This Week in Dover

By Evan R. Park
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​​Several bills advanced in Dover this week touching on innovation funding, environmental permitting, and Delaware’s business fee structure, with implications for startups, manufacturers, technology firms, and other regulated industries across the state.

Senate Bill 315: Expanding Support for Delaware Innovation and Federal Research Funding
Senator Darius Brown has introduced Senate Bill 315, which would expand financial support through the Delaware Technical Innovation Program for small businesses participating in federal innovation grant programs, including the SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs.

What the Bill Does
SB 315 authorizes the Delaware Division of Small Business to provide:

• Matching funds or supplemental grants to eligible Delaware small businesses receiving federal SBIR or STTR awards.
• Support for both Phase I and Phase II federal award recipients.
• Funding aimed at advancing research, development, commercialization, and economic growth in Delaware.

To qualify, businesses must: 

• Have their principal place of business in Delaware.
• Certify that the funded work or commercialization activity will benefit Delaware’s economy.

The bill also gives the Division of Small Business flexibility to establish application requirements, award amounts, and program guidelines based on available funding.

Why It Matters for Delaware Businesses
This legislation strengthens Delaware’s support for innovation-driven small businesses by helping companies bridge funding gaps between federal grant phases and accelerate commercialization efforts.

For Delaware startups, life sciences companies, manufacturers, and technology firms, the expanded program could:

• Improve access to early-stage capital.
• Help businesses retain and grow operations in Delaware.
• Increase competitiveness for federal research funding.
• Encourage job creation and innovation within the state.

The measure reinforces Delaware’s commitment to supporting entrepreneurship, technology development, and high-growth small businesses.

Status: Reported out of the Senate Housing and Land Use Committee
DSCC Position: Supportive / Monitoring

House Bill 402: Clean Air Act Title V Permit Fee Program Extension
Rep. Debra Heffernan has introduced House Bill 402 extending the state’s Clean Air Act Title V Operating Permit fee program through 2029. The program applies to major industrial facilities and certain “synthetic minor” sources that require air quality permits under federal law.

What the Bill Does

• Extends DNREC’s authority to collect annual Title V operating permit fees for an additional three years (2027–2029).
• Maintains the existing fee structure, which includes:
  • A base fee tied to permitting, compliance, and enforcement work performed by DNREC.
  • A user fee based on facility emissions levels.
  • A program fee based on the combined total of the other fees.
• Updates the underlying emissions and staffing data used to calculate fees.
• Increases program fee amounts across all fee categories beginning in 2027.
• Continues annual reporting, oversight, and advisory committee review requirements.
• Allows fees to increase annually by no more than the federal Consumer Price Index, subject to committee approval.

Why This Matters to Delaware Businesses
This legislation ensures Delaware remains compliant with federal Clean Air Act requirements by keeping the Title V permitting program fully funded through industry-paid fees rather than taxpayer dollars. Businesses operating facilities subject to Title V permits should expect continued annual permitting costs and, in many cases, higher program fees beginning in 2027.

For manufacturers, utilities, chemical facilities, and other regulated operations, the bill provides regulatory certainty by extending the permitting framework through 2029 while preserving DNREC’s authority to administer and enforce air quality permits. Companies should review projected fee impacts and incorporate potential increases into future compliance and operational budgeting.
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Effective Date: January 1, 2027
Status: Reported out of the House Natural Resources and Energy Committee
DSCC Position: Supporting

Other Legislative Activity
On May 12, House Bill 400, legislation increasing various fees paid to the Secretary of State's office, passed both the House and Senate and now awaits action from Governor Matt Meyer.

Additionally, State Rep. Kevin Hensley announced this week that he will not seek re-election in 2026. He is the sixth member of the Delaware House to announce plans not to run again in November, including five Republicans and one Democrat. In the Senate, one Republican and one Democrat have also announced they will not seek re-election in 2026.

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