Rep. Martin Causer (R-67) recently introduced a resolution requesting that Auditor General Eugene DePasquale conduct an audit of approximately 118 nonpoint source management transactions approved by the Pennsylvania Infrastructure Investment Authority (PENNVEST).
House Resolution 948 follows concerns about PENNVEST approval of two low-interest loans totaling nearly $51 million for New Hampshire-based Lyme Timber Company to purchase approximately 60,000 acres of private forest land in Cameron, Clinton, Elk, Jefferson, McKean and Potter counties.
“There is a great deal of concern about whether this type of transaction is appropriate and if it is permissible under current law,” Rep. Causer said. “When most of us think of PENNVEST, we think of an agency that provides funding to help boroughs, townships and municipal authorities update the water and sewer infrastructure our citizens rely upon. Using agency funds as a means to help finance the private purchase of private land has raised a lot of questions among lawmakers and citizens alike.”
Rep. Causer noted that state law does authorize PENNVEST to use funding from the Clean Water State Revolving Loan Fund Program for nonpoint source projects if the use of funding adheres to federal law and additional state-established parameters.
Projects may include best management practices (BMPs) identified in Pennsylvania’s Nonpoint Source Management Program Update as long as the BMPs are part of a facility or system. According to PENNVEST staff, Lyme Timber will use BMPs in their timber operations on the land.
“Different interpretations of PENNVEST law have resulted in a lot of questions about these particular transactions, which appear to be the first of their kind for the agency,” Rep. Causer said. “I believe an audit of all nonpoint source projects approved by PENNVEST will give us some additional insight into what is appropriate under the law.”
The resolution now heads to the House Agriculture and Rural Affairs Committee, which Rep. Causer chairs, for consideration.
“Using state funds to subsidize the purchase of private land by a private timber company, which will now be competing with other timber companies that have not had the benefit of state funding to expand their operations is a serious concern for me and many fellow lawmakers,” Rep. Causer said. “I also question PENNVEST’s use of funds in this manner when the agency’s mission is to invest in our infrastructure and there is certainly no shortage of water and sewer systems across this Commonwealth that are crumbling.”