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Financial Assistance Program for Residential Heating Oil Tank Removal/Replacement

Financial Assistance

Financial assistance through the Petroleum Cleanup Fund (PCF) may be available to owners of single family residences, including mobile homes, that have either underground or aboveground oil storage tanks that are used solely for on-premises heating. Funding is for low income Vermont homeowners for the removal and replacement, if necessary, of residential oil tanks that provide heat to a non-commercial property in Vermont. The financial assistance program has limited funding, with total expenditures not to exceed $400,000 per fiscal year. The goal of the financial assistance program is to assist low income homeowners in Vermont with replacing tanks which otherwise might leak, possibly causing adverse impacts to the environment. In many cases, funds are prioritized for the lowest income applicants who otherwise would not have the financial resources to accomplish tank replacement. Environmental risk and household income are the two main considerations for allocation of funds, as set forth in 10 V.S.A. § 1941 (g).

Please be aware that commercial or nonprofit organizations may be able to receive a loan through the Vermont Community Loan Fund (VCLF). If you are not receiving financial assistance from the program, the Vermont Fuel Dealer’s Association (VFDA) offers rebates, independent of income, for anyone who replaces their existing, non-compliant aboveground storage tank with a new one. For more information, visit the VFDA rebate webpage. Please note that tank owners may only receive funding from one of these programs.

Storage Tank Removal/Replacement Program


An underground storage tank (UST) is a tank containing #2 fuel oil that is buried on the property. Note that tanks in the basement are regulated as aboveground storage tanks (see below). Applications for financial assistance in fiscal year 2024 for the removal or replacement of USTs started July 1, 2023. Applicants will receive written notice whether financial assistance is being awarded after this date. Work done before this date will not be funded by fiscal year 2024 funds. Please be aware that residential USTs that are in use are not required to be removed. However, if the UST is out of service for more than one year, it needs to be removed. If removal is not an option (e.g., due to a structure over the tank), in-place closure is allowable.


An aboveground storage tank (AST) means any tank, other than a buried UST, containing heating fuel (i.e., #2 oil or kerosene).

Please be aware that work completed prior to an application being received and approved will not be eligible for financial assistance. Furthermore, if an application is approved but documentation shows work was completed prior to application receipt and approval, this is cause for denial of assistance.

More Information

If you have questions, please call 802-828-1138.