Dear Richard:

Thank you for writing to me with your concerns regarding America's national energy policy. I appreciate hearing from you on this important issue.

We must invest in the development of clean, renewable energy sources. As Chair man of the Senate Finance Committee, I will continue to promote tax incentives for energy research and development of resources such as wind, biofuels, clean coal and energy efficient technologies. There are many promising possibilities for Montana in these sectors of the energy industry. Abundant resources will help our state play an important role in a cleaner energy future.

In 2005, as part of the energy bill, I authored language for Clean Renewable Energy Bonds (CREBS) as part of a package of energy tax incentives. That legislation secured $72 million for 34 new wind energy projects in Montana. Thos e projects, in every corner of the state, will help provide good paying-jobs and local power to Montana's homes, Main Streets and businesses.

On March 8, 2007, I introduced the On-Farm Energy Production Act. This proposal is the first of its kind. It would encourage installing renewable resource technology on Montana's farms and ranches by paying up to fifty percent of the overall cost , up to $50,000, of installing windmills and other renewable energy generators on their property.

This bill will help farmers and ranchers cut their energy costs and contribute to American energy independence. Wind energy in particular is a booming industry for Montana. According to the Department of Energy, Montana wind energy production has increased 73-fold since 2004. It is important that we continue to take advantage of this valuable resource.

Wind energy is only the beginning of Montana's potential for new renewable energy sources. Biofuels are another means by which Montana can contribute to the national energy portfolio. Montana has the potential to use switchgrass, camolina, agricultural byproducts and more in the production of cellulosic ethanol and biodiesel as a clean, renewable and domestic fuel product.

Montana should also play a role in responsibly developing fossil fuel resources. Our coal reserves are some of the largest in the world. Deploying tax incentives for clean coal technologies and carbon sequestration is important to the development of this valuable resource. The future is bright for Montana as a leader worldwide in clean coal technology.

It is important to consider every way of increasing American energy independence. Montana is the Treasure State. We are fortunate to have a wealth of energy resources we can develop to help secure our nation's energy independence.

Rest assured , I will keep your thoughts in mind as future energy legislation comes before the Senate. Thank s again for writing in with your concerns on this topic.

With best personal regards, I am

Senator Max Baucus


http://baucus.senate.gov