CHIP Program Awards Energy Grant to MD Logistics

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Two Grant Programs, Seven Recipients, $2.4 Million in Energy Efficiency and Alternative Fuel Improvements.

Indiana Facilities Awarded Conserving Hoosier Industrial Power and Alternative Fuel Vehicle Grants.

INDIANAPOLIS, INDIANA – Lt. Governor Becky Skillman has announced the awards for two energy related grant programs. Four companies will divide nearly $1.7 million as part of the Conserving Hoosier Industrial Power (CHIP) grant program, and three companies will make nearly $700,000 in fleet vehicle conversions as part of an Alternative Fuel Vehicles retrofit program. Both grant programs use federal funds administered through the Indiana Office of Energy Development.

As part of the Alternative Fuel Vehicle grant program, Indianapolis Yellow Cab received $70,000 and will convert 5 cabs to Compressed Natural Gas (CNG), Republic Services of Indiana will use $500,000 to buy 15 CNG refuse trucks outfitted to use CNG, and the City of Seymour will spend $130,000 on a hybrid-drive refuse truck.

The Conserving Hoosier Industrial Power (CHIP) grant program is making funding available for large energy efficiency projects in Indiana commercial/industrial sector. The first four recipients of CHIP funding in 2011 are Bell Aquaculture of Albany ($467,494.00), Brightpoint North America, L.P. of Plainfield ($500,000.00), MD Logistics of Plainfield ($212,374.00) and Ryobi Die Casting USA in Shelbyville ($500,000.00). These awardees will use the funding for lighting retrofits, HVAC, controls, motor, pump and insulation upgrades.

“These grant programs give companies in Indiana a boost in the right direction,” said Lt. Governor Becky Skillman. “Between significant energy efficiency gains, and the reduction of the use of foreign oil, Indiana’s energy future just got a bit brighter.”

The AFV grant was open to on the road fleet operations in Indiana. There were a number of criteria that had to be met as part of the AFV grant, including demonstrating measurable improvements in fuel efficiency, a reduction in fuel demand, and a reduction in fuel costs. Also as part of the AFV grant process, applicants must work with at least one of the U.S. Department of Energy’s Clean Cities organizations in the state. All three grantees are working with Greater Indiana Clean Cities Coalition. The projects must be complete by January 31, 2012.

The CHIP Program projects must be located in Indiana, and demonstrate measurable improvements in energy efficiency, result in a reduction in energy demand, or implement an energy recycling process. Additional CHIP program grantees will be announced soon. The first round of CHIP funding was completed in 2010. In the first round, 11 companies divided $2.2 million for energy efficiency projects upgrades or retrofits. Both rounds of CHIP grants have been funded through the American Reinvestment and Recovery Act of 2009 (ARRA).

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The Office of Energy Development (OED) was created in December 2005 as an extension of the Indiana energy office. Under the leadership of Lt. Governor Becky Skillman, OED is responsible for the state’s energy policy. For more information visit www.energy.in.gov. or follow OED on twitter, IndianaEnergy.

For Contact:
Eric Burch
317-232-8944
eburch@oed.in.gov

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