Wolf Administration: Nearly $4.5 Million in New Funding Approved to Lower Energy Costs and Create Jobs in Five Pennsylvania Counties

Harrisburg, PA – Today, Department of Community and Economic Development (DCED) Secretary Dennis Davin announced the approval of nearly $4.5 million for five new Pipeline Investment Program (PIPE) projects through the Commonwealth Financing Authority (CFA), that will improve infrastructure, save energy, and create hundreds of new jobs across the commonwealth.

“The PIPE program helps businesses and communities decrease their carbon footprint, lower energy costs, and employ more workers by facilitating the construction of new natural gas pipelines or the extension of current lines into underserved areas,” said Sec. Davin. “Together, these impacts make a big positive impact on regions across the state.”

The approved projects are as follows:

Adams County

ERY Properties, LLC was approved for $84,535 in Pipeline Investment funds for the extension of natural gas service to the Berlin Junction Manufacturing Center located along Brickyard Road in Oxford Township. ERY Properties, LLC proposes to install new natural gas infrastructure into the Berlin Junction Manufacturing Center. The pipeline extension will be constructed and owned by Columbia Gas. Upon completion, 4-inch inch pipe will extend along the roadway through the site branching into 2-inch pipe connecting to four buildings. Once the center—a blighted property—is developed, it will create 377 new jobs. Pipeline Investment Program funds will be used for the installation of 2,300 linear feet of gas line, trenching/backfill, tap-in fees, engineering, and administration costs. The total project cost is $169,070.

Indiana County

Indiana County Commissioners were approved for $1,491,402 in Pipeline Investment funds for the extension of a natural gas pipeline to the 119 Business Park located in Center Township. In cooperation with the Indiana County Development Corporation, the commissioners propose to extend a natural gas pipeline into the 119 Business Park located adjacent to U.S. Route 119. This extension will begin north of Neal Road in Center Township and traverse south to the 119 Business Park. The business park is a 27-acre site that has two pad-ready building sites for future development. The pipeline extension will also provide natural gas accessibility to approximately 25-30 residential parcels and two commercial parcels. Pipeline Investment Program funds will be used toward the construction of approximately 4,100 linear feet of natural gas pipeline and the related professional services, engineering, inspection, administration, and tapping costs. The total project cost is $2,982,804.

Lebanon County

Lebanon Valley Economic Development Corporation was approved for $1,124,182 in Pipeline Investment funds for the extension of natural gas service to Boose Quality Castings in South Lebanon Township. Lebanon Valley Economic Development Corporation, in cooperation with UGI, is planning to install a natural gas pipeline that will provide Boose Quality Castings a connection to an existing pipeline. Boose Quality Castings currently utilizes propane gas for their casting. Converting to natural gas would provide a heat source with less price volatility and allow for $400,000 of previously outsourced heat treating to move in-house. This project will create 15 new jobs and retain 58 current positions, and lower manufacturing costs. Pipeline Investment Program funds will be used toward the construction of approximately 5,700 linear feet of natural gas pipeline. The total project cost is $2,290,000.

Lycoming County

Lycoming County was approved for $287,379 in Pipeline Investment funds to extend a natural gas pipeline to serve a prospective manufacturing company in the Timber Run Industrial Park in Brady Township. A manufacturing company is in negotiations with Lycoming County to purchase a parcel within the industrial park that will provide 135-140 new jobs. This extension will also provide access to natural gas for future companies locating in the Timber Run Industrial Park, which is viewed as a critical economic development opportunity in the area. Pipeline Investment Program funds will be used toward the construction of approximately 3,800 linear feet of natural gas pipeline. The total project cost is $574,758.

Northampton County

Lehigh Valley Economic Investment Corporation, on behalf of Hilltop Center, was approved for $1.5 million in Pipeline Investment funds for the extension of natural gas service along Cherryville Road to the future Lehigh Valley Resort & Spa and future residential units located in Lehigh Township. In cooperation with UGI, Lehigh Valley Economic Investment Corporation is planning to install 11,800 linear feet of natural gas pipeline that will provide the former Mary Immaculate Center a connection to an existing pipeline. The former center was recently purchased and is being renovated into a 206-room hotel, restaurant, spa and wellness center. Currently, the building utilizes oil for heating. Converting to natural gas would provide the future hotel a more efficient heat source. The extension will also provide natural gas services to the future development of 475 residential units, six existing businesses, and 32 residents along Cherryville Road will be able to tap into the pipeline extension. Once completed, the extension will support 200 new full-time jobs. Pipeline Investment Program funds will be used toward the construction and excavation and grading of approximately 11,800 linear feet of natural gas pipeline. The total project cost is $3,113,238.

Though Pennsylvania has a vast network of natural gas pipeline infrastructure, some areas require funding assistance to construct the “last mile” of the pipeline to extend that network to and residents. Created by the Wolf Administration in November 2016, PIPE provides grants to construct the last few miles of natural gas lines to business parks and existing manufacturing and industrial enterprises, which will result in the creation of new jobs in the commonwealth while providing access to natural gas for residents. Applicants eligible for PIPE funding include businesses, economic development organizations, hospitals, municipalities, and school districts.

For more information about DCED and the CFA, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, Twitter, and LinkedIn.

MEDIA CONTACT: Casey Smith, DCED, casesmith@pa.gov

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