Delaware lawmakers advance a bill that would override a Sussex County Council decision effectively halting an offshore wind project.
In December, Sussex County Council voted four to one to deny US Wind a permit that would allow the company to construct an electrical substation in Dagsboro, despite Sussex County’s Planning and Zoning Commission recommending the application's approval.
This conditional use permit is the last permit US Wind needs to proceed with its 114-turbine offshore Maryland wind project.
While the turbines will reside off the Maryland coast, US Wind is pursuing a parcel of land next to the decommissioned Indian River Power Plant to serve as the onshore power connection point due to the benefits of the existing infrastructure.
US Wind appealed county council’s decision to the Delaware Superior Court, but with a ruling not expected for several more months, State Sen. Stephanie Hansen (D-Middletown) filed a bill that would retroactively grant the permit by revoking the county’s ability to deny it.
“This is not state government usurping local control. This is about state government taking back its ability to meaningfully act and protect all Delawareans when it comes to issues of energy pricing, energy supply and energy reliability," Sen. Hansen said during the bill's hearing in the Senate Environment, Energy and Transportation Committee Monday.
During her opening remarks, Sen. Hansen explained Delaware does not produce enough electricity to meet its needs — in fact, Delaware produces less energy than any other state in the country and consumes almost 100 times more energy than it produces.
Because the First State does not generate enough electricity to meet its needs, it purchases electricity wholesale from regional grid operator PJM to cover the deficit.
In 2023, Delaware received close to 60% of its energy needs from out-of-state suppliers, which has been inflating ratepayer costs.
"For the last several years, the state has passed legislation making it clear that offshore wind needs to be a part of our energy future. Not only do we need offshore wind to reach our climate action goals and implement our state energy plan, but we now have this looming energy reliability problem," Sen. Hansen said.
While the bill does not directly call out Sussex County, the language chosen does not affect New Castle or Kent counties in its current form.
Despite this, Republican lawmakers expressed grave concern over the precedent set by passing such a bill and argue it could be expanded later to minimize local control.
"This is very specific. It is a spot zoning— I am surprised that it would hold up in a court," Sen. Eric Buckson (R-Dover South) said. "If we can create a law specific for that, then we now have confidence to come back and overturn other local land use decisions or other decisions because we know better, and I represent below the canal, and we don't appreciate that. I'm a Delaware senator when it comes to laws, but I'm a local guy, elected locally, and I disagree with that type of thinking. I think we should work together."
Sen. Minority Whip Brian Pettyjohn (R-Georgetown) expressed similar concerns, arguing the bill could be a precursor for more state-local power struggles.
“We're casting the mold right now that if the state doesn't like what a county does, or it could be a town later on as well, one of our cities or towns, then we're just going to go ahead and pass a piece of legislation to override it," Sen. Pettyjohn said.
Close to sixty members of the public came to testify on the bill — the majority speaking in opposition.
Those in favor argued one county council decision should not deny the entire state from reaping the benefits of a renewable energy project, while those opposed aligned with Republican lawmakers in arguing the state should not be able to override local decisions.
Some members of the public also argued it would be inappropriate for the state to intervene while the Delaware Superior Court is currently contemplating the legality of the permit denial.
While the bulk of the project's benefits and electricity would go to Maryland, US Wind has promised the First State Several perks for its formal participation in the project.
The company's agreement with Delaware will provide the State Energy Office with 150,000 renewable energy credits, which will be transferred to Delaware utility companies and are expected to ultimately lower customer bills.
The deal also includes funding from US Wind for coastal waterway dredging, clean energy workforce training, environmental scholarships and resiliency and capital projects at state parks. The community benefits agreement is worth $40 million over 20 years.
The substation land lease with Delaware State Parks will total more than $12 million over 25 years.
US Wind CEO Jeff Grybowski says if the permit is granted, the company is on track to sign a construction contract this year with plans to begin building in 2027 and complete the project in 2029.
The bill was released from committee with only Democratic support and heads to the full Senate for consideration.
