A state representative wants an audit completed of the Pennsylvania Infrastructure Investment Authority in response to multimillion-dollar loans awarded for the purchase of more than 60,000 acres across the region.
State Rep. Martin Causer, R-Turtlepoint, on Thursday introduced a resolution that calls on Auditor General Eugene DePasquale to conduct a thorough audit of more than 100 nonpoint source management transactions.
Last fall and in January, PENNVEST approved two 1-percent interest loans totaling nearly $51 million for New Hampshire-based Lyme Timber Company to purchase more than 60,000 acres of private forest land in Cameron, Clinton, Elk, Jefferson, McKean and Potter counties.
Lyme Timber will complete a small acid mine drainage project on the property at a cost of about $700,000. In addition, about 9,000 acres of the land would be placed into a permanent working forest conservation easement.
“There is a great deal of concern about whether this type of transaction is appropriate and if it is permissible under current law,” said Causer, who is the chairman of the House Agriculture and Rural Affairs Committee. “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.”
But PENNVEST Executive Director Brion Johnson sees things differently.
“I have no concerns regarding an audit of the non-point source, or any of the projects funded by PENNVEST,” he said.
State law allows PENNVEST to use money from the Clean Water State Revolving Loan Fund Program for nonpoint source projects; federal law and additional state-established parameters do have to be followed, according to a news release from Causer. Projects may include best management practices identified in Pennsylvania’s Nonpoint Source Management Program Update, such as part of a facility or system. Causer said that PENNVEST staff members pointed out that Lyme Timber will use BMPs in timber operations.
“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,” 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.”
In March, Causer called a public meeting at the state Capitol to obtain more information about the transactions from officials with the Pennsylvania Department of Conservation and Natural Resources and PENNVEST, as well as concerned landowners and timber operators.
But, Causer said, the meeting raised more questions than answers.
“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,” 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.”
Under the resolution, the auditor general would be asked to complete an audit of nonpoint source program projects approved by the PENNVEST board of directors and submit a report to the House of Representatives.
The proposal has been referred to The House Agriculture and Rural Affairs Committee for consideration.
Johnson did not immediately respond on Thursday to other questions asked by The Era regarding his thoughts on the resolution and Causer’s claims.
