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Oil
Heating System Upgrade
By July
1, 2010,
you must upgrade your home heating system equipment to prevent leaks from tanks
and pipes that connect to your furnace.
This
fact sheet contains important
information for those who heat their homes
with oil. By July 1, 2010,
you must upgrade your home heating system
equipment to prevent leaks from tanks
and pipes that connect to your furnace.
By making a relatively small
expenditure now, you can prevent a much
greater expense in the future.
Massachusetts
has a new law to address oil leaks from home heating systems (see Chapter 453 of
the Acts of 2008). This law has two major provisions that require:
the
installation of either an oil safety
valve
or an oil supply line with
protective
sleeve on systems that do
not
currently have these devices; and
insurance
companies that write
homeowner
policies to offer coverage
for
leaks from heating systems that
use
oil.
Most
homeowner policies do not currently include such coverage, leaving many to pay
for costly cleanups out of their own pocket. Although it is mandatory that
insurance companies offer this coverage, the insurance is an optional purchase
for homeowners. The effective date for both provisions is July 1, 2010.
Who
must take action?
Owners
of 1- to 4-unit residences that are heated with oil must already have or install
an oil safety valve or an oil supply line with a protective sleeve, as shown in
the diagram. Installation of these devices must be performed by a licensed oil
burner technician. Technicians are employed by companies that deliver home
heating oil or are self-employed. It is important to note that heating oil
systems installed on or after January 1, 1990 most likely are already in
compliance because state fire codes implemented these requirements on new
installations at that time.
Who is
exempt?
Homeowners
are exempt from taking these leak prevention steps if:
the
oil burner is located above the oil
storage
tank and the entire oil supply
line
is connected to and above the
top
of the tank OR
an
oil safety valve or oil supply line
with
protective sleeve was installed
on
or after January 1, 1990, AND
those
changes comply with the oil
burning
equipment regulations; a
copy
of the oil burner permit from the
local
fire department may be used to
demonstrate
compliance.
Why
comply?
Not
only is complying with the new law required, it makes good financial and
environmental sense. Homeowners who take these preventive measures can avoid the
disruption and expense that can be caused by heating oil leaks. A leak may
result in exposure to petroleum vapors in your home. If the leak reaches the
soil or groundwater beneath your house, then a cleanup must be performed to
restore your property to state environmental standards. Leaks that affect
another property or impact drinking water supply wells can complicate the
cleanup and increase the expense. Each year, several hundred Massachusetts
families experience some kind of leak.
What
will an upgradecost?
The
typical cost of installing either an oil safety valve or oil supply line with a
protective sleeve ranges from $150 - $350 (including labor, parts, and local
permit fees).
For
those households that meet certain income criteria, financial assistance of up
to $300 is available through the Low Income Home Energy Assistance Program (LIHEAP).
For more information on financial assistance, see the Department of Housing and
Community Development.
What
could it cost to cleanup a leak?
The
cleanup cost for a "simple" leak can be as much as $15,000. In cases
where the leak affects the groundwater or is more extensive, the cleanup costs
can reach $250,000 or more.
What
kind of insurance is available?
To
be eligible for the new insurance coverage, homeowners must ensure that their
oil heating systems are in compliance with the new law. Homeowners who have been
certified to be in compliance with (or exempt
from)
the leak prevention measures qualify to purchase insurance that:
provides
"first party coverage" of at least $50,000 for the cost of cleaning
up a leak to soil, indoor air, or other environmental media from a home
heating system at the residence itself and reimbursement for personal property
damage, AND
provides
"third party coverage" of at least $200,000 for the cost of dealing
with conditions on and off the insured’s property because the leak from this
system has or is likely to affect groundwater or someone else’s property.
The coverage also includes costs incurred for legal defense, subject to a
deductible not to exceed $1,000 per claim.
What
should I do next?
Determine
whether you have had an oil safety valve or new oil supply line with protective
sleeve installed since January 1, 1990. If you have, your permit from the fire
department for the installation can be used to document your compliance. You can
request a copy from the fire department if the permit is on file, or a licensed
oil burner technician can certify that status on a form.
If
you do not have an oil safety valve or oil supply line with protective sleeve in
place, have one or the other installed and certified. Either contact your oil
delivery company to ask if they
employ
a licensed oil burner technician or find a service person in your area. (A list
of licensed technicians can be viewed at
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