Environment (Hazardous Materials)

The purpose of this bill is to incentivize the construction and operation of a limited number of high-efficiency Combined-Cycle Gas Turbine (CCGT) electrical generation facilities, with an output of between 100 MW and 500 MW, by creating an Electricity Production Tax Credit (EPTC) and bonus credits. These credits would offset state corporate tax liability while facilitating the increased availability of clean, cost-effective, high-efficiency, and energy production. CCGT power plants are proven technology that can provide significant dispatchable power production to meet Delaware’s growing need for dependable energy, while promoting grid stability that will enable the integration of renewable energy generation. Having the CCGT facilities built within Delaware will improve the energy security of our citizens while reducing power transmission charges and energy loss. The value of the Electricity Production Tax Credit (EPTC) can be increased via bonus credits if the CCGT power-generating facility is built on a brownfield or the current or former site of a power plant. Additional bonus credits can be earned if the plant’s operation exceeds certain high-efficiency thresholds and if it incorporates carbon-capture technology into the design. The value of the credits realized by the facility operator would result from the quantity of electricity delivered. Most CCGT plants operate at a capacity factor of 50% to 85%. A 500 MW power plant, operating within these margins, would be expected to produce somewhere between 2.2 million and 3.7 million MWh per year. At a maximum annual 65% production capacity, a 500 MW plant could serve the needs of approximately 210,000 homes. The total value of the credits for each eligible facility receiving the tax credits established under this bill is limited to $15 million annually. The number of facilities eligible for the tax credits established under this bill will be no more than three statewide.

This Act seeks to update the fine structure for major commercial polluters. In addition, this Act increases the amount of penalty funds directed to communities near facilities with violations. In summary, this Act imposes higher fines for violations of the following chapters: Chapter 22 of Title 3, relating to nutrient management programs; Chapter 60 of Title 7, relating to environmental control; Chapter 62 of Title 7, relating to oil pollution liability; Chapter 63 of Title 7, relating to hazardous waste management; Chapter 71 of Title 7, relating to noise control and abatement; Chapter 79 of Title 7, relating to chronic violator status; Chapter 91 of Title 7, relating to the Hazardous Substances Cleanup Act; and Chapter 13 of Title 16, relating to stream pollution. In addition, 40 percent, rather than 25 percent, of the civil and administrative funds collected under various environmental regulatory chapters will be appropriated to the Community Environmental Project Fund under § 6042 of Title 7. The Fund will give priority to community environmental projects located within a 2-mile radius of the violation or infraction. This Act adds to the fund 40% of the fines collected for oil pollution and noise control and abatement violations, under Chapter 62 and Chapter 71 of Title 7. This Act further allows DNREC to appeal a decision by the Environmental Appeals Board relating to chronic violator status.