Congress continues debate on 'loophole'

April 8, 2008
As associations related to the tank truck industry testify for relief from high energy prices

As associations related to the tank truck industry testify for relief from high energy prices with the closing of what is know as the "Enron loophole," Congress continues to debate the issue that is included in the Farm Bill.

The Enron loophole refers to a lack of government oversight on certain energy trading, and the associations argue that lack of oversight has resulted in manipulations by investment banks and hedge funds that artificially drive up the price of fuel.

The Petroleum Marketers Association of America (PMAA) reported that representatives from PMAA and the New England Fuel Institute (NEFI) testified last week before the Senate Energy and Natural Resources Committee to highlight their concerns.

PMAA Director and NEFI President Sean Cota urged Congress to implement substantial reforms to existing futures market law and regulation. He called for fully transparent, accountable and stable energy futures markets and for the adoption of Senate language reauthorizing the Commodity Exchange Act (CEA) in the 2007 Farm Bill, which includes information about the Enron loophole.