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.

153rd General Assembly (2025-2026) Introduced by Ron Gray and 11 co-sponsors

Delaware HB 407 guarantees $2M yearly from the Hazardous Substance Cleanup Fund and $8M yearly from Realty Transfer Tax revenues to the Brownfields Grant Program starting July 1, 2

Passed By Senate. Votes: 21 YES

Overview

HB 407 (Session 153, Delaware) proposes amendments to Titles 7 and 30 of the Delaware Code relating to the Delaware Hazardous Substances Cleanup Act and the Realty Transfer Tax. The bill is designed to bolster the state’s brownfields cleanup efforts by transferring and increasing funding to the Brownfields Grant Program from two existing revenue streams. It takes effect upon the Governor’s signature, with specific operative date of July 1, 2026.

Purpose and Intent

Strengthen funding for Brownfields redevelopment by reallocating and increasing dedicated resources.

Use hazardous-substance cleanup funds and realty transfer tax revenues to support cleanup and revitalization of contaminated or otherwise underutilized properties (brownfields).

Provide stable annual appropriations to accelerate cleanup, redevelopment, and economic activity in impacted communities.

Key Provisions

Earmarking of Hazardous Substance Cleanup Fund:

At least $2,000,000 annually from the Hazardous Substance Cleanup Fund (7 Del. Code § 9114) to the Brownfields Grant Program.

Earmarking of Realty Transfer Tax revenues:

$8,000,000 annually from General Fund revenues derived from the Realty Transfer Tax to the Brownfields Grant Program.

Timing and Effective Date:

Provisions take effect upon signature by the Governor and become operative on July 1, 2026.

Affected Entities and Impacts

Brownfields Grant Program: Increased and more predictable funding, expanding grant availability for site assessment, cleanup, and redevelopment activities.

General Fund and State Revenues: A shift in revenue allocation reduces General Fund liquidity for other uses by earmarking $8 million annually from Realty Transfer Tax receipts to the Brownfields program.

Property Developers and Local Governments: Potentially faster and more cost-effective cleanup of contaminated properties, enabling redevelopment, job creation, and neighborhood revitalization.

Environmental Cleanup and Public Health: More robust resources to remediate hazardous sites, reducing risk to communities.

Financial and Fiscal Considerations

General Fund revenue impact: Ongoing reduction of $8,000,000 annually (FY 2027 onward) due to redirected Realty Transfer Tax revenues.

The bill provides a dedicated funding stream for the Brownfields Grant Program from two sources, reducing reliance on general appropriations for cleanup initiatives.

Fiscal notes indicate the changes are intended to support consistent, long-term investments in brownfields projects.

Summary

HB 407 seeks to boost Delaware’s brownfields redevelopment by guaranteeing annual funding to the Brownfields Grant Program through two sources: a minimum of $2 million from the Hazardous Substance Cleanup Fund and $8 million from Realty Transfer Tax-derived General Fund revenues. The measure aims to accelerate cleanup and redevelopment of contaminated sites while shifting ongoing General Fund resources to support environmental remediation initiatives, effective July 1, 2026, contingent on Governor’s signature.

Bill