Is It Time To Replace Your Underground Tank?
On June 28, 2006, the New Jersey Legislature passed a bill that made significant changes to the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. Governor Corzine signed the bill and it became law on August 2, 2006.
The UST Fund was designed to help oil heat consumers with environmental clean up costs resulting from a leaking underground storage tank. Up until the change, a grant from this fund could only be obtained in the event of a leak that required a clean up under applicable Department of Environmental Protection Rules and Regulations. In addition to requiring a leak, a homeowner had to show that their taxable income was less than $200,000 per year and their net worth, not including equity in their principal residence and pension or retirement plan funds, was less than $200,000.
The new legislation makes three significant changes to the law as follows:
- Up to $3,000 is available to cover the costs of removing an underground tank and installing a replacement tank on a prospective basis before the tank leaks.
- The taxable income requirement has been increased to $250,000 per year.
- The net worth requirement, excluding equity in the principal residence and any pension or retirement plan funds, has increased to $500,000.
If the tank is removed and a leak is found, you can still obtain a grant to cover the cost of the clean up provided you meet the income and net worth requirements. Instructions and an application can be downloaded from the Internet at www.njeda.com or obtained by calling the Economic Development Authority at 609-292-1800.
The fund currently contains more than $90 million. We anticipate that with these changes there will be a large number of grant applications filed with the state. Therefore, if you are interested in taking advantage of this opportunity to upgrade your tank, we encourage you to file as soon as possible, while funds are still available.
If you have any questions about the new legislation or the UST Fund, call us at 973-383-1421.
