[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6264 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6264

   To prevent excessive speculation in over-the-counter derivatives 
  markets for certain energy commodities by limiting participation in 
 those markets to persons who are capable of producing, manufacturing, 
            or taking physical delivery of the commodities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2008

Mr. Larson of Connecticut (for himself, Mr. LoBiondo, Mr. Courtney, Mr. 
    Kagen, Mr. Wu, Mr. Hill, Mr. Hinchey, and Mr. Welch of Vermont) 
 introduced the following bill; which was referred to the Committee on 
                              Agriculture

_______________________________________________________________________

                                 A BILL


 
   To prevent excessive speculation in over-the-counter derivatives 
  markets for certain energy commodities by limiting participation in 
 those markets to persons who are capable of producing, manufacturing, 
            or taking physical delivery of the commodities.

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

SECTION 1. LIMITATION ON PARTICIPATION IN OVER-THE-COUNTER DERIVATIVES 
              MARKETS FOR CERTAIN ENERGY COMMODITIES.

    (a) In General.--Section 4 of the Commodity Exchange Act (7 U.S.C. 
6) is amended by adding at the end the following:
    ``(e)(1)(A) It shall be unlawful for a person to enter into or 
execute a transaction which involves a specified energy commodity, and 
which is otherwise excluded under section 2(g) or exempted under 
section 2(h), unless the person--
                    ``(i) meets the requirement of paragraph (2)(A) of 
                this subsection; or
                    ``(ii)(I) is purchasing the contract or agreement 
                as an agent of a person who meets the requirement; and
                    ``(II) discloses the identity of the person 
                referred to in subclause (I) of this clause to the 
                seller of the contract.
    ``(B) It shall be unlawful for a person, after the 60-day period 
that begins with the effective date of this subsection, to hold a 
contract or agreement of sale of a specified energy commodity for 
future delivery which is otherwise excluded under section 2(g) or 
exempted under section 2(h), unless the person--
            ``(i) meets the requirement of paragraph (2)(A) or (2)(B) 
        of this subsection; or
            ``(ii) is holding the contract or agreement as an agent of 
        a person who meets the requirement.
    ``(2)(A) A person meets the requirement of this subparagraph with 
respect to a commodity if--
            ``(i) the person has filed with the Commission an affidavit 
        attesting that the person has the capacity to accept physical 
        delivery of the commodity; and
            ``(ii) the Commission has certified that the person has the 
        capacity.
    ``(B) A person meets the requirement of this subparagraph with 
respect to a commodity if--
            ``(i) the person has filed with the Commission an affidavit 
        attesting that the person has the capacity to produce or 
        manufacture the commodity; and
            ``(ii) the Commission has certified that the person has the 
        capacity.
    ``(3) In this subsection, the term `specified energy commodity' 
means crude oil, heating oil, gasoline, or diesel fuel.''.
    (b) Conforming Amendments.--
            (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by 
        inserting ``4(e),'' before ``5a''.
            (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
        amended by striking ``5b'' and inserting ``4(e), 5b''.
                                 <all>