Today, the Delaware Department of Justice announced that Delaware has received a $2,138,096 supplemental payment through its participation in the Master Settlement Agreement (MSA) with the tobacco industry. Today’s payment represents Delaware’s share of $540 million that was initially withheld in April 2008 by the tobacco industry from its annual payment to states who participate in the MSA. The payment has been deposited into the Delaware Health Fund.

“We welcome the receipt of these funds, particularly during this time of lower state revenue,”
stated Chief Deputy Attorney General Richard Gebelein. “This payment is now available to benefit
Delawareans by supporting health-related programs across our state.”

The $540 million initially withheld by the tobacco industry related to a dispute of its 2005
payments to the states. The funds were held in a disputed payments account, and as part of ongoing
arbitration related to its previous years’ payments, tobacco manufacturers recently agreed to release
this amount to the states.

Under the MSA, participating tobacco manufacturers make substantial payments to states that
have reached settlements with the industry. They are also bound by a wide array of restrictions on the
advertising, promotion and marketing of cigarettes, including outright bans on targeting youth and
distribution of merchandise advertising a cigarette brand. Studies show that the vast majority of
current adult smokers began smoking before the age of 18, and since the MSA took effect, youth
smoking rates nationally have dropped nationwide.

In 1999, the Delaware Health Act was signed into law. This statute established the Delaware
Health Fund, which receives payments received by the state under the MSA; created the Delaware
Health Fund Advisory Committee to make recommendations for appropriating monies received by the
Delaware Health Fund; and directed how money paid into the fund should be spent. The Delaware
Department of Justice administers the state’s participation in the MSA.

Learn more about the Delaware Health Fund and the Health Fund Advisory Committee by
visiting http://dhss.delaware.gov/dhss/healthfund/about.html.
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The Delaware Department of Justice today presented a $100,000 check to the Nemours Foundation for the Alfred I. DuPont Hospital for Children to provide reduced-cost medications to underserved Delawareans. The charitable donation represents a portion of the Department’s monetary recovery from pharmacy benefits management company Express Scripts following the 2008 settlement of an investigation by the Consumer Protection Unit.

“The Delaware Department of Justice has not only acted to protect Delawareans and enforce our consumer protection laws,” stated Chief Deputy Attorney General Richard S. Gebelein in resenting the check to Lori J. Counts, Managing Director of Development for Nemours and Amy C. Rogers, Associate Administrator of the Alfred I. DuPont Hospital for Children, “I’m pleased that we are also directing the funds we have recovered to serve our state’s residents with unmet healthcare
needs.”

In May 2008, Delaware and 27 states plus the District of Columbia reached an agreement with xpress Scripts following an investigation into its alleged violations of the states’ consumer protection laws. As a result of the investigation, Express Scripts adopted reforms to its business practices, and was required to pay $9.3 million to the participating states and $200,000 to patients who incurred expenses related to certain switches between cholesterol-controlling drugs (read the May 2008
Department of Justice press release announcing the settlement on the Department’s website at http://www.attorneygeneral.delaware.gov/media/releases/2008/affordablemeds.pdf).
Today’s donation by the Delaware Department of Justice will be used by the Alfred I. DuPont Hospital for Children to promote lower drug costs for uninsured and/or underinsured Delaware residents it serves in all three counties through its out-patient programs.
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Today, the Delaware Department of Justice joined 16 states, the
Corporation Counsel for the City of New York, the City Solicitor of Baltimore, and the Pennsylvania
Department of Environmental Protection in sending a letter to Lisa Jackson, the new Administrator of
the Environmental Protection Agency (EPA). The letter urges her to act in response to the 2007 U.S.
Supreme Court ruling in Massachusetts v. EPA, issued under former EPA Administrator, Stephen
Johnson.

“The EPA has determined that greenhouse gas emissions pose significant risks,” said State
Solicitor Lawrence Lewis. “We are urging the new Administration to act quickly to regulate
greenhouse gas emissions.”

Under the federal Clean Air Act, once the EPA determines that greenhouse gases are a danger
to public health or welfare, it must issue an endangerment determination and act to regulate greenhouse
gas emissions. In the Massachusetts case, the Supreme Court declared that the EPA could not refuse
to regulate greenhouse gases based on the agency’s policy preferences. In late 2007, EPA officials
sent a proposed endangerment determination to the White House as an e-mail attachment, but White
House officials did not open the document, and former EPA Administrator Stephen Johnson declined
repeated requests to make the document public.
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The Delaware Department of Justice today announced today that it has reached a
settlement with the U.S. Environmental Protection Agency (EPA) requiring new limits on the
emissions of mercury and other toxic pollutants from cement plants. The EPA’s new rules will address
mercury and other toxic emissions from Portland cement plants nationwide. Portland cement is the
most common type of cement and a basic ingredient of concrete, mortar, stucco and grout. Delaware
joined eight other states in today’s agreement.

“With today’s agreement, the EPA has committed to take appropriate measures to reduce
hazardous pollution that harms the environment and poses a risk to health”, stated State Solicitor
Lawrence Lewis.

In February 2007, a coalition of states including Delaware, Connecticut, Illinois, Maryland,
Massachusetts, Michigan, New Jersey, New York, and Pennsylvania filed a lawsuit against the EPA
for adopting air emission standards for cement plants that did not adequately control mercury and other
hazardous air pollutants. The suit, Portland Cement Association v. EPA, argued that the EPA had not
based emission standards for these plants on state-of-the-art pollution control technology, in violation
of the Clean Air Act.

Today’s settlement requires EPA to propose new standards for mercury and other hazardous air
pollutant emissions from cement plants by March 31, 2009 and to adopt final standards by March 31,
2010 after taking public comment. As required by the Clean Air Act, the Agency must require the
maximum available pollution control technology in setting these standards.

Today’s settlement will go into effect after the EPA publishes it in the Federal Register and
provides an opportunity for notice and comment. Several environmental groups joined the states in
today’s settlement, including the Friends of Hudson, Earthjustice, the Sierra Club, Desert Citizens
Against Pollution, Downwinders At Risk, Huron Environmental Activist League, and Montanans
Against Toxic Burning. Portland Cement Association, an industry group, also signed the settlement.
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Wilmington, DE – Attorney General Beau Biden announced that new laws strengthening
Delaware’s environmental laws have been enacted. Senate Bill 309, drafted by the Department of
Justice and signed into law this week by Governor Ruth Ann Minner, enhances penalties against
illegal air and water pollution and other environmental crimes, broadens the scope of Delaware’s
anti-dumping laws, and increases penalties against all violations committed in Delaware State
Parks.
“Defiling the air we breathe, the water we drink, and the land on which we live are serious
crimes that warrant serious penalties,” stated Attorney General Joseph R. Biden, III. “I’m pleased
that we now have stronger tools to fight and deter environmental crime.”
The changes enhance Delaware’s environmental protection statutes in several key ways,
including:
• Increasing penalties for illegal dumping, some of which have not been increased in 35 years.
• Doubling the minimum penalty for strict liability environmental offenses for air and water
pollution and other environmental violations.
• Giving private landowners the right to seek damages and attorneys’ fees from polluters who
illegally dump on their land.
• Establishing greater penalties for all violations of regulations in Delaware’s state parks,
including dumping and polluting. These include doubling the penalty for first offenses and
setting higher penalties for multiple offenses. These penalties have not increased in 17
years.
• Enhancing law enforcement’s tools to prosecute dumping by allowing citations to be issued
to owners of vehicles that are involved in dumping activity.
• Clarifying that those who indirectly participate in illegal dumping are also violating the law.
Senate Bill 309 was introduced by Senator David McBride. The bill unanimously passed the
Senate on June 24 and the House of Representatives on June 30. It was drafted by the Delaware
Department of Justice with input from the Delaware Department of Natural Resources and
Environmental Control.
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