Pollution Liability Insurance Agency

AEG works closely with PLIA and our clients to insure that each project is funded and insured properly from the start.

The Pollution Liability Insurance Agency (PLIA) provides an effective and efficient government funding model that helps owners and operators meet financial responsibility and environmental cleanup requirements for underground storage tanks.

PLIA is also responsible for:

  • Verifying the validity of required declarations of financial responsibility.
  • Providing advice and technical assistance about liability, cleanup requirements, and related matters to the owners and operators of heating oil tanks.
  • Implementing the Underground Storage Tank Capital Financial Assistance Pilot Program.
Programs

Commercial Underground Storage Tanks:

  • Underground Storage Tank Reinsurance Program
  • Underground Storage Tank Loan & Grant Program

Heating Oil:

  • Heating Oil Pollution Liability Insurance Program
  • Heating Oil Advice and Technical Assistance Program
Funding

PLIA and its programs are funded from the Pollution Liability Insurance Program Trust Account (Trust Account) and the Heating Oil Pollution Liability Trust Account. Neither PLIA nor any of its programs receive any State General Fund revenue. The main source of revenue for PLIA and its programs is the Petroleum Products Tax (pdf), an excise tax of 0.3 percent on the wholesale value of petroleum on its first introduction into the state. RCW 82.23A.020 requires the Petroleum Product Tax to be reinstated when the unrestricted account balance is less than $7,500,000. When the balance reaches $15,000,000 the tax is suspended.

The Heating Oil Pollution Liability Trust Account is established through a fee of 1.2 cents per gallon paid yearly by heating oil dealers.

The PLIA model has operated in a remarkably low cost and efficient manner. In the early 1990s, most states adopted a petroleum tax to address UST issues, and those taxes have remained constantly imposed. Not only has the PLIA model saved businesses millions of dollars on insurance premiums, it has saved them even more by not having the Petroleum Product Tax constantly in effect.

Website Link: www.plia.wa.gov

AEG