Southern Montana Electric (SME) is seeking funding from the U.S. Department of Energy to make its proposed Highwood coal-fired power plant a carbon-sequestration demonstration facility. This funding would allow SME to test emerging technologies for capturing and storing CO2. What should make this site appealing to the DOE is that a proposed Air Force coal-to-liquids facility is in close proximity. This would allow the Air Force's coal-to-liquid plant to ship its carbon to the SME facility where it could be compressed and then either stored underground or sold to companies for enhanced oil recovery. The first step, however, for SME is receiving approval on a loan from the U.S. Department of Agriculture Rural Utilities Service to fund 85% of the $720 million proposed Highwood facility. The timeline for that answer is early 2008.