The Burgettstown-Smith Joint Sewage Authority has received a $2.6 million low-interest state loan to fund a project that will extend sewage lines to homes near Plum Run in Smith Township.
Gov. Tom Corbett announced the allocation of Pennsylvania Investment Authority funds this week. The state program, also known as PENNVEST, will disburse $91 million this year in grants and low-interest loans to be used for water infrastructure projects throughout the commonwealth. In total, 22 projects in 10 counties in the state will receive funding.
More than half of the residential septic systems in the area around Plum Run have been malfunctioning or overflowing, causing sewage to spill into the creek and creating an ecological hazard. The loans will fund a project to extend more than a mile of new sewer pipeline and three miles of sanitary sewer collection line to nearly 100 homes.
The PENNVEST loan will cover all costs for the project with a term of 20 years and an interest rate of about 2.5 percent.
No timeline was given for when construction on the Plum Run project would begin. The Burgettstown-Smith authority will decide how to best implement the loan during the May 8 board meeting.