EZ Policies for Delaware
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|Policy||Place||Policy Type||Active||Implementing Sector||Summary|
|Accidental Release Program (Delaware)||Delaware: Energy Resources||Environmental Regulations|
Safety and Operational Guidelines
|Yes||State/Province||The Delaware Accidental Release Prevention Regulation contains requirements for owners or operators of stationary sources having regulated extremely hazardous substances onsite to develop and implement a risk management program (RMP) that anticipates and minimizes the chances of catastrophic events.
The U.S. Environmental Protection Agency Region III approved the Delaware Department of Natural Resources and Environmental Control’s (DNREC) request to implement and enforce its accidental release prevention program in place of similar federal requirements on August 7, 2001. The Delaware regulation adopts the Federal requirements found in regulation 40 CFR Part 68 with some adjustments and substitutions. Delaware’s regulation includes additional requirements for sources not regulated by the Federal program.Delaware did not request Federal approval for these more stringent requirements but rather uses State authority under 7 Del. C. Chapter 77 Extremely Hazardous Substances Risk Management Act to implement and enforce these requirements.
|Brownfields Assistance Matching Grants (Delaware)||Delaware: Energy Resources||Grant Program||Yes||State/Province||The Brownfield Assistance Program, administrated by the Delaware Economic Development Office (DEDO) and funded from Delaware Strategic Fund, provides matching grants to owners and developers to encourage the redevelopment of environmentally distressed sites within the state. Brownfield redevelopment is an important tool for Delaware's livable growth, recycling the state's land and cleaning up the environment within areas designed for growth. However, these sites cannot be revitalized without the help of developers, commercial real estate firms, lenders, and property owners. In the past, concerns over liability and the added cost of cleaning up a site have hindered the redevelopment of Brownfields. The state of Delaware understands the risks are higher for these projects and, in response, provides financial incentives and a fast track cleanup process.
The program is administered in collaboration with the Department of Natural Resources and Environmental Control and offers the lesser of up to $100,000 or 50 percent of the costs associated with the investigation and remediation of a Brownfield site. Phase I costs are excluded from the Program and unlike the Delaware Department of Natural Resources and Environmental Control (DNREC)’s Program, each project must have an employment impact of a minimum of five permanent full-time jobs. To be eligible for DEDO’s Program, the owner, prospective owner or developer must first obtain a Brownfield Certification through DNREC that recognizes the site as a Brownfield. After Certification has been obtained, an application can be sent to DEDO for evaluation and processing. Eligibility for Brownfield assistance will be based on the project’s potential to serve a public purpose by maintaining or expanding employment in the State, by maintaining, expanding, or diversifying business and industry in the State, and/or maintaining or increasing its tax base.Associated with the program is the Delaware Brownfields Marketplace, a list of Brownfield sites available for redevelopment in Delaware.
|Clean Energy Technology Device Manufacturers' Credits (Delaware)||Delaware: Energy Resources||Corporate Tax Incentive||Yes||State/Province||Qualified manufacturers can apply for a tax break equal to 75% of the corporation income tax. The incentive is an increase from the Investment and Employment Credit Against Corporation Income Tax, raising the multiplier of the credit for the number of employees from $500 to $750. The business must have made an investment of at least $200,000 in the past 12 months, and must employ at least five people.|
|Climate Action Plan (Delaware)||Delaware: Energy Resources||Climate Policies||Yes||State/Province||To better understand the current and future vulnerabilities and risks to climate change, DNREC Secretary Collin O’Mara directed the Division of Energy and Climate to conduct a statewide climate change vulnerability and risk assessment.
The Delaware Climate Change Vulnerability Assessment reflects the best available climate science, climate modeling, and projections to illustrate the range of potential vulnerabilities that Delaware may face from the impacts of climate change. The Assessment will provide a strong scientific foundation for the development of the state’s adaptation planning and strategy.
The Delaware Climate Change Steering Committee was created to oversee the Assessment process. The Steering Committee’s membership includes some of Delaware’s leading scientists and practitioners. Their charge is to ensure the Assessment adheres to the highest levels of scientific integrity and that the information presented is applicable for future work in the state. Members represent the fields of agriculture, ecosystems and wildlife, climate, public health, water resources, and infrastructure.
In 2000, the Delaware Climate Change Action Plan (DCCAP) was prepared with funding from the Delaware State Energy Office and the U.S. Environmental Protection Agency’s State and Local Climate Change Program. The Center for Energy and Environmental Policy of the University of Delaware researched and wrote the Action Plan with the guidance and advice of the Delaware Climate Change Consortium (DCCC), comprised of representatives from government, business, labor, environment and community-based organizations. In this Action Plan, the DCCC has developed a set of policy options that can reduce Delaware’s greenhouse gas emissions by 7% below the 1990 level. This amounts to a decrease of almost 25% in State emissions by 2010.Three levels of implementation were devised: a Full Implementation scenario involving the adoption of all measures (i.e. 100%); a Major Commitment scenario which seeks to realize 65% of the reductions identified in the DCCAP through aggressive state policies and supporting federal strategies; and a Modest Commitment scenario with 35% of the DCCAP’s reductions targeted for state action and supporting federal initiatives. A detailed emissions reduction policy strategy is included in the DCCAP and is based on detailed analyses of a wide range of policy measures applicable to each sector of energy use. To ensure applicability to Delaware, the final selection of options was determined on the basis of cost-effectiveness. Implementation of the Action Plan will require adoption of a policy agenda that encourages the state’s government, industries, and citizen organizations to participate actively in a wide range of implementation activities. Such cooperation would involve legislative initiatives, community input and support, and education and outreach.
|Community Development Block Grant/Economic Development Infrastructure Financing (United States)||United States: Energy Resources||Grant Program|
|Yes||Federal||Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.|
|DEMEC - Green Energy Fund (Delaware)||Delaware: Energy Resources||Public Benefits Fund||Yes||Utility||Note: The Green Energy Fund regulations are currently under revision to improve program function and meet the requirements of the Delaware Energy Act. The Delaware Division of Energy and Climate webpage will provide details about relevant public meetings and workshops, proposed draft regulations, and other documents during the regulatory revision process.
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, municipal utilities were allowed to opt out of the compliance schedule if they contributed to the Green Energy Fund for investor-owned utilities or created their own green energy fund with an equal surcharge (i.e. $0.000178/kWh). In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of municipal utilities was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.
The Delaware Municipal Electric Corporation (DEMEC), a joint action agency and wholesale electric company representing the state's nine municipal utilities, opted out of the RPS requirements on behalf of the municipal utilities, and the utilities created their own funds. The surcharge for the investor-owned utility fund was doubled in 2007 through legislation, but the surcharge for the municipal utilities was not affected.
DEMEC municipal utility members include: Newark, New Castle, Middletown, Dover, Smyrna, Seaford, Lewes, Clayton and Milford. Each municipal utility has its own distinct fund. Customers of one utility cannot access another utility's fund revenues. As a result, some of the utilities' funds are very limited. Estimated annual income for each utility fund, based on 2008 retail sales data from the Energy Information Administration (EIA), is included below:
|DEMEC Member Utilities - Green Energy Program Incentives (8 utilities) (Delaware)||Delaware: Energy Resources||Utility Rebate Program||Yes||Utility||Note: The municipal electric utilities serving New Castle, Clayton, Lewes, Middletown, Smyrna, and Seaford do not offer any rebates for individual renewable energy systems. Incentives are only available for residents of Dover, Milford, and Newark. Please see the program web site for further information on the use of green energy funds in these jurisdictions. Please also note that the renewable energy incentives offered by the city of Dover are summarized in a separate entry because they are structured differently than those offered by Delaware's other municipal utilities (view the Dover Green Energy Incentive Program). |
Delaware's municipal utilities provide incentives for solar photovoltaic (PV), solar thermal, wind, geothermal, and fuel cell systems installed by their electric customers. Eligibility is limited to systems that are intended to supply on-site energy needs. Incentives are available to both residential and non-residential member-owners, generally up to $15,000 for residential systems and $30,000 for non-residential systems. Both grid-connected and off-grid PV and wind energy systems are eligible for incentives, but systems must serve loads that would otherwise be served by the electric utility. Solar thermal systems used for domestic water heating or in radiant heating applications must reduce or eliminate the need for electric or gas heated water.
In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.
|Dam Safety (Delaware)||Delaware: Energy Resources||Safety and Operational Guidelines||Yes||State/Province||The Delaware Dam Safety Law was adopted in 2004 and provides the framework for proper design, construction, operation, maintenance, and inspection of dams in the interest of public health, safety, and welfare. The law requires licensing, inspections and preparation of emergency action plans (EAPs) for publicly owned dams with a high or significant hazard potential. A dam’s hazard potential classification depends upon the threat to downstream communities and infrastructure in the event of a dam failure and is not related to the condition of a dam. The Delaware Dam Safety Program was developed to reduce the risk of failure of dams and to prevent injuries to persons, damage to downstream property and loss of reservoir storage. The Dam Safety Regulations, adopted on December 11, 2009, establish requirements for licensing existing dams; permitting construction of new dams and repairs to existing dams; conducting inspections; performing maintenance; and preparing EAPs. In 2007, DNREC was awarded state funding to develop Emergency Action Plans for Delaware’s highest priority, state-owned, high-hazard dams.|
|Delaware Electric Cooperative - Green Energy Fund (Delaware)||Delaware: Energy Resources||Public Benefits Fund||Yes||Utility||Note: The Green Energy Fund regulations are currently under revision to improve program function and meet the requirements of the Delaware Energy Act. The Delaware Division of Energy and Climate webpage will provide details about relevant public meetings and workshops, proposed draft regulations, and other documents during the regulatory revision process.
Under the 2005 Delaware renewable portfolio standard (RPS) legislation, electric cooperatives were allowed to opt out of the RPS schedule if they met certain other requirements. One such requirement was that they contribute to the existing Green Energy Fund for investor-owned utilities or create their own green energy fund supported by an equal surcharge (i.e. $0.000178/kWh). In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.
The Delaware Electric Cooperative, the state's lone cooperative, opted out of the RPS requirements and established its own green energy fund. Based on 2008 retail electricity sales data from the DEC annual report, the fund has an annual income of approximately $206,000. The surcharge for the investor-owned utility fund was doubled in 2007 through legislation, but the surcharge for the Cooperative's fund was not affected.The Green Energy Fund supports the Cooperative's Green Energy Program Incentives, which include rebates for distributed renewable energy systems. The eligible technologies listed in this entry are based on those described in the program regulations. Incentive programs for a given technology may or may not be active at any point in time.For more information on eligibility requirements and funding, reference the Delaware Electric Cooperative's Renewable Resource Fund Program guide.
|Delaware Electric Cooperative - Green Energy Program Incentives||Delaware: Energy Resources||Utility Rebate Program||Yes||Utility||NOTE: The Renewable Resource Program will accept requests for grant funding for calendar year 2013 beginning January 9, 2013. Applications for residential PV and geothermal systems will not be accepted after 4:30 pm on January 15, 2013. Applications for all other systems will be accepted until this year’s program budget of $260,481 is exhausted. For 2013, the total annual funds available will be allocated as follows: Small Wind Turbines = 2%, Geothermal Systems = 28%, PV Class A = 50%, PV Class B = 20%.
The Delaware Electric Cooperative provides incentives for solar photovoltaic (PV), solar thermal, wind, geothermal, and fuel cell systems installed by DEC member-owners. Eligibility is limited to systems that are intended to supply on-site energy needs. Incentives are available to both residential and non-residential member-owners based upon average peak demand over a 12 month period. Class A member-owners are defined as those with an average monthly peak electric demand of 50 kilowatts (kW) or less over the previous twelve months. Class B member-owners are those with an average monthly peak electric demand of greater than 50 kW over the previous twelve months. Maximum incentives are up to $7,500 for Class A and $10,000 for Class B and non-profit systems.
Applicants may be required to have an energy audit performed by a Building Performance Institute (BPI) certified contractor prior to grant approval. Energy Star homes may be exempted from this requirement. Both grid-connected and off-grid PV and wind energy systems are eligible for incentives, but systems must serve loads that would otherwise be served by the electric utility. Solar thermal systems used for domestic water heating or in radiant heating applications must reduce or eliminate the need for electric or gas heated water. Renewable energy systems designed and utilized as a third-party ownership or independent power producer are not eligible for grant funding.
Incentive levels and limits vary by technology, system size and sector as follows:
Wind: $1.25/W up to $2,500
Fuel Cells: 20% of installed costs, up to $7,500 for residential systems and $10,000 for non-residential systems
Geothermal Heat Pumps: $800/ton for first two tons and $700/ton for additional capacity, up to $5,000 for residential and $10,000 for non-residential systems.
Systems are subject to a variety of equipment, installation and warranty requirements, including limitations on system orientation and shading for solar energy systems. The Delaware Energy Office processes applications and conducts technical reviews for this program. The program rules do not specify the ownership of renewable energy credits (RECs) associated with system energy production; however, net metering customers in Delaware retain ownership of RECs unless they voluntarily relinquish such ownership.
Background Under the 2005 Delaware renewable portfolio standard (RPS) legislation, electric cooperatives were allowed to opt out of the RPS schedule if they met certain other requirements. One such requirement was that they contribute to the existing Green Energy Fund for investor-owned utilities or create their own green energy fund supported by an equal surcharge (i.e. $0.000178/kWh). The Delaware Electric Cooperative (DEC), the state's lone cooperative, opted out of the RPS requirements and established its own green energy fund.In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.
|Delaware Greenhouse Gas Reduction Projects Grant Program (Delaware)||Delaware: Energy Resources||Grant Program||Yes||State/Province||The Delaware Greenhouse Gas Reduction Projects Grant Program is funded by the Greenhouse Gas Reduction Projects Fund, established by the Act to Amend Title 7 of the Delaware Code Relating to a Regional Greenhouse Gas Initiative and CO2 Emission Trading Program.
The Fund allocates 10 percent of the proceeds derived from the auction of carbon allowances under the Regional Greenhouse Gas Initiative (RGGI) to projects and other actions that result in a measurable reduction of greenhouse gases. Projects must result in quantifiable and verifiable reductions in greenhouse gas emissions in Delaware not otherwise required by federal or state law and not receiving funding from any other state sources.Delaware-based businesses, state/municipal agencies, non-governmental organizations (NGOs) such as business sector associations, homeowner associations, academia and/or non-profit assistance providers are eligible to apply for funding under this Grant Program.
|Delaware Land Protection Act (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||The Land Protection Act requires the Department of Natural Resources and Environmental Control to work with the Delaware Open Space Council to develop standards and criteria for determining the existence and location of state resource areas, their degree of endangerment, an evaluation of their importance, and information related to their natural, historic or open space values.
The Act also established an Open Space Program. The Open Space Program oversees the protection of designated State Resource Areas (SRA). These areas are permanently protected through the buying of various state lands including parks, fish and wildlife areas, forests, nature preserves and cultural sites.
Many SRAs are not protected through acquisition – the intent has not been to purchase all SRAs. Rather, the purpose of the SRAs is to guide state acquisition of open space from willing sellers and to be incorporated by counties in their land use plans.Designation of an SRA does not prohibit development, and does not change the underlying zoning. The designation provides that county ordinances, standards, criteria and/or requirements for SRAs will allow for environmentally sensitive development that protects the natural, cultural and geological resources in those areas.
|Delaware River Basin Commission (Multiple States)||Delaware: Energy Resources|
New Jersey: Energy Resources
Pennsylvania: Energy Resources
New York: Energy Resources
Siting and Permitting
|Yes||State/Province||The Delaware River Basin Commission (DRBC) is a federal-interstate compact government agency that was formed by concurrent legislation enacted in 1961 by the United States and the four basin states (Pennsylvania, New York, New Jersey, and Delaware). Its five members include the basin state governors and the Division Engineer, North Atlantic Division, U.S. Army Corps of Engineers, who serves as the federal representative. The commission has legal authority over both water quality and water quantity-related issues throughout the basin.
Much of the new drilling interest taking place in northeastern Pennsylvania and southern New York is targeted at reaching the natural gas found in the Marcellus Shale formation, which underlies about 36 percent of the Delaware River Basin.
In connection with natural gas drilling, the commission has identified three major areas of concern:
1) Gas drilling projects in the Marcellus Shale or other formations may have a substantial effect on the water resources of the basin by reducing the flow in streams and/or aquifers used to supply the significant amounts of fresh water needed in the natural gas mining process. 2) On-site drilling operations may potentially add, discharge or cause the release of pollutants into the ground water or surface water. 3) The recovered "frac water" must be treated and disposed of properly.
While the Delaware River itself is un-dammed, there are 13 dams within the basin that feed into the river. The Commission holds authority to approve any project that will have a substantial effect on the water resources of the basin.The Commission also has approval authority over energy projects that need to draw water from the basin, including coal plants, biomass plants, and natural gas extraction and power plants.
|Delaware Solid Waste Authority (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||The Delaware Solid Waste Authority (DSWA) runs three landfills, all of which recover methane and generate electricity with a total capacity of 24 MWs. The DSWA Solid Waste Plan includes goals, recommendations, and standards for turning waste into energy for the state.|
|Delaware Strategic Fund (Delaware)||Delaware: Energy Resources||Grant Program||Yes||State/Province||The Delaware Strategic Fund represents the primary funding source used by Delaware Economic Development Authority (DEDA) to provide customized loans and grants to businesses for job creation, relocation and expansion. For businesses considering locating in the state of Delaware, financial assistance may be provided in the form of low interest loans, grants, or other creative instruments to support the attraction of businesses that pay sustainable wages. Assistance terms are negotiated specific to each firm’s individual needs and situation. The process for obtaining Strategic Fund assistance requires completing an Application for Financial Assistance. Competition for the limited amount of funding available each year is strong and approval is not automatic. Applications are first reviewed by the DEDO Internal Investment Committee and if approved will be presented at a Council on Development Finance meeting. If the CDF recommend financial assistance from the Strategic Fund, a formal agreement will be prepared for execution. This agreement will contain business terms plus a customized recapture provision based on forecasted jobs and minimum salary requirements determined by location.|
|Delmarva Power - Green Energy Program Incentives (Delaware)||Delaware: Energy Resources||State Rebate Program||Yes||State/Territory||Note: On July 1st of 2014 the Green Energy Program PV rates changed.
Solar Thermal (Domestic Hot Water, Radiant Heat)
Geothermal Heat Pumps
All systems must be installed by a participating contractor and carry a full five-year warranty. Beginning December 10, 2010 energy audits will be required for all existing buildings prior to grant approval. In addition, for projects undertaken as part of new construction, the building will have to be Energy Star certified in order to qualify for incentives. For further details on systems that qualify for rebates under this program, see the Green Energy Program Rules.
|Dover Public Utilities - Green Energy Program Incentives (Delaware)||Delaware: Energy Resources||Utility Rebate Program||Yes||Utility||NOTE: Starting Nov 25, 2013 City of Dover PV grants programs have been suspended for revision.
In 2010 the Delaware RPS was amended by SS 1 for S.B. 119 and the section (26 Del. C. § 363) detailing the obligations of electric cooperatives was slightly revised. While these amendments change several other opt-out requirements, the provision mandating green energy fund contributions in the event of an opt-out remains unchanged.
|Environmental Control (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||This act has various provisions set for the local governments for greenhouse gas trading initiatives, solid waste recycling and water protection. The act also includes the Clean Air Act Operating Permit Program with a detailed account of fees to be paid for air pollution sources. The act establishes the collection of CO2 allowances, with 65 percent of the proceeds directed to the Sustainable Energy Utility (SEU). The SEU may use the funds for the promotion of energy conservation, energy efficiency, renewable energy, and energy financing.|
|Environmental Permit Application Background Statement (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||The purpose of Chapter 79 of Delaware Title 7 is to ensure that the State has adequate information about the background of applicants or regulated parties for the purposes of processing permits and conducting other regulatory activities in fields that directly impact Delaware’s air and water quality and environmental health.
Regulated parties obtaining permits to discharge pollutants, manage wastes, or make commercial use of the coastal zone and the State's subaqueous lands must submit an annual report, thus allowing the State to identify parties with histories of environmental violations or criminal activities, or who cannot demonstrate the required responsibility, expertise or competence which is necessary for safe operation.
The subchapter also defines penalties for parties with chronic violator status, providing a mechanism to prevent or correct circumstances in which: (1) One or more of the traditional enforcement tools and regulatory programs of the Department appear insufficient to conform behavior and deter future violations by the regulated party; or(2) The regulated party appears to be treating penalties and other sanctions as merely an on-going business expense rather than as symptomatic of underlying problems and threats to the State's environment that must be addressed and corrected.
|Extremely Hazardous Substances Risk Management Act (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||This act lays out provisions for local governments to implement regulations and standards for the management of extremely hazardous substances, which are defined and categorized as follows:
Extremely toxic substances: Substances regulated because of their extreme toxicity, ability to disperse, and quantity.
Explosive substances: Substances regulated because of their extreme reactivity, instability or explosiveness and creation of associated pressure waves, either inside of confined spaces or in the open atmosphere.
Flammable and combustible substances: Substances regulated because of their ability to ignite and burn rapidly, thus creating the possibility of high thermal exposure.This act provides the foundation for the Accidental Release Program, which regulates extremely hazardous substances through the Delaware Department of Natural Resources and Environment Control.
|Forestry Policies (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||Delaware's forests are managed by the State Forest Service (DFS), within the State Department of Agriculture. In 2010, the Forest Service issued its Resource Assessment and Strategy documents:
Delaware Forest Resource Assessment: http://dda.delaware.gov/forestry/061810_DFS_ResourceAssessment.pdf
Statewide Forest Strategy: http://dda.delaware.gov/forestry/061810_DFS_Strategy.pdfThe Forest Strategy document sets several goals with respect to biomass energy, including an analysis of the resource, developing restrictions on wood energy facilities, promoting a Fuels for Schools program, and developing at least one new market for low-value wood such as bio-energy.
|Fuel Mix Disclosure (Delaware)||Delaware: Energy Resources||Generation Disclosure||Yes||State/Territory||Delaware's 1999 restructuring law (HB 10) authorized the state Public Service Commission (PSC) to develop environmental disclosure requirements and consumer protection standards for green power marketing. The PSC’s rules require all electric suppliers to disclose to the commission aggregate proportions of fuel resource mix for the electricity supplied to customers in Delaware for each quarter. In addition, electric suppliers must disclose their fuel resource mix to retail electric customers annually via bill inserts and "each other quarter' on the supplier's web site or by customer request. A standard label is not required; however, the reports must include:
|Green Energy Fund (Delaware)||Delaware: Energy Resources||Public Benefits Fund||Yes||State/Territory||Note: The Green Energy Fund regulations are currently under revision to improve program function and meet the requirements of the Delaware Energy Act. The Delaware Division of Energy and Climate webpage will provide details about relevant public meetings and workshops, proposed draft regulations, and other documents during the regulatory revision process.
The Delaware public benefits program, enacted through the state’s electric utility restructuring law in March 1999, collects approximately $3.2 million annually for efficiency and renewable programs and $0.8 million annually for low-income programs. Funds for the public benefit programs are collected from Delmarva Power and Light customers (the state's only investor-owned utility). Separate public benefit funds exist for the Delaware Electric Cooperative (DEC) and the state's municipal utilities through the Delaware Municipal Electric Corporation (DEMEC). Prior to July 2007, the Delmarva fund collected $0.000178 per kWh (0.178 mills/kWh) to fund renewable energy and energy efficiency* incentive programs but collections were increased to $0.000356 per kWh (0.356 mills/kWh) by S.B. 35 of 2007. This money is collected and distributed through the Green Energy Fund, which supports the following programs:
Green Energy Program Incentives - providing cash grants from the Green Energy Fund for renewable energy technology installation. Funds may also support energy efficiency education programs.
Technology and Demonstration Grants - providing cash grants for projects which demonstrate the market potential of renewable energy technology.**
Research and Development Grants - supporting qualifying research and graduate studies in energy efficiency and renewable energy technologies.**
An average of 0.095 mills/kWh (approx. $800,000 annually) is collected to fund low-income fuel assistance and weatherization programs. These funds are administered by the Department of Health and Social Services’ (DHSS) Division of State Service Centers, which currently administers similar federally-funded programs. Contact information for DHSS can be found here.
*S.B. 44 of 2005 added biodiesel manufacturing facilities to the list of eligible projects and clarified that energy efficiency was eligible for support from the Fund. **S.B. 266 of 2010 authorizes the State Energy Office to suspend the Research and Development and Technology and Demonstration Grants in order to fund the Green Energy Program Incentives if demand for that program exceeds funding levels. Given that the Green Energy Program is in fact oversubscribed as of August 2010, action from the State Energy Office is likely.
|Hazardous Waste Management (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||The act authorizes the Delaware Department of Natural Resources and Environment Control (DNREC) to regulate hazardous waste and create a program to manage sources of hazardous waste. The act includes sources that generate, store, transport, treat or dispose of hazardous wastes. The DNREC's Division of Waste and Hazardous Substances was developed for the management of hazardous waste under the provisions of this act. The division operates numerous programs to meet the requirements of the act.|
|Home Performance with Energy Star Loans (Delaware)||Delaware: Energy Resources||State Loan Program||No||State/Territory||The current round of funding for the Home Performance with Energy Star program has been exhausted, please reference program web site for future funding information.
The Delaware Sustainable Energy Utility (SEU) is now offering rebates and loans for residents that make qualifying energy efficiency improvements as part of the Home Performance with Energy Star program. In order to qualify for incentives, the applicant must be the registered owner of a separately metered, single-family detached or attached residence where the equipment is installed. Attached units include duplexes, townhouses, and condos. Multi-family residential, commercial, and newly constructed buildings are not eligible for incentives under this program.
The program offers several different incentive paths to qualifying homeowners. The standard measures path offers rebates for specific energy efficiency measures such as home insulation, windows, doors, air sealing, and water heaters. The performance measure path offers progressively increasing incentives based on the level of energy consumption reduction, starting with a minimum energy consumption reduction of 20%. The high introductory performance rebate levels currently offered are scheduled to expire March 31, 2012. Prescriptive incentives are also available for heating and cooling measures.
Unsecured loans ranging from $1,000 - $20,000 with terms of up to 10 years are now available to finance up to 100% of the remaining costs of improvements. Interest rates are set at 3.99% for performance measure path improvements and 6.99% for standard measure path improvements. Renewable energy projects may also be financed through the program as long as the participant finances at least $500 worth of other qualifying improvements. All renewable energy measures must meet the eligibility standards of the Delaware Green Energy Incentives programs.* Energy savings associated with renewable energy installations is not included in the calculation of savings for Performance Path measures.
The first step to participating in the program is to have an energy audit performed by a program-approved contractor. Based on the results of the energy audit, the contractor will provide the homeowner with a series of energy savings recommendations, but it is up to the homeowner to decide which upgrades they would like completed.** The contractor then completes the selected improvements and submits a completed final application for incentives on behalf of the homeowner. If improvements totaling more than $500 are made within 6 months of the energy audit, the homeowner also qualifies for a rebate of $250 against the cost of the energy audit. The program will only provide incentives for improvements made on or after August 18, 2010.
Please see the program web site or contact an SEU representative for further program information. The Delaware SEU is a non-profit organization created by the state of Delaware to foster a sustainable energy future for the state through conservation, efficiencies and the use of renewable energy sources.
*The list of eligible renewable energy technologies corresponds to those eligible for Green Energy Program incentives.
|Interconnection Guidelines (Delaware)||Delaware: Energy Resources||Interconnection||Yes||State/Territory||Note: Delaware law (26 Del. C. § 1014) requires the Delaware Public Service Commission (PSC), Delaware Electric Cooperative (DEC), and municipal utilities to develop interconnection rules using as a guide the Interstate Renewable Energy Council's (IREC) model interconnection rules and the U.S. Department of Energy's best practices for interconnection. This entry largely addresses the rules used by Delmarva Power, the state's largest utility.
Delmarva, Delaware's only investor-owned electric utility, has four basic levels of interconnection based on system size and system type (inverter-based or non-inverter-based). In June 2011 the PSC issued Order No. 7984 approving final revised rules to implement net energy metering pursuant to the requirements of SB267. Order No. 7984 provides, among other things, that Delmarva would file revised tariffs, applicable Interconnection Standards for Generators, and such other forms as may be necessary to comply with Order No. 7984 within 30 days of the July 10, 2011 publication of these final rules in the Delaware Register of Regulations.
Effective August 8, 2011, Delmarva's new guidelines apply to interconnections of all types of distributed generation systems of less than 10 MW to the electric distribution system for the utility. Delmarva now utilizes a four-tiered approach to determine the level of review required before a system may be connected to the grid. Different levels of review are subject to specific technical screens, review procedures, and time lines. Generally speaking, the review process becomes more extensive and time consuming with increasing system size. Below are the basic criteria* for determining the level of review required for a prospective project.
Click here to view documents detailing Delmarva's technical standards and interconnection agreements.
Utilities may not charge any processing fees to Level 1 applicants and processing fees are limited to $50 plus $1/kilowatt (kW) of capacity for Level 2 requests and $100 plus $2/kW of capacity for Level 3 and 4 requests. The regulations also contain provisions for dispute resolution, record retention and utility reporting requirements.
Additional insurance requirements vary by the Level of interconnection. The Level 1 interconnection agreement specifically states that applicants are not required to obtain general liability insurance as a condition of interconnection approval, however Delmarva does advise its customers to consider obtaining appropriate coverage to cover potential liability. For small generator facilities with a nameplate capacity of 1MW or above, the customer is required to carry adequate insurance coverage. Section 7 of the interconnection agreement for Levels 2,3 and 4 requires continuous liability insurance of at least $2 million per occurrence and $4 million in aggregate for systems of 1 MW or larger. Section 7 also specifies that the policy must name the utility as an additional insured party
Delaware Electric Cooperative's (DEC) interconnection guidelines are similar to Delmarva's old guidelines. For renewable-energy generators 25 kW or less, systems must comply with all applicable safety and performance standards established by the National Electric Code (NEC), IEEE and UL. These systems are also eligible for net metering. DEC customers with systems greater than 25 kW are required to carry at least $1 million in liability insurance per occurrence and $1 million in property-loss insurance. Higher amounts of coverage may be required at the discretion of the DEC, although S.B. 8 states that utilities are not permitted to require "customers who meet all applicable safety and performance standards to install excessive controls, perform or pay for unnecessary tests, or purchase excessive liability insurance". An external disconnect switch is required for systems larger than 25 kW.
For more information on the standards set by each utility, including some individual municipal utilities, please visit the Delaware Green Energy Program web site.*The general descriptions here are not a comprehensive listing of all testing and review criteria. Please see the actual rules for more details and additional restrictions that may apply.
|Natural Gas Regulation - Delaware Public Service Commission (Delaware)||Delaware: Energy Resources||Generating Facility Rate-Making||Yes||State/Province||The Delaware Public Service Commission regulates only the distribution of natural gas to Delaware consumers. The delivery and administrative costs associated with natural gas distribution are determined in base rate proceedings before the Commission. The recovery of costs associated with the natural gas used by customers is determined annually as part of fuel adjustment proceedings. As a result of this process, rates for natural gas will typically change at least once a year. Fuel adjustment rates for natural gas may also change during the annual recovery period when the projected recovery of gas costs exceeds limits set for the over or under-collection of gas costs. Occasionally, natural gas distribution companies are permitted by their tariff to collect additional fees, often called 'riders', to recover unanticipated or extraordinary expenses. For instance, both regulated natural gas distribution companies have an 'environmental rate rider' to recover costs associated with the cleanup of pollution from old manufactured gas sites. These rider rates are determined in separate proceedings before the Commission. The Commission sets the natural gas tariff regulations for each Delaware utility. Tariffs for Delmarva Power and Light Company and the Chesapeake Utilities Corporation are dependent on the county and service area.|
|Net Metering (Delaware)||Delaware: Energy Resources||Net Metering||Yes||State/Territory||In Delaware, net metering is available to any customer that generates electricity using solar, wind or hydro resources, anaerobic digesters, or fuel cells capable of being powered by renewable fuels. Grid-interactive electric vehicles are also eligible for net metering treatment for electricity that they put on the grid, although these vehicles do not themselves generate electricity. The maximum capacity of a net-metered system is 25 kilowatts (kW) for residential customers; 100 kW for farm customers on residential rates; two megawatts (MW) per meter for non-residential customers of Delmarva Power and Light (DP&L); and 500 kW per meter for non-residential customers of Delaware Electric Co-Op, Inc.(DEC) and municipal utilities. The DEC and municipal utilities are "encouraged" by statute to offer net metering for non-residential customers with eligible systems up to 2 MW in capacity. Systems must be intended primarily to offset all or part of a customer's electricity requirements. It is important to note that while state law requires the DEC and municipal utilities to offer net metering under certain terms, the administrative rules adopted by order of the Delaware Public Service Commission (PSC) only apply to DP&L.
Delaware expanded the state's net-metering policy with S.B. 267 to allow customers to aggregate individual meters, to participate in net-metering via a subscribers "sharing a unique set of interests" to community-owned system or and aggregation of a customer's multiple accounts, to allow net-metering systems to provide up to 110% of a customers' expected aggregate electricity consumption, extending net-metering to leased and third party owned systems, and for single or aggregation of a customer's multiple accounts, and extending net-metering to fuel cells as well as renewable energy fuel cells for community-owned systems.
Customers are generally credited in kilowatt-hours (kWh), valued at an amount per kWh equal to the sum of delivery service charges and supply service charges for residential customers, and equal to the sum of the volumetric energy (kWh) components of the delivery service charges and supply service charges for non-residential customers, for any net excess generation (NEG) in a billing period. NEG is carried over to subsequent billing periods to offset a customer's consumption in those billing periods until all credits are used or at least until the end of a 12-month annual period. In essence, NEG is carried over to the customer's next bill at the utility's retail rate. The default annual period begins during the month in which the system is interconnected, but the customer is permitted to change the period once in order to better utilize excess generation. An exception to retail crediting exists for certain community-owned systems (i.e., those with multiple subscribers). Subscribers to the output of a community-owned system that is located behind a customer meter or as a stand-alone facility only receive retail credit if they are located on the same distribution feeder as the facility. Those that are not on the same distribution feeder only receive credit at the wholesale energy supply rate.
Customers may request a payment for unused NEG at the end of the annualized period at the supply service rate, but it does not appear that they are required to do so, meaning that NEG can be rolled over indefinitely at the choice of the customer. Should the customer request a payment for annual NEG, the supplier is permitted to submit the payment as a bill credit if it is less than $25.00. Customers retain ownership of renewable-energy credits (RECs) associated with electricity produced and consumed by the customer.
Competitive utilities -- including competitive municipal utilities and competitive electric cooperatives -- must provide net-metered customers electric service at nondiscriminatory rates that are identical, with respect to rate structure and monthly charges, to the rates that a customer that is not net metering would be charged. Competitive utilities may not charge a net-metered customer any stand-by fees or similar charges, with the exception that the Delaware Energy Office will promulgate rules that allow DEC and municipal electric companies to request to assess non-residential net-metered customers a fee or charge "if the electric utility's direct costs of interconnection and administration of net metering for these customer classes outweigh the distribution system, environmental and public-policy benefits of allocating the costs among the [utility's] entire customer base."
All net-metered systems must meet all applicable safety and performance standards established by the NEC, the IEEE and UL. Competitive utilities must develop interconnection rules by using as a guide the Interstate Renewable Energy Council's (IREC) model rules and the best practices identified by the U.S. Department of Energy. Competitive utilities may not require eligible net-metering customers who meet all applicable safety and performance standards to install excessive controls, perform or pay for unnecessary tests, or purchase excessive liability insurance.
Net-metering is accomplished using a single meter capable of registering the flow of electricity in two directions. An additional meter or meters to monitor the flow of electricity in each direction may be installed with the consent of the net-metered customer, at the expense of a competitive utility. If the existing meter of an eligible customer is incapable of measuring the flow of electricity in two directions, then the utility is responsible for all expenses involved in purchasing and installing a bi-directional meter. However, if a larger capacity meter is required to serve the customer, or if a larger capacity meter is requested by the customer, then the customer must pay the utility the difference between the larger capacity meter investment and the metering investment normally provided under the customer's service classification. If an additional meter or meters are installed, the net energy metering calculation must yield a result identical to that of a single meter.
Utilities are authorized to disallow additional net-metered energy systems if the aggregate capacity of all net-metered systems exceeds 5% of the capacity necessary to meet the electric utility's aggregated customer monthly peak demand for a particular calendar year.
History Net metering was expanded significantly in July 2007 by S.B. 8, which extended net metering to all customer classes, added biogas and fuel cells as eligible technologies, addressed the ownership of RECs, and increased the prior individual system limit of 25 kW, among other changes. The law was significantly amended by S.B. 85 in 2009 to extend net metering to farm service customers on residential rates; remove provisions requiring annual forfeiture of net excess generation (NEG); revise language relating to ownership of renewable energy credits produced by net metered systems; and, to expand the aggregate program capacity limit from 1% of Electric Supplier's aggregated customer monthly peak demand to 5% of Electric Supplier's aggregated customer monthly peak demand. Separately, S.B. 153 enacted in September 2009 extends net metering to the owner of a grid-integrated electric vehicle. Rules incorporating these changes were adopted by PSC Order No. 7698 in December 2009.Delaware enacted legislation (S.B. 267) in July 2010 that expanded the state's net-metering policy. Regulations implementing these changes were adopted by the Delaware Public Service Commission (PSC) in June 2011 (see DE PSC Order No. 7984) with an effective date of July 10, 2011.
|PJM Interconnection (Multiple States)||Delaware: Energy Resources|
Illinois: Energy Resources
Indiana: Energy Resources
Kentucky: Energy Resources
Maryland: Energy Resources
Michigan: Energy Resources
New Jersey: Energy Resources
North Carolina: Energy Resources
Ohio: Energy Resources
Pennsylvania: Energy Resources
Tennessee: Energy Resources
Virginia: Energy Resources
West Virginia: Energy Resources
District of Columbia: Energy Resources
|Interconnection||Yes||Non-Profit||PJM (originally Pennsylvania, Jersey, Maryland) Interconnection is a Regional Transmission Organization (RTO) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The PJM region has an area of 214,000 square miles, a population of about 60 million and a peak demand of 163,848 megawatts.|
|Pollution Prevention Act (Delaware)||Delaware: Energy Resources||Environmental Regulations||Yes||State/Province||This act lays out objectives for pollution prevention, education and outreach.
The Department shall create a multimedia waste reduction assistance program to provide technical assistance to targeted industries, focusing on small companies within the industry because, for the most part, they do not have the economic or technical resources necessary to acquire recommendations on how to effectively minimize their wastes. The program will be made available to other industries which request assistance. The overall objective of the multimedia opportunity audit program is to reduce or recycle, to the maximum extent practicable, all waste streams within an industry.
An information clearinghouse shall be established and located at the Delaware Economic Development Office. The clearinghouse will contain a database of pollution prevention technologies and case studies of technology applications.
The Department shall increase public awareness of the need for individual and community based pollution prevention programs by conducting educational workshops and industry seminars.
The Department shall produce a pollution prevention newsletter to be distributed to industry and the public.The Implementation Committee shall select the target industry and location for the initial technical assistance program. The Committee shall evaluate the technical assistance program 1 year after the program commences or upon completion, whichever is earlier. The Committee shall then select a second target industry or location for the technical assistance program.
|Public Utilities Tax Rebate (Delaware)||Delaware: Energy Resources||Corporate Tax Incentive||Yes||State/Province||This rebate is part of the Blue Collar Jobs Act, which establishes tax breaks for businesses that have sustainable jobs and make significant investments in the state. Firms meeting the criteria for targeted industry tax credits are eligible for a rebate of 50 percent of the public utilities tax imposed on new or increased consumption of natural gas and electricity for four years. The public utilities tax rate is 4.25 percent. The utility tax on the consumption of electric by licensed manufacturers and food or agribusiness processors is reduced from 4.25 percent to 2 percent.|
|Qualifying RPS State Export Markets (Delaware)||Delaware: Energy Resources||Renewables Portfolio Standards and Goals||Yes||State/Province||This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Delaware as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (Indiana, North Dakota, South Dakota, Virginia) may be lower.|
|Renewable Energy Facilities Revolving Loan Fund (Delaware)||Delaware: Energy Resources||Loan Program||Yes||State/Province||Renewable Energy Facilities Revolving Loan Fund provides loans at market to below-market interest rates to businesses that cannot otherwise obtain capital, provided that those businesses will create or retain jobs in industries that promote energy efficiency and/or recycling. The new fund was made possible with a $500,000 grant from the U.S. Department of Commerce, which was matched by the Delaware Strategic Fund. Loan proceeds can only be used for the following: manufacturing, integrating, fabricating and assembling alternative energy equipment in the State of Delaware. Alternative energy equipment is defined as wind, solar, geothermal, fuel cells, and biomass.|
|Renewables Portfolio Standard (Delaware)||Delaware: Energy Resources||Renewables Portfolio Standard||Yes||State/Territory||In 2005, S.B. 74 established a renewables portfolio standard (RPS) requiring retail electricity suppliers to purchase 10% of the electricity sold in the state from renewable sources by 2019-2020 (the compliance year, or CY, runs from June - May). S.B. 19 of 2007 increased the RPS target to 20%, with 2.005% required to come from solar photovoltaics (PV). In July 2010 the general renewables target was revised yet again by S.S. 1 for S.B. 119 to 25% by CY 2025-2026, with at least 3.5% from PV. The 2010 amendments did not significantly alter the existing annual renewable energy benchmarks for CY 2010 -2011 through CY 2019 -2020. The annual PV benchmarks were accelerated for CY 2011-2012 through CY 2018-2019, although the existing CY 2019-2020 requirement of 2.005% PV was only slightly modified to the current level of 2.0%. In July of 2011, S.B. 124 was enacted, allowing for qualified fuel cell projects to generate 1 REC for each MWh of energy produced and permitting qualified fuel cell system RECs to be translated to solar RECs (SRECs) at a ratio of 6 MWh of qualified fuel cell generation to per 1 SREC, capping out at a maximum of 30% of the SREC requirements. Qualified fuel cell projects in the state now have to be capable of operating off of renewable energy rather than being required to do so.
The RPS applies to the state's investor-owned utilities, municipal utilities, and rural electric cooperatives. However, municipal utilities and rural electric cooperatives were initially allowed to opt out of the RPS requirements if they established a voluntary green power program and created a green energy fund. All of which chose to do so. The July 2010 amendments removed this exemption option, but replaced it with an option allowing municipal utilities and rural electric cooperatives to opt out of the standard by developing and implementing a comparable RPS by 2013. Sales to industrial customers with a peak load of more than 1,500 kilowatts (kW) are exempt from the standard's requirements.
Eligible renewable-energy technologies include solar electric, wind, ocean tidal, ocean thermal, fuel cells powered by renewable fuels, hydroelectric facilities with a maximum capacity of 30 megawatts (MW), sustainable biomass, anaerobic digestion, and landfill gas. Eligibility definitions for hydroelectric facilities and sustainable biomass were developed by the Delaware Department of Natural Resources and Environmental Control (DNREC) in CDR § 7-100-106, separately from the RPS rules developed by the Delaware Public Service Commission (PSC) in CDR § 26-3000-3008. The annual compliance benchmarks as revised in July 2010 are listed in the table below.* It should also be noted that the PV target is not in addition to the main target, it is included within it.
Compliance Year Eligible Renewables PV
2008-2009 3.00% 0.011%
2009-2010 4.00% 0.014%
2010-2011 5.00% 0.018%
2011-2012 7.00% 0.20%
2012-2013 8.50% 0.40%
2013-2014 10.00% 0.60%
2014-2015 11.50% 0.80%
2015-2016 13.00% 1.00%
2016-2017 14.50% 1.25%
2017-2018 16.00% 1.50%
2018-2019 17.50% 1.75%
2019-2020 19.00% 2.00%
2020-2021 20.00% 2.25%
2021-2022 21.00% 2.50%
2022-2023 22.00% 2.75%
2023-2024 23.00% 3.00%
2024-2025 24.00% 3.25%
2025-2026 25.00% 3.50%
Energy sold or displaced by a customer-sited eligible energy resource can generate renewable energy credits for RPS compliance, provided the system is sited in Delaware. The output from generators of less than 100 kW may be aggregated for RPS compliance. The PSC will certify generation units as "eligible energy resources". Certified generators are entitled to a renewable energy credit (REC) for each megawatt-hour (MWh) of energy they generate. Delaware RECs are tracked by the PJM-EIS Generation Attributes Tracking System (GATS). A REC can generally be used for RPS compliance in any compliance year that begins less than three years after the date the REC is created. The exception to this is when RECs that are held by the Delaware Sustainable Energy Utility (SEU), which is required to act as a REC aggregator for customer-sited renewable energy facilities. The three-year REC lifetime is "tolled", or suspended, during any period in which a REC is held by the SEU. This provision was added by S.B. 173 in July 2009 and revised rules incorporating the change were adopted in December 2009 by the PSC.
Suppliers must submit report an annual report detailing their compliance status. Suppliers who fail to comply with the standard's requirements must pay into the Delaware Green Energy Fund an alternative compliance payment (ACP) of $25 per MWh of shortfall. The ACP increases in subsequent years for suppliers who elect to pay it. After the first year that suppliers pay the ACP, the ACP increases to $50 per MWh. After the second year in which it is used, the ACP increases to $80 per MWh. In July 2010 the solar ACP (SACP) levels were increased to $400 per MWh for the first use, $450 per MWh if the electricity supplier has paid a SACP of $400 in any previous year and to $500 per MWh for uses in subsequent years. These levels represent a uniform increase of $150 per MWh to the SACP levels established in 2007, which ranged from $250-$350 per MWh. The State Energy Coordinator has the authority to review and adjust the ACP and solar ACP given certain market conditions.
Several compliance multipliers are currently available under the Delaware RPS. The details of these multipliers are described below:
The 2010 amendments added provisions allowing the compliance schedules for eligible renewable energy resources and PV resources to be frozen for Commission-regulated electric companies (i.e., not including competitive suppliers) if the costs of achieving an annual target exceed certain thresholds. For eligible renewable energy resources, the cost threshold is 3% of total retail electricity costs during the same year. For PV the cost threshold is 1% of total retail electricity costs during the same year. The total cost of compliance must be calculated to include the cost of state rebate programs, REC or SREC purchases by suppliers, and ACPs and SACPs paid by suppliers. Suppliers may recover actual dollar-for dollar costs of RPS compliance -- with a conditional exception for ACPs and SACPs -- through a non-bypassable surcharge on customer bills.
The 2010 legislation also created a Renewable Energy Task Force composed of a variety of industry stakeholders and tasked with making recommendations about the establishment of trading mechanisms and other structures to support the growth of renewable energy markets in Delaware.
The passage of S. B. 124 in July of 2011 amended the RPS to allow energy output from a Qualified Fuel Cell Provider Project in fulfilling a portion of the requirements under the RPS Act. A qualified fuel cell provider project is a fuel cell power generation project located in Delaware owned and/or operated by a Qualified Fuel Cell Provider. A qualified provider is defined in S.B. 124 as a commercial operation which manufactures fuel cells capable of being run on renewable fuels and is designated as an economic development opportunity by the Delaware Economic Development Office and the DNREC. The energy produced by such projects shall fulfill the commission-regulated electric company's state-mandated REC and SREC requirements. The fulfillment of the equivalent of 1 REC is equal to each MWh of energy. These projects will fulfill no more than 30% of the SREC requirements at a ratio of 6 MWh of RECs per 1MWh of SRECs. Beginning in compliance year 2012, S.B. 124 makes Delmarva Power and Light responsible for the RPS obligations of all its customers, and creates a process to assure that any supplier contracts in place are grandfathered through the transition. SB 124 also creates a regulatory framework by which the Delaware Public Service Commission will review a Tariff to be filed by Delmarva deploying Delaware-manufactured fuel cells as part of a 30MW project.
*The 2007 amendments set two separate compliance schedules. Schedule 1 set the general renewable energy benchmarks while Schedule 2 applied only to wholesale renewable energy purchases for Standard Offer Service (SOS) for compliance years 2007, 2008, and 2009. Under Schedule 2, the benchmarks that were in place during the 2005 and 2006 SOS auctions were preserved. The table lists the Schedule 1 requirements for CY 2007-2008 through CY 2009-2010. The July 2010 amendments replaced these two separate schedules with a single compliance schedule beginning in CY 2010-2011.
|SREC Procurement Program (Delaware)||Delaware: Energy Resources||Performance-Based Incentive||Yes||State/Territory||The Delaware Solar Renewable Energy Certificate (SREC) Procurement Program is designed to assist in the creation of a market for SRECs and to provide a mechanism for the procurement of SRECs to ensure that retail electricity suppliers meet the requirements set forth inDelaware's Renewable Energy Portfolio Standards Act (REPSA).
|Solar Renewable Energy Credits (SRECs) (Delaware)||Delaware: Energy Resources||Performance-Based Incentive||Yes||State/Territory||A Delaware SREC Pilot Procurement Program was approved in November of 2011 by the Delaware Public Service Commission. The program is expected to begin in April 2012, the details of the pilot program can be found here.
In 2005, Senate Bill 74 established a renewables portfolio standard (RPS) requiring Delaware retail electricity suppliers to purchase 10% of the electricity sold in the state from renewable sources by 2019. Senate Bill 19 of 2007 increased the RPS target to 20%, and added a requirement that a portion of the requirement be met with solar photovoltaic (PV) resources. The standard was expanded again to 25% renewables and 3.5% photovoltaics by 2026 by S.S. 1 for S.B. 119 enacted in July 2010. The PV target began at 0.011% for the June 2008 - May 2009 compliance year (CY 2009) and accelerates slowly over time towards an ultimate target of 3.5% for compliance year 2025-2026. The RPS applies to the state's investor-owned utilities, retail electricity suppliers, municipal utilities, and rural electric cooperatives. Municipal utilities and rural electric cooperatives are allowed to opt out of the RPS requirements if they establish a comparable RPS program for their own ratepayers by 2013, and establish a green energy fund.
Under Delaware law, a solar renewable energy credit (SREC), is equivalent to one megawatt-hour (MWh) of retail electricity sales in the state that is derived from a qualifying PV resource. Electricity suppliers must purchase SRECs in order to meet their compliance obligations under the law, or pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SREC purchases. The SACP operates as a ceiling on the price that a supplier would pay for SRECs used for compliance with the Delaware RPS. In general, the SACP is initially set at $400 per MWh, but increases to $450 per MWh if the electricity supplier has opted for the ACP in any previous year, and then increases to $500 with any subsequent uses. The Delaware Energy Office has the authority to review and adjust the ACP and SACP given certain market conditions. As of August 2012, sales of Delaware-sourced SRECs tracked on the PJM-EIS Generation Attributes Tracking System (GATS) averaged $189 per MWh, down from $260 MWh average for June 2010-August 2011.
Under this system SRECs represent a potentially significant source of revenue for owners of qualifying PV facilities with a value determined by demand in the trading market. In Delaware, net metering customers retain ownership of SRECs (or RECs) for energy produced and consumed by the customer. A generator remains eligible to generate SRECs for as long as the facility remains certified as an eligible generator. SRECs submitted for compliance with the RPS must have been created no more than three years prior to the year in which they are used for compliance. In other words, an SREC may generally be used for compliance by an obligated electricity supplier for the compliance year during which it was generated or the two subsequent compliance years.* An obligated entity may use an SREC to comply with the PV carve-out of the RPS or with the general renewables requirement. For the purposes of compliance, an SREC generated by a customer-sited facility physically located within Delaware and installed on or before December 31, 2014 is granted a 300% multiplier if used to fulfill the general renewables requirement. Thus, one SREC equals one SREC for the PV carve-out, but three RECs used to fulfill the general renewables requirement.**
In order to begin producing Delaware-eligible SRECs, generators must be certified by the Delaware Public Service Commission (PSC) as an eligible generator. In order to qualify as an eligible generator, customer-sited facilities (i.e., behind the meter facilities) must be physically located within the state of Delaware. Generation from other facilities qualifies for Delaware's standard if the generator is located within the PJM footprint, or if the electricity is imported into the PJM and tracked through the PJM Market Settlement System. When the generator has been issued a certification number, they may create an account with the PJM-EIS Generation Attribute Tracking System (GATS). The GATS is used to track the generation and transfer of SRECs from an eligible facility. SRECs are created in the GATS based on energy production meter readings uploaded to the system by the generator. Unlike some other states, Delaware does not allow small generators to use engineering estimates of energy production as the basis for creating SRECs.
The passage of S. B. 124 in July of 2011 amended the Delaware RPS to allow energy output from a Qualified Fuel Cell Provider Project in fulfilling a portion of the requirements under the RPS Act. A qualified fuel cell provider project is a fuel cell power generation project located in Delaware owned and/or operated by a Qualified Fuel Cell Provider. A qualified provider is defined in S.B. 124 as a commercial operation which manufactures fuel cells capable of being run on renewable fuels and is designated as an economic development opportunity by the Delaware Economic Development Office and the DNREC. The energy produced by such projects shall fulfill the commission-regulated electric company's state-mandated REC and SREC requirements. The fulfillment of the equivalent of 1 REC is equal to each MWh of energy. These projects will fulfill no more than 30% of the SREC requirements at a ratio of 6 MWh of RECs per 1MWh of SRECs.
* The Delaware Sustainable Energy Utility (SEU) is required to act as a REC aggregator for customer-sited renewable energy facilities. The three-year REC lifetime is "tolled", or suspended, during any period in which a REC is held by the SEU.
|Solar Renewable Energy Credits (SRECs) Spot Market Program (Delaware)||Delaware: Energy Resources||Performance-Based Incentive||Yes||State/Territory||A Delaware SREC Pilot Procurement Program was approved in November of 2011 by the Delaware Public Service Commission. The details of the pilot program can be found here.
** Delaware also has allows a small credit bonus of 10% for solar electricity produced by solar (or wind) installations for which at least 50% of the equipment (on the basis of cost) is manufactured in Delaware, or for which 75% of the labor and construction is performed by an in-state workforce.
|Solar Rights Law (Delaware)||Delaware: Energy Resources||Solar/Wind Access Policy||Yes||State/Territory||In July 2009 Delaware enacted legislation (SS 1 for S.B. 49) prohibiting private covenants (i.e., homeowner's association rules) restricting the use of solar energy systems on residential rooftops. The law specifically prohibits any "covenant, restriction, or condition contained in a deed, contract or other legal instrument which affects the transfer, sale or any other interest in real property that prohibits or unreasonably restricts the owner of the property from using a roof mounted system for obtaining solar energy on his or her property".
Although the wording of the legislation refers generally to "solar energy", the title of the bill references only photovoltaic (PV) systems as eligible for these protections. Only single-family residential structures which are not considered common property are eligible for these protections. This includes single-family townhouses with at least two unattached sides and for which roof maintenance is the responsibility of the owner and not the association. The law originally only applied to roof-mounted systems, but SB 316 of July 2010 amended the law to include ground-mounted systems on residential property of at least a half-acre. The law allows for some reasonable restrictions on ground-mounted systems including requirements for fencing, landscaping, or other means of shielding the sight of systems from adjacent streets.The law does not affect any covenants in existence prior to January 1, 2010, although it does allow existing restrictions to be amended with a two-thirds vote of property owners. The law does not apply to zoning restrictions or similar limitations adopted by local governments. The law also does not amend, nullify, or affect the enforceability of any conservation easement or historic preservation covenant, nor does it apply to any restrictions on land owned by a maintenance corporation or homeowner's association.
|Sustainable Energy Utility (Delaware)||Delaware: Energy Resources||Public Benefits Fund||No||State/Territory||The Sustainable Energy Utility (SEU) was created in June, 2007 with the purpose of serving as the "one-stop-shop" for sustainable energy services in Delaware. The mission of the SEU is to allow all energy end-users in the State, regardless of market segment, fuel use, or utility service, to have access to incentives for renewable and efficient energy technologies. The SEU's structure and programs are still in development.
When launched, the SEU will manage programs targeting energy efficiency, low income energy use, customer-sited renewable energy, alternative fuel vehicles and clean transportation, and green building. The SEU's programmatic targets include: - a 30% reduction in annual energy usage for program participants by 2015, with 1/3 of the participants drawn from the residential sector - The creation of a Solar Lifeline for low-income residents under which each low-income household will be entitled to 200 kilowatt-hours of low-cost solar electricity generated within the state and not to exceed 5 cents by 2015 - Weatherization of 800 low-income households per year outside of the Weatherization Assistance Program
Targets for green building, clean vehicles, and customer-sited renewable energy will be determined at a later date. The customer-sited renewable rebates will target solar electric, solar thermal, geothermal, and small wind systems. Rebate levels will be based on national best practices, but they cannot exceed 50% of the incremental cost of the system and they must decline over time.
The SEU will manage the Green Energy Fund in cooperation with the Delaware Energy Office. To generate additional revenue, the SEU is empowered to charge a fee for aggregating renewable energy credits and selling them on behalf of customer generators. The SEU can also enter into shared savings arrangements for its energy efficiency programs and can also issue special purpose bonds between 2007 and 2015 which are capped at $30 million.
In addition to establishing the SEU, Senate Substitute 1 for Senate Bill 18 of 2007 also details the structure of the SEU and requires that the state contract with a third-party manager for the SEU's administration and finances.The SEU is currently under development.
|Tax-Exempt Bond Financing (Delaware)||Delaware: Energy Resources||Bond Program||Yes||State/Province||The Delaware Economic Development Authority provides tax-exempt bond financing for financial assistance to new or expanding businesses, governmental units and certain organizations that are exempt from federal income taxation.
Eligible Projects: The availability of tax-exempt status for bonds issued to finance a given project is governed by various provisions of the Internal Revenue Code of 1986 (the “Code”) and the regulations and administrative rulings of the Internal Revenue Service.
In general, eligible projects include the following major categories:
Qualified 501(c)(3) Bonds - Tax-exempt bonds can be issued for the benefit of organizations that are tax exempt under Section 501(c)(3) of the Code, if 95 percent of the net proceeds of the bonds are used by the organization in furtherance of its exempt purpose. Depending on the project being financed, certain other limitations may apply.Exempt Facility Bonds - Tax-exempt bonds can be issued to finance certain types of utility projects, including sewage facilities, solid waste disposal facilities, facilities for the local furnishing of electricity and gas and other types of facilities.
|Wind Access and Permitting Law (Delaware)||Delaware: Energy Resources||Solar/Wind Permitting Standards||Yes||State/Territory||In July 2009, the Delaware legislature enacted a law (HS 1 for H.B. 70) prohibiting unreasonable public and private restrictions on the installation of wind energy systems on single-family residential properties. The prohibition includes restrictions put in place by county and local governments; homeowner's associations; and organizations formed for the management of commonly owned properties. The provisions apply only to wind energy systems that qualify for support under the state Green Energy Fund -- which offers incentives for residential wind energy systems -- or similar programs administered by Delaware's State Energy Office.
The law also defines a limited set of reasonable restrictions that governments and associations are permitted to use in regulating residential wind energy systems. Any limitations put in place may not be more restrictive than the following: