CHAPTER 525

FORMERLY

SENATE BILL NO. 604

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND PART IX, TITLE 29 DELAWARE CODE AND CHAPTER 31, TITLE 20, DELAWARE CODE ESTABLISHING THE DELAWARE ENERGY OFFICE IN THE EXECUTIVE DEPARTMENT, ACHIEVING EFFECTIVE MANAGEMENT OF ENERGY FUNCTIONS OF THE STATE GOVERNMENT, PROVIDING FOR DEVELOPMENT OF A COMPREHENSIVE STATE ENERGY PLAN AND POLICY, PROVIDING FOR DEVELOPMENT OF A STATE EMERGENCY ENERGY SHORTAGE CONTINGENCY PLAN, ENSURING FULL AND EFFECTIVE PUBLIC PARTICIPATION IN THE FORMULATION AND IMPLEMENTATION OF A DELAWARE ENERGY POLICY, PROVIDING FOR EMERGENCY POWERS TO MITIGATE SHORTAGES IN USABLE ENERGY RESOURCES AND ESTABLISHING AN ENERGY FACILITY SITING COMMITTEE.

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

Section 1. Amend Part IX, Title 29 of the .Delaware Code by adding a new Chapter 92 thereto, to read as follows:

"CHAPTER 92. DELAWARE ENERGY ACT OF 1978

§9201. Establishment of Delaware Energy Office

(a) The Delaware Energy Office is established in the Executive Department responsible to the Governor, and shall have the powers, duties and functions vested in the Office by the provisions of this chapter.

§9202. Legislative Findings and Purpose

(a) The General Assembly finds and declares that:

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

(2) Delaware is seriously threatened and adversely affected by the increasing shortage of nonrenewable energy resources;

(3) Growth in the consumption of energy resources is in some part due to wasteful, uneconomic and inefficient uses of energy, and continuation of this trend will adversely affect the social, economic and environmental development of Delaware.

*Restyled as Chapter 94 by Code Revisors.

(4) It is the responsibility of State government to encourage and foster a reliable and adequate supply of energy for Delaware at a level consistent with the protection of public health and safety, the promotion of general welfare and economic wellbeing, and the protection of environmental quality.

(5) The State must provide for the development of a unified State energy policy, and the existing duplication and overlapping of responsibilities for energy policy and energy-related matters among various State departments, divisions, commissions, and agencies prevents comprehensive and effective planning to ensure a reliable and adequate supply of energy for Delaware citizens and the State economy;

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

(b) The purpose of this Chapter is:

(1) To establish the Delaware Energy Office in the Executive Department;

(2) To provide for development of a comprehensive State energy plan and policy;

(3) To achieve, through the Delaware Energy Office in cooperation with the Public Service Commission, the Office of Management, Budget and Planning, and the Department of Natural Resources and Environmental Control, effective management of energy functions of the State government;

(4) To provide for development of a State emergency energy shortage contingency plan in order to ensure the health, safety and welfare of Delaware citizens and industry during any public emergency caused by an actual or impending acute shortage in usable energy resources;

(5) To encourage and ensure full and effective public participation in the formulation and implementation of a Delaware energy policy.

§9203. State Policy

It shall be the energy policy of the State:

(a) To ensure, to the maximum extent practicable,

an adequate and reliable supply of energy for all citizens, businesses and industry of the State;

(b) To foster the prudent research, development and use within Delaware of a diverse array of energy resources, with emphasis on renewable energy resources, and on domestic offshore fossil fuel resources which by reason of their proximity to Delaware can be developed consistent with the energy, environmental and economic needs of the State and the nation;

(a) To employ energy conservation techniques, including performance standards, energy audits and life-cycle cost analysis, in the design, construction and renovation of State-owned and State-assisted facilities, and in the procurement of State materials and supplies;

(a) To promote energy conservation in the construction and operation of new residential and non-residential buildings, industrial plants, and electric power plants, through the application of heating, ventilation, cooling, insulation, and design techniques, energy efficiency guidelines, energy audits, and life cycle costanalysis;

(a) To cooperate with and assist departments and other agencies or instrumentalities Of Federal, state and local governments, as well as regional, metropolitan, county, municipal or other local or private agencies in the development, implementation and coordination of energy policies and programs;

(a) To encourage energy efficient modes of transportation for people and goods, including, but not limited to public transportation, park-and-ride lots, vanpools and carpools, variable working schedules, preferential traffic controls, and urban area traffic restrictions;

(a) During emergency energy shortages, to assist Delaware citizens and industry in managing scarce energy resources in order to maintain the public health, safety and welfare and minimize the adverse impact on the physical, social and economic well-.being of the State;

(a) To assist and advise industries, businesses and public utilities of this State in the application of energy conservation and supply enhancement measures in industrial and commercial apparatus and processes, and to seek and promote the availability of reliable

and abundant energy resources for the use of industrial, commercial and:public utility energy users in the State.

(i) To minimize, consistent with the statutory environmental and land use policies of this State, regulatory delay in thq siting of energy facilities in Delaware caused by overlapping and duplicative permit system applicable to such facilities;

(j) To promote and secure the location within Delaware of projects, programs, institutions, grants, loans, funds and other public or private capital investment for the research, development, innovation and demonstration of uses, processes, apparatus, and other applications of energy technologies utilizing renewable energy resources, or offshore fossil fuel resources;

(k) To assure that State energy policies and plans developed under this chapter shall be, to the maximum extent practicable, consistent with the statutory environmental policies of the State;

(1) To protect energy consumers and users from unfair, deceptive, and anticompetitive acts and practices employed in the marketing, advertising and sale of energy conserving goods and services;

(m) To assure, to the highest degree possible, that the productive capacity of private enterprise, public education, and voluntary initiative are utilized in the development and achievement of the policies and purposes of this chapter; and

(n) To provide a source of impartial and objective informAtion in order that this energy policy may be achieved.

§9204. Definitions

(a) 'Agency' means and includes any executive department, military department, Government corporation, Government controlled corporation, or other establishment in the executive branch of the Government, or any independent regulatory agency.

(b) 'Appliance' means any energy consuming article or device designed for household use, the primary purpose of which is labor saving or personal convenience and which, although connected to public utilities servicing a building is not attached to the building in such a way that it would

be considered part of the building or building system. Water heaters, central heat pumps, central air conditioners, and central heating units are not appliances for the purpose of this chapter.

(c) 'Building' means any structure which includes provision for a heating, ventilating, and/or a cooling system or for a hot water system.

(d) 'Building Code' means any minimum property standards adopted by any local government or other political subdivision of the State.

(e) 'Carpool' means a joint arrangement by a group of private automobile owners in which each in turn drives his own car and carries the other passengers.

(f) 'Construction' means onsite work to install permanent equipment or structure for any facility, but does not include the installation of pollution control equipment.

(g) 'Director' means the Director of'the Delaware Energy Office.

(h) 'Distillate fuel oil' means any fuel oil, gas oil topped crude oil, or Other. petroleum oils (except refined petroluem wax) derived by refining or processing crude oil or unfinished oils, in whatever type of plant such refining or processing may occur, which has a boiling range at atmospheric pressure which falls completely or in part between 550° and 1200° F.

(i) 'Electric power plant' means any electric generating unit, including a gas turbine or a combined cycle unit, which produces electric power for purposes of sale or exchange and has the design capability of consuming any energy resource (or mixture or combination thereof).

(j) 'Energy' means work or heat that is, or may be, produced from anv fuel or source whatsoever.

(k) 'Energy audit' means a process which identifies and specifies the energy and cost savings which are likely to be realized through the purchase and installation of an energy conservation measure or renewable energy resource measure.

(1) 'Energy conservation' means the efficient use of energy resources.

(m) 'Energy conservation measure' means a modification which has been determined by means of an energy audit or by

the Office, by rule, to be likely to improve the efficiency of energy use and to reduce energy costs in an amount sufficient to enable a person to recover the total cost of purchasing and installing such measure, without regard to any tax benefit or applicable Federal financial assistance, within the period of the useful life of the modification involved, or 15 years after the purcahse and installation of such measure, whichever is less. Such term does not include the purchase or installation of any appliance, or any conversion from an energy resource to natural gas, residual fuel oil, or distillate fuel oil.

(n) 'Energy distributor' means each person, wherever resident or located, who imports into this State energy resources for use, distribution, storage, or sale in this State after the same shall reach this State; and also each person who produces, refines, manufactures, blends, or compounds energy resources and sells, uses, stores, or distributes the same within this State. In no case, however, shall a retail dealer be construed to be a distributor.

(o) 'Energy efficiency guidelines' means, with respect to particular buildings, industrial plants, appliances, or energy resource consuming articles, the measures or minimum accepted levels of energy conservation which the Office determines to be appropriate for the location and category of such or similar buildings, industrial plants, appliances, energy resources or energy consuming articles.

(p) 'Energy facility' means any plant, operation, or supporting facility thereof which produces, converts, distributes or stores energy or converts one form of energy to another; in no case, however, shall an operation conducted by a person acting only as a retail dealer be construed as an energy facility.

(q) 'Energy information' includes (A) all information in whatever form on (i) fuel reserves, exploration, extraction, and energy resources (including petrochemical feedstocks) wherever located; (ii) production, distribution, and consumption of energy and fuels wherever carried on; and (B) matters relating to energy and fuels, ouch as corporate structure and proprietary relationships, costs, prices, capital investment, and assets, and other matters directly related thereto, wherever they exist.

(r) 'Energy resources' means any force or material which yields or has the potential to yield energy, including but not limited to electricity, petroleum products, residual fuel oil, distillate fuel oil, natural gas, methane, liquefied

natural gas, manufactured or synthetic fuel gases, coal, solid wastes, biomass, wood, solar radiation, geothermal or mineral formations, thermal gradients, wind, water, enriched uranium, U235 and U238, plutonium, U239 or other nuclear fuels.

(s) 'Environmental residual' means any pollutant or pollution-causing factor which results from any activity.

(t) 'Industrial plant' means any fixed equipment or facility, other than an electric power plant, which is used in connection with, or as part of, any process system for industrial production or output which includes a boiler, gas turbine unit, combined cycle unit or internal combustion engine which consumes and is designed to consume a nonrenewable energy resource (or mixture or combination thereof).

(u) 'Insulation material' means any material or assembly of materials used primarily to provide resistance to heat flow, including mineral fibrous, mineral cellular, organic fibrous, organic cellular or reflective materials, whether in loose-fill, flexible, semi-rigid or rigid form.

(v) 'Life-cycle cost' means the total costs of owning, operating, and maintaining a building, industrial plant, appliance, or energy consuming article over its economic life, including its fuel and energy costs, determined on the basis of a systematic evaluation and comparison of alternative costs for such buildings, industrial plants, appliances, or energy consuming articles.

(w) 'Life cycle cost analysis' means the estimation and comparison of the life-cycle costs of buildings, industrial plants, appliances, or energy-consuming articles so as to increase the efficient use of a particular building, industrial plant, appliance, or energy-consuming article.

(x) 'Local Government' means any political subdivision of the State.

(y) 'LPG' means propane and butane, but not ethane.

(z) 'Minimum property standards' means rules and regulations adopted by the Federal government, the State or any political subdivision thereof, including any local government, establishing minimum accepted levels of site design, site preparation, exterior and interior appurtenances which apply to buildings or industrial plants.

(aa) 'Nonrenewable energy resources' means energy resources which are not renewable energy resources.

(bb) 'Non-residential building' means any building which is not a residential building or industtial plant, including, but not limited to any building which is open to the public during normal business hours; any building which provides facilities or shelter for public assembly; any building used for educational, office or institutional purposes; any office building; any sports arena, supermarket, transportation terminal, retail store, restaurant, or other commercial establishment which provides services or retails merchandise; any portion of an industrial plant used primarily as office space; any building owned by any state or any political subdivision or agency thereof, including libraries, museums, schools, hospitals, auditoriums, sports arenas, and university buildings.

(cc) 'Office' means the Delaware Energy Office established by this Chapter.

(dd) 'Offshore' means any portion of the Delaware coastal zone as defined in Title 7, Chapter 70 of the Delaware Code, of Delaware underwater lands as defined in Title 7, Chapter 61, of the Delaware Code, or of the Outer Continental Shelf, as defined by Federal law, contiguous to the Delaware coastal zone or Delaware underwater lands.

(cc) 'Operation' means the use of a facility for any purpose during its useful life following the completion of site selection and construction of such facility.

(ff) 'Performance standards' means rules and regulations adopted by the Office which establish minimum accepted levels of site design, site preparation, exterior and interior appurtenances which apply to State-owned or State-assisted buildings or industrial plants, or which establish minimum accepted levels of life-cycle cost and life-cycle cost analysis which apply to State purchasing and procurement practices.

(gg) 'Person' means any individual, public or private corporation, partnership, firm, association, organization, trustee or other fiduciary appointed pursuant to law or by any court, company, municipality, town, county, board, bureau, commission, department, authority, agency, committee, council, legislative committee, school district, public agency, public utility, the State or any agency, political subdivision, or instrumentality thereof, the United States to the extent authorized by Federal law, or other legal entity.

(hh) 'Petroleum product' means crude oil, residual fuel oil, or any refined petroleum product.

(ii) 'Public utility' means a facilty that generates electricity, by any means, and sells it to the public.

(n) fR-value' means the numerical measure of the degree of thermal resistance of a particular material or assembly of materials, expressed at the mean temperature of the matieral or assembly of materials under design conditions.

(kk) 'Renewable energy resource' means energy resources which are capable of being continuously restored by natural or other means, or which are so large as to be useable for centuries without significant depletion, and include but are not limited to solar radiation, solid wastes, biomass, wind, geothermal formations, tidal and other water resources, thermal gradients, deuterium and hydrogen.

(11) 'Renewable energy resource measure' means a modification which has been determined by means of any energy audit or by the Office, by rule, to involve changing, in whole or in part, the energy resources used to meet the requirements of any building or industtial plant from a non-renewable energy resource to a renewable energy resource; and to be likely to reduce energy costs in an amount not less than the total cost of purchasing and installing such measure, without regard to any tax benefit or any applicable Federal financial assistance, within the period of the useful life of the modification involved, or twenty-five years after purchase and installation of the modification, whichever is less. Such term does not include the purchase or installation of any appliance.

(mm) 'Residential fuel oil' means the fuel oil commonly known as: (a) No. 4, No. 5 and No. 6 fuel oils; (b) Bunker C; (c) Navy Special Fuel Oil; and all other fuel oils which have fifty percent boiling point over 700° F in the ASTM d-86 standard distillation test.

(nn) 'Retail dealer' means any person who engages in the buiiness of selling energy resources from a fixed location such as a service station, filling station, store or garage directly to the ultimate users of said energy resources.

(oo) 'State-assisted facility' means any building, the construction, capital or operating costs of which are financed in whole or part by State general or special fund appropriations or disbursements, or by Federal funds.

(pp) 'Useful life' means that period of time for which a modification used under specified conditions is able to fulfill its intended function.

(qq) 'Major energy consumer' means any person who owns, leases, or operates a unit such as a building, industrial plant, electric power plant, appliance or energy-consuming article within the State which, alone or in combination with other such units, consumes or has a design capability of consuming any energy resource at a fuel heat input rate of one million kilowatt hours per year, one thousand barrels of petroleum products per year, one million cubic feet of natural gas per year, or one hundred short tons of coal per year;

or greater.

§9205. Director; Appointment

(a) The administrator and head of the Office shall be the Director of the Delaware Energy Office, who shall be a person qualified by training and experience to perform the duties of his office and preference shall be given to a resident of this State provided that he is acceptable and equally qualified. The Director shall be appointed by the Governor, with the advice and consent of the Senate, to serve at the Governor's pleasure. He shall be paid an annual salary not in excess of $30,000.00.

§9206. Powers, Duties and Functions of the Director

The Director shall:

(a) Supervise, direct and account for the administration and operation of the Office, its units, functions and employees;

(b) The personnel hired shall be exempt from the provisions of Title 29, Delaware Chapter 59;

(c) Establish, consolidate, abolish, transfer or combine the powers, duties and functions of the units and offices within the Office as the Director, with the written approval of the Governor, may deem necessary, provided that all powers, duties and functions required by law shall be provided for and maintained.

(d) Make and enter into any and all contracts, agreements or stipulations, and retain, employ and contract for the services of public and private consultants, research and technical personnel and to procure by contract, consulting, research, technical and other services and facilities, whenever the same shall be deemed by the Director necessary or desirable in the performance of the functions of the Office and whenever funds shall be available for such purposes. All

necessary legal services shall be provided pursuant to Chapter 25 of this Title. All contractual obligations shall be within the limits of the appropriation therefor.

(e} Delegate any of his powers, duties or functions to any employee, except his power to remove employees

of the Office or to fix their compensation;

(f) Establish and promulgate such rules and regulations governing the administration and operation of the Office as may be deemed necessary by him and which are not inconsistent with the laws of this State;

(g) Maintain such facilities throughout the State as may be required for the effective and efficient operation of the Office;

(h) Adopt an official seal or seals for the Office.

§9207. Powers, Duties and Functions of the Office

The Delaware Energy Office shall:

(a) Act as 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:

(1) Data on energy supply, demand, costs, projections, and forecasts;

(2) Inventory data on energy research and development projects, studies or other programs conducted in the State under public and/or private supervision or sponsorship, and the results thereof. To this end the Office shall develop an energy information reporting system for use by all government agencies and by the general public.

(b) Develop and recommend to the Governor a comprehensive long-range State energy policy to achieve maximum effective management and use of present and future sources of energy, such policy to include but not be limited to an energy conservation plan, a State-facilities energy management plan, an annual energy supply and demand forecast, an emergency energy shortage contingency plan, and an energy research and development program.

(c) Continually review and coordinate all State government or State-assisted management, research, development and education programs relating to energy matters; and act as the lead planning agency to represent the State before the Federal government, local governments, other state and local governments, regional or inter-state agencies, and other appropriate public and private agencies in all energy and energy resource matters;

(d) Conduct public educational programs promoting conservation of energy and energy resources within the State;

(e) Recommend to the Governor and General Assembly needed energy legislation and recommend such modifications of energy policy, plans and programs as deemed necessary and desirable;

Secure directly from any officer, office, department, commission, board, division, bureau, institution, authority or other agency or instrumentality of the State or its political subdivisions any information it deems necessary to carry out its functions; and all such officers and agencies and instrumentalities shall cooperate with the Office and, to the extent permitted by law, furnish such information to the Office as it may request;

(g) Develop and promulgate energy conservation performance standards and methods to be employed in the acquisition, lease, design, construction, renovation and maintenance of all State-owned or State-assisted facilities and in the procurement and purchase of all State materials and supplies. Upon promulgation by the Office, such energy conservation performance standards and methods shall be applied and enforced by the Department of Administrative Services in carrying out its functions of building construction review and procurement of State materials and supplies. Such methods and standards shall require the application of life-cycle cost analysis, in addition to initial construction, renovation or acquisition cost-analysis, in the design construction, renovation and maintenance of State-owned and State-assisted facilities and in the procurement and purchase of State materials and supplies;

(h) Act as a lead agency in the State to carry out energy related administrative and program functions and/ or activities established by Federal law, regulations or guidelines, including all functions activities

delegated to the State or its political subdivisions under the Energy Operation Act of 1977, 91 Statute 565, and, where deemed necessary or desirable by the Office, apply for, accept, and expend, as well as require public and private agencies, instrumentalities, and institutions to submit for review or approve or disapprove applications for, grants-in-aid and assistance from public sources, including the Federal government, for the purposes of this chapter, including but not limited to:

(1) Federal grants-in-aid and funding for State energy conservation plans;

(2) Energy conservation programs for existing residential buildings, schools and health care facilities, state buildings, and buildings owned by units of local government;

(3) Financing of renewable energy resource systems, including solar and wind energy systems, for new and existing residential structures;

(4) Technical assistance to industries for coal conversion and use of recovered materials;

(5) Demonstration of solar heating and cooling in State buildings;

(6) Long-range energy conservation planning for State buildings;

(i) Require, in order to assure the adequate development of relevant energy information as provided in §9207(a), that all energy distributors and major energy consumers file such reports, data and forecasts and at such dates as the Office may request.

(1) In obtaining information under this subsection, the Office:

(a) Shall not request information already furnished by a person or political subdivision in this State to the Delaware Public Service Commission, the United States Environmental Protection Agency, the Delaware Department of Natural Resources and Environmental Control, the United States Department of Energy or Federal Energy Regulatory Commission thereunder, or the United States Department of

Interior, if such information is available to the Office. The Office shall also, to the maximum extent practicable avoid requesting information already furnished by a person or political subdivision in this State to any other Federal, State or local regulatory authority, if such information is available to the Office;

(b) May, with the written consent of the Governor subpoena witnesses, material and relevant books, papers, accounts, records and memoranda; administer oaths; and cause the depositions of persons residing within or without Delaware to be taken in the manner prescribed for depositions in civil actions in Delaware Superior Court.

(2) In responding to requests for information under this subsection, it shall be a sufficient answer to specify the records wherein the information is contained and either allow the Office to examine and copy same or refer the Office to a Federal, state or local regulatory authority or other public or private agency which will allow the Office to examine and copy same.

(3) Any person who is served with a subpoena to give testimony orally or in writing or to produce books, papers, correspondence, memoranda, agreements or documents or records under this subsection may apply to any Delaware Superior Court for protection against abuse or hardship in the manner provided in the Rules of that Court in the case of depositions.

(4) Information furnished under this subsection shall be confidential and maintained as such, if so requested by the person providing the information, if the information:

(i) is proprietary in nature; or

(ii) consists of geological, geothermal or geophysical information and data, including maps, concerning oil, gas. geothermal or fossil fuel wells. Nothing in this section prohibits the use of confidential information to prepare statistics or other general data for publication, so presented as to prevent

identification of particular persons or sources.

(j) Train and certify energy auditors, and conduct such energy audits as may be deemed necessary and desirable to carry out the purposes and policies of this chapter or any other energy-related law applicable to the State;

(k) Require the annual submission of energy audit reports and conservation plans by departments, offices, boards, bureaus, commissions, authorities and other agencies or instrumentalities of the State or its political subdivisions; and in cooperation with the Department of Administrative Services, evaluate said plans and the progress of said agencies and instrumentalities in meeting the goals of the plans, and advise said agencies and instrumentalities of improvements or changes to be made in the plans and goals;

(1) Have authority to conduct hearings and investigations in order to carry out the purpose and policies of this chapter and to issue subpoenas in furtherance of such authority;

(m) Have authority to sue and be sued;

(n) Have authority to acquire by purchase, grant, devise, lease or contract title to or possession of real property for the purpose of demonstrating facilities which utilize renewable energy resources, which improve the efficiency of energy use or which conserve energy;

(o) Assist the Department of Justice and Division of Consumer Affairs in protecting consumers from unfair, deceptive, and anticompetitive acts and practices in the marketing, sale or distribution of energy, energy resources, energy technologies, and energy conserving goods or services;

(p) Appoint, with the written consent of the Governor, such advisory committees, boards, and task forces as are necessary and desirable to carry out the purposes and policies of this Chapter;

(q) Exercise all other powers and functions necessary or appropriate to cam out the purposes and policies of this Chapter.

§9208. Energy Faciltties Siting Liaison Committee

(a) There is established the Energy Facilities Siting Liaison Committee;

(b) The Energy Facilities Siting Liaison Committee shall consist of the following members:

(1) Director of the Delaware Energy Office;

(2) Chairman, Delaware Public Service Commission;

(3) Secretary of the Department of Natural Resources and Environmental Control;

(4) Director of the Delaware Office of Management, Budget and Planning;

(5) Secretary of the Department of Community Affairs and Economic Development;

(6) State geologist.

(c) The Secretary of the Department of Natural Resources and Environmental Control shall serve as Chairman, and the Director of the Delaware Energy Office as Vice-Chairman of the Committee;

(d) The Committee shall coordinate State energy facility siting activities and policies, including responses to energy facility siting inquiries presented to the Committee or any of its members by representatives of the Federal government, other states, or industry. The Committee shall also:

(1) Evaluate the impact of energy facility siting on resources and the environment;

(2) Plan, on a long-term basis, for energy facility siting in the State; and

(3) Propose regulatory and legislative remedies to energy facility siting problems identified by the Committee.

(e) The Committee shall prepare an annual Energy Facilities Siting Report for transmittal to the Governor and the General Assembly, the initial report to be completed by April 1, 1979. The annual report shall include but not be limited to:

(1) An inventory of all current State and local statutes, regulations and permit requirements which affect the site selection, construction and operation of existing, proposed or potential energy facilities in Delaware;

(2) An inventory of such current Federal statutes, regulations and permit requirements which affect the site selection, construction and operation of existing, proposed or potential energy facilities in Delaware as the Committee concludes duplicate or overlap State or local statutes, regulationa and permit requirements inventoried in part (1) of this subsection by reason of:

(i) The activity, facility, equipment or geographic area regulated;

(i) The information required to be disclosed by the permit application or regulatory compliance procedure; or

(i) The regulatory standard or objective sought to be enforced or attained.

(3) A consolidated outline by means of flow-chart, time-line diagram and prose description of the current steps and procedures applicants for the site selection, construction, and operation of energy facilities of the kind and size existing, proposed or potentially existing in Delaware must follow in order to comply with the current Federal, state and local statutes, regulations and permit requirements inventoried in parts (1) and (2) of this subsection;

(4) Recommendations for the elimination, consistent with the statutory environmental goals of the State, by either executive order or legislation, of such overlap and duplication in the statutes, regulations and permit requirements inventoried in parts (1) and (2) of this subsection as the Committee concludes to be the ca. of delay and costs in the siting of energy facilitie inconsistent with the policies of this Chapter;

(5) Recommendations for increased coordination and cooperation between Delaware and bordering states in the site selection, construction and operation of energy facilities consistent with the polices of this Chapter.

(f) The committee shall have access to all public books, records, reports and other documents to which its individual members have access, unless otherwise prohibited by law.

§9209. Energy Conservation Plan; Components

(a) The Office shall prepare a recommended Energy Conservation Plan for transmittal to the Governor, the initial plan to be completed by January 1, 1979;

(b) The Energy Conservation Plan shall be designed to ensure the public health, safety and welfare of the citizens and economy of Delaware and to encourage and promote conservation of energy through reducing wasteful, uneconomical or inefficient uses of energy resources. The plan shall also be designed to assure, to the maximum extent feasible, that the productive capacity of private enterprise, public education, and voluntary initiative are utilized to reduce wasteful, uneconomical or inefficient uses of energy resources.

(c) The Energy Conservation Plan shall include but not be limited to the following recommendations:

(1) Recommendation of a State energy conservation goal, consisting of a percentage reduction in projected energy condumption in the State for the years 1980, 1985 and 1990, which goal is economically feasible and is achievable by implementation of the Energy Conservation Plan;

(2) Recommendations for lighting, insulation, heating, ventilating, cooling, thermal efficiency and other building design and construction guidelines and standards which increase the efficient use of energy and are economically feasible to implement;

(3) Recommended procedure's for the training and certification of energy auditors and for conducting a statewide program of energy audits of residedtial buildings, nonresidential buildings and industrial plants in order to increase the efficient use of energy in the State;

(4) Recommendations for a continuing program of public education to increase public awareness of the energy and cost savings likely to result from energy conservation and to provide public information and technical assistance in the planning, financing, installing and monitoring of energy conservation measures;

(5) Recommendations to the State Department of Transportation of programs and policies to encourage energy efficient modes of transportation for people and goods, including but not limited to public transportation,

park-and-ride lots, vanpools and carpools, variable working schedules, preferential traffic controls, and urban area traffic restrictions;

(6) Recommendations of energy conservation measures and renewable energy resource measures:

(i) Which can be carried out in residential, nonresidential buildings and industrial plants;

(i) Which increase the efficient use of energy, and;

(i) Which are economically feasible to implement, based on climatic, environmental, demographic, architectural and economic conditions within the State; and recommended programs and policies to encourage, promote and finance such measures.

(7) Recommendations on energy conservation policies, programs and procedures for local units of government in the State;

(8) Any other recommendations which the Office considers to be a significant part of a Statewide energy conservation effort and goal, and which include provisions for sufficient incentives to further energy conservation.

(d) The Energy Conservation Plan shall include a detailed description of:

(1) The estimated energy savings,

(2) The estimated effects on public budgets and revenues,

(3) The estimated impact on the State economy, and

(4) The estimated increase or decrease in environmental residuals as a result of implementing the Plan.

(e) The Energy Conservation Plan shall contain proposals for implementing such recommendations in subsection (c) of this Section as can be carried out by executive order. Upon completion of a draft recommended plan, the Office shall distribute it to interested parties, and make such plan available to the public through the use of public hearings.

(f) The Office shall hold such public hearings on the

Energy Conservation Plan as it deems necessary and desirable. Upon completion of the Plan and any public hearings on the Plan, the Office shall transmit said Plan to the Governor for approval or disapproval. Upon approval, the Governor shall assign administrative responsibility for such implementation as can be carried out by executive order to appropriate agencies of State government, and submit to the General Assembly such proposals which require legislative action for implementation.

(g) The Governor shall transmit the approved Energy Conservation Plan to the President. of the Senate, to the Speaker of the House of Representatives, to the heads of all State agencies and shall further seek to publicize such plan and make it available to all units of local government and to the public at large.

(h) At least every two years or whenever such changes take place as would significantly affect energy supply or demand in Delaware, the Office shall review and, if necessary, revise the Energy Conservation Plan, transmitting such revised plan to the Bovernor. The public hearing procedures contained in subsection (f) of this Section shall not apply to any review or revisions of the Energy Conservation Plan which take place within two years of any public hearings held on the Plan or revised Plan.

§9210. State-Facilities Energy Management Plan; Components

(a) The Office shall prepare a recommended State-Facilities Energy Management Plan for transmittal to the Governor, the initial plan to be completed by December 31, 1978.

(b) The State-Facilities Energy Management Plan shall be designed to ensure that energy conservation methods and life-cycle costing analysis are employed in the design, acquisition, lease, construction, renovation, and maintenance of all new and existing State-owned or State-assisted facilities and in the procurement and purchase of all State materials, supplies and vehicles.

(c) The State-Facilities Energy Management Plan shall include but not be limited to the following:

(1) Development, promulgation and maintenance of life-cycle costing analysis methods to be applied and enforced by the Department of Administrative Services in reviewing the design, construction, renovation and

maintenance of State-owned facilities and in procurement of State materials, supplies and vehicles. The Department of Administrative Services shall also have the authority to review the design, construction, renovation and maintenance of State-assisted facilities and the procurement and purchase practices of political subdivisions of the State only for the purposes of applying and enforcing the life-cycle costing analysis methods developed under this subsection.

(2) A program of energy audits of State-owned and State-assisted facilities, which audits shall be developed and maintained by periodic revision in cooperation with designated representatives of said facilities.

(3) Development, maintenance and distribution to State-owned and State-assisted facilities of guidelines, recommendations and technical assistance for energy conservation measures and renewable energy resource measures to be employed, installed and monitored in said facilities and in the procurement and purchase of materials, supplies and vehicles by the State and political subdivision thereof.

(4) A detailed description of the estimated energy savings, effects on public budgets and revenues, impact on the State economy, and increase or decrease in environmental residuals of implementing the State-Facilities Energy Management Plan.

(d) The State-Facilities Energy Management Plan shall contain proposals for the implementation of such recommendations as can be carried out by executive order.

(e) Upon completion of the draft recommended Plan, the Office and the Governor shall follow the procedures as outlined in §9209(f), (g) of this Chapter, except that no public hearings on the Plan shall be required.

(f) The Office shall update the State-Facilities Energy Management Plan, upon a finding by it that an update is justified.

§9211. Emergengy Energy Shortage Contingency Plan

(a) The Office in cooperation and consultation with the Public Service Commission and the Division of Emergency Planning and Operations shall prepare a recommended Emergency Energy Shortage Contingency Plan for transmittal to the Governor, the initial plan to be completed by October 1, 1978;

(b) The Emergency Energy Shortage Contingency Plan shall be designed to protect the public health, safety and welfate, minimize the adverse impact on the physical, social and economic well-being of the State, and provide for the fair and equitable allocation of scarce energy resources, during emergency energy shortages;

(c) In preparing said Plan, the Office shall collect and compile from all relevant governmental agencies, including the Public Service Commission, the Division of Emergency Services and Operations, and the United States Department of Energy, any existing contingency and energy allocation yr curtailment plans for dealing with emergency energy shortages, or information related thereto;

(d) The Office shall hold one or more public hearings, investigate and review the plans submitted pursuant to this section, and shall approve and recommend to the Governor the Emergency Energy Shortage Contingency Plan to be implemented upon adoption by the Governor after the declaration of State of Emergency pursuant to Title 20, Chapter 31 of the Delaware Code by reason'of an emergency energy shortage. Said Plan shall be based upon the plans collected and compiled, and upon the information provided at the hearing or hearings; provided, however, that the Plan is consistent with such Federal programs and regulations as are already in effect at that time.

(a) The Emergency Energy Shortage Contingency Plan shall include but not be limited to:

(1) Recommendations for differentiated curtailment, during an emergency energy shortage, of energy consumption by energy users on the basis of ability by users and energy distributors to accomodate such curtailments;

(2) A variety of strategies and staged conservation measures of increasing intensity and authority to reduce energy use during a state of emergency declared by the Governor pursuant to Title 20, Chapter 31 of the Delaware Code by reason of an emergency energy shortage; and guidelines and criteria for allocation of energy resources to priority users during such an emergency. The Plan shall contain alternative conservation actions and allocation plans to reasonably meet various forseeable shortage circumstances and to allow a choice of appropriate responses;

(1) Evidence that the Plan is consistent with requirements of emergency energy conservation and allocation laws and regulations of the Federal government and the State Public Service Commission; and with procedures

for implementing the State's responsibility as delegated by any Federal programs, laws, orders, rules or regulations relating to the allocation, conservation or consumption of energy resources and all order, rules and regulations thereto;

(4) A scheduled program of such investigations and studies by the Office as are necessary to determine if and when emergency energy shortages are likely to affect Delaware;

(5) Recommendations of administrative and legislative action reqtired to avert emergency energy shortages;

(6) Recommendations for procedures for fair and equitable review of complaints and requests for special exemptions from emergency conservation measures or emergency allocations.

(f) Upon completion of the draft recommended Plan, the Office and the Governor shall follow the procedures as outlined in §9209 (f), (g) of this Chapter, except that no public hearings on the Plan shall be required other than pursuant to subsection (d) of this Section;

(g) The Office shall update the Emergency Energy Shortage Contingency Plan every three years.

§9212. Energy Research and Development Program; Coordination of Energy and Development

The Office in cooperation and consultation with the institutions of higher education in the State, and the United States Department of Energy, shall develop and carry out an Energy Research and Development Program designed to encourage implementation of the State policies expressed in subsections (h), (i) and (1) of Section 9203 of this Chapter.

§9213. Annual Report, Annual Energy Supply and Demand Forecast

(a) The Director shall make an annual report of the Office's operations to the Governor and the General Assembly. Such report shall also include but not be limited to:

(1) An overview of statwide growth and development as they relate to future requirements for energy in the State, including patterns of urban and metropolitan expansion, shifts in transportation modes, modifications in building types and designs, and other trends and factors which, as determined by the Office, will significantly

affect State energy needs;

(2) A forecast of statewide and geographic end-use sector energy demand and statewide energy resource supply available for the coming year;

(3) An assessment of growth trends in energy consumption and production and an identification of potential adverse social, economic or environmental impacts which might be imposed by current trends;

(4) Estimates of energy savings, effects on public budgets and revenues, impact on the State economy, and increase or decrease in environmental residuals in the State of plans, programs and policies of this Chapter and Federal plans, programs and policies implemented in the past year or to be implemented in the coming year;

(5) Inventory and evaluation of energy research and development programs carried out in the past year or scheduled to be carried out in the coming year;

(6) Recommendations to the Governor and to the General Assembly for administrative and legislative actions on energy matters;

(7) A summary review of the Office's activities since its inception.

§9214. Action by State Agencies, Instrumentalities, and Political Subdivisions

(a) Within three (3) months (if a State agency or instrumentality ) or one year (if a political subdivision) of the effective date of this Chapter, all State agencies, instrumentalities and political subdivisions shall review their present statutory authority, administrative rules and regulations, and practices and procedures to determine whether such are consistent with the purpose and policies of this Chapter; shall effect or recommend such changes as may be necessary to comply with the purpose and policies of this Chapter; shall deeignate officers or employees, one from each agency, instrumentality and political subdivision, to serve as the officials responsible for energy matters within the respective agencies, instrumentalities or political subdivisions and shall submit a written report to the Office of their findings and actions pursuant to this subsection;

(b) The Office shall prepare and distribute at the earliest feasible date after the effective date of this

Chapter an index of functions and responsibilities of State agencies, instrumentalities and political subdivisions relating to energy and energy resources in sufficient detail to guide the public and serve as a basis for further steps as may be deemed necessary to assure full coordination without duplication of the energy-related activities of such agencies, instrumentalities and political subdivisions. No later than one hundred twenty (120) days after completion of the index, the Office shall recommend to the Governor and the General Assembly such action as may be necessary to preclude any identified or potential duplication of energy and energy resource related functions and responsibilities of state agencies, instrumentalities and political subdivisions.

§9215. Exemptions

The following positions set forth in this section shall be exempt from Chapter 59 of this Title:

(a) Director of the Delaware Energy Office.

69216. Transitional Provisions

(a) The Office shall have the power to perform and shall be responsible for the performance of all of the powers, duties and functions vested by Executive Order in the Governor's Energy Resources Management Commission immediately prior to the effective date of this Chapter and which are not otherwise specifically transferred to the Office by this Chapter;

(b) Any and all rights of appeal now existing by law with respect to any act or acts constituting the exercise of any function or functions transferred to the Office shall continue to exist with respect to such act or acts as hereafter performed by the Office and each such appeal shall be perfected in the manner heretofore provided by law;

(c) All definitions and references to any Office, commission or agency or any employee, member or similar person of such an office, commission or agency which appear in any other act or law shall, to the extent that the same are consistent with this Chapter and in connection with a function transferred to the Office be construed as referring and relating to the Office or such person or persons of the Office and their powers, duties and functions as established and created by this Chapter.

§9217. Misnomer of Office in Donation

Any misnomer shall not defeat or annul any gift, grant,

devise or bequest of the Office if it sufficiently appears by the will, conveyance or other writing, that the party making the same intended to pass and convey thereby to the Office, or to any office, commission or agency from which have been transferred by the provisions of this Chapter to the Office any powers, duties and functions, the estate or interest therein expressed or described.

§9218. Budgeting and Financing

(a) The Director shall prepare a proposed budget for the operation of the Office to be submitted for the consideration of the Governor and the General Assembly. Such proposed budget, to the maximum extent feasible, shall be prepared in a program zero-base format as well as a line-item format;

(b) The Office shall be operated within the limitation of the annual appropriation and any other funds appropriated by the General Assembly. Special funds may be used in accordance with approved programs, grants and appropriations."

Section 2. Severability

If any provisions of this Chapter, or of any rule, regulation or order thereunder or the application of such provision to any person or circumstances shall be held invalid, the remainder of this Chapter and the application of such provisions of this Chapter or of such rule, regulation or order to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

Section 3. Supremacy

All other laws or parts of laws now in effect inconsistent with this Chapter are repealed, superceded, modified or amended, so far as necessary to conform to, and give full force and effect to, this Chapter.

Section 4. Sunset Review and Repeal

(a) In the year 1980, and every four years thereafter if the Office is continued in existences the State Auditor shall conduct an audit of the Office. The audit shall be completed and the results and report thereof submitted to the Governor and the General Assembly by April 1,11981. The report shall recommend whether or not the Office should continue in operation, should be changed or modified, or should be dissolved and shall contain findings on which to base such recommendations;

(b) This Chapter is repealed effective July 1, 1981. The Office established under this Chapter shall have six (6) months from the effective date of the repeal of this Chapter to wind up its affairs, complete disolution of its powers, duties and functions and render a final accounting to the Governor and the General Assembly.

Section 5. Amend Chapter 31, Part II, Title 20, Delaware Code, by adding thereto a new Section 3130 to read as follows:

"§3130. Emergency Powers of the Governor During Energy Crisis

(a) 'State of Emergency' means an emergency proclaimed as such by the Governor pursuant to Section 3125 of this Title;

(b) As used in Section 3125 of this Title, 'Disaster' or 'Emergency' are defined to include situations where the health, safety and welfare of the citizens of this State are threatened by reason of an actual or impending acute shortage in useable energy resources, whether resulting from natural disasters, disruptions in fuel supplies, national defense circumstances, international trade obstructions, or other causes;

(c) In determining whether an actual or impending acute shortage in useable energy resources exists, the Governor shall consider the energy resources and requirements of the entire region including all states with contiguous borders with the State of Delaware.

(d) Upon reasonable determination by the Governor that a disaster or emergency exists, the Governor may proclaim a state of emergency and in connection therewith issues orders rules and regulations which may, by way of example rather than of limitation, provide for:

(1) Public appeals requesting customers to voluntarily reduce their energy consumption;

(2) A voltage reduction on a continuous basis;

(3) Elimination of all outdoor flood and advertising lighting, except for the minimum level to protect life and property and a single illuminated sign identifying commercial facilities that are open after dark.

(4) Reduction of general lighting levels in stores and offices as close to minimum safety levels as possible;

(5) Elimination of show window and display lighting;

(6) Reduction in the number of elevators operating in office buildings during non-peak hours;

(7) Reduction in parking lot lighting by a designated percentage,

(1) Maintaining temperatures in buildings at fixed minimum temperatures by operation of cooling equipment and fixed maximum temperatures by operation of heating equipment;

(1) Minimizing work schedules, as for building cleaning, maintenance and restocking, which would require offices or industrial facilities to be open beyond normal working hours;

(2) Curtailment of nightime sports, entertainment and recreational activity;

(3) Closing of public museums, art galleries and historic buildings;

(4) Requiring Sunday closings of retail establishments, except for services essential to the public;

(5) Requiring closings of all retail establishments during certain specified hours of the day, except for services essential to the public;

(6) Directing all utility customers except those performing services essential to the public to reduce their use of energy, as compared to a similar billing period in the preceeding twelve (12) months, by a designated percentage;

(7) Interrupting loads on a rotating basis during certain prescribed hours;

(8) Implementing a progressive reduction in the use of energy by manufacturing and commercial customers on an as required basis down to minimum levels required for basic plant and employee security;

(9) Requiring residential customers to curtail their use down to normal life support requirements;

(10) Establishing and implementing programs, controls, standards, priorities and quotas for the

allocation, conservation and consumption of available energy reserves;

(19) Establishing and implementing regional program and agreements for the purposes of coordinating the energy resource program and actions of this State with those of the Federal government and other states and localities;

(20) Imposing an excess power and energy surcharge on any amounts by which a customer's energy consunptionn exceeds the level fixed by curtailment directives;

(21) Directing that utility service be disconnected to customers who fail to comply with curtailment directives."

Section 6. It is declared to be the legislative intent that, if any subsection, sentence, clause, or provision of Section 5 of this Act is held to be invalid, the remainder of the Section shall not be affected.

Section 7. This Act shall take effect on July 1, 1978.

Approved July 12, 1978.