CHAIRMAN BAUCUS SEEKS ANSWERS TO ENERGY WOES

Senator Wants Modern Day 'Manhattan Project' To Address Energy, Climate Change

February 27, 2007

(Washington D.C.) - Montana Senator Max Baucus, chairman of the powerful U.S. Senate Finance Committee, today said America must do more to break its reliance on foreign sources of energy.

"America is too dependent on unstable foreign energy sources," Baucus said today during a hearing of his committee. "America has a big energy problem. But America finds solutions to big problems."

Baucus today introduced a bill in the Senate to establish a cutting-edge new research agency that would develop solutions to America's energy problems. Baucus likened the new agency to the WWII-era Manhattan Project, which used innovative technology and research to develop the world's first nuclear bomb.

Baucus' bill would set aside more than $5 billion over the next five years to create an Advanced Research Projects Agency — Energy, or ARPA-E.

The new agency would be modeled on DARPA — the Defense Advanced Research Projects Agency, which, among other things, developed the Internet and stealth technology for aircraft.

"We can do the same with [energy]," Baucus said. "We should start with another Manhattan Project — for energy."

Baucus said in addition to advancing research, other answers to the energy problem lie in alternative energy, renewable energy, improved efficiency, and smarter use of conventional sources, "with strong consideration for climate change."

Baucus said America should continue to advance the use of biofuels, including cellulosic ethanol made from grain stubble. He also noted that Montana farmers are eager to produce oil-seed crops such as Camelina. He also said more emphasis should be given to energy conversation and efficiency efforts. "We can build smarter buildings. We can turn on more efficient light bulbs. We can produce and use electricity more efficiently. We can even do things as simple as turning off our computers at night," Baucus said, noting that turning off American computer monitors alone could save more than $1 billion a year.

Baucus said Montana has about eight percent of the world's coal reserves and that America should "make use of this abundant resource. And we should do so responsibly."

"Sequestering the carbon emitted from coal-fired plants is the right thing to do," Baucus said. Baucus invited Montana Governor Brian Schweitzer to testify before the hearing.

"Brian has made energy policy the cornerstone of his administration," Baucus said. "He's worked hard on renewable sources, ethanol, biodiesel, and the clean use of Montana's vast coal reserves."

Baucus has worked to spur alternative energy sources in Montana and across the country through his work in the Finance Committee, which has jurisdiction over tax incentives. In 2005, Baucus wrote the Clean Renewable Energy Bonds (CREBs) program, to provide tax-free financing for wind energy projects. Montana will be provided up to $72 million for 34 new wind energy projects planned mostly by small cities and counties in northeastern and southeastern Montana. In December, Baucus successfully pushed to extend the CREBs program and increased its funding.

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