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November 26, 2025 In Blog

Affordable Housing Challenges and Regulatory Impacts in Delaware

By: Jane Brady, Chair, A Better Delaware  

The Taxpayers Protection Alliance recently conducted a review of foreclosures on residential properties throughout the country. Delaware, sadly, has the fourth highest rate of those foreclosures.  The experts who made that review determined that “zoning laws and land-use regulations significantly contribute to rising home prices” and cited restrictions on density (such as single-family-only zoning), building heights, lot sizes, and land-use types as factors that serve to limit the supply of land available for development of single-family homes.

It is certainly true that regulations affect construction of housing in Delaware.  Recent events make that very clear. In 2009, the General Assembly passed a law requiring all new residential buildings to be zero net energy capable by the end of this year, 2025.  Zero net energy is reached when a building is constructed to produce as much renewable energy as it consumes over a year, often through intense insulation, energy systems such as heat pumps, air quality monitoring and on-site renewable energy generation, such as with solar panels.

To comply with the statute, the Delaware Department of Natural Resources and Environmental Control prepared regulations to implement the intent of the General Assembly.  They proposed one of the most aggressive energy codes in the country, which was set to take effect on December 31, 2025.

The Homebuilder Association and other advocacy organizations opposed the added requirements and unrealistic timeline. There is a housing affordability crisis in Delaware, and the new, expensive requirements are certain to affect both the business in construction and real estate sectors but also will add costs and time to the provision of housing to Delaware consumers, causing further harm.

Fortunately, this time, the concerns were heard and appreciated.  Last week, Gregory Patterson, Secretary of the Delaware Department of Natural Resources and Environmental Control announced he would decline approval of the Department’s own proposal on the energy code.  As he stated, “implementing ambitious new energy standards with mere weeks of lead time is not realistic.”  Further, he noted that there had not been adequate analysis of the proposed regulations or sufficient consideration of the significant increase in the costs of compliance with the regulations.

That is good news for anyone in Delaware hoping to buy a home. But, not only for those hoping to buy – those who rent face challenges as well, and the increased costs would have been passed on by the owners of the rental units to the tenants.

In an effort to address the shortage of affordable housing, the various state and local agencies which provide access to rental accommodations have joined together to create a statewide waiting list of people looking for housing. Remarkably, there are over 20,000 people on the list, according to Matthew Heckles, Director of the Delaware State Housing Authority.

The situation with the proposed regulatory mandates for housing construction highlights another aspect of Delaware government, the significance of which many are not aware. State agencies are regularly given the authority by the General Assembly to create regulations to implement the laws the legislature passes.  That includes the Department of Education, Natural Resources, and Labor, as well as the many other agencies in Delaware’s government.  There are rules that provide for public notice and publication, opportunity for public comment, sometimes for a public hearing as well before the regulation can be adopted. These regulations can have significant impact on consumers, businesses and families in our state.

There is a place where you can go to see what new regulations are proposed. Each month, on the first of the month, the Registrar of Regulations is published. It can be accessed at regulations.delaware.gov   In addition to the compilation of the proposed changes in regulations each month, that link will also take you to the Delaware Administrative Code, which reflects all the regulations currently in effect in Delaware. There is also a historical accounting course available from July 1997 available. This is where the EV Mandate first made its formal appearance.

Many people keep on top of what the General Assembly is doing. From January to June, our legislators meet, hold hearings and vote on bills.  But the real impact of that legislation may more acutely be felt in the regulations the agencies involved adopt to implement the law.  And the implementation of regulations occurs year-round, not just during the legislative session.  It is important that you are aware of the way regulations are proposed and adopted, as they affect your everyday life.

We appreciate Secretary Patterson’s insight into the potentially terrible and unintended consequences that immediate implementation of the proposed regulations on zero net energy construction would have had. We look forward to a commonsense plan that keeps regulatory compliance costs low enough that a home is within reach for all Delawareans.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.

 

November 21, 2025 In In The News

Powering Delaware’s Future: Why Modular Nuclear Is the Smart Choice

By: Jane Brady, Chair, A Better Delaware 

Delaware stands at a crossroad – a crossroad where opportunity awaits – with the right choices.

Energy in Delaware remains expensive. There are many suggestions about why, but shutting down generators before replacing the power they provide, speculation on alternative sources that can’t prove the value of their products, changing the definition of terms to allow pet projects to go forward, and failing to properly perceive the detriments and benefits of new technology all contribute to Delaware’s standing as the state with the 11th highest cost of electricity in the nation.

Delaware does have choices and opportunities. First, maintain the status quo until we find alternatives we can actually live with. Once Delaware provided about 60% of its electric power needs within the state. Today, because of decisions by our General Assembly, to close operating plants without replacing their capacity and change the relationship between generators of power and the companies we pay to provide that power, Delaware now imports more than 60% of our electricity from out of state. And we overpay for what we get, because about 10% of the electricity we buy is lost during the transmission to our state. Imagine! Your electric bills could be 10% lower with one small change.

Second, look for efficient and cost-effective alternatives to the sources of energy you wish to forego (in this instance, our General Assembly has determined to forego oil and gas). The General Assembly favors wind and solar as alternatives.  The harsh reality is that the cost of energy generated by wind is extremely expensive, seasonably unreliable and has massive negative impacts on the environment, especially if it is located offshore.  Solar suffers the same lack of reliability.  And solar’s impact on farming, when located adjacent, has not been fully understood. That is important in a state where agriculture is still the number one product, and corn and soybeans fields are everywhere (at least in the downstate and lower New Castle County areas).

There is an alternative we should explore. Nuclear. If the preference of business is any indicator, this is the way to go.  Bill Gates just invested in getting the second tower at Three Mile Island opened, and Google has proposed building 20 modular nuclear power plants. Both efforts are to support the tremendous demand for AI and data management will place on our energy supplies. And, just for comparison, by some estimates, China is outbuilding us in nuclear more than 20-1.

Nuclear was first pursued as a clean way to generate electricity in the 1970s.  But there were drawbacks. The nuclear power plants of old were perceived as dangerous, adversely affecting the waterways into which heated water was pumped, and left piles of “nuclear waste” at their sites.  People chained themselves to the gates of the plants to prevent them from opening. Several incidents of systems failure led to concerns about radiation exposure and death.

Today’s alternatives could not be more different. Modular plants, much smaller and designed very differently from the first-generation plants, are coming online in places around the world. They are safer. While the evacuation area around one of the old plants was ten or more miles, the evacuation area for a modular plant is, literally, the perimeter of the property.  Their cooling process is contained, so there is no discharge into tributaries or the ocean.  They use the “spent” fuel cells from the older plants (the “nuclear waste” referenced above) which actually are only about 5% depleted, leaving a great deal of energy remaining. It is estimated that there is enough energy in those used fuel cells to provide electricity to the entire country for 100 years.

What is Delaware’s opportunity? Well, the General Assembly is currently looking at what role Delaware could play in bringing nuclear energy to this State and the region. We at A Better Delaware encourage Senator Hanson, and the other members of the committee examining this issue to be brave, to be bold and to take Delaware to a leadership position on this issue.  While we disagreed (and continue to) with the decision to shut down the Indian River Power Plant, it is a perfect location to bring a modular nuclear plant to Delaware. We should pursue a plan that allows Delaware to contribute to the reduction of unused and potentially dangerous “nuclear waste” and to be at the forefront of providing energy to the region. Delaware would be an exporter of energy and become independent of out of state sources of electricity.  Closer to home generation means lower costs. And we can feel good about accomplishing the goal of inexpensive, clean energy.

Further, this course would answer another issue currently facing the General Assembly – what position to take on data centers. Right now, there is opposition to allowing data centers to locate in Delaware, in part based on the energy demands such businesses might make. Should we become a leader in bringing nuclear energy generation of electricity to the region, businesses requiring vast amounts of power could locate here, bringing good paying jobs and a robust tax base.

Modular nuclear meets all the General Assembly’s goals and more.  Delaware should stand up, apart from our neighbors, and be a leader.  All Delawareans will benefit from the foresight of the General Assembly to act now and make the right choice – choose opportunity.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.

 

 

 

 

November 14, 2025 In Blog

Delaware’s Urgent Need for Responsible Governance and Pro-Business Reform

By: Jane Brady, Chair, A Better Delaware  

The Delaware Economic and Financial Advisory Council (DEFAC) has reported that, in its estimation, the state will have less money next fiscal year – tens of millions less—than in this one.  DEFAC reports to the Governor and the Legislature, particularly those representatives who comprise the committees that monitor and determine appropriations. The response has been panicked.

One immediate result has been a short-sighted and overdone knee jerk response. In a special session on Thursday, November 13, 2025, the legislature passed HB 255, a bill that would “decouple” our tax structure from that of the federal government.  Previously, our tax code provisions regarding depreciation were identical to those of the federal tax code. This provided ease in calculating not only the total tax burden a company would face, but also the advisability of expanding a business or purchasing new equipment.  As Brian DiSabatino, Chairman of the Delaware Business Roundtable has stated, “Our long-standing rolling conformity to the federal tax code simplifies compliance and reinforces our hard-earned reputation for stability and predictability…. HB 255 would raise the cost of capital investment and innovation in Delaware. This happens precisely when we are intensely competing for high-value manufacturing and life sciences projects.”

And this is not the first, or only, imposition Delaware government has made on business that acts to discourage businesses from locating here or expanding. Our corporate tax rate is the highest in the nation, and our personal tax burdens are extremely costly. Income taxes, hidden taxes, excise fees and other transaction costs to our citizens ranks Delaware 7th in the nation in the tax burden state government imposes on individuals.

Our regulatory burden on businesses is also extremely costly. Recent, additional building code requirements, alone, will add thousands of dollars to the cost of homes – right at a time when the Legislature and Governor are claiming a crisis and calling for an increase in affordable housing.

The Legislature created a committee of political appointees to review hospital budgets and make changes as the committee believes appropriate. Many wonder, “Who is next?” Anyone who does business with the state government is concerned – are contractors who build the roads or schools going to be asked to open their books and undergo scrutiny by people who have never run an air hammer or backhoe?

These decisions by our legislature have consequences for all of us. Wallet Hub, in a June 2025 report, ranked Delaware 43rd in economic health among the 50 states.

There are solutions. One clear choice would be to do what each of us does when we see a shortfall coming – we plan ahead and cut back on luxuries, such as eating out, buying brand name items rather than store brand, and choosing hamburger rather than steak. That choice, while clear to all of us, has historically escaped legislative action. Rather, the decisions have been to increase taxes (some, promised to be temporary, are still around a dozen years and several budget surpluses later) or to add fees to transactions with the State, such as vehicle inspections.

We have repeatedly urged that Delaware eliminate the Gross Receipts Tax, an “invisible” sales tax (because you don’t see it itemized in the costs you pay) that burdens poorer consumers and small businesses particularly hard. This tax, that is required on every sale of goods or services an entrepreneur or business makes, hides behind the sign at the state line that says, “Tax Free Shopping.”  It infringes on the ability of businesses to expand and thrive. At a time when Delaware is seeking to bring precious manufacturing and medical research businesses to the state, we should be focused on what we can do to help businesses get a foothold and grow.

And Delaware’s economy still struggles to grow. While our Gross Domestic Product has improved since it was at 0%, it still lags, even when compared to our closest neighbors.  Our tax and regulatory policies do not encourage growth and business development. We are at risk of losing our standing as the “Incorporation Capital of the World,” because we continue to make the business environment challenging for any business seeking to locate here, grow or just succeed.

It is time that Delaware took a broad and careful review of where we are getting the funds to support Delaware government and how we are choosing to spend those funds.  A list of priorities should be established. Be honest with the citizens of our State as to the objectives our Legislature chooses to put first, second and so on. Let us vote for those whose priorities we share.

The Delaware Department of Revenue expects us to not only live on what we make, but also to pay what they impose on us in taxes each year. We should expect no less from our legislators.  We are expected to plan ahead, live within our budget, and we don’t get to choose if we get a raise, when and how much it will be.  Sound fiscal management is expected of us every day. We should expect no less of those we elect.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.