[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 509 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 509

              To improve the operation of energy markets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 3, 2005

Mrs. Feinistein (for herself, Mr. Levin, Mr. Wyden, Mr. Harkin, and Ms. 
   Cantwell) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
              To improve the operation of energy markets.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Markets 
Improvement Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
         TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

Sec. 101. Market transparency.
Sec. 102. Round trip trading.
Sec. 103. Enforcement.
Sec. 104. Refund effective date.
Sec. 105. Discovery and evidentiary hearings under the Federal Power 
                            Act.
                     TITLE II--MARKET MANIPULATION

Sec. 201. Prohibition of market manipulation.
                   TITLE III--ENERGY MARKET OVERSIGHT

Sec. 301. Over-the-counter transactions in energy commodities.
Sec. 302. Electronic trading facilities for energy commodities.
Sec. 303. No effect on other authority.
Sec. 304. Prohibition of fraudulent transactions.
Sec. 305. Criminal and civil penalties.
Sec. 306. Conforming amendments.

         TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

SEC. 101. MARKET TRANSPARENCY.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding at the end the following:

``SEC. 215. MARKET TRANSPARENCY.

    ``(a) In General.--Not later than 180 days after the date of 
enactment of this section, the Commission shall promulgate regulations 
establishing an electronic information system to provide the Commission 
and the public with access to such information as is appropriate to 
facilitate price transparency and participation in markets subject to 
the jurisdiction of the Commission.
    ``(b) Information To Be Made Available.--
            ``(1) In general.--The system under subsection (a) shall 
        provide information about the availability and market price of 
        wholesale electric energy and transmission services to the 
        Commission, State commissions, buyers and sellers of wholesale 
        electric energy, users of transmission services, and the 
        public.
            ``(2) Protection of consumers and competitive markets.--In 
        determining the information to be made available under the 
        system and the time at which to make such information 
        available, the Commission shall seek to ensure that consumers 
        and competitive markets are protected from false or misleading 
        information and from the adverse effects of potential collusion 
        or other anticompetitive behaviors that can be facilitated by 
        untimely public disclosure of transaction-specific information.
    ``(c) Authority To Obtain Information.--The Commission shall have 
authority to obtain information described in subsections (a) and (b) 
from any electric utility or transmitting utility (including any entity 
described in section 201(f)).
    ``(d) Exemption.--The Commission shall exempt from disclosure 
information that the Commission determines would, if disclosed--
            ``(1) be detrimental to the operation of an effective 
        market; or
            ``(2) jeopardize system security.
    ``(e) Applicability.--The system under subsection (a) shall not 
apply to an entity described in section 212(k)(2)(B) with respect to 
transactions for the purchase or sale of wholesale electric energy and 
transmission services within the area described in section 
212(k)(2)(A).''.

SEC. 102. ROUND TRIP TRADING.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as 
amended by section 101) is amended by adding at the end the following:

``SEC. 216. ROUND TRIP TRADING.

    ``(a) Prohibition.--It shall be unlawful for any person or entity 
(including an entity described in section 201(f)) knowingly to enter 
into any contract or other arrangement to execute a round trip trade.
    ``(b) Definition of Round Trip Trade.--In this section, the term 
`round trip trade' means a transaction (or combination of transactions) 
in which a person or entity, with the intent to affect reported 
revenues, trading volumes, or prices--
            ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or entity electric 
        energy at wholesale; and
            ``(2) simultaneously with entering into the contract or 
        arrangement described in paragraph (1), arranges a financially 
        offsetting trade with the other person or entity for the same 
        electric energy at substantially the same location, price, 
        quantity, and terms so that, collectively, the purchase and 
        sale transactions in themselves result in a de minimis or no 
        financial gain or loss.''.

SEC. 103. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended--
            (1) in the first sentence--
                    (A) by inserting ``(including an electric 
                utility)'' after ``Any person''; and
                    (B) by inserting ``, transmitting utility,'' after 
                ``licensee''; and
            (2) in the second sentence, by inserting ``, transmitting 
        utility,'' after ``licensee''.
    (b) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended in the first sentence by inserting 
``(including a transmitting utility)'' after ``any person''.
    (c) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 825l) is amended in the first sentence by 
inserting ``(including an electric utility)'' after ``Any person''.
    (d) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
            (1) in subsection (a)--
                    (A) by striking ``$5,000'' and inserting 
                ``$1,000,000''; and
                    (B) by striking ``two years'' and inserting ``5 
                years'';
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$25,000''; and
            (3) by striking subsection (c).
    (e) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825o-1) is amended--
            (1) in subsections (a) and (b), by striking ``section 211, 
        212, 213, or 214'' each place it appears and inserting ``part 
        II''; and
            (2) in subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.
    (f) General Penalties.--Section 21 of the Natural Gas Act (15 
U.S.C. 717t) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting ``5 
        years''; and
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$50,000''.

SEC. 104. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended--
            (1) in the second sentence, by striking ``the date 60 days 
        after the filing of such complaint nor later than 5 months 
        after the expiration of such 60-day period'' and inserting 
        ``the date of the filing of the complaint nor later than 5 
        months after the filing of the complaint'';
            (2) in the third sentence--
                    (A) by striking ``60 days after the'' and inserting 
                ``of''; and
                    (B) by striking ``expiration of such 60-day 
                period'' and inserting ``publication date''; and
            (3) by striking the fifth sentence and inserting the 
        following: ``If no final decision is rendered by the conclusion 
        of the 180-day period that begins on the date of institution of 
        a proceeding under this section, the Commission shall state the 
        reasons why the Commission has failed to do so and shall state 
        its best estimate as to when the Commission reasonably expects 
        to render a final decision.''.

SEC. 105. DISCOVERY AND EVIDENTIARY HEARINGS UNDER THE FEDERAL POWER 
              ACT.

    The Federal Power Act is amended--
            (1) in section 206 (16 U.S.C. 824e), by adding at the end 
        the following:
    ``(e) Discovery and Evidentiary Hearings.--On receipt of a 
complaint by a State or a State Commission under subsection (a), the 
Commission shall provide--
            ``(1) an opportunity for the State or the State Commission 
        to conduct reasonable discovery; and
            ``(2) on request of the State or the State Commission and a 
        showing of a dispute as to material facts, an evidentiary 
        hearing.''; and
            (2) in section 306 (16 U.S.C. 825e)--
                    (A) by inserting ``(a) In General.--'' before ``Any 
                person''; and
                    (B) by adding at the end the following:
    ``(b) Discovery and Evidentiary Hearings.--On receipt of a 
complaint by a State or State Commission under this section, the 
Commission shall provide--
            ``(1) an opportunity for the State or the State Commission 
        to conduct reasonable discovery; and
            ``(2) on request of the State or the State Commission and a 
        showing of dispute as to material facts, an evidentiary 
        hearing.''.

                     TITLE II--MARKET MANIPULATION

SEC. 201. PROHIBITION OF MARKET MANIPULATION.

    (a) In General.--Part II of the Federal Power Act (as amended by 
section 102) is amended by adding at the end the following:

``SEC. 217. PROHIBITION OF MARKET MANIPULATION.

    ``(a) In General.--It shall be unlawful for any person, directly or 
indirectly, to knowingly use or employ, in connection with the purchase 
or sale of electric energy or the purchase or sale of transmission 
services subject to the jurisdiction of the Commission, any 
manipulative or deceptive device or contrivance to affect the price, 
availability, or reliability of the electric energy or transmission 
services.
    ``(b) Regulations.--The Commission may promulgate regulations as 
appropriate in the public interest or for the protection of electric 
ratepayers to enforce this section.''.
    (b) Additional Remedy for Market Manipulation.--Section 206 of the 
Federal Power Act (16 U.S.C. 824e) is amended by adding at the end the 
following:
    ``(e) Remedy for Market Manipulation.--If the Commission finds that 
a public utility has knowingly employed any manipulative or deceptive 
device or contrivance in violation of this Act (including a regulation 
promulgated under this Act), the Commission may, in addition to any 
other remedy available under this Act, revoke the authority of the 
public utility to charge market-based rates.''.

                   TITLE III--ENERGY MARKET OVERSIGHT

SEC. 301. OVER-THE-COUNTER TRANSACTIONS IN ENERGY COMMODITIES.

    (a) Definitions.--Section 1a of the Commodity Exchange Act (7 
U.S.C. 1a) is amended by adding at the end the following:
            ``(34) Included energy transaction.--The term `included 
        energy transaction' means a contract, agreement, or transaction 
        in an energy commodity that is--
                    ``(A)(i) executed or traded on an electronic 
                trading facility; and
                    ``(ii) entered into on a principal-to-principal 
                basis solely between persons that are eligible 
                commercial entities at the time the persons enter into 
                the agreement, contract, or transaction; or
                    ``(B)(i) executed or traded not on or through a 
                trading facility; and
                    ``(ii) entered into solely between persons that are 
                eligible contract participants at the time the persons 
                enter into the agreement, contract, or transaction, 
                regardless of the means of execution of the agreement, 
                contract, or transaction.
            ``(35) Energy commodity.--
                    ``(A) In general.--The term `energy commodity' 
                means a commodity (other than an excluded commodity, a 
                metal, or an agricultural commodity) that is used as a 
                source of energy.
                    ``(B) Inclusions.--The term `energy commodity' 
                includes--
                            ``(i) coal;
                            ``(ii) crude oil, gasoline, heating oil, 
                        and propane;
                            ``(iii) electricity; and
                            ``(iv) natural gas.
            ``(36) Electronic energy trading facility.--The term 
        `electronic energy trading facility' means an electronic 
        trading facility on or through which included energy 
        transactions are traded or executed.''.
    (b) Off-Exchange Transactions in Energy Commodities.--Section 2(g) 
of the Commodity Exchange Act (7 U.S.C. 2(g)) is amended--
            (1) by inserting ``or an energy commodity'' after 
        ``agricultural commodity'';
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (3) by striking ``No provision'' and inserting the 
        following:
            ``(1) In general.--No provision''; and
            (4) by adding at the end the following:
            ``(2) Transactions in energy commodities.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C) and subsection (h)(7), 
                nothing in this Act applies to an included energy 
                transaction.
                    ``(B) Prohibited conduct.--
                            ``(i) In general.--An included energy 
                        transaction shall be subject to--
                                    ``(I) sections 5b, 12(e)(2)(B), and 
                                22(a)(4); and
                                    ``(II) the prohibitions in sections 
                                4b, 4c(a), 4c(b), 4o, 6(c), 6(d), 6c, 
                                6d, 8a, and 9(a)(2).
                            ``(ii) Transactions exempted by commission 
                        action.--Notwithstanding any exemption by the 
                        Commission under section 4(c), an included 
                        energy transaction shall be subject to the 
                        sections specified in clause (i) of this 
                        subparagraph, subparagraph (C), and subsection 
                        (h)(7).
                    ``(C) Reporting and recordkeeping requirements.--
                            ``(i) In general.--An eligible contract 
                        participant that enters into or executes an 
                        included energy transaction that performs, or 
                        together with other such transactions performs, 
                        a significant price discovery function in the 
                        cash market for an energy commodity or in any 
                        other market for agreements, contracts, or 
                        transactions relating to an energy commodity, 
                        or an eligible commercial entity that enters 
                        into or executes an included energy transaction 
                        described in section 1a(34)(A) shall--
                                    ``(I) provide to the Commission on 
                                a timely basis the information required 
                                under clause (ii); and
                                    ``(II)(aa) consistent with section 
                                4i, maintain books and records relating 
                                to each included energy transaction, 
                                for a period of at least 5 years after 
                                the date of the transaction, in such 
                                form as the Commission shall require; 
                                and
                                    ``(bb) keep the books and records 
                                open to inspection by any 
                                representative of the Commission or the 
                                Attorney General.
                            ``(ii) Required information.--
                                    ``(I) In general.--The Commission 
                                shall require that such information 
                                regarding included energy transactions 
                                be provided to the Commission as the 
                                Commission considers necessary to 
                                assist in detecting and preventing 
                                price manipulation.
                                    ``(II) Information to be 
                                included.--Such information shall 
                                include information regarding large 
                                trading positions obtained through 1 or 
                                more included energy transactions that 
                                involve--
                                            ``(aa) substantial 
                                        quantities of the commodity in 
                                        the cash market; or
                                            ``(bb) substantial 
                                        positions, investments, or 
                                        trades in agreements or 
                                        contracts related to energy 
                                        commodities.
                                    ``(III) Manner of compliance.--The 
                                Commission shall specify when and how 
                                such information shall be provided and 
                                maintained by eligible contract 
                                participants and eligible commercial 
                                entities.
                                    ``(IV) Price discovery 
                                transactions.--
                                            ``(aa) In general.--In 
                                        specifying the information to 
                                        be provided under this 
                                        paragraph, the Commission shall 
                                        identify the transactions or 
                                        class of transactions that the 
                                        Commission considers to perform 
                                        a significant price discovery 
                                        function.
                                            ``(bb) Considerations.--In 
                                        determining which included 
                                        energy transactions perform a 
                                        significant price discovery 
                                        function, the Commission shall 
                                        consider the extent to which--

                                                    ``(AA) standardized 
                                                agreements are used to 
                                                execute the 
                                                transactions;

                                                    ``(BB) the 
                                                transactions involve 
                                                standardized types or 
                                                measures of a 
                                                commodity;

                                                    ``(CC) the prices 
                                                of the transactions are 
                                                reported to third 
                                                parties, published, or 
                                                disseminated;

                                                    ``(DD) the prices 
                                                of the transactions are 
                                                referenced in other 
                                                transactions; and

                                                    ``(EE) other 
                                                factors considered 
                                                appropriate by the 
                                                Commission.

                                    ``(V) Persons filing.--
                                            ``(aa) In general.--The 
                                        Commission, in its discretion, 
                                        may allow large trader position 
                                        reports required to be provided 
                                        by an eligible commercial 
                                        entity to be provided by an 
                                        electronic energy trading 
                                        facility if the eligible 
                                        commercial entity authorizes 
                                        the facility to provide such 
                                        information on its behalf.
                                            ``(bb) Information and 
                                        enforcement.--Nothing in an 
                                        authorization under item (aa) 
                                        shall impair the ability of the 
                                        Commission to obtain 
                                        information from an eligible 
                                        commercial entity or otherwise 
                                        enforce this Act.
                                    ``(VI) Regulations.--Not later than 
                                180 days after the date of enactment of 
                                this paragraph, the Commission shall 
                                issue a notice of proposed rulemaking, 
                                and not later than 1 year after the 
                                date of enactment of this paragraph, 
                                the Commission shall promulgate final 
                                regulations, specifying the information 
                                to be provided and maintained under 
                                this subparagraph.''.

SEC. 302. ELECTRONIC TRADING FACILITIES FOR ENERGY COMMODITIES.

    Section 2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) is 
amended--
            (1) in paragraph (1), by inserting after ``an exempt 
        commodity'' the following: ``other than an energy commodity'';
            (2) in paragraph (3), by inserting after ``an exempt 
        commodity'' the following: ``other than an energy commodity''; 
        and
            (3) by adding at the end the following:
            ``(7) Energy transactions.--
                    ``(A) In general.--To the extent that the 
                Commission determines to be appropriate under 
                subparagraph (C), an electronic energy trading facility 
                shall--
                            ``(i) be subject to the requirements of 
                        section 5a, to the extent provided in sections 
                        5a(g) and 5d;
                            ``(ii)(I) consistent with section 4i, 
                        maintain books and records relating to the 
                        business of the electronic energy trading 
                        facility, including books and records relating 
                        to each transaction in such form as the 
                        Commission may require; and
                            ``(II) make the books and records required 
                        under this section available to representatives 
                        of the Commission and the Attorney General for 
                        inspection for a period of at least 5 years 
                        after the date of each included energy 
                        transaction;
                            ``(iii) make available to the public 
                        information on trading volumes, settlement 
                        prices, open interest (where applicable), and 
                        opening and closing ranges (or daily highs and 
                        lows, as appropriate) for included energy 
                        transactions; and
                            ``(iv) provide the information to the 
                        Commission in such form and at such times as 
                        the Commission may require.
                    ``(B) Applicability of other provisions.--
                            ``(i) Paragraph 5.--An electronic energy 
                        trading facility shall comply with paragraph 
                        (5).
                            ``(ii) Paragraph 6.--Paragraph (6) shall 
                        apply with respect to a subpoena issued to any 
                        foreign person that the Commission believes is 
                        conducting or has conducted transactions on or 
                        through an electronic energy trading facility.
                    ``(C) Regulations.--Not later than 180 days after 
                the date of enactment of this paragraph, the Commission 
                shall issue a notice of proposed rulemaking, and not 
                later than 1 year after the date of enactment of this 
                paragraph, the Commission shall promulgate final 
                regulations, specifying the information to be provided, 
                maintained, or made available to the public under 
                subparagraphs (A) and (B).
            ``(8) Nondisclosure of proprietary information.--In 
        carrying out paragraph (7) and subsection (g)(2), the 
        Commission shall not--
                    ``(A) require the real-time publication of 
                proprietary information;
                    ``(B) prohibit the commercial sale or licensing of 
                real-time proprietary information; or
                    ``(C) publicly disclose information regarding 
                market positions, business transactions, trade secrets, 
                or names of customers, except as provided in section 
                8.''.

SEC. 303. NO EFFECT ON OTHER AUTHORITY.

    (a) No Effect on FERC Authority.--Nothing contained in this title 
shall affect the jurisdiction of the Federal Energy Regulatory 
Commission with respect to the authority of the Federal Energy 
Regulatory Commission under the Federal Power Act (16 U.S.C. 791a et 
seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other law to 
obtain information or otherwise carry out the responsibilities of the 
Federal Energy Regulatory Commission.
    (b) No Effect on Excluded Commodities.--The amendments made by this 
title have no effect on the regulation of excluded commodities under 
the Commodity Exchange Act (7 U.S.C. 1a et seq.).
    (c) No Effect on Metals.--The amendments made by this title have no 
effect on the regulation of metals under the Commodity Exchange Act (7 
U.S.C. 1a et seq.).

SEC. 304. PROHIBITION OF FRAUDULENT TRANSACTIONS.

    Section 4b of the Commodity Exchange Act (7 U.S.C. 6b) is amended 
by striking subsection (a) and inserting the following:
    ``(a) Prohibitions.--
            ``(1) In general.--It shall be unlawful (A) for any person, 
        in or in connection with any order to make, or the making of, 
        any contract of sale of any commodity for future delivery or in 
        interstate commerce, that is made, or to be made, on or subject 
        to the rules of a designated contract market, for or on behalf 
        of any other person, or (B) for any person, in or in connection 
        with any order to make, or the making of, any contract of sale 
        of any commodity for future delivery or other agreement, 
        contract or transaction subject to paragraphs (1) and (2) of 
        section 5a(g), that is made, or to be made, for or on behalf of 
        or with, any other person, other than on or subject to the 
        rules of a designated contract market--
                    ``(i) to cheat or defraud or attempt to cheat or 
                defraud the other person;
                    ``(ii) willfully to make or cause to be made to 
                such other person any false report or statement or 
                willfully to enter or cause to be entered for the other 
                person any false record;
                    ``(iii) willfully to deceive or attempt to deceive 
                the other person by any means whatsoever in regard to 
                any order or contract or the disposition or execution 
                of any order or contract, or in regard to any act of 
                agency performed, with respect to any order or contract 
                for (or, in the case of a contract described in 
                subparagraph (B), with the other person); or
                    ``(iv)(I) to bucket an order represented by the 
                person as an order to be executed, for or on behalf of 
                the other person, on an organized exchange; or
                    ``(II) to--
                            ``(aa) fill an order by offset against the 
                        order or orders of the other person; or
                            ``(bb) willfully and knowingly and without 
                        the prior consent of the other person, to--
                                    ``(AA) become the buyer in respect 
                                to any selling order of the other 
                                person; or
                                    ``(BB) become the seller in respect 
                                to any buying order of the other 
                                person;
                if the order is to be executed on or subject to the 
                rules of a designated contract market.
            ``(2) Limitation.--This subsection does not obligate any 
        person, in connection with a transaction in a contract of sale 
        of a commodity for future delivery with another person, to 
        disclose to any other person nonpublic information that may be 
        material to the market price of the commodity or transaction, 
        except as necessary to make any statement made to the other 
        person in connection with the transaction not misleading in any 
        material respect.''.

SEC. 305. CRIMINAL AND CIVIL PENALTIES.

    (a) Enforcement Powers of Commission.--Section 6(c) of the 
Commodity Exchange Act (7 U.S.C. 9, 15) is amended in paragraph (3) of 
the tenth sentence--
            (1) by inserting ``(A)'' after ``assess such person''; and
            (2) by inserting after ``each such violation'' the 
        following: ``, or (B) in any case of manipulation of, or 
        attempt to manipulate, the price of any commodity, a civil 
        penalty of not more than the greater of $1,000,000 or triple 
        the monetary gain to such person for each such violation,''.
    (b) Manipulations and Other Violations.--Section 6(d) of the 
Commodity Exchange Act (7 U.S.C. 13b) is amended in the first 
sentence--
            (1) by striking ``paragraph (a) or (b) of section 9 of this 
        Act'' and inserting ``subsection (a), (b), or (f) of section 
        9''; and
            (2) by striking ``said paragraph 9(a) or 9(b)'' and 
        inserting ``subsection (a), (b), or (f) of section 9''.
    (c) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended--
            (1) in the first sentence, by inserting before the period 
        at the end the following: ``, or, in any case of manipulation 
        of, or an attempt to manipulate, the price of any commodity, a 
        civil penalty of not more than $1,000,000 for each such 
        violation''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, except that if the failure or 
        refusal to obey or comply with the order involved any offense 
        under section 9(f), the registered entity, director, officer, 
        agent, or employee shall be guilty of a felony and, on 
        conviction, shall be subject to penalties under section 9(f)''.
    (d) Action To Enjoin or Restrain Violations.--Section 6c(d) of the 
Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended by striking 
``(d)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(d) Civil Penalties.--In any action brought under this section, 
the Commission may seek and the court shall have jurisdiction to 
impose, on a proper showing, on any person found in the action to have 
committed any violation--
            ``(1) a civil penalty in the amount of not more than the 
        greater of $100,000 or triple the monetary gain to the person 
        for each violation; or
            ``(2) in any case of manipulation of, or an attempt to 
        manipulate, the price of any commodity, a civil penalty in the 
        amount of not more than the greater of $1,000,000 or triple the 
        monetary gain to the person for each violation.''.
    (e) Violations Generally.--Section 9(a) of the Commodity Exchange 
Act (7 U.S.C. 13) is amended--
            (1) by striking ``(or $500,000 in the case of a person who 
        is an individual)'';
            (2) by striking ``five years'' and inserting ``10 years''; 
        and
            (3) in paragraph (2), by striking ``false or misleading or 
        knowingly inaccurate reports'' and inserting ``knowingly false, 
        misleading, or inaccurate reports''.

SEC. 306. CONFORMING AMENDMENTS.

    (a) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
amended--
            (1) in subsection (d)(1), by striking ``section 5b'' and 
        inserting ``section 5a(g), 5b,'';
            (2) in subsection (e)(1), by inserting ``(1)'' after 
        ``(g)''; and
            (3) in subsection (i)--
                    (A) in paragraph (1)--
                            (i) by striking ``No provision'' and 
                        inserting ``In general.--Subject to subsections 
                        (g)(2) and (h)(7), no provision''; and
                            (ii) in subparagraph (A), by inserting 
                        ``(1)'' after ``2(g)''; and
                    (B) in paragraph (2), by striking ``No provision'' 
                and inserting ``In general.--Subject to subsections 
                (g)(2) and (h)(7), no provision''.
    (b) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is 
amended in the first sentence by inserting ``, or pursuant to an 
exemption under section 4(c)'' after ``transaction execution 
facility''.
    (c) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 12a(9)) 
is amended--
            (1) by inserting ``or an electronic energy trading 
        facility'' after ``direct the contract market'';
            (2) by inserting after ``liquidation of any futures 
        contract'' the following: ``or included energy transaction''; 
        and
            (3) by inserting ``or an electronic energy trading 
        facility'' after ``given by a contract market''.
                                 <all>