Jonathan Cox, bond counsel for the Cumberland County Industrial Development Authority, and representatives of United Sustainable Agriculture presented a proposed anaerobic digester project and sought the county’s statutory TEFRA/§147(f) approval process for tax‑exempt conduit financing.
Cox described the transaction as conduit financing among the IDA (issuer), United Sustainable Agriculture (borrower) and F&M Trust (lender). He said the financing would not obligate the county or any taxing authority and called it a non‑recourse obligation to the authority. Cox told the board the project qualifies as a solid‑waste revenue project under applicable treasury regulations and therefore may use tax‑exempt private activity bond volume cap.
United Sustainable Agriculture team members described the project at 500 Carlisle Road, Newville, as capable of processing up to 100,000 tons per year of manure and food waste, with at least 51 percent of inputs from animal manure because the site is in an agricultural preservation zone. The presenters said the digester’s principal outputs are methane (to be sold as renewable natural gas or used on‑site for electricity), liquid digestate (a concentrated fertilizer) and dried fibrous material for bedding.
Presenters said most permits are in hand, including nutrient management plan approval under Act 38, conservation district and ag preservation board approvals, county planning and township land development approvals and an NPTS permit; a general waste management permit meeting with the Department of Environmental Protection (DEP) remained pending and was scheduled for the following week. The team estimated roughly nine trucks per day delivering food waste and said digestion and post‑processing steps substantially reduce odor compared with untreated material.
Commissioners and attendees pressed presenters on municipal impacts, spill cleanup responsibilities, whether the digestate would be marketable outside the operation, and whether the project constitutes a public benefit. Cox and operational staff said the project has involved county conservation officials and the USDA Natural Resources Conservation Service and has received some public/grant funding; Cox said the project is deemed to have public benefit for solid waste purposes under federal treasury regulations and that detailed regulatory explanations would be provided in follow‑up materials.
Cox warned of a timing constraint tied to state volume cap for private activity bonds and said the aim was to close the financing by Dec. 31 to preserve this year’s allocation; he said the IDA had tabled its resolution pending additional materials and planned to reconvene toward noon Friday.
No formal county action was taken at the meeting; commissioners asked for additional documentation (including a more detailed regulatory memo) before placing a final resolution on a future agenda.