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Issue link: http://read.dmtmag.com/i/31797
TOP OF THE NEWS Coalition opposes legislation that would slow derivatives reform Challenges to the Dodd-Frank Act announced opposition to a new House bill that would significantly delay new trading reforms provided in last year’s Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed legislation, H.R.1573, would extend the A deadline for implementation and enforcement of most Dodd-Frank Act reforms of trading in the derivatives mar- kets, including commodity futures, options and swaps mar- kets, from July 21, 2011 until January 1, 2013, the groups said in a statement. “These reforms, once implemented, will bring greater transparency and stability to the commodity deriva- tives markets, including energy and agricultural futures, options and swaps markets,” the coalition said in a letter to key lawmakers. The groups cited in their letter the recent explosion of speculative activity in the still mostly unregulated commodi- ty futures markets, and correlated market volatility and price spikes, as reason to keep these reforms on-track, especially proposed limits on speculative trading. “Further delay in the implementation and enforce- ment of these reforms could greatly diminish market competitiveness, stability and confidence, and will pre- serve today’s artificially high commodity prices caused n Distributors to pay $2.5 million to settle allegations of illegal mixing, distribution of gasoline Three gasoline distributors have agreed to pay $2.5 million to resolve claims that they illegally mixed and distrib- uted more than one million gallons of gasoline that did not meet Clean Air Act emissions and fuel qual- ity requirements. The settlement with Rocky Mountain Pipeline System LLC, Western Convenience Stores Inc. and Offen Petroleum Inc., was filed in federal court in Denver on May 4, announced the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA). “Complying with the Clean Air Act’s fuel regulations is critical to ensur- 6 MAY/JUNE 2011 national coalition of groups representing commodity-dependent businesses and consumers by excessive speculation in the derivatives markets,” the letter stated. The letter also expressed concern regarding a provi- sion in the bill that could provide blank exemptions from new regulations for certain entities, which the coalition called “unwarranted.” “Therefore we oppose H.R.1573,” the coalition said. H.R. 1573 was introduced in the U.S. House of Representatives on April 15th by the Republican leadership in the Agriculture and Financial Services Committees. The coalition letter was sent to both Republican and Democratic leaders in the House Financial Services and Agriculture Committees and is available online at www.nefiactioncenter.com/PDF/cmoc_hr1573ltr_final.pdf. The Commodity Markets Oversight Coalition (CMOC) is an independent, non-partisan and non-profit alliance of groups that represent commodity-dependent industries, businesses and end-users, including consumers, that rely on commodity derivatives markets as a hedging and price dis- covery tool. The CMOC advocates in favor of government policies that promote stability and confidence in the com- modities markets, that seek to prevent fraud, manipulation and excessive speculation, and that preserve the interests of bona fide hedgers and consumers. Visit www.commoditymar- ketsoversight.org for more information. ing that our nation’s important emis- sions standards are met,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement shows that EPA is committed to protecting the air we breathe by reducing illegal air pollution.” According to the government’s complaint, at two terminals in Dupont and Fountain, Colo., between 2006 and 2009, the companies produced millions of gallons of illegal gasoline by mixing natural gasoline, a byproduct of natural gas production, and ethanol with gasoline previously certified to meet Clean Air Act requirements. The blended gas was distributed and sold by Western Convenience Stores, Inc. (Western), and Offen Petroleum, Inc. (Offen), at retail gasoline stations in Colorado and Nebraska. The Clean Air Act allows refiners to produce gasoline by adding other fuel sources to previously certified gasoline, but anyone using this method must ensure that the blended gasoline still meets applicable emissions and fuel standards. They must also comply with sampling, testing, and quality assur- ance requirements to ensure that the gasoline meets these standards. n USDA makes move to support more blender pumps U.S. motorists will soon have more choic- es at the gas pump through a program that will provide funding for installation of flexible fuel pumps, U.S. Agriculture Secretary Tom Vilsack announced. NPN Magazine n www.npnweb.com