S. 1200Senate112th Congress (2011-2013)In Committee

End Excessive Oil Speculation Now Act of 2011

Introduced June 15, 2011

Legislative Activity

Stay on top of the latest movement without scrolling through every action

2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

June 15, 2011

View full timeline
SenateIntro Referral

Introduced in Senate

June 15, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3821-3822)

June 15, 2011

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

June 15, 2011

Floor Debate

22 members

What members said about S. 1200 on the floor

5 Republicans16 Democrats1 Independent
Barbara Boxer
Sen. Barbara BoxerD-CA · Feb 29, 2012

As the senior Senator from New York relinquishes the chair to his colleague from New York, I want to thank both of them for their amazing leadership in every issue we turn to today. Senator Schumer's…

Roy Blunt
Sen. Roy BluntR-MO · Feb 29, 2012

Mr. President, my colleague, the Senator from Illinois, and I live in a part of the country where these terrible weather events--tornadoes and other things--are not unusual for us. But as Senator…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jun 15, 2011

Mr. President, I am pleased to introduce, together with Senator Snowe, legislation today to protect one of Americans' most valuable but vulnerable assets: Social Security numbers. The Protecting the…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Feb 29, 2012

I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent to speak as in morning business. Mr. President, overnight and early this morning parts…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jun 15, 2011

Mr. President, I rise to speak about the fiscal crisis facing our country and specifically the dire financial situation of Medicare, which is a program that matters so much to tens of millions of…

Show 8 more
Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Feb 29, 2012

Thank you very much, Mr. President. Mr. President, what is the parliamentary situation? Mr. President, I ask unanimous consent to extend the time on the Democratic side for 15 minutes. Thank you very…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Feb 29, 2012

Madam President, I rise today to speak in support of the Transportation reauthorization bill that is currently before the Senate. It is called the Moving Ahead for Progress in the 21st Century Act,…

Max Baucus
Sen. Max BaucusD-MT · Feb 29, 2012

Mr. President, I would ask, what is the pending business before the Senate? Mr. President, I rise to object to the Blunt amendment. I believe this amendment is extreme and it would undermine the…

Scott P. Brown
Sen. Scott P. Brown R-MA · Feb 29, 2012

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Good morning to you, Mr. President, and everybody in the gallery. I wanted to thank Majority Leader Reid for…

Jeff Merkley
Sen. Jeff MerkleyD-OR · Feb 29, 2012

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise today to talk about the attack on women's health care that has been taking place over the…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 15, 2011

Mr. President, today, I am pleased to introduce the Refugee Protection Act. This bill, which is cosponsored by Senators Levin, Akaka, and Durbin, will reaffirm the commitments our Nation made in…

Herb Kohl
Sen. Herb KohlD-WI · Feb 29, 2012

Madam President, I come here today to speak about my amendment No. 1591, which is a bipartisan amendment to repeal the freight railroad industry's undeserved exemptions to the antitrust laws,…

John Barrasso
Sen. John BarrassoR-WY · Feb 29, 2012

Madam President, I ask unanimous consent that the quorum calm be rescinded. Madam President, I come to the floor today as I do week after week to talk about the health care law and offer a doctor's…

Show 11 more
Bernard Sanders
Sen. Bernard SandersI-VT · Jun 15, 2011

Mr. President, I think every American understands that the very high price of oil and gas is having a very negative impact on our fragile economic recovery. Also, in rural States, such as Vermont,…

Bernard Sanders
Sen. Bernard SandersI-VT · Jun 15, 2011

Mr. President, I think every American understands that the very high price of oil and gas is having a very negative impact on our fragile economic recovery. Also, in rural States, such as Vermont,…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Feb 29, 2012

Mr. President, I rise to thank the distinguished Senator from New Jersey for his remarks, and most particularly for the remarks of my friend and colleague from California. She has fought this fight…

Robert Menendez
Sen. Robert MenendezD-NJ · Feb 29, 2012

Mr. President, I rise to oppose the Blunt amendment which simply goes way too far. The President has struck the right balance in his decision to address religious institutions' concerns when it comes…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Feb 29, 2012

Mr. President, I had the opportunity to listen to my colleague from Missouri as he talked about his amendment. I know he is very sincere in his efforts to protect the first amendment, and if that is…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Jun 15, 2011

Mr. President, I rise today to introduce the Medicare Drug Savings Act of 2011. I am proud to be joined by my colleagues Senator Jeff Bingaman of New Mexico, Senator Debbie Stabenow of Michigan,…

John Cornyn
Sen. John CornynR-TX · Feb 29, 2012

Mr. President, I want to express my gratitude to the Senator from Missouri for his leadership on this issue. This used to be a topic that was a bipartisan issue dating back to the passage of the…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · Feb 29, 2012

Mr. President, I ask unanimous consent that the quorum call be rescinded. Mr. President, I ask unanimous consent to speak before the Senate for 10 minutes. Mr. President, I rise to urge my colleagues…

Kelly Ayotte
Sen. Kelly AyotteR-NH · Feb 29, 2012

I thank the Senator. I appreciate the opportunity to be here to rise in support of the pending amendment that is based upon, as Senator Blunt mentioned, a piece of legislation that was introduced on…

Joe Manchin III
Sen. Joe Manchin IIID-WV · Feb 29, 2012

Mr. President, I rise today to recognize two pillars of West Virginia--an educational institution that is educating the people of our State for good-paying jobs they are going to need and a beloved…

Amy Klobuchar
Sen. Amy KlobucharD-MN · Feb 29, 2012

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise to join my colleagues in opposition to the amendment offered by Senator Blunt. It is…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued June 15, 2011

II

112th CONGRESS

1st Session

S. 1200

IN THE SENATE OF THE UNITED STATES

June 15, 2011

Mr. Sanders (for himself, Mr. Nelson of Florida, Mr. Blumenthal, Mr. Merkley, Mr. Franken, and Mr. Whitehouse) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To require the Chairman of the Commodity Futures Trading Commission to impose unilaterally position limits and margin requirements to eliminate excessive oil speculation, and to take other actions to ensure that the price of crude oil, gasoline, diesel fuel, jet fuel, and heating oil accurately reflects the fundamentals of supply and demand, to remain in effect until the date on which the Commission establishes position limits to diminish, eliminate, or prevent excessive speculation as required by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and for other purposes.

1.

Short title

This Act may be cited as the End Excessive Oil Speculation Now Act of 2011.

2.

Elimination of excessive oil speculation

(a)

Findings

Congress finds that—

(1)

the national average retail price for a gallon of gasoline was $3.75 on June 8, 2011;

(2)

increased gasoline prices are causing severe economic pain to the American people;

(3)

Congress has a responsibility—

(A)

to ensure that gasoline prices at the pump reflect the fundamentals of supply and demand; and

(B)

to bring needed relief to consumers and businesses of the United States at the gas pump;

(4)

there is mounting evidence that the spike in gasoline prices has—

(A)

little to do with the fundamentals of supply and demand; and

(B)

more to do with Wall Street speculators increasing oil and gas prices in the energy futures and swaps markets;

(5)

as of May 27, 2011—

(A)

the supply of gasoline in the United States was higher than it was 2 years ago; and

(B)

the demand for gasoline was lower than it was 2 years ago when the national average for a gallon of regular unleaded gasoline was $2.44 a gallon;

(6)

on May 12, 2011, Exxon Mobil Chairman and Chief Executive Officer, Rex Tillerson, told the Committee on Finance of the Senate that oil should cost between $60 and $70 per barrel, if the price of oil was based on supply and demand fundamentals;

(7)

on March 21, 2011, Goldman Sachs warned clients that speculators were boosting crude oil prices by as much as $27 a barrel;

(8)

on March 25, 2011, Delta Airlines General Counsel, Ben Hirst, said that the marginal cost of oil production is between $60 to $70 a barrel;

(9)

in the summer of 2008, when gas prices rose to over $4 a gallon, Saudi Arabian government officials told the Federal Government that speculators were responsible for increasing oil prices by about $40 a barrel;

(10)

the Commodity Futures Trading Commission has the authority to ensure that the price discovery for oil and gasoline is based on the fundamentals of supply and demand, rather than excessive speculation;

(11)

title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.) (and amendments made by that Act) requires the Commission to establish position limits to diminish, eliminate, or prevent excessive speculation for trading in crude oil, gasoline, heating oil and other physical commodity derivatives;

(12)

as of the date of introduction of this Act, the Commission has failed to impose position limits to diminish, eliminate, or prevent excessive oil and gasoline speculation as required by law; and

(13)

the proposed position limits for derivatives that the Commission included in the notice of proposed rulemaking entitled Position Limits for Derivatives (76 Fed. Reg. 4752 (January 26, 2011)) are not scheduled to go into effect until the first quarter of 2012, which would—

(A)

occur on a date that is later than the statutory deadline for the regulations; and

(B)

fail to diminish, eliminate, or prevent excessive speculation as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203; 124 Stat. 1376).

(b)

Elimination of excessive oil speculation

(1)

Definitions

In this Act:

(A)

Bona-fide hedge trading; bona-fide hedge transaction

The terms bona-fide hedge trading and bona-fide hedge transaction means a transaction or position that—

(i)
(I)

represents a substitute for a transaction made or to be made, or a position taken or to be taken, at a later time in a physical marketing channel;

(II)

is economically appropriate for the reduction of risks in the conduct and management of a commercial enterprise; and

(III)

arises from the potential change in the value of—

(aa)

assets that a person owns, produces, manufactures, processes, or merchandises or anticipates owning, producing, manufacturing, processing, or merchandising;

(bb)

liabilities that a person has incurred or anticipates incurring; or

(cc)

services that a person provides, purchases, or anticipates providing or purchasing; or

(ii)

reduces risks attendant to a position resulting from a swap that—

(I)

was executed opposite a counterparty for which the transaction would qualify as a bona-fide hedging transaction; or

(II)

meets the requirements of clause (i).

(B)

Commission

The term Commission means the Commodity Futures Trading Commission.

(2)

Duty of Chairman of the Commission

Notwithstanding section 2 of the Commodity Exchange Act (7 U.S.C. 2) or any other provision of law (including regulations), not later than 14 days after the date of enactment of this Act, the Chairman of the Commission shall unilaterally—

(A)

establish 1 or more speculative position limits in any registered entity on or through which crude oil, gasoline, diesel fuel, jet fuel, or heating oil futures or swaps are traded that are equal to the position accountability levels or position limits, as appropriate, established by the New York Mercantile Exchange;

(B)

establish 1 or more speculative position limits that are equal to the position accountability levels or position limits, as appropriate, established by the New York Mercantile Exchange on the aggregate number or amount of positions in contracts based upon the same underlying commodity that may be held by any person, including any group or class of traders, for each month across—

(i)

contracts listed by designated contract markets;

(ii)

with respect to an agreement, contract, or transaction that settles against any price (including the daily or final settlement price) of 1 or more contracts listed for trading on a registered entity, contracts traded on a foreign board of trade that provides members or other participants located in the United States with direct access to the electronic trading and order matching system of the foreign board of trade; and

(iii)

swap contracts that perform or affect a significant price discovery function with respect to regulated entities;

(C)

establish margin requirements of 12 percent for speculative swaps and futures trading in crude oil, gasoline, diesel fuel, jet fuel, and heating oil;

(D)

require that each bank holding company, investment bank, hedge fund, or swaps dealer engaged in the trading of energy futures or swaps for the benefit of the bank holding company, investment bank, hedge fund, or swaps dealer or on the behalf of, or as counterparty to, an index fund, exchange traded fund, or other noncommercial participant—

(i)

register with the Commission as a noncommercial participant; and

(ii)

be subject to each position limit and margin requirement under this subsection for each position in a manner by which the position is considered to be a speculative, proprietary position of the bank holding company, investment bank, hedge fund, or swaps dealer;

(E)

take any other action that the Chairman of the Commission determines to be necessary to eliminate excessive speculation in the aggregate to ensure that the price of crude oil, gasoline, diesel fuel, jet fuel, and heating oil accurately reflects the fundamentals of supply and demand; and

(F)

ensure that each bank holding company, hedge fund, investment bank, and swaps dealer that is engaged in the trading of energy futures or swaps for the benefit of the bank holding company, hedge fund, investment bank, and swaps dealer, or on the behalf of, or as counterparty to, 1 or more noncommercial participants, abides by each position limit and margin requirement under this subsection.

(3)

Applicability

Each position limit and margin requirement under this subsection shall not apply to bona-fide hedge trading.

(4)

Adjustments

Notwithstanding section 2 of the Commodity Exchange Act (7 U.S.C. 2) or any other provision of law (including regulations), the Chairman of the Commission may adjust any position limit under this subsection to the extent that the position of all noncommercial participants or speculators (in the aggregate and measured on an annual basis) shall not equal an amount greater than 35 percent of the annual, aggregate position of all traders in such futures and swaps market or markets for crude oil, gasoline, diesel fuel, jet fuel, and heating oil trading.

(5)

Sunset

(A)

In general

This Act, and the authority provided under this Act, shall terminate on the date on which the Commission imposes position limits to diminish, eliminate, or prevent excessive speculation as required by, and increased margin requirements as authorized in, title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.) (and amendments made by that Act).

(B)

Sense of Congress

It is the sense of Congress that, if finalized, the proposed position limits for derivatives that the Commission included in the notice of proposed rulemaking entitled Position Limits for Derivatives (76 Fed. Reg. 4752 (January 26, 2011)) are not sufficient to fulfill the statutory requirements of title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.) (and amendments made by that Act) to diminish, eliminate, or prevent excessive speculation.