YOUNGSTOWN Youngstown City Council will consider extending a moratorium on a controversial tire and plastic pyrolysis facility, a move fueled by concerns over the project’s environmental impact and the financial turmoil of the company proposing it.

The proposed ordinance, proposed by Fourth Ward Councilman Mike Ray and scheduled for a vote next week, seeks to renew the current ban on constructing or operating a pyrolysis or gasification plant for 12 months, effective November 22. The ban would apply to facilities that convert chipped tires, plastics, and electronic waste into fuel.

The legislation specifically addresses the planned pyrolysis unit by SOBE Thermal Energy Systems in downtown Youngstown. City leaders originally imposed the moratorium in late 2023 and renewed it in late 2024.

According to the ordinance, the renewal is necessary because the company, which also provides heating and cooling services to downtown customers, has been placed under court-appointed receivership as of September 26. The action followed reports that the company was on the verge of losing essential equipment due to unpaid debts and multiple legal judgments, including a $468,000 federal court judgment.

City officials cite the company’s financial distress as one of several critical factors. They argue that the plant’s 10-year air pollution permit, granted by the Ohio Environmental Protection Agency, is considered a transferable asset. This means the permit for the "Thermolyzer" technology could be sold to a new owner with only 30 days’ notice to the Ohio EPA and no additional public review, raising uncertainty about the facility’s future safety and management.

The city also has a pending appeal before the Ohio Environmental Review Appeals Commission (ERAC) challenging the Ohio EPA’s decision to issue the permit. That appeal process has stalled because SOBE Thermal failed to retain new legal counsel after its previous firm withdrew from the case.

The ordinance notes that exposure of waste materials to high heat creates pollutants, such as dioxin, and the U.S. EPA has raised environmental justice concerns due to the plant’s location near residences, hospitals, and schools. A citizens group, SOBE Concerned Citizens, formally requested that the Ohio EPA rescind the permit altogether, citing the company’s inability to maintain reliable utility service.

The ordinance comes amidst disruption to SOBE's current customers, which include 90 residential units and 27 commercial buildings downtown. These customers, including City Hall, lost heat and hot water service for periods in the fall after a key boiler was repossessed due to the company's nonpayment, despite the city's motion to delay the repossession.

At an October meeting, the receiver expressed confidence in the current boiler but pleaded for funding to establish a backup plan, warning that if customers left due to unreliability, he would have to shut down the plant entirely. Mayor Tito Brown publicly stated that providing funding was not the city's obligation as a customer.

The vote next week will determine whether the moratorium remains in effect as the city, the courts, and utility customers continue to grapple with SOBE Thermal’s uncertain future.