Hearings Committee on Agriculture House Of
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HEARING TO REVIEW LEGISLATION AMENDING THE COMMODITY EXCHANGE ACT HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION JULY 9, 10, 11, 2008 Serial No. 110–40 ( Printed for the use of the Committee on Agriculture agriculture.house.gov U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 17:04 Jul 16, 2009 Jkt 041481 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\DOCS\110-40\50678.TXT AGR1 PsN: BRIAN HEARING TO REVIEW LEGISLATION AMENDING THE COMMODITY EXCHANGE ACT VerDate 0ct 09 2002 17:04 Jul 16, 2009 Jkt 041481 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 I:\DOCS\110-40\50678.TXT AGR1 PsN: BRIAN HEARING TO REVIEW LEGISLATION AMENDING THE COMMODITY EXCHANGE ACT HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION JULY 9, 10, 11, 2008 Serial No. 110–40 ( Printed for the use of the Committee on Agriculture agriculture.house.gov U.S. GOVERNMENT PRINTING OFFICE 50–678 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate 0ct 09 2002 17:04 Jul 16, 2009 Jkt 041481 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 I:\DOCS\110-40\50678.TXT AGR1 PsN: BRIAN COMMITTEE ON AGRICULTURE COLLIN C. PETERSON, Minnesota, Chairman TIM HOLDEN, Pennsylvania, BOB GOODLATTE, Virginia, Ranking Vice Chairman Minority Member MIKE MCINTYRE, North Carolina TERRY EVERETT, Alabama BOB ETHERIDGE, North Carolina FRANK D. LUCAS, Oklahoma LEONARD L. BOSWELL, Iowa JERRY MORAN, Kansas JOE BACA, California ROBIN HAYES, North Carolina DENNIS A. CARDOZA, California TIMOTHY V. JOHNSON, Illinois DAVID SCOTT, Georgia SAM GRAVES, Missouri JIM MARSHALL, Georgia MIKE ROGERS, Alabama STEPHANIE HERSETH SANDLIN, South STEVE KING, Iowa Dakota MARILYN N. MUSGRAVE, Colorado HENRY CUELLAR, Texas RANDY NEUGEBAUER, Texas JIM COSTA, California CHARLES W. BOUSTANY, JR., Louisiana JOHN T. SALAZAR, Colorado JOHN R. ‘‘RANDY’’ KUHL, JR., New York BRAD ELLSWORTH, Indiana VIRGINIA FOXX, North Carolina NANCY E. BOYDA, Kansas K. MICHAEL CONAWAY, Texas ZACHARY T. SPACE, Ohio JEFF FORTENBERRY, Nebraska TIMOTHY J. WALZ, Minnesota JEAN SCHMIDT, Ohio KIRSTEN E. GILLIBRAND, New York ADRIAN SMITH, Nebraska STEVE KAGEN, Wisconsin TIM WALBERG, Michigan EARL POMEROY, North Dakota BOB LATTA, Ohio LINCOLN DAVIS, Tennessee JOHN BARROW, Georgia NICK LAMPSON, Texas JOE DONNELLY, Indiana TIM MAHONEY, Florida TRAVIS W. CHILDERS, Mississippi PROFESSIONAL STAFF ROBERT L. LAREW, Chief of Staff ANDREW W. BAKER, Chief Counsel APRIL SLAYTON, Communications Director WILLIAM E. O’CONNER, JR., Minority Staff Director (II) VerDate 0ct 09 2002 17:04 Jul 16, 2009 Jkt 041481 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 I:\DOCS\110-40\50678.TXT AGR1 PsN: BRIAN C O N T E N T S Page Wednesday, July 9, 2008 Baca, Hon. Joe, a Representative in Congress From California, prepared statement .............................................................................................................. 5 Childers, Hon. Travis W., a Representative in Congress From Mississippi, prepared statement .............................................................................................. 6 Goodlatte, Hon. Bob, a Representative in Congress From Virginia, opening statement .............................................................................................................. 4 Peterson, Hon. Collin C., a Representative in Congress From Minnesota, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 3 Smith, Hon. Adrian, a Representative in Congress From Nebraska, prepared statement .............................................................................................................. 6 WITNESSES Matheson, Hon. Jim, a Representative in Congress From Utah ......................... 7 Prepared statement .......................................................................................... 9 Van Hollen, Hon. Chris, a Representative in Congress From Maryland ............ 11 Prepared statement .......................................................................................... 13 DeLauro, Hon. Rosa L., a Representative in Congress From Connecticut ......... 15 Prepared statement .......................................................................................... 17 Stupak, Hon. Bart, a Representative in Congress From Michigan ..................... 18 Prepared statement .......................................................................................... 22 Larson, Hon. John B., a Representative in Congress From Connecticut ............ 27 Prepared statement .......................................................................................... 29 Welch, Hon. Peter, a Representative in Congress From Vermont ...................... 33 Prepared statement .......................................................................................... 34 SUBMITTED MATERIAL American Soybean Association, submitted statement .......................................... 59 CoBank, submitted statement ................................................................................ 61 Hill, Hon. Baron P., a Representative in Congress From Indiana, submitted statement .............................................................................................................. 57 Stupak, Hon. Bart, a Representative in Congress From Michigan, submitted statement .............................................................................................................. 58 USA Rice Federation and U.S. Rice Producers Association, submitted state- ment ...................................................................................................................... 68 Woods, Eastland, President and CEO, Staplcotn; Member, Board of Directors, Amcot, submitted statement ............................................................................... 64 Thursday, July 10, 2008 Goodlatte, Hon. Bob, a Representative in Congress From Virginia, opening statement .............................................................................................................. 72 Graves, Hon. Sam, a Representative in Congress From Missouri, prepared statement .............................................................................................................. 73 Peterson, Hon. Collin C., a Representative in Congress From Minnesota, opening statement ................................................................................................ 71 Prepared statement .......................................................................................... 72 (III) VerDate 0ct 09 2002 17:04 Jul 16, 2009 Jkt 041481 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 I:\DOCS\110-40\50678.TXT AGR1 PsN: BRIAN IV Page WITNESSES Zerzan, Greg, Counsel and Head of Global Public Policy, International Swaps and Derivatives Association, Washington, D.C. ................................................ 74 Prepared statement .......................................................................................... 75 Vice, Charles A., President and COO, IntercontinentalExchange, Inc., At- lanta, GA ............................................................................................................... 81 Prepared statement .......................................................................................... 83 Comstock, Michael, Acting Director, City of Mesa, Arizona Gas System; Vice Chairman, Board of Directors, American Public Gas Association, Mesa, AZ .......................................................................................................................... 87 Prepared statement .......................................................................................... 89 Greenberger, J.D., Michael, Professor, University of Maryland School of Law, Baltimore, MD ...................................................................................................... 98 Prepared statement .......................................................................................... 100 Pirrong, Ph.D., Craig, Professor of Finance and Director, Global Energy Man- agement Institute, Bauer College of Business, University of Houston, Hous- ton, TX .................................................................................................................. 118 Prepared statement .......................................................................................... 120 Diamonte, Robin L., Chairman, Subcommittee on Defined Benefits, Com- mittee on the Investment of Employee Benefit Assets; Chief Investment Officer, United Technologies Corporation, Hartford, CT .................................. 158 Prepared statement .......................................................................................... 159 Irwin, Ph.D., Scott H., Professor and Laurence J. Norton Chair of Agricultural Marketing, Department of Agricultural and Consumer Economics, Univer- sity of Illinois at Urbana—Champaign, Urbana, IL ........................................