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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