Sen. Marie Pinkney

In addition to other changes, this Substitute requires that a feasibility study be completed by March 1, 2026, a year before the remainder of this Act will be enforced. It also adds 5 additional members to the Committee issuing the feasibility review and appoints the Director of DSHA, or the Director’s designee, as the chair of this Committee. It also directs the Committee to answer a number of specific questions about the feasibility of this Act. Similar to HS 1 to HB 70, HS 2 to HB 70 differentiates between large property owners and small property owners, recognizing that smaller property owners may find lead certification to be prohibitively expensive and may need more time and assistance to comply with this Act. To that end, this Substitute bill defines large property owners as persons that own or control 20 or more rental units, while small property owners are defined as persons who control fewer than 20 rental units. In addition to different deadlines, small property owners may certify a multi-unit property by inspecting only 5 units of the property. All owners may request a certificate deferral if lead inspectors or certified contractors are not available or if remediation or abatement would create a significant economic burden on the property owner. Unlike HB 70, small and large property owners must obtain lead free or lead safe certification before a rental unit is turned over to a new tenant, but no later than 4 years after the Act is implemented. As in HB 70, if the rental unit is uninhabitable, the landlord must provide alternative housing while the unit undergoes lead abatement or remediation. Recertification for lead safe units must occur prior to commencement of any rental agreement more than 4 years after the date the unit was last certified. Units must be recertified as lead free or lead safe if a lead-based paint hazard is discovered in the rental unit or if individuals residing in the unit develop elevated lead blood levels. Similar to HB 70, this Act creates a Lead-based Paint Hazard Control Grant and Loan Program. Preference for grants must be given to families with young children, pregnant individuals, or tenants regularly visited by children under 6 years old. For landlords with 5 or few units, grants or loans may be issued for 100% of the costs incurred to obtain certification. For landlords with 6-19 units, 50% of the costs may be covered by the fund. A landlord may not raise the rent on a rental unit that benefits from a grant or loan under this program for 3 years. It also permits the lead-based paint hazard control grant and loan program to issue loans to large property owners for 10% of the costs associated with lead abatement or remediation if the landlord can show the expenditure would be a significant financial burden. This Substitute bill further requires DHSS to provide an annual report to the Governor and the General Assembly regarding the number and types of certifications issued under this Act, as well as any violations or civil penalties issued. Prior to filing a complaint for eviction, this Substitute bill requires the landlord to provide documentation that the property in question is in compliance with this Act. No documentation is required if a complaint is filed because the tenant refuses to provide reasonable access to the rental unit so that the landlord may comply with this chapter. As in HB 70, this Act also does the following: (1) Establishes a Lead-Based Paint Remediation Certification Committee to study the available workforce and available public funding to support the inspection and remediation efforts required by this Act along with the feasibility of meeting deadlines established under this Act. (2) Prohibits landlords from discriminating against individuals because they make a complaint or assist in an investigation or proceeding relating to a lead-based paint hazard in a rental unit or premises. (3) Prohibits landlords from discriminating against individuals residing in a unit who have elevated blood lead levels or children or pregnant individuals who may be affected by lead-based paint hazards. (4) Requires that contractors performing lead-based paint abatement or remediation under the Delaware State Lead-Based Paint Program provide for the safety of workers performing lead-based paint remediation work, including free blood testing for workers at least every 3 months. Aside from the feasibility review, this Act will not be implemented or enforced until March 1, 2027.

This Act broadens the scope of a special fund administered by the Office of the Deaf and Hard of Hearing that provides telecommunications assistance to Delaware residents who have deafness, hearing loss, or speech disabilities related to deafness or hearing loss. This Act authorizes the office to provide residents with assistive devices that facilitate communication or provide users with information pertaining to emergencies. It also authorizes the Office to employ individuals to administer the program, provide education, and manage program resources. This Act adds restrictions on how money in the Fund may be spent and requires a three-month reserve be maintained to ensure financial solvency of the Fund. This Act also requires the Office of the Deaf and Hard of Hearing to file an annual report with the Governor, the Chief Clerk of the House, and the Secretary of the Senate concerning the performance of the fund in the previous fiscal year.

This Act allows drug manufacturers or their agents and wholesalers to ship dialysate drugs and devices directly to home dialysis patients without a pharmacy license.

Energy Storage Systems provide benefits to the electric grid, including grid stabilization, managing peak energy demand, and providing backup power during outages. Energy Storage Systems can provide substantial cost savings to residential, commercial, and industrial electricity customers. The construction of Energy Storage Systems will promote economic growth and job creation in Delaware. This resolution directs the Delaware Sustainable Energy Utility (DESEU) to initiate and undertake a study to assess and analyze the costs and benefits of the adoption of Energy Storage Systems, both in front of and behind the meter, by all electric public utilities in Delaware. The resolution also directs the DESEU to conduct a pilot program and provide guidance and a level of funding, to be determined by the DESEU, to support Delmarva Power & Light Company, the Delaware Municipal Electric Corporation, the Delaware Electric Cooperative, and one independent power producer to deploy at least one battery storage pilot project in Delaware to serve their Delaware service territory. The DESEU is to submit a comprehensive report detailing the findings from the battery storage pilot program and the cost-benefit study and analysis of Energy Storage Systems in Delaware on or before June 1, 2026.

This Act requires the Delaware Public Service Commission to ensure that all regulated utilities do not use customer funds to subsidize unregulated activities for example, lobbying activities, political contributions, charitable contributions, and certain advertising and public relations activities. This Act places a cap on annual capital expenses in the amount of $125 million for electric distribution companies. This Act also contains a severability clause.

Maddy summarySB 61 requires Delaware's representatives on the PJM Interconnection (a regional electricity grid operator) to publicly disclose their votes during PJM meetings or when considering specific matters. This applies directly to Delaware's utility regulators or officials serving on PJM's governing body. The bill mandates that all votes cast by Delaware representatives be made publicly available, increasing transparency about how the state participates in regional energy decisions. The policy change is procedural, focusing solely on disclosure requirements without altering voting rules or outcomes.

Public utilities are regulated monopolies. Practically speaking, a public utility has no competition in its service territory and, therefore, does not face the economic risks that a for-profit, non-utility company must face. By law, a public utility is authorized the opportunity to earn a reasonable rate of return on the costs it incurs in operating its business. Under the current Public Utilities Code, in determining the rates that public utilities may charge customers, the Delaware Public Service Commission must apply the “business judgment rule” standard in deciding which costs may be included in a utility’s rate base. Forty-eight (48) states in the United States apply the “prudence” standard when setting utility rates, not the "business judgement rule" standard that is applied in Delaware. The more costs that are included in rate base, the higher the rates that are charged to utility customers. Under the “business judgment rule” standard, the Public Service Commission may not disallow the inclusion of a cost in rate base, even though the cost was incurred imprudently. For example, a utility may decide to expand the size of its facilities, but overbuilds those facilities at a cost of $3 million, even though a smaller $1 million expansion would be adequate to serve its customers and anticipated future growth. Under the business judgment rule, the Public Service Commission is not able to deny recovery of any part of the cost of the expanded facility and it will be included in rate base. Consequently, customer utility bills have been increasing and could continue to increase significantly. Amending the Public Utility Code so that the “prudence” standard applies, would give the Public Service Commission the ability to deny, in whole or in part, certain expenses and costs, which can lead to less frequent and less impactful rate increases.

This House Substitute No. 1 for House Bill No. 50 creates the Delaware Energy Fund to provide assistance to consumers whose household income is less than 350% of the federal poverty level. Under 2025 federal guidelines, 350% of the federal poverty level for a single person is $54,775 and for a family of four is $112,525. The Delaware Energy Fund will be administered by the SEU and recipients of assistance from the fund will also be required to participate in energy savings and efficiency programs. Only one assistance payment may be made per application. The Act also directs the Department of Natural Resources Environmental Control to transfer 30% of the funds generated by alternative compliance payments and solar alternative compliance payments to the Low Income Home Energy Assistance Program. The Substitute also changes existing code language to require, rather than allow, 5% of CO2 allowance proceeds to be directed to the Low Income Home Energy Assistance Program. The Act sunsets 3 years after its enactment.

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.

This Act provides the Public Service Commission with the flexibility to consider and approve a discounted gas or electric residential utility rate for qualified low-income customers, provided the discount is 20% of standard residential distribution rates. This permits low-income customers to receive utility distribution services at a lower cost. A utility offering a discounted low-income rate is responsible for annually determining customer eligibility in cooperation with the Department of Health and Social Services. The Public Service Commission must review any discount rate approved under this Act every five years to determine if the discount rate should be re-authorized.