OLR Bill Analysis

HB 6501

AN ACT ELIMINATING SURETY BOND REQUIREMENTS FOR RESIDENTIAL UNDERGROUND HEATING OIL TANK REMOVAL OR REPLACEMENT CONTRACTORS.

SUMMARY:

This bill eliminates the requirement that residential underground heating oil tank removal or replacement contractor certificate applicants must provide evidence of a surety bond to the Consumer Protection (DCP) and the Environmental Protection (DEP) departments. The bill increases from $ 250,000 to $ 1,000,000 the minimum liability insurance coverage or liquid company assets that contractors must to provide to DEP as evidence of financial assurance.

Under current law, no one may remove or replace residential underground heating oil storage tank systems involving remediation of contaminated soil or groundwater without obtaining a certificate from DCP. To obtain a certificate, registered contractors must provide evidence of (1) completion of a DEP-approved hazardous material training program, (2) liability insurance coverage of $ 1,000,000, and (3) a surety bond of at least $ 250,000.

EFFECTIVE DATE: Upon passage.

COMMITTEE ACTION

General Law Committee

Joint Favorable