(Washington, D.C.) - Montana's senior U.S. Senator Max Baucus announced today he has secured bipartisan agreement to cut through red tape holding up the Keystone XL Pipeline while extending the current payroll tax cut for Montana workers for two months.  As Chairman of the Senate's tax writing committee, Baucus brokered a final deal by bringing lawmakers from both parties together to support jobs. 

Without this extension, economists have warned that letting the payroll tax cut expire at the end of this month could cause a drop in GDP of up to 1.5 percent. Baucus vowed to continue working for a longer extension of the payroll tax cut when Congress returns next year. 

"It's time to put Montanans to work on the Keystone pipeline and that's why I pushed my colleagues to include this critical infrastructure project in this package.  We've done enough analysis and worked hard on strict environmental considerations - now it's time to move forward on the jobs we need and the energy security our nation deserves," Baucus said. "This payroll tax cut will make sure Montana workers don't see a dip in their paychecks in January while we continue fighting for an even longer extension.  The timing is critical for Montana families who need some extra money in their pockets so they can spend more at Montana businesses and support more jobs in our state." 

Under Baucus' Bipartisan Plan:

Payroll Tax Cut

• The payroll tax holiday for Montana workers would be extended for two months at the current cut of 2 percentage points, while Congress continues to work on a longer-term extension.
• According to the Treasury Department, the 2 percentage point cut benefitted 600,000 Montana workers in 2011 and pumped $300 million back into the hands of Montana families.
• Without this extension, economists have warned that letting the payroll tax cut expire at the end of this month could cause a drop in GDP of up to 1.5 percent.

Keystone XL

• Secretary of State would be required to issue a permit within 60 days to allow the Keystone XL project to move ahead, unless the President publicly determines that it is not in the national interest.
• The permit for Keystone XL would have to contain strong and specific environmental protections and protect states' rights.

Additional Background:

Baucus has been a strong and consistent support of Keystone and has worked to make sure the Keystone pipeline project is not subject to unncessary red tape.  He has also fought to make sure the environmental and safety concerns along with greater opportunities for public comment remain cornerstones of the process. He has expressed strong disagreement with the Obama Administration for delaying a final decision on the pipeline until 2013 and worked hard as Chairman of the Finance Committee to include this important jobs provision in the payroll tax extension package.

The proposed 1,700 mile Keystone XL pipeline would transport 700,000 barrels of oil per day from Canada and the U.S. Bakken region to U.S. refineries. As global demand for oil surges and Canada increases production, the addition of the Keystone XL pipeline will ensure that Americans benefit from reliable and secure oil from our largest trading partner. The project has undergone three years of State Department review along with two years of comprehensive environmental evaluations.

Contact: Kate Downen 406-224-5056/Kathy Weber 406-329-7980/Jennifer Donohue 202-224-2651

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