RENOVO — The Bechtel Corp. is backing out of its plans to develop a multi-million dollar natural-gas fired electric generating plant on the former railyard in Renovo Borough, dashing the community’s hopes for revitalization and private investment.

Mike Flanagan, president and CEO of the Clinton County Economic Partnership, confirmed the decision to The Express early Friday.

“It’s true, they told us late yesterday,” Flanagan said.

Flanagan subsequently issued the following statement on behalf of the Partnership:

“Faced with ongoing appeals from environmental groups, Renovo Energy Center (REC) has decided to discontinue its plan for a $1 billion gas to electric power plant that was to be built in the borough at the former Renovo Industrial Park,” the statement started.

Flanagan termed the news as “sad and disappointing.”

“REC’s consultants first approached county officials nine years ago. Two years ago, the Clean Air Council, Penn Future and the Center for Biological Diversity filed an appeal against the Department of Environmental Resources and REC over the air quality permit that was approved for the plant. Only until recently did the Pennsylvania Environmental Hearing Board schedule a hearing date on the matter that could have extended into October. The involved parties were recently asked by the environmental hearing judge to discuss settlement talks, but to no avail. Faced with the lack of settlement talks, the project was officially scrapped.”

REC then issued this statement:

“Renovo Energy Center LLC will discontinue development of the proposed combined-cycle plant in Renovo, Pa. After more than eight years, we do not see a path to a reasonable conclusion of the project’s air permit appeal, and have made the difficult decision to discontinue development. We are grateful to the people of Renovo for the welcome and support our team has received over the years.”

Flanagan added, “I don’t know what to say other than this: it is a very sad, frustrating and disappointing day for the Renovo area and Clinton County. I firmly believe that 98 percent of the people living there wanted this project. It would have been such an economic boost to the area during the 30-month construction time frame, and the taxes for the local taking bodies would have helped out. And we would have had a site cleaned up with private funds.

“But the constant delay tactics won out. It’s just a downright shame. REC has been and would have continued to be great for the community, which sorely needed something like this. And the expected end user would have followed through with that community support. We need to thank REC for its large investment over the years in trying to bring this project to Renovo.”

Flanagan thanked Renovo Mayor Gene Bruno, Renovo Council and Ann Tarantella for their support, as well as the Renovo Community Trade Association, the Clinton County Commissioners, state Rep. Stephanie Borowicz, state Sen. Cris Dush, the Department of Environmental Protection, the Partnership Operating Board and Jim Russo, who was the first one on the ground with the consultants looking for a site. The former railyards was chosen as a potential site because of its proximity to water, natural gas from the Marcellus Shale and the power grids that cross in the area.

Mayor Bruno expressed disappointment.

“It is financially a loss of revenue to all three sectors — Renovo, the county and school district,” he said.

Bruno said he typically looks at situations from a coaching perspective.

“We got upset, so now we can sit around and lick our wounds or get back up and say ‘what’s next?” he said. “It is not about who won or who lost, it’s about regrouping and moving forward.”

Bruno noted that the borough has been “behind the 8 ball for quite awhile.”

“It would be easy to quit, but that will not happen. We have good people and a strong council and I remain positive about the future.”

Bruno thanked Flanagan and all those involved with the process over the last decade.

Renovo Borough Council President Ann Tarantella expressed her displeasure towards the decision.

“It’s a setback for us,” she said. “It’s a big mistake and it should go through. But here we are, back at step one.”

The borough previously voiced its support for the energy plant, citing the ability to bring jobs and revenue to the borough and surrounding areas.

Tarantella said the prolonged court dealings between Bechtel Corp. and various environmental groups are the cause.

“They just prolonged it. It’s actually the investment backers who backed out and caused them to pull back,” she said.

Borough Vice President Pattie Rauch told The Express she’s also disappointed in the decision.

“It’s very disappointing. I feel like Renovo really needed this, considering our rural location and being so far off the beaten path,” Rauch said. “If not this, what else will we ever get to come here?”

Much like Bruno, Rauch expressed her thanks to Flanagan and others.

“I can’t thank Mike Flanagan and Jim Russo enough. They have been at the forefront of this project for years and really went to bat for Renovo,” she said.

According to Board Vice President Jeff Snyder, whose terms have existed through a large portion of the company’s efforts, the news is disappointing to hear.

“I’m just very disappointed. I think that it’s very sad for the loss of job opportunities for Western Clinton County,” Snyder said. “I understand the frustration that Bechtel Crop. has gone through all of this time.”

The decision comes after years of legal battles and push-back to the proposed gas-fired plant. Most recently, the Clean Air Council, PennFuture and the Center for Biological Diversity challenged the project’s air permit approved by the Department of Environmental Protection.

DEP had granted the developer an extension of 18 months to give Bechtel the ability to build the power plant.

Appeal hearings, filed by Clean Air Council, Center for Biological Diversity and Citizens for Pennsylvania’s Future against the permit extension, were set to take place in August and September of this year.