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If you were told that the state of New Jersey had a
program that actually helped citizens pay for
compliance with state mandated regulations, stimulated
the economy and created jobs in New Jersey, would you
believe it? Come on, don’t be so cynical.
It’s called the NJDEP Underground Storage Tank
Remediation, Upgrade and Closure Fund, more
affectionately known as the UST Fund. A Robin Hood-esque
endeavor that collected money from a more prosperous
time and now can hand it out when it is needed most.
The program is being financed by a fund at the NJEDA
that collected a fraction of a percentage point of
corporate income tax. There is an estimated $100
million dollars in the account at this time. For the
time being the funding has been diverted to other
needs but will resume when the balance falls to $20
million. The fund has been around since1997, but was
so woefully understaffed and ineffective that the
funding built up in the NJEDA coffer faster than it
could be utilized. The program has been headed up by
Mr. Frank Pinto at the NJDEP since 2003 and since then
he has been able to expand the staff and make the
program functional.
The program is a combined effort between the NJDEP and
the NJEDA. The program was always meant to fund the
remediation of leaking Underground Storage Tanks (USTs)
but was expanded in August 2006 to also reimburse the
removal cost to the owner or operator of an
underground oil tank even if the tank did not leak.
Another unlikely trait of a government program is that
it’s actually saving money by helping to prevent a
problem before it becomes more costly to remedy.
The UST Fund can help people with an annual taxable
income of less than $250,000 and a net worth of less
than $500,000 excluding their primary residence and
retirement savings. There are two components of the
fund, non-leaking underground oil tank reimbursement
grants and grants for remediation of soil and
groundwater caused by a discharge from USTs.
The non-leaking tank removal reimbursement grant
program is administered directly by the NJEDA and
reimburses an owner or operator of a tank up to $1,200
for the removal of their non leaking underground
heating oil tank and up $3,000 for the removal and
replacement of the tank with a new aboveground tank.
Applicants actually do receive their checks within 4-6
weeks of submitting the necessary documentation, which
is truly amazing.
When a tank does leak, the UST Fund will pay for those
costs to remediate the soil and groundwater
contamination that are not covered by insurance. The
process takes quite a bit longer since multiple
offices are involved and includes many checks and
balances. The grants are also available for second
homes, rental properties, commercial sites,
non-profits and in certain cases estate owned sites.
There are also situations when the NJEDA will offer a
low interest loan if the applicant does not qualify
for an outright grant. When the site is not a primary
residence, the NJEDA will place a lien on the property
for 5 years with the balance declining 25% after the
second year and annually thereafter. This is meant to
avoid short term real estate investors from taking
advantage of the system, thereby preserving the money
for those who rightfully qualify.
Since the homeowners insurance industry started to
exclude coverage of oil tank leaks a few years ago,
this program is now even more important than ever to
the environmental and economic health of New Jersey.
Without it some homeowners would no be able to
remediate their properties and therefore not be able
to sell their homes. This program is not restricted
to heating oil tanks; which means it could help those
abandoned gas station and commercial sites around your
city or town.
The residents and business owners of your municipality
can truly benefit from this program, pass it on. More
information is available at
www.newtanksnj.org and
www.njeda.com. The NJDEP UST Fund is available at
609-777-0101.
Hot Topics, Cool Mayors, an up-close and personal
interview with two NJ mayors from each side of the
political aisle, will return in the Summer 2008 issue
of the NJCM Quarterly Magazine. If you’re a New
Jersey mayor, and an active member of the NJCM, and
would like to be considered for this piece, please
send an email to
amy@capitolconcepts.com. It’s a great way to
share news about your community with our readers, and
also allows them to get to know you a bit better!
Mr. Salvemini is a lifelong resident of
New Jersey and has been involved in the environmental
contracting field for almost 20 years. He is the
President and co-founder of Meridian Environmental
Services, Inc., a full service environmental
contracting and consulting firm with offices in Toms
River and Medford. He can be reached at
asalvemini@meridianenvironmental.com. They
specialize in the removal of underground storage tanks
and the remediation of soil and groundwater throughout
the state. You can visit them at
www.meridianenvironmental.com. |
