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PennVEST Announces Award Of $14.8 Million To Purchase Verified Nutrient, Sediment Reduction Credits From 5 Successful Bidders In Chesapeake Bay Watershed

On February 7, the PA Infrastructure Investment Authority announced the award of $14.8 million for the purchase of verified nutrient and sediment reduction credits from five successful bidders under the Clean Water Procurement Program.

The awards will purchase up to 32,128 pounds of verified nitrogen reductions, and the associated 6,323.86 pounds of verified phosphorus and 3,457,762.16 pounds of sediment reductions.

PennVEST issued a Request for Proposal on June 30, 2023 for competitive bids to make these reductions.

"The goal of the Clean Water Procurement Program is to incentivize best management practices to reduce nutrients flowing into the Chesapeake Bay using a 'pay for performance' financing strategy," said PennVEST Executive Director, Robert Boos. "This program's investment in best management practices provides another financing mechanism for PennVEST to support clean water projects in the Commonwealth."

A list of the successful bidders follows:

-- Chesapeake Conservancy, Inc. - received a maximum contract award of $185,338.35 for the purchase of up to 930.32 pounds of verified nitrogen reductions along with the associated 136.31 pounds of verified phosphorus and 3,549.33 pounds of sediment reductions.

The BMPs that will generate the verified reductions include waste storage facilities, roof gutters, heavy use area protection, subsurface drains, underground outlets, planting, mulching and diversion channel, among other practices at a beef and poultry farm located in Snyder County, Pennsylvania.

-- Herbert, Rowland & Grubic, Inc. – received a maximum contract award of $2,195,998.29 for the purchase of up to 2,703 pounds of verified nitrogen reductions along with the associated 531 pounds of verified phosphorus and 8,188 pounds of sediment reductions.

The BMPs that will generate the verified reductions include streambank fencing, a slated stream crossing, yard manure storage facility, waste transfer line, heavy use area protection, roof runoff controls, and animal walkways at two dairy and beef farms in Lancaster County, Pennsylvania.

-- HGS, LLC (Subsidiary of Resource Environmental Solutions)- received a maximum contract award of $7,458,474.65 for the purchase of up to 19,617.24 pounds of verified nitrogen reductions along with the associated 4,935.64 pounds of verified phosphorus and 2,770,797.64 pounds of sediment reductions.

The BMPs that will generate the verified reductions include the restoration of wetland by the installation of upland grass buffers and pasture fencing at a family farm located in Adams County, Pennsylvania. These BMPs will be protected in perpetuity with a conservation easement.

-- HGS, LLC (Subsidiary of Resource Environmental Solutions)– received a maximum contract award of $675,016.80 for the purchase of up to 226 pounds of verified nitrogen reductions along with the associated 39 pounds of verified phosphorus and 292,094.40 pounds of sediment reductions.

The BMPs that will generate the verified reductions include the restoration of wetlands and degraded stream corridor, and riparian plantings at a farm in York County, Pennsylvania. These BMPs will be protected in perpetuity with a conservation easement.

-- HGS, LLC (Subsidiary of Resource Environmental Solutions)– received a maximum contract award of $4,349,944.03 for the purchase of up to 8,651.44 pounds of verified nitrogen reductions along with the associated 681.91 pounds of verified phosphorus and 383,132.79 pounds of sediment reductions.

The BMPs that will generate the verified reductions include the restoration of wetlands, and the installation of riparian buffers and fencing at a cattle farm in York County, Pennsylvania.

Parties interested in participating in this program should visit PennVEST’s Clean Water Procurement Program webpage for information on program guidance and future RFPs to be announced in 2024.

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