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Washington State's Financial Assurance Program: Summary of ESHB 1175

FA for a gas station

Aug 2, 2025

On April 25, 2023, Governor Jay Inslee signed Engrossed Substitute House Bill (ESHB) 1175 into law, establishing a new state financial assurance program for commercial petroleum underground storage tank (UST) operators in Washington. This program, administered by the Pollution Liability Insurance Agency (PLIA), offers an alternative to private insurance for gas station owners and other UST operators to meet federal and state financial responsibility requirements.

The program officially launches on October 1, 2024, and will provide coverage for both new and existing leaks. For leaks that occur during enrollment, the program offers up to $2 million in coverage for cleanup, tank replacement, and third-party damages. For leaks that occurred before enrollment, coverage is limited to $1 million for cleanup only, with no third-party liability included.

Eligibility requires that tanks be located in Washington, properly registered, and compliant with all UST regulations. Temporarily closed tanks may also qualify if they meet compliance standards. Participants must agree to remediate any future leaks to meet the standards of the Model Toxics Control Act (MTCA) or stricter requirements.

Annual enrollment fees are based on the age of the tank, ranging from $1,000 for tanks under 10 years old to $2,500 for tanks over 30 years old. Older tanks may be eligible for PLIA’s Loan and Grant Program to assist with replacement costs. Applications will be submitted through PLIA’s online portal, with an estimated review time of 36 days. This initiative aims to improve environmental protection and support small businesses by making financial assurance more accessible.




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