Oregon Sewage Disposal Service Bond

Oregon Sewage Disposal Service Bond

The Oregon Department of Environmental Quality (DEQ) requires that any person licensed to perform installation or pumping of septic tanks must obtain a Sewage Disposal Service Bond. For people installing septic disposal systems a $15,000 bond must be filed with the DEQ. Operations that only perform septic pumping needs to file a $5,000 bond.

PURCHASE BOND

Jet offers the lowest rate for the required bond. This is all done thanks to our pumped up online process and by getting rid of brokers and agents who only collect commissions and fees while only offering insurance for a third party carrier.

What Is the Lowest Price for the Sewage Disposal Service Bond?

For septic pumpers the cost of the bond is always $100 annual or $10 monthly. Septic Installers and Installer/Pumpers have a bond cost of $150 annually or $15 monthly. 

Oregon Sewage Disposal Service Bond Rates
License type Monthly Annual
Septic Pumper Only $10 $100
Septic Installer $15 $150
 

A few brokers will help you finance the bond premium through a premium finance company, but that comes with large down payments and high APRs! As long as the credit or debit card you provide Jet clears, your bond remains in force - it’s that simple!

Can Jet File the Sewage Disposal Bond With the DEQ for Me?

You bet! The trick for this bond form is to have all principals (owners with more than 10%) sign the bond form. With Jet, this can all be done online during purchase, just make sure the owners are all there. Jet will send the original sealed bond form to the DEQ directly for you. You may opt to have Jet send the sealed bond form to your location for signature.

New septic installer and pumper applicants are required to submit the original bond form with their application and other required items as listed below to the DEQ. Jet will definitely get this to you to be submitted as the DEQ demands.

Original Sewage Disposal Service Bond filings are always sent to the following address:

Oregon Department of Environmental Quality
165 E. 7th Ave., Suite 100
Eugene, OR 97401

Can the Sewage Disposal Service Bond Be Cancelled for a Refund?

With Jet you can! For pumper only bonds other surety companies retain up to $100 of the bond payment from purchase. Meaning there would be nothing to return to you even if you don’t use your bond for the full year. 

Jet will return any prorated refund available to you. The Department of Environmental Quality requires the bond remain active for 45 days after the DEQ receives the cancellation notice from insurance companies. Jet does have to factor in the 45 period while the bond remains active. 

The benefit of the 45-day grace period lies in the fact that any missed bond payment by the principal (septic company) that results in bond cancellation does have ample time to rectify the situation. Thus get the bond reactivated before the license falls into suspension.

How Do I Make Payments for My Bond After the Initial Purchase? 

For monthly payment plans, the payments are automatically withdrawn monthly from the card provided during purchase. The card can be changed by calling (503) 268-3133. If an annual or multi-year term payment option was selected for the bond, Jet will send renewal notices via email and mail with plenty of time before the bond expires. We understand how difficult it is to obtain a license and do not want anyone’s hard-earned license to come into jeopardy over a bonding requirement.

Which Sewage Disposal Service License Do I Need?

It comes down to three things to determine what license you are required to obtain from the Oregon Department of Environmental Quality; whether you install septic systems, pump septic contents or do both.

Sewage Disposal Service Installer License: This is for contractors who install or perform work on septic systems. This includes excavation, tank installation and equipment servicing. Septic system certification by a third party school is required prior to obtaining the license and at recertification every three years. This recertification also involves a continuing education requirement. A $15,000 surety bond is required to have this installer license.

PURCHASE SEWAGE DISPOSAL INSTALLER BOND

Sewage Disposal Service Pumper License: Individuals and companies that pump out septic systems and portable toilets must obtain a license. Vehicles and equipment utilized for pumping and hauling must pass an inspection and cannot be used in service unless proper ID tags are on each vehicle. The DEQ requires an Septage Management Plan Worksheet from each licensed pumper to detail how the pumper plans to dispose of the septage. A $5,000 surety bond is required for the pumper only license. 

PURCHASE SEWAGE DISPOSAL PUMPER BOND

Sewage Disposal Service Installer/Pumper License: Just as it seems, this license combines the installer and pumper license allowing the sewage disposal service to perform the functions of the installer and pumper licenses. This license follows all the same licensing requirements as the other two septic service licenses, but only is required to have one $15,000 surety bond.

PURCHASE SEWAGE DISPOSAL INSTALLER/PUMPER BOND

How Does a Principal Avoid Bond Claims?

Septic tank installers and pumpers need to follow the regulations set forth by the Oregon Secretary of State to protect public water and health in Oregon. By following the rules septic companies can avoid any disciplinary action from the DEQ. Examples of violations include improper disposal of sewage or installing/repairing septic systems without a permit.

Should a rule be broken, the DEQ can respond in several ways depending on the severity of a violation. A warning letter, pre-enforcement notice or notice of permit violation are used for smaller offenses. Repeated or more severe violations result in formal enforcement actions and/or civil penalties. The accused must abide by a corrective action specified by the DEQ and/or pay a civil penalty. 

If the septic tank installer or pumper is able to satisfy the corrective action imposed by the Department of Environmental Quality, then there will not be a claim on the bond.

What Happens If I Get a Bond Claim?

If you receive notice of a bond claim, contact Jet immediately. We work with all our bonded principals (sewage disposal services) to make sure the claim is not frivolous. In the case of a bond claim coming from the DEQ, Jet will want to verify if you have already complied with the enforcement action and thus have the claim dropped. 

With a valid claim, Jet will pay the DEQ or claimant. Unlike a business insurance policy, which protects the sewage disposal service from risk, the surety bond protects the DEQ and ultimately the public from installer or pumper. The surety bond is much like a letter of credit and will need to be reimbursed if paid out.

Upon paying the claim Jet will file a cancellation on the bond to the DEQ, thus placing the license under suspension until the sewage disposal service reimburses the Surety for the claim. Remember, Jet acts as a guarantor to the DEQ that the principal will rectify any valid claims.

When Does the Sewage Disposal Service Bond Expire?

The sewage disposal service bond expiration date is based on the date it was purchased. The bond is typically purchased on annual or multi year terms. As the expiration date approaches, septic disposal services can either renew the bond, purchase with another provider or let the bond expire which will lead to the bond cancelling, thus placing the license in a suspension.

Sewage Disposal Service Bonds are continuous until cancelled. With payment made before expiration, the bond will remain in effect with the DEQ. Sureties must actively cancel the bond.

With Jet’s monthly payment option as long as payment is made the bond does not expire. However, the bond can be cancelled at any time if the dealer decides to stop paying the monthly premium. For annual bond terms with Jet, we provide ample notice prior to the bond expiration to make payment on the bond to avoid any licensing issues.

Are There Other Bonds That a Principal Needs?

For septic installers who perform other contractor trades in Oregon, they will need to obtain a bond to be licensed for that specific work. The Oregon Construction Contractors Board enforces this bond requirement which varies based on the type of work and experience of the contractor.

 

Sewage Disposal Service Installer Bond Form:

Oregon Sewage Disposal Service Installer Bond Form

Sewage Disposal Service Pumper Bond Form:

Oregon Sewage Disposal Service Pumper Bond Form