Lucas and LaMalfa praise CFTC vote that dials back regulatory reach

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Farm Forum

WASHINGTON – Rep. Frank Lucas, Chairman of the House Agriculture Committee, and Rep. Doug LaMalfa issued statements after the Commodity Futures Trading Commission (CFTC) voted, 4-0, to exempt producers, utility companies, and other non-financial entities from being required to register as swap dealers when they enter into energy contracts with government-owned utilities.

The rule largely reflects the intent of H.R. 1038, the Public Power Risk Management Act, which was sponsored by Rep. Doug LaMalfa. The House Agriculture Committee advanced this bipartisan bill that ultimately won unanimous support on the House floor last year. Further, it was included within H.R. 4413, the Customer Protection and End-User Relief Act, that passed in the House this summer.

“I am pleased this is the agenda and outcome of the first open meeting under Chairman Massad’s leadership. It is encouraging to see commonsense has prevailed on a regulatory issue that is critical to the livelihoods of so many. The House acted with one, united voice and I applaud the CFTC for following suit thereby protecting Americans from electricity and natural gas rate increases,” said Chairman Frank Lucas.

“I am pleased the CFTC finalized a rule consistent with the intent of my bill, H.R. 1038, the Public Power Risk Management Act which was also included in, H.R. 4413, the Customer Protection and End-User Relief Act. Not only will the CFTC’s decision to implement this rule help to ensure continued growth in our agriculture sector, but most importantly, it will protect public power utilities’ access to risk management practices, and in turn, protect American ratepayers from escalating energy prices due to misguided regulations,” said Rep. Doug LaMalfa.