fuel tank”, a tank in which heating oil is stored and from which heating oil is
34	34	11delivered or pumped through a fuel supply line to an oil burner, whether located within a
35	35	12dwelling or other structure, including tanks installed at or below grade level or located outdoors
36	36	13but excluding underground tanks wherever located. 2 of 3
37	37	14 “Residential property”, a 1-unit to 4-unit dwelling used for living or sleeping.
38	38	15 (b) (1) For the purposes of this section, first-party property coverage shall include
39	39	16response action costs incurred to assess and remediate a heating oil release impacting buildings,
40	40	17soil, indoor air or other environmental media on the insured’s residential property and the
41	41	18reimbursement of any associated personal property damage. For the purposes of this section,
42	42	19third-party liability coverage shall include: (i) the obligation to defend the insured at the insurer’s
43	43	20expense against third-party claims; provided, however, that such defense obligation shall include
44	44	21coverage for costs incurred to investigate the source and extent of the release of heating oil; and
45	45	22(ii) response action costs incurred to address conditions on and off the insured’s residential
46	46	23property arising from a heating oil release on the insured’s residential property that has impacted
47	47	24or presents an imminent threat to impact groundwater or has migrated to, or presents an
48	48	25imminent threat to migrate to, a third-party’s property.
49	49	26 (2) The joint underwriting association required under section 4 of chapter 175C and any
50	50	27insurer licensed to write and engaged in the writing of homeowners’ insurance shall provide the
51	51	28following coverage to owners of residential property to whom a homeowners’ insurance policy is
52	52	29issued or renewed: (i) first-party property coverage for response action costs incurred under
53	53	30chapter 21E or chapter 21K or any regulation promulgated pursuant to said chapter 21E or
54	54	31chapter 21K and property damage coverage on the insured’s residential property caused by or in
55	55	32response to a release of heating oil from a residential liquid fuel tank or any piping, fuel supply
56	56	33lines, equipment or systems connected thereto; and (ii) third-party liability coverage for third-
57	57	34party claims arising out of a release of heating oil into the environment. 3 of 3
58	58	35 (3) First-party property coverage and third-party liability coverage shall apply
59	59	36concurrently when both coverages are applicable. Insurers may include a reasonable charge for
60	60	37such coverage in premiums applicable to all homeowners' insurance policies; provided, however,
61	61	38that the minimum coverage shall be $75,000 per occurrence for first-party property coverage and
62	62	39$250,000 per occurrence for third-party liability coverage, subject to a reasonable deductible not
63	63	40to exceed $1,000 per claim.
64	64	41 (c) Notwithstanding subsection (b), the joint underwriting association and an insurer may
65	65	42include an exclusion in homeowners’ insurance policies from the coverages required pursuant
66	66	43to said subsection (b) where the heating oil release would not have occurred but for the
67	67	44owner’s failure to comply with the requirements of said subsection (b) or subsection (c) of
68	68	45section 38J of chapter 148, or any regulations promulgated pursuant to said subsection (b) or said
69	69	46subsection (c) of said section 38J of said chapter 148; provided, however, that the joint
70	70	47underwriting association or insurer has provided an annual written notice to the insured that
71	71	48explains, in at least 16-point type, such requirements under said chapter 148, and any regulations
72	72	49promulgated thereto, on a separate form approved by the division of insurance.
73	73	50 SECTION 2. This act shall apply to policies issued or renewed on or after July 1, 2025.