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Pennsylvania's Heating Oil Tank Cleanup Reimbursement Program

Short answer: If a buried home heating oil tank (3,000 gallons or less) leaked, PA DEP may repay part of the cleanup. You pay the first $1,000 of eligible costs, and DEP reimburses the rest up to $4,000 per tank, while program funds last1,2. Aboveground and basement tanks don't qualify2. Allentown Tanks is not part of this program and can't apply for you; this page summarizes DEP's own description.

Who is eligible

All of these must be true2:

  • You are or were the tank owner.
  • The tank was underground (buried).
  • It held 3,000 gallons or less.
  • It stored fuel used for heating on the premises.
  • Heating oil was released from the tank, its lines, or a spill or overfill caused by a tank-system failure.
  • The release happened, or was discovered, on or after January 30, 1998.
  • Environmental cleanup is complete or in progress.

Not eligible

  • Aboveground tanks, including tanks on or above a basement or cellar floor2.
  • Removing a tank that didn't leak2.
  • Installing a new tank, repairing or replacing the heating system, or replacing fuel2.
  • Costs covered by private insurance or another assistance program2.

Report a release

DEP recommends reporting all heating oil spills to the local DEP office; for an environmental emergency, DEP's line is 1-800-541-20502.

What can be covered

DEP's list includes2:

  • removing a leaking tank, but only if cleanup work is also done
  • excavating contaminated soil
  • transporting and disposing of waste
  • finding the extent of contamination
  • groundwater work, including well-water treatment
  • backfill and restoration
  • closure and cleanup reports
  • related permit and inspection fees
  • sampling and analysis

Money and limits

  • $1,000 deductible, then up to $4,000 reimbursed, per tank1,2.
  • Up to $750,000 a year is available through December 31, 2027. DEP processes complete applications first come, first served each fiscal year (July 1–June 30) and doesn't guarantee funds2.
  • Reimbursements are reported to the IRS and may be taxable2.

How to apply

Apply online through the Pennsylvania Electronic Single Application system. Upload the contractors' original itemized invoices for completed work (estimates are not accepted) and proof of payment, such as both sides of a canceled check or a paid invoice2. DEP's Storage Tank Cleanup Program can answer questions; contact details are on the DEP page2.

Not the same as USTIF coverage

The Underground Storage Tank Indemnification Fund's separate voluntary heating oil program covers opted-in underground heating oil tanks of 3,000 gallons or more, with a $5,000 per-tank deductible and a $1.5 million limit; coverage starts only once the tank has been opted in3. Typical home tanks fall under the DEP reimbursement program above instead.

Related

Lehigh Valley towns with the most oil-heated homes

Municipalities we cover where at least 30% of occupied homes are heated mainly by fuel oil or kerosene, estimated by the Census4:

TownFuel-oil shareHomes (± margin of error)
Upper Mount Bethel Township55.9%1,475 ± 243
Lower Mount Bethel Township53.5%634 ± 117
Washington Township (Northampton)53.2%1,030 ± 207
Lehigh Township47.0%2,021 ± 304
Lower Milford Township42.4%616 ± 132
Plainfield Township41.6%1,045 ± 282
Coopersburg40.3%442 ± 96
Wind Gap39.9%603 ± 142
Bushkill Township39.5%1,255 ± 210
Pen Argyl39.2%545 ± 184
Washington Township (Lehigh)37.5%1,020 ± 207
North Whitehall Township33.6%2,017 ± 298
Lynn Township32.3%551 ± 135
Moore Township32.2%1,113 ± 208
Bangor31.7%630 ± 197
Williams Township31.2%818 ± 215
Nazareth30.3%908 ± 208

For comparison: Allentown 14.1%, Easton 8.6%4. These are 5-year survey estimates; small towns have wide margins of error.

FAQ

Does PA DEP require me to remove my home heating oil tank?

No. Tanks storing heating oil burned on the premises are excluded from the state program, and DEP says home heating oil tanks are not regulated5,6. Owners usually act because of a sale, a lender, an insurer, or leak risk.

Get a free quote

Tell us where the tank is (basement, side yard, buried, or unknown) and whether you're buying, selling, or refinancing. Allentown Tanks will connect you with a qualified local tank contractor. (215) 434-1322 · Request a quote

Sources

  1. PA DEP Storage Tanks Financial Assistance (Underground Heating Oil Tank Cleanup Reimbursement Program)
  2. PA DEP, Apply for Oil Tank Cleanup Reimbursement
  3. USTIF Heating Oil Tank Program (voluntary, tanks of 3,000 gallons or more)
  4. Census ACS 2020–2024 5-year Table B25040 House Heating Fuel, county subdivision geography (table-based summary file)
  5. Act 32 §103 (UST definition excludes heating oil for consumptive use)
  6. PA DEP Storage Tank Data ("Home heating oil tanks are not regulated")
  7. 25 Pa. Code §245.1 definitions
  8. PA DEP Installer/Inspector Certification (certified company list)
  9. 68 Pa.C.S. §7303 seller disclosure
  10. Fannie Mae Selling Guide B4-1.4-08 Environmental Hazards Appraisal Requirements
  11. Kash Mortgage Group, PA buyer guide
  12. Flagstone, Philadelphia oil tank guide
  13. Curren Environmental, PA oil tank removal cost
  14. Harned Durham Energy, heating oil tank removal cost

Sources accessed 2026-10-25 by TANKER Traffic.

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