The passing of Ohio’s new biennial budget at the end of June 2023 brought a highly welcomed renewal of the state’s successful Brownfield Remediation Program coordinated through the Ohio Department of Development (ODOD).
The program, originally implemented as part of the FY2021/2022 biennium budget, brought relief for communities across Ohio searching for funding to revitalize blighted properties.
This relief came in the form of funding for environmental site assessments and remediation. The 2023 budget, passed by the Ohio General Assembly and signed by Gov. Mike DeWine, includes $350 million for the assessment, cleanup, remediation, and revitalization of brownfields, with the funding split into approximately $175 million per fiscal year (2024 and 2025). Each Ohio County has identified a Lead Entity that will be the single applicant and award recipient. Lead Entities for each County can be viewed on the ODOD website here.
For FY24, $1MM will be set aside for each Ohio County, with the remaining funding (approximately $82MM per year) will be available on a first-come, first-served basis during each application period. As with the initial program, no match funding will be required for projects under the $1MM County set-aside, whereas a match equaling 25% of the total project cost will be required for projects outside of the set-aside funding. For FY24, eligible expenses that were incurred on or after July 4, 2021, may be used as match. For FY25, eligible expenses that were incurred on or after July 4, 2022 may be used as match. Per ODOD, future in-kind costs can also be considered as an eligible expense for the match.
ODOD has identified that the FY24 application period will start on December 5, 2023, and extend to April 1, 2024, whereas the FY25 application period is expected to open on July 1, 2024. Eligible grant periods will run from July 4, 2023 to June 30, 2025, and July 1, 2024 to June 30, 2026. Eligible projects fall into two categories:
- Assessment (maximum award of $300,000): Including Phase I and Phase II property assessments, State Fire Marshal Bureau of Underground Storage Tank Regulations (BUSTR) assessments, USEPA Resource and Recovery Act (RCRA) assessments, and asbestos assessment surveys. Projects must be completed in accordance with corresponding State and Federal laws and regulations; and
- Cleanup/Remediation (maximum award of $10MM): Including actions to contain, remove, or dispose of hazardous substances at a brownfield. This also includes costs to acquire the property (up to 10% of total request), demolition, and the installation or upgrade of infrastructure (not to exceed 20% of the total request) necessary to make the brownfield operational for redevelopment.
As with the prior funding, eligible properties must meet the definition of a brownfield. By definition, a brownfield site is an abandoned, idled, or under-used industrial, commercial, or institutional property where expansion or redevelopment is complicated by known or potential releases of hazardous substances or petroleum. Assessment, cleanup, and revitalization of these types of properties are often hindered by cost, as the required environmental studies and remedial measures often exceed the financial capabilities of local governments. Redevelopment by private entities is also hindered by the financial investment needed to get the property in a position for redevelopment. The ODOD program has helped to overcome these financial hurdles for governmental and private entities alike, making brownfield properties more attractive and easier to redevelop.
During the initial application period in 2021, Civil & Environmental Consultants, Inc. (CEC) assisted with 19 program applications resulting in the award of over $7.5 million in funding to clients that included local municipalities, counties, and private corporations.
Through 2022 and 2023, CEC continued to assist these clients with implementation of the grants on brownfield projects that have included current and former industrial sites, abandoned gas stations, municipal buildings, and commercial buildings.
Renewal of this funding and the opening of the FY24 application period is certainly exciting news for the continued revitalization of brownfield properties located in Ohio communities. The $350 million in additional brownfield funding provided in the new state budget will continue revitalization efforts in Ohio, with the legislation providing a sound financial platform for assessment and clean-up efforts in the coming years.
For more information about these changes and for assistance with brownfield redevelopment in Ohio and the ODOD application process, please contact one of CEC’s Ohio Voluntary Action Program (VAP) Certified Professionals:
Brent R. Smith, CEC Columbus | 614.310.1042 | brsmith@cecinc.com
Jim Zentmeyer, CEC Cincinnati | 513.483.3506 | jzentmeyer@cecinc.com
Mike Coonfare, CEC Toledo | 419.214.4412 | mcoonfare@cecinc.com
Learn More About CEC
Public Sector | Real Estate | Environmental Engineering and Sciences
Post a Comment