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Township weighing nonbinding letter of intent to loan sewer allocation for regional Project PA
Summary
Manager Bruce updated commissioners that partner municipalities and the Lehigh County Authority have requested a letter of intent to explore loaning sewer allocation to support a large regional user (Project PA); staff said current allocation is not available until DEP releases additional flows in 2027 but recommended pursuing a nonbinding letter and legal review.
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Township Manager Bruce told the board that Upper Macungie and the Lehigh County Authority have asked the township to consider loaning sewer allocation to accommodate a large regional user dubbed "Project PA." Staff said they have prepared a nonbinding letter of intent that would signal willingness to explore terms but would not commit the township to a permanent transfer.
"We are looking at things, like fees for that, rental of that allocation…it's something we're kind of looking at," Bruce said, noting staff had done an initial availability review and that the township currently does not have allocation to sell but anticipates additional flows may be released by DEP in 2027. Commissioners discussed the risk that loaning allocation to a large user could limit capacity for other local projects between 2028 and 2031; staff said proposed next steps would include a 90‑day window for legal review and term negotiations and that the township could consider rental or tapping fees to recapture value into its sewer fund.
No binding agreement was approved at the workshop; staff sought direction to proceed with legal review and to circulate the draft nonbinding letter of intent to partners so more detailed negotiations can occur within the stated 90‑day timeframe.

