Page 119 - 4923

a technology refined over 60 years, and the industry must continue to demonstrate to the American people it is a
safe and sustainable practice. As president, I will break down barriers to the continued, safe use of fracking,
which could increase America's production of natural gas by 25 percent - an outcome the American people
deserve. Coal, while viewed with hostility by some, is one of America’s most abundant energy resources and the
mainstay of many communities. It generates the majority of America's power, and the expansion of an emerging
technology, coal-to-liquid fuel, will allow us to take full advantage of our coal reserves, which could supply us
for 300 years. Today coal is under siege from government regulations and litigation. There are even efforts to
halt the export of our coal, which would destroy American jobs. This summer, in fact, we will likely see
blackouts as a result of the administration’s assault on coal, which will take 8% of U.S. generating capacity
offline. In a time of economic uncertainty, subjecting American businesses to even more volatile energy
prices indicates a grave lack of judgment, and a wrong that my administration will make right. However, we
cannot simply drill our way to energy security; we also need to use the power of the marketplace. This means
breaking oil's monopoly as a transportation fuel, and creating a truly level playing field for competing fuels. So
number two, we must break oil's monopoly. America's prosperity has always flowed from competition, and I
believe it's time to let creative destruction loose in our energy sector. Energy security, as Winston Churchill
said, "lies in variety and variety alone." Yet the current system of transportation fuels is essentially closed to
competition because of gasoline's de facto monopoly for light-duty vehicles and diesel's near-monopoly for
heavy-duty vehicles. The concentration of distribution ownership is similar to the broadcast network domination
in the early 1970s, which triggered market-opening FCC rules and an antitrust consent decree. Accordingly, the
Federal Trade Commission and Senate Judiciary Committee must commence an expedited review of the fuel
distribution network. Breaking oil’s monopoly will also require the repeal of regulations that prevent a truly
open and fair market. America has more natural gas than Saudi Arabia has oil. Yet on August 9th, the Obama
Administration issued fuel efficiency rules that effectively bar heavy- duty vehicles – which consume 20% of
our oil imports – from converting to natural gas. Amazingly, they did this even after conceding that more
alternative-fueled vehicles would increase national security by reducing dependence on foreign oil. The EPA has
also imposed costly rules with respect to converting cars to natural gas, which is cheap, clean and available for
refueling in nearly half of American homes. It has effectively barred states, which have the primary
responsibility for meeting air quality standards, from switching fleets to electric cars and clean fuels. Rolling
back these and other similar rules will be an immediate priority of my administration. And finally, number three,
we must build a new energy future. As we take steps to meet current energy demands, we must also build an
environment that will promote innovation and help foster the next generation of energy technologies. We must
reduce barriers and increase investment in a modern “smart grid”. Such a system will lead to improved
efficiency and resilience, and will be sorely needed if the next generation, for example, chooses to charge
electric vehicles in their garages. Development of a “smart grid” should be done in tandem with support for
innovative state-based solutions. California leads the nation in geothermal. The Northwest has world-class
hydropower facilities. 15 percent of Iowa’s energy comes from wind. When I was governor of Utah, we made
great strides in natural gas. We designated a natural gas corridor through our state, and partnered with the
private sector to build a network of fueling stations. I even drove a natural gas car. States are laboratories of
innovation, yet federal rules handcuff them with red tape. Washington needs to give states more flexibility to
develop unique energy solutions. To assure our long-term competitiveness, America must also prioritize
investment in basic research that will lead to the energy technologies of tomorrow. The IEA predicts that by
2035, the global energy economy will be a $38 trillion economy. Which nation will lead that energy economy?
Which nation’s innovators will develop the technologies that transform our energy future, and then sell those
technologies to the world? That nation must be America. My administration will remove regulatory barriers that
are slowing development of the next generation of nuclear technology, including small modular reactors – thus
making America competitive in a sector we once pioneered. We will also reaffirm our support for non-
118