Human Resources, Labour and Employment
Transportation and Works
Labrador and Aboriginal Affairs
October 16, 2009Loan Program
Established to Assist Low-Income
Homeowners in Registering Oil Tanks
The Provincial Government today announced a new loan
program to assist low-income homeowners throughout the
province register their oil storage tank systems.
Administered by Newfoundland Labrador Housing
(Housing), the intent of the Oil Tank Replacement
Program is to provide assistance to
low-income homeowners (households with a total annual
income of less than $22,397) to allow them to have their
oil tanks registered in accordance with the Heating Oil
Storage Tank System (HOST) regulations. HOST regulations
were introduced in 2002 in consultation with
industry and the general public, following a record
number of domestic heating oil spills in 2001.
"The Williams Government understands that low-income
homeowners do not have ready access to the financial
resources to provide for the cost of replacing their oil
tanks," said the Honourable Susan Sullivan, Minister of
Human Resources, Labour and Employment. "Many low-income
families are not able to borrow the required funds from
banks or arrange the financing through private
companies. This new program provides an alternative for
these homeowners to finance the cost of registering
their oil tanks and repay this amount with limited
financial burden."
Loans will be available up to a maximum of $1,200 for
the island portion of the province and $1,500 for
Labrador per household. These loans will have an
affordable monthly repayment amount of $25.
"At the end of the day, this government�s main
concern is for the well-being and safety of our
residents," said the Honourable Dianne Whalen, acting
Minister of Transportation and Works and Minister
Responsible for Newfoundland Labrador Housing.
"Non-compliant tanks are dangerous to homes and the
families that reside within. It is imperative that oil
storage tanks are compliant with current regulations,
and the Provincial Government is pleased to assist those
in need through this new program."
July 31, 2009, was the deadline for homeowners to
register their oil storage tanks. At that time, the
Provincial Government advised that it would be willing
to work with homeowners who still have unregistered
systems but had made arrangements to have their systems
registered. This variance under Section 17.(2)(a) of the
Environmental Protection Act allows oil companies
to deliver oil to existing unregistered systems provided
there are arrangements in place to have the systems
registered by May 2010.
For homeowners in the communities of Nain, Hopedale,
Postville, Makkovik and Rigolet on the north coast of
Labrador, the deadline for oil tank registration has
been extended to the end of the 2010 shipping season.
"Residents of remote north coast communities in
Labrador face extreme geographic and climate challenges
in accessing both replacement tanks and inspection
services," said the Honourable Patty Pottle, Minister of
Aboriginal Affairs and MHA for Torngat Mountains. "This
extension will assist in their efforts to make the
necessary arrangements to complete the registration
process."
Since April 2002, more than 5700 low-income
homeowners across the province have received a $300
grant from the Department of Finance to offset the cost
of replacement of fuel oil tanks. Newfoundland Labrador
Housing, as part of the application process for the new
Oil Tank Replacement Program, will obtain the
homeowner�s consent to request the $300 grant from the
Department of Finance to use toward the total
replacement cost with the difference financed through
the loan program. The combination of the $300 grant and
the $1,200 loan ($1,500 in Labrador) should cover the
cost of the oil tank replacement.
"The Provincial Government has been assisting low
income homeowners pay for oil storage tank replacement
for some time," said Minister Sullivan. "The loan
program announced today is an additional alternative for
those homeowners who may have trouble securing financing
to cover the total cost of a new tank as well as
repaying that financing. With cold weather almost upon
us, I would recommend that anyone needing to avail of
this program contact Newfoundland Labrador Housing as
soon as possible."
For more information on this program, contact
Newfoundland Labrador Housing at
www.nlhc.nl.ca or call
709-724-3136, 724-3277 or toll-free 1-877-628-5670.
Information is also available at any regional Housing
office.
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Media contacts:
BACKGROUNDER
The Oil Tank Replacement Program
The OTRP is a Provincial Government loan program that
offers loans to assist low-income households replace
their substandard residential oil heating tanks as
required by law.
By May 31, 2010, all oil tanks must meet the industry
standards of the Heating Oil Storage Tank (HOST)
Regulations, 2002. However, because residents of Nain,
Hopedale, Postville, Makkovik and Rigolet on the north
coast of Labrador face extreme geographic and climate
challenges in accessing both replacement tanks and
inspection services, the deadline for oil tank
registration in these communities has been extended to
the end of the 2010 shipping season (approximately
November 2010).
Who is eligible?
Households with a total annual income of less than
$22,397 are eligible.
Proof of previous year�s income for applicant and
co-applicant must be enclosed with each application.
This information will be accepted in the form of a
Notice of Assessment (standard tax assessment from
Canada Revenue) for the applicant and co-applicant or
"Option C" (certified copy of an individual�s tax
return) - either of which can be obtained by contacting
Canada Revenue Agency at 1-800-959-8281
How much assistance is available?
Eligible households may qualify for a loan of up to
$1,200 on the island, and up to $1,500 in Labrador.
Qualified households will also be eligible for a $300
grant through the Department of Finance that will be
applied against the total cost of tank replacement.
What is the repayment rate?
The loan repayment rate is $25 per month.
What is the law?
The HOST Regulations came into effect in 2002. After
July 1, 2009, it became illegal for homeowners to
operate unregistered tanks and for oil companies to
refuel them. At that time, the Provincial Government
advised that it would be willing to work with homeowners
who still have unregistered systems but had made
arrangements to have their systems registered. This
variance under Section 17.(2)(a) of the Environmental
Protection Act allows oil companies to deliver oil
to existing unregistered systems provided there are
arrangements in place to have the systems registered by
May 2010.
A registered tank will have a brass tag riveted on to
its vent pipe and the owner will be provided with a
registration certificate.
How do I apply?
Application must be made to Newfoundland Labrador
Housing. Applications will be processed in the order
that they are received. Application forms are available
online at www.nlhc.nl.ca, or at any regional Housing
office. Inquiries may be made directly to:
709-724-3136
709-724-3277
Toll-free 1-877-628-5670
Who can replace oil tanks?
For more information contact your local oil delivery
server for a list of licensed inspectors.
Visit
//www.env.gov.nl.ca/env/Env/PollPrev/petroleum_storage/cwli.pdf
or telephone: 709-729-2664.
2009 10 16 9:15 a.m.