July 29, 2008-- By the end of this week, and possibly as early as tomorrow, House Leadership expects to vote on the “Commodity Markets Transparency and Accountability Act of 2008,” H.R. 6604, which will impose new rules and regulations on energy futures markets.

Last Thursday, House Agriculture Committee Chairman Collin Peterson (D-MN) held a mark-up of the legislation. Chairman Peterson introduced a manager’s amendment which removed the pensions section from the bill. This section would have prohibited pension funds from investing in commodities. The manager’s amendment was reported out unanimously and now it awaits Speaker Nancy Pelosi’s (D-CA) decision to bring the bill to the floor.

The energy speculation legislation is expected to come up under suspension of rules which bars amendments and would require a two-thirds vote for passage. House Leadership has been bringing legislation to the House Floor under suspension of rules, so that Republicans would be unable to attach an off-shore drilling amendment to the underlying bill being voted on.

The legislation is similar to the Senate version, S. 3268, in regards to transparency, disaggregation of index funds, studies, hiring new employees at the CFTC and recordkeeping requirements. PMAA has been working with key committee staff to strengthen the House speculation bill. PMAA has clarified that index funds, pension funds and others who were hedging against a financial risk not directly tied to the underlying commodity will no longer be able to receive a hedge exemption.

Another provision in Section 8 creates a Position Limit Energy Group to set position limits and recommend whether the limits should be administered by the Commission or the registered entity. PMAA has been pressing the point that physical hedgers should have a dominate presence in the Position Limit Energy Group.

Congress needs to hear from you, your employees and your customers.

Please direct your calls to the House asking for support for H.R. 6604, the "Commodity Markets Transparency and Accountability Act of 2008."

To contact your Representative please call 202.225.3121

Or visit PMAA's Web site to send a letter at: http://capwiz.com/pmaa/home/