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Committee advances bill to dedicate $8 million from transfer tax to shore up Delaware Brownfields fund
Summary
After extensive public comment from developers, consultants and the Delaware Association of Realtors, the committee released HB407, which would redirect $8,000,000 annually from the realty transfer tax to create a $10,000,000 Brownfields funding baseline; supporters cited halted reimbursements and strong ROI while some asked for a sunset.
The House Natural Resources and Energy Committee voted to release House Bill 407, which would amend the Hazardous Substances Cleanup Act and establish a baseline funding mechanism for Delaware’s Brownfields grant program by redirecting $8 million annually from the state realty transfer tax to create a $10 million annual funding baseline.
Representative Deborah Heffernan outlined the bill’s two parts: technical HSCA updates requested by DNREC and a funding change intended to produce stable Brownfields funding for site remediation. "This act establishes a $10,000,000 annual funding baseline for the Brownfields grant program by allocating $8,000,000 annually from the state share of the realty transfer tax," she said.
A string of in-person and virtual public commenters backed the measure. Beau Zebly of the Delaware Association of Realtors said the association supports the program but urged a sunset amendment because realty transfer revenues fluctuate with the market: "A fixed $8,000,000 obligation does not slow with it," he said, and asked the committee to include a sunset to evaluate performance. Developers, consultants and municipal officials told the committee that the Brownfields fund had run dry at points this year and that DNREC paused reimbursements for grants, delaying projects and creating cash-flow burdens for small developers and nonprofit builders.
Tim Ratzep, division director for DNREC’s Waste & Hazardous Substances program, explained one statutory change under the bill: raising the civil penalty for certain fraudulent acts from $10,000 to $40,000 to align HSCA with penalties adopted last session under House Bill 167. "It just brings HSCA in line with all the other... penalty matrix that were passed last legislative session," Ratzep said.
Supporters emphasized economic returns. Matt Docker of the Committee of 100 said the program returns ‘‘between $12 and $19 in economic value’’ for every dollar invested and that, without legislative action, Brownfields funding for new projects could drop to zero by fiscal 2031. Several presenters cited specific local projects that relied on past Brownfields grants and urged passage to restore program stability.
Representative Frank Burns moved to release the bill; Representative Claire Snyder Hall seconded. The committee approved the motion and released HB407 to the House floor for further consideration.
Vote and procedural note: Motion to release HB407 made by Representative Frank Burns; seconded by Representative Claire Snyder Hall. Roll-call vote carried (yes: 10; no: 0; abstain: 0; absent: 2).
