Much attention has been paid, rightly, to the federal government's improper role in using subsidies to favor one energy resource over others. America's energy future must be based on a level playing field. But the playing field cannot be level so long as federal regulation erects or reinforces barriers to entry, which prevent a competitive market for competing fuels.
Ensure That Our Transportation Fuel Markets are Competitive
The current system of transportation fuels is essentially closed to newer competition because of (1)
gasoline's near-monopoly in the distribution network for light-duty vehicles, and diesel's near-
monopoly for heavy-duty vehicles; and (2) numerous regulatory barriers to entry.
Accordingly, to create a truly competitive energy market, the federal government must:
Commence expedited review of the transportation fuel distribution network by both the Federal Trade
Commission and Senate Judiciary Committee (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).
Eliminate all regulatory barriers to entry for competing fuels, and create a level playing field that allows
competing fuels full access to the distribution grid.
Ensure open markets for natural gas and other alternative fuels in order to stabilize prices and provide a
predictable investment environment.