For Immediate Release:
February 28, 2025
For More Information:
Joe Fulgham, 302-744-4184
Matt Revel, 302-744-4085
House and Senate Republican legislators have unveiled a package of bills to begin to transition Delaware’s energy policies from wishful to pragmatic.
“For years, our members have been the voice of reasonable dissent, pointing out the flaws in our state’s misguided energy laws and regulations, warning of the problems they would likely create, and proposing rational alternatives,” said Joseph Fulgham, Chief of Policy & Communications. “The bills we’re promoting today are the latest in that ongoing effort. They are not a panacea for the high electricity bills many consumers are experiencing, and are likely to see again this summer. Still, they will help to correct our state’s course and avoid even larger problems in the future.”
10 & 10
The Renewable Portfolio Standard is the percentage of electricity that utilities must source from renewables. This is presently set at 25% and will increase annually, topping out at 40% in 2035. “The thing is, Delaware does not have enough renewable energy to meet the current mandate, let alone the future,” said State Rep. Mike Smith (R-Pike Creek Valley). “But our state allows utilities that can’t hit the mark to buy their way out of it by paying a state fee. In each of the last two years, Delmarva Power has paid about $13 million annually in these compliance fees—costs it has passed along to consumers.”
Rep. Smith’s proposal would roll back the Renewable Portfolio Standard to 10% and freeze it there for 10 years, providing time for more renewables to come online and giving ratepayers some relief.
Pull the Plug
Under state regulations adopted despite massive public opposition, automakers will be required to deliver an increasing number of zero-emission vehicles (ZEVs) for sale in Delaware starting one year from this fall. Beginning in Fall 2026, 43% of new cars and trucks sent from manufacturers to Delaware dealerships will be required to be ZEVs. The percentage will increase annually, culminating at 82% in 2032. According to the most recent U.S. Department of Energy data, ZEVs continue to have limited appeal in Delaware. That year, there were 35,000 registered ZEVs and more than 805,000 fuel-powered vehicles.
A bill sponsored by State Rep. Lyndon Yearick (R-Camden, Wyoming, Woodside) would eliminate the mandate. “Our state is already struggling to update its electricity distribution systems, with ratepayers picking up the tab. We shouldn’t be forcing people into cars they don’t want to drive and adding insult by making them pay higher electricity bills to build a support infrastructure for these vehicles.”
Boringly Dependable
PJM Interconnection, the operators of the regional power grid serving Delaware, have sounded the alarm for the last several years and did so again on Monday before a joint meeting of the House and Senate energy committees. PJM officials say that fossil fuel power plants that provide sustainable, reliable power have been rapidly retired due to political (bad policy) and economic factors. Renewable energy facilities have not been built fast enough to replace them and can’t be counted on to provide power when it is most needed. The result has reduced supply in the face of rising demand.
“The answer is boring,” said State Rep. Kevin Hensley (R-Townsend, Odessa, Port Penn). “We should embrace combined-cycle power plants using natural gas and steam turbines. It’s a dull but proven technology that is highly efficient, relatively clean and quiet, and can be brought online quickly to meet demand. Delaware imports up to half of its electricity. Building these plants here could cut the power lost through transmission, increase local security, and reduce distribution costs.”
The feds recently gave PJM the green light to prioritize connecting such plants to its grid. Rep. Hensley’s proposal would encourage plant construction by giving operators significant tax breaks.
Eliminating the Tax You Didn’t Know You Were Paying
Delaware belongs to a group of 11 states called the Regional Greenhouse Gas Initiative that was formed to cut carbon dioxide emissions. In these states, power plants using fossil fuels must buy an “allowance” to emit CO2. These costs are quietly passed along to ratepayers, with Delaware using its share of the proceeds to subsidize renewable energy and efficiency programs. “Delaware has already surpassed the original emissions reduction goals set by RGGI, yet our residents and businesses continue to bear the burden of higher electricity costs,” said State Sen. Gerald Hocker (R-Ocean View). “It’s time to step away from a program that no longer serves its intended purpose and instead focus on policies that promote economic growth and energy affordability.”
The proposal by Sen. Hocker and State Rep. Bryan Shupe (R-Milford South) would remove Delaware from the Regional Greenhouse Gas Initiative, eliminating this hidden tax imposed on Delawareans.
