Thank you for contacting my office to express your support for green jobs and renewable energy. I appreciate hearing from you and I value your input on this important matter.
Our country currently generates 70 percent of its electricity from two fossil fuels: coal and natural gas. Our heavy reliance on just these energy sources does not foster a stable market for electricity in our country. On the other hand, only two percent of our electricity is generated from renewable energy. Increasing the diversity of our electricity portfolio through wider use of renewables offers us the opportunity to generate more energy from affordable, clean and abundant sources. One of the most important steps our nation can take in this regard is to encourage investments in conservation, efficiency, and renewable energy production. For years I have supported greater research and development and use of renewables, such as solar, geothermal, biomass and offshore wind.
In order to address higher energy prices we need to diversify our nation's energy portfolio, with the priority being on clean energy sources that can be produced right here in the U.S. As you may know, I recently joined my colleagues in passing H.R. 1424, the Emergency Economic Stabilization Act, which included an extension of many important renewable energy and energy efficiency tax credits. President Bush signed this measure into law on October 3, 2008. Extending the tax credits was necessary to encourage developers, homeowners and investors to pursue solar, wind, biomass, and energy efficiency technology. The bill extended tax incentives for energy-efficiency projects in commercial buildings, production of renewable electricity, and investments in solar energy and fuel cells.
Of particular interest to those who face rising electricity bills, the legislation provides incentives for energy efficient oil furnaces, insulation, windows, and doors. Additionally, those who build energy efficient new homes will be eligible for a tax credit of up to $2,000. The legislation also includes a one-year extension of the federal production tax credit for wind and geothermal power, a two-year extension of residential solar tax credits, and an eight-year extension to the investment tax credit for commercial solar projects. Finally, to help meet our current energy needs, the bill provides $2.5 billion in new tax credits to create advanced coal electricity projects and certain coal gasification projects that demonstrate the greatest potential for carbon capture and sequestration technology.
Renewable energy tax credits will have tangible impacts in Delaware. In 2005, the State legislature passed a Renewable Portfolio Standard, requiring that 10% of that state's power come from renewable sources by 2018. This past summer, Delmarva Power and Bluewater Wind reached an agreement for an offshore wind proposal. Under the deal, Delmarva will purchase up to 200 megawatts of electricity from the wind farm. Construction is slated to begin in two to three years, with wind-power energy delivery around 2012.
In closing, I strongly agree with you that America's current energy policy is out of step with today's energy needs, and we urgently need a long-term vision for our country's energy future. I am very pleased that we were able to enact critical renewable energy and energy conservation tax credits before adjourning for the year. While comprehensive energy reform was not voted on this year, I look forward to resuming the debate early next year under a new Congress and Administration. I also agree with you that we need to emphasize the job creation element of diversifying our energy portfolio. I will continue to support "green collar" jobs, which many experts see as the future for U.S. manufacturing. Promoting manufacturing in energy technologies such as solar panels, wind turbines, fuel cells, and advanced energy infrastructure will pay triple dividends: it will stimulate our economy, create jobs, and save us money on energy costs. Moreover, we can begin exporting advanced energy products across the world. The U.S. has long been a leader in the development of these technologies - we need to become a leader in the production and sale of these technologies.
Let me assure you that I will continue to advocate what's in the best interest of Delawareans, particularly those who are struggling to pay the bills. Twenty-five years from now, our nation could be celebrating its energy independence, rather than falling victim to higher energy prices. Again, thank you for sharing your thoughts with me and my staff. Please do not hesitate to contact us in the future about other matters of importance to you.
