H.Amdt. 1172House110th Congress (2007-2009)
Pursuant to the provisions of H.Res. 1449, the Amendment in the Nature of a Substitute printed in House Report 110-859 is adopted.
Submitted September 18, 2008
Description
Amendment offered in the nature of a substitute.
Text
Offered
This amendment's own text couldn't be picked out of its Congressional Record passage, so the passage is shown in full.
COMMODITY MARKETS TRANSPARENCY AND ACCOUNTABILITY ACT OF 2008
Mr. PETERSON of Minnesota. Mr. Speaker, pursuant to House Resolution
1449, I call up the bill (H.R. 6604) to amend the Commodity Exchange
Act to bring greater transparency and accountability to commodity
markets, and for other purposes, and ask for its immediate
consideration.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6604
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Commodity Markets
Transparency and Accountability Act of 2008''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of energy commodity.
Sec. 4. Speculative limits and transparency of off-shore trading.
Sec. 5. Disaggregation of index funds and other data in energy and
agriculture markets.
[[Page H8414]]
Sec. 6. Detailed reporting from index traders and swap dealers.
Sec. 7. Transparency and recordkeeping authorities.
Sec. 8. Trading limits to prevent excessive speculation.
Sec. 9. Modifications to core principles applicable to position limits
for contracts in agricultural and energy commodities.
Sec. 10. CFTC Administration.
Sec. 11. Review of prior actions.
Sec. 12. Review of over-the-counter markets.
Sec. 13. Studies; reports.
Sec. 14. Over-the-counter authority.
Sec. 15. Expedited process.
SEC. 3. DEFINITION OF ENERGY COMMODITY.
(a) Definition of Energy Commodity.--Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) is amended--
(1) by redesignating paragraphs (13) through (34) as
paragraphs (14) through (35), respectively; and
(2) by inserting after paragraph (12) the following:
``(13) Energy commodity.--The term `energy commodity'
means--
``(A) coal;
``(B) crude oil, gasoline, diesel fuel, jet fuel, heating
oil, and propane;
``(C) electricity;
``(D) natural gas; and
``(E) any other substance that is used as a source of
energy, as the Commission, in its discretion, deems
appropriate.''.
(b) Conforming Amendments.--
(1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
(A) in subitem (AA), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''; and
(B) in subitem (BB), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''.
(2) Section 13106(b)(1) of the Food, Conservation, and
Energy Act of 2008 is amended by striking ``section 1a(32)''
and inserting ``section 1a''.
(3) Section 402 of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27) is amended--
(A) in subsection (a)(7), by striking ``section 1a(20)''
and inserting ``section 1a''; and
(B) in subsection (d)--
(i) in paragraph (1)(B), by striking ``section 1a(33)'' and
inserting ``section 1a''; and
(ii) in paragraph (2)(D), by striking ``section 1a(13)''
and inserting ``section 1a''.
SEC. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE
TRADING.
(a) In General.--Section 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended by adding at the end the following:
``(e) Foreign Boards of Trade.--
``(1) In general.--The Commission may not permit a foreign
board of trade to provide to the members of the foreign board
of trade or other participants located in the United States
direct access to the electronic trading and order matching
system of the foreign board of trade with respect to an
agreement, contract, or transaction in an energy or
agricultural commodity that settles against any price
(including the daily or final settlement price) of 1 or more
contracts listed for trading on a registered entity, unless--
``(A) the foreign board of trade makes public daily trading
information regarding the agreement, contract, or transaction
that is comparable to the daily trading information published
by the registered entity for the 1 or more contracts against
which the agreement, contract, or transaction traded on the
foreign board of trade settles; and
``(B) the foreign board of trade (or the foreign futures
authority that oversees the foreign board of trade)--
``(i) adopts position limits (including related hedge
exemption provisions) for the agreement, contract, or
transaction that are comparable, taking into consideration
the relative sizes of the respective markets, to the position
limits (including related hedge exemption provisions) adopted
by the registered entity for the 1 or more contracts against
which the agreement, contract, or transaction traded on the
foreign board of trade settles;
``(ii) has the authority to require or direct market
participants to limit, reduce, or liquidate any position the
foreign board of trade (or the foreign futures authority that
oversees the foreign board of trade) determines to be
necessary to prevent or reduce the threat of price
manipulation, excessive speculation as described in section
4a, price distortion, or disruption of delivery or the cash
settlement process;
``(iii) agrees to promptly notify the Commission of any
change regarding--
``(I) the information that the foreign board of trade will
make publicly available;
``(II) the position limits that the foreign board of trade
or foreign futures authority will adopt and enforce;
``(III) the position reductions required to prevent
manipulation, excessive speculation as described in section
4a, price distortion, or disruption of delivery or the cash
settlement process; and
``(IV) any other area of interest expressed by the
Commission to the foreign board of trade or foreign futures
authority;
``(iv) provides information to the Commission regarding
large trader positions in the agreement, contract, or
transaction that is comparable to the large trader position
information collected by the Commission for the 1 or more
contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles; and
``(v) provides the Commission with information necessary to
publish reports on aggregate trader positions for the
agreement, contract, or transaction traded on the foreign
board of trade that are comparable to such reports for 1 or
more contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles.
``(2) Existing foreign boards of trade.--Paragraph (1)
shall not be effective with respect to any agreement,
contract, or transaction in an energy commodity executed on a
foreign board of trade to which the Commission had granted
direct access permission before the date of the enactment of
this subsection until the date that is 180 days after such
date of enactment.''.
(b) Liability of Registered Persons Trading on a Foreign
Board of Trade.--
(1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by
inserting ``or by subsection (f)'' after ``Unless exempted by
the Commission pursuant to subsection (c)''.
(2) Section 4 of such Act (7 U.S.C. 6) is further amended
by adding at the end the following:
``(f) A person registered with the Commission, or exempt
from registration by the Commission, under this Act may not
be found to have violated subsection (a) with respect to a
transaction in, or in connection with, a contract of sale of
a commodity for future delivery if the person has reason to
believe the transaction and the contract is made on or
subject to the rules of a board of trade that is legally
organized under the laws of a foreign country, authorized to
act as a board of trade by a foreign futures authority,
subject to regulation by the foreign futures authority, and
has not been determined by the Commission to be operating in
violation of subsection (a).''.
(c) Contract Enforcement for Foreign Futures Contracts.--
Section 22(a) of such Act (7 U.S.C. 25(a)) is amended by
adding at the end the following:
``(5) A contract of sale of a commodity for future delivery
traded or executed on or through the facilities of a board of
trade, exchange, or market located outside the United States
for purposes of section 4(a) shall not be void, voidable, or
unenforceable, and a party to such a contract shall not be
entitled to rescind or recover any payment made with respect
to the contract, based on the failure of the foreign board of
trade to comply with any provision of this Act.''.
SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN
ENERGY AND AGRICULTURE MARKETS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as
amended by section 4 of this Act, is amended by adding at the
end the following:
``(g) Disaggregation of Index Funds and Other Data in
Energy and Agriculture Markets.--Subject to section 8 and
beginning within 30 days of the issuance of the final rule
required by section 4h, the Commission shall disaggregate and
make public weekly--
``(1) the number of positions and total value of index
funds and other passive, long-only and short-only positions
(as defined by the Commission) in all energy and agricultural
markets to the extent such information is available; and
``(2) data on speculative positions relative to bona fide
physical hedgers in those markets to the extent such
information is available.''.
SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP
DEALERS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as
amended by sections 4 and 5 of this Act, is amended by adding
at the end the following:
``(h) Index Traders and Swap Dealers Reporting.--The
Commission shall issue a proposed rule defining and
classifying index traders and swap dealers (as those terms
are defined by the Commission) for purposes of data reporting
requirements and setting routine detailed reporting
requirements for such entities in designated contract
markets, derivatives transaction execution facilities,
foreign boards of trade subject to section 4(e), and
electronic trading facilities with respect to significant
price discovery contracts with respect to exempt and
agricultural commodities not later than 60 days after the
date of the enactment of this subsection, and issue a final
rule within 120 days after such date of enactment.''.
SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.
(a) In General.--Section 4g(a) of the Commodity Exchange
Act (7 U.S.C. 6g(a)) is amended--
(1) by inserting ``a'' before ``futures commission
merchant''; and
(2) by inserting ``and transactions and positions traded
pursuant to subsection (g), (h)(1), or (h)(2) of section 2,
or any exemption issued by the Commission by rule, regulation
or order,'' after ``United States or elsewhere,''.
(b) Reports of Deals Equal to or in Excess of Trading
Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
(1) in the first sentence--
(A) by inserting ``(a)'' before ``It shall''; and
(B) by inserting ``in the United States or elsewhere, and
of transactions and positions in any such commodity entered
into pursuant to subsection (g), (h)(1), or (h)(2) of section
2, or any exemption issued by the Commission by rule,
regulation or order'' before ``, and of cash or spot''; and
[[Page H8415]]
(2) by striking all that follows the 1st sentence and
inserting the following:
``(b) With respect to agricultural and energy commodities,
upon special call by the Commission, any person shall provide
to the Commission, in a form and manner and within the period
specified in the special call, books and records of all
transactions and positions traded on or subject to the rules
of any board of trade or electronic trading facility in the
United States or elsewhere, or pursuant to subsection (g),
(h)(1), or (h)(2) of section 2, or any exemption issued by
the Commission by rule, regulation, or order, as the
Commission may determine appropriate to deter and prevent
price manipulation or any other disruption to market
integrity or to diminish, eliminate, or prevent excessive
speculation as described in section 4a(a).
``(c) Such books and records described in subsections (a)
and (b) shall show complete details concerning all such
transactions, positions, inventories, and commitments,
including the names and addresses of all persons having any
interest therein, shall be kept for a period of 5 years, and
shall be open at all times to inspection by any
representative of the Commission or the Department of
Justice. For the purposes of this section, the futures and
cash or spot transactions and positions of any person shall
include such transactions and positions of any persons
directly or indirectly controlled by the person.''.
(c) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
(A) by inserting ``4g(a), 4i,'' before ``5a (to''; and
(B) by inserting ``, and the regulations of the Commission
pursuant to section 4c(b) requiring reporting in connection
with commodity option transactions,'' before ``shall apply''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended to read as follows:
``(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and the
regulations of the Commission pursuant to section 4c(b)
requiring reporting in connection with commodity option
transactions;''.
SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.
Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is
amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding after and below the end the following:
``(2) In accordance with the standards set forth in
paragraph (1) of this subsection and consistent with the good
faith exception cited in subsection (b)(2), with respect to
agricultural commodities enumerated in section 1a(4) and
energy commodities, the Commission, within 60 days after the
date of the enactment of this paragraph, shall by rule,
regulation, or order establish limits on the amount of
positions that may be held by any person with respect to
contracts of sale for future delivery or with respect to
options on such contracts or commodities traded on or subject
to the rules of a contract market or derivatives transaction
execution facility, or on an electronic trading facility as a
significant price discovery contract.
``(3) In establishing the limits required in paragraph (2),
the Commission shall set limits--
``(A) on the number of positions that may be held by any
person for the spot month, each other month, and the
aggregate number of positions that may be held by any person
for all months;
``(B) to the maximum extent practicable, in its
discretion--
``(i) to diminish, eliminate, or prevent excessive
speculation as described under this section;
``(ii) to deter and prevent market manipulation, squeezes,
and corners;
``(iii) to ensure sufficient market liquidity for bona fide
hedgers; and
``(iv) to ensure that the price discovery function of the
underlying market is not disrupted; and
``(C) to the maximum extent practicable, in its discretion,
take into account the total number of positions in fungible
agreements, contracts, or transactions that a person can hold
in agricultural and energy commodities in other markets.
``(4)(A) Not later than 150 days after the date of the
enactment of this paragraph, the Commission shall convene a
Position Limit Agricultural Advisory Group and a Position
Limit Energy Group, each group consisting of representatives
from--
``(i) 5 predominantly commercial short hedgers of the
actual physical commodity for future delivery;
``(ii) 5 predominantly commercial long hedgers of the
actual physical commodity for future delivery;
``(iii) 4 non-commercial participants in markets for
commodities for future delivery; and
``(iv) each designated contract market or derivatives
transaction execution facility upon which a contract in the
commodity for future delivery is traded, and each electronic
trading facility that has a significant price discovery
contract in the commodity.
``(B) Not later than 60 days after the date on which the
advisory groups are convened under subparagraph (A), and
annually thereafter, the advisory groups shall submit to the
Commission advisory recommendations regarding the position
limits to be established in paragraph (2) and a
recommendation as to whether the position limits should be
administered directly by the Commission, or by the registered
entity on which the commodity is listed (with enforcement by
both the registered entity and the Commission).''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' after ``(c)''; and
(B) by adding after and below the end the following:
``(2) With respect to agricultural and energy commodities,
for the purposes of contracts of sale for future delivery and
options on such contracts or commodities, a bona fide hedging
transaction or position is a transaction or position that--
``(A)(i) represents a substitute for transactions to be
made or positions to be taken at a later time in a physical
marketing channel;
``(ii) is economically appropriate to the reduction of
risks in the conduct and management of a commercial
enterprise; and
``(iii) arises from the potential change in the value of--
``(I) assets that a person owns, produces, manufactures,
processes, or merchandises or anticipates owning, producing,
manufacturing, processing, or merchandising;
``(II) liabilities that a person owns or anticipates
incurring; or
``(III) services that a person provides, purchases, or
anticipates providing or purchasing; or
``(B) reduces risks attendant to a position resulting from
a transaction that--
``(i) was executed pursuant to subsection (g), (h)(1), or
(h)(2) of section 2, or an exemption issued by the Commission
by rule, regulation or order; and
``(ii) was executed opposite a counterparty for which the
transaction would qualify as a bona fide hedging transaction
pursuant to paragraph (2)(A) of this subsection.''.
SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO
POSITION LIMITS FOR CONTRACTS IN AGRICULTURAL
AND ENERGY COMMODITIES.
(a) Contracts Traded on Contract Markets.--Section 5(d)(5)
of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended
by striking all that follows ``adopt'' and inserting ``, for
speculators, position limitations with respect to
agricultural commodities enumerated in section 1a(4) or
energy commodities, and position limitations or position
accountability with respect to other commodities, where
necessary and appropriate.''.
(b) Contracts Traded on Derivatives Transaction Execution
Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4))
is amended by striking all that follows ``adopt'' and
inserting ``, for speculators, position limitations with
respect to energy commodities, and position limitations or
position accountability with respect to other commodities,
where necessary and appropriate for a contract, agreement or
transaction with an underlying commodity that has a
physically deliverable supply.''.
(c) Significant Price Discovery Contracts.--Section
2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV))
is amended by striking ``where necessary'' and all that
follows through ``in significant price discovery contracts''
and inserting ``for speculators, position limitations with
respect to significant price discovery contracts in energy
commodities, and position limitations or position
accountability with respect to significant price discovery
contracts in other commodities''.
SEC. 10. CFTC ADMINISTRATION.
(a) Additional Commodity Futures Trading Commission
Employees for Improved Enforcement.--Section 2(a)(7) of the
Commodity Exchange Act (7 U.S.C. 2(a)(7)) is amended by
adding at the end the following:
``(D) Additional employees.--As soon as practicable after
the date of the enactment of this subparagraph, subject to
appropriations, the Commission shall appoint at least 100
full-time employees (in addition to the employees employed by
the Commission as of the date of the enactment of this
subparagraph)--
``(i) to increase the public transparency of operations in
agriculture and energy markets;
``(ii) to improve the enforcement of this Act in those
markets; and
``(iii) to carry out such other duties as are prescribed by
the Commission.''.
(b) Inspector General of Commodity Futures Trading
Commission.--
(1) Elevation of office.--
(A) Inclusion of cftc in definition of establishment.--
Section 11(2) of the Inspector General Act of 1878 (5 U.S.C.
App.) is amended by striking ``or the Export-Import Bank,''
and inserting ``, the Export-Import Bank, or the Commodity
Futures Trading Commission,''.
(B) Exclusion of cftc from definition of designated federal
entity.--Section 8G(a)(2) of such Act (5 U.S.C. App.) is
amended by striking ``the Commodity Futures Trading
Commission,''.
(2) Transition.--Until such time as the Inspector General
of the Commodity Futures Trading Commission is appointed in
accordance with section 3 of the Inspector General Act of
1978, the Office of Inspector General of the Commission shall
continue in effect as provided in such Act before the date of
the enactment of this Act.
SEC. 11. REVIEW OF PRIOR ACTIONS.
Notwithstanding any other provision of the Commodity
Exchange Act, the Commodity Futures Trading Commission shall
review, as appropriate, all regulations, rules,
[[Page H8416]]
exemptions, exclusions, guidance, no action letters, orders,
other actions taken by or on behalf of the Commission, and
any action taken pursuant to the Commodity Exchange Act by an
exchange, self-regulatory organization, or any other
registered entity, that are currently in effect, to ensure
that such prior actions are in compliance with the provisions
of this Act.
SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS.
(a) Study.--The Commodity Futures Trading Commission shall
conduct a study--
(1) to determine the efficacy, practicality, and
consequences of establishing position limits for agreements,
contracts, or transactions conducted in reliance on sections
2(g) and 2(h) of the Commodity Exchange Act and of any
exemption issued by the Commission by rule, regulation or
order, as a means to deter and prevent price manipulation or
any other disruption to market integrity or to diminish,
eliminate, or prevent excessive speculation as described in
section 4a of such Act for physical-based commodities; and
(2) to determine the efficacy, practicality, and
consequences of establishing aggregate position limits for
similar agreements, contracts, or transactions for physical-
based commodities traded--
(A) on designated contract markets;
(B) on derivatives transaction execution facilities; and
(C) in reliance on such sections 2(g) and 2(h) and of any
exemption issued by the Commission by rule, regulation or
order.
(b) Public Hearings.--The Commission shall provide for not
less than 2 public hearings to take testimony, on the record,
as part of the fact- gathering process in preparation of the
report.
(c) Report and Recommendations.--Not less than 12 months
after the date of the enactment of this section, the
Commission shall provide to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that--
(1) describes the results of the study; and
(2) provides recommendations on any actions necessary to
deter and prevent price manipulation or any other disruption
to market integrity or to diminish, eliminate, or prevent
excessive speculation as described in section 4a of the
Commodity Exchange Act for physical-based commodities,
including--
(A) any additional statutory authority that the Commission
determines to be necessary to implement the recommendations;
and
(B) a description of the resources that the Commission
considers to be necessary to implement the recommendations.
SEC. 13. STUDIES; REPORTS.
(a) Study Relating to International Regulation of Energy
Commodity Markets.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the international regime for
regulating the trading of energy commodity futures and
derivatives.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) key common features and differences among countries in
the regulation of energy commodity trading, including with
respect to market oversight and enforcement standards and
activities;
(B) variations among countries with respect to the use of
position limits, position accountability levels, or other
thresholds to detect and prevent price manipulation,
excessive speculation as described in section 4a of the
Commodity Exchange Act, or other unfair trading practices;
(C) variations in practices regarding the differentiation
of commercial and noncommercial trading;
(D) agreements and practices for sharing market and trading
data among futures authorities and between futures
authorities and the entities that the futures authorities
oversee; and
(E) agreements and practices for facilitating international
cooperation on market oversight, compliance, and enforcement.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that--
(A) describes the results of the study;
(B) addresses whether there is excessive speculation, and
if so, the effects of any such speculation and energy price
volatility on energy futures; and
(C) provides recommendations to improve openness,
transparency, and other necessary elements of a properly
functioning market in a manner that protects consumers in the
United States.
(b) Study Relating to Effects of Speculators on Agriculture
and Energy Futures Markets and Agriculture and Energy
Prices.--
(1) Study.--The Comptroller General of the United States
shall conduct a study of the effects of speculators on
agriculture and energy futures markets and agriculture and
energy prices.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) the effect of increased amounts of capital in
agriculture and energy futures markets;
(B) the impact of the roll-over of positions by index fund
traders and swap dealers on agriculture and energy futures
markets and agriculture and energy prices; and
(C) the extent to which each factor described in
subparagraphs (A) and (B) and speculators--
(i) affect--
(I) the pricing of agriculture and energy commodities; and
(II) risk management functions; and
(ii) contribute to economically efficient price discovery.
(3) Report.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the
results of the study.
SEC. 14. OVER-THE-COUNTER AUTHORITY.
(a) In General.--Section 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by adding at the end the following:
``(j) Over-the-Counter Authority.--
``(1) Within 60 days after the date of the enactment of
this subsection, the Commission shall, by rule, regulation,
or order, require routine reporting as it deems in its
discretion appropriate, on not less than a monthly basis, of
agreements, contracts, or transactions, with regard to an
agricultural or energy commodity, entered into in reliance on
subsection (g), (h)(1), or (h)(2) of section 2, or any
exemption issued by the Commission by rule, regulation, or
order that are fungible (as defined by the Commission) with
agreements, contracts, or transactions traded on or subject
to the rules of any board of trade or of any electronic
trading facility with respect to a significant price
discovery contract.
``(2) Notwithstanding subsections (g), (h)(1), and (h)(2)
of section 2, and any exemption issued by the Commission by
rule, regulation, or order, the Commission shall assess and
issue a finding on whether the agreements, contracts, or
transactions reported pursuant to paragraph (1), alone or in
conjunction with other similar agreements, contracts, or
transactions, have the potential to--
``(A) disrupt the liquidity or price discovery function on
a registered entity;
``(B) cause a severe market disturbance in the underlying
cash or futures market for an agricultural or energy
commodity; or
``(C) prevent or otherwise impair the price of a contract
listed for trading on a registered entity from reflecting the
forces of supply and demand in any market for an agricultural
commodity enumerated in section 1a(4) or an energy commodity.
``(3) If the Commission makes a finding pursuant to
paragraph (2) of this subsection, the Commission may, in its
discretion, utilize its authority under section 8a(9) to
impose position limits for speculators on the agreements,
contracts, or transactions involved and take corrective
actions to enforce the limits.''.
(b) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by
inserting ``subsection (j) of this section, and'' after
``(other than''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended by inserting ``subsection (j) of this section and''
before ``sections''.
(3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is
amended by inserting after ``of the Commission's action'' the
following: ``, and to fix and enforce limits to agreements,
contracts, or transaction subject to section 2(j)(1) pursuant
to a finding made under section 2(j)(2)''.
SEC. 15. EXPEDITED PROCESS.
The Commodity Futures Trading Commission may use emergency
and expedited procedures (including any administrative or
other procedure as appropriate) to carry out this Act if, in
its discretion, it deems it necessary to do so.
The SPEAKER pro tempore. Pursuant to House Resolution 1449, the
amendment in the nature of a substitute printed in House Report 110-859
is adopted and the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 6604
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Commodity Markets
Transparency and Accountability Act of 2008''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of energy commodity.
Sec. 4. Speculative limits and transparency of off-shore trading.
Sec. 5. Disaggregation of index funds and other data in energy and
agriculture markets.
Sec. 6. Detailed reporting from index traders and swap dealers.
Sec. 7. Transparency and recordkeeping authorities.
Sec. 8. Trading limits to prevent excessive speculation.
Sec. 9. Modifications to core principles applicable to position limits
for contracts in agricultural and energy commodities.
Sec. 10. CFTC Administration.
Sec. 11. Review of prior actions.
Sec. 12. Review of over-the-counter markets.
Sec. 13. Studies; reports.
Sec. 14. Over-the-counter authority.
Sec. 15. Expedited process.
SEC. 3. DEFINITION OF ENERGY COMMODITY.
(a) Definition of Energy Commodity.--Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) is amended--
[[Page H8417]]
(1) by redesignating paragraphs (13) through (34) as
paragraphs (14) through (35), respectively; and
(2) by inserting after paragraph (12) the following:
``(13) Energy commodity.--The term `energy commodity'
means--
``(A) coal;
``(B) crude oil, gasoline, diesel fuel, jet fuel, heating
oil, and propane;
``(C) electricity;
``(D) natural gas; and
``(E) any other substance that is used as a source of
energy, as the Commission, in its discretion, deems
appropriate.''.
(b) Conforming Amendments.--
(1) Section 2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange
Act (7 U.S.C. 2(c)(2)(B)(i)(II)(cc)) is amended--
(A) in subitem (AA), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''; and
(B) in subitem (BB), by striking ``section 1a(20)'' and
inserting ``section 1a(21)''.
(2) Section 13106(b)(1) of the Food, Conservation, and
Energy Act of 2008 is amended by striking ``section 1a(32)''
and inserting ``section 1a''.
(3) Section 402 of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27) is amended--
(A) in subsection (a)(7), by striking ``section 1a(20)''
and inserting ``section 1a''; and
(B) in subsection (d)--
(i) in paragraph (1)(B), by striking ``section 1a(33)'' and
inserting ``section 1a''; and
(ii) in paragraph (2)(D), by striking ``section 1a(13)''
and inserting ``section 1a''.
SEC. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE
TRADING.
(a) In General.--Section 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended by adding at the end the following:
``(e) Foreign Boards of Trade.--
``(1) In general.--The Commission may not permit a foreign
board of trade to provide to the members of the foreign board
of trade or other participants located in the United States
direct access to the electronic trading and order matching
system of the foreign board of trade with respect to an
agreement, contract, or transaction in an energy or
agricultural commodity that settles against any price
(including the daily or final settlement price) of 1 or more
contracts listed for trading on a registered entity, unless--
``(A) the foreign board of trade makes public daily trading
information regarding the agreement, contract, or transaction
that is comparable to the daily trading information published
by the registered entity for the 1 or more contracts against
which the agreement, contract, or transaction traded on the
foreign board of trade settles; and
``(B) the foreign board of trade (or the foreign futures
authority that oversees the foreign board of trade)--
``(i) adopts position limits (including related hedge
exemption provisions) for the agreement, contract, or
transaction that are comparable, taking into consideration
the relative sizes of the respective markets, to the position
limits (including related hedge exemption provisions) adopted
by the registered entity for the 1 or more contracts against
which the agreement, contract, or transaction traded on the
foreign board of trade settles;
``(ii) has the authority to require or direct market
participants to limit, reduce, or liquidate any position the
foreign board of trade (or the foreign futures authority that
oversees the foreign board of trade) determines to be
necessary to prevent or reduce the threat of price
manipulation, excessive speculation as described in section
4a, price distortion, or disruption of delivery or the cash
settlement process;
``(iii) agrees to promptly notify the Commission of any
change regarding--
``(I) the information that the foreign board of trade will
make publicly available;
``(II) the position limits that the foreign board of trade
or foreign futures authority will adopt and enforce;
``(III) the position reductions required to prevent
manipulation, excessive speculation as described in section
4a, price distortion, or disruption of delivery or the cash
settlement process; and
``(IV) any other area of interest expressed by the
Commission to the foreign board of trade or foreign futures
authority;
``(iv) provides information to the Commission regarding
large trader positions in the agreement, contract, or
transaction that is comparable to the large trader position
information collected by the Commission for the 1 or more
contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles; and
``(v) provides the Commission with information necessary to
publish reports on aggregate trader positions for the
agreement, contract, or transaction traded on the foreign
board of trade that are comparable to such reports for 1 or
more contracts against which the agreement, contract, or
transaction traded on the foreign board of trade settles.
``(2) Existing foreign boards of trade.--Paragraph (1)
shall not be effective with respect to any agreement,
contract, or transaction in an energy commodity executed on a
foreign board of trade to which the Commission had granted
direct access permission before the date of the enactment of
this subsection until the date that is 180 days after such
date of enactment.''.
(b) Liability of Registered Persons Trading on a Foreign
Board of Trade.--
(1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by
inserting ``or by subsection (f)'' after ``Unless exempted by
the Commission pursuant to subsection (c)''.
(2) Section 4 of such Act (7 U.S.C. 6) is further amended
by adding at the end the following:
``(f) A person registered with the Commission, or exempt
from registration by the Commission, under this Act may not
be found to have violated subsection (a) with respect to a
transaction in, or in connection with, a contract of sale of
a commodity for future delivery if the person has reason to
believe the transaction and the contract is made on or
subject to the rules of a board of trade that is legally
organized under the laws of a foreign country, authorized to
act as a board of trade by a foreign futures authority,
subject to regulation by the foreign futures authority, and
has not been determined by the Commission to be operating in
violation of subsection (a).''.
(c) Contract Enforcement for Foreign Futures Contracts.--
Section 22(a) of such Act (7 U.S.C. 25(a)) is amended by
adding at the end the following:
``(5) A contract of sale of a commodity for future delivery
traded or executed on or through the facilities of a board of
trade, exchange, or market located outside the United States
for purposes of section 4(a) shall not be void, voidable, or
unenforceable, and a party to such a contract shall not be
entitled to rescind or recover any payment made with respect
to the contract, based on the failure of the foreign board of
trade to comply with any provision of this Act.''.
SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN
ENERGY AND AGRICULTURE MARKETS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as
amended by section 4 of this Act, is amended by adding at the
end the following:
``(g) Disaggregation of Index Funds and Other Data in
Energy and Agriculture Markets.--Subject to section 8 and
beginning within 30 days of the issuance of the final rule
required by section 4(h), the Commission shall disaggregate
and make public weekly--
``(1) the number of positions and total value of index
funds and other passive, long-only and short-only positions
(as defined by the Commission) in all energy and agricultural
markets to the extent such information is available; and
``(2) data on speculative positions relative to bona fide
physical hedgers in those markets to the extent such
information is available.''.
SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP
DEALERS.
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as
amended by sections 4 and 5 of this Act, is amended by adding
at the end the following:
``(h) Index Traders and Swap Dealers Reporting.--The
Commission shall issue a proposed rule defining and
classifying index traders and swap dealers (as those terms
are defined by the Commission) for purposes of data reporting
requirements and setting routine detailed reporting
requirements for such entities in designated contract
markets, derivatives transaction execution facilities,
foreign boards of trade subject to section 4(e), and
electronic trading facilities with respect to significant
price discovery contracts with respect to exempt and
agricultural commodities not later than 60 days after the
date of the enactment of this subsection, and issue a final
rule within 120 days after such date of enactment.''.
SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.
(a) In General.--Section 4g(a) of the Commodity Exchange
Act (7 U.S.C. 6g(a)) is amended--
(1) by inserting ``a'' before ``futures commission
merchant''; and
(2) by inserting ``and transactions and positions traded
pursuant to subsection (g), (h)(1), or (h)(2) of section 2,
or any exemption issued by the Commission by rule, regulation
or order,'' after ``United States or elsewhere,''.
(b) Reports of Deals Equal to or in Excess of Trading
Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
(1) in the first sentence--
(A) by inserting ``(a)'' before ``It shall''; and
(B) by inserting ``in the United States or elsewhere, and
of transactions and positions in any such commodity entered
into pursuant to subsection (g), (h)(1), or (h)(2) of section
2, or any exemption issued by the Commission by rule,
regulation or order'' before ``, and of cash or spot''; and
(2) by striking all that follows the 1st sentence and
inserting the following:
``(b) With respect to agricultural and energy commodities,
upon special call by the Commission, any person shall provide
to the Commission, in a form and manner and within the period
specified in the special call, books and records of all
transactions and positions traded on or subject to the rules
of any board of trade or electronic trading facility in the
United States or elsewhere, or pursuant to subsection (g),
(h)(1), or (h)(2) of section 2, or any exemption issued by
the Commission by rule, regulation, or order, as the
Commission may determine appropriate to deter and prevent
price manipulation or any other disruption to market
integrity or to diminish, eliminate, or prevent excessive
speculation as described in section 4a(a).
``(c) Such books and records described in subsections (a)
and (b) shall show complete
[[Page H8418]]
details concerning all such transactions, positions,
inventories, and commitments, including the names and
addresses of all persons having any interest therein, shall
be kept for a period of 5 years, and shall be open at all
times to inspection by any representative of the Commission
or the Department of Justice. For the purposes of this
section, the futures and cash or spot transactions and
positions of any person shall include such transactions and
positions of any persons directly or indirectly controlled by
the person.''.
(c) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
(A) by inserting ``4g(a), 4i,'' before ``5a (to''; and
(B) by inserting ``, and the regulations of the Commission
pursuant to section 4i(b) requiring reporting in connection
with commodity option transactions,'' before ``shall apply''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended to read as follows:
``(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and the
regulations of the Commission pursuant to section 4i(b)
requiring reporting in connection with commodity option
transactions;''.
SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.
Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is
amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``(a)''; and
(B) by adding after and below the end the following:
``(2) In accordance with the standards set forth in
paragraph (1) of this subsection and consistent with the good
faith exception cited in subsection (b)(2), with respect to
agricultural commodities enumerated in section 1a(4) and
energy commodities, the Commission, within 60 days after the
date of the enactment of this paragraph, shall by rule,
regulation, or order establish limits on the amount of
positions, other than bona fide hedge positions, that may be
held by any person with respect to contracts of sale for
future delivery or with respect to options on such contracts
or commodities traded on or subject to the rules of a
contract market or derivatives transaction execution
facility, or on an electronic trading facility as a
significant price discovery contract.
``(3) In establishing the limits required in paragraph (2),
the Commission shall set limits--
``(A) on the number of positions that may be held by any
person for the spot month, each other month, and the
aggregate number of positions that may be held by any person
for all months;
``(B) to the maximum extent practicable, in its
discretion--
``(i) to diminish, eliminate, or prevent excessive
speculation as described under this section;
``(ii) to deter and prevent market manipulation, squeezes,
and corners;
``(iii) to ensure sufficient market liquidity for bona fide
hedgers; and
``(iv) to ensure that the price discovery function of the
underlying market is not disrupted; and
``(C) to the maximum extent practicable, in its discretion,
take into account the total number of positions in fungible
agreements, contracts, or transactions that a person can hold
in agricultural and energy commodities in other markets.
``(4)(A) Not later than 150 days after the date of the
enactment of this paragraph, the Commission shall convene a
Position Limit Agricultural Advisory Group and a Position
Limit Energy Group, each group consisting of representatives
from--
``(i) 7 predominantly commercial short hedgers of the
actual physical commodity for future delivery;
``(ii) 7 predominantly commercial long hedgers of the
actual physical commodity for future delivery;
``(iii) 4 non-commercial participants in markets for
commodities for future delivery; and
``(iv) each designated contract market or derivatives
transaction execution facility upon which a contract in the
commodity for future delivery is traded, and each electronic
trading facility that has a significant price discovery
contract in the commodity.
``(B) Not later than 60 days after the date on which the
advisory groups are convened under subparagraph (A), and
annually thereafter, the advisory groups shall submit to the
Commission advisory recommendations regarding the position
limits to be established in paragraph (2) and a
recommendation as to whether the position limits should be
administered directly by the Commission, or by the registered
entity on which the commodity is listed (with enforcement by
both the registered entity and the Commission).''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' after ``(c)''; and
(B) by adding after and below the end the following:
``(2) With respect to agricultural and energy commodities,
for the purposes of contracts of sale for future delivery and
options on such contracts or commodities, the Commission
shall define what constitutes a bona fide hedging transaction
or position as a transaction or position that--
``(A)(i) represents a substitute for transactions to be
made or positions to be taken at a later time in a physical
marketing channel;
``(ii) is economically appropriate to the reduction of
risks in the conduct and management of a commercial
enterprise; and
``(iii) arises from the potential change in the value of--
``(I) assets that a person owns, produces, manufactures,
processes, or merchandises or anticipates owning, producing,
manufacturing, processing, or merchandising;
``(II) liabilities that a person owns or anticipates
incurring; or
``(III) services that a person provides, purchases, or
anticipates providing or purchasing; or
``(B) reduces risks attendant to a position resulting from
a transaction that--
``(i) was executed pursuant to subsection (g), (h)(1), or
(h)(2) of section 2, or an exemption issued by the Commission
by rule, regulation or order; and
``(ii) was executed opposite a counterparty for which the
transaction would qualify as a bona fide hedging transaction
pursuant to paragraph (2)(A) of this subsection.''.
SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO
POSITION LIMITS FOR CONTRACTS IN AGRICULTURAL
AND ENERGY COMMODITIES.
(a) Contracts Traded on Contract Markets.--Section 5(d)(5)
of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended
by striking all that follows ``adopt'' and inserting ``, for
speculators, position limitations with respect to
agricultural commodities enumerated in section 1a(4) or
energy commodities, and position limitations or position
accountability with respect to other commodities, where
necessary and appropriate.''.
(b) Contracts Traded on Derivatives Transaction Execution
Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4))
is amended by striking all that follows ``adopt'' and
inserting ``, for speculators, position limitations with
respect to energy commodities, and position limitations or
position accountability with respect to other commodities,
where necessary and appropriate for a contract, agreement or
transaction with an underlying commodity that has a
physically deliverable supply.''.
(c) Significant Price Discovery Contracts.--Section
2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV))
is amended by striking ``where necessary'' and all that
follows through ``in significant price discovery contracts''
and inserting ``for speculators, position limitations with
respect to significant price discovery contracts in energy
commodities, and position limitations or position
accountability with respect to significant price discovery
contracts in other commodities''.
SEC. 10. CFTC ADMINISTRATION.
Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C.
2(a)(7)) is amended by adding at the end the following:
``(D) Additional employees.--As soon as practicable after
the date of the enactment of this subparagraph, subject to
appropriations, the Commission shall appoint at least 100
full-time employees (in addition to the employees employed by
the Commission as of the date of the enactment of this
subparagraph)--
``(i) to increase the public transparency of operations in
agriculture and energy markets;
``(ii) to improve the enforcement of this Act in those
markets; and
``(iii) to carry out such other duties as are prescribed by
the Commission.''.
SEC. 11. REVIEW OF PRIOR ACTIONS.
Notwithstanding any other provision of the Commodity
Exchange Act, the Commodity Futures Trading Commission shall
review, as appropriate, all regulations, rules, exemptions,
exclusions, guidance, no action letters, orders, other
actions taken by or on behalf of the Commission, and any
action taken pursuant to the Commodity Exchange Act by an
exchange, self-regulatory organization, or any other
registered entity, that are currently in effect, to ensure
that such prior actions are in compliance with the provisions
of this Act.
SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS.
(a) Study.--The Commodity Futures Trading Commission shall
conduct a study--
(1) to determine the efficacy, practicality, and
consequences of establishing limits on the amount of
positions, other than bona fide hedge positions, that may be
held by any person with respect to agreements, contracts, or
transactions involving an agricultural or energy commodity,
conducted in reliance on sections 2(g) and 2(h) of the
Commodity Exchange Act and of any exemption issued by the
Commission by rule, regulation or order, that are fungible
(as defined by the Commission) with agreements, contracts, or
transactions traded on or subject to the rules of any board
of trade or of any electronic trading facility with respect
to a signifcant price discovery contract, as a means to deter
and prevent price manipulation or any other disruption to
market integrity or to diminish, eliminate, or prevent
excessive speculation as described in section 4a of such Act
for physical-based agricultural or energy commodities; and
(2) to determine the efficacy, practicality, and
consequences of establishing aggregate position limits for
similar agreements, contracts, or transactions for physical-
based agricultural or energy commodities traded--
(A) on designated contract markets;
(B) on derivatives transaction execution facilities; and
(C) in reliance on such sections 2(g) and 2(h) and of any
exemption issued by the Commission by rule, regulation or
order.
[[Page H8419]]
(b) Public Hearings.--The Commission shall provide for not
less than 2 public hearings to take testimony, on the record,
as part of the fact- gathering process in preparation of the
report.
(c) Report and Recommendations.--Not less than 12 months
after the date of the enactment of this section, the
Commission shall provide to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that--
(1) describes the results of the study; and
(2) provides recommendations on any actions necessary to
deter and prevent price manipulation or any other disruption
to market integrity or to diminish, eliminate, or prevent
excessive speculation as described in section 4a of the
Commodity Exchange Act for physical-based commodities,
including--
(A) any additional statutory authority that the Commission
determines to be necessary to implement the recommendations;
and
(B) a description of the resources that the Commission
considers to be necessary to implement the recommendations.
SEC. 13. STUDIES; REPORTS.
(a) Study Relating to International Regulation of Energy
Commodity Markets.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the international regime for
regulating the trading of energy commodity futures and
derivatives.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) key common features and differences among countries in
the regulation of energy commodity trading, including with
respect to market oversight and enforcement standards and
activities;
(B) variations among countries with respect to the use of
position limits, position accountability levels, or other
thresholds to detect and prevent price manipulation,
excessive speculation as described in section 4a of the
Commodity Exchange Act, or other unfair trading practices;
(C) variations in practices regarding the differentiation
of commercial and noncommercial trading;
(D) agreements and practices for sharing market and trading
data among futures authorities and between futures
authorities and the entities that the futures authorities
oversee; and
(E) agreements and practices for facilitating international
cooperation on market oversight, compliance, and enforcement.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit
to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that--
(A) describes the results of the study;
(B) addresses whether there is excessive speculation, and
if so, the effects of any such speculation and energy price
volatility on energy futures; and
(C) provides recommendations to improve openness,
transparency, and other necessary elements of a properly
functioning market in a manner that protects consumers in the
United States.
(b) Study Relating to Effects of Speculators on Agriculture
and Energy Futures Markets and Agriculture and Energy
Prices.--
(1) Study.--The Commodity Futures Trading Commission shall
conduct a study of the effects of speculators on agriculture
and energy futures markets and agriculture and energy prices.
(2) Analysis.--The study shall include an analysis of, at a
minimum--
(A) the effect of increased amounts of capital in
agriculture and energy futures markets;
(B) the impact of the roll-over of positions by index fund
traders and swap dealers on agriculture and energy futures
markets and agriculture and energy prices; and
(C) the extent to which each factor described in
subparagraphs (A) and (B) and speculators--
(i) affect--
(I) the pricing of agriculture and energy commodities; and
(II) risk management functions; and
(ii) contribute to economically efficient price discovery.
(3) Report.--Not later than 2 years after the date of the
enactment of this Act, the Commodity Futures Trading
Commission shall submit to the Committee on Agriculture of
the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a report
that describes the results of the study.
SEC. 14. OVER-THE-COUNTER AUTHORITY.
(a) In General.--Section 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by adding at the end the following:
``(j) Over-the-Counter Authority.--
``(1) Within 60 days after the date of the enactment of
this subsection, the Commission shall, by rule, regulation,
or order, require routine reporting as it deems in its
discretion appropriate, on not less than a monthly basis, of
agreements, contracts, or transactions, with regard to an
agricultural or energy commodity, entered into in reliance on
subsection (g), (h)(1), or (h)(2) of section 2, or any
exemption issued by the Commission by rule, regulation, or
order that are fungible (as defined by the Commission) with
agreements, contracts, or transactions traded on or subject
to the rules of any board of trade or of any electronic
trading facility with respect to a significant price
discovery contract.
``(2) Notwithstanding subsections (g), (h)(1), and (h)(2)
of section 2, and any exemption issued by the Commission by
rule, regulation, or order, the Commission shall assess and
issue a finding on whether the agreements, contracts, or
transactions reported pursuant to paragraph (1), alone or in
conjunction with other similar agreements, contracts, or
transactions, have the potential to--
``(A) disrupt the liquidity or price discovery function on
a registered entity;
``(B) cause a severe market disturbance in the underlying
cash or futures market for an agricultural or energy
commodity; or
``(C) prevent or otherwise impair the price of a contract
listed for trading on a registered entity from reflecting the
forces of supply and demand in any market for an agricultural
commodity enumerated in section 1a(4) or an energy commodity.
``(3) If the Commission makes a finding pursuant to
paragraph (2) of this subsection, the Commission may, in its
discretion, utilize its authority under section 8a(9) to
impose position limits (including, as appropriate and in its
discretion, related hedge exemption provisions for bona fide
hedging comparable to bona fide hedge provisions of section
4a(c)(2)) on agreements, contracts, or transactions involved,
and take corrective actions to enforce the limits.''.
(b) Conforming Amendments.--
(1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by
inserting ``subsection (j) of this section, and'' after
``(other than''.
(2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is
amended by inserting ``subsection (j) of this section and''
before ``sections''.
(3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is
amended by inserting after ``of the Commission's action'' the
following: ``, and to fix and enforce limits to agreements,
contracts, or transaction subject to section 2(j)(1) pursuant
to a finding made under section 2(j)(2)''.
SEC. 15. EXPEDITED PROCESS.
The Commodity Futures Trading Commission may use emergency
and expedited procedures (including any administrative or
other procedure as appropriate) to carry out this Act if, in
its discretion, it deems it necessary to do so.
The SPEAKER pro tempore. The gentleman from Minnesota (Mr. Peterson)
and the gentleman from Virginia (Mr. Goodlatte) each will control 30
minutes.
The Chair recognizes the gentleman from Minnesota.
Mr. PETERSON of Minnesota. Mr. Speaker, H.R. 6604, the Commodity
Markets Transparency and Accountability Act of 2008, will strengthen
oversight of the Commodity Futures Market for energy and agricultural
commodities. This bill will be almost entirely identical to the version
that we considered under suspension here on July 30, 2008.
There are two changes that are purely technical and corrected
typographical errors, and there are two other changes that we made in
the bill to make sure the provisions are entirely within the
jurisdiction of the Agriculture Committee.
One strikes section 10(b) regarding the Inspector General of the
CFTC. The other, section 13(b) is modified so the Commodity Futures
Trading Commission does the reference study instead of the Comptroller
General.
Mr. Speaker, on this bill we have gotten more information in the
committee, and Mr. Etheridge had a hearing that he chaired last week.
I would at this time yield 5 minutes to the gentleman from North
Carolina (Mr. Etheridge) who has been working with me tirelessly on
this to talk about the process and explain the bill.
Mr. ETHERIDGE. I thank the chairman.
I am pleased today to join Chairman Peterson and Ranking Member
Goodlatte in bringing this legislation, the Commodity Markets
Transparency and Accountability Act of 2008, to the floor for
consideration by the House.
Mr. Speaker, since our bill was considered by the full House this
past July, much has happened. For one thing, oil prices have dropped,
and they have dropped considerably. They have gone up in the last day
or so. Additionally, the CFTC has released a report providing the most
detailed and accurate look at data on index trading and swap dealers
participating in the over-the-counter market.
While all of us are glad to see the prices of oil decline and other
commodities in recent months, it does not relieve the Commission or
this Congress of our responsibility to make sure that commodity markets
are operating effectively, efficiently and fairly. And
[[Page H8420]]
while the CFTC report indicates that index funds and swap dealers have
less influence on our markets than had otherwise been reported, the
report does not tell us the whole story or provide us with all the
answers to our questions regarding these markets.
The CFTC report fails to include the time period of this July and
August and recent weeks when oil prices fell fairly rapidly. Do we have
a clear understanding of why prices fell? No. Passing H.R. 6604 will
provide the CFTC with the authority and the tools to examine the entire
marketplace to ensure no individual group or groups of market
participants is having an undue influence on the market.
Months ago, the CFTC was telling Congress that it needed no
additional changes to the Commodity Exchange Act and that markets were
functioning properly. Now the CFTC's report contains a host of
proposals very similar to the provisions in the Commodities Market
Transparency and Accountability Act.
The report recommends measures designed to enhance transparency and
data accuracy for commodity markets. Our bill provides the commission
with the tools to make that happen.
The report suggests revising the hedge exemption rules that allow
traders to exceed speculation position limits. Our bill accomplishes
that too.
The report highlights the desperate need for additional staff and
resources at the CFTC, not only to accomplish its current mission, but
also to implement its recommendations to bring greater transparency and
accountability to the commodity markets. We happen to agree.
Since 2000, volume on the commodity markets has increased sixfold,
but currently staffing levels at the CFTC have fallen to their lowest
level in the 33-year history of the Commodities Exchange. Through this
legislation, we acknowledge the need for 100 additional full-time
positions at CFTC that they need to effectively regulate the futures
industry, including our energy markets. But we should not kid
ourselves. The CFTC needs far more resources to do the job that we
expect them to do.
{time} 1230
Earlier this year the chairman of the CFTC testified at a hearing
that the agency needed 100 additional staff right now just to meet the
growing surveillance needs.
In testimony presented to the House Agriculture Committee a week ago
today, the chairman of the commission testified the CFTC would need
still another 138 full-time staff and $38 million just in 2009 to
implement the provisions of H.R. 6604. Given the light of what is
happening in the markets, I think we understand why the need is there.
I have said this before, but it bears repeating, if Congress places
additional responsibility upon the Commission, without providing the
resources necessary to meet those responsibilities, then what we pass
here today is simply a farce. Through its report, CFTC views on
effective oversight of commodity markets have changed dramatically from
where the commission was previously.
I know some of my colleagues will say let's wait and give the
commission time to implement these recommendations administratively. I
say why wait for the commission to implement changes that we as a
Congress can do right now with H.R. 6604.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. PETERSON of Minnesota. Mr. Speaker, I yield the gentleman another
30 seconds.
Mr. ETHERIDGE. We can all agree that no one factor is responsible for
the movement we have seen in agriculture and energy prices, but this
legislation is an important measure to provide the CFTC with additional
tools and authority to keep our markets free of manipulation and excess
speculation and help restore confidence to these markets. We cannot
allow excess speculation by Wall Street to cause folks on Main Street
to suffer.
I urge my colleagues to support this legislation.
Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may
consume.
For the past few years, the Committee on Agriculture has taken a
proactive approach to try to understand and monitor the issue of
trading activity in the futures markets and conduct appropriate
oversight. This was so we could make an informed decision about whether
or not commodity markets need greater transparency and accountability.
Last week, CFTC Acting Chairman Walt Lukken presented a 6-month study
of the futures market to the committee. Chairman Lukken and his staff
spent a lot of hours and a great deal of work over the past 3 months to
produce that report. We appreciated their efforts, especially for
keeping an aggressive timetable.
The CFTC report was useful in providing a reference point in
determining the relationship between index fund-related activity in the
over-the-counter markets and commodity futures, and energy and
agriculture prices in the United States.
However, as we move forward today with H.R. 6604, there are key
factors for us to consider.
One, after hearing testimony from Mr. Lukken, and after examining the
findings of this report, it is evident that our priority should be
ensuring that the CFTC has the tools and resources it needs to protect
and preserve the integrity of our futures markets.
The CFTC devoted more than 30 employees and 4,000 staff hours to
produce this report. Those who have read the report all agree that
these broad snapshots of the markets are necessary, but the CFTC does
not have the staff to dedicate to similar projects.
This bill directs the CFTC to hire 100 additional employees. But
because there has not been a single appropriations bill passed by both
Chambers and presented to the President, I have no idea how the already
underfunded agency will be able to do so.
The Democratic leadership is fond of pointing the finger of blame,
but ultimately the Democratic leadership has one duty, to consider and
pass the appropriations bills that fund the government. The Democratic
leadership has refused to execute this duty and has failed the American
taxpayer.
Second, this bill will not reduce the price of oil. It will not
relieve the burden many Americans face at the gas pump. In order to
achieve that very important goal, Congress must focus on creating a
viable energy policy that goes beyond the measures passed thus far to
increase the domestic supply of energy sources and promote energy
independence.
Though I have concerns that some of the provisions in H.R. 6604 are
too far-reaching, I will continue to support this bill to ensure that
the CFTC has all the tools it needs to preserve and protect the
integrity of our futures markets.
But I know, as I have worked closely with the chairman of the
committee, who has worked in a very bipartisan fashion to fashion this
legislation and address these concerns and make sure the CFTC has the
necessary oversight authority and capability, that this bill would
provide for it.
I also know that this is not what the American people want and need
when it comes to energy. I know that there are many on the other side
of the aisle who are hoping still to have an opportunity to vote, not
on a hoax, not on a sham like we did 2 days ago, but on a real American
energy bill that provides for real offshore drilling, not a bill that
would shut off 80 to 90 percent of the known oil and natural gas
reserves from access, not a bill that does nothing to promote nuclear
power, not a bill that doesn't take up consideration of drilling in the
Arctic National Wildlife Refuge, not a bill that shuts us off from
tapping into the oil shale reserves that are in tremendous abundance in
the Rocky Mountain States, not a bill that does nothing for coal-to-
liquid and other clean coal technologies that would benefit the
American people, since we have the largest coal reserves in the world,
not a bill that imposes tax increases in order to get to the
alternative forms of energy that the American people want to have, but,
rather, the American Energy Act, something that we asked this Congress
to bring up before we went into a 5-week August recess.
While the Speaker of the House ordered the microphones turned off,
the C-SPAN cameras turned off, the lights turned down low, we stayed
here day after day, week after week, calling for a vote on the American
Energy Act. We didn't get it.
[[Page H8421]]
Instead, we got this sham hoax that won't produce a drop of new oil,
won't produce a cubic foot of new natural gas, will do nothing for
nuclear power, will do nothing for coal, will do nothing for
alternative forms of energy. It is simply an effort to try to derail
what the American people clearly wanted to see on the floor of this
House.
We still haven't seen it. This bill doesn't do it. We need to have
that vote, and that's what the debate should be about here today, not
this legislation which is good, but does not do what the American
people want.
Mr. Speaker, I reserve the balance of my time.
Mr. PETERSON of Minnesota. I want to take a second to commend my
ranking member for the outstanding work that did he with us on a
bipartisan basis in this committee to bring this bill forward. We take
our jurisdiction very seriously, and we think we have produced a good
product.
Mr. Speaker, I am now pleased to recognize the gentleman from
Connecticut (Mr. Courtney) for 1 minute.
Mr. COURTNEY. Mr. Speaker, I rise in strong support of Chairman
Peterson's bill, which is a logical follow-on to Tuesday's energy bill
that had two goals: number one, to bring immediate relief to consumers;
and, two, to bring long-term solutions to America's energy challenges.
This bill will go a long way to bring accountability to the price of a
critical commodity, oil, which is the lifeblood of our economy.
The facts are clear, before energy commodities trading was exempted
from CFTC oversight, about 70 percent of the energy futures trading was
done by energy companies, 30 percent was done by speculators. Today
those numbers are reversed, and the trading volume has increased
sixfold.
As an old friend of mine, who has been in the scrap metal business in
Willimantic, Connecticut, for 30 years said, commodity markets were
never intended to be investment markets. Yet that is what they have
become, and consumers and small businesses cannot keep up with the huge
price swings occurring every day with no apparent connection to supply
and demand.
These huge price swings have a direct result on my constituents in
eastern Connecticut who are facing dire circumstances if home heating
oil remains at high and unstable prices this fall and winter. It is
time that Congress took additional steps to make sure that all markets,
including foreign boards of trade, operate with CFTC oversight. We must
bring transparency and stability to energy trading.
I urge my colleagues to support this bill.
Mr. GOODLATTE. Mr. Speaker, at this time I am pleased to yield 4
minutes to the gentleman from Florida (Mr. Feeney).
Mr. FEENEY. I thank the ranking member, and I am pleased to rise to
talk about this bill. I just think that it's important that we be
square with the American people about what this bill does and what it
doesn't do.
This bill essentially creates a straw man or a boogeyman and attacks
that straw man or boogeyman as though they were responsible for the
price of gasoline and energy in America today. Regardless of whether
you are voting for or against this bill, it doesn't do anything to help
Americans concerned about saving the American family and American
business from the high price of oil and gas.
Let me explain to Americans what speculators do. I am not a
speculator. Speculators bet on the future. It's legal to make a gamble
in America and bet on the future of commodities prices, of pork
bellies, and, as the agriculture chairman and ranking member are well
aware, of the price of corn and wheat in the future. Speculators bet on
the future.
What speculators have done with the price of oil and gas on the
commodities market, they have simply bet on the future price of oil and
gas. Now in this case, what are they betting on? They are betting that
the demand for energy in the world, places like India and China and the
third world, will increase. That's a pretty smart bet.
But they are betting on another thing. They are betting that the
Democratic-led Congress will continue to be stupid and refuse to supply
more energy for America. It's a simple preponderance rule of supply and
demand. If you have less corn 2 months from now, the price of corn will
go up. That's what speculators bet on.
If you are going to have more demand for energy and oil and gas, and
you know you will not produce more supply, then the price of oil and
gas will go up. To punish the speculators for betting that Congress
will continue to be stupid and not produce American energy is really
attacking a boogeyman. It is attacking a straw man and will not help
with the price of oil.
Now, as the ranking member said, the great news is, America has an
abundant supply of energy. We just won't access it. We are the Saudi
Arabia of the world's coal supply. We can produce and burn coal in a
liquefied or gasified manner cleaner than ever, but we refuse to do it.
China is doing it, India is doing it, our competitors are doing it. We
won't, even though we are the Saudi Arabia of coal.
We won't drill in ANWR. We will not access oil and tar shale. We
passed a fraud on the American people in a bill the other day that said
88 percent of the area where we could drill off the Outer Continental
Shelf for oil can never be drilled in, and the other 12 percent can be
drilled in, but only if all of the radical environmentalists and trial
lawyers somehow, someday, give us permission.
That is a no drilling bill. It is a no energy bill. Now we won't
build nuclear plants. America has the finest nuclear technology in the
world. We stopped building nuclear plants 30 years ago, and American
nuclear expertise, scientists and technologies went to France. You are
a really foolish country if the French are outsmarting you on policy
with your own technology, but that is what's happening every day.
So what do we do here today? Instead of passing a real American-based
energy bill where American energy can be produced by American workers
to save American families and American jobs, we have tax speculators
who have bet on the future, and they have bet that the Democrat-led
Congress will continue to be dumb.
I think they made a good bet.
Mr. PETERSON of Minnesota. Mr. Speaker, I am pleased now to yield 2
minutes to the gentleman from Vermont (Mr. Welch) who has been a leader
on this issue.
Mr. WELCH of Vermont. Mr. Speaker, a couple of things about this.
Number one, the fact that this is a bipartisan bill is really a
breakthrough. The fact is that having the support of the Agriculture
Committee, ranking member and the chairman, indicates that there is a
coming together on something that is incredibly important.
We have had a lot of debate about how this is going to affect the
price of gas, but the way, as I understand it, the Agriculture
Committee approached this, was how are we going to protect consumers?
How are we going to protect farmers? How are we going to protect fuel
dealers and airlines that have the burden of buying in the futures
market because they need price stability, and they need a futures
trading market in order to have price discovery, so that coming
together was about recognizing that the institutional mechanism of a
commodity futures trading commission has to be in service of those
farmers in the Midwest.
It has to be in service of airlines that are trying to get us from
here to there, of our fuel dealers that are delivering home heating
fuel to our people at home. We can have a debate about how much prices
are going to come down. In fact, since this committee took this under
active consideration, the prices have come from 150 to 100. We can
argue about what's the cause and effect, but it certainly was
contemporaneous and had a big impact.
{time} 1245
But what is happening in our economy is that basic institutions that
have served us well, mortgages for homeowners, or the futures trading
for farmers and others, have been hijacked for other reasons, not just
to help a person buy a home or help a farmer have a price, but to
become a commodity itself used by Wall Street to speculate for
financial manipulation and market reasons.
That is not what these institutions are about, and the Congress has a
fundamental decision before it. Are we
[[Page H8422]]
going to stand up for American farmers and American consumers and
provide protection for the institutions that they absolutely need, we
need, or are we going to allow them to continue to be hijacked by Wall
Street for other reasons?
Mr. GOODLATTE. Mr. Speaker, it is my pleasure to yield 5 minutes to
the gentleman from Kansas (Mr. Moran), the ranking Republican member on
the subcommittee with jurisdiction over commodity futures trading.
Mr. MORAN of Kansas. Mr. Speaker, I rise today, in contrast to my
colleagues on the committee and subcommittee, in opposition to H.R.
6604. It is an awkward position to be in because I spend more time and
have a greater closer working relationship with the three members of
the House of Representatives who are here today speaking from the
Agriculture Committee in favor of this legislation than probably any
group of Members of Congress since I came to Congress.
But I rise today in opposition to this legislation for the same
reason that I did nearly a month and a half ago. This bill will do
little, if anything, to bring down the price of energy. In fact,
certain provisions of this bill could likely lead to less market
transparency and increased market volatility. Unlike one and a half
months ago, however, Congress has some data provided by the CFTC. The
data shows that the commodity markets were not broken, and while crude
oil went from $96 per barrel to $146 per barrel over the first 6 months
of this year, the aggregate long position of index traders and swap
dealers fell by 11 percent or 45,000 contracts.
As I stated back in July, I favor changes in the Commodities Exchange
Act that will improve market transparency, oversight and enforcement
activities. In fact, in working with the CFTC and others, I have
introduced legislation, H.R. 6921, that I believe will enhance
transparency in the futures markets without disrupting the markets.
Based on consensus recommendations of the CFTC, the bill that I have
introduced codifies the recommendations of the commission that they
suggested would benefit from codification that were presented to our
committee. That hearing has been referenced. It just occurred on
September 11.
What my bill does not do and what this bill does, this bill on the
House floor, is redefine a bona fide hedging transaction to prohibit
the ability of legitimate market participants from utilizing the
market, push domestic traders overseas where CFTC will have little
oversight and contains cumbersome and contradictory requirements that
will overburden the CFTC staff and lead to little useful information.
In July I said this bill was put together quickly, in fact I thought
too quickly and went too far. The information provided by the CFTC at
our hearing on September 11 in my opinion confirmed that fact. Given
that this bill was defeated on suspension and it includes provisions
that go beyond the scope of the commission's recommendations, one would
think that we would now take that bill back to committee and craft a
more precise product rather than bringing the same product to the House
floor. We asked for more information, we got more information, and yet
the crux of this legislation didn't change.
A well-crafted bill needs to provide additional transparency,
oversight authority, and not exclude legitimate market participants or
reduce market liquidity. One of the problems of this legislation, as I
said, is it will reduce market transparency. This is because certain
provisions, like the provision dealing with the foreign boards of trade
that seek direct access to U.S. markets, will push traders to foreign
markets. Rather than giving the CFTC a better picture of markets to
prevent fraud and manipulation, it will actually restrict the ability
of the CFTC to see that market.
In addition, the bill errantly attempts to define a ``bona fide
hedging transaction.'' In its current form, section 8 will exclude
legitimate commercial market participants from properly hedging risk.
This will cause immediate disruption of the markets as the legitimate
market participants are forced out of the market. It will reduce market
liquidity and increase price volatility.
I am also concerned with provisions in this bill that require routine
reporting and potential use of position limits in over-the-counter
transactions that are ``fungible.'' ``Fungible'' is not defined and
suggests that a significant amount of CFTC transactions would be
implicated by this section.
I am especially concerned about the authority of section 14 which
gives the CFTC the opportunity to impose position limits on over-the-
counter trades. This is a problem because the OTC trades are
nonstandardized contracts. Unlike standardized contracts traded on
designated contract markets, OTC trades are often tailored to manage a
specific company's risk in a market. And unlike a contract traded on a
designated contract market, an OTC trade is made with a single
counterparty. On a designated contract market, unlike many OTC trades,
a clearinghouse is the counterparty to every contract and can
facilitate liquidation of a position. In an OTC trade, if one party is
in violation of a position limit and the other is not, liquidation of a
position will adversely affect the party that is in compliance, again
causing greater market volatility and increased cash prices of a
commodity because of a disruption in commercial market participant's
risk management strategy.
I think this bill has some technical problems that will harm price
discovery and risk management strategies. It should be returned to
committee where we address, again, the root cause of high energy
prices.
The goal must be to do no harm, but this goal is not met in this
legislation.
General Leave
Mr. PETERSON of Minnesota. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days in which to revise and extend
their remarks and include extraneous material on H.R. 6604.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Minnesota?
There was no objection.
Mr. PETERSON of Minnesota. Mr. Speaker, we saw the information, and
some of us became convinced all the more that the bill we have put on
the floor is the appropriate bill.
I now yield 3 minutes to the gentleman from Maryland (Mr. Van
Hollen), one of our leaders and a leader on this issue.
Mr. VAN HOLLEN. Mr. Speaker, I rise in strong support of this
legislation that will bring greater transparency and greater
accountability to the commodity futures markets, and I want to commend
committee Chairman Peterson, Ranking Member Goodlatte, and subcommittee
Chairman Bob Etheridge for coming together with the committee and
others to pass and develop this bipartisan legislation which I hope we
will all pass. I also want to thank and commend Rosa DeLauro, John
Larson, and Bart Stupak for their leadership on this issue.
If there is one thing we should have all learned over the last couple
weeks given the turmoil in our financial markets, it is that we need
greater transparency and greater accountability. These are not just
abstract good government ideals, these are tools that people need for
responsible regulation of our financial markets, including our futures
markets. They are absolutely necessary if we want to make sure that the
CFTC and our regulators have the information that they need, especially
when you are talking about the great impact that these things can have
on our economy, as we are seeing every day on Wall Street.
The old adage that ``what you don't know won't hurt you'' is no
longer a tenable position for this Congress. We need the information.
With this legislation, for the first time, we will shine a light on the
so-called dark markets and empower the CFTC to take corrective action
where they find problems.
It provides for stronger position limits for energy commodities
traded on regulated exchanges while ensuring that our futures markets
continue to have the liquidity they need to function properly. No one
has said there is not an important role for our futures markets, it is
making sure that they are regulated properly to protect consumers and
investors.
This bill will also rein in excessive speculation by ensuring that
hedging exemptions are granted only to commercial market participants
seeking to
[[Page H8423]]
hedge their actual physical risk, rather than to speculators facing
only financial risk.
Mr. Moran mentioned the recent report by the CFTC, and I would point
out there was a recommendation they made which really follows a
provision that we make in this bill, and that is to make sure that we,
with respect to the commodity swap dealers and index traders, that we
remove the swap dealers from the commercial category of market
participants. We do that in this bill.
Additionally, in recognition of the numerous instances where the same
CFTC staff report found traders effectively circumventing position
limits they would ordinarily face on regulated exchanges by going to
the over-the-counter market, in some cases exceeding those established
positions by substantial amounts, the CFTC report proposes requiring
swap dealers to certify that they are noncommercial clients that do not
exceed established position limits with their over-the-counter trades.
We do that here.
Mr. Speaker, we have a fundamental choice here. It is a choice
between transparency and keeping things hidden behind the curtain. It
is a choice between whether we want our futures markets to reflect the
fundamentals of supply and demand, or whether we want our futures
markets to be continuously whipsawed by massive in-flows of speculative
money.
We have a job to do. We have seen in recent days and weeks on Wall
Street the effects of taking our eye off the ball and not providing
regulators with the tools they need and them not following through with
what they have. Let's make sure that we don't make that mistake in the
commodities futures trading market. We have already seen the impact of
not giving those complete tools. Let's make sure that those folks have
what they need and are empowered to do the job on behalf of the
American public. I thank the committee for their work on this.
Mr. GOODLATTE. Mr. Speaker, I am pleased to recognize the gentleman
from Connecticut (Mr. Shays) for such time as he may consume.
Mr. SHAYS. Mr. Speaker, I thank my colleague for giving me this time
to speak on what I think is important legislation.
I believe the Commodity Futures Trading Commission, the CFTC, must
investigate speculation in the energy futures market and respond to any
manipulation in price distortions.
While opinion is not unanimous, I believe the increased positions of
institutional investors, such as pension funds and endowments and
sovereign funds in this market are contributing to the escalating price
of oil at an alarming rate. The CFTC should level the playing field and
apply position limits to the institutional investors, such as the New
York Mercantile Exchange has required of its members for years.
Investigating market manipulation will give us temporary relief, but
the high gas prices of today compel us to confront the inconvenient
truth of our energy needs in other ways. We clearly need to increase
domestic energy production, including solar, wind, geothermal, biofuel,
nuclear power; and yes, oil and natural gas. It is truly insane to
transfer $700 billion of our wealth, our income, to other nations, most
of whom are, frankly, unfriendly to us.
Alongside increased conservation and energy efficiency, I believe we
must drill for oil and natural gas miles off our coast in an
environmentally responsible way, and build new nuclear power plants.
Bringing more supply online will send a strong signal to the market and
help bring down high energy costs even in the short term. The rest of
the world needs to know that the United States is serious about energy.
Mr. ETHERIDGE. We have just a couple more speakers we are waiting on,
but in the meantime I would take this opportunity, Mr. Speaker, to just
share with my colleagues that this bill has substantial support from
the Air Transportation Association, the Air Line Pilots Association,
Tyson Foods, Sierra Club, Environmental America, League of Conservation
Voters, the Wilderness Society, National Chicken Council, National Corn
Growers Association, National Cotton Council, National Farmer Unions,
National Grains, National Milk Producers Federation, National Sorghum
Producers, Southern Cotton Shippers Association, Southern Peanut
Farmers Association, Southwest Council of Agriculture, Texas Cotton
Association, United Egg Producers, United States Cattlemen Association,
U.S. Rice Producers Association, U.S. Rice Federation, Western Cotton
Shippers, Western Peanut Growers Association, Women Involved in Farm
Economics, the American Agriculture Movement, American Association of
Crop Insurance, American Corn Growers, American Cotton Shippers, the
Atlantic Cotton Association, the Minnesota Corn Growers Association,
National Association of State Departments of Agriculture, and I think
at the end of the day, Mr. Speaker, the American people.
{time} 1300
The American people only ask of us in this body to do what's right
and be fair. I think they want markets to work. They want them to work
fairly because they don't want them working against us. Today we have
an opportunity to make these markets, once again, work for the American
people.
We heard testimony in our committee of grain elevators who were
caught in the wedge. When the prices ran so high, they were unable to
get financing to be able to assist farmers. When you're looking at
finding a real price through the futures, that's what they're supposed
to do. But you can't do it when the markets aren't working the way they
should work.
Mr. Speaker, if the gentleman from Virginia has any other speakers, I
would be willing for him to call his speakers while I wait for a couple
of folks here.
Mr. GOODLATTE. Will the gentleman yield?
Mr. ETHERIDGE. I would be happy to yield.
Mr. GOODLATTE. I have only myself to close. If the gentleman is
thinking that we're close to closing, then I am prepared to do that.
Mr. ETHERIDGE. I am prepared to close, unless we get one more
speaker. If you will go ahead and proceed, and then as soon as our
speaker comes, I will let them do it and I'll close.
I reserve the balance of my time.
Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may
consume.
As I say, I appreciate working with the gentleman from North Carolina
and the gentleman from Minnesota on this legislation.
I think this legislation gives to the Commodity Futures Trading
Commission the necessary tools for appropriate oversight and
enforcement. I think this is a light touch. I do not think that it
interferes in the marketplace.
And I think that the evidence that was brought forth by the recent
report submitted by the CFTC is very strong evidence that the
marketplace is working very well, but it needs constant vigilance. We
can see that with the difficulties that are being experienced around
the country and around the world in other types of markets.
Certainly in the mortgage area and other financial areas, the risk of
not giving the regulatory agencies the appropriate authority to do
oversight and to act is certainly a grave concern. But I think we are
doing that in this area. I think the CFTC is doing that in this area,
and I think this legislation will help to enhance their ability to
remain vigilant in making sure that this market operates properly; that
there is not excessive speculation; that there is not manipulation of
this marketplace.
Having said all of that, I will say, once again, that this is not the
issue that we should be debating here today. I support this
legislation. I will vote for it. But we deserve an opportunity to vote
on what the American people want. And poll after poll have shown that
they want to see a real energy act. They know that the problem with the
high price of energy is the lack of supply. They know the problem with
the disruption of our energy supply that just occurred due to Hurricane
Ike is because we have not enough refinery capacity in this country,
and that it is not distributed around the United States.
The American Energy Act provides for using abandoned U.S. military
bases to build new refineries. We haven't built a new one in more than
30 years. And the bill that was brought to the floor of the House by
the Democratic leadership earlier this week did absolutely nothing in
that area.
[[Page H8424]]
We're now importing refined petroleum products, paying a higher
price. We're seeing more and more billions of dollars going out of this
country every week, costing America jobs, harming our economy because
we are so dependent upon foreign oil, at the same time that we have
huge resources, not just oil, but natural gas, coal, the potential of
new nuclear power, as well as a whole array of alternative sources of
energy like wind and solar and geothermal and biomass and hydrogen. All
of these things are available to us if we will take the leadership here
in this Congress and get the American Government out of the way of
developing these new sources of energy. But, instead of doing that, we
bring a no drill, no energy bill to the floor that was clearly a sham,
a hoax on the American people.
We have abundant resources in oil. The estimates are that we could be
producing 3 to 4 million barrels of oil from the Outer Continental
Shelf. The bill that was brought forth on the floor of the House shuts
off 80 to 90 percent of that oil from access to the marketplace because
they don't allow drilling.
I introduced legislation, as have other people, to allow drilling off
the coast of our respective States. I've introduced one for Virginia
that has strong support in our delegation. And yet the legislation that
was brought forward earlier this week does not provide any royalties
for the States. So our Governor, Democratic Governor of the State has
already indicated that if the State can't benefit from deriving
royalties that can be used for developing better transportation
systems, alternative forms of energy, public education and so on, if it
can't be used for that, he's not interested in participating. So that
bill was meaningless. It was a sham.
We need to bring forth real legislation like the American Energy Act
that shares those royalties with the States so that they're able to do
that.
It's estimated that we could have a million barrels of oil a day
coming down the pipeline that already exists in Canada, if we would
drill for oil in the Arctic National Wildlife Refuge, an area the size
of the State of South Carolina; and the area that would be utilized for
drilling for oil is about 2,000 acres, like a postage stamp on a
football field. That's how much of this land of this huge area would be
utilized. The people of Alaska support it. The Governor of Alaska,
Sarah Palin, supports it.
Are we doing that?
No. Wouldn't even bring it up. Wouldn't bring up a bill that we could
even offer an amendment to to allow for that to take place.
Meanwhile, the oil that comes from the Prudhoe Bay area is declining.
It was 2.1 million barrels a day at its peak. It's now down to 700,000
barrels a day. We're told that when it gets down to 300,000 barrels a
day, we'll have to close down the pipeline because it's not
economically efficient to transport the oil.
At the same time we could be adding a million barrels of oil a day
for an estimated 30 years, we're at risk of losing not just that
million, but an additional 300,000 barrels of oil a day, about 6
percent of the consumption in this country every day for 30 years.
And then look at the oil shale available in the Rocky Mountain
States. Here we have an estimated somewhere between 800 billion and 2
trillion barrels of oil that can be extracted from that oil shale, much
like the Canadians are extracting oil from tar sands in Canada. So
while they're doing that in Canada, this Congress last year passed
legislation that prohibits the United States Government from buying
that oil from Canada.
And then in terms of our own reserves which are huge, to just give
you an idea, since the first oil well was drilled in Pennsylvania in
1859, until today, the entire world has used about 1 trillion barrels
of oil. And yet we're leaving untapped, because legislation was not
brought forward to address it, untapped, 800 billion to 2 trillion
barrels of oil available to us in that oil shale deposits in the Rocky
Mountain States. It's a shame, Mr. Speaker, that we're not doing that
today.
Coal reserves. We have more coal reserves than any other nation in
the world. New technology exists to convert it to liquid that can be
used for transportation purposes. We have new technology that is
cleaner burning coal, and yet we're not doing anything in the
legislation that was offered here earlier this week to tap into that.
Nuclear power. It's been correctly noted here today that while the
United States still derives 20 percent of its electricity from nuclear
power, France today gets close to 80 percent of its electricity from
nuclear power. They continue to develop that technology. We haven't,
for 30 years. We haven't for 30 years built a single new nuclear power
plant. There are now some on the drawing boards, thanks to legislation
that the Congress adopted 2 years ago to incentivize that.
But because of regulations that stand in the way, we will not have
the opportunity to see a single kilowatt hour of electricity generated
from those new nuclear power plants for at least 10 years. Why?
Because this Democratic leadership would not bring up legislation
like the American Energy Act that enables that.
The same thing with the development of alternative fuels like wind
and solar and geothermal and hydrogen and biomass. What do they do to
incentivize? They increase taxes. That's the last thing we need right
now when the American economy is in the condition that it's in, to have
tax increases to pay for something that we could pay for with the
royalties that would come from drilling offshore, from drilling in
Alaska, from tapping into that oil shale, from drilling for natural gas
where the largest deposit known in the world is in the Gulf of Mexico,
and yet we can't have access to it.
There's natural gas all down the eastern coast of the United States.
We can't have access to that. Why? Because they won't share the
royalties with the States and it won't happen. And they've kept some of
these areas off limits in their legislation as well.
This is a travesty, Mr. Speaker. We should be having the American
Energy Act on the floor today. That's what the American people want.
That's what will create millions of American jobs in creating this new
energy, and in revitalizing our industry and revitalizing manufacturing
and strengthening agricultural production in this country and
strengthening all of American commerce, making us more competitive with
the rest of the world if we would simply seek to be energy independent,
which we could accomplish in 10 or 15 years if the leadership of this
Congress would simply bring forward legislation that would enable us to
empower America to have real energy independence and real American jobs
and save this economy.
Mr. Speaker, I reserve the balance of my time.
Mr. ETHERIDGE. Mr. Speaker, I ask for a time check.
The SPEAKER pro tempore. The gentleman has 14\1/2\ minutes remaining.
Mr. ETHERIDGE. Mr. Speaker, I yield 4 minutes to the gentlelady from
Connecticut, someone who has worked hard in this area, Representative
DeLauro.
Ms. DeLAURO. Mr. Speaker, our economy is struggling. We know the
price at the gas pump is killing middle class families trying to make
ends meet, farmers harvesting their crops, truckers traveling our
highways.
I rise in support of this bill. It's an important first step to
address the concerns of millions of Americans who fear something more
than just supply and demand is at play and our energy markets are not
operating as they should.
I want to commend Chairman Peterson for being so open and available
as he worked with myself and my colleagues, Congressmen Stupak, Larson
and Van Hollen throughout the summer to make this bill a priority and
to bring transparency back to our futures market.
This is a complex issue. Our responsibility as a Congress and the
Nation is serious, however. Excessive speculation occurs when the
market price for a given commodity no longer accurately reflects the
forces of supply and demand. Today we can point to loopholes and
exemptions that have allowed interested parties with special access to
information to improperly speculate on the price of energy without
oversight. That excessive speculation has contributed to rising gas
prices.
This bill begins to confront that speculation, providing the
Commodity
[[Page H8425]]
Futures Trading Commission new authority to gather information from
currently unregulated over-the-counter energy transactions. And if it
finds improper speculation is driving up the prices, the agency has the
authority then to act to reduce the speculation. This is new, it's long
overdue authority that will shed light on once hidden markets.
The bill also makes sure we know who is participating in the market
to what extent by requiring detailed trading information from index
traders and swap dealers. It works to make sure hedge exemptions are
not exploited, making clear only legitimate hedgers may use them.
This vote follows the report last week from the Commodity Futures
Trading Commission which suggested the need for a legislative fix to
restore balance to the energy marketplace, recommending a significant
increase in the transparency of energy markets, more careful analysis
of data, and even a reclassification of swap dealers.
A day earlier, hedge fund managers Michael Masters and Adam White
released their own report pointing to institutional investors pouring
money into energy futures and contributing to rising prices. Later, by
pulling those funds out of the market, the rush for the exits helped
bring the prices down. And this decline may continue, according to
yesterday's Wall Street Journal which reported, and I quote,
``Evaporating access to credit, fears of an economic washout are taking
a toll on oil prices, forcing speculators using borrowed money out of
the market.''
Whether prices are up or down, the bottom line that growing
volatility, a growing disconnect between where the market is and where
supply and demand would normally put it.
We have a responsibility to protect consumers from excessive
speculation. We can no longer allow random speculators free rein to
play these games while our entire economy hangs in the balance. It is
time to empower the Commodity Futures Trading Commission to do its
regulatory job and provide the kind of relief that we need to get
Americans who are in great need in this faltering economy, we need to
provide relief to middle class Americans and American taxpayers, and
not provide relief or profit for those who are already taking the
profits and making a fortune with them.
Let's pass this bill.
{time} 1315
Mr. GOODLATTE. Mr. Speaker, I am pleased to yield 3 minutes to the
gentleman from Ohio (Mr. LaTourette).
Mr. LaTOURETTE. Thank you for yielding the time.
Congratulations to you, Mr. Goodlatte and Chairman Peterson, for this
bill. I voted for it last time, and I will vote for it again today.
But the difficulty is that we find ourselves with about 5 days left
in this 110th Congress. There was a famous emperor of Rome, Nero, who
fiddled while Rome burned. I just want to talk a little bit about what
we've been doing for 2 years since gas prices went up and the
Democratic majority took over in January.
When they took over in January, gas was at $2.20 a gallon which was
high, but people still said, ``Okay. I can still get by on that.'' But
Congress, rather than dealing with what was going to begin to happen,
on that day, January 29, we congratulated the University of California,
Santa Barbara soccer team for doing swell stuff. I like soccer. I bet
everybody that's on that team, their moms and dads, are proud of them.
But when gas is going up, what are we doing that for?
Next one, February 6, it's gone up 60 cents a gallon. February 6,
2008, we declare National Passport Month here on the House floor.
That's the most important issue in America, apparently, to the
majority.
It passed $3 for the first time in my lifetime, and we're commending
another soccer team, the Houston Dynamos. I bet they're a great soccer
team, too, but gas is $3. The most important issue that we're debating
on the floor of the House of Representatives is congratulating the
Houston Dynamos.
Then $3.77. That should have gotten our attention. So what did they
debate? Did we debate this bill or an energy policy? No. We declared
National Train Day on that particular day with gas at $3.77.
Goes up on May 20, $3.84. On that particular day, I gotta tell you,
we passed--and I don't even know what these are--Great Cats and Rare
Canids Day. Maybe, Mr. Speaker, you know what a canid is. Somebody told
me maybe it's a dog. But we're not debating energy. Our constituents
are paying $3.84 a gallon for the first time in their lives, and we're
recognizing great cats and canids.
Well, surely at $4 a gallon we have America's attention, the mighty
House of Representatives, the new majority is going to debate energy.
Nope. We declare the International Year of Sanitation.
I gotta tell you, Mr. Speaker, then it hits $4.14 on June 17, 2008. I
bet we're going to debate energy now. I bet we're going to do this
bill. No. We did the Monkey Safety Act. Folks, I love monkeys. They're
cute, they're cuddly, they're everything else; but for crying out loud,
when it costs $80 to fill up your gas tank, the most important issue in
the United States of America is not the Monkey Safety Act.
It's time for this majority to quit monkeying around with our gas
prices. It's no coincidence, Mr. Speaker, that at the same time we're
doing the Monkey Safety Act, unemployment in this country goes from a
little over 4\1/2\ percent to where it is today, over 6 percent.
Quit fooling around. Quit horsing around. Some people say, Well, this
chart doesn't go far enough. We also did some other important things
after we got back. We declared National Watermelon Month, and we also
indicated that we were going to recognize Bo Diddley. He's a great guy.
I'm all for honoring him. But it's time that we tell our friends on the
other side, You haven't done diddley about oil and gas.
Mr. PETERSON of Minnesota. Mr. Speaker, I yield myself such time as I
may consume.
As I said when we first considered this bill in July, this is a great
bipartisan effort that Mr. Goodlatte and I have worked on. This bill
addresses the realization that the trading volume and the futures
market for physical commodities has increased dramatically in recent
years. This increase includes vast amounts of capital from parties that
are not traditional futures market participants, and this has been my
concern, these participants, such as the index funds, pension funds,
and some hedge funds.
The presence of this additional capital has raised concerns in our
committee that the resulting futures market prices may not accurately
represent the forces of supply and demand, nor may they fundamentally
support at the local selling points where those in the producing and
selling of the commodities are doing business.
Mr. Speaker, this debate is more than just the presence of
speculators in the futures market. As I said on the floor in July, this
lack of convergence--and this is one of the big problems that I am
concerned about--the lack of convergence that we're getting in some of
these agricultural markets where we have a $2.40 difference between the
futures price and the actual cash price of wheat in some of our
markets, these are the things that really concerns us on the committee.
So we have put forward transparency so that we know what's going on
in these markets, and we're giving the authority for some position
limits on these nontraditional investments that were created that
really have nothing to do with the underlying commodity market. And in
my opinion, the more I learn about this, I think this has some effect
on why we're not getting convergence in those markets.
We believe this is a modest step that addresses the concerns that
have been identified to the committee, and we're going to continue to
work on this. We're going to continue to get information from the CFTC
and other sources as to what is going on in these markets, and we will
see how this progresses through this Congress.
But I can tell people if this is not resolved in this Congress, we
will take this up in the next Congress to address these issues.
With that, Mr. Speaker, I will reserve the balance of my time.
Mr. GOODLATTE. Mr. Speaker, I have no further speakers. I will
reserve the balance of my time.
Mr. PETERSON of Minnesota. Mr. Speaker, I am now pleased to recognize
[[Page H8426]]
the vice chairman of our caucus and the leader on this issue, the
gentleman from Connecticut (Mr. Larson) for 2 minutes.
Mr. LARSON of Connecticut. Thank you, Mr. Chairman.
I want to commend Chairman Peterson for the extraordinary work that
he's done in this area and the sensitive manner in which he's
approached a very oftentimes complex issue.
I'm especially pleased that the Ag Committee adopted a provision that
addressed the Inspector General and elevating that Inspector General to
independent status. I understand why it had to be removed. I'm pleased,
though, that Mr. Waxman has indicated that we intend to bring the bill
to the floor under suspension because of the bipartisan agreement that,
especially in this day and age, the need to make sure that we have
referees on the field in lieu of everything that's happening to
guarantee that we don't have the foxes guarding the henhouse but that
we provide an opportunity for independent overview.
Lastly, I would like to close by saying this. Again, my thanks to the
committee and the chairman. But it's voices outside this Chamber; and,
specifically, I want to credit John Mitchell, former Republican mayor
of South Windsor, Connecticut, for coming to me with the independent
petroleum dealers talking about actually what happens to people because
of speculation, talking about women turning over their entire Social
Security check to pay for their home heating oil and the system being
broken and that the issues of supply and demand not working.
These came from main street businesses who aren't in the Beltway, who
care deeply about the citizens they serve and represent. I want to
commend them and this committee for its sensitivity in passing a
comprehensive step--not a silver bullet, not a panacea--but an
appropriate step towards restoring what we need in terms of the
oversight and review that must go on to restore integrity in the
marketplace.
I thank the chairman again for the opportunity.
Mr. GOODLATTE. Mr. Speaker, I am prepared to close if the gentleman
from Minnesota is.
I would again thank the gentleman for his hard work on this
legislation. This is not legislation that this committee has in any way
taken lightly over the past several years. We've conducted oversight
into the activities of the Commodity Futures Trading Commission and the
futures markets. We've done it in a bipartisan way. We have watched
closely to make sure that the commission has the resources it needs to
do its job.
We found some areas where we think it could use some additional help
in terms of personnel, in terms of the authority to gather information,
and in a few instances in giving them additional authority to act if
they find that there are indicators in the marketplace that it's not
functioning properly, that there is excessive speculation and that
there is manipulation; and this legislation does that, and I support
that. Although I do have some reservations about the legislation, I
think it is legislation that deserves to be passed into law.
However, I will say it once again that this is not the legislation
that the American people want and expect to see us debating on the
floor of the House today. They want real energy legislation, not the
sham bill that was offered 2 days ago, but legislation that would allow
for real drilling for American oil and natural gas and would allow for
utilizing new clean-burning coal technologies, that would expand our
nuclear power generation of electricity, that would expand our
alternative forms of energy.
And as we move in that direction, utilizing the resources that are
created by producing American energy to accomplish more in the areas of
wind and solar and geothermal and hydrogen and biomass and tidal energy
production and a whole array of others, that we are simply neglecting
because this Congress, the Democratic leadership, refuses to bring to
the floor for a vote the American Energy Act, which would command very,
very overwhelming bipartisan support if it were brought to the floor
for a vote.
But it's more than just what consumers are paying at the gas pump.
It's more than what they're worried about having to pay to fill their
tanks with oil or kerosene to heat their homes this winter or their
natural gas bills or their electric bills that are going up and up.
It's more than that. It's about the American economy, and it's about
American jobs.
This legislation would create millions of American jobs, not only in
energy production but also in manufacturing and agriculture, in a whole
host of areas that would make America more confident, would make
America more competitive with the rest of the world. We need this
legislation. We need it badly. It will be a shame, Mr. Speaker, if we
leave town without passing the American Energy Act.
I yield back the balance of my time.
Mr. PETERSON of Minnesota. Mr. Speaker, again I want to thank my good
friend, Mr. Goodlatte, for the great work he did with us on this bill.
Like any bill, it's not perfect but it's, I think, a step in the right
direction. We take very seriously our responsibility and the
jurisdiction that we have in making sure that the CFTC is doing the
proper oversight, the proper job, and that we're getting convergence of
these markets so that they work for people that need them on a day-to-
day basis.
This is almost the exact same bill that received 275 votes on a
bipartisan basis on July 30. At one time we were up to 291 votes. At
one time we had two-thirds, but it eroded away. I'm confident today
that we will have the support to move this bill through the House, and
hopefully our friends in the other body will move because I believe we
have uncovered some things that need to be addressed in legislation,
and we are doing that in this legislation.
With that, Mr. Speaker, I ask everybody to support the bill.
Mr. DINGELL. Mr. Speaker, H.R. 6604, the ``Commodity Markets
Transparency and Accountability Act'' will help restore integrity to
commodity futures markets. Lax regulation has allowed prices to become
divorced from fundamental supply and demand. Lax regulation has allowed
speculative bubbles to form in food and energy prices. And lax
regulation has caused billions of dollars in damage to businesses and
consumers.
Oil prices doubled from $72 per barrel on July 11, 2007, to $145 on
July 11, 2008, even though supply and demand was fundamentally
unchanged. While excess capacity was reduced and the dollar had
dropped, there were no oil shortages, and inventories were ample.
Fundamentals alone do not explain a 100 percent price increase.
What has changed over the past few years is that oil has been
transformed from a basic commodity into a financial asset, and traded
for its speculative value by institutional investors who want to
diversify portfolios, hedge the dollar, or make a fast buck. The
Washington Post reports that speculators control as much as 81 percent
of the futures market, up from an estimated 37 percent in 2000.
Investment banks and futures exchanges claim that institutional
investors are providing badly needed liquidity to the futures market,
that futures prices reflect supply and demand, and Congress should not
turn them into a scapegoat.
Wall Street's commodity brokers told their investors privately,
however, that supply and demand did not explain the doubling of oil
prices.
Just yesterday, Michael Cembalest, J.P. Morgan's global chief
investment officer, wrote:
the Peak Oil crowd promoting crude oil . . . at $200 should
concede what we've been saying: there was an enormous amount
of speculation pent up in energy markets (e.g., an 8-fold
increase in bank OTC oil derivative exposure in the last 3
years), and it wasn't just the supply-demand equation. Oil
will rise again, and we need solutions to energy supplies,
but $140 in July 2008 was ridiculous.
Yet on the same day, Blythe Masters, Managing Director and Head of
Global Commodities for J.P. Morgan submitted testimony before the
Senate Energy Committee stating:
we fundamentally believe that high energy prices are a
result of supply and demand, not excessive speculation.
Lehman Brothers told its investors in May that it is seeing ``the
classic ingredients of an asset bubble'' in oil. It linked it to an
inflow of $90 billion in commodity index investments.
The cost to our economy from excessive speculation is destructive.
For every penny increase in the price of a gallon of gasoline,
consumer costs jump by $1 billion a year, according to
Moody'sEconomy.com. The run-up since last September has added nearly $1
per gallon, costing consumers $100 billion absorbing the
[[Page H8427]]
economic stimulus package enacted earlier this year.
The Industrial Energy Consumers indicate that natural gas consumers
paid an extra $40.4 billion this year already. They support this bill.
The airlines have lost 36,000 jobs and retired 746 planes this year,
while eliminating 635 routes, due to jet fuel prices. They support this
bill.
Petroleum marketers have seen oil prices come unhinged from supply
and demand. They support this bill.
Some institutional investors are now starting to unwind their massive
positions. Nearly 127 million barrels of oil futures valued at $40
billion were liquidated by institutional investors between July 15,
2008, and September 2, 2008, according to a recent analysis of the
CFTC's public data. Oil futures prices plunged $53 per barrel to $92 in
only two months, yet fundamental supply and demand was not changed
materially in the past 60 days.
What did change in mid July is that Congress in both Houses took up
legislation to rein in excessive speculation--particularly in the
unregulated dark markets--which may have spurred some speculators to
get out early.
The central issue is whether pension funds, endowments, and sovereign
wealth funds should be allowed to hijack commodity markets and set oil
and food prices, or whether consumers and producers should set prices
based on supply and demand. If speculators can drive prices back up to
$140, they can really turn the lights out on the U.S. economy.
Some may argue that given the crisis in financial markets, this is
not the time to start regulating Wall Street. Beginning with the repeal
of the Glass-Steagall Act, however, deregulation has allowed
recklessness to compromise our entire financial system.
The recent collapse of Fannie Mae, Freddie Mac, Bear Stearns, AIG,
and Lehman Brothers are a product of lax regulation which has led to
systemic risk for the entire financial system.
This legislation puts a cop on the beat and codifies some of the
transparency measures recently recommended by the CFTC. I commend
Chairman Peterson and Etheridge, as well as Representatives Stupak, Van
Hollen, DeLauro, and Larson for their leadership on forging this bill
and urge its passage.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in today in support of
the H.R. 6604, the Commodity Markets Transparency and Accountability
Act of 2008, introduced by Congressman Peterson of Minnesota.
Background on H.R. 6604
This legislation will bring greater transparency to commodity and
futures markets. It will improve price discovery and risk mitigation
functions working to benefit producers, processors and consumers. This
bill toughens position limits on oil and other futures markets as a way
to prevent potential price distortions caused by excessive speculative
trading. H.R. 6604 extends Commodity Futures Trading Commission, CFTC,
oversight to previously exempt over-the-counter markets, and it calls
for new full-time CFTC staff to improve enforcement, to prevent
manipulation, and to prosecute fraud.
Closes the ``London Loophole''--Foreign boards of trade that offer
electronic access to U.S. traders for energy or agricultural
commodities settled by physical delivery in the U.S. are not currently
subjected by statute to the same speculative position limits traders
are subject to on domestic exchanges.
H.R. 6604 requires foreign boards of trade to adopt speculative
position limits on these contracts similar to exchanges under U.S.
regulation and to share large trader reporting data with the CFTC.
Foreign boards of trade must have the authority to require traders to
limit, reduce, or liquidate a position in order to prevent excessive
speculation or price distortion.
Increases Transparency in Dark Markets--H.R. 6604 requires the CFTC
to get a complete picture of the swaps markets by defining and
classifying index traders and swap dealers, and subjecting them to
strict reporting and recordkeeping requirements. Position reporting
will become mandatory for over-the-counter trading in agricultural and
energy contracts, similar to on-exchange contracts.
The commission will also disaggregate and publicly provide data to
examine the true extent of index and other passive fund participation
in futures markets for energy and agricultural products.
Speculative Position Limits--Currently, speculative position limits
are set by regulated exchanges for energy contracts and the CFTC for
some agricultural futures contracts. H.R. 6604 requires the CFTC to set
position limits for all energy and agricultural futures markets. This
bill will limit traders' ability to amass huge positions that would
otherwise allow them to distort the market.
Restrict Hedge Exemptions to Bona Fide Hedgers--H.R. 6604 will reform
the process for granting hedge exemptions from position limits.
Exemptions would be available only for bona fide market participants
who actually engage in the commercial use, production, or distribution
of the physical commodity. While position limits are currently granted
to bona-fide hedgers, who are using the futures markets to offset their
price risk, the CFTC has also granted hedge exemptions to swaps dealers
who are not taking delivery of the physical commodity. This loophole
has allowed institutional investors to take, through a series of
trades, larger positions, than they would be able to take if they
traded on the exchanges directly.
Strengthens CFTC Enforcement Resources--The CFTC was created in 1974
as the chief regulator of futures and options markets. It does this
with a full-time enforcement staff that monitors large trader
positions, prevents scams, and prosecutes and prevents market
manipulation. Trading volume has increased 8,000 percent since the CFTC
was created, but the agency is operating at its lowest staffing levels
since 1974. H.R. 6604 calls for a minimum of 100 full-time CFTC
employees to enforce manipulation and fraud in the commodities markets.
Conclusion
Mr. Speaker I urge my colleagues on both sides of the aisle to
support H.R. 6604. I fully support Representative Peterson and the
Agriculture Committee.
Mr. PETERSON of Minnesota. I yield back the balance of my time.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 1449, the previous question is ordered
on the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
{time} 1330
Motion to Recommit
Mr. MORAN of Kansas. Mr. Speaker, I have a motion to recommit at the
desk.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. MORAN of Kansas. In its current form, yes, sir.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Moran of Kansas moves to recommit the bill H.R. 6604 to
the Committee on Agriculture with instructions to report the
bill back to the House promptly with the following amendment:
At the end of the bill, add the following:
SEC. 16. EFFECTIVE DATE.
The provisions in this bill shall become effective only
after the Commodity Futures Trading Commission determines
that the imposition of any position limits that would be
authorized by this Act or the amendments made by this Act for
any agreement, contract or transaction involving a pension
fund would not result in an equity loss for any party to an
agreement, contract or transaction as a direct result of the
imposition of any such position limits.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Kansas is recognized for 5 minutes in support of his motion.
Mr. MORAN of Kansas. Mr. Speaker, as I indicated in my earlier
comments here on the House floor concerning this legislation, I think
our goal has been to make certain that we do no harm, and I have
concerns that we will do harm with the legislation that's before us.
And by harm, I don't mean harm to the industry, not speculators, not
swap dealers, but harm to the consumers, harm to the American people,
harm to the United States economy.
One of those concerns we have is concern with those who have invested
their retirement in pension funds. And so this motion to recommit
simply is a requirement that CFTC, before they impose those position
limitations, would make certain, would certify that the imposition of
those payment limitations would not reduce the value of a person's
pension fund.
The effort here is to make certain that no harm is caused, a goal I'm
sure we all share, and in particular, make certain that we know what we
are doing does not damage the value of the American people's retirement
accounts.
Mr. Speaker, I yield to the gentleman from Virginia.
Mr. GOODLATTE. I thank the gentleman for yielding, and I would join
him in supporting this motion to recommit because it would help to
assure a great many Members on our side of the aisle that the concerns
raised about the legislation that somehow
[[Page H8428]]
this might prove to be disruptive of the markets would indeed not
occur. It would simply require that the CFTC examine that and certify
that they do not believe that that would be the case, and then the
legislation could proceed to be fully implemented, and I think this is
a wise consideration.
The evidence that we have before us from the findings of a recent
CFTC report is that these markets are functioning well. I think this
legislation will enable them to continue to function well, but it does
not, I think, in any way hurt and could, in fact, indeed enhance the
operation of CFTC for them to require to make this investigation and
make this certification that people, millions, tens of millions of
Americans whose pension funds may include some investment in commodity
futures markets will be unaffected by the legislation in terms of
empowering the CFTC to conduct further oversight and to take further
action as is allowed by the legislation.
Again, I would point out that the best thing we can do to secure the
pension funds of Americans would be to create more energy in this
country that would meet the supply demands that are necessary, would
help to hold down the cost of oil and natural gas and electricity and
everything else that drives this economy, both in terms of our
transportation, our manufacturing, the heating of our homes. All of
these things would be greater enhanced if we would have the American
Energy Act brought before us.
Unfortunately, I believe the American Energy Act would not be a
germane motion to recommit. Otherwise, we'd be offering it right now,
but I believe the gentleman's alternative is a good one, and I support
it.
Mr. MORAN of Kansas. Mr. Speaker, again, I would ask the House of
Representatives to approve our motion to recommit.
Again, as the gentleman from Virginia says, we believe there's a
better policy that hasn't even been debated upon the House floor in
dealing with energy prices than the bill that's before us today. That's
the American Energy Act. We wish that motion could be made in order
today so that we could have a clear debate and vote upon the issue that
is compelling to the American people and damaging to the United States
economy.
In lieu of that, we would ask that we take this additional step to
make certain no unintended consequences occur and we protect the
retirement accounts, the pension accounts of Americans.
I yield back my time.
Mr. PETERSON of Minnesota. Mr. Speaker, I rise in opposition to the
motion.
The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
Mr. PETERSON of Minnesota. Mr. Speaker, first of all, we were delayed
in getting something done with this bill back in July when, at one
time, we had the votes to pass this under suspension, and then the
votes eroded away. This is going to delay the process again. And beyond
delay because it says ``promptly,'' it will have the effect of us not
being able to move this bill in the House before we're out of here for
the elections.
As chairman of the committee and somebody that's worked on this, I
disagree with that. I think we need to move this, irrespective of
whatever's going to happen in the other body or with the
administration. I think this has the effect of killing the bill because
we won't have the time to deal with this.
Lastly, I think the CFTC has the ability to do this under the
legislation. Apparently Mr. Moran doesn't trust the CFTC. We have
people over here that don't trust the CFTC, but I think they could deal
with this. I don't think there's anything that precludes them from
accomplishing this in the underlying legislation.
I would ask people to oppose the motion, and I would say that I
believe this kills the bill for this session.
I yield back my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. MORAN of Kansas. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 15-minute vote on the motion to recommit will be followed by
5-minute votes on passage of the bill, if ordered; ordering the
previous question on House Resolution 1441; and adopting House
Resolution 1441, if ordered.
The vote was taken by electronic device, and there were--yeas 196,
nays 221, not voting 16, as follows:
[Roll No. 607]
YEAS--196
Aderholt
Akin
Alexander
Altmire
Bachmann
Bachus
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bean
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Ferguson
Flake
Forbes
Fortenberry
Fossella
Foster
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gilchrest
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Hall (TX)
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Hill
Hobson
Hoekstra
Hunter
Inglis (SC)
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
Keller
King (IA)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Latham
LaTourette
Latta
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Marshall
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris Rodgers
McNerney
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mitchell
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Peterson (PA)
Petri
Pickering
Platts
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Sali
Saxton
Scalise
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Whitfield (KY)
Wilson (NM)
Wilson (SC)
Wittman (VA)
Wolf
Young (AK)
Young (FL)
NAYS--221
Abercrombie
Ackerman
Allen
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Castor
Cazayoux
Chandler
Childers
Clarke
Clay
Cleaver
Clyburn
Cohen
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards (MD)
Edwards (TX)
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Frank (MA)
Giffords
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Gutierrez
Hall (NY)
Hare
Harman
Herseth Sandlin
Higgins
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jefferson
Johnson (GA)
Johnson, E. B.
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McIntyre
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Richardson
Rodriguez
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
[[Page H8429]]
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Space
Speier
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Woolsey
Wu
Yarmuth
NOT VOTING--16
Brady (TX)
Burgess
Conyers
Cubin
Dreier
Grijalva
Hastings (FL)
Hulshof
Issa
Jackson-Lee (TX)
King (NY)
Lampson
Pence
Pitts
Poe
Sestak
{time} 1400
Messrs. BERMAN, JOHNSON of Georgia, MURTHA, RODRIGUEZ, GUTIERREZ,
MURPHY of Connecticut, ROSS, BAIRD, Mrs. CAPPS, and Mr. RUPPERSBERGER
changed their vote from ``yea'' to ``nay.''
Messrs. CANNON, CARTER, WILSON of South Carolina, SIMPSON, WOLF,
GERLACH, and TANCREDO changed their vote from ``nay'' to ``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Recorded Vote
Mr. HUNTER. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 283,
noes 133, not voting 17, as follows:
[Roll No. 608]
AYES--283
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Becerra
Berkley
Berman
Berry
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Blumenauer
Bono Mack
Boren
Boswell
Boucher
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Brown-Waite, Ginny
Buchanan
Butterfield
Capito
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Castle
Castor
Cazayoux
Chabot
Chandler
Childers
Clay
Cleaver
Clyburn
Cohen
Costello
Courtney
Cramer
Cuellar
Cummings
Davis (CA)
Davis (IL)
Davis, Lincoln
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Donnelly
Doyle
Duncan
Edwards (MD)
Edwards (TX)
Ehlers
Ellison
Ellsworth
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Fallin
Farr
Fattah
Filner
Forbes
Fortenberry
Frank (MA)
Frelinghuysen
Gallegly
Gerlach
Giffords
Gilchrest
Gillibrand
Gohmert
Gonzalez
Goode
Goodlatte
Gordon
Graves
Green, Al
Green, Gene
Gutierrez
Hall (NY)
Hall (TX)
Hare
Harman
Hayes
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Jones (NC)
Kagen
Kanjorski
Kaptur
Keller
Kennedy
Kildee
Kilpatrick
Kirk
Klein (FL)
Knollenberg
Kucinich
Kuhl (NY)
LaHood
Langevin
Larsen (WA)
Larson (CT)
Latham
LaTourette
Lee
Levin
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lucas
Lynch
Mahoney (FL)
Marchant
Markey
Marshall
Matsui
McCarthy (NY)
McCollum (MN)
McCotter
McDermott
McGovern
McHugh
McIntyre
McMorris Rodgers
McNerney
McNulty
Meek (FL)
Meeks (NY)
Michaud
Miller (MI)
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murphy, Tim
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Platts
Pomeroy
Porter
Price (NC)
Rahall
Ramstad
Rangel
Regula
Reyes
Richardson
Rodriguez
Rogers (AL)
Rogers (KY)
Ros-Lehtinen
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Saxton
Schakowsky
Schiff
Schmidt
Schwartz
Scott (GA)
Scott (VA)
Serrano
Shays
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Souder
Space
Speier
Spratt
Stark
Stearns
Stupak
Sutton
Tanner
Taylor
Terry
Thompson (CA)
Thompson (MS)
Tierney
Towns
Tsongas
Udall (CO)
Udall (NM)
Upton
Van Hollen
Velazquez
Visclosky
Walsh (NY)
Walz (MN)
Wamp
Wasserman Schultz
Waters
Watson
Watt
Waxman
Welch (VT)
Weller
Wexler
Whitfield (KY)
Wilson (OH)
Wittman (VA)
Wolf
Woolsey
Wu
Yarmuth
Young (FL)
NOES--133
Aderholt
Akin
Alexander
Bachmann
Bachus
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bean
Biggert
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Boozman
Boustany
Boyd (FL)
Broun (GA)
Brown (SC)
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Carter
Clarke
Coble
Cole (OK)
Conaway
Cooper
Costa
Crenshaw
Crowley
Culberson
Davis (AL)
Davis (KY)
Davis, David
Davis, Tom
Doolittle
Drake
Everett
Feeney
Ferguson
Flake
Fossella
Foster
Foxx
Franks (AZ)
Garrett (NJ)
Gingrey
Granger
Hastings (WA)
Heller
Hensarling
Herger
Hobson
Hoekstra
Hunter
Inglis (SC)
Johnson, Sam
Jordan
Kind
King (IA)
Kingston
Kline (MN)
Lamborn
Latta
Lewis (CA)
Linder
Lungren, Daniel E.
Mack
Maloney (NY)
Manzullo
Matheson
McCarthy (CA)
McCaul (TX)
McCrery
McHenry
McKeon
Melancon
Mica
Miller (FL)
Miller, Gary
Moran (KS)
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Petri
Pickering
Price (GA)
Pryce (OH)
Putnam
Radanovich
Rehberg
Reichert
Renzi
Reynolds
Rogers (MI)
Rohrabacher
Roskam
Royce
Ryan (WI)
Sali
Scalise
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Sullivan
Tancredo
Tauscher
Thornberry
Tiahrt
Tiberi
Turner
Walberg
Walden (OR)
Weiner
Weldon (FL)
Westmoreland
Wilson (NM)
Wilson (SC)
Young (AK)
NOT VOTING--17
Brady (TX)
Burgess
Conyers
Cubin
Dreier
Grijalva
Hastings (FL)
Hulshof
Issa
Jackson-Lee (TX)
King (NY)
Lampson
Pence
Peterson (PA)
Pitts
Poe
Sestak
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Two minutes.
{time} 1411
Messrs. BURTON of Indiana, MICA, CRENSHAW, and ROGERS of Michigan
changed their vote from ``aye'' to ``no.''
Ms. FALLIN and Mrs. McMORRIS RODGERS changed their vote from ``no''
to ``aye.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________Legislative Activity
Stay on top of the latest movement without scrolling through every action
Floor
Latest Action
House amendment offered
September 18, 2008
View full timeline
Floor
House amendment offered
September 18, 2008
Not Used
Amendment agreed to by House: On agreeing to the Rules amendment (A001) Agreed to by voice vote.
September 18, 2008 • 12:25 PM
Floor
House amendment agreed to: On agreeing to the Rules amendment (A001) Agreed to by voice vote.
September 18, 2008 • 12:25 PM
Not Used
House amendment offered/reported by : Amendment in the nature of a substitute reported by the House Committee on Rules.(consideration: CR H8427-8429; text: CR H8416-8419)
September 18, 2008 • 12:24 PM
Floor
Amendment in the nature of a substitute reported by the House Committee on Rules. (consideration: CR H8427-8429; text: CR H8416-8419)
September 18, 2008 • 12:24 PM
Floor
On agreeing to the Rules amendment (A001) Agreed to by voice vote.
September 18, 2008 • 12:25 PM