Larson: Farm Bill Takes Steps to Lower Gas Prices and Regulate Oil Market

FOR IMMEDIATERELEASE: May 14, 2008

Contact: EmilyBarocas/202-225-7295/202-593-1377

LARSON: FARM BILL TAKES STEPS TO LOWER GAS PRICES AND REGULATE OILMARKET

Washington, DC - Today, Congress passeda farm bill that puts us on the path towards reform and a New Direction. This landmark legislation includesprovisions that directly impact the record high prices we have seen at the gaspump by allowing our federal regulators to have more oversight and control overoil futures trades.Gas priceshave more than doubled since President Bush took office. The Democratic Congress is putting an end toenergy policies based on the wishes of the energy industry and speculators andreturning the markets to the American consumer.

Here's a sample of what this legislation does:

• It expands the authority of the Commodity Futures Trading Commission over trades on markets that have been exempt from the sort of oversight that is necessary to preserve the concept of supply and demand.

• It increases criminal and civil penalties for market manipulation. Monetary penalties will go up tenfold for those found guilty of fraudulent practices. And, it makes it a felony to fail to comply with a fraud and manipulation investigation.

Congressman John B. Larson (CT-01), Vice Chairman of the Democratic Caucus, said, "This legislation makes great progress inthe march to put American consumers first. It sends a signal to speculators that their days manipulating the marketand driving up the price of oil are numbered. There is more to do to take the speculation out of our energy markets. But this is a good first step."

###