January 13, 2009 CONGRESSIONAL RECORD — SENATE S337 

fiscal year 2008; to the Committee on Banking, Housing, and Urban Affairs. 

EC–436. A communication from the Under 

Secretary for Industry and Security, Department of Commerce, transmitting, pursuant 

to law, a report relative to the imposition of 

foreign policy controls on reexports to Iran 

and exports and reexports to certain parties 

pursuant to Executive Order 13382; to the 

Committee on Banking, Housing, and Urban 

Affairs. 

EC–437. A communication from the Legal 

Information Assistant, Office of Thrift Supervision, Department of the Treasury, 

transmitting, pursuant to law, the report of 

a rule entitled ‘‘Minimum Capital Ratios; 

Capital Adequacy Guidelines; Capital Maintenance; Capital: Deduction of Goodwill Net 

of Associated Deferred Tax Liability’’ 

(RIN1550–AC22) received in the Office of the 

President of the Senate on January 11, 2009; 

to the Committee on Banking, Housing, and 

Urban Affairs. 

EC–438. A communication from the Associate General Counsel for Legislation and 

Regulations, Office of Secretary, Department of Housing and Urban Development, 

transmitting, pursuant to law, the report of 

a rule entitled ‘‘Consolidated Returns; Intercompany Obligations’’ (RIN1545–BA11) received in the Office of the President of the 

Senate on January 11, 2009; to the Committee on Banking, Housing, and Urban Affairs. 

EC–439. A communication from the Associate General Counsel for Legislation and 

Regulations, Office of Housing, Department 

of Housing and Urban Development, transmitting, pursuant to law, the report of a rule 

entitled ‘‘Standards for Mortgagor’s Investment in Mortgaged Property: Compliance 

With Court Order Vacating Final Rule’’ 

(RIN2502–AI52) received in the Office of the 

President of the Senate on January 11, 2009; 

to the Committee on Banking, Housing, and 

Urban Affairs. 

EC–440. A communication from the Assistant to the Board of Governors of the Federal 

Reserve System, transmitting, pursuant to 

law, the report of a rule entitled ‘‘Minimum 

Capital Ratios; Capital Adequacy Guidelines; 

Capital Maintenance; Capital: Deduction of 

Goodwill Net of Associated Deferred Tax Liability’’ (Docket No. R–1329) received in the 

Office of the President of the Senate on January 9, 2009; to the Committee on Banking, 

Housing, and Urban Affairs. 

EC–441. A communication from the Acting 

Assistant Secretary for Water and Science, 

Bureau of Reclamation, Department of the 

Interior, transmitting, pursuant to law, the 

report of a rule entitled ‘‘Reclamation Rural 

Water Supply Program’’ (RIN1006–AA54) received in the Office of the President of the 

Senate on January 11, 2009; to the Committee on Energy and Natural Resources. 

EC–442. A communication from the Chief 

Financial Officer, Federal Mediation and 

Conciliation Service, transmitting, pursuant 

to law, a report relative to financial integrity for fiscal year 2008; to the Committee on 

Homeland Security and Governmental Affairs. 

EC–443. A communication from the Secretary, American Battle Monuments Commission, transmitting, pursuant to law, the 

Commission’s annual report for fiscal year 

2008; to the Committee on Homeland Security and Governmental Affairs. 

EC–444. A communication from the Director, National Gallery of Art, transmitting, 

pursuant to law, an annual report relative to 

the Gallery’s competitive sourcing activities 

during fiscal year 2008; to the Committee on 

Homeland Security and Governmental Affairs. 

EC–445. A communication from the Secretary of the Treasury, transmitting, pursuant to law, the Department’s Performance 

and Accountability Report for fiscal year 

2008; to the Committee on Homeland Security and Governmental Affairs. 

EC–446. A communication from the Under 

Secretary of Defense (Comptroller), transmitting, pursuant to law, the report of a violation of the Antideficiency Act that occurred within the U.S. Southern Command, 

and has been assigned case number 08–05; to 

the Committee on Appropriations. 

EC–447. A communication from the Attorney of the Office of Assistant General Counsel for Legislation and Regulatory Law, Office of Energy Efficiency and Renewable Energy, Department of Energy, transmitting, 

pursuant to law, the report of a rule entitled 

‘‘Energy Conservation Program for Commercial and Industrial Equipment: Energy Conservation Standards for Commercial IceCream Freezers; Self-Contained Commercial 

Refrigerators, Commercial Freezers, and 

Commercial Refrigerator-Freezers Without 

Doors; and Remote Condensing Commercial 

Refrigerators, Commercial Freezers, and 

Commercial Refrigerator-Freezers’’ 

(RIN1904–AB59) received in the Office of the 

President of the Senate on January 12, 2009; 

to the Committee on Energy and Natural Resources. 

f 

INTRODUCTION OF BILLS AND 

JOINT RESOLUTIONS 

The following bills and joint resolutions were introduced, read the first 

and second times by unanimous consent, and referred as indicated: 

By Mr. HATCH: 

S. 215. A bill to authorize the Boy Scouts of 

America to exchange certain land in the 

State of Utah acquired under the Recreation 

and Public Purposes Act; to the Committee 

on Energy and Natural Resources. 

By Mr. HATCH: 

S. 216. A bill to authorize the Secretary of 

the Interior to conduct a special resource 

study to determine the suitability and feasibility of designating Estate Grange and 

other sites related to Alexander Hamilton’s 

life on the island of St. Croix in the United 

States Virgin Islands as a unit of the National Park System, and for other purposes; 

to the Committee on Energy and Natural Resources. 

By Mr. HATCH: 

S. 217. A bill to amend the National Trails 

System Act to require the Secretary of the 

Interior to update the feasibility and suitability studies of four national historic 

trails, and for other purposes; to the Committee on Energy and Natural Resources. 

By Mr. HATCH: 

S. 218. A bill to require the Secretary of 

the Interior to convey certain Bureau of 

Land Management land to Park City, Utah, 

and for other purposes; to the Committee on 

Energy and Natural Resources. 

By Mr. HATCH: 

S. 219. A bill to provide for the sale of approximately 25 acres of public land to the 

Turnabout Ranch, Escalante, Utah, at fair 

market value; to the Committee on Energy 

and Natural Resources. 

By Mr. GRASSLEY: 

S. 220. A bill to amend title 28, United 

States Code, to provide an Inspector General 

for the judicial branch, and for other purposes; to the Committee on the Judiciary. 

By Mr. NELSON of Florida: 

S. 221. A bill to amend the Commodity Exchange Act to require energy commodities to 

be traded only on regulated markets, and for 

other purposes; to the Committee on Agriculture, Nutrition, and Forestry. 

By Mr. FEINGOLD: 

S. 222. A bill to amend the Internal Revenue Code of 1986 to increase the national 

limitation on qualified energy conservation 

bonds and to clarify that certain programs 

constitute a qualified conservation purpose, 

and for other purposes; to the Committee on 

Finance. 

By Mr. FEINGOLD: 

S. 223. A bill to amend the Farm Security 

and Rural Investment Act of 2002 to further 

the adoption of technologies developed by 

the Department of Agriculture, to encourage 

small business partnerships in the development of energy through biorefineries, and for 

other purposes; to the Committee on Agriculture, Nutrition, and Forestry. 

By Ms. STABENOW (for herself and 

Mr. BROWN): 

S. 224. A bill to promote economic recovery 

through green jobs and infrastructure, and 

for other purposes; to the Committee on Energy and Natural Resources. 

By Mr. BAYH (for himself, Mr. HATCH, 

Mrs. LINCOLN, Mr. KERRY, Mr. LUGAR, 

Mr. KENNEDY, Ms. STABENOW, Mr. 

BENNETT, and Mr. VOINOVICH): 

S. 225. A bill to amend title XIX of the Social Security Act to establish programs to 

improve the quality, performance, and delivery of pediatric care; to the Committee on 

Finance. 

By Mr. TESTER (for himself and Mr. 

BAUCUS): 

S. 226. A bill to designate the Department 

of Veterans Affairs outpatient clinic in 

Havre, Montana, as the Merril Lundman Department of Veterans Affairs Outpatient 

Clinic; to the Committee on Veterans’ Affairs. 

By Mr. CARDIN (for himself, Mrs. 

CLINTON, Ms. MIKULSKI, and Mr. 

SCHUMER): 

S. 227. A bill to establish the Harriet Tubman National Historical Park in Auburn, 

New York, and the Harriet Tubman Underground Railroad National Historical Park in 

Caroline, Dorchester, and Talbot Counties, 

Maryland, and for other purposes; to the 

Committee on Energy and Natural Resources. 

By Mr. BINGAMAN (for himself and 

Mr. AKAKA): 

S. 228. A bill to amend title XIX of the Social Security Act to permit States, at their 

option, to require certain individuals to 

present satisfactory documentary evidence 

of proof of citizenship or nationality for purposes of eligibility for Medicaid, and for 

other purposes; to the Committee on Finance. 

By Mrs. BOXER: 

S. 229. A bill to empower women in Afghanistan, and for other purposes; to the Committee on Foreign Relations. 

By Mrs. BOXER: 

S. 230. A bill to express United States foreign policy with respect to, and to strengthen United States advocacy on behalf of, individuals persecuted and denied their rights in 

foreign countries on account of gender, and 

for other purposes; to the Committee on Foreign Relations. 

By Mr. VITTER (for himself, Mr. 

DEMINT, Mr. INHOFE, Mr. BARRASSO, 

Mr. SESSIONS, Mr. ENZI, and Mr. 

BROWNBACK): 

S.J. Res. 5. A joint resolution relating to 

the disapproval of obligations under the 

Emergency Economic Stabilization Act of 

2008; placed on the calendar, pursuant to P.L. 

110–343, sec. 115(e)(2). 

f 

SUBMISSION OF CONCURRENT AND 

SENATE RESOLUTIONS 

The following concurrent resolutions 

and Senate resolutions were read, and 

referred (or acted upon), as indicated: 

By Mr. NELSON of Florida (for himself 

and Mr. MARTINEZ): 


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S338 CONGRESSIONAL RECORD — SENATE January 13, 2009 

S. Res. 13. A resolution congratulating the 

University of Florida football team for winning the 2008 Bowl Championship Series 

(BCS) national championship; to the Committee on the Judiciary. 

f 

ADDITIONAL COSPONSORS 

S. 64

At the request of Mr. INHOFE, the 

names of the Senator from Kansas (Mr. 

BROWNBACK) and the Senator from 

Oklahoma (Mr. COBURN) were added as 

cosponsors of S. 64, a bill to amend the 

Emergency Economic Stabilization Act 

to require approval by the Congress for 

certain expenditures for the Troubled 

Asset Relief Program. 

S. 85

At the request of Mr. VITTER, the 

name of the Senator from Mississippi 

(Mr. WICKER) was added as a cosponsor 

of S. 85, a bill to amend title X of the 

Public Health Service Act to prohibit 

family planning grants from being 

awarded to any entity that performs 

abortions. 

S. 96

At the request of Mr. VITTER, the 

name of the Senator from Mississippi 

(Mr. WICKER) was added as a cosponsor 

of S. 96, a bill to prohibit certain abortion-related discrimination in governmental activities. 

S. 174

At the request of Mr. INOUYE, the 

name of the Senator from Rhode Island 

(Mr. REED) was added as a cosponsor of 

S. 174, a bill to establish a coordinated 

and comprehensive Federal ocean and 

coastal mapping program. 

S. 211

At the request of Mrs. CLINTON, the 

name of the Senator from Connecticut 

(Mr. LIEBERMAN) was added as a cosponsor of S. 211, a bill to facilitate nationwide availability of 2-1-1 telephone 

service for information and referral on 

human services and volunteer services, 

and for other purposes. 

f 

STATEMENTS ON INTRODUCED 

BILLS AND JOINT RESOLUTIONS 

By Mr. NELSON, of Florida: 

S. 221. A bill to amend the Commodity Exchange Act to require energy 

commodities to be traded only on regulated markets, and for other purposes; 

to the Committee on Agriculture, Nutrition, and Forestry. 

Mr. NELSON of Florida. Mr. President, over the past half year, as the 

price of a barrel of oil has rocketed 

into the sky—all the way to $147 a barrel and in 1 day the price escalating 

$25—there have been a number of Senators on this floor and in committee 

meetings and in private discussions 

saying: Why won’t people wake up and 

realize it is not the economic marketplace of supply and demand that is determining the price of oil? Who wants 

us to believe that? The oil companies, 

of course. In fact, the price of oil has 

escalated not because there is a tightness on the world marketplace of demand for oil. Indeed, at the very time 

of a 6-month period from the last quarter of last year until the first quarter 

of 2008—that 6-month period when the 

demand for oil was going down and the 

supply was going up, which would indicate the price should be going down if 

supply is greater than demand—exactly 

the reverse was true. The price kept 

rocketing to the Moon. 

It defied the laws of supply and demand. Yet we had everybody running 

out saying, ‘‘Oh, it is the tight world 

marketplace,’’ and it was difficult to 

get people to listen to a group of Senators who said it was because the commodities futures exchanges had been 

deregulated and, therefore, unregulated 

oil futures contracts speculation was 

running wild. 

Then, once it got up to $147 a barrel, 

what happened? The liquidity crisis 

hit, the economic crisis of confidence 

hit—not only in America but across 

the world. A lot of this was precipitated by the faulty mortgages, the 

subprime mortgages we are now not 

paying off in the revenue stream because people weren’t paying their 

mortgages. Those mortgages had been 

bundled into securities and then 

bought and sold, and a lot of financial 

institutions, hedge funds, mutual funds 

and, indeed, big investments for pension funds started dumping those because they needed cash, and they started dumping their positions on oil futures commodities that they had purchased in this speculative frenzy that 

ran the price up to $147 a barrel. What 

happened? The exact reverse. The price 

of oil starts coming down. So what 

should we do about this? Well, we 

ought to do what a number of us have 

been saying: We ought to go back and 

reregulate what we have jurisdiction 

over, which is the Commodities Futures Trading Commission. 

Now, why was it deregulated? It was 

deregulated in the dead of night before 

Christmas in the year 2000, and it was 

deregulated at the behest of the Enron 

Corporation. And once they deregulated that commodities futures trading 

market on energy, it allowed them to 

go out and speculate on energy contracts. What was the first result? In 

the early part of this decade we saw it 

happen in California. We saw the electricity contracts start a runup in speculative bidding, to which it went up— 

the cost of electricity—by as high as 

300 percent in California. Once that 

started to unravel, then we know what 

happened: Enron started to unravel 

with all the shenanigans that had gone 

on there. 

But here we are 7 and 8 years later, 

after the law was changed, and we 

haven’t been able to get it changed 

back because people come out here and 

say: Oh, it is supply and demand in the 

world market for oil, and they come up 

with a simple slogan, as if that was 

going to handle the price of oil when it 

was hitting $147 and translated into 

about $4-gallon-gasoline. Their simple 

little slogan was ‘‘drill baby, drill,’’ as 

if that were going to solve the problem 

of the price of gasoline and the price of 

oil. 

But now we hear—and people are 

starting to pay attention—we ought to 

reregulate this futures commodities 

trading. Now, what do we mean by regulate? I am talking about simple little 

things, such as you would have to use 

the oil that you are bidding on, such as 

an airline does. It locks in a future 

price for fuel by bidding on these future oil contracts. An airline, in fact, 

does use oil. By taking away the regulation, they have removed that ability. 

Or to give another example of regulation: A Commodities Futures Trading 

Commission could say you have to put 

a certain amount of money down if you 

are going to buy a future oil contract. 

Instead of getting it with nothing 

down, you have to put some skin in the 

game. But if you completely deregulate 

it, what you leave it to is the speculator to go in and bid that price up and 

up and up. 

Now, this is what we have been saying on the floor of this Senate for the 

last 6 or 8 months, a number of us— 

Senator DORGAN, Senator CANTWELL, 

this Senator, and several other Senators—but it has been hard to get an 

audience that would listen. Well, no 

less a respected institution than CBS 

News ‘‘60 Minutes’’ last Sunday night 

broke it open and put it about as clearly as I have ever heard in posing this 

question: Did speculation fuel oil price 

swings? 

And what they concluded was that 6 

months ago, when oil hit its alltime 

high of $147, and gas was up around $4 

a gallon, it created a frenzy that fed 

into irrational and false claims that 

the problem was just supply and demand and that the solution was to drill 

for more oil. 

Well, it looks a lot different now. 

That frenzy that got mixed up in Presidential politics as well, with those simplified mantras of ‘‘drill baby, drill,’’ 

fueled by a slick public relations campaign, that was funded by deep-pocket 

oil companies. Yet those same oil companies testified in the spring of 2008 

that if supply and demand were the 

sole driver of oil prices, that oil should 

cost no more than $55 a barrel. We had 

executives of two of the big major oil 

companies say the normal laws of supply and demand would say that oil 

ought to be in the range of $55 to $65 a 

barrel, and they testified, this Senator 

thinks, correctly. 

So ask yourself: Could supply and demand justify the wild swings in prices? 

And in that one instance where oil 

jumped $25 in 1 day for a barrel of oil, 

ask yourself: Could the new oil demands by China and India, that have 

needs for new oil products, could that 

have suddenly caused that price to 

jump so much in a single day? And the 

answer, clearly, is: No. It was speculation that caused that bubble to grow. 

Wall Street investors shifted billions of 

dollars out of the stock market and 

into the commodities futures market 


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