New Hampshire Raises Reimbursement Caps for Oil Tank Cleanup

New Hampshire will increase financial support for homeowners managing oil-related environmental risks, while also reshaping the state’s oil import fee structure to stabilize funding for the Oil Discharge and Disposal Cleanup Fund. HB 658-FN, effective June 30, 2025, reflects growing concerns around aging oil tanks and the financial burden of compliance with state safety and environmental standards.

Key Policy Changes Under HB 658-FN

Backed by bipartisan sponsors including Rep. Peter Edgar and Sen. David Watters, the bill raises the reimbursement cap for residents who demonstrate financial need:

• Replacement of on-premise heating oil tanks: increased from $3,300 to $4,000
• Underground storage tank removal: increased from $2,500 to $4,500

These changes are expected to result in an additional $154,000 in annual expenditures, according to the New Hampshire Department of Environmental Services (NHDES). The state currently reimburses about 200 tank replacements and 7 removals per year.

“Each reimbursement is not just a subsidy—it’s a public health safeguard,” said a representative from NHDES during committee hearings. “Higher caps ensure timely upgrades and reduce the risk of soil and groundwater contamination.”

Fee Restructuring to Support Long-Term Fund Health

To offset costs and sustain the Oil Pollution Control Fund and Oil Discharge and Disposal Cleanup Fund, the bill also modifies oil import fees starting July 1, 2025.

Notably:

• The fee for fuel oil and used oil for on-premise heating nearly doubles from $0.01375 to $0.02715 per gallon.
• Motor oil fees decrease sharply from $0.04125 to $0.01478 per gallon.
• All other oil imports now face a uniform rate of $0.00215 per gallon.

Projected revenue impacts include:

• FY26: +$496,966
• FY27: +$339,155
• FY28: +$53,559

In FY26 alone, importers will contribute approximately $17.5 million to the funds—an increase over the current $17 million baseline.

Who's Affected: Fuel Suppliers and Storage Contractors

Companies importing oil into the state—including Irving Oil, Global Partners LP, and Sprague Operating Resources—will need to adjust reporting and monthly remittances based on the new fee structure. These changes could also impact heating oil distributors and tank removal contractors such as Rymes Propane & Oil and Eastern Propane & Oil, who often coordinate cleanup fund reimbursements for homeowners.

“It’s a delicate balance—keeping the fund solvent while not placing too much pressure on fuel distributors,” said a representative of the Oil Fund Disbursement Board. “But the overall goal is modernization and risk prevention.”

A Broader Signal on Infrastructure Aging and Climate Risk

New Hampshire's efforts mirror regional trends across New England, where states are grappling with aging infrastructure, spill risks, and stricter heating oil regulations. According to the U.S. Energy Information Administration, nearly 1 in 4 homes in the Northeast still rely on heating oil, making proactive maintenance critical to prevent environmental damage and cleanup costs.

The bill also reflects a broader shift toward increased transparency and accountability, with the cleanup fund’s annual reporting deadline moved from October 1 to March 1 to better align with fiscal planning.