PA. LEGISLATURE Water, sewer spending remains undecided

Environmental groups say the state needs to update its aging sewage plants.
HARRISBURG (AP) -- The Legislature recessed for the summer last week without reaching a deal on how to divvy up $250 million in borrowing for water and sewer projects that voters approved in April.
When it reconvenes in September, the General Assembly will have to decide whether to send Gov. Ed Rendell a bill that directs the funding only to new projects that would create jobs -- the approach he and the Senate seem to favor -- or to spend some of it to repair current residential systems.
The division
Environmental groups argue voters did not intend the money to bring sewer and water service to new industrial parks, and say the state badly needs to upgrade its aging sewage plants. In parts of the state, particularly in western Pennsylvania, overflowing plants sometimes dump untreated waste into streams.
John Quigley, government relations manager for the environmental advocacy group PennFuture, said a bill that passed the House of Representatives last month would help the state begin to fix those plants.
"The House did a great job in tightening the language, focusing the money on existing infrastructure and limiting economic development uses to previously developed sites," he said. On the other hand, he said, the Senate "virtually gutted all the improvements that the House made."
House Republican spokesman Steve Miskin said the House "is more community focused" as opposed to the Senate's preference to spend bond proceeds on attracting and expanding businesses.
Details remain
Rendell supports the Senate's approach, and a deal could be in place soon after the General Assembly returns in September, said the governor's spokeswoman, Kate Philips. But she cautioned there are still details to be worked out.
"We're trying to reach a consensus, but the original intent of the bill was to create a fund that would help create an economic stimulus -- not just to reduce the number of [utility] projects that are on backlog," Philips said.
Pennvest funds
Bill sponsor Sen. John Gordner, R-Columbia, said focusing bond proceeds on utility projects that help create jobs will allow the state's current water and sewer financial assistance fund, nicknamed Pennvest, to be devoted exclusively to residential projects.
But environmentalists contend the Senate bill would allow the funds to be used to bring development to previously untouched "green fields."
A Senate GOP aide said there also are unresolved questions about whether using bond proceeds to help a privately held water company improve its facilities will affect the tax-free status of the bonds.
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