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“AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2012” mentioning the U.S. Dept. of Energy was published in the Extensions of Remarks section on pages E1109-E1110 on June 15, 2011.
The publication is reproduced in full below:
AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND
RELATED AGENCIES APPROPRIATIONS ACT, 2012
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speech of
HON. JOHN B. LARSON
of connecticut
in the house of representatives
Tuesday, June 14, 2011
The House in Committee of the Whole House on the State of the Union had under consideration the bill (H.R. 2112) making appropriations for Agriculture, Rural development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 2012, and for other purposes:
Mr. LARSON of Connecticut. Mr. Chair, I rise today in support of fully funding the CFTC.
According to Gene Guilford, Executive Director of the Independent Connecticut Petroleum Association, and former Reagan Energy Department Presidential appointee, gas prices should be $2.50. He goes on to say that 15 to 20 percent of the price of a barrel of oil is due to pure speculation.
Even big oil executives agree, Exxon Mobil CEO and President Rex Tillerson recently testified that the price of a barrel of oil without speculation should be between $60 and $70. According to an April 2011 analysis by Goldman Sachs, unregulated speculation adds over $20 per barrel to the price of oil.
In my home state of Connecticut, 4 million gallons of gas are sold a day. That means every day my constituents are spending an extra $6 million for speculation. In this fragile economic time, I can think of many other important things Connecticut families can spend $6 million to buy instead of paying to support the greed of over speculations. With consistently some of the highest gas prices in the nation, Connecticut deserves better.
One of the ways to reduce the price of gas is to end excessive speculation. The CFTC has a job to protect American consumers and through the Wall Street Reform legislation passed last Congress, they were tasked with implementing rules the market has to follow including ending excessive speculation and setting position limits.
To carry these regulatory protections out, the CFTC needs funding. Republicans have not only written language to delay implementation of these protections, but now in the FY12 Appropriations bill they put forth legislation to cut the budget by 15 percent, 44 percent under the President's request. This is unconscionable, especially when CFTC is doing a good job.
Less than a month ago, the CFTC charged 5 oil speculators with manipulating the price of crude during the record high gas prices in the summer of 2008. The Republican funding cut to the CFTC sends a strong message to the industry to continue the status quo. Not only will the cut prevent the agency from hiring the technical experts needed to implement new regulations, but will also reduce the overall size from 670 employees to under 600 employees.
When President Bush left office, the CFTC oversaw a $40 trillion market. Today, the CFTC is tasked with overseeing a $300 trillion market. This is a 650 percent increase in the CFTC's responsibility, but at the same time their budget has only increased by 15 percent. It is irresponsible to take away funding leaving the agency stretched far too thin and inadequately prepared to deal with our ever more intricate market. Wall Street spent $34 million last quarter lobbying Congress in order to prevent implementation of new regulations, and it looks like their efforts have paid off.
The health of our economy is no game. I am outraged by the actions of my colleagues. I support my amendment to fully fund the CFTC and reject this appropriations bill.
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