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Wednesday, January 25, 2017

Scarnati Announces $1 Million Pipeline Investment Grant in Elk County

(HARRISBURG) – The Commonwealth Financing Authority (CFA) has approved a $1 million state grant for Domtar Paper Company’s installation of a 3 mile pipeline to their facility in Elk County, announced Senator Joe Scarnati (R-Jefferson).

Scarnati, who was instrumental in securing funding for the project, explained that Domtar Paper Company owns and operates the paper mill in Johnsonburg Borough where the pipeline will be installed. The project will consist of converting two existing coal fired boilers to natural gas by partnering with Hunt Marcellus. In order to support the conversion to natural gas, the new 3 mile gas pipeline will be constructed to supply the facility. Due to the savings of the conversion, it will allow the company to invest an additional $12 million into upgrades for the facility over the next 3 years. In addition, the conversion savings and efficiencies will allow the company to retain its current workforce of 355 full time jobs.

“The Pipeline Investment Program was created last year as part of the state budget and I am pleased that we will soon be seeing local benefits from the program,” Scarnati said. “This grant will not only help with hastening the deployment of low-cost energy, but will also play an important role in helping to retain a great number of jobs in Elk County.”

According to Scarnati, the financing was approved at the January 24 CFA meeting in Harrisburg. The Pipeline Investment Program (PIPE) provides grants to construct the last few miles of natural gas distribution lines to business parks, existing manufacturing and industrial enterprises, which will result in the creation and retention of local jobs. Funds may also be used for acquisition, construction and site preparation costs associated with extending natural gas pipelines.

“Domtar appreciates our long-standing partnership with the Commonwealth,” said Thomas Howard, Domtar’s Vice President of Government Relations. “We are grateful that Senator Scarnati recognizes the value of Domtar and the 438 jobs we provide in Elk and Clearfield Counties, as well as the economic benefit provided throughout the entire region. Throughout his public service career, his leadership and counsel have been invaluable and have played a significant role with helping to preserve Domtar jobs in Pennsylvania.”

The Commonwealth Financing Authority (CFA) was established as an independent agency of the Commonwealth to administer Pennsylvania’s economic stimulus packages. The CFA holds fiduciary responsibility over the funding of programs and investments in Pennsylvania’s economic growth.

More information regarding programs administered by the CFA can be found on the Pennsylvania Department of Community & Economic Development website: http://newpa.com/find-and-apply-for-funding/commonwealth-financing-authority.

16 comments :

Anonymous said...

Why is the state calling this an investment? The state is not profiting from the pipeline nor are additional jobs being created at Domtar. I'm sure that Domtar will profit from the conversion but they are a private company. Why didn't they invest in the pipeline since they are profiting from it, not the state?

Anonymous said...

It's starting already, Jobs and growth. Thank you Trump

Anonymous said...

It`s not growth... It`s giving a million bucks of taxpayer money away this year, with more to follow in later years. This is not creating new jobs.

Anonymous said...

This is great! Expect more of this to come. Contractors and construction workers must be happy. Finally some taxes are being used wisely instead of entitlements.

Anonymous said...



White collar WELFARE!!!! If they are going to save enough money
to spend $12 MILLION, they can afford the $1 million for the pipeline.

Also, if Domtar paid for the pipeline they could deduct the cost from
their taxes!!!

WASTE OF TAXPAYERS' MONEY!!!!!!!!!!!!!!!

Anonymous said...

Senator Scarnati since you (and Representative Mike Tursai) both have had your salaries raised by 1.34% to a whopping $134.498.00, you have every reason to make a big noise about something you will take credit for and brag about when elections roll around! But why don’t you thank us PENNSYLVANIA TAXPAYERS, as well, for your raises. [Readers can verify this by going to “PennLive.com”] Oh, and by the way, he also earns an additional per diem of $175.00. If you worked hard all your life and now depend on Social Security and probably an even smaller pension,to pay your bills & live, you received a munificent raise of 0.3% in 2017!!! (Don’t spend it all in one place).

Anonymous said...

Taxes being used wisely ? Handing over money to a multi million dollar company that doesn`t need it. Come on man...

Anonymous said...

$1 million dollars to help a company make $12 million over 3 years? Sounds good to me
and maintaining all those jobs is a great thing.
Remember, soon office paper supplies and newspaper material, toilet paper etc. etc. will not be purchased from China, Japan, Canada etc. paper products will be American made and US companies will buy it. The Federal Govt. will be buying ALL of its paper products from US companies. So this is a wise investment. It will also benefit timber harvesting creating thousands of jobs, equipment sales, etc.
All the tree huggers and environmentalists can make a statement by boycotting toilet paper. Nuff Sed

Anonymous said...



Re: 1:07PM

He should also THANK US TAXPAYERS for GIVING his Corporate Donor
Buddies the MILLION DOLLARS!!!!!!!!!!!!!!!

Anonymous said...

higher taxes are coming.Talk of middle class tax cuts will not happen Wall Street will profit and the middle class will pay .Already they gave millionaires 3.8 % from taxes of health care

Anonymous said...

Get my vote fund new business development. This is a waste. Which will create, Job loss.

Anonymous said...

OBAMA SENT... $221 billion sent to the Palestinians..............$that $221 billion was a waste tooooooo.......

Anonymous said...

Obama sent $221 million sent to the Palestinians.......MEGA WASTE......

Anonymous said...

I think that the US currently for the most part uses paper products from the US. The only exception maybe be Canada.

Anonymous said...

Start watching for Texas and other southern state license plates. There will be jobs, but not for locals.

Anonymous said...

our PA taxes go to pay for public transportation in Pittsburgh and Philadelphia and everyone around here looses their damn minds. Whining that we should be spending that money locally. So Pa taxes go to help a business with 438 direct employees, plus hundreds of local contractors and vendors working a year, plus several hundred loggers, truck drivers, foresters, gas stations working and people still whine. Its a commitment to the area that directly helps the people who live and work in PA.
And when you go to Wal Mart, Target, or any of the other big box stores and buy the cheapest paper on the rack you are buying Chinese paper. plain and simple. Paper that was imported under unfair trade practices ignored by our government. So think before you spout off. This is good for our area and the 1000's of PA families that are directly affected by this state investment. Except for the coal guys. They kind of got screwed on this deal.