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Emmaus awarded $11.8 million for PFAS mitigation; timeline and contract terms move quickly
Summary
Borough officials told council the borough received an $11.8 million Penvest award (about $9.8 million grant and roughly $2 million loan) for PFAS mitigation; bids open imminently and a Penvest requirement about litigation recoveries is a sticking point.
Emmaus Borough Council was briefed Monday that the borough has been awarded $11,800,000 through Penvest to address PFAS contamination and that the borough must move quickly to meet grant and loan conditions.
Mister Pepe, the borough manager, told council, “We were awarded $11,800,000 for PFAS mitigation. Of that 11.8, about 9.8 of that is grant money. And, the remaining 2,000,000 is, less than 2%, loan money.” He said staff has already met with Penvest multiple times and that a bid opening for construction work was scheduled the following day with about 25 prospective bidders expected.
The award carries tight deadlines and several clearance steps. Pepe said borough staff, the solicitor and the engineers have held multiple meetings with Penvest and that Penvest and the Department of Community and Economic Development (DCED) will need to approve bid results and required paperwork. He said the borough is attempting to have required Laguna (Penvest) paperwork and ordinances ready for council consideration within weeks to meet Penvest’s timetable.
Council members pressed on next steps and contract details. Budget committee chair Mister Dufresne and others said they had reviewed the proposal and raised a legal question that Penvest’s counsel has referred to the attorney general’s office. Pepe described the outstanding legal issue: language in Penvest’s acceptance that would require the borough to reimburse Penvest if the borough later received litigation recoveries tied to PFAS claims. He said the borough’s position is that any litigation recoveries should be dedicated to continued PFAS mitigation rather than returned to Penvest.
Pepe described the technical and regulatory urgency: “We know that we have 3 wells that are teetering on those very low PFAS numbers,” he said, noting some wells are close to current EPA and DEP thresholds. He said the borough’s engineers and project manager (Gannett Engineering) will oversee the construction contract and that staff expects significant review of bids to confirm compliance with Penvest and state bid requirements.
A member of the public, Megan of 944 North Seventh Street Circle, asked whether litigation recoveries could be counted as program income and used for mitigation. Pepe replied that is exactly the borough’s argument and that negotiations are ongoing with Penvest’s counsel and the attorney general’s office.
Council members thanked public works staff and borough employees for their work preparing for the project and for responding to recent water system incidents while the borough advances the PFAS project.
No formal council vote on the grant package or contract award occurred at the meeting; council was briefed on the award, on the fast timetable for paperwork, the imminent bid opening, and on a legal issue staff is attempting to negotiate with Penvest’s counsel.
