2006 Delaware Code - Subchapter II — The Delaware Energy Act

§ 8051. Short title; declaration of policy.

(a) This subchapter shall be known and may be cited as "The Delaware Energy Act."

(b) The General Assembly finds and declares that:

(1) An adequate, reliable, and continuous supply of energy is essential to the health, safety, and welfare of the citizens of this State and to the sustained growth of the State's economy;

(2) Shortages of non-renewable energy resources could threaten the reliable supply of energy in the State;

(3) Inefficient energy consumption leads to increased air pollution from traditional means of producing energy, which may be significantly mitigated by the development of efficiency programs and alternative energy resources;

(4) Growth and inefficient energy usage must be addressed programmatically to continue the social, economic and environmental vitality of the State;

(5) The State must provide for the development of a comprehensive state energy policy which will ensure an adequate, reliable and continuous supply of energy and which is protective of public health and the environment and which promotes our general welfare and economic well-being;

(6) The establishment of the State Energy Office is in the public interest and will promote the general welfare by assuring coordinated and efficient management of state energy policy.

(c) It is the purpose and intent of the General Assembly:

(1) To establish the State Energy Office within the Department of Natural Resources and Environmental Control;

(2) To provide for development and maintenance of a comprehensive state energy plan;

(3) To provide for the development and maintenance of a state emergency energy shortage contingency plan;

(4) To provide for the development of a state facilities energy management plan;

(5) To reduce, to the maximum extent possible, the environmental consequences of energy generation and use in the State;

(6) To achieve effective management of energy functions within the state government;

(7) To encourage and ensure full and effective public participation in the formulation and implementation of a state energy plan. (74 Del. Laws, c. 38, § 1.)

§ 8052. Definitions.

For the purposes of this subchapter:

(1) "Customer" means any person that has constructed, purchased or leased Renewable Energy Technology and placed it in service in this State for the purpose of generating or receiving energy in this State, including the owner/operator of any building or facility, but not the occupants thereof, that supplies energy to the occupants of such building or facility.

(2) "Person" means and includes an individual, a trust, estate, partnership, limited liability company, association, company or corporation.

(3) "Renewable energy technology" or "alternative energy technology" means and includes any of the following machinery, equipment, or real property:

a. Hydroelectric generators, located at existing dams or in free-flowing waterways, and related devices for water supply and control, and converting, conditioning, and storing the electricity generated;

b. Wind equipment, required to capture and convert wind energy into electricity or mechanical power, and related devices for converting, conditioning and storing the electricity produced;

c. Solar energy equipment, and related devices necessary for collecting, storing, exchanging, conditioning or converting solar energy to other useful forms of energy;

d. Geothermal heat pumps and geothermal heat pump systems;

e. Fuel cells and fuel cell systems; and

f. Biodiesel manufacturing facilities.

(4) "Solar energy equipment" means any equipment that uses solar radiation as a substitute for traditional energy for water heating, active space heating and cooling, passive heating, daylighting, generating electricity, distillation, desalinization, detoxification or the production of industrial or commercial process heat, and includes related devices necessary for collecting, storing, exchanging, conditioning or converting solar energy to other useful forms of energy. (74 Del. Laws, c. 38, § 1; 74 Del. Laws, c. 87, § 1; 75 Del. Laws, c. 160, § 1.)

§ 8053. State Energy Office; State Energy Coordinator; establishment; powers and duties.

(a) There is hereby established the State Energy Office within the Department of Natural Resources and Environmental Control, Office of the Secretary.

(b) The administrator and head of the State Energy Office is the State Energy Coordinator, who shall:

(1) Be qualified by training or experience to perform the duties of the Office; and

(2) Perform such functions in the administration of the State Energy Office as the Secretary of the Department of Natural Resources and Environmental Control may from time to time require.

(c) The State Energy Office shall:

(1) Act as a central repository and clearinghouse for collection and dissemination of data and information on energy resources and energy matters in the State, including but not limited to:

a. Data on energy supply, demand, costs, projections and forecasts;

b. Inventory data on energy research and development projects, studies, or other programs conducted in the State under public or private supervision or sponsorship, and the results thereof; and

c. The environmental impacts of energy generation and use and the means of reducing those impacts through alternative fuels, innovative energy technologies, conservation or other means.

(2) Coordinate with other state and federal agencies including, but not limited to, the Delaware Public Service Commission, the Office of State Planning and Coordination, the Office of Management and Budget, the Delaware Economic Development Office, the Delaware Emergency Management Agency and the Department of Agriculture in carrying out its duties under this subchapter;

(3) Recommend legislative or other initiatives to the Secretary, and hence to the Governor and General Assembly, that will enable or assist the State, its instrumentalities, or private citizens, to secure federal funds made available to states and individuals to support energy conservation programs and initiatives, whatever form those funds take;

(4) Provide for a program of energy audits of facilities owned by instrumentalities of the State in cooperation with designated representatives of said facilities;

(5) Provide for the training and certification of energy auditors to conduct energy audits as may be necessary and proper to carry out the purposes and policies of this subchapter, or any other energy-related law applicable to this State;

(6) Assist the Division of Facilities Management in developing the state facilities energy management plan as required in § 8806(c) of Title 29; and

(7) Facilitate the development of a comprehensive State Energy Plan designed to protect the health, safety and welfare of the citizens and economy of the State and which shall include, but not be limited to:

a. Encouraging and promoting conservation of energy through reducing wasteful, uneconomical or inefficient uses of energy;

b. Encouraging and promoting the use of renewable electric generation facilities and alternate energy technologies by residential and commercial consumers; and

c. Encouraging and promoting such other energy efficiencies and conservation goals, methods, standards, training, programs and policies that are consistent with the intent of this subchapter, especially those directed toward improving end-use efficiency among the State's energy consumers. (74 Del. Laws, c. 38, § 1; 74 Del. Laws, c. 87, § 2; 75 Del. Laws, c. 88, § 16(5).)

§ 8054. Cabinet Committee on Energy.

(a) A Cabinet Committee on Energy is established and shall serve in an advisory capacity to the Governor. It shall be comprised of the following members:

(1) The Secretary of the Department of Natural Resources and Environmental Control.

(2) The Secretary of the Department of Agriculture.

(3) The Secretary of the Department of Transportation.

(4) The Secretary of the Department of Health and Social Services.

(5) The Secretary of the Department of Safety and Homeland Security.

(6) The Secretary of the Department of State.

(7) The Director of the Delaware Economic Development Office.

(8) The Director of the Office of Management and Budget.

(9) Such others as the Governor may designate.

(b) The Governor shall designate 1 member to serve as Chairperson of the Committee.

(c) The Committee shall consider matters relating to energy issues and use in state government, including, but not limited to:

(1) Developing programs for state agencies to save energy through energy efficiency in facility construction and operation, energy and equipment procurement.

(2) Setting comprehensive goals and prioritizing programs based on the cost effectiveness of energy saving measure.

(3) Developing and implementing the use of transportation energy reduction methods for employees.

(4) Identifying opportunities for the use of fuel cells and solar energy equipment to meet the energy needs of agencies and/or state buildings.

(d) The State Energy Office shall provide staffing assistance to the Cabinet Committee on Energy. (74 Del. Laws, c. 415; 75 Del. Laws, c. 88, §§ 21(13), 38.)

§ 8055. Governor's Energy Advisory Council.

(a) There is hereby established the Governor's Energy Advisory Council.

(b) The Governor's Energy Advisory Council shall monitor Delaware's energy system, identify and propose actions to enhance Delaware's energy system and provide counsel to the Governor on promoting an economic, reliable and competitive energy market for all Delaware consumers.

(c) The Governor's Energy Advisory Council shall be assigned the following responsibilities:

(1) Developing implementation plans for recommendations from the 2003 "Delaware Energy Task Force Report to the Governor" and tracking ongoing implementation efforts.

(2) Spearheading the updating of the Delaware Energy Plan every 5 years from date of enactment. The updating process shall include a process for public input and measures for progress in attaining goals identified in the plans.

(3) Monitoring federal, state and regional energy issues, identifying the impacts on Delaware and recommending actions to the Governor in response to identified issues.

(4) Other duties as referred by the Governor.

(d) The Governor's Energy Advisory Council shall be composed of 17 members as follows:

(1) A Chair to be appointed by the Governor for a term of three years and who shall be eligible for re-appointment for terms of 3 years.

(2) Chair of the Cabinet Committee on Energy.

(3) Chair of the Public Service Commission.

(4) The Public Advocate.

(5) Chair of the Weatherization Assistance Program Policy Advisory Council.

(6) Nine members who shall be appointed by the Governor representing, to the extent possible, the following constituencies: electricity transmission; electricity distribution; electricity generation; agriculture and/or agribusiness; municipal utilities; renewable energy; innovative energy technology; transportation fuels and environmental interests. These members shall be appointed by the Governor as follows:

a. Three members shall be appointed for 3 year terms;

b. Three members shall be appointed for initial 2 year terms.

c. Three members shall be appointed for initial 1 year terms;

d. Thereafter, appointees shall serve for 3 year terms.

(7) The Secretaries of Transportation, Natural Resources and Environmental Control and Agriculture and the Director of Economic Development shall serve as ex-officio members.

(e) An appointment, pursuant to this section, to replace a member whose position becomes vacant prior to the expiration of the member's term shall be filled only for the remainder of that term. Members shall continue to serve after the expiration of their terms until they resign, are reappointed or replaced.

(f) Members of the Advisory Council shall serve without compensation, except that they may be reimbursed for reasonable and necessary expenses incident to their duties as members in accordance with state law. (74 Del. Laws, c. 415.)

§ 8056. [Reserved.]

§ 8057. Green Energy Fund.

(a) The State Energy Office shall administer moneys in the Green Energy Fund, in consultation with other offices within Department of Natural Resources and Environmental Control (DNREC), the Delaware Economic Development Office and the Division of the Public Advocate, through a program of environmental incentive grants and loans for the development, promotion and support of energy efficiency programs and renewable or alternative energy technology in the State.

(b) The State Energy Office shall establish standards, procedures and regulations governing the administration of the Green Energy Fund which are not inconsistent with this subchapter. Up to 7.5% of the moneys deposited in the Green Energy Fund each year may be used for administration of the Fund.

(c) The goals which shall guide use of the Green Energy Fund include:

(1) Fostering use of energy efficient, renewable and environmentally friendly energy technologies throughout the State in the residential, commercial, industrial, public and agricultural sectors;

(2) Promoting research, development and demonstration projects in the fields of energy efficiency and renewable energy technologies;

(3) Advocating green public policy initiatives;

(4) Establishing and supporting education and public awareness programs;

(5) Pursuing community outreach programs;

(6) Supporting the development of green industries and generators in the State;

(7) Encouraging the construction, maintenance and operation of green buildings, schools and residential developments; and

(8) Creating market incentives for the pursuit of renewable energy resources by energy providers in the State.

(d) The Green Energy Fund shall be used for programs in Delaware including, but not limited to:

(1) The Green Energy Endowment Program:

a. The Green Energy Endowment Program shall provide cash grants from the Green Energy Fund to Customers that have constructed, purchased or leased Renewable Energy Technology and have placed such Renewable Energy Technology in service.

b. Any one cash grant for any one project shall equal the lessor of 50% of the cost of such Renewable Energy Technology or: (i) $250,000 for projects involving commercial applications of solar energy electric generation technology; (ii) $22,500 for projects involving residential applications of solar energy electric generation technology; or (iii) an amount established by the State Energy Office for all applications of renewable energy technology other than commercial or residential solar energy electric generation technology.

c. Persons eligible for cash grants under the Green Energy Endowment Program shall include:

1. Persons in Delaware receiving services from Conectiv, or its successor, after the adoption of a restructuring plan pursuant to § 1005(a) of Title 26; and

2. Persons in Delaware receiving services from a nonregulated electric supplier which is contributing to the Green Energy Fund.

d. Grants made under the Green Energy Endowment Program shall not exceed 65% of all expenditures from the Green Energy Fund on an annual basis.

e. Funds available for grants under the Green Energy Endowment Program will be allocated into a residential pool and a nonresidential pool on an annual basis. Forty percent of the Funds available for grants under the Green Energy Endowment Program will be allocated to the residential pool and 60% of the Funds available for grants under the Green Energy Endowment Program will be allocated to the nonresidential pool.

(2) The Technology Demonstration Program:

a. The Technology Demonstration Program shall provide cash grants equal to 25% of the cost of a project which demonstrates the market potential of Renewable Energy Technology in Delaware, with no 1 grant for any 1 project to exceed $200,000. Cash grants for biodiesel manufacturing facilities shall not exceed 25% of the project cost and no 1 project may receive more than $300,000.

b. Grants made under the Technology Demonstration Program shall not exceed 25% of all expenditures from the Green Energy Fund on an annual basis.

(3) The Research and Development Programs:

a. Under the Research and Development Programs monies will be expended from the Green Energy Fund:

1. To support qualifying research and graduate studies in Delaware in energy efficiency and renewable energy technologies; and

2. To provide grants equal to no greater than 35% of the cost of project for the development of a product in Delaware directly related to Renewable Energy Technology, including but not limited to any product improving the engineering of, adapting or developing Renewable Energy Technology either as an independent piece of Renewable Energy Technology or as a component thereof, with no 1 grant for any one project to exceed $250,000.

b. Grants made under the Research and Development Programs, in the aggregate, shall not exceed 10% of all expenditures from the Green Energy Fund on an annual basis.

(4) Unexpended Funds: Any amount allocated to the Green Energy Endowment Program, the Technology Demonstration Program and the Research and Development Programs and not expended during a particular year shall be considered as part of the Green Energy Fund and available for allocation and expenditure in subsequent years. (74 Del. Laws, c. 38, § 1; 74 Del. Laws, c. 87, § 3; 74 Del. Laws, c. 415; 75 Del. Laws, c. 160, §§ 2, 3.)

§ 8058. Rules and regulations.

The Secretary shall promulgate rules and regulations governing the administration of the State Energy Office or that are necessary to carry out the provisions of this subchapter. (74 Del. Laws, c. 38, § 1; 74 Del. Laws, c. 415.)