In this invited testimony to the U.S. Senate Committee on Energy and Natural Resources (SD-366, 0930-1130), Amory Lovins explained how innovation in business strategies, technologies, and policies can lead to energy independence, energy security, and prosperity. Lovins argued that the surest path to an energy policy that enhances security and prosperity is free-market economics: letting all ways to save or produce energy compete fairly, at honest prices, no matter which kind they are, what technology they use, where they are, how big they are, or who owns them. That would make the energy security, oil, climate, and most proliferation problems fade away, and would make our economy and democracy far stronger.