Ohio Brownfield Programs - Funding, Assessment, and Redevelopment

What Are Brownfields?

A brownfield 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. Brownfields exist in every Ohio county - former factories, gas stations, dry cleaners, rail yards, and industrial facilities that sit idle because the cost and liability of dealing with contamination discourages new investment.

Ohio has invested heavily in brownfield redevelopment since 2021. This page covers the major state and federal programs that fund assessment and cleanup, explains how they connect to the Voluntary Action Program (VAP) and Bureau of Underground Storage Tank Regulations (BUSTR) regulatory frameworks, and outlines the liability protections available to purchasers of contaminated property.

Ohio Brownfield Remediation Program (BRP)

The Brownfield Remediation Program (BRP) is the state’s primary grant program for cleaning up brownfield sites. Administered by the Ohio Department of Development (ODOD), the BRP provides grants covering remediation activities including property acquisition, demolition at a brownfield site, and installation or upgrade of minimum infrastructure needed to make a site operational for economic development.

The BRP was created in 2021 as part of the FY2022-2023 state budget. Since then, nearly all of Ohio’s 88 counties have received brownfield funding.

Funding History

The Ohio General Assembly has allocated funding across multiple budget cycles:

• FY2022-2023: $350 million (initial program creation)
• FY2024-2025: $350 million (second appropriation)
• FY2026-2027: $200 million via HB96 ($100 million per fiscal year, signed by Governor DeWine on June 30, 2025)

For FY2026, $88 million is available with $1 million reserved for applicants in each of Ohio’s 88 counties. County-reserved funds not obligated by June 30, 2026 become available statewide in the FY2027 round. Approximately $109 million is expected for FY2027, with applications anticipated to open in spring 2026.

Key Changes in FY2026

The FY2026-2027 budget (HB96) made several significant changes to the BRP:

• Merit-based awards replaced the previous first-come, first-served process. Under the old system, the final round of FY2025 funds was fully encumbered in under two and a half hours.
• Expanded eligible Lead Entities beyond county land banks. Counties, townships, municipal corporations, port authorities, conservancy districts, park districts, and for-profit organizations can now serve as Lead Entities.
• Expanded eligible costs to explicitly include demolition and infrastructure development costs associated with making a brownfield operational.
• Regional distribution requirement - ODOD must ensure projects are awarded across different regions of the state.

Who Can Apply

BRP applications must be submitted by a designated Lead Entity. Eligible Lead Entities include:

• County land reutilization corporations (land banks)
• Counties, townships, and municipal corporations
• Port authorities
• Conservancy districts and park districts
• Organizations for profit (expanded eligibility as of FY2026)

Private entities can participate as subrecipients through agreements with a Lead Entity. The entity that caused or contributed to the contamination cannot be the applicant, though a contaminated property can be transferred to a non-liable party as part of the project.

Eligible Projects

Properties must meet the statutory definition of a brownfield - abandoned, idled, or under-used with known or potential contamination at the subsurface level. Properties with documented asbestos in structures may also qualify even without subsurface contamination.

Eligible remediation costs include environmental assessment, soil and groundwater remediation, asbestos abatement, demolition necessary for remediation access, and minimum infrastructure upgrades to make the site operational. All applicants must specify which regulatory cleanup program the project will comply with - the Voluntary Action Program (VAP), BUSTR, or the Resource Conservation and Recovery Act (RCRA).

Pending Legislation: HB93

House Bill 93, a bipartisan bill introduced in February 2025 by Representatives Thomas Hall (R) and Bride Sweeney (D), proposes establishing permanent, dedicated funding for brownfield remediation. Key differences from the current BRP include:

• Dedicated funding source of $50-100 million per year from redirected liquor franchise revenue, rather than one-time legislative appropriations each biennium
• Merit-based competitive process for cleanup funds
• Reserved assessment funding with up to $200,000 per county annually for Phase I and Phase II Environmental Site Assessments (ESAs)
• Open applications allowing both public and private entities to apply directly without a third-party partner

As of early 2026, HB93 is awaiting committee assignment in the Ohio House. The FY2026-2027 budget (HB96) addressed some of the same issues - particularly eliminating first-come, first-served - but did not establish a permanent dedicated funding source.

Ohio EPA Brownfield Programs

Ohio EPA’s Division of Environmental Response and Revitalization (DERR) runs brownfield assistance through its Site Assistance and Brownfield Revitalization (SABR) section. SABR serves as the state’s contact point for brownfields or contaminated sites not yet enrolled in any cleanup program such as VAP, BUSTR, RCRA corrective action, or Superfund.

Targeted Brownfield Assessment (TBA)

The TBA program provides environmental assessment services at no cost to eligible local government applicants. Funded by U.S. EPA grants, the TBA program offers:

• Phase I Property Assessments (historical review and records search)
• Phase II Property Assessments (soil and groundwater sampling)
• Asbestos inspections
• Screening assessments (including Ohio EPA’s mobile laboratory)
• Supplemental assessments
• Ecological stream surveys

Applications are non-competitive - projects are funded as they come in, subject to available funding. Only local government entities (counties, cities, villages, townships, port authorities, and county land banks) are eligible to apply. Ohio EPA approval typically occurs within 4 to 6 weeks of application. A signed property access agreement is required.

VAP Technical Assistance

Ohio EPA provides grant-funded technical assistance for sites enrolled in the Voluntary Action Program. This assistance can include guidance on technical or legal issues related to potential No Further Action (NFA) letters, pre-NFA document review, urban setting designation (USD) requests, and general help determining whether a site is eligible for the VAP. The volunteer determines the scope of the review.

Other State Funding Sources

JobsOhio Revitalization Program

The JobsOhio Revitalization Program offers loans and grants to companies redeveloping underutilized properties, including brownfields. Unlike the BRP, which targets remediation specifically, the JobsOhio program is broader and can cover site preparation and development costs. The program includes funding for Phase II assessments.

Abandoned Gas Station Cleanup Grant

ODOD, in partnership with Ohio EPA and BUSTR, provides funding to assess and clean up former gas and service stations with documented petroleum releases. Eligible applicants include local government entities and land banks that own an eligible property or have an agreement with the landowner. The applicant and property owner cannot have contributed to the petroleum release.

Ohio Water Development Authority (OWDA) Brownfield Loan Program

The OWDA created the Brownfield Loan Program in 1995 to provide direct loans for cleanup of contaminated properties through the VAP. This program offers low-interest financing for voluntary action projects.

Federal Programs

U.S. EPA Brownfields Program

The federal Brownfields Program provides grants and technical assistance to communities, states, and tribes. Key grant types include:

• Assessment grants - fund Phase I and Phase II ESAs and cleanup planning
• Cleanup grants - fund direct remediation activities
• Revolving Loan Fund (RLF) grants - provide capital for loans and subgrants for cleanup

In 2025, U.S. EPA announced over $6.6 million in brownfield grants to six Ohio organizations. The Northeast Ohio Areawide Coordinating Agency (NOACA) operates an active Brownfield Revolving Loan Fund covering a 12-county region in northeast Ohio.

CERCLA Liability Protections

The federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund, provides liability protections for innocent purchasers who conduct proper due diligence before acquiring contaminated property. These federal protections include the Innocent Landowner defense, the Contiguous Property Owner defense, and the Bona Fide Prospective Purchaser (BFPP) defense.

Bona Fide Prospective Purchaser Defense (BFPD)

In September 2020, Ohio enacted House Bill 168, codified in ORC 3746.122, establishing a state-level Bona Fide Prospective Purchaser Defense (BFPD). This law mirrors the federal CERCLA BFPP defense and was a significant regulatory reform for brownfield redevelopment in Ohio.

How the BFPD Works

The BFPD provides an affirmative defense against state liability for purchasers of contaminated property. To qualify, the purchaser must demonstrate:

1. All disposal of hazardous substances at the property occurred before the purchaser acquired it
2. The purchaser conducted All Appropriate Inquiries (AAI) before acquisition - in practice, this means a Phase I ESA meeting ASTM E1527-21 standards
3. The purchaser exercises appropriate care regarding hazardous substances discovered at the property
4. The purchaser cooperates with authorities conducting any response action
5. The purchaser complies with applicable land-use restrictions or institutional controls
6. The purchaser does not impede the state’s response actions

BFPD vs. VAP

The BFPD and the VAP serve different purposes and offer different levels of protection:

VAP Covenant Not to Sue (CNS): A formal legal release issued by Ohio EPA after cleanup to applicable standards. The CNS is a certificate - proactive, definitive, and state-issued. It is the gold standard for liability protection in Ohio and is typically required for heavily contaminated sites or transactions where the buyer needs certainty.

BFPD: An affirmative defense the purchaser raises in court if the state tries to hold them liable. No state approval is needed, no cleanup is required, and the process is faster and cheaper than the VAP. However, the protection is narrower - it is a shield you raise if challenged, not a certificate you hold. The BFPD is better suited for lightly contaminated sites or transactions where the contamination risk is low and the buyer wants to avoid the cost and timeline of a full VAP cleanup.

HB168 also amended the VAP (ORC 3746.05) so that violation of a use restriction no longer automatically nullifies a Covenant Not to Sue. The Ohio EPA director now has discretion to maintain the CNS if the property owner takes prompt corrective action.

How the Programs Fit Together

Understanding how these programs interact is important for consultants advising clients on brownfield transactions:

Assessment phase: Start with Ohio EPA’s TBA program (free assessments for local governments) or apply for BRP assessment funding. Federal EPA assessment grants are also available.

Cleanup phase: Apply for BRP cleanup grants through the county Lead Entity. Specify which regulatory program the cleanup will follow - most commonly the VAP. Federal EPA cleanup grants and RLF loans are additional options. JobsOhio may cover broader site preparation costs.

Liability protection: Complete cleanup through the VAP to obtain an NFA letter and Covenant Not to Sue. Alternatively, if the site is lightly contaminated and no cleanup is needed, the purchaser may rely on the BFPD by conducting AAI (Phase I ESA) before acquisition and meeting continuing obligations.

Financing: The OWDA Brownfield Loan Program provides direct loans for VAP cleanups. JobsOhio offers loans and grants for redevelopment.

Resources

• Ohio Brownfield Remediation Program (ODOD) - Grant guidelines, application, and Lead Entity list
• Ohio EPA SABR / Brownfields - Targeted Brownfield Assessments and technical assistance
• Greater Ohio Policy Center - Brownfields - Advocacy, research, and annual Ohio Brownfield Conference
• U.S. EPA Brownfields Program - Federal grants and resources
• ORC 122.6511 - Brownfield Remediation Program - Statutory authority for the BRP
• ORC 3746.122 - Bona Fide Prospective Purchaser Defense - BFPD statute