NJDEP Tank Grant Change Posted May 3, 2011
New Jersey Tank Grants are being depleted faster than the NJDEP and EDA anticipated, this in conjunction with a lack of funding replenishment has caused the NJDEP to withhold processing new tank non leaking grants starting May 3,2011. What this means to grant applicants and carriers:
- Any applicant that has received a funding approval agreement from the EDA can safely proceed with the remedial work as approved. Applicants with any cost overruns on the remedial work can still apply for supplemental funding. These supplemental fund requests will be reviewed but funding may not be approved based on available monies in the fund.
- Any grant application submitted after May 3, 2011, will be time stamped and reviewed when the NJDEP catches up to that part of the queue and based on availability of funds.
- The NJDEP has found that the grant program offerred to homeowners to remove underground oil tanks has driven a rise in tank removals and associated case numbers for leaking tanks. Without the financial incentive, the oil tank removal rate will attenuate to historic levels, with an increase during peak residential real estate sales periods.
- Grant applicants have been encouraged to perform testing and have been reimbursed for forensic investigations in order to date the range of when the tank leak occurred. This approach is to try to obtain partial insurance coverage from past policies. Most homeowners do not realize that insurance coverage may be available from the insurance policy for tank leaks.
- Insurance Carriers will have to perform tighter investigation to ensure that plume areas are well defined as homeowners will have to bear the burden of remedial costs without the benefit of financial grants from New Jersey.
- If additional funding is transferred to the grant fund, the NJDEP and EDA may take a stricter stance on the need based criteria for grant approval to help supply grants to the neediest of applicants. The NJDEP previously implemented this approach when regulated commercial underground storage tanks had access to this grant funding, on June 30, 2010, this funding was closed to new applicants.
When will monies be added to the fund so that new applications can be processed?
The fund was set up as an act of legislation or law that required funding to be added after the fund is depleted below the $20,000,000.00 level and to continue to do so until 2021. Monies are scheduled to be added to the fund during the next financial year which begins in July of 2011. The amount of funding is not known. The NJDEP is also looking at amending the application process criteria, i.e., who is eligible for the leaking and non leaking tank grant. These changes are not known at the prresent time, but it is possible that income levels and financial asset limits will be lowered to ensure that the neediest of applicants have access to the grant.
*The Following has been taken from the NJDEP web site.
*IMPORTANT NOTICE - NJDEP PETROLEUM UNDERGROUND STORAGE TANK REMEDIATION,UPGRADE & CLOSURE FUND (UST FUND)
PLEASE BE ADVISED THAT EFFECTIVE MAY 3, 2011, NEW UST FUND APPLICATIONS WILL NOT BE REVIEWED OR PROCESSED DUE TO INSUFFICIENT FUNDS. New UST Fund applications will be date stamped at the time of receipt and held until such time as sufficient funding becomes available. At that time applications willbe reviewed and processed based on the order of receipt.
The Department of Environmental Protection is aware that contractors advertise that state funding is available and tank removal and remediation can be done at no cost to homeowners. Please be advised there has never been a guarantee of funding to any UST Fund applicant.
PLEASE NOTE THAT THIS DOES NOT AFFECT THE REVIEW OF SUPPLEMENTAL APPROVAL REQUESTS. If you have previously submitted an application that has been approved, any supplemental funding request for that application will be reviewed and processed until such time as available funding is exhausted.*
*Taken from the NJDEP web site.
The New Jersey Economic Development Authority (NJEDA) and the New Jersey Department of Environmental Protection (NJDEP) grants funds to eligible homeowners that proactively upgrade and close their underground storage tanks. The Petroleum Underground Storage Tank Fund (PUST) Program for Non-Leaking Residential tanks awards eligible applicants’ full or partial reimbursement of the costs of upgrading oil heating systems. Eligible applicants may be awarded full or partial reimbursement of the cost incurred from UST removal and AST installations. Eligible applicants may be reimbursed up to $2,100.00 to remove a UST and up to $4,100.00 when the removed UST is replaced with an AST. In the event that a grant is not awarded, many applicant may still qualify for a loan, which may be repaid over the course of up to ten years.
For properties that have oil tanks that leaked in New Jersey, grant funding is available up to $500,000.00 for eligible applicants.
Curren Environmental has a full time New Jersey Economic Development Authority (EDA) grant administrator that can assist you with both the residential Non-Leaking and Petroleum Underground Storage Tank (PUST) grant applications. Both applications are more commonly referred to as the New Jersey Oil Tank Grant Program or the NJ Oil tank Grant program. No matter what you call the program, our administrator will help you complete and file all the necessary forms so that you can be reimbursed for monies spent to remove your oil tank or to replace your oil tank with a new Aboveground Heating Oil Tank. Having completed these applications since the program was started in 2006 we offer the expertise in getting the application fully completed and formatted so the grant can be reviewed quickly and easily by both the NJDEP and the EDA. What this means to our clients is a smoother and quicker application process. We are not only experienced with completing the oil tank grant applications, but we are also licensed to perform oil tank removal and cleanups (remediation) from oil tank leaks.
If you have questions, we have answers and are happy to assist you. Call today and ask to speak to our grant administrator. Call 888-301-1050.