State of Delaware - Brownfields Legislative Developments

This article has been published in the July, 2001 Newsletter of the 
American Bar Association, Section of Environment, Energy and Resources, 
Committee on Environmental Transactions, Audits and Brownfields

The Delaware General Assembly has passed and on July 13, 2001 the Governor signed into law Senate Bill No.183, as amended by Senate Amendment No. 1 (the "Delaware Brownfields Bill").  This legislation updates existing brownfields laws and grant programs, and is intended to encourage more brownfields redevelopment within the state.

First, the Delaware Brownfields Bill contains a broad, uniform definition of a "Brownfield" as "any vacant, abandoned or underutilized real property, the development or redevelopment of which may be hindered by the reasonably held belief that the property may be environmentally contaminated."  Based upon this definition, the Delaware Department of Natural Resources and Environmental Control ("DNREC") is authorized to promulgate regulations pursuant to which it may certify all or part of a property as a Brownfield. 

Second, the Delaware Economic Development Authority ("DEDA") is authorized to make matching grants of up to $1 million in the aggregate from the State's Strategic Fund during any one fiscal year to meet costs of environmental assessment and remediation at sites that DNREC has certified as Brownfields.  Grants at a single Brownfield site may not exceed the lesser of $50,000 or 50% of assessment and remediation costs.  Costs incurred after January 16, 2001 are eligible for coverage under the expanded grant program.  The Delaware Brownfields Bill thus increases from $25,000 the maximum amount of any single grant available from DEDA, and allows grants to be used not only for assessment costs as under prior guidelines, but also for cleanup costs. 

Third, the Delaware Brownfields Bill applies the new, more inclusive definition of a Brownfield to tax credits that already are available under state law.  The new definition will apply to qualified investments, qualified employment, and qualified activities occurring at Brownfields sites after October 1, 2001.