HB 4100

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session
  Enrolled
  House Bill 4100
Sponsored by Representatives ISADORE, NELSON, Senator REYNOLDS, Representative TRAN,
   Senator FREDERICK; Representatives ANDERSEN, EDWARDS, EVANS, GAMBA, GOMBERG,
   HUDSON, NATHANSON, RIEKE SMITH, WALTERS, Senators MANNING JR, NERON
   MISSLIN, PHAM K (Presession filed.)
  CHAPTER .................................................
  AN ACT
Relating to bulk fuel terminals; creating new provisions; amending ORS 468B.513 and 468B.525; and
    declaring an emergency.
Be It Enacted by the People of the State of Oregon:
    SECTION 1. Sections 2 to 5 of this 2026 Act are added to and made a part of ORS 468B.510
to 468B.525.
    SECTION 2. The Legislative Assembly finds and declares that:
    (1) Ensuring financial responsibility for bulk oils or liquid fuels terminals handling oil,
liquid fuel and hazardous materials is essential to protecting the state’s natural resources,
economy and public health.
    (2) Bulk oils or liquid fuels terminals must be financially capable of covering spill-related
liabilities, including spill or release response, remediation and damages.
    (3) Requirements for certificates of financial responsibility established by the Environ-
mental Quality Commission under section 4 of this 2026 Act should ensure that bulk oils or
liquid fuels terminals maintain sufficient financial assurances to address potential spill-
related liabilities.
    (4) In adopting rules under section 4 of this 2026 Act, the commission should:
    (a) Ensure that the rules are consistent with federal standards, where appropriate, while
addressing state-specific risks and needs; and
    (b) Consider requirements for financial responsibility established by the State of
Washington in order to promote consistency for regulated entities in the region.
    SECTION 3. As used in sections 2 to 5 of this 2026 Act:
    (1) “Certificate of financial responsibility” means a certification issued by the Depart-
ment of Environmental Quality that confirms that a bulk oils or liquid fuels terminal has
demonstrated the financial ability to cover potential spill-related liabilities.
    (2) “Financial assurance mechanism” means an instrument or other evidence that es-
tablishes financial assurance for spill-related liabilities, including but not limited to:
    (a) Evidence of insurance or self-insurance;
    (b) Surety bonds;
    (c) A letter of credit;
    (d) A trust; or
Enrolled House Bill 4100 (HB 4100-B)  Page 1
    (e) Other evidence of financial responsibility deemed acceptable by the Environmental
Quality Commission.
    (3) “Hazardous material” has the meaning given that term in ORS 466.605.
    (4) “Spill or release” means the discharge, deposit, injection, dumping, spilling, emitting,
releasing, leaking or placing of any oil, liquid fuel or hazardous material into the air or into
or on any land or waters of the state.
    (5) “Spill-related liability” means the costs and damages incurred by the State of Oregon,
federally recognized Indian tribes, cities or counties as the result of an oil, liquid fuel or
hazardous material spill or release, including but not limited to:
    (a) Spill or release response and cleanup expenses;
    (b) Fire damage; and
    (c) Natural resource damage assessments and restoration.
    SECTION 4. (1) The owner or operator of a bulk oils or liquid fuels terminal shall acquire
and maintain a certificate of financial responsibility in accordance with rules adopted by the
Environmental Quality Commission under this section.
    (2) Rules adopted by the commission must:
    (a) Establish reasonable minimum amounts of financial assurance based on an evaluation
of:
    (A) The type, size and operational risk of bulk oils or liquid fuels terminals;
    (B) The maximum volume of oil, liquid fuel or hazardous materials handled by bulk oils
or liquid fuels terminals;
    (C) Historical spill or release response costs and projected cleanup expenses in the areas
where bulk oils or liquid fuels terminals operate;
    (D) The environmental sensitivity of the areas where bulk oils or liquid fuels terminals
operate;
    (E) Commercially available financial assurance mechanisms, including maximum cover-
ages offered; and
    (F) Financial assurance requirements in other jurisdictions.
    (b) Establish standards for financial assurance mechanisms that may be used, alone or
in combination, to demonstrate financial assurance for spill-related liabilities.
    (c) Establish standards for self-insurance that are no less protective than the qualifica-
tion standards for self-insurance established in other jurisdictions with similar programs as
of January 1, 2026, and from which Oregon imports significant volumes of oil or fuel pro-
ducts.
    (d) Require that an owner or operator that uses self-insurance to establish financial as-
surance for spill-related liabilities:
    (A) Satisfy a test based on the owner’s or operator’s:
    (i) Solvency; or
    (ii) Current credit rating;
    (B) Provide quarterly reports to the Department of Environmental Quality to demon-
strate the owner’s or operator’s continued ability to cover spill-related liabilities; and
    (C) Provide a guarantee for the amount of financial assurance required.
    (e) Require that, before a certificate of financial responsibility is issued to a bulk oils or
liquid fuels terminal, one or more financial assurance mechanisms will cover the bulk oils
or liquid fuels terminal’s potential spill-related liabilities.
    (f) Establish initial deadlines for bulk oils or liquid fuels terminals to apply for a certif-
icate of financial responsibility.
    (g) Require that a certificate of financial responsibility be renewed:
    (A) Every three years; and
    (B) Each time there is a change in ownership of the bulk oils or liquid fuels terminal or
in the identity of the person that holds the certificate of financial responsibility.
    (h) Establish policies and procedures for enforcing this section, including:
Enrolled House Bill 4100 (HB 4100-B)  Page 2
     (A) A process for verifying a bulk oils or liquid fuels terminal’s evidence of financial as-
surance;
     (B) Standards for restricting or suspending the operations of bulk oils or liquid fuels
terminals that do not satisfy the requirements of this section; and
     (C) In accordance with ORS 468.130 and rules adopted pursuant to ORS 468.130, the im-
position of a civil penalty for each day that a bulk oils or liquid fuels terminal operates
without a certificate of financial assurance.
     (i) Be consistent with the requirements of federal law, including the federal Oil Pollution
Act of 1990 (P.L. 101-380), while accounting for state-specific needs.
     (3) In adopting rules under this section, the commission shall consider requirements for
financial responsibility established by the State of Washington in order to promote consist-
ency for regulated entities in the region.
     (4)(a) Rules adopted under this section may not require a bulk oils or liquid fuels termi-
nal to obtain an amount of financial assurance that is greater than $300 million.
     (b) Once every three years, the department shall evaluate and may adjust the maximum
amount of financial assurance listed in paragraph (a) of this subsection. If the department
adjusts the maximum amount of financial assurance, the department shall adjust the amount
of financial assurance required for each bulk oils or liquid fuels terminal accordingly.
     (5) The commission shall, at regular times established by the commission by rule, update
the minimum amounts of financial assurance established under subsection (2)(a) of this
section to reflect:
     (a) Inflation and other economic conditions;
     (b) Industry changes and improvements;
     (c) Emerging risks; and
     (d) Lessons learned from spill or release response efforts.
     (6)(a) The commission shall appoint an advisory committee to assist the commission in
drafting rules under this section and ensure that the requirements for financial responsibil-
ity established under this section are fair and effective.
     (b) The advisory committee shall be composed of, in equal proportions:
     (A) Industry stakeholders;
     (B) Local government representatives; and
     (C) Community members.
     (c) The advisory committee may consult with or be advised by any person with expertise
relevant to the duties of the advisory committee.
     (7) A local government, as defined in ORS 174.116, may not adopt or enforce any ordi-
nance, rule or regulation requiring the owner or operator of a bulk oils or liquid fuels ter-
minal to obtain a financial assurance mechanism that exceeds or is in addition to the
requirements of this section or rules adopted by the commission pursuant to this section.
     SECTION 5. No later than September 15 of each even-numbered year, the Department
of Environmental Quality shall submit a report to the interim committees of the Legislative
Assembly related to emergency management and the environment, in the manner provided
by ORS 192.245, that describes the department’s implementation of sections 2 to 5 of this 2026
Act.
     SECTION 6. Notwithstanding section 5 of this 2026 Act, the Department of Environ-
mental Quality shall first submit the report described in section 5 of this 2026 Act to the
interim committees of the Legislative Assembly related to emergency management and the
environment no later than September 15, 2027.
     SECTION 7. Notwithstanding section 4 (4) of this 2026 Act, the Department of Environ-
mental Quality may not evaluate or adjust the maximum amount of financial assurance
listed in section 4 (4) of this 2026 Act before January 1, 2030.
     SECTION 8. In adopting rules under section 4 of this 2026 Act, the Environmental Quality
Commission shall require that, for a bulk oils or liquid fuels terminal operating in this state
Enrolled House Bill 4100 (HB 4100-B)  Page 3
on the effective date of this 2026 Act, the initial deadline to apply for a certificate of financial
responsibility be no later than March 31, 2027.
     SECTION 9. ORS 468B.513 is amended to read:
     468B.513. (1) The owner or operator of a bulk oils or liquid fuels terminal shall properly imple-
ment a seismic risk mitigation implementation plan that has been approved by the Department of
Environmental Quality. A seismic risk mitigation implementation plan must, at a minimum, identify
actions, with timelines, to protect public health, life safety and environmental safety within the fa-
cility, in areas adjacent to the facility and in other areas that may be affected as a result of dam-
ages to the facility. A seismic risk mitigation implementation plan, as a risk-based assessment, must
include consideration of the likelihood of a magnitude 9.0 Cascadia Subduction Zone earthquake, the
potential consequences of that event and the resources needed to respond to that event.
     (2) The Environmental Quality Commission, in consultation with the State Department of
Geology and Mineral Industries, shall adopt by rule a seismic risk mitigation implementation pro-
gram for bulk oils or liquid fuels terminals that is based on risk. To the extent feasible and appro-
priate, the program adopted under this section shall be consistent and coordinated with the program
established under ORS 468B.345 to 468B.415. Rules adopted under this section shall include, but not
be limited to:
     (a) Rules for the required content of seismic risk mitigation implementation plans and rules for
approval by the Department of Environmental Quality of seismic risk mitigation implementation
plans.
     (b) Provisions for training, response exercises, external peer reviews, inspections and tests in
order to verify the ability of the facility to sustain safe conditions and respond to uncontrolled re-
leases of hazardous materials from the bulk oils or liquid fuels terminal due to an earthquake.
     (c) Requirements to minimize harmful impacts to local communities and natural resources due
to uncontrolled releases of hazardous materials from the bulk oils or liquid fuels terminal due to an
earthquake and its associated direct and indirect impacts, including fires and flooding.
     (d) Requirements for the inspection of bulk storage tanks at bulk oils or liquid fuels terminals.
     (e) Design and construction standards for new bulk storage tanks constructed at bulk oils or
liquid fuels terminals.
     (f) Design and construction standards for seismic mitigation of existing bulk storage tanks, pip-
ing and related structures constructed at bulk oils or liquid fuels terminals.
     (g) Provisions requiring the proper installation of seismically certified generators to power
critical operations, or at a minimum, the installation of electrical hookups for emergency generators.
     (h) Provisions for the review of seismic vulnerability assessments required under ORS 468B.510
and seismic risk mitigation implementation plans required under subsection (1) of this section by
state agencies with expertise in earthquake hazards, risk mitigation or emergency preparedness or
management.
     (i) Provisions requiring the owner or operator of a bulk oils or liquid fuels terminal to submit
seismic vulnerability mitigation implementation plan updates to the department:
     (A) According to a schedule established by the commission;
     (B) Upon the retrofit or reconstruction of all or a part of a bulk oils or liquid fuels terminal;
and
     (C) Based on new scientific or technical findings, but no more frequently than once every three
years.
     (j) Provisions establishing a fee calculated to cover the costs to the department of [reviewing
seismic risk mitigation implementation plans submitted under this section and seismic risk assessments
submitted under ORS 468B.510,] carrying out ORS 468B.510 to 468B.525, less any federal funds
received by the department for [those purposes] that purpose. Fees received by the department un-
der this paragraph shall be deposited in the Seismic Risk Mitigation Fund established under ORS
468B.525.
Enrolled House Bill 4100 (HB 4100-B)  Page 4
     (k) Provisions establishing grants or other financial assistance to owners or operators of bulk
oils or liquid fuels terminals for improvements to existing infrastructure, provided that federal funds
are made available to the department for that purpose.
     SECTION 10. ORS 468B.525 is amended to read:
     468B.525. (1) The Seismic Risk Mitigation Fund is established in the State Treasury, separate
and distinct from the General Fund. Interest earned by the Seismic Risk Mitigation Fund shall be
credited to the fund.
     (2) Moneys in the Seismic Risk Mitigation Fund shall consist of:
     (a) Money appropriated to the fund by the Legislative Assembly;
     (b) Fees deposited in the fund under ORS 468B.513;
     (c) Moneys transferred to the fund from the federal or state government; or
     (d) Gifts, grants and donations received from any source.
     (3) All moneys in the Seismic Risk Mitigation Fund are continuously appropriated to the De-
partment of Environmental Quality for the purposes of:
     (a) [Reviewing seismic risk mitigation implementation plans submitted under ORS 468B.513 and
seismic risk assessments submitted under ORS 468B.510] Carrying out ORS 468B.510 to 468B.525;
and
     (b) Providing grants or other financial assistance to owners or operators of bulk oils or liquid
fuels terminals under ORS 468B.513 (2)(k).
     SECTION 11. Notwithstanding any other law limiting expenditures, the limitation on ex-
penditures established by section 2 (3), chapter 426, Oregon Laws 2025, for the biennium
ending June 30, 2027, as the maximum limit for payment of expenses from fees, moneys or
other revenues, including Miscellaneous Receipts, the proceeds of bonds for the Orphan Site
Account and federal funds from congestion mitigation and air quality grants, drinking water
protection, laboratory accreditation and woodstove grants and for smoke monitoring labo-
ratory services, but excluding lottery funds and federal funds not described in section 2,
chapter 426, Oregon Laws 2025, collected or received by the Department of Environmental
Quality, for land quality, is increased by $175,162, to carry out sections 2 to 8 of this 2026
Act and the amendments to ORS 468B.513 and 468B.525 by sections 9 and 10 of this 2026 Act.
     SECTION 12. This 2026 Act being necessary for the immediate preservation of the public
peace, health and safety, an emergency is declared to exist, and this 2026 Act takes effect
on its passage.
Enrolled House Bill 4100 (HB 4100-B)  Page 5
Passed by House March 5, 2026  Received by Governor:
  ........................M.,........................................................., 2026
       ..................................................................................
  Approved:
  Timothy G. Sekerak, Chief Clerk of House
  ........................M.,........................................................., 2026
       ..................................................................................
  Julie Fahey, Speaker of House
  ..................................................................................
  Tina Kotek, Governor
Passed by Senate March 6, 2026
  Filed in Office of Secretary of State:
       ..................................................................................   ........................M.,........................................................., 2026
  Rob Wagner, President of Senate
  ..................................................................................
  Tobias Read, Secretary of State
Enrolled House Bill 4100 (HB 4100-B)  Page 6