OFFICIAL SITE OF THE STATE OF NEW JERSEY

UST Fund – Frequently Asked Questions (FAQs)
Posted 16 June 2010

1. Who do I contact in order to receive an application?

   For all leaking UST Fund applications, contact the New Jersey Department of Environmental Protection (NJDEP) at 609-984-2076 or visit our Web site at The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund.

   For all Non-Leaking UST Fund applications contact the New Jersey Economic Development Authority (NJEDA) at 609-777-4898 or visit their Web site at www.NJEDA.com

2. What are the criteria for grant eligibility?
   1. Net worth of no more than $500,000, not including the value of the primary residence and any employer-contributed pension or any traditional retirement accounts such as 401Ks and IRAs.
   2. Annual net taxable income of no more than $250,000; and
   3. NJEDA conditional hardship test which compares income to expenditures. Based on these three criteria, NJEDA determines whether a loan, grant, or loan/grant combination will be offered.
3. Can I get pre-approved for the removal of a non-leaking UST?

   Yes, the NJEDA will pre-approve applicants, for the removal of a non-leaking UST. For more information regarding preapproval, please contact the NJEDA at 609-777-4898 or you can email them at tanks@NJEDA.com.

4. How long will it take to process my Leaking UST Fund application?

   The current processing time is approximately 120 days for initial NJDEP review.

5. Can I apply for a grant if I am abandoning my tank in place?

   An applicant of a residential unregulated tank may abandon their tank in place if allowed by local ordinances and building codes; however a confirmatory soil sample must be taken from directly beneath the tank. If your tank has been confirmed to be leaking, the tank will most likely need to be removed in order to facilitate the remediation process.

6. What is the definition of an Underground Storage Tank (UST)?

   Means any one or combination of tanks, including appurtenant pipes, lines, fixtures, and other related equipment, used to contain an accumulation of hazardous substances, hazardous wastes or pollutants, the volume of which, including the volume of the appurtenant pipes, lines, fixtures and other related equipment, is 10 percent or more beneath the surface of the ground.

7. Would a tank in my basement be considered an Underground Storage Tank?

   If the tank is sitting on the actual floor of the basement, it would be considered an Aboveground Storage Tank.

8. Can I apply for an Aboveground Storage Tank?

   No, the UST Fund is strictly for Underground Storage Tanks.

9. How do I know if a contractor is certified to perform work on my property?

   Please visit the UST Fund Web site at The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund and click on the link for “Underground Storage Tank Reports”. When the page loads, click on the link for “NJDEP Certified UST Firms”.

10. I need more information regarding cleanup questions?

    You can direct them to the Duty Officer at the Responsible Party Remediation Element, 609-584-4150: Southern or 973-631-6401: Northern.

11. What should I do as soon as a discharge is detected?

    You should call 1-877- WARN DEP (1-877-927-6337) where an incident number is assigned to the homeowner or the contactor calling in.

12. My tank is not leaking, are there still grants available?

    Yes, however the DEP only handles “Leaking” underground storage tanks. The NJEDA handles all “Non-Leaking” residential heating oil underground storage tanks grants. The NJEDA can be contacted at 609-777-4898 or tanks@NJEDA.com or www.njeda.com.

13. My tank does not contain petroleum; can I still apply for a grant?

    NO, the NJDEP and NJEDA UST Fund program is only for “Leaking” and “Non-Leaking” petroleum product underground tanks. Furthermore, the NJEDA only accepts “Non-Leaking” applications for residential heating oil tanks.

14. When must a homeowner doing work on their primary residence apply?

    By statute, a homeowner doing work at their primary residence can apply at any point before, during or after the remediation.

15. When must I apply for funding if the property is not my primary residence?

    With secondary/investment properties, as well as commercial properties, the applicant must submit their application immediately after the tank has been confirmed to be leaking. Otherwise all work-completed prior to the NJDEP’s receipt of the application is not eligible for funding. However, if the applicant has not paid their contractor for these costs, the applicant is eligible for reimbursement of these costs.

16. When must a 501(c)(3) non-profit or incorporated fire, ambulance, first aid, emergency or rescue company apply for funding?

    The applicant must submit their application immediately after the tank has been confirmed to be leaking. Otherwise all work-completed prior to the NJDEP’s receipt of the application is not eligible for funding. However, if the applicant has not paid their contractor for these costs, the applicant is eligible for reimbursement of these costs. The exceptions to this are applications for unregulated petroleum underground storage tanks that contain heating oil for onsite consumption. In these cases, applicants may apply at any point before, during or after the remediation, as long as the remediation took place after October 1^st, 2009.

17. I received a “DEP Oversight Bill” can I submit this with my grant application?

    DEP Oversight costs are for the time spent by NJDEP case managers for review of project information regarding tank upgrade, closure and remediation costs. These costs are not eligible for reimbursement under the Grant program. For further questions regarding oversight bills please contact the Direct Billing Unit at 609-633-0701.

18. What are the eligible project costs for reimbursement consideration?

    ELIGIBLE PROJECT COSTS

    • All reasonable costs for equipment, work and services associated with the minimal effective system to remove/close a leaking petroleum underground storage tank.
    • Replacement of a leaking homeowner heating oil underground storage tank with an equivalent above-ground storage tank system.
    • Reasonable and necessary consulting, contracting and engineering costs.
    • Limited legal fees incurred directly related to remediation of an environmental discharge (e.g., obtaining necessary offsite access) as determined by theNJDEP.
    • The reimbursement of costs incurred by NJDEP’s Emergency Response contractors during an Emergency Response action related to a discharge from a petroleum underground storage tank used to store heating oil for onsite consumption in a residential property, as long as that Emergency Response action took place after October 1^st, 2009. (Note – NJDEP Emergency Response administrative costs are not eligible)
    • Site restoration costs are limited to the actual area of the remediation of the leaking underground storage tank. Eligible costs for certain site restoration categories are capped at $5,000.00 each. These categories include, but are not limited to:
      1. Landscaping – Includes lawn restoration, bushes, shrubs, trees, flower beds, edging, mulch, etc. Note that replacement of plantings will not necessarily be with mature plants.
      2. Hardscaping – Includes asphalt and concrete driveways, pavers, brick or concrete walkways, patios, and decorative walls of any construction, as well as loose stone used for decorative purposes.
      3. Decking costs – Includes the cost to dismantle, remove and replace a portion or the entirety of a deck in order to effectuate a remediation.
      4. Pool costs – Includes the cost to dismantle, remove and replace a portion or the entirety of a swimming pool in order to effectuate a remediation.

    Applicant is responsible for obtaining a minimum of three (3) price quotes for any restoration work. In addition, photographs of the conditions prior to, during, and after the remediation must be submitted with any request for restoration costs.

    INELIGIBLE PROJECT COSTS

    • Costs related to contaminants other than petroleum products.
    • Costs covered by insurance claims or tank service agreements.
    • NJEDA application and NJDEP oversight fees.
    • All costs associated with a discharge from above-ground storage tanks.
    • Costs to convert to other fuels, such as natural gas or propane.
    • Remedial activities that do not comply with the NJDEP Technical Rules for Site Remediation, N.J.A.C.7:26E.
    • Applicant’s time spent in planning, administering or supervising the remediation.
    • Preparation of the UST Fund application and administration of the funds.
    • Legal fees/costs not directly associated with remediation as determined by the NJDEP.
    • The installation of a new underground storage tank unless the installation of an above-ground storage tank is not feasible (e.g. local building code or homeowner association rules prohibit the installation of an above-ground storage tank.)
    • The abandonment in place of a leaking tank unless a licensed civil engineer determines that the removal of the UST may weaken or damage the structure of the house.
    • Restoration costs due to contractor negligence.
    • Reimbursement of the costs to repair or replace areas broken up or damaged due to excavators, dump trucks or other equipment not directly related to the remediation. Examples are broken driveways, sidewalks, rutted lawns.
    • Upgrades are not covered – the UST Fund will only reimburse for repair or replacement of what existed prior to the remediation.
    • In general, the UST Fund retains the right to cap or deny other categories of restoration costs that are not directly related to the remedial activities or structural integrity of the home in question.
19. Who can apply for the grant/loan program?

    Owners, operators, businesses, homeowners, renters, tax-exempt, non-profit organizations with less than 100 paid employees, independent institutions of higher education, public entities, and duly incorporated volunteer fire, ambulance, first aid, emergency or rescue companies.

20. What is the “Cost Guide”?

    The Cost Guide is utilized by the NJDEP UST Fund Coordinators when reviewing costs proposals submitted with applications to the UST Fund. “Please refer to Cost Guide January 1st, 2010 for more information.”

21. Do I need to submit a detailed cost estimate and/ or final contractor/ sub contractor invoices with my Project Summary Sheet?

    Yes. The Project Summary Sheet only helps expedite the review of all UST Fund applications. Contractors are still required by the Technical Requirements for Site Remediation to submit a detailed Scope of Work or Cost Estimate on the contractors own letterhead. Failure to submit the Scope of Work or Cost Estimate will result in the application being considered as incomplete.

22. What happens after the UST Fund Program sends me a recommendation award letter?

    After the applicant has received this letter, the NJDEP will forward eligible applications to the NJEDA. The applicant will be contacted by the NJEDA for the application fee and necessary financial information needed to complete the financial review. This information is required to determine the applicant’s eligibility for financial assistance in the form of a loan, grant or loan/grant combination.

23. What type of insurance documentation is required?

    All applicants must file written notices of claim against any and all insurance policies ever held on the property. Each written notice of claim must name the UST Fund, State of New Jersey, as a beneficiary of the claim(s) to the extent of an award of Financial Assistance is made from the UST Fund. Proof that the notice(s) of claim(s) were received by the insurance company must be submitted to the UST Fund. Any correspondence from the insurance company regarding denial or partial coverage must be provided. Responses of non-coverage from brokers/agents are not acceptable.

24. What if I plan to sell my property during the remediation?

    If during the course of remediation there is a transfer of property ownership, the applicant (seller) and the prospective purchaser must enter into a written agreement, which is signed by both parties, states that the seller will remain as the financially responsible party for the remediation as well as maintaining responsibility for performing the remediation until a No Further Action letter is issued by the NJDEP. If such an agreement is executed, the applicant (seller) can maintain UST Fund eligibility after transfer of the property in question.

25. Am I required to submit the application fee and financials with the UST Fund application?

    No, this information will be requested by the NJEDA at a later date.

26. How will I know the NJDEP received my application?

    A letter of acknowledgement will be sent to the applicant and any listed contacts.

27. How do I know if my tank is leaking?
    1. The removed UST had holes, corrosion, cracks or scaling in the tank.
    2. The removed UST piping has breaks, loose fittings or holes used in connection with the tank.

    Evidence indicating that the tank leaked, such as photographs, contractor report or local inspector report, must be submitted with the application.

    **Tank tightness tests and pre-removal soil sampling are not acceptable ways of proving a UST has leaked and are not eligible for reimbursement**.

28. Is there a deadline for submitting Regulated UST Fund applications?

    Yes, June 30th, 2010. All Regulated UST Fund applications must be received by the NJDEP, by this date to be considered for funding.

29. Is there a deadline for submitting Unregulated (Home Heating Oil Tank) UST Fund applications?

    No.

30. Who should I contact for questions regarding financial eligibility or financial documents received from NJEDA?

    The NJEDA at 609-777-4898 or tanks@NJEDA.com

31. Will the NJDEP pay my contractor directly?

    The NJDEP authorizes the NJEDA to disburse funding as appropriate. If the application provides proof of payment, in the form of canceled checks to the contractor, the NJDEP will authorize the NJEDA to issue a disbursement check directly to the applicant. Otherwise, reimbursement checks are issued as a two-party check, made payable to the applicant and the contractor.

32. What is the difference between an unregulated and a regulated UST?

    Applicability and Summary of Regulated Underground Storage Tanks in New Jersey
    Substance Stored/ Used	Tank Capacity	Applicable Law(s)	Comments/Explanations
    Heating oil for sale, distribution or commercial use	any amount	Federal and state UST laws	Fuel oil dealers, and others who sell, distribute, or use heating oil in a commercial process, must comply.
    Heating oil for non-residential heating	more than 2,000 gallons	State UST law	Facilities with aggregate UST capacities of 2,000 gallons or less are exempt from the state UST law. Heating oil tanks of any size used for residential heating are also exempt.
    Motor fuels for non-residential use or sale	any amount	Federal and state UST law	Includes petroleum products used in the operation of a motor: gasoline, diesel, aviation, gasohol, etc.
    Motor fuels for farm or residential use	more than 1,100 gallons	Federal and state UST law	USTs located at a residence but used for business purposes are required to comply. Owners of farm USTs should contact the DEP for special applicability information.
    Waste oil	any amount	Federal and state UST laws	Waste oil includes used automotive crankcase oil and other used lubricating oils.