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HB407 • 2025

AN ACT TO AMEND TITLES 7 AND 30 OF THE DELAWARE CODE RELATING TO THE DELAWARE HAZARDOUS SUBSTANCES CLEANUP ACT AND THE REALTY TRANSFER TAX.

AN ACT TO AMEND TITLES 7 AND 30 OF THE DELAWARE CODE RELATING TO THE DELAWARE HAZARDOUS SUBSTANCES CLEANUP ACT AND THE REALTY TRANSFER TAX.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Heffernan
Last action
2026-05-14
Official status
House Appropriations 5/14/26
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on how DNREC will determine if an emergency exists, only that it can take immediate action without public comment.

Delaware Hazardous Substances Cleanup Act and Realty Transfer Tax Amendments

This act clarifies DNREC's ability to respond immediately during emergencies, expands the types of courts where DNREC can file lawsuits for cost recovery, increases civil penalties for fraudulent acts, and updates funding for the Brownfields Grant Program.

What This Bill Does

  • Clarifies DNREC’s ability to determine if an emergency exists and take immediate action without public comment.
  • Expands the jurisdiction from which DNREC may file enforcement actions and recover costs.
  • Increases civil penalties for fraudulent acts from up to $10,000 to $40,000 per act.
  • Updates definitions related to abatement, emergency situations, and removal actions.

Who It Names or Affects

  • The Department of Natural Resources and Environmental Control (DNREC)
  • Potentially responsible parties for hazardous substance releases
  • People involved in the Brownfields Grant Program

Terms To Know

Emergency
A situation requiring immediate action to protect public health, welfare, or the environment.
Removal Action
Short-term actions taken to address a release of hazardous substances and prevent further harm.

Limits and Unknowns

  • The bill does not specify how DNREC will determine if an emergency exists.
  • It is unclear what specific changes the bill makes to the Realty Transfer Tax formula beyond extending its application period.
  • The exact impact on funding for the Brownfields Grant Program after 2037 is uncertain.

Bill History

  1. 2026-05-14 Delaware General Assembly

    Assigned to Appropriations Committee in House

  2. 2026-05-13 Delaware General Assembly

    Reported Out of Committee (Natural Resources & Energy) in House with 4 Favorable, 5 On Its Merits

  3. 2026-05-07 Delaware General Assembly

    Introduced and Assigned to Natural Resources & Energy Committee in House

Official Summary Text

AN ACT TO AMEND TITLES 7 AND 30 OF THE DELAWARE CODE RELATING TO THE DELAWARE HAZARDOUS SUBSTANCES CLEANUP ACT AND THE REALTY TRANSFER TAX.
This Act clarifies the ability of the Department of Natural Resources and Environmental Control (DNREC) to respond to emergent situations, expands the jurisdiction from which DNREC may file to recover costs, and makes certain changes to amounts deposited into the Hazardous Substance Cleanup Act Fund.
Section 1 provides definitions for “Abate,” “Emergency,” and “Removal Action.”
Section 2 clarifies the ability of the Secretary or the Secretary’s authorized employees or agents to determine if an emergency exists and take immediate action to abate the emergency without obtaining public comment.
Section 3 allows the Department to authorize removal actions to address releases without first obtaining public comment, and to incorporate the removal action into any proposed plan of remedial action by DNREC.
Section 4 expands the jurisdiction of the courts in which DNREC may bring enforcement actions and recover costs.
Section 5 increases the civil penalty for each fraudulent act from up to $10,000 to $40,000. The Act also 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, set forth in Section 6 and 8.
Section 7 extends the end date from January 1, 2029, to January 1, 2037, for monies to be deposited into the Hazardous Substance Cleanup Act Fund (the “Fund”) and updates the tax rate formula for the tax rate calculation. Section 9 provides the effective date of this legislation.

Current Bill Text

Read the full stored bill text
Legislation Document

SPONSOR:

Rep. Heffernan & Sen. Hansen

Reps. Burns, K. Johnson, Morrison, Hilovsky, Spiegelman, Gray, Phillips, Snyder-Hall; Sens. Mantzavinos, Paradee, Seigfried

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 407

AN ACT TO AMEND TITLES 7 AND 30 OF THE DELAWARE CODE RELATING TO THE DELAWARE HAZARDOUS SUBSTANCES CLEANUP ACT AND THE REALTY TRANSFER TAX.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 9103, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

§ 9103. Definitions.

As used in this chapter:

(1) “Abate” means to perform a remedial action intended to prevent or mitigate harm or the potential for harm to public health or welfare or the environment caused by an emergency.

(10) “Emergency” means a release, or the imminent threat of a release, which requires immediate action to protect human health or welfare or the environment.

(30) “Removal action” means a short term or interim remedial action taken in response to a release or threatened release to prevent, minimize, contain, stabilize, mitigate, or eliminate a threat to public health or welfare or the environment.

Section 2. Amend § 9106, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9106. Investigation and access.

(a) (1) If there is a reasonable basis to believe there was a release or is an imminent threat of release, the Secretary may require information or documents relevant to the release or imminent threat of release from any person who may have information pertinent to:

a. The identification, nature and volume of materials generated, treated, stored, transported to or disposed of at a facility, and the dates thereof;

b. The extent of a release or imminent threat of release from a facility;

c. The identity of potentially responsible parties;

d. The financial ability of a potentially responsible party to perform a remedy.

(2) The Secretary or

his or her

the Secretary’s

authorized employees or agents may enter, at reasonable times, upon any real property, public or private, to conduct sampling, inspection, examination, and investigation evaluating the release or imminent threat of release to determine the need for a remedy or to execute the remedy upon given verbal notice, and after presenting official identification to the owner or operator. The Secretary or

other

the Secretary’s

authorized

person

employees or agents

gaining access under this section, if requested in advance, shall split a sample with the

owner or

operator, or person in charge of the facility.

operator.

If any analysis is made of the samples, a copy of the results of the analysis may be furnished to the

owner, operator, or person in charge.

owner or operator of the facility.

(b) If the Secretary determines

that:

(1) An emergency exists that requires immediate action to protect public health or welfare or the environment; and

(2) The operator is unwilling or unable to take such immediate action, the Secretary, or his or her authorized employees or agents, without court order, may enter upon a facility and take any immediate action necessary to abate the emergency notwithstanding the provisions of § 9107(e) of this title.

that there is good cause to believe an emergency exists, the Secretary or the Secretary’s authorized employees or agents, without court order, may enter upon a facility and take any immediate action necessary to abate the emergency notwithstanding the provisions of § 9107(e) of this title.

Section 3. Amend § 9107, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9107. Remedies.

(b) The settlement agreement providing for a remedy may be in the form of a consent decree, administrative order of consent, memorandum of agreement or any other form of agreement consistent with regulations developed pursuant to § 9104 of this title. When a settlement agreement is entered into in the form of a consent decree pursuant to this chapter, it shall be filed with the Superior

Court.

Court or the Court of Chancery.

The Secretary shall allow at least 20 days for public comment before the proposed consent decree is entered. If the Secretary deems it appropriate to effectuate the purposes of this chapter, the Secretary may choose to resolve a person’s liability with the State under this section through use of settlement agreements entered into pursuant to CERCLA.

(h) Where the Secretary has good cause to believe that a removal action is necessary to protect human health or welfare, or the environment, the Secretary may authorize a person to perform a removal action notwithstanding the provisions of § 9107(e) of this title. A removal action performed under this section must be incorporated into any proposed plan of remedial action by the Department.

Section 4. Amend § 9109, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9109. Enforcement.

(d) The Secretary may bring an action in

the Superior Court

a court of competent jurisdiction

to recover from any potentially responsible party all natural resource damages resulting from a release.

(e) The Secretary may bring an action in

the Superior Court

a court of competent jurisdiction

against any potentially responsible party to collect remedial costs incurred by the Secretary,

including those associated with recovering costs such as attorney’s fees and employee time,

or for a party’s refusal to comply, without sufficient cause, with an order issued under subsection (a) or (b) of this section.

(g) The Secretary may bring an action in

Superior Court

a court of competent jurisdiction

to enforce any order issued by the Secretary under subsection (f) of this section. Any person refusing to comply, without sufficient cause, with such an order shall be liable pursuant to paragraph (h)(2) of this section.

Section 5. Amend § 9111, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9111. Fraud.

(a) If a potentially responsible party commits fraud on the Secretary or another potentially responsible party in a proposed settlement agreement or in an application for a certification of completion of remedy, then any limitation on liability otherwise provided herein shall be void, and any injured person, including the Secretary, may recover actual damages sustained as well as a civil penalty of up to

$10,000

$40,000

for each fraudulent act.

Section 6. Amend § 9113, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9113. Hazardous Substance Cleanup Fund.

(c) Money in the Fund may be used by the Secretary only to carry out the purposes of this chapter, including the following activities:

(9) Provide annually to the Brownfields Grant Program

an amount equal to ⅓ of the amount deposited in that year into the Hazardous Substance Cleanup Fund under this section.

at least $2,000,000 of the Hazardous Substance Cleanup Act funds collected under § 9114 of this title and $8,000,000 from the Realty Transfer Tax collected under § 5415 of Title 30.

Section 7. Amend § 9114, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows

and redesignating accordingly:

§ 9114. Tax assessment.

(a) (1) With regard to gross receipts received after December 31, 1990, and before July 1, 1993, there shall be added to the tax provided in §§ 2902(c)(3) and 2905(b)(1) of Title 30 an additional tax of .6% on all taxable gross receipts determined under §§ 2902 and 2905 of Title 30 derived from the sale of petroleum or petroleum products.

(3) With regard to gross receipts received after December 31, 2018, and before January 1,

2029,

2037,

the rate of additional tax under this subsection is subject to annual adjustment based upon the total of moneys deposited into the Hazardous Substance Cleanup Fund (Fund’') during the lookback period, as that term is defined in § 2122 of Title 30. The Division of Finance shall calculate the annual adjustment under this paragraph (a)(3) in conjunction with the determination of gross receipts tax filing frequencies.

(4) For taxable periods beginning after December 31, 2018,

and until December 31, 2036,

the rate of tax imposed under this section is determined by multiplying .9% by a fraction, the numerator of which is $15,000,000 and the denominator of which is the total of moneys deposited into the Fund during the lookback period, as that term is defined in § 2122 of Title 30, but the tax rate calculated under this section may not be less than 0.675% or greater than 1.675%

Section 8. Amend § 5415, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5415. Distribution of tax receipts.

Of the tax collected by the State under this chapter, the sum of $8,000,000 shall be deposited annually into the Hazardous Substance Cleanup Fund, created pursuant to § 9113 of Title 7, for the specific purpose of funding the Brownfields Grant Program.

Section 9. This Act takes effect on July 1, 2026.

SYNOPSIS

This Act clarifies the ability of the Department of Natural Resources and Environmental Control (DNREC) to respond to emergent situations, expands the jurisdiction from which DNREC may file to recover costs, and makes certain changes to amounts deposited into the Hazardous Substance Cleanup Act Fund.

Section 1 provides definitions for “Abate,” “Emergency,” and “Removal Action.”

Section 2 clarifies the ability of the Secretary or the Secretary’s authorized employees or agents to determine if an emergency exists and take immediate action to abate the emergency without obtaining public comment.

Section 3 allows the Department to authorize removal actions to address releases without first obtaining public comment, and to incorporate the removal action into any proposed plan of remedial action by DNREC.

Section 4 expands the jurisdiction of the courts in which DNREC may bring enforcement actions and recover costs.

Section 5 increases the civil penalty for each fraudulent act from up to $10,000 to $40,000. The Act also 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, set forth in Section 6 and 8.

Section 7 extends the end date from January 1, 2029, to January 1, 2037, for monies to be deposited into the Hazardous Substance Cleanup Act Fund (the “Fund”) and updates the tax rate formula for the tax rate calculation. Section 9 provides the effective date of this legislation.