United States: The Clean Ohio Fund

The Clean Ohio Fund (Fund) was created as the result of the passage of Issue 1 last November. The Governor’s Administration has recommended certain uses for and amounts to be expended from the Fund. These recommendations follow extensive input sought from stakeholders during the development of Issue 1, and which continues during implementation of the Fund. House Bill 3, which addresses implementation of the Fund, has been introduced to the General Assembly.

As part of this process, the Administration has proposed that certain general requirements be met in order to obtain Fund monies. These include local government support for proposed projects, public involvement in decisions regarding the use of the Fund, and matching funds or other resources to assist in project implementation. Nonprofit and forprofit entities may apply for funding, and maximum Fund expenditures will be established for projects.

It is anticipated that the Fund will be available for financial assistance to the following types of projects:

Brownfields Redevelopment: One hundred seventyfive million dollars is being proposed to be expended from the Fund to revitalize neighborhoods by returning abandoned or underutilized industrial properties to productive use, and to retain and/or create jobs. A key component of the program will be assessing and remediating environmental contamination that currently impedes development of these properties.

Although Ohio has a Voluntary Action Program (VAP) through which liability for additional cleanup of brownfields sites can be limited, currently there is no funding through the VAP to help with the cost of property acquisition, assessment, environmental remediation, or redevelopment.

Nonprofit and forprofit organizations can apply for funding assistance, however, those that directly caused pollution at a site, or related parties, would not be eligible. It is anticipated that a combination of grants, loans and loan guarantees will be available, with flexibility afforded in the financing structure. However, applicants will need to bring other sources of financing to support a portion of the projects, the percentage of which will be dependent upon the type of project proposed.

Projects must be demonstrated to show that an economic benefit to the community will be derived, and projects in urban areas will be emphasized. Eligible activities will include assessments, acquisition, clearance/demolition of structures, remediation and cleanup activities, and infrastructure necessary to serve the brownfields site. In order to receive funding, an assessment and/or remediation component will be required. Funds authorized for infrastructure will be limited.

Green Space Preservation: One hundred million dollars is proposed to establish, preserve and protect green space and greenways (including forests, grasslands and wetlands), either through easements or fee simple acquisitions. Funds may also be used to assist in the development or rehabilitation of green space sites and to enhance their use for public recreation.

Under the current proposal, funds would be available for political subdivisions in the state authorized to own/operate public park and recreation or conservation areas, including park districts, joint recreation boards and conservancy districts, and appropriate nonprofit organizations with local government support.

Stream And Watershed Protection And Restoration: Fifty million dollars is being proposed to provide financial support to local communities and watershed groups for the protection and restoration of physical habitat and water quality in Ohio streams. The funding will be directed to protect high quality streams and restore impaired water resources through protection of habitat associated with those streams.

Grants will be provided to local government, watershed organizations and other nonprofit organizations, for the purchase of permanent conservation easements and/or feesimple acquisition of riparian lands to protect and restore streamside forests and for projects that restore modified stream channels. Funds will be used for both the protection and restoration of physical habitat and water quality. Matching funds will be required for each proposed project.

Public Health Projects: Twentyfive million dollars is being proposed for local governments to address sites where contamination poses an unacceptable degree of risk to public health, but for which there is no economic development opportunity that makes the site eligible for funds from the brownfields redevelopment portion of the Fund.

Likely limitations on the eligibility for funding include that contamination present at the property is documented and exists at levels that have been determined to threaten public health, that the owner did not cause the contamination at the proposed site, and that site access for remediation can be obtained. It is proposed that Ohio EPA will oversee all such cleanup projects.

Recreational Trails: Twentyfive million dollars is being proposed for recreational trail grants to help expand Ohio’s network of state, regional and community trails for biking, hiking and other forms of recreation. It is intended that these grants will enhance links between parks, schools, neighborhoods and other community resources and provide access to open spaces and outdoor recreation. Local units of government as well as nonprofit organizations will be eligible to receive grants. Nongovernment entities must apply with support from or in partnership with local government, and must meet the local government involvement requirements.

Farmland Preservation: Twentyfive million dollars is proposed to purchase agricultural easements on agricultural lands, in order to preserve the State’s agricultural lands for farming purposes.

It is anticipated that counties, townships, municipalities and nonprofit organizations may apply to purchase an easement on farms where the owner is willing to grant a permanent easement. The farmer would retain ownership of the property, and the applicant would hold the easement, in conjunction with the Ohio Department of Agriculture. The applicant will fund a certain percentage of the project costs, and the property must be deed restricted to ensure that its future use remains agricultural.