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SB64 • 2025

AN ACT TO AMEND TITLE 7 OF THE DELAWARE CODE RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE AND CO2 EMISSIONS TRADING PROGRAM AUCTION PROCEEDS.

AN ACT TO AMEND TITLE 7 OF THE DELAWARE CODE RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE AND CO2 EMISSIONS TRADING PROGRAM AUCTION PROCEEDS.

Energy
Passed Legislature

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

Sponsor
Hocker
Last action
2026-01-28
Official status
Lieu/Substituted 1/28/26
Effective date
Not listed

Plain English Breakdown

The bill summary does not specify that Delmarva Power and Light will directly distribute the rebates; it only states they receive the rebate amounts for distribution.

Act Amending Delaware's Greenhouse Gas Initiative Auction Proceeds

This act changes how extra money from CO2 allowance auctions is used, directing it towards reducing electricity costs for Delmarva Power and Light customers.

What This Bill Does

  • Sets a limit on the amount of auction proceeds that can be spent in ways already outlined by Delaware's laws until 2025 levels.
  • Requires any extra money from CO2 allowance auctions after 2025 to go into a rebate program for electricity customers.

Who It Names or Affects

  • Electricity customers of Delmarva Power and Light
  • Delaware's Department of Natural Resources and Environmental Control (DNREC)

Terms To Know

Sustainable Energy Utility (SEU)
An organization that uses funds to promote energy conservation, efficiency, and renewable energy.
Weatherization Assistance Program (WAP)
A program helping low-income families improve their homes' energy efficiency.

Limits and Unknowns

  • The exact amount of extra money from CO2 allowance auctions after 2025 is not known.
  • It's unclear how much the rebate program will reduce electricity costs for customers.

Bill History

  1. 2026-01-28 Delaware General Assembly

    Substituted in Senate by SS 1 for SB 64

  2. 2025-05-20 Delaware General Assembly

    Introduced and Assigned to Environment, Energy & Transportation Committee in Senate

Official Summary Text

AN ACT TO AMEND TITLE 7 OF THE DELAWARE CODE RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE AND CO2 EMISSIONS TRADING PROGRAM AUCTION PROCEEDS.
Subchapter 11-A of Title 7 delineates the Regional Green House Gas initiative, including where proceeds from C02 allowance auctions shall be expended. This Act fixes the overall amount of proceeds directed to purposes currently in the Delaware Code to 2025 levels and instructs DNREC that any auction proceeds above 2025 levels be directed to a rebate program to defray the cost of electricity to ratepayers. Under this Act, Delmarva Power and Light would receive the rebate amounts and be required to distribute those proceeds in the form of electric bill reeducations to retail electric customers.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Sen. Hocker & Rep. Shupe

Sens. Buckson, Lawson, Pettyjohn, Richardson, Wilson; Reps. Collins, Gray, Hilovsky, Yearick

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 64

AN ACT TO AMEND TITLE 7 OF THE DELAWARE CODE RELATING TO REGIONAL GREENHOUSE GAS INITIATIVE AND CO2 EMISSIONS TRADING PROGRAM AUCTION PROCEEDS.

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

Section 1. Amend § 6046, Title 7 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 6046. Auction revenue.

(c) The Secretary shall direct auction proceeds to the following uses:

(1) Sixty-five percent of the CO

2

allowance proceeds shall be directed to the Sustainable Energy Utility (SEU), established in § 8059 of Title 29. The SEU shall apply these funds to further the goals and activities of the SEU including, but not limited to, the promotion of energy conservation, energy efficiency, renewable energy, and energy financing pursuant to § 8059(f)(3) of Title 29.

(2) A total of 15% of the CO

2

allowance proceeds shall be directed to low-income consumers, of which 10% shall be directed to the federally funded and state-administered Weatherization Assistance Program (WAP), and up to 5% shall be directed to the federally funded and state-administered fuel assistance (Low Income Home Energy Assistance Program or LIHEAP) programs. Participants in the LIHEAP program funded pursuant to this section shall also participate in the WAP program within 2 years of receiving assistance through LIHEAP, subject to funding availability. These programs are administered by the Division for State Service Centers in the Delaware Department of Health and Social Services.

(3) Percentage allocations of funds to the SEU and low-income consumers may be reviewed and adjusted annually by a committee comprised of the Secretary of the Department of Natural Resources and Environmental Control (DNREC), who shall serve as committee chair, the Chair of the Board of the SEU, and the program managers of the state WAP and LIHEAP.

(4) Ten percent of CO

2

allowance proceeds shall be directed to Greenhouse Gas Reduction Projects, selected by the Secretary following a periodic competitive proposal process. The Secretary shall utilize an advisory body composed of electric generators, environmental advocates, legislators and such others as the Secretary may find useful in developing guidelines for the proposal process and in soliciting and ranking of projects. Projects must result in quantifiable and verifiable reductions in Greenhouse gas emissions in Delaware not otherwise required by federal or state law and not receiving funding from any other state sources.

(5) The Secretary shall use up to 10% of CO

2

allowance proceeds as detailed in subsection (d) of this section. Expenses for running the RGGI program shall be met first, prior to distribution of funds as outlined above.

(6) Beginning on January 1, 2026 and each year that after, any CO

2

allowance proceeds in excess of the total dollar amount generated in 2025 shall be directed to a rebate program for the reduction of energy costs to retail electric customers as defined in

§ 1001

(21) of Title 26. DNREC shall promulgate regulations and administer the rebate program referenced in this section. The rebate proceeds shall be provided to Delmarva Power and Light for pro rata distribution to retail electric customers. The reduction of the customer’s energy costs shall be reflected on the bill for services issued by Delmarva Power and Light pursuant to § 1011 of Title 26.

SYNOPSIS

Subchapter 11-A of Title 7 delineates the Regional Green House Gas initiative, including where proceeds from C02 allowance auctions shall be expended. This Act fixes the overall amount of proceeds directed to purposes currently in the Delaware Code to 2025 levels and instructs DNREC that any auction proceeds above 2025 levels be directed to a rebate program to defray the cost of electricity to ratepayers. Under this Act, Delmarva Power and Light would receive the rebate amounts and be required to distribute those proceeds in the form of electric bill reeducations to retail electric customers.

Author: Senator Hocker