Auditor General Audit Finds PennVEST Loan Of $51 Million To Lyme Timber To Purchase 60,000 Acres Of Forest Land As Nonpoint Source Water Quality Project Eligible; But Recommends Changes In Law

On April 13, Auditor General Timothy L. DeFoor released a performance audit of the Pennsylvania Infrastructure Investment Authority, reviewing the agency’s processes in awarding and monitoring grants and loans for nonpoint source management program projects.

The audit is related to a decision PennVEST made in 2018 to provide two low-interest loans totaling nearly $51 million for a New Hampshire-based Lyme Timber to purchase more than 60,000 acres of private forest land in Cameron, Clinton, Elk, Jefferson, McKean and Potter counties.

As part of the transactions, Lyme Timber is to complete a small acid mine drainage project on the property at a cost of about $700,000. The company also agreed to place approximately 9,400 acres of the land into a permanent working forest conservation easement.

“In 2018, the Pennsylvania House of Representatives passed a resolution requesting our department perform this audit of PennVEST and we have fulfilled that request,” Auditor General DeFoor said. “Our audit found PennVEST has met all legal requirements in awarding and monitoring projects. However, there is an opportunity for policy makers to refine terms in the PENNVEST Act to ensure that all projects being funded are consistent with the legislative intent of the General Assembly.”

The audit team recommended that potential changes to state law and PennVEST’s procedures could result in a more thorough review and deliberation of projects being considered for financial assistance to ensure projects are consistent with the intent of the law. 

In particular, auditors recommended the General Assembly amend the PennVEST Act to add comprehensive definitions of the terms “facility” and “system” that more clearly convey legislative intent. 

The auditors also recommended process improvements for the PennVEST Board and management to ensure all relevant information is being considered when deciding to fund a project.

Click Here for a copy of the audit.  Click Here for the complete announcement.

Related Articles:

-- House Adopts Resolution Asking Auditor General To Audit PennVEST Nonpoint Source Program As A Result Of Timber Loan  [PaEN]

-- House Ag Committee: Is A $50M PennVEST Loan To Buy Forest Land The Best Use Of That Public Funding?  [PaEN]

-- Lyme Timber Company Receives $25.4M PennVEST Loan To Put 9,362 Acres In Working Conservation Easement, Create Jobs In 7 Counties  [PaEN]

[Posted: April 13, 2023]  PA Environment Digest