New Jersey GRANT ELIGIBILITY- NON-LEAKING TANKS

Residential: Taxable income of less than $250,000 and a net worth, exclusive of primary residence and
pension of less than $500,000.

Eligible Project Costs: Cost to remove the tank up to a maximum of $1,200. Does not include
the costs to remediate the site to meet residential soil remediation standards.

Cost to remove and replace the tank with an above-ground or underground
storage tank up to a maximum of $3,000. Applicant must make every
effort to replace the underground storage tank with an above-ground tank.

New Jersey Oil Tank Grant Eligibility– LEAKING TANKS

Applicant must have owned or operated the tanks as of December 1, 2002 or have inherited the property from a person who owned the regulated tank as of that date.

Business: Net worth less than $3,000,000 and can not qualify for a commercial loan.

Residential: Taxable income of less than $250,000 and a net worth, exclusive of primary residence and
pension of less than $500,000.

Eligible Project Costs: Reasonable costs for equipment, work or services required to effectuate a
remediation, upgrade or a closure up to 100% of project costs with a maximum of $500,000 or up to $1,000,000 if property is in Planning Area 1 or 2 or in the Highlands.

LOAN ELIGIBILITY – LEAKING TANKS

Eligible Project Costs: Up to $2,000,000 or up to $3,000,000 if there is a threat to drinking water or
site is in Planning Area 1 or 2 or in the Highlands.

Terms: Up to 10 years

Interest Rate: Interest Rate between 2% to Wall Street Journal Prime depending on
financial situation of applicant

Petroleum Underground Storage Tank (“PUST”) Program
NON-LEAKING RESIDENTIAL HEATING OIL TANKS

Effective August 2, 2006, the PUST Fund provides loans and grants to eligible applicants to help finance eligible project costs for the closure and replacement of a non-leaking residential underground storage tank(“UST”). Listed below are frequently asked questions and responses.

Am I an eligible applicant?

• Applicants with non-leaking underground residential heating oil tanks (applicant or operator
  must own the project site at time application is made with NJEDA) are eligible for financing for closure and replacement of the tank.
• Applicants with leaking underground residential heating oil tanks are also eligible for closure, upgrade and/or remediation, but need to make application first with the New Jersey Department of Environmental Protection(“NJDEP”) at www.nj.gov/dep/srp. Applicants must own or operate the project site at the time of application with the DEP. For more information of this program, a fact sheet can be found on the NJEDA website, www.njeda.com.

If I am an eligible applicant, what should I do next?

For applicants with non-leaking underground residential heating oil tanks, the contractor closing and/or replacing the UST needs to be certified by the NJDEP. A list of NJDEP certified contractors can be found on the NJEDA website, www.njeda.com. (if the UST is being replaced with an above ground storage tank(“AST”), the contractor installing the AST does not need to be NJDEP certified.) If the contractor has been certified (or if the UST is being replaced with an AST), please complete the application, financial assistance agreement, and disbursement form, also found on NJEDA’s website. Submit to the NJEDA along with the itemized list of attachments.

It is advisable to submit the application once the work has been completed. The closure or the closure and replacement of a non-leaking residential heating oil tank must have been completed after August 2, 2006 in order to be eligible for a grant or loan.

What are the limits of funding available from the PUST Fund?

Funding up to $1,200 may be awarded for the closure of non-leaking residential underground heating oil tanks. Funding up to $3,000 may be awarded for the closure and replacement of non-leaking underground residential heating oil tanks. Tanks should be replaced with an AST whenever possible or an UST if an AST is not feasible. The applicant is responsible for costs above these limits to close or close and replace a non-leaking underground residential heating oil tank.

What will the NJEDA require to determine eligibility for a grant award?

In order to determine the type of award, the following items will need to be included with the application:

1. Last 3 years Federal Income Tax Returns of the applicant
2. Completed Personal Financial Statement of the applicant (which can be found on the NJEDA website)
3. Non-refundable $250 application Fee made payable to the NJEDA, for residential tanks

How can I qualify for a grant award?

In order to qualify for a conditional hardship grant, applicants must meet the following criteria:

1. An annual taxable income of less than $250,000; and
2. New worth, exclusive of applicant’s primary residence and pension (401K, IRAs), of not more than $500,000; and
3. A determination of financial hardship which will be based on whether an applicant can reasonably be expected to repay, if the funding were to be awarded as a loan.

** A grant worksheet to help homeowners determine grant eligibility can be found on the NJEDA’s
website.

What happens if I do not qualify for a grant award?

If an nj oil tank grant cannot be awarded, the application will be forwarded to the NJEDA Credit Underwriting Division for loan eligibility review based on the EDA’s standard underwriting criteria.

Will there be a lien placed on my property?

If a loan is awarded, a lien will be placed on the project site in the amount of the entire loan and the loan must be repaid immediately upon sale. If a grant is awarded to an applicant and the project site is not the applicant’s residence, a lien will be placed on the project site in the amount of the entire grant for 5 years and must be repaid upon sale of the project site. The amount of the grant to be repaid is reduced by 25% each year.

How is the grant or loan approved?

Once the application for funding (new jersey oil tank grant or loan) is determined to be eligible by the NJEDA, the application is recommended for approval. If a grant is recommended, NJEDA Program Service staff can request internal approval, which approval is typically considered within 4 weeks of review of the application. If a loan is recommended, the application will be presented at NJEDA’s Board meeting for approval. The Board typically meets the 2nd Tuesday of each month at 10:00am at the NJEDA at 36 West State Street, Trenton, NJ.

What type of closing occurs for the grant and loan awards?

The NJEDA Lending Services Division is responsible for closing all grants and loans for the PUST Program.

Once a oil tank grant application receives approval, a Financial Assistance Agreement (“FAA”) will be signed by the NJEDA and forwarded to the applicant. The FAA is included in the original application package.

Once a loan application receives approval, a commitment letter will be forwarded to the applicant, which outlines the terms of the loan and requires a signature. The commitment letter is then returned to the NJEDA with the required commitment fee. Upon receipt of the signed commitment letter, a list will be forwarded to applicant of items required prior to closing and once completed, a closing date will be scheduled. A closing fee will be required at that time.

What is the amount of the fees on loan awards?

In addition to the $250 non-refundable application fee submitted with the application package, the NJEDA charges a non-refundable $500 commitment fee or ½% of the loan (whichever is greater). The NJEDA charges a closing fee of $500 or ½% of the loan (whichever is greater).

When should I expect to receive a disbursement?

The NJEDA Credit Compliance Division is responsible for disbursements and post closing activities for the PUST Program. The application package will include a disbursement form.

If the disbursement form is executed by the applicant and returned with paid invoice(s) and cancelled check(s), the disbursement will be released in the total amount of such invoices and checks, capped at the amount of the award, when the grant or loan is closed, in the form of a one-party check made payable to the applicant.

If the disbursement form is executed by the applicant and returned with invoice(s) that has not yet been paid, a disbursement will be released in the total amount of such invoices, capped at the amount of the award, when the grant or loan is closed, in the form of a two-party check made payable to the applicant and the contractor(s).

If there a re two contractors involved with the closure and replacement of the non-leaking residential underground storage tank, please complete a disbursement form for the work done by each contractor and submit the appropriate documentation for each.

For more Information on New Jersey Oil Tank Grants
Contact Venture Tank at 856-629-8886

All Forms are Available on the NJEDA forms page