SOTU Analysis: Leading the way in energy innovation

In this series of blog posts, Senator Coons’ legislative staff shares their analysis of the President’s State of the Union address with Delawareans.

In his State of the Union Address, President Obama emphasized the importance of scientific research and development, praising innovation and declaring that “we need to invest in the best ideas.” Senator Coons is a passionate believer in the importance of basic and applied science and is a strong supporter of innovative products being developed in Delaware.

President Obama called attention to innovative 3D printing that “has the potential to revolutionize the way we make almost everything.” In Delaware, the revolution has already begun. At the Nemours/Alfred I. duPont Hospital for Children, scientists such as Tariq Rahman and Whitney Sample have used 3D printing to create customizable assistive devices to help children overcome mobility challenges. These cutting edge innovations gave five-year-old Emma Lavelle plastic appendages that allowed her to play and hug her mother for the first time.

Last night, President Obama called for “a level of research and development not seen since the height of the Space Race.” He specified that today, no area holds more promise than investments in American energy. Delaware is once again leading the way, with energy research that is truly paradigm-shifting.

The University of Delaware was named as an Energy Frontier Research Center by the U.S. Department of Energy. An award of more than $17 million dollars will be used to find more efficient ways to convert complex molecules from biomass into chemicals and fuels. UD is also at work fueling innovation in partnership with Advanced Research Projects Agency-Energy (ARPA-E) and the Catalysis Center for Energy Innovation with transformational projects like super-strong magnets and hydrogen-fuel cells.  As a member of the Senate Energy and Natural Resources Committee and a leading champion of ARPA-E, Chris will continue to support these game-changing initiatives.    

During a recent visit to the University of Delaware’s STAR campus, Chris test-drove a car built by a joint project between the UD and NRG Energy. The car allows rechargeable battery-operated vehicles to also serve as a source of power to the electrical grid. With scientists such as UD professor Willett Kempton leading the way, Delaware at the forefront of realizing the President’s vision. 

Senator Coons calls for research on pancreatic cancer

As a strong advocate for science-based research, Senator Coons this week joined a bipartisan group of 56 Senators – more than half the Senate – to urge quick action on legislation to combat pancreatic cancer.  The group came together to sign a letter urging their colleagues to move forward on the Pancreatic Cancer Research & Education Act, which would require the National Institutes of Health to lead a strategic plan to address this disease.

Pancreatic cancer is the fourth leading cause of cancer death in the United States and will strike 43,000 Americans this year, 74 percent of whom will die within a year of diagnosis.

The letter, addressed to the Chairman and Ranking Member of the Health, Education, Labor, and Pensions Committee, stated that pancreatic cancer is “unique biologically and requires focused research. Because pancreatic cancer is one of the most scientifically-complicate cancers, the advances we make in understanding the disease may have spillover effects in understanding treatments and cures for other cancers.”

The proposed pancreatic cancer legislation follows in the footsteps of other legislative actions to eradicate other pernicious diseases, such as Alzheimer’s, breast cancer, autism, diabetes, and HIV/AIDS. The legislation would “provide a critical tool for making progress in this terrible disease,” but the strategic plan would not compel the NIH, Centers for Disease Control (CDC), or National Cancer Institute (NCI) to allocate taxpayer dollars for disease specific research. Rather, funds would be allocated “on a peer-reviewed basis.”

During a Democratic Steering Committee meeting this week, Chris engaged leaders of the biomedical research community, including NIH Director Francis Collins, in a dialogue on biotech research and what Congressional action would best facilitate academic research. The panel of experts, which included two Delawareans, unanimously agreed that greater government funding will spur economic growth. Dr. Collins also pointed out that every dollar of NIH funding yields a return of $2.25 in the first year alone. 

Budget Analysis: Clean energy and innovation

As a member of the Senate Energy and Natural Resources Committee, Senator Coons has been leading the fight for solutions to promote clean, affordable energy technologies. His analysis of President Obama’s budget proposal included a close review of clean energy programs.

The budget request for clean energy and environmental programs is on track with last year’s request, although it includes notable increases for certain energy and advanced manufacturing programs.  The blueprint also highlights the need for Congress to extend clean energy tax incentives, something Chris strongly supports.

Clean energy programs are divided among several agencies, including:

Department of Energy Programs

• Energy efficiency and renewable energy programs receive a request for $2.3 billion, an increase of $527 million from FY12.  Notable increases include biomass R&D, wind (including offshore wind), vehicles, advanced manufacturing, and buildings programs.   
• The request triples funding for groundbreaking research in the transportation sector, which helps reduce our dependence on foreign oil.  The focus will be on sustainable biofuels, vehicle electrification, and manufacturing advancements.     
• The budget requests $6 billion for the HOME STAR program, an initiative at the Department of Energy designed to create jobs in existing industries by providing short-term incentives for energy efficiency improvements in residential buildings.

U.S. Department of Agriculture Energy Programs

• The budget proposes $6.1 billion in loans to rural electric cooperatives and utilities for clean-energy generation, transmission, and distribution sites in rural communities.
• The budget also proposes $19 million for Rural Energy for America Program (REAP) and over $200 million for the development of advanced biofuels.

Department of the Interior Energy Programs

• The budget proposal includes $86 million for permitting new renewable energy projects on federal lands and waters, with the goal of permitting 11,000 megawatts on DOI-managed areas by the end of 2013.

Energy Tax Extenders 

• The budget request supports the extension of the 1603 Treasury grant program and the Production Tax Credit (PTC) for wind power.
• The administration also proposes spending $5 million to extend the 48c manufacturing tax credit which expired in December 2010.
• The budget includes tax credits mirrored Senator Coons’ Job Creation Through Innovation Act

• The budget seeks to eliminate $4 million in fossil fuel subsidies, mostly from oil and gas companies.

Senator Coons floats idea to help innovative small businesses

Senator Coons went to the Senate floor this afternoon to lay out an idea he's been working on to help entrepreneurs and the leaders of young businesses to grow their companies by investing in research and development.

The Research and Development Tax Credit has helped incentivize innovation at established businesses for 30 years, which is why Chris is such an ardent supporter of the credit and has twice introduced legislation to make it permanent. The problem is, young companies that aren't yet profitable can't benefit from the tax credit.

So how can the federal government help those businesses grow and create jobs?

Chris' idea would create a tradable version of the R&D Tax Credit. Innovative young companies looking to expand their research and development efforts would be eligible for this "innovation credit," which they would then be able to sell to a bigger, more established company. The bigger company gets the tax credit, while the young company gets a cash infusion.

It's win-win.

In his remarks Monday afternoon, Chris talked about two innovative Delaware companies that might be able to utilize such a tradable credit like this — Elcriton in New Castle and Evozym in Newark. You can watch the speech above or click here to read the full transcript.

The Senator is eager for feedback on the idea, and invited other legislators and business leaders to weigh-in and help shape the idea before he introduces it as legislation. You can share your own opinion on the idea by clicking here.

SOTU Analysis: Investing in research and development

After working for eight years at a materials-based science company, Senator Coons was especially interested in plans for investing in scientific research and development laid out by President Obama in his State of the Union address this week.

President Obama didn’t disappoint, saying “Innovation also demands basic research.  Today, the discoveries taking place in our federally-financed labs and universities could lead to new treatments that kill cancer cells but leave healthy ones untouched.” Delaware has long been a leader in basic research and innovation in this country. Basic research in Delaware is currently investigating disease pathways, developing stronger magnets, supporting the purchase of a specialized nuclear magnetic resonance spectrometer and building a massive neutrino telescope at the South Pole. Could any of these investments result in tomorrow’s game-changing technologies? We have no real way of knowing, which is why Chris believes we must continue to invest in a diversity of projects.

Chris supports these investments not only because they can improve our quality of life, but because they strengthen our economy by creating jobs across Delaware. In his first piece of legislation, the Job Creation Through Innovation Act, he called for increasing and making permanent the tax credit companies get for research and development, an idea strongly supported by a News Journal editorial. The permanence of the tax credit is especially important, since many projects have multi-year planning horizons and companies need the certainty for long-term planning in order to invest and create jobs in Delaware.

The formula for America’s economic success has long been the unstoppable combination of an innovative citizenry and investment in cutting-edge research. President Obama called on Congress directly to protect that vital investment, even in tough economic times. He urged “don’t gut these investments in our budget.  Don’t let other countries win the race for the future.  Support the same kind of research and innovation that led to the computer chip and the Internet; to new American jobs and new American industries.”

Click here to read more about Chris’ work supporting Delaware businesses.

DSU a big part of NASA's new mission to Mars

Senator Coons congratulated Delaware State University for their research and development of lasers to be used on NASA's Curiosity Rover mission to Mars. Scheduled to launch November 25, the rover will contain a ChemCam instrument that was partially developed at DSU and uses lasers and spectroscopy to analyze the contents of rocks on the surface of Mars.

Dr. Noureddine Melikechi — who is the founder of the DSU Optics Research Program where the research took place — worked with NASA in connection with the upcoming launch. Alissa Mezzacappa, a DSU Ph.D candidate in optics and a graduate research assistant, assisted Dr. Melikechi. The two of them are in Cape Canaveral to witness the launch in person.  

An ardent supporter of science, technology, engineering and math education, and a lifelong fan of NASA and the space sciences, Chris is extremely proud of DSU’s involvement in the project. Historically, NASA’s missions have cultivated American’s hope and wonderment about our vast universe and has inspired many young people to pursue a career in the sciences.

The involvement of DSU in the Mars mission is the latest accomplishment of the University’s prolific Optics Program. The Optics Program received a $5 million grant to work on a $2.5 billion space project with a large team of scientists from throughout the United States and France.

With a focused vision, Dr. Melikechi methodically worked to maximize every new opportunity and each research success. Founded as a one-person project in 1995, Dr. Melikechi expanded DSU’s Optics Research Program to include 12 professors, 18 graduate students and two post-doctoral researchers. It will soon move into a new, 65,000-square-foot building, supported by $10 million in state funding and millions more in private bonds DSU plans to raise.

Click here to learn more about the “DSU goes to Mars” mission. 

Click here to learn more about Chris’ work to improve education. 

Video: Senator Coons, Rubio roll out bipartisan jobs bill

Senator Chris Coons (D-Del.) and Senator Marco Rubio (R-Fla.) hosted at a press conference on Tuesday to unveil their bipartisan bill to support job creation — the American Growth, Recovery, Empowerment and Entrepreneurship (AGREE) Act.  The AGREE Act stems from areas of common agreement between the President’s jobs plan, recommendations from the President’s Council on Jobs and Competitiveness, and plans put forward by both parties in Congress.

If enacted, the AGREE Act would do the following:

• Extend 100 percent bonus depreciation through 2012 for the full cost of qualified investments such as equipment and property.
• Extend Section 179 expensing levels for small businesses through 2012.
• Eliminate taxes on certain small business stock through 2012.
• Extend the Research & Development tax credit until 2013, increase the Alternative Simplified Credit (ASC) from 14 percent to 20 percent, and makes the ASC permanent.
• Provide veterans with a tax credit equal to 25% of the fee associated with starting a franchise up to $100,000.
• Provide a five-year exemption from Section 404(b) of Sarbanes-Oxley for the first five years of a company going public, or for those below $250 million in total gross revenue (whichever comes first).
• Eliminate the per-country numerical limitation for employment-based immigrant visas and adjusts the limitations on family based visa petitions from 7% per country to 15%.
• Protect intellectual property by clarifying the Trade Secrets Act, and making it explicitly clear that it is not a crime for federal officials, in the performance of their duties, to share information about suspected infringing products with the right holder of a trademarked good.

Delawareans are encouraged to click here to review the bill and share their opinions.

Click here to download a more thorough summary of the bill.  

Advancing clean energy through solar power

While Capitol Hill continues to be the center of continuing debate regarding the way forward for our economy, scores of Americans in Delaware and across the country are taking decisive measures to advance clean energy solutions through solar power.

In order to reengage and revitalize our workforce, and facilitate a long-term sustainable energy industry, the United States must invest in clean alternative energy sources. Over the last year, solar power has emerged as one the fastest growing industries in America.  According to the Solar Foundation, a nonprofit organization that advocates on behalf of global energy needs through greater use of solar energy technologies, more than 100,000 jobs have been created within the solar industry. Between August 2010 and August 2011, an estimated 6,735 new solar jobs were created, accounting for an industry growth of 6.8 percent. 

Delaware has taken an active role in bolstering the growing solar industry sector. SolarDock, a Delaware-based solar company, has expanded 400 percent since 2007 and boasts clients that include Fortune 500 businesses, manufacturing and warehouse facilities, schools and universities, retail centers and medical facilities.

The rise of the solar industry has translated into lower unit costs and greater accessibility for consumers.  According to the Lawrence Berkeley National Lab’s “Tracking the Sun IV” report the average cost of installing residential and commercial solar photovoltaic systems in the U.S. dropped a record 17 percent in 2010, and it continued to drop an additional 11 percent through the first-half of 2011.

Delaware is also on the leading edge of solar technology research.  The University of Delaware’s Solar Energy Program continues to build upon groundbreaking research in the efficiency of solar cells.  In September, UD’s solar program was successful in winning $7.8 million in research funding through a recent Department of Energy’s solar Sunshot Awards announcement.

Just as Delaware has remained on the forefront regarding clean energy, Chris has remained a staunch advocate of investing in innovative, efficient, and ecologically friendly pathways forward in energy development.  In his role as a member of the Senate Committee on Energy and Natural Resources, he is committed to finding practical ways to incentivize investments in clean energy projects and boost commercialization of alternative energy industries. 

To learn more about Chris’ energy priorities and his work on the Energy and Natural Resources Committee, click here.

Bipartisan agriculture research bill will drive American agricultural innovation

WASHINGTON – U.S. Senator Chris Coons joined eight of his colleagues in introducing the bipartisan   Charitable Agricultural Research Act, which will spur new agricultural research, leveraging private dollars to create charitable partnerships between universities and private entities to strengthen and improve American agriculture. The bill amends the tax code to allow for the creation of a new type of charitable, tax-exempt organization, agricultural research organizations, similar to medical research organizations which have been in existence since the 1950s

“In order for our rural communities to remain vibrant and sustainable, we must invest in agricultural research,” Chris said. “Partnering university research with private sector innovation allows both our institutions and industries to work collaboratively to grow our economy. I am pleased that I could join my colleagues from both sides of the aisle to fight for the future of one of America’s most important economic sectors, our farming industry.”

Over the last 60 years, agricultural research has expanded food production significantly. According to the USDA Economic Research Service, farm productivity has risen 158% since 1948; this increase can be largely attributed to research, through the implementation of improved farming practices and the use of new agricultural technologies. Today, the United States produces $312 billion in agricultural products and exports $108 billion annually.

However, agricultural scientists warn that failing to invest in agricultural research could spell disaster for the future of American food security and safety. Agricultural research funding has become stagnant and has fallen far behind other federal agencies since the 1970s. The Charitable Agricultural Research Act seeks to address these challenges by creating agricultural research organizations (AROs) that would work in conjunction with agricultural and land-grant colleges and universities to conduct research in the field of agriculture. To accomplish this, a new section allowing for donations to agricultural research would be added immediately below the portion of the current tax code that provides for charitable contributions to medical research organizations.

Senators Debbie Stabenow (D-MI) and John Thune (R-SD) are the lead sponsors of the bill. Senator Coons, a member of the Senate Committee on Energy and Natural Resources, is a cosponsor.

To learn more about Senator Coons’ work to protect America’s agriculture, click here.

Newly formed bipartisan Senate Caucus addresses important issues to marine and coastal ecosystems

WASHINGTON - Senator Coons joined 17 other Senators on Tuesday to form the Senate Oceans Caucus. The goal of this bipartisan caucus is to address national issues of importance to marine and coastal ecosystems and industries--a source of jobs for millions of Americans, and an integral part of Delaware’s economy. Given the national focus on getting Americans back to work, we must preserve the vitality of our oceans and the economies they support. 

Our nation’s oceans contribute over $230 billion to our national economy, and so threats to oceans and coastal economies are not just local issues. Chris believes that the Senate Oceans Caucus will be an important bipartisan forum for Senators to come together to discuss issues of importance to our oceans, estuaries, and coasts, and the industries and communities that depend on them. Through the Senate Oceans Caucus, Senator Coons is committed to working with his colleagues to increase Delaware’s economic competitiveness and preserve our critical natural resources. 

Delaware’s coast presents a unique opportunity to develop new energy sources that will make the U.S. more energy independent and reduce our reliance on fossil fuels. NRG Bluewater Wind is in the process of developing one of the first offshore wind farms in the U.S. right off Delaware’s shores. According to the University of Delaware, wind off the Atlantic Coast has the potential to generate enough power to replace about 300 coal plants and to support the energy needs of nine states from Massachusetts to North Carolina. The Bluewater Wind and future wind projects will bring clean, reliable power to Delawareans and will help build a new manufacturing sector that will bring jobs and economic growth to families throughout Delaware and the region. As a member of the Senate Energy and Natural Resources Committee, Chris is exploring ways the Senate can help to develop the energy technologies of tomorrow, including offshore wind.

Delaware’s coastal waters, estuaries, and rivers are home to a diverse range of aquatic species including bass, bluefish, flounder, trout, oysters, clams, crabs, and more. These species are vital to not only the thousands of anglers who come to Delaware for recreational fishing each year, but also Delaware’s seafood industry. According to the National Oceanic Atmospheric Administration (NOAA), in 2007 Delaware’s commercial seafood industry provided over 1,500 jobs and roughly $74 million in sales. Furthermore, recreational fishing in Delaware is a nearly $100 million dollar business according to the 2006 National Survey of Fishing, Hunting, and Wildfire-Associated Recreation.

Chris believes that research, particularly in the areas of science, technology, engineering and mathematics, is integral to improving America’s global competitiveness. The University of Delaware’s Sea Grant Program as well as the College of Earth, Ocean, and Environment are conducting critical, cutting edge research on estuarine, coastal, and ocean resources. These efforts serve to bolster Delaware’s educational resources and get young people engaged in the industries of tomorrow.  Moreover, the work being done by these institutions will help preserve the strength of Delaware’s key coastal resources.