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NEFI-Led Coalition Puts Brakes
on Bill to Stall Futures Reform
A bill targeting new trading rules in the futures, options and swaps
market was pulled last-minute thanks in large part to the recent efforts
of NEFI and its allies. The bill (H.R.1003) would have doubled the list of
cost-benefit considerations that must be met by the Commodity
Futures Trading Commission (CFTC) before new rules, regulations and
orders were finalized.
“We believe analyses of potential burdens on market participants
and the public should always be considered in the promulgation of
any rule or regulation,” the NEFI-led coalition said in its letter to
Congress. “However, according to an Inspector General report in 2011,
current cost-benefit requirements established by Congress in 2000
have required sufficient review of the impact of pending CFTC rules
and regulations.”
The coalition went on to call out the true intent of the bill, which
aims at “slowing down, weakening or killing important new derivative
market reforms, including those designed to prevent market
disruption and manipulation.” This could lead to new court challenges
and “indefinite delays for essential derivative market rules mandated
by Congress in order to preserve market integrity and stability and
better protect market participants, end-users and the public.”
NEFI confirmed the bill was being pulled from consideration shortly
after the coalition letter was sent. A letter opposing H.R.1003 was also
circulated by key members from relevant committees, including Reps.
Waters (D-CA), Maloney (D-NY), Capuano (D-MA), A. Green (D-TX),
Lynch (MA), Moore (D-WI), Ellison (D-MN) and Himes (D-CT). The bill
was also opposed by CFTC Chairman Gary Gensler, who said that if it
was enacted, “it may well be hard to get any rule out of the building.”
NEFI and its allies have been able to defeat every single bill aimed at
stalling, weakening or repealing commodity trading reforms since the
passage of Dodd-Frank in 2010 and we remain vigilant.
EPA Updates Inspector Guidance
For Bulk Plant SPCC Regulations
The U.S. Environmental Protection Agency (EPA) recently issued
updated guidance for inspectors on changes to the federal Spill
Prevention Control and Countermeasure Plan (SPCC) requirement for
bulk plants. The new guidance is important to heating oil dealers
because it provides insight into how regional inspectors conduct SPCC
inspections at bulk plants.
The guidance incorporates all of the changes made to SPCC since
2003 when the amended provisions were first proposed. Heating oil
dealers can use the guidance to ensure full compliance with the
revised SPCC regulations that went into effect on November 10, 2011.
Included in the guidance is a discussion of secondary containment
requirements for parked trucks. NEFI won concessions from the EPA
during the rulemaking process allowing parked trucks containing
product to be subject to general secondary container requirements as
opposed to more onerous and expensive size secondary containment,
which would require trucks to be parked within diked areas.
NEFI Endorses Bill Affecting Drivers With Sleep Disorders
Last month the House approved H.R.3095, a bipartisan bill to require
the Federal Motor Carrier Safety Administration (FMCSA) to conduct a
formal rule-making process for any new rule targeting commercial
motor vehicle (CMV) drivers with sleep disorders (such as sleep apnea).
Policies being discussed at the FMCSA could have an impact on
businesses, drivers and consumers that exceeds $1 billion. Therefore,
NEFI sent a memo to all of its House contacts urging their support for
H.R.3095.
“[We represent] hundreds of companies and thousands of drivers
that deliver quality heating fuels and other products and services to
homes and businesses in New England and throughout the
Northeast… safety is of paramount importance to our organization, its
members and their employees,” NEFI said. Sleep disorder-related rules
could qualify as “significant rulemakings” given cost impacts. In light of
this, NEFI urged that “Congress ensure – as H.R3096 does – that any
rule coming out of FMCSA be written as fairly, comprehensively and
transparently as possible.”
The bill was approved unanimously in the House and has been sent
to the Senate for consideration. Given the overwhelming support, it is
likely the bill will find its way to enactment either as a stand-alone
measure or as part of a bigger bill.
New Bill Could Encourage Greater Oil Speculation
NEFI recently rallied coalition allies to oppose H.R.992, the “Swaps
Regulatory Improvement Act,” which was scheduled for a vote in the
House of Representatives. H.R.992 would repeal a provision of the 2010
Wall Street Reform law that prohibits financial institutions that engage
in swaps from receiving taxpayer subsidies or bailouts, including
access to near-zero percent loans from the Federal Reserve’s discount
window and deposit insurance and guarantees under the FDIC.
If H.R.992 passes, it could lead to a surge in risk-taking (i.e.,
speculation) in derivatives, including in commodities such as oil and
corn. With access to virtually “free money” from the Fed and a possible
taxpayer bailout if things “go south,” banks could be more inclined to
place their dollar on risky bets. This would undermine the original
intent of Congress which, after vigorous debate in the Dodd-Frank Act
conference committee in 2010, had reached bipartisan consensus that
it was best to make certain that risky derivatives dealings were separate
from traditional consumer depository banking and that they could not
be eligible for a bail-out.
New England Senators Lead Effort to Save LIHEAP
Senators Reed (D-RI) and Collins (R-ME) have led a bipartisan group
of 34 Senators in a push for $3.46 billion in federal Low Income Home
Energy Assistance (LIHEAP) funding for FY14. “[LIHEAP] is one of our
most effective tools to help senior citizens and less-fortunate
households keep warm during the winter,” said Collins. “As energy
CONTACTS:
Michael Trunzo, President & CEO:
Jim Collura, NEFI Vice President for Government Affairs:
Mark S. Morgan, Esq., New England Fuel Institute Regulatory Counsel:
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