Pennsylvania American Water Receives Over $64 Million in PENNVEST Funding for Statewide Water Infrastructure Upgrades
The Shapiro administration announced yesterday that Pennsylvania American Water has been awarded a combination of grants and low-interest loans from the Pennsylvania Infrastructure Investment Authority (PENNVEST) totaling $64,396,571. This funding will support four major water infrastructure improvement projects across Butler, Columbia, Fayette, and Monroe counties, enhancing water quality, reliability, and system resilience for thousands of Pennsylvanians.
“These projects represent our ongoing commitment to delivering safe, high-quality, and reliable water and wastewater services to our customers,” said Tony Nokovich, Vice President of Engineering at Pennsylvania American Water. “We are deeply grateful to PENNVEST for approving these funding requests. These initiatives will allow us to continue upgrading critical infrastructure, ensuring consistent water quality while meeting stringent state and federal environmental standards. Ultimately, these projects will directly benefit our customers and communities across the state.”
Butler County: Upgrading the Oneida Valley Water Treatment Plant
In Butler County, the company’s Butler water system filter improvement project will receive a $28,500,000 loan from PENNVEST. This project is designed to increase the reliable treatment capacity at the Oneida Valley Water Treatment Plant.
The project will include the installation of new flocculation, sedimentation, and filtration trains, which are essential components in water treatment that help remove contaminants and ensure safe drinking water. By replacing aging infrastructure and enhancing the plant’s operational efficiency, the project will improve the system’s performance during periods of peak water demand, a critical consideration as communities grow and water usage patterns shift.
The loan comes with attractive interest terms—1.743% for the first five years and 2.179% for the remainder of the 20-year loan period—making it a cost-effective means of investing in long-term infrastructure resilience.
Fayette County: Eliminating Lead Service Lines
In Fayette County, Pennsylvania American Water will use a combination of a $2,988,661 PENNVEST grant and a $2,411,339 loan to replace approximately 389 identified lead water service lines in the City of Uniontown, as well as in North Union and South Union townships.
Lead service lines, which were commonly installed decades ago, can pose serious health risks when lead leaches into drinking water. Removing these lines ensures that residents have access to safer, cleaner water and supports ongoing state and company initiatives to eliminate lead from public water supply systems. This initiative aligns with Pennsylvania American Water’s broader commitment to proactive water quality management and compliance with regulatory standards.
Columbia County: PFAS Treatment at Berwick District
Per- and polyfluoroalkyl substances (PFAS) have been identified as emerging contaminants that can affect water quality and public health. Pennsylvania American Water’s project in Columbia County will construct a new PFAS treatment facility in the Berwick District, along with other system improvements.
This initiative received a $1,087,628 grant and a $24,362,372 loan from PENNVEST. The new facility will be built at the existing operations building, with a transmission main connecting current wells to the new PFAS treatment infrastructure. It will feature granular activated carbon vessels, which are highly effective at removing PFAS from water supplies, and will also replace and upgrade existing chemical treatment systems.
Additional improvements include the installation of reliable backup power systems, enhanced chemical containment measures, and upgrades to flood protection at the well site, ensuring operational resilience even during extreme weather events. The project loan carries an initial interest rate of 1% for the first five years, followed by 1.743% for the remainder of the 20-year term.
Monroe County: PFAS and Manganese Treatment at Pocono Pine Hill
In Monroe County, Pennsylvania American Water will construct a combined PFAS and manganese treatment facility at the company’s Pocono Pine Hill Well Station. The project received a $562,432 grant and a $4,484,136 loan from PENNVEST.
The scope of work includes the demolition of the existing well house and construction of a new, state-of-the-art treatment facility. This facility will feature adsorbers for PFAS removal and green sand filters for iron and manganese removal, addressing both chemical and mineral contaminants. The project also includes the replacement and upgrading of existing chemical treatment equipment and the addition of a backwash recycling system, which will improve operational efficiency and sustainability.
The loan terms are set at 1% interest for the first five years, increasing slightly to 1.743% for the remaining 20-year term, providing a low-cost financing solution for critical water quality upgrades.
A Commitment to Clean Water and Public Health
Governor Josh Shapiro emphasized the importance of water infrastructure investment in Pennsylvania, stating, “Every Pennsylvanian has a constitutional right to clean air and pure water — and my Administration is investing historic resources to make sure that right is protected all across our Commonwealth. PENNVEST-funded projects help communities modernize their water systems, protect public health, and create jobs. By working together across party lines and at all levels of government, we’re delivering results for the people of Pennsylvania and building a stronger, more resilient future.”
Economic and Community Impact
Beyond improving water quality and reliability, these projects are expected to generate significant economic benefits. Construction and related activities will create jobs and stimulate local economies in Butler, Columbia, Fayette, and Monroe counties. Improved water systems also enhance community resilience, reduce maintenance costs over time, and help meet the growing demand for safe, reliable water supplies in residential, commercial, and industrial sectors.