Why it matters at sale time
Homeowners policies may exclude pollution cleanup2,3.
State cleanup reimbursement (buried tanks only)
PA DEP runs an Underground Heating Oil Tank Cleanup Reimbursement Program4,5. You may be eligible if all of the following are true5:
- You are or were the tank owner.
- The tank was underground (buried), held 3,000 gallons or less, and 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, on or after January 30, 1998 (released or discovered).
- Environmental cleanup is complete or in progress.
Not eligible: aboveground tanks, including tanks sitting on or above a basement or cellar floor, and the cost of removing a tank that didn't leak5. Removal costs for a leaking tank count only if cleanup work is also done5.
Money: you pay a $1,000 deductible, and DEP reimburses the remaining eligible costs up to $4,000, both per tank4,5. The program has up to $750,000 a year, through December 31, 2027. DEP processes complete applications first come, first served until each fiscal year's funds run out, and doesn't guarantee funds will be available5. Reimbursements are reported to the IRS and may be taxable5.
How to apply: submit online through the Pennsylvania Electronic Single Application system. Upload the contractors' original itemized invoices (estimates are not accepted) and proof of payment, such as both sides of a canceled check or a paid invoice5. Details are on DEP's page: https://www.pa.gov/services/dep/apply-for-oil-tank-cleanup-reimbursement-from-the-department-of-environmental-protection
State reporting
Check PA DEP's residential home heating oil guidance for reporting and cleanup steps: https://www.pa.gov/agencies/dep/programs-and-services/land/site-remediation/storage-tank-cleanup-program/residential-home-heating-oil
Lehigh Valley towns with the most oil-heated homes
Share of occupied homes heated mainly by fuel oil or kerosene, estimated by the Census6:
| Town | Fuel-oil share | Homes (± margin of error) |
|---|---|---|
| Coopersburg | 40.3% | 442 ± 96 |
| Wind Gap | 39.9% | 603 ± 142 |
| Pen Argyl | 39.2% | 545 ± 184 |
| Moore Township | 32.2% | 1,113 ± 208 |
| Bangor | 31.7% | 630 ± 197 |
| Nazareth | 30.3% | 908 ± 208 |
For comparison: Allentown 14.1%, Easton 8.6%6. 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 regulated7,8. Owners usually act because of a sale, a lender, an insurer, or leak risk.
Can I sell a house with a buried oil tank in PA?
State law doesn't prohibit it, but you must disclose known material defects9, and the buyer's lender may require inspection or documentation10,2.
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
- Curren Environmental, PA oil tank removal cost
- Kash Mortgage Group, PA buyer guide
- Flagstone, Philadelphia oil tank guide
- PA DEP Storage Tanks Financial Assistance (Underground Heating Oil Tank Cleanup Reimbursement Program)
- PA DEP, Apply for Oil Tank Cleanup Reimbursement
- Census ACS 2020–2024 5-year Table B25040 House Heating Fuel, county subdivision geography (table-based summary file)
- Act 32 §103 (UST definition excludes heating oil for consumptive use)
- PA DEP Storage Tank Data ("Home heating oil tanks are not regulated")
- 68 Pa.C.S. §7303 seller disclosure
- Fannie Mae Selling Guide B4-1.4-08 Environmental Hazards Appraisal Requirements
- 25 Pa. Code §245.1 definitions
- PA DEP Installer/Inspector Certification (certified company list)
- Harned Durham Energy, heating oil tank removal cost
Sources accessed 2026-10-25 by TANKER Traffic.