A new $13 million centralized water filtration plant in Bethel Township is slated to begin construction later this year and be operational near the end of 2027.
Fredericksburg Sewer and Water Authority (FSWA) was awarded a grant through PENNVEST of more than $6.4 million and a low-interest loan of almost $4.6 million to build a new centralized water filtration plant at the site of a decommissioned wastewater treatment plant at 2529 State Route 22 in Fredericksburg.
Project engineer Paul Lutzkanin with Steckbeck Engineering answered on behalf of its client, FSWA, questions emailed by LebTown.
PENNVEST is the Pennsylvania Infrastructure Investment Authority, a financing authority that provides low-cost financial assistance to address water, wastewater, stormwater and nonpoint source pollution problems that impact public health, safety, the environment, regulatory compliance and economic development.
“We are hoping to complete the bidding process and closing on the PENNVEST in December of this year. Construction can begin immediately after closing. The construction phase may take up to a year, depending on weather and a multitude of other factors,” wrote Lutzkanin. “We are hoping to bring the new system online before the end of 2027.”

Lutzkanin provided other details concerning the project.
“The proposed filtration building will be about 62′ x 127′ and will include two basins which will be able to store a total of 300,000 gallons of in-process water,” he wrote, adding that no additional construction will be required offsite. “All existing customers will remain connected and no new customers will be connected as part of this project.”
He noted FSWA provides potable water to 543 households in the Fredericksburg area in addition to a number of commercial, industrial, and non-profit customers. The total number of Equivalent Dwelling Units served is currently 8,858.
“A small section of customers may experience a brief interruption in service during construction, however, we are working to avoid any interruptions,” Lutzkanin stated.
The new plant will address a naturally occurring contaminant in the local water supply.
“Manganese is a naturally occurring mineral and is quite prevalent along the south side of the mountains,” Lutzkanin wrote. “The system will incorporate manganese filters which use a special media called GreensandPlus. The filters operate very similarly to a water softener except that they filter out manganese and iron instead of other naturally occurring minerals which cause water hardness, primarily calcium and magnesium.”
The new system will be an enhancement over the current water treatment method.
“The only filtration performed by the FSWA at this time is via bag filters located at the current water plant at the base of the west water tower (the blue one). Those bag filters will be taken out of service,” added Lutzkanin, who also noted a lot of homeowners on their own wells “have installed whole house filters and they routinely see their water turning reddish-brown when it is time to change the filter cartridge due to filtering out a lot of manganese or iron.”

Project financing
The $2 million difference between the total project cost and provided funding has already been addressed, according to Lutzkanin.
“The FSWA has already financially transferred a property from the sewer side of the Authority to the water side, purchased a tract of land for two additional groundwater sources, paid for the partial development of those two wells and the related aquifer testing, performed geotechnical testing of the proposed plant site, and paid for the design of the project, DEP permitting, preparation of the PENNVEST funding application, and a number of other project related tasks,” Lutzkanin said. “All of those costs have already been paid by the FSWA and are included in the project total for PENNVEST purposes.”
Sen. Chris Gebhard (R-48) and Rep. Russ Diamond (R-102) played integral roles in helping to secure the PENNVEST funding. It was one of two recently announced infrastructure-improvement projects in which they worked on behalf of their constituents.
Read More: (July 2026) Richland Borough officials break ground for new 500,000 gallon water tower
“Reliable water service is a critical piece of building strong, vibrant communities,” said Sen. Gebhard. “Ensuring our infrastructure is operational is a key function of government, and I’m pleased this funding is dedicated to that purpose.”
“Access to safe, clean drinking water is part of what makes Pennsylvania communities appealing to long-term residents and newcomers alike,” Rep. Diamond said. “This funding will help the local municipal authorities provide that key service while doing so without overburdening taxpayers and water customers.”
Lutzkanin noted the new plant will be situated on existing industrial land at the site of the former FSWA wastewater treatment plant, which was taken out of service in 2014 when the new wastewater plant along Little Swatara Creek was placed in service. He wrote the plant was decommissioned and the site has been sitting idle since that time.

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