![]() Namely, the bill introduces a “ certificate of financial responsibility” for these entities. Financial responsibility programs are systematic efforts by state and local governments to evaluate and respond to the financial risks they face at each stage of the fossil fuel product life cycle in their jurisdictions. They work in tandem with other market-based solutions for internalizing the social costs of carbon. HB 1691 proposes important changes for the on-shore facilities that service oil vessels, holding the oil industry accountable in much the same way the Washington Department of Ecology already administers a robust financial assurance program for companies that treat, store, and dispose of hazardous waste. Self-insurance has proved insufficient to cover these risks, with Big Oil too often externalizing onto communities its liabilities: ecological devastation, damages to tourism, industry, and recreation, and adverse health impacts. Over a billion gallons of oil transfer from vessels to on-shore facilities quarterly. Every day, the state faces the risk of an oil spill. Washingtonians are too familiar with this story. They have seen thousands of barrels of oil poison the Salish Sea over the last 50 years. The community, meanwhile, shoulders the costs: to their waterways, aquatic life and tourism, lands, and livelihoods. What too often occurs in the case of a self-insured accident, however, is that the company declares bankruptcy or stalls with costly litigation. This means the corporation promises to cover the costs of any accidents itself rather than purchase insurance externally. Currently, these entities are permitted to “ self-insure” against the risks inherent in their business operations. ![]() Specifically, the bill targets the oil-carrying marine vessels and the stationary facilities like refineries and pipelines that service them. A study by Earth Economics in 2019 modeled a spill in the San Juan Islands, finding that a spill of 95,000 barrels of diluted bitumen could cost $142 million to $510 million.
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