In the fall of 1969, Shell Oil Company was considering building a refinery off of the coast of Delaware. Due to the enormous outcry by the public, then Governor Russell Peterson established a task force on Marine and Coastal Affairs to determine the future of Delaware's coastline. In the meantime, he also signed an Executive Order prohibiting all new construction in the Coastal Zone, including the Shell Station until the newly created Task Force could reach a decision. In January 1971, Governor Peterson announced he would pursue the passage of the Coastal Zone Act prohibiting heavy industry in the Coastal Zone. Delaware's Coastal Zone extends 2 miles inland and is 150 miles long. On May 12, 1971, H.B. 300 "Delaware's Coastal Zone Act (CZA)" was introduced into the House of Representatives with 20 co-sponsors including then State Representative Michael Castle. On June 21, 1971 before the vote on H.B. 300 could take place, lobbyists from oil industries proposed an amendment negating the prohibition on heavy industry. At 9:30 p.m., the House voted against the amendment by a margin of 20-19. At 10:45 p.m., H.B. 300 passed the House. On June 22, 1971 the Senate began to "work the bill." Another amendment was proposed and voted down. Around 11 p.m. , the Senate passed the bill.
On June 27, 1971, Governor Peterson signed into law the historic Coastal Zone Act. For the first time, a state had gone against international oil companies and won. However, it cost Governor Peterson his bid for re-election. Only three years later, the first threat to the Coastal Zone appeared. In 1974, during the nation's energy crisis, Governor Sherman Tribbitt introduced and supported a bill repealing the Coastal Zone Act. After several public hearings, the bill "died" in committee. Attempts to repeal the CZA would continue over the next decade, each failing to pass in committee.
In 1984, a new threat emerged, a legal challenge to the Act. Norfolk Southern, a railroad and van line company, claimed that the Coastal Zone Act violated the commerce clause in the U.S. Constitution. Norfolk Southern planned to use the mouth of the Delaware Bay to transfer coal from smaller ships to super-colliers for overseas shipments. They requested and were granted a permit from the Department of Natural Resources and Environmental Control (DNREC) that was later overturned by the Coastal Zone Industrial Control Board-a Board whose sole purpose is to protect the integrity of the CZA. Norfolk Southern appealed to the federal circuit court who found in Delaware's favor. They appealed again to the U.S. Court of Appeals, who also found for Delaware. Finally, in 1987, Norfolk Southern announced they would not appeal to the U.S. Supreme Court.
In 1990, DNREC Secretary Toby Clark, working with a committee of stakeholders, began to draft regulations which would serve as guidelines in deciding how the CZA applies, when a permit may be granted and what administrative procedures need to be followed. In 1993, the regulations were approved by the Coastal Zone Industrial Board. However, the regulations were challenged by The Delaware Chemical Industry and were declared null and void. It wouldn't be until November of 1998 when the regulations were finally legally binding-27 years after the passage of the CZA.
The Coastal Zone Act is continually challenged.
