Hill told both groups that APGA’s efforts to shape the financial reform legislation were successful as both the Senate and House versions of the bill included exemptions for public gas systems hedging transactions from a mandatory clearing provision. Many members of Congress were adamant that all over-the-counter (OTC) transactions be cleared, exchange-traded or somehow backed by cash held in a margin account. APGA argued for months that public gas systems use their credit rating and the OTC market for hedging purposes only and their transactions pose no systemic risk to the U.S. financial system. Both the House and Senate agreed and exempted public gas system transactions from the clearing mandate. The bill is now in a conference committee between the House and Senate where final details are being negotiated between conferees appointed by the leadership of each chamber. The final product of those negotiations will be voted on one more time in each chamber before going to the President for signature or veto. The president has said he wants a bill on his desk by July 4. 
 

Hill also explained that Congress and the Administration are making a last ditch effort to enact energy legislation that could potentially include language that places a price on greenhouse gas emissions. In response the Deepwater Horizon oil spill in the Gulf of Mexico, the President is making a strong push for Congress to enact energy and climate legislation. Some are speculating that Congress may attempt to attach energy or climate change legislation to any bill that moves through the Senate to address the Gulf of Mexico oil spill. The House of Representatives passed a bill in June 2009 that regulates GHG emissions via a cap-and-trade scheme. The Senate has yet to act but leaders are plotting to push forward in July with energy and potentially climate change legislation.    
 

Hill also updated both groups on APGA’s efforts to amend Section 5 of the Natural Gas Act that would give the Federal Energy Regulatory Commissions (FERC) greater authority to enforce just and reasonable rates for natural gas consumers. APGA hopes to attach language to the Senate energy bill if it comes to the floor next month. 

 

If you have questions on this article contact Nate Hill at 202-464-2742 or nhill@apga.org.