Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund

The Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund is administered by the State of New Jersey Department of Environmental Protection. The fund was established under the Underground Storage Tank Finance Act to provide financial assistance for environmental remediation and closure of petroleum underground storage tanks. Funding is supported through a dedicated portion of the New Jersey Corporate Business Tax, which contributes approximately 9 to 10 million dollars annually depending on collections. The program reflects the state’s commitment to addressing environmental contamination risks associated with underground petroleum storage systems. The primary purpose of the fund is to assist eligible owners and operators with costs associated with the closure and remediation of petroleum underground storage tanks. This includes both residential and other unregulated tanks, as well as regulated tanks under state oversight. The program is designed to mitigate environmental hazards such as soil and groundwater contamination caused by leaking or improperly maintained tanks. Funding may be used for activities directly related to tank closure, cleanup of discharged petroleum, and associated remediation work necessary to restore affected sites. Financial assistance is provided in the form of both grants and loans, depending on applicant type and financial qualifications. Public entities are eligible only for interest free loans. Commercial entities may qualify for loans if they own fewer than ten tanks in New Jersey, maintain a net worth below two million dollars, and demonstrate an inability to secure commercial financing. Grant eligibility for commercial applicants is further restricted by financial thresholds, including taxable income not exceeding two hundred fifty thousand dollars and a net worth not exceeding five hundred thousand dollars, excluding primary residence and pension. Additional eligible applicants include nonprofit organizations, independent institutions of higher education, and certain emergency service organizations, as defined by statute. Award amounts vary based on project type and location. Grant funding may reach up to five hundred thousand dollars per site, or up to one million dollars per site if the project is located in designated metropolitan or suburban planning areas or recognized centers under the State Planning Act. Loan amounts may extend up to two million dollars per site, or up to three million dollars in those same designated areas. These funding limits are intended to accommodate the often significant costs associated with environmental remediation and ensure adequate financial support for qualifying projects. The application process requires submission through the Department of Environmental Protection’s designated portal or via materials obtained from the Fund Management Section. While applications for certain categories continue to be accepted, program rules have evolved over time due to funding constraints. New applications for regulated tanks were discontinued as of July 1, 2010, except in cases where a regulated tank is newly discovered and reported within eighteen months of discovery. Applications for unregulated leaking tanks, including residential heating oil tanks, are accepted but may experience delays in review due to funding availability, with current processing timelines indicating approximately a one year wait. The program does not operate on a traditional fixed annual deadline structure. Instead, eligibility to apply depends on specific conditions such as discovery timelines for regulated tanks or funding availability for unregulated tank applications. Certain application categories are no longer accepted, particularly for non leaking unregulated tanks due to insufficient funds. As a result, the opportunity functions as a conditional and partially rolling program rather than a regularly recurring funding cycle. Applicants seeking additional information or application materials may contact the program via the official email address or telephone number provided by the Department of Environmental Protection. There are no explicitly stated evaluation criteria, award timelines, or performance periods in the available materials, though these may be governed by statutory requirements and internal review procedures. Overall, the fund serves as a critical mechanism for environmental protection and remediation support within the state of New Jersey.