Welcome! I'm sorry to hear about your pico reef.
I absolutely agree with Jake. That's way too much light for a freshwater tank. The 9 watt light is not enough. The most popular way to light a tank like this is with a desk lamp. If you go to home depot, you'll find a $20 Hampton bay desk lamp. I have it, and it's wonderful! It will be perfect for your tank.
Since your old heater malfunctioned, you'll need a new one.
What were you using as a filter?
If you want a cheap substrate, sand works really well. I bought a 50 pound bag from home depot for less than $3. I use sand in all my tanks
The only thing with sand is that if it's really deep, anaerobic pockets can form, and when they're released, they can kill fish.... That being said, I've never had an issue with this. Just keep the sand depth to less than 3" and you're good to go :-) agitating the sand bed a little bit once every few months will help, too.
CO2 is an issue of its own... I suggest you do some reading about that. short answer...you need it. You can provide this either via a pressurized CO2 set up, or you can set up DIY CO2.
If you have any specific questions, we can help you with those, too :-)