Commercial/Regulated Underground Storage Tanks
Pennsylvania Regulations
Brownfields
Day Care Licensing and No Further Action Letters From the NJDEP
UST Leaks and Insurance Coverage
COMMERCIAL/REGULATED UNDERGROUND
STORAGE TANKS
Can the same person who removes my tank collect post-excavation soil samples?
Maybe. In accordance with recent rule changes, a licensed subsurface evaluator must complete the site assessment and soil sampling after the removal of an unregulated or regulated UST. So if the individual who removed the tank is certified in closure and subsurface, he or she can collect the samples.
I have a previously unregistered tank that I want to remove. What are the fees associated with registering the tank and applying for closure approval?
Currently the registration fee for a previously unregistered tank is $1,400. This fee is subject to change on a yearly basis. You can apply online for closure approval of a regulated tank at no cost.
What are the fees for submittal of a tank-closure report whether remediation was completed or not?
The updated NJDEP fees for the submittal of an initial Site Investigation Report are $750. The fees for submitting an initial Remedial Investigation Report are $1,500.
Is there funding available through the state of New Jersey to assist me in the closure of my UST system and/or site remediation?
Yes, the NJDEP has established the Petroleum Underground Storage Tank Remediation, Upgrade and Closure Fund. There are different programs available depending on your financial status and whether the tank is located at your primary residence or place of business. You can obtain more information by visiting www.nj.gov/dep/srp/finance/ustfund or the NJDEP Web site.
How do I know if my tank is regulated or unregulated?
The following tanks are exempt from the UST rules:
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Farm or residential tanks of 1,100 gallons or less used to store motor fuels
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Commercial tanks of 2,000 gallons or less used to store heating oil for on-site consumption
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Residential tanks of any capacity used to store heating oil for on-site consumption
All other tanks are regulated and must follow the UST rules. For more information on the applicability of UST rules, go to www.nj.gov/dep/srp/regs/ust/ust_01.pdf.
PENNSYLVANIA REGULATIONS
What is USTIF?
USTIF is a Pennsylvania-based insurance fund. Anyone who owns or operates a UST that does not contain heating oil is required to participate. Distributors of products stored in the underground storage tanks collect a per-gallon fee upon delivery, which in turn, is paid to the state. Owners/operators of USTs can make claims to USTIF to cover costs incurred while cleaning contamination from leaking tanks. To be eligible for claim submission, the owner/operator must have paid all fees to the fund; the UST must be registered with the PADEP; the leak had to occur after February 1, 1994; and a claim must be filed within 60 days of knowledge of the leak.
What is the Uniform Environmental Covenants Act (UECA)?
Established in December of 2007, the UECA provides a standard process for creating, documenting, and ensuring the enforceability of activity and use limitations on contaminated sites in Pennsylvania. Under the UECA, an environmental covenant is required whenever an engineering or institutional control is used to demonstrate attainment of an ACT 2 remediation standard. For example, if an asphalt parking area is being used to cap contaminated material to satisfy a requirement of ACT 2, then an environmental covenant would be required.
BROWNFIELDS
How do I get started in brownfields development?
If you are getting started in the business of developing contaminated sites tagged as brownfield sites in New Jersey—or if you just need a refresher course—the New Jersey Department of Environmental Protection (NJDEP) and other state agency Web sites are excellent resources. Here are a few highlights:
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New Jersey Brownfields Redevelopment Resource Kit is a one-stop look at the brownfield process and players in
- If you are a municipal entity or a non-profit organization, you are eligible for funding in the form of grants through the Hazardous Discharge Site Remediation Fund (HDSRF). The HDSRF funding covers 100 percent of the cost to complete the preliminary assessment, site investigation, and remedial investigation. The application package is available at www.nj.gov/dep/srp/finance/hdsrf.
DAYCARE LICENSING AND NO FURTHER ACTION LETTERS
FROM THE NJDEP
What are the regulations on daycare licensing and NFA letters?
Effective January 1, 2007, no new or renewed licenses will be issued to any center located in the same building or structure as a dry cleaner or nail salon, unless the center operator provides indoor-air sampling results proving there is no impact on the childcare center. Effective June 1, 2007, applicants for a new or renewed license (or any currently licensed center requested at the state’s discretion) must obtain a No Further Action (NFA) letter from the DEP. In order to obtain an NFA, a preliminary assessment (PA) must be completed in accordance with the technical requirements for site remediation (NJAC 7:26E) and submitted to NJDEP for review. The estimated fee for a daycare center PA is $2,500, plus the NJDEP charges a one-time review fee of $375. A $1,500 one-time grant is available to all daycare centers after an NFA is received.
UST LEAKS AND INSURANCE COVERAGE
Will my insurance company cover me for a leak from my underground storage tank?
Coverage of remediation costs depends on the individual’s homeowner’s insurance policy. Fees are typically covered under the policy’s third-party liability coverage (primary residence), however, third-party impact will have had to occur, i.e. groundwater impact above the NJDEP groundwater quality standards, soil impact of your neighbor’s property above the applicable soil remediation standards, etc.
What is the difference between first party and third party?
In the insurance industry, the person obtaining the insurance policy is the first party. The insurance company serves as the second party. The third party refers to someone who may be indirectly involved but is not a principal party.
What options do I have if my insurance company doesn’t cover the costs of cleanup?
In the event your insurance carrier does not provide coverage, the client has the option to either pay out of pocket or apply for a grant. For more information on these types of grants, go to www.nj.gov/dep/grantandloanprograms.
Can I purchase coverage for my oil tank?
Your oil dealer offers tank-protection service agreements. Coverage typically costs a few hundred dollars a month and can be obtained for up to $100,000 in coverage. Contact your oil dealer for more information. In addition, most homeowner’s insurance policies started excluding third-party liability coverage and now offer that coverage for an additional fee. Be sure to review your homeowner’s policy for specific details.
How long will it take to complete the remediation and receive the NFA?
Timeframes vary from project to project and are dependent on the affected media (soil and/or groundwater) and the extent of the release. On certain projects, samples need to be collected and analyzed and the data reviewed, which could possibly lead to additional sampling events. On average, a soil-only cleanup takes one to two months to receive No Further Action from the NJDEP under the new UHOT Program. Remediation involving groundwater typically takes three months to a year to receive No Further Action from the NJDEP.
I’m in the process of selling my home. Will the remediation delay the closing?
That depends on the buyer and the buyer’s attorney, insurance company, and mortgage company. BLES has been involved in both scenarios, where the closing proceeded on schedule or was delayed. Of the closings that proceed on schedule, the seller typically sets up an escrow account. Please discuss your specific situation with your attorney.