Governor Carney Signs Executive Order Establishing Offshore Wind Working Group

Group will study potential environmental and economic development benefits of offshore wind development

DOVER, Del. – Governor John Carney on Monday signed an executive order establishing the Offshore Wind Working Group to study potential environmental and economic development benefits of offshore wind development to serve Delaware.

“We must look for ways to participate in the development of alternative energy sources,” said Governor Carney. “It’s the right decision for our environment, but the development of new sources of energy is also good for our economy, and for the creation of good-paying jobs. This new working group will help us explore the potential economic and environmental benefits of offshore wind development for Delaware.”

U.S. Senator Tom Carper, the ranking member of the Senate Environment and Public Works Committee and co-sponsor of the Incentivizing Offshore Wind Power Act, attended Monday’s executive order signing.

“I’m proud that Delaware is focusing on offshore wind, which has the potential to power every home, school and business in the First State with clean, renewable energy,” said Senator Carper. “Investing in new offshore wind projects spurs economic growth and has the potential to create good-paying jobs. I’m proud to be part of the effort to grow the offshore wind industry because making smart investments to move us closer to energy independence is a win-win-win for our economy, our security, our health and our planet.”

The working group will begin meeting next month and will review economic opportunities and environmental benefits of offshore wind development, and the costs and benefits of developing offshore wind. Working group members also will review laws and regulations governing the development of renewable energy, and recommend changes. Additionally, they will identify barriers and opportunities involved in developing offshore wind to benefit Delawareans.

Governor Carney gives remarks at Executive Order 13 signing. By December 15, the working group will submit a report to the Governor that makes recommendations on short- and long-term strategies for developing wind power to serve Delaware, and plans to develop job opportunities in the offshore wind industry. The group also will draft any necessary legislation, including possible amendments to Delaware’s Renewable Energy Portfolio Standards Act.

Last week the nine northeast states that comprise the Regional Greenhouse Gas Initiative (RGGI), including Delaware, announced that they would continue the successful emissions reduction program through 2030. The states also announced improvements to the program that will reduce carbon dioxide emissions in the region from the electricity sector by an additional 30 percent between 2021 and 2030.

The additional reductions will help Delaware meet the goals of the U.S. Climate Alliance, which Delaware joined in June. The Alliance, a coalition of states, will uphold the goals of the Paris Agreement on climate change. Earlier this month, Governor Carney also sent a letter to U.S. Interior Secretary Ryan Zinke opposing the Trump Administration’s plans to move forward to allow oil and gas drilling in the Atlantic.

“We as a nation share the responsibility to ensure that energy decisions do not exacerbate the problems associated with climate change that are already being witnessed,” said Governor Carney, in the letter to Secretary Zinke. “The State of Delaware stands firm in its commitment to alternative energy development, and has prioritized working with neighboring states to develop a comprehensive strategy that will maximize the environmental and economic development benefits of adopting renewable energy.”

###

ICYMI: Governor Carney op-ed in The News Journal: “Innovation is Delaware’s path to jobs and prosperity”

WILMINGTON, Del. – Governor John Carney on Sunday published an op-ed in The News Journal titled, “Innovation is Delaware’s path to jobs and prosperity.” In the op-ed, Governor Carney outlines what his administration is doing differently to transition Delaware’s economy, to keep the state competitive, and to make sure Delaware is positioned to create good-paying jobs.

Below is the text from Governor Carney’s op-ed:

CARNEY: “Innovation is Delaware’s path to jobs and prosperity”
By Gov. John Carney

Incyte near Alapocas. Avalanche Industries in Selbyville. Fair Square Financial in Wilmington. ILC Dover in Frederica.

These Delaware-based companies all have this in common: they are relying on innovation to compete in their industries, and create jobs right here in our state.

And that’s something we need more of.

It’s no secret that Delaware’s economy has undergone a period of significant transition.

Since 1990, the percentage of Delaware’s economy consisting of manufacturing jobs has been cut in half.

DuPont now employs fewer than 6,000 people in Delaware, down from more than 30,000.

Automobile manufacturing plants closed in Newport and Newark, and the steel mill in Claymont was shuttered, eliminating job opportunities that existed for generations of Delawareans.

These losses have been difficult for many in our state.

But the bottom line is this: Delaware’s economy has changed and we must change with it.

Our economy has become more entrepreneurial and small-business driven. Innovative companies demand higher-skilled workers, and we’re competing not just with other states, but with other countries, for jobs and talent.

We must do things differently to ensure that Delaware remains a leading state to do business, and create good-paying jobs.

Here’s what my administration is doing to help:

Earlier this year, we partnered with DuPont and the University of Delaware to create the Delaware Innovation Space. This is a nonprofit that offers what many start-ups cannot afford on their own: state-of-the-art laboratories, premium lab equipment, and quality office space.

It uses the campus at DuPont’s Experimental Station near Wilmington. This is the same research campus where Delaware scientists invented Nylon and Kevlar — inventions that powered the company, and supported good-paying Delaware jobs for generations. Delaware entrepreneurs at the Innovation Space now have access to business and scientific leaders at the Experimental Station, mentoring programs, hands-on support and education to help them grow, thrive, and create jobs.

We believe this has the possibility to be transformational for companies housed at the Innovation Space. But we also believe this kind of partnership — one that draws on our state’s economic strengths to support new business and job growth — ought to serve as a model for how we improve Delaware’s economy.

Last week, I visited the Innovation Space, and signed paperwork creating the Delaware Prosperity Partnership — a public-private partnership that will lead business marketing efforts for the state. The Partnership will focus on attracting early-stage and technology-focused businesses, recruitment of large employers, and expansion of international business opportunities for Delaware companies.

The Partnership is the centerpiece of our new economic development strategy to position our state to lead in a 21st century economy.

I am personally committed to this effort.

I will chair the Board of the Delaware Prosperity Partnership. The Partnership’s directors will include members of the business community in all three counties, and it will be run day-to-day by a chief executive officer and a full-time staff.

It will work with employers and Delaware educators to make sure we’re training our students to do the jobs Delaware employers need to fill. The University of Delaware, Delaware Tech, Delaware State University, and other leaders in education, have an important role in preparing Delawareans for the workforce, and positioning Delaware’s economy to succeed.

Government, of course, will continue to play an important role in economic development. Within the Department of State, we have created the new Division of Small Business, Development, and Tourism that will focus on supporting Delaware’s small businesses and entrepreneurs.

Division leaders will provide guidance to small business owners on how to navigate local, state and federal laws and regulations. They will help small businesses identify local incubator programs, financing programs, networking events, and other resources.

And the division will improve the state’s outreach to women, minority and veteran-owned businesses. These businesses are crucial to empowering entrepreneurs and creating economic opportunities in diverse communities.

Importantly, this new state government division also will continue to provide oversight of taxpayer-funded programs that provide incentives for businesses to create new jobs in Delaware, and re-locate here.

We operate in a competitive environment, and it is important that we do not allow other states to out-compete Delaware for jobs. But oversight of these taxpayer-funded incentives belongs in government, and that will not change under our new plan.

This month, I am traveling our state to listen to Delaware’s business leaders on a Jobs & Economy Tour. Alongside members of the General Assembly, I have begun a series of roundtables with small business owners. Already we’ve heard the importance of addressing balanced tax and spending policies and addressing rising healthcare costs for businesses.

We also will tour innovative businesses to learn what has made them successful, and see how we can contribute to their success. I visited The Mill in Wilmington this week. I plan to tour companies like Avalanche Industries in Selbyville.

And we’ll visit the pharmaceutical company Incyte — a real Delaware success story. The company grew out of its space at the DuPont Experimental Station and, later this year, will move hundreds of employees into a renovated headquarters at Augustine Cut-off.

We intend to continue building on this momentum.

We recognize that our economy has fundamentally changed, and we must be willing to adapt to keep pace with changing times. As I said when I took office in January, we can no longer expect any single industry or company to be responsible for Delaware’s economic stability, let alone our future.

We are working hard to transition Delaware’s economy, to keep our state competitive, and to make sure we are positioned to create good-paying jobs. This has to be our top priority.

###

Scientist behind Incyte’s Jakafi Ready to Strike Big in Delaware Again

New Castle, Del. – A founding scientist and previous vice president of the pharmaceutical company Incyte is growing his next venture in Delaware.

Dr. Kris Vaddi started Prelude Therapeutics in July 2016 with the vision of creating a leading cancer drug discovery-based biotech company. Prelude currently has about a dozen people working for it at the University of Delaware Star Campus. With assistance from the Delaware Division of Small Business, Development & Tourism, the company plans to grow to around 30 staff and move to a new, larger location in Delaware.

“Prelude is a strong investment for the state, because Dr. Vaddi has a proven track record of growing a biotech company here in Delaware,” said Cerron Cade, Director of the Division of Small Business, Development & Tourism. “In the biotech industry there is pressure to take startups to a place like Massachusetts. So, keeping the company and its significant potential in Delaware is a sign the state is a player in this space.”

The state Council on Development Finance (CDF) voted Monday to recommend a performance-based grant package for Prelude.

Dr. Vaddi said the grant is incredibly meaningful at this stage in his company’s evolution.

“It demonstrates to people who are here and may join the company that the state is supportive,” Dr. Vaddi said. “And there’s more than just financial resources here. There is an economic and research ecosystem that we want to be a part of. It’s a close-knit community, where people take pride in the success of the companies that are founded here.”

Incyte, which was the creation of former DuPont workers, certainly succeeded in Delaware. The company began with a handful of people. Now it has hundreds of well-paid employees and a new, large headquarters in Wilmington.

Armed with the experience of bringing novel drugs to market, Prelude is looking at some of the unfolding mechanisms of cancer to develop next generation medicines. Dr. Vaddi believes that a talented scientific team coupled with energy of a startup environment and the flexibility to move with the science will enable Prelude compete with Big Pharma.

“There’s certainly the pressure of expectations, but we are driven by science and the possibility of making a difference in cancer care,” said Dr. Vaddi. “If you do good science with clear goals, the rest will happen. I truly hope we can create the next successful biotech company for Delaware.”

CDF also Monday recommended performance-based grants for Sallie Mae and General Refrigeration and a bond refinancing for The Independence School.

Media Contact:
Michael Chesney
Director of Communications
Division of Small Business, Development & Tourism
Michael.Chesney@delaware.gov
(302) 672-6827 (office)
(302) 943-9508 (cell)

Governor Carney Named to NGA Economic Development and Commerce Committee

National Governors Association announced 2017-2018 committee membership on Wednesday

WILMINGTON, Del. – The National Governors Association on Wednesday announced that Governor John Carney will serve on the association’s Economic Development and Commerce Committee, to exchange ideas and best practices with fellow governors on economic development and economic growth.

Arkansas Governor Asa Hutchinson will chair the Economic Development and Commerce Committee, and Colorado Governor John Hickenlooper will serve as the committee’s vice chair.

“Governors have the unique ability to demonstrate leadership on economic issues, help drive economic growth, and create an atmosphere that will lead to the creation of good-paying jobs across our states,” said Governor Carney, who last week announced a statewide Jobs & Economy Tour to meet with business leaders. “In Delaware, we’re already focused on restructuring economic development efforts to focus on helping small businesses and entrepreneurs grow, and on fostering innovation. Working together to improve our economy is not a partisan issue, and I’m looking forward to serving with governors of both parties on the committee.”

The committee’s membership includes:

Gov. John Carney, Delaware;
Gov. Kim Reynolds, Iowa;
Gov. Bruce Rauner, Illinois;
Gov. Larry Hogan, Maryland;
Gov. Chris Sununu, New Hampshire;
Gov. Roy Cooper, North Carolina;
Gov. Ricardo Rosselló, Puerto Rico;
Gov. Gina Raimondo, Rhode Island;
Gov. Scott Walker, Wisconsin; and
Gov. Phil Scott, Vermont.

Read more about the NGA’s announcement on Wednesday and the work of the Economic Development and Commerce Committee.

###

Governor Carney Signs House Bill 190 to Modernize the Coastal Zone Act

New law will allow responsible redevelopment of 14 legacy industrial sites along coastline

CLAYMONT, Del. – Governor John Carney on Wednesday signed into law House Bill 190 – bipartisan legislation that modernizes Delaware’s Coastal Zone Act. The new law will allow for the responsible redevelopment of 14 legacy industrial sites in the coastal zone, new job creation, and additional environmental clean-up of those legacy sites along Delaware’s coastline.

Representative Ed Osienski, Senator Bryan Townsend, Senator Brian Pettyjohn, Representative Debra Heffernan, and Representative Ron Gray sponsored the legislation, which passed the General Assembly with bipartisan approval.

Governor Carney – who called for responsible changes to the Coastal Zone Act during a joint address to the General Assembly in March – signed the legislation at the former site of chemical manufacturer General Chemical in Claymont, now owned by D2 Management.

“This spring, I urged members of the General Assembly to make responsible changes to the Coastal Zone Act that would allow us to create new jobs, while continuing to protect our environment. The responsible changes in this bill meet that test,” said Governor Carney. “By passing this legislation, the General Assembly recognized that we can clean up our abandoned industrial sites, responsibly redevelop them, and put them back to work for Delawareans. This new law will help create good-paying jobs, and help us ensure that Delaware’s economy works for all Delawareans. Thank you to Representative Osienski, Senator Townsend, and all members of the General Assembly for their leadership on this issue.”

“I strongly believe the 46-year-old Coastal Zone Act was – and still is – a landmark piece of legislation. It has limited heavy industry activity to only 14 sites, comprising less than 2% of our total coastal zone, and House Bill 190 does not change that,” said Representative Osienski, D-Newark. “House Bill 190 and the conversion permit it creates will achieve the balance between protecting our coastal zone and allowing responsible companies the opportunity to redevelop on the original 14 sites that were active when the CZA passed in 1971.

“If we are able to convert some of these abandoned brownfields into active industries, these sites could employ hundreds, even thousands, of Delawareans, offering good-paying jobs that could become careers for many. The process of remediating and building up an industry would mean more environmental cleaning and construction jobs. An active industry would contribute personal income taxes, corporate income taxes, and property taxes to our local school districts once again.”

Senator Townsend led the effort to approve the law in the Senate. He said the new law strikes a good balance between economic development and environmental protection.

“These changes to the Coastal Zone Act have been robustly debated, as well they should have been because, nationally, the CZA was and remains landmark legislation. I’m confident that the limited scope of the changes we’re making today and the regulations that will govern them will breathe new life into abandoned industrial sites while staying true to the principles underlying Governor Peterson’s vision,” said Senator Townsend, D-Newark. “It is a vision of balance and of environmental protection, of limited heavy industry along a largely undeveloped coast. We owe it to present and future generations to get that balance, and enforcement, right.”

“Let’s be clear, the protections for the vast majority of the Coastal Zone will remain in place and unaffected,” stated Representative Gray, R-Selbyville. “This legislation will appropriately channel development to sites which are best situated to support these types of operations. It provides some common sense flexibility, allowing for the clean-up and re-use of industrial brownfields in a way that will lead to the creation of new, quality jobs, while maintaining a commitment to environmental protection.”

House Bill 190 establishes a conversion permitting process, overseen by the Delaware Department of Natural Resources and Environmental Control (DNREC), to allow additional industrial development on specific legacy industrial sites within the coastal zone.

“The amending of the Coastal Zone Act continues to realize the original intent of the Act in striking a balance between protecting the natural resources and environment of Delaware’s coastal zone, and spurring our state’s economy,” said DNREC Secretary Shawn M. Garvin.

Companies seeking a conversion permit must submit an application that details the environmental and economic impacts of previous uses and planned redevelopment of the site, a proposal to offset any negative environmental impacts of industrial redevelopment, and a plan to prepare the site for the long-term effects of sea-level rise.

“At D2, we’ve always known the site had great potential, but this legislation was crucial to attract larger industrial tenants,” said Keith Delaney, President of D2 Management, who hosted Wednesday’s signing event at the former General Chemical site. “The passage of this bill is a transformative first step toward revitalizing Delaware’s manufacturing industry and creating many new construction and permanent jobs in the region. We thank the Governor and the legislators for their tremendous vision and support.”

###