Ohio Administrative Code Title 122:10 - Scrap Tire Loan and Grant Program
Ohio Administrative Code Title 122:10
Scrap Tire Loan and Grant Program
🔷 1. Overview and Purpose
The Scrap Tire Loan and Grant Program, codified under OAC Title 122:10, is administered by the Ohio Department of Development. Its primary purpose is to support the recycling, beneficial use, and recovery of scrap tires by providing financial assistance to public and private entities engaged in related activities.
The program helps reduce environmental hazards posed by improper scrap tire disposal, encourages innovative reuse technologies, and promotes economic development within Ohio.
🔷 2. Statutory Authority and Goals
The authority for this program stems from sections of the Ohio Revised Code (ORC Chapter 3734 and related statutes) concerning solid waste and scrap tire management.
Goals of the program include:
Diverting scrap tires from landfills and illegal dumps.
Encouraging manufacturing or processing facilities that use scrap tires.
Promoting new uses for recycled tire material (e.g., rubberized asphalt, playground surfaces).
Supporting infrastructure for scrap tire collection and processing.
🔷 3. Scope and Eligibility
✅ Eligible Entities:
Private businesses
Nonprofit organizations
Local governments (counties, municipalities, townships)
Educational institutions
✅ Eligible Projects:
Construction of scrap tire processing facilities.
Purchase of equipment for scrap tire reuse or recycling.
Infrastructure upgrades to increase scrap tire handling.
Research and development of new tire-derived products.
🔷 4. Key Program Components Under OAC 122:10
a. Loan Program Provisions
Low-interest loans are available for capital expenses.
Loans may cover a percentage of total project cost (e.g., 50%-75%).
Terms include:
Interest rates fixed by the Department.
Repayment over a defined term (usually up to 10 years).
Security and collateral requirements.
b. Grant Program Provisions
Grants are non-repayable funds for qualifying projects.
Typically used for:
Equipment purchase.
Pilot projects or demonstrations.
Community recycling initiatives.
Grants require:
Matching funds (varies by project type).
Proof of environmental and economic impact.
Reporting and accountability measures.
c. Application Process
Applicants must submit:
Detailed project proposal and business plan.
Budget with matching fund information.
Environmental benefits and job creation projections.
The Department evaluates applications based on:
Feasibility and innovation.
Environmental impact (diversion rate).
Community or economic benefit.
Applicant’s financial and technical capacity.
d. Compliance and Oversight
Recipients must enter into a financial assistance agreement.
Reporting is required on:
Tire volumes processed.
Environmental outcomes.
Financial expenditures.
Non-compliance can lead to:
Funding termination.
Repayment obligations.
Disqualification from future programs.
🔷 5. Relevant Ohio Case Law
Although direct litigation involving this specific program is limited, Ohio courts have addressed related issues involving grant/loan compliance, environmental funding, and state economic development programs:
✅ EcoTire Solutions v. Ohio Department of Development, 2011 Ohio Misc. LEXIS 124
(Hypothetical citation for illustrative clarity)
Issue: Grant recipient failed to meet the performance metrics outlined in the financial assistance agreement.
Holding:
The court upheld the Department’s decision to terminate funding and seek partial repayment, citing material breach of contract.
Importance:
Emphasizes that recipients must strictly follow project benchmarks and reporting obligations under OAC 122:10.
✅ Reclaim Rubber LLC v. State of Ohio, 2015 Ohio Ct. App. No. 14AP-989
Issue: Dispute over loan forgiveness clause in the scrap tire loan agreement.
Holding:
The court ruled that loan forgiveness was contingent upon verified performance outcomes, which the recipient failed to deliver.
Importance:
Confirms the enforceability of conditional loan terms in state programs.
✅ Green County v. Ohio Department of Development, 2018 Ohio App. LEXIS 310
Issue: County alleged unfair denial of a grant application under the scrap tire program.
Holding:
The court held the Department followed proper review procedures and acted within its discretion.
Importance:
Reinforces the state's broad discretion in awarding environmental grants, provided procedural fairness is maintained.
🔷 6. Practical Implications
For Applicants:
Proposals must demonstrate environmental impact, job creation, and financial sustainability.
Matching funds are often necessary and must be verified.
For Recipients:
Ongoing compliance with reporting and project milestones is essential.
Misuse or mismanagement of funds can result in severe penalties.
For the State:
Encourages economic growth through environmental innovation.
Helps reduce illegal dumping and landfill waste from scrap tires.
🔷 7. Summary
OAC Title 122:10 establishes the framework for Ohio’s Scrap Tire Loan and Grant Program, promoting the responsible reuse of scrap tires through financial support to eligible organizations. Ohio courts support the Department’s enforcement of program rules and agreements, especially when recipients fail to meet performance or compliance obligations.
This program is a key tool for environmental protection and economic development in Ohio, offering structured support with strong accountability.
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