Being back in Boston tonight truly warms my heart.  Because even though I lived here for many years – coming for graduate school and then deciding to stick around for 40 years – I was actually born in the Midwest.  So, to finally be recognized as a true “New Englander” is quite a personal honor.  And that went double when I found out that the Red Sox and the Patriots are previous recipients of this award!

As I thought about what this event represents, I asked myself: What is it about New England?  What has made this region such a hotbed of ingenuity and innovation, of not just success in the corporate realm, but of organizational excellence in the academic and civic sectors as well?  And, perhaps more importantly, what can we do to keep it that way for years to come?

I think we all would agree that there are a few key factors that underpin New England’s success.

The first is the importance of – and indeed, the prevalence of – the scientific establishment here.  As Jim mentioned, I was trained as a chemical engineer at MIT, and, a few years later, I had the good fortune of serving as the President of Fidelity and then later, as the CEO of Cabot Corporation.  Now, where else but in Massachusetts could a chemical engineer end up running a financial services firm?

My point is this, I guess: the people and businesses of New England recognize that their success is inextricably linked to the innovation economy.  It is not just that New England is home to some of the best universities and research hospitals in the world, which produce some of America’s brightest young scientists and entrepreneurs, who in turn invent, cure, innovate and grow the economy.  It is that the regional economy has taken on the ethos of the innovator.  New Englanders understand that in order to maintain our economic preeminence in an increasingly competitive world, we simply must maintain our scientific and technological superiority.  And also, that doing so requires a sustained investment and a supportive policy environment.

I am proud to share these values.  And I am proud to serve a President who shares them as well.  Earlier this year, President Bush announced the American Competitiveness Initiative, which advocates a major increase in federal funding for basic science research, particularly in the physical sciences, along with new programs to improve math and technical education.  The President understands that investments in basic research not only support the development of the technologies that will improve our health, our security, and our economic productivity but as importantly, they fund the training of scientists and engineers who will do that work.

And this brings me to my second point: New Englanders know that progress depends not only on innovation, but also on strategic collaboration.  The challenges we face today are too complex and too important to be solved by any one person or any one sector.  Governments – at all levels – must partner with private industry.  Universities, non-profits, civic and religious organizations all have vital roles to play.  I believe that this region’s prosperity is directly related to its ability to come together to solve big problems.

And, in so doing, New England must pursue public policies that encourage its great culture of innovation and collaboration.  Nowhere is this more true than in the energy arena.  While this region possesses many gifts, it is certainly not blessed with an indigenous energy supply.  Nor, at the present moment, does it have a particularly diverse electricity supply – with about 40% of all installed generation coming from natural-gas-fired plants.

New Englanders must continue to recognize the strong link between robust economic growth and a secure, reliable, diverse and affordable energy supply.  This is, of course, true for the entire country, but is particularly important for a region like New England with its myriad high-tech, energy-dependent industries.  And it is equally important for this region’s families, who confront high energy prices and cold winters, and who demonstrate an admirably strong commitment to conservation and environmentally sustainable energy solutions.  That is a commitment that I share, as does President Bush.

The bottom line is that we must diversify the region’s energy supply in a cost-effective and environmentally responsible manner.  And, this means that New England cannot afford to slam the door on any options, including: new power plants and transmission lines, which are badly needed; updates to older plants; and new infrastructure for supply of fuel sources, such as gas pipelines and LNG terminals, as well as for alternative and renewable energy sources.

For the sake of this region’s economy and its people, all options should be on the table.  And, while individual projects are best developed and pursued at the local level, I can assure you that the Department of Energy stands ready to assist in any way we can.  Among other things, President Bush has put forward an Advanced Energy Initiative, which proposes to significantly increase our national investment in alternative fuel and clean energy technologies.  This initiative will enable advances in areas like renewable energy, biofuels, hydrogen, clean coal, nuclear, and other advanced energy technologies.

And I expect that New England will be poised to capitalize on these advances.  In fact, let me mention one very concrete way that New England could demonstrate its leadership – and showcase its culture of collaboration and scientific excellence, in August, I announced a $250 million Federal-funding opportunity for the establishment of two new Bioenergy Research Centers.  Universities, national laboratories, nonprofit organizations and private firms – as well as consortia or partnerships – are all eligible to compete for an award to establish and operate a Center.  The Research Centers will conduct cutting-edge systems biology research on microbes and plants, with the goal of harnessing nature’s own powerful mechanisms for producing energy from sunlight.  The emphasis here is on high-risk, high-return approaches to developing energy-efficient and cost-effective methods for producing alternative fuels from biomass – including cellulosic ethanol, biodiesel, biofuels for aviation, hydrogen, and methane.  Applications are due by February 2007, and more info is available at the Department of Energy web site.

Whether it is through this type of program or others, this region must band together and must deal with its significant challenges around energy production, diversification and transmission – now.  And working together, we will.  We are New Englanders, after all.

Again, I thank you very much for this honor and for the opportunity to be with you all this evening.  Thank you.