[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6372 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6372

To reestablish standards from the Commodity Exchange Act to provide for 
 the regulation of United States markets in energy commodity futures, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2008

   Mr. Hill introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To reestablish standards from the Commodity Exchange Act to provide for 
 the regulation of United States markets in energy commodity futures, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Commodity Futures Restoration Act''.

SEC. 2. JURISDICTION OF THE COMMODITY FUTURES TRADING COMMISSION 
              EXTENDED TO DERIVATIVES INVOLVING ENERGY COMMODITIES.

    (a) Removal of Energy Commodities From Definition of Exempt 
Commodity.--Section 1a(14) of the Commodity Exchange Act (7 U.S.C. 
1a(14)) is amended by inserting ``, an energy commodity,'' after 
``excluded commodity''.
    (b) Energy Commodity Defined.--Section 1a of the Commodity Exchange 
Act (7 U.S.C. 1a) is amended--
            (1) by redesignating paragraphs (13) through (34) as 
        paragraphs (14) through (35), respectively; and
            (2) by inserting after paragraph (12) the following:
            ``(13) Energy commodity.--The term `energy commodity' 
        means--
                    ``(A) coal;
                    ``(B) crude oil, gasoline, diesel fuel, heating 
                oil, and propane;
                    ``(C) electricity;
                    ``(D) natural gas; and
                    ``(E) any other commodity (other than an excluded 
                commodity, a metal, or an agricultural commodity) that 
                is used as a source of energy, as the Commission deems 
                appropriate.''.

SEC. 3. NARROWING OF THE FOREIGN BOARD OF TRADE EXCEPTION TO THE 
              REQUIREMENT THAT CERTAIN FUTURES TRANSACTIONS BE 
              CONDUCTED ON OR THROUGH A DESIGNATED CONTRACT MARKET OR 
              DERIVATIVES TRANSACTION EXECUTION FACILITY.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by 
adding at the end the following:
    ``(e)(1) For purposes of this Act, a board of trade, exchange, or 
market shall not be considered to be foreign or located outside the 
United States if--
            ``(A) the board of trade, exchange, or market has an 
        affiliate located in the United States;
            ``(B) a contract of sale of a commodity other than an 
        exempt commodity for future delivery in the United States is 
        executed or traded on or through the board of trade, exchange, 
        or market; or
            ``(C) a significant price discovery contract is executed or 
        traded on or through the board of trade, exchange, or market.
    ``(2) For the purposes of paragraph (1)(A), an entity is deemed to 
be an affiliate of a board of trade, exchange or market if--
            ``(A) the entity owns 50 percent or more of the board of 
        trade, exchange, or market;
            ``(B) the board, exchange, or market owns 50 percent or 
        more of the entity; or
            ``(C) a third person owns 50 percent or more of the entity 
        and 50 percent or more of the board of trade, exchange, or 
        market.''.

SEC. 4. JURISDICTION OF THE COMMODITY FUTURES TRADING COMMISSION 
              EXTENDED TO SWAPS INVOLVING AN ENERGY COMMODITY.

    (a) Elimination of Exemption for Excluded Swap Transactions 
Involving an Energy Commodity.--Section 2(g) of the Commodity Exchange 
Act (7 U.S.C. 2(g)) is amended by inserting ``or an energy commodity'' 
after ``agricultural commodity''.
    (b) Swaps Involving an Energy Commodity To Be Taken Into Account in 
Determining Compliance With Position and Transaction Limits, Without 
Regard to Exemption for Bona Fide Hedging Transactions.--Section 4a(c) 
of such Act (7 U.S.C. 6a(c)) is amended by adding at the end the 
following: ``The preceding provisions of this subsection shall not 
apply to swaps that involve an energy commodity.''.

SEC. 5. PROGRESS REPORT.

    (a) Report on Limits Fixed With Respect to Energy Commodities.--
Within 90 day after the effective date of this Act, the Commodity 
Futures Trading Commission shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report on--
            (1) the progress of the Commission in implementing the 
        amendments made by the preceding provisions of this Act, 
        including an explanation of--
                    (A) any exemptions provided by the Commission from 
                the requirements resulting from any such amendment; and
                    (B) if the Commission has not established position 
                limits with respect to contracts of sale of an energy 
                commodity for future delivery, why the Commission has 
                not done so; and
            (2) any margin requirements applicable to transactions in 
        the contracts.
    (b) Definitions.--The terms used in subsection (a) shall have the 
meanings given the terms in the Commodity Exchange Act.

SEC. 6. FEDERAL ENERGY REGULATORY COMMISSION OVERSIGHT.

    Nothing in this Act shall affect the authority of the Federal 
Energy Regulatory Commission under the Natural Gas Act (15 U.S.C. 717 
et seq.) or any other law to obtain information or otherwise carry out 
the responsibilities of the Federal Energy Regulatory Commission.

SEC. 7. FEDERAL TRADE COMMISSION AUTHORITY OVER MARKET MANIPULATION.

    Nothing in this Act shall be construed as interfering with the 
prohibition contained in subtitle B of title VIII of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17301 et seq.) or the 
authority of the Federal Trade Commission to enforce such subtitle.

SEC. 8. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect 6 
months after the date of the enactment of this Act.
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