Richards Layton & Finger
 

Legislation to Allow Conversion of Industrial Sites in Delaware Coastal Zone Proposed

May 18, 2017

Legislation to amend Delaware’s Coastal Zone Act has been introduced that will allow former heavy industry use sites to be converted to an alternative or additional heavy industry use. Presently, the Coastal Zone Act limits or prohibits a new heavy industry use at an existing or abandoned heavy industry site. The proposed legislation will allow for redevelopment at heavy industry sites that have been abandoned or are the subject of an abandonment proceeding. Redevelopment will require permit approval from the DNREC Secretary and may allow for a bulk product transfer facility at a heavy industry use site that historically had a docking facility or pier. In evaluating a conversion permit application, the DNREC Secretary will consider several factors, including the previous, current and proposed environmental impacts and economic effects. An applicant will also need to provide offsets for any negative environmental impacts and financial assurance for future environmental contamination. Certain industrial uses are not eligible for a conversion permit, including an oil refinery or a liquefied natural gas terminal.


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