GENERAL SECTION

Brownfields Redevelopment
Through the Clean Ohio Fund

Voters in the State of Ohio passed Issue 1 on the November 2000 ballot to create a $400 million bond fund to be used for farmland preservation, brownfields redevelopment, public health projects, watershed protection, recreational trails restoration and development and green space preservation. This bond fund has been labeled the Clean Ohio Fund. In January 2001, the directors of the various state agencies that will oversee these programs issued a vision paper outlining their preliminary thoughts regarding how the fund should be administered. A copy of the vision paper is available at www.epa.state.oh.us/pic/ohfund.html. The largest single portion of the fund, $175 million, has been allocated for brownfields redevelopment.

HOW WILL THE FUND BE ADMINISTERED?
The Ohio General Assembly will need to enact implementing legislation before the Clean Ohio Fund can be accessed. The vision paper presents how Ohio’s Department of Development (ODOD) and Environmental Protection Agency (OEPA) envision administering the fund for brownfields redevelopment. Entities such as cities, counties, port authorities and for-profit enterprises will be eligible for Clean Ohio Funds for projects where it is necessary to either assess possible contamination or remove, contain or control contamination before reuse of the property is viable; those that directly caused the pollution at a site and related parties will be ineligible for assistance. Projects must demonstrate an economic benefit in the community and the funds will be focused on urban communities. Funding in the form of grants, loans or loan guarantees would be available on a first come, first serve basis. The vision paper anticipates the use of principal and interest payments from loans to create a revolving loan fund that would extend the life of the program beyond the anticipated 4 to 5 years for the initial block of money. Ensuring local government participation and using the Clean Ohio Funds to leverage redevelopment capital and economic return for the participating projects is the basis by which the funds will be allocated. Opportunities for public input in decision-making are one of the unifying principles for use of the fund.

WHAT WILL THE CLEANUP STANDARDS BE?
Properties must meet standards that are protective of human health and the environment. Because each site has a different history, specific cleanup standards will be dependent on the governing regulatory process. For example, sites that are regulated under hazardous waste law will have to follow the appropriate standards for the cleanup of hazardous waste facilities. Where there is no other regulatory program that involves ongoing OEPA oversight, the Ohio Voluntary Action Program standards with public participation will be used and a Certified Professional must be employed to oversee the project and submit results to the OEPA as a No Further Action Letter. The grant or loan agreement entered into between ODOD and the recipient will specify what environmental regulations apply to each specific project; therefore, regulatory eligibility will be an important early determination.

SUMMARY
The Ohio General Assembly will be enacting legislation to enable the Clean Ohio Fund to be used for brownfields redevelopment and other purposes. The Ohio General Assembly intends to act during this legislative session. The vision paper provides the anticipated framework though which the Clean Ohio Funds will be administered. The Payne Firm is committed to continuing to help clients utilize available public funds for brownfields redevelopment and will be participating in the legislative process. Please contact Don Fay or Michael Woodruff at (513) 489-2255 or toll free at (800) 229-1443 or by e-mail at daf@paynefirm.com or mlw@paynefirm.com with questions or for more information.