University Area Joint Authority describes digester, solar purchase and ongoing rate dispute

The University Area Joint Authority updated the Ferguson Township Board on March 18 about major infrastructure projects and a billing dispute with a municipal customer.

Mark Kunkel, presenting UHA’s quarterly report, described an anaerobic digester and sludge dryer project intended to replace the authority’s composting system and to generate biogas and dry biosolids for sale. In the meeting transcript Kunkel described the project as "a $7,475,000,000 dollar project." That figure appears in the transcript and may reflect a transcription or verbal error; UHA did not provide an independent verified total at the meeting.

Kunkel said the drying building is projected to be completed in July and that "the digesters themselves are projected to be operational by December." He told supervisors UHA has contracted with neighboring wastewater facilities (Bellefonte, Tyrone and Mid‑Valley) to accept biosolids and is working with the Centre County Recycling and Refuse Authority to explore organics collection for biogas production. Kunkel also said UHA has a complaint filed in the court of common pleas related to a rate dispute with State College Borough, which the authority said involved withholding payments over an expired agreement.

On energy, Kunkel said UHA repurchased its Solar 1 array on 01/01/2025 for $4,600,000 and reported the array is producing about 80% of the plant’s electrical power. He told the board those energy savings and anticipated methane sales are included in net‑benefit calculations and that there are potential federal tax credits (he cited "almost $30,000,000" in credits) that could increase project savings but remain subject to national policy developments.

Supervisors asked for supporting projections and documents. "Do you remember what the projection was of the amount that it was gonna be?" one supervisor asked about the solar output; others asked whether the net‑benefit numbers included the expanded contracts for organics and the possibility of lower energy performance. Kunkel said staff would provide the projection and that the solar reduction and methane revenue are included in the authority’s net‑benefit estimates.

A board member also raised a lingering odor near the UHA site; Kunkel said UHA had invested in an odor‑control project as part of the biodigester effort and that he would follow up to determine why residents still noticed odors.

Next steps: board members asked staff to provide the original projections and supporting documentation for the solar and net‑benefit calculations; UHA agreed to follow up on the odor reports and to coordinate a possible site tour for supervisors.