1.Short
title; table of contents
(a)This Act may be cited
as the Stop Excessive Energy
Speculation Act of 2008
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Definition of energy commodity.
Sec. 3. Speculative limits and transparency of off-shore
trading.
Sec. 4. Authority of Commodity Futures Trading Commission with
respect to certain traders.
Sec. 5. Working group of international regulators.
Sec. 6. Elimination of manipulation and excessive speculation
as cause of high oil, gas, and energy prices.
Sec. 7. Large over-the-counter transactions.
Sec. 8. Index traders and swap dealers.
Sec. 9. Disaggregation of index funds and other data in energy
markets.
Sec. 10. Additional Commodity Futures Trading Commission
employees for improved enforcement.
Sec. 11. Working Group on Energy Markets.
Sec. 12. Study of regulatory framework for energy
markets.
Sec. 13. Collection and analysis of information on energy
commodities.
Sec. 14. National natural gas market investigation.
Sec. 15. Studies; reports.
Sec. 16. Expedited procedures.
2.Definition of
energy commodity
(a)Definition of energy
commoditySection 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)The term energy commodity
means—
(A)a petroleum
product; and
(B)natural
gas.
.
(b)
(1)Section
2(c)(2)(B)(i)(II)(cc) of the Commodity Exchange Act (7 U.S.C.
2(c)(2)(B)(i)(II)(cc)) is amended—
(A)in subitem (AA),
by striking section 1a(20)
and inserting section
1a(21)
; and
(B)in subitem (BB),
by striking section 1a(20)
and inserting section
1a(21)
.
(2)Section
13106(b)(1) of the Food, Conservation, and Energy Act of 2008 is amended by
striking section 1a(32)
and inserting section
1a
.
(3)Section 402 of
the Legal Certainty for Bank Products Act of 2000 (7 U.S.C. 27) is
amended—
(A)in subsection
(a)(7), by striking section 1a(20)
and inserting section
1a
; and
(B)in subsection
(d)—
(i)in paragraph
(1)(B), by striking section 1a(33)
and inserting section
1a
; and
(ii)in paragraph
(2)(D), by striking section 1a(13)
and inserting section
1a
.
3.Speculative
limits and transparency of off-shore tradingSection 4 of the Commodity Exchange Act (7
U.S.C. 6) is amended by adding at the end the following:
(e)
(1)The Commission may not permit a foreign board of trade to
provide to the members of the foreign board of trade or other participants
located in the United States, or otherwise subject to the jurisdiction of the
Commission, direct access to the electronic trading and order matching system
of the foreign board of trade with respect to an agreement, contract, or
transaction in an energy commodity that settles against any price (including
the daily or final settlement price) of 1 or more contracts listed for trading
on a registered entity, unless—
(A)the foreign board
of trade—
(i)makes public
daily trading information regarding the agreement, contract, or transaction
that is comparable to the daily trading information published by the registered
entity for the 1 or more contracts against which the foreign board of trade
settles; and
(ii)promptly
notifies the Commission of any change regarding—
(I)the information
that the foreign board of trade will make publicly available;
(II)the position
limits, speculation limits, and position accountability provisions that the
foreign board of trade will adopt and enforce;
(III)the position
reductions required to prevent manipulation; and
(IV)any other area
of interest expressed by the Commission to the foreign board of trade;
and
(B)the foreign board
of trade (or the foreign futures authority that oversees the foreign board of
trade)—
(i)adopts position
limits (including related hedge exemption provisions), speculation limits, or
position accountability provisions for speculators for the agreement, contract,
or transaction that are comparable to the position limits (including related
hedge exemption provisions), speculation limits, or position accountability
provisions adopted by the registered entity for the 1 or more contracts against
which the foreign board of trade settles;
(ii)has the
authority to require or direct market participants to limit, reduce, or
liquidate any position the foreign board of trade (or the foreign futures
authority that oversees the foreign board of trade) determines to be necessary
to prevent or reduce the threat of price manipulation, excessive speculation,
price distortion, or disruption of delivery or the cash settlement process;
and
(iii)provides
information to the Commission regarding the extent of legitimate and
nonlegitimate hedge trading in the agreement, contract, or transaction that is
comparable to the information that the Commission determines to be necessary to
publish the commitments of traders report of the Commission for the 1 or more
contracts against which the foreign board of trade settles.
(2)Existing
foreign boards of tradeParagraph (1) shall not be effective with
respect to any agreement, contract, or transaction in an energy commodity
executed on a foreign board of trade to which the Commission had granted direct
access permission prior to the date of enactment of this subsection until the
date that is 180 days after the date of enactment of this
subsection.
.
4.Authority of
Commodity Futures Trading Commission with respect to certain traders
(a)
(1)Restriction of
futures trading to contract markets or derivatives transaction execution
facilitiesSection 4(b) of the Commodity Exchange Act (7 U.S.C.
6(b)) is amended by inserting after the first sentence the following:
The Commission may adopt rules and regulations requiring the maintenance
of books and records by any person that is located within the United States
(including the territories and possessions of the United States) or that enters
trades directly into the trade matching system of a foreign board of trade from
the United States (including the territories and possessions of the United
States).
(2)Excessive
speculation as a burden on interstate commerceSection 4a of the
Commodity Exchange Act (7 U.S.C. 6a) is amended—
(A)in subsection
(e), in the second sentence—
(i)by
striking this Act for any person
and inserting this Act
for (1) any person
; and
(ii)by
inserting after to section 5c(c)(1)
the following: , and
(2) any person that is located within the United States (including the
territories and possessions of the United States) or that enters trades
directly into the trade matching system of a foreign board of trade from the
United States (including the territories and possessions of the United States)
to violate any bylaw, rule, regulation, or resolution of any foreign board of
trade or foreign futures authority fixing limits on the amount of trading that
may be carried out or positions that may be held under any contract of sale of
an energy commodity for future delivery or under any option on such contract or
energy commodity, that settles against any price (including the daily or final
settlement price) of 1 or more contracts listed for trading on a registered
entity
; and
(B)by adding at the
end the following:
(f)Before
taking any action under subsection (e), the Commission shall consult with the
appropriate—
(1)foreign board of
trade; and
(2)foreign futures
authority.
.
(3)Section
9(a) of the Commodity Exchange Act (7 U.S.C. 13(a)) is amended by inserting
(including any person trading on a foreign board of trade)
after
Any person
each place it appears.
(4)No
amendment made by this subsection limits any of the otherwise applicable
authorities of the Commodity Futures Trading Commission.
5.Working group of
international regulatorsSection 4a of the Commodity Exchange Act (7
U.S.C. 6a) (as amended by section 4(a)(2)(B)) is amended by adding at the end
the following:
(g)Working group
of international regulatorsNot later than 90 days after the date
of enactment of this subsection, the Commission shall convene a working group
of international regulators to develop uniform international reporting and
regulatory standards to ensure the protection of the energy futures markets
from nonlegitimate hedge trading, excessive speculation, manipulation, location
shopping, and lowest common dominator regulation, each of which pose systemic
risks to all energy futures markets, countries, and
consumers.
.
6.Elimination of
manipulation and excessive speculation as cause of high oil, gas, and energy
pricesSection 4a of the
Commodity Exchange Act (7 U.S.C. 6a) (as amended by section 5) is amended by
adding at the end the following:
(h)Elimination of
excessive speculation and nonlegitimate hedge trading as a cause of high oil,
gas, and energy prices
(1)Definition of
legitimate hedge trading
(A)The term legitimate hedge trading means the
conduct of trading that involves transactions by commercial producers and
purchasers of actual physical petroleum and energy commodities for future
delivery and the direct counterparties to such trades (regardless of whether
the counterparties are commercial producers or purchasers).
(B)To
the extent a commercial producer or purchaser of an actual physical energy
commodity for future delivery trades with an intermediary (referred to in this
subparagraph as an initial trade
), each subsequent trade by the
intermediary arising solely due to the initial trade and that directly results
from such initial trade (referred to in this subparagraph as a follow-on
trade
) shall be considered to be the conduct of legitimate hedge
trading if each follow-on trade executed by the intermediary is—
(i)done proximate to
the initial trade; and
(ii)in the
aggregate, economically the same in size and substance as the initial
trade.
(2)Identification
of legitimate hedge tradingIn carrying out this Act, the
Commission shall distinguish between—
(A)legitimate hedge
trading; and
(B)all other trading
in energy commodities.
(3)Notwithstanding any other provision of this Act, the
Commission shall modify (or delegate any appropriate entity to modify) such
definitions, classifications, and data collection under this Act as are
necessary to ensure that all direct and indirect parties and counterparties to
all trades in the energy commodities market are clearly identified for all
purposes as engaging in—
(A)legitimate hedge
trading; or
(B)any other type of
trading.
(4)Elimination of
excessive speculation
(A)Notwithstanding any other provision of this Act, the
Commission shall review all regulations, rules, exemptions, exclusions,
guidance, no action letters, orders, and other actions taken by or on behalf of
the Commission (including any action or inaction taken pursuant to delegated
authority by an exchange, self-regulatory organization, or any other entity)
regarding all energy futures market participants or market activity (referred
to in this subsection individually as a prior action
) to ensure
that—
(i)legitimate hedge
trading is protected and promoted; and
(ii)excessive
speculation is eliminated.
(B)
(i)The Commission shall consider modifying or revoking the
application after the date of enactment of this subsection of any prior action
taken by the Commission (including any prior action taken pursuant to delegated
authority by any other entity) with respect to any trade on any market,
exchange, foreign board of trade, swap or swap transaction, index or index
market participant or trade, hedge fund, pension fund, and any other
transaction, trade, trader, or petroleum or energy futures market activity
unless the Commission affirmatively determines that such prior action will
protect and promote legitimate hedge trading and does not permit or encourage
excessive speculation.
(ii)In
carrying out this subparagraph, the Commission shall consider modifying or
revoking the results of each prior action that, in whole or in part, has the
direct or indirect affect of limiting, reducing, or eliminating the filing of
any report or data regarding any direct or indirect trade or trader, including
the filing of large trader reports.
(C)Speculative
position limits applicable to nonlegitimate hedge trading in energy commodities
and derivatives
(i)Speculative
position limits
(I)Not later than 30 days after the date of enactment of
this subsection, the Commission shall impose, by rule, regulation, or order,
speculative position limits on trading that is not legitimate hedge
trading.
(II)The
Commission shall apply the limits imposed under subclause (I) to any person who
executes accounts, agreements, or transactions involving an energy commodity
for the own account of the person and to any person for whom an agent in fact
or substance executes accounts, agreements, or transactions involving an energy
commodity, on a registered entity or in covered over-the-counter
trading.
(ii)
(I)Not later than 30 days after the date of enactment of
this subsection, the Commission shall convene an advisory group primarily
consisting of commercial producers and purchasers of actual physical energy
commodities for future delivery.
(II)Not
later than 60 days after the date on which the advisory group is convened under
subclause (I), and annually thereafter, the advisory group shall submit to the
Commission recommendations regarding an appropriate level for position
limits—
- (aa)that are
designed for traders or entities that are not legitimate hedge traders;
and
- (bb)to
replace the position limits imposed by the Commission under clause
(i)(I).
(III)The advisory group shall be subject to the Federal
Advisory Committee Act (5 U.S.C. App.).
(iii)Review of
recommendationsNot later than 270 days after the date of
enactment of this subsection, the Commission shall—
(I)analyze and
review the recommendations submitted by the advisory group under clause
(ii)(II); and
(II)submit to the
appropriate committees of Congress a report describing each recommendation
(including each modification to the statutory authority of the Commission that
the Commission determines to be necessary to effectuate each
recommendation).
(iv)
(I)Not later than 18 months after the date of enactment of
this subsection, the Commission shall promulgate a final rule that establishes
speculative position limits—
- (aa)for any person
engaged in nonlegitimate hedge trading of an energy commodity; and
- (bb)that are
consistent with this Act.
(II)The final rule described in subclause (I) shall take effect
on the date that is 30 days after the date on which the Commission promulgates
the final rule.
(v)Development of
methodology
(I)Not later than 180 days after the date of enactment of
this subsection, the Commission shall propose a methodology to determine and
set aggregate speculative position limits at the control entity level for all
nonlegitimate traders of energy commodities—
- (aa)on
designated contract markets;
- (bb)on
derivatives transaction execution facilities; and
- (cc)in
over-the-counter commodity derivatives.
(II)Not
later than 180 days after the date of enactment of this subsection, the
Commission shall submit to the appropriate committees of Congress a report that
contains—
- (aa)any
recommendations regarding any additional statutory authority that the
Commission determines to be necessary for the imposition of the speculative
position limits described in subclause (I); and
- (bb)a
description of the resources that the Commission considers to be necessary to
implement the speculative position limits.
(D)Maximum level
of speculative position limits
(i)In establishing speculative position limits under this
section (including subparagraph (C)(iv)), the Commission shall set the limits
at the maximum level practicable—
(I)to ensure
sufficient market liquidity for the conduct of legitimate hedging
activities;
(II)to ensure that
price discovery is not disrupted;
(III)to protect and
promote legitimate hedge trading;
(IV)to minimize
nonlegitimate hedge trading; and
(V)to eliminate
excess speculation.
(ii)
(I)Nothing in this subparagraph modifies the spot month
position limitation of 3,000 contracts that is designed to prevent a corner or
squeeze at the delivery date.
(II)If the Commission sets position limits under clause (i)
that are different from the spot month position limit described in subclause
(I), the Commission shall include in the report required under subparagraph
(C)(v)(II) an analysis describing the reasons for the position
limits.
.
7.Large
over-the-counter transactionsSection 2 of the Commodity Exchange Act (7
U.S.C. 2) is amended by adding at the end the following:
(j)Over-the-counter
transactions
(1)In
this subsection:
(A)Covered
over-the-counter transactionThe term covered
over-the-counter transaction means an over-the-counter transaction the
reporting of which is required by the Commission as the result of a
determination made under paragraph (3)(C).
(B)The term covered person means a person that
enters into a covered over-the-counter transaction.
(C)The term major market disturbance means
any disturbance in a commodity market that disrupts the liquidity and price
discovery function of that market from accurately reflecting the forces of
supply and demand for a commodity, including—
(i)a
threatened or actual market manipulation or corner;
(ii)excessive
speculation;
(iii)nonlegitimate
hedge trading; and
(iv)any action of
the United States or a foreign government that affects a commodity.
(D)The term market disturbance shall be
interpreted in accordance with section 8a(9)).
(E)Over-the-counter
transactionThe term over-the-counter transaction
means a contract, agreement, or transaction in a petroleum or energy commodity
that is—
(i)entered into only
between persons that are eligible contract participants at the time the persons
enter into the agreement, contract, or transaction;
(ii)not entered into
on a trading facility; and
(iii)not a sale of
any cash commodity for deferred shipment or delivery.
(2)Commission
oversight authority
(A)In the case of a major market disturbance, as determined
by the Commission, the Commission may require any trader subject to the
reporting requirements described in paragraph (3) to take such action as the
Commission considers to be necessary to maintain or restore orderly trading in
any contract listed for trading on a registered entity, including—
(i)the liquidation
of any over-the-counter transaction; and
(ii)the fixing of
any limit that may apply to a market position involving any over-the-counter
transaction acquired in good faith before the date of the determination of the
Commission.
(B)Any action taken by the Commission under subparagraph (A)
shall be subject to judicial review carried out in accordance with section
8a(9).
(3)
(A)The Commission shall require each covered person to
submit to the Commission a report—
(i)at such time and
in such manner as the Commission determines to be appropriate; and
(ii)containing the
information required under subparagraph (B) to assist the Commission in
detecting and preventing potential price manipulation of, or excessive
speculation in, any contract listed for trading on a registered entity.
(B)A report required under subparagraph (A) shall
contain—
(i)information
describing large trading positions of the covered person obtained through 1 or
more over-the-counter transactions that involve—
(I)substantial
quantities of a commodity in the cash market; or
(II)substantial
positions, investments, or trades in agreements or contracts relating to the
commodity;
(ii)any other
information relating to each covered over-the-counter transaction carried out
by the covered person that the Commission determines to be necessary to
accomplish the purposes described in subparagraph (A); and
(iii)information
distinguishing legitimate hedge trading from nonlegitimate hedge
trading.
(C)Determination
of covered over-the-counter transactions
(i)The Commission shall identify each large over-the-counter
transaction or class of large over-the-counter transactions the reporting of
which the Commission determines to be appropriate to assist the Commission in
detecting and preventing potential price manipulation of, or excessive
speculation in, any contract listed for trading on a registered entity.
(ii)Mandatory
factors for determinations
(I)In carrying out a determination under clause (i), the
Commission shall consider the extent to which each factor described in
subclause (II) applies.
(II)The
factors required for carrying out a determination under clause (i) include
whether—
- (aa)a
standardized agreement is used to execute the over-the-counter
transaction;
- (bb)the
over-the-counter transaction settles against any price (including the daily or
final settlement price) of 1 or more contracts listed for trading on a
registered entity;
- (cc)the price of the
over-the-counter transaction is reported to a third party, published, or
otherwise disseminated;
- (dd)the price of the
over-the-counter transaction is referenced in any other transaction;
- (ee)there is a
significant volume of the over-the-counter transaction or class of
over-the-counter transactions; and
- (ff)there is any
other factor that the Commission determines to be appropriate.
(D)The
Commission, by rule, shall require each covered person—
(i)in accordance
with section 4i, to maintain such records as directed by the Commission for a
period of 5 years, or longer, if directed by the Commission; and
(ii)to provide such
records upon request to the Commission or the Department of Justice.
(4)Protection of
proprietary informationIn carrying out this subsection, the
Commission may not—
(A)require the
real-time publication of any proprietary information;
(B)prohibit the
commercial sale or licensing of any real-time proprietary information;
and
(C)except as
provided in section 8, publicly disclose any information relating to any market
position, business transaction, trade secret, or name of any customer of a
covered person.
(5)Notwithstanding
subsections (g) and (h), and any exemption issued by the Commission for any
energy commodity, each over-the-counter transaction shall be subject to this
subsection.
(6)Nothing in this subsection modifies or alters—
(A)the guidance of
the Commission; or
(B)any applicable
requirements with respect the disclosure of proprietary
information.
.
8.Index traders
and swap dealersSection 4 of
the Commodity Exchange Act (7 U.S.C. 6) (as amended by section 3) is amended by
adding at the end the following:
(f)Index traders
and swap dealersNot later than 60 days after the date of
enactment of this subsection, the Commission shall—
(1)routinely require
detailed reporting from index traders and swap dealers in markets under the
jurisdiction of the Commission;
(2)reclassify the
types of traders for regulatory and reporting purposes to distinguish between
index traders and swaps dealers;
(3)review the
trading practices for index traders in markets under the jurisdiction of the
Commission—
(A)to ensure that
index trading is not adversely impacting the price discovery process;
and
(B)to determine
whether different practices or regulations should be implemented; and
(4)ensure, to the
maximum extent practicable, that the reports required under this subsection
distinguish between legitimate and nonlegitimate hedge
trading.
.
9.Disaggregation
of index funds and other data in energy marketsSection 4 of the Commodity Exchange Act (7
U.S.C. 6) (as amended by section 8) is amended by adding at the end the
following:
(g)Disaggregation
of index funds and other data in energy marketsThe Commission
shall disaggregate and make public monthly—
(1)the number of
positions and total value of index funds and other passive, long-only positions
in energy markets; and
(2)data on
speculative positions relative to bona fide physical hedgers in those
markets.
.
10.Additional
Commodity Futures Trading Commission employees for improved
enforcementSection 2(a)(7) of
the Commodity Exchange Act (7 U.S.C. 2(a)(7)) is amended by adding at the end
the following:
(D)As soon as practicable after the date of enactment of
this subparagraph, the Commission shall appoint at least 100 full-time
employees (in addition to the employees employed by the Commission as of the
date of enactment of this subparagraph)—
(i)to increase the
public transparency of operations in energy futures markets;
(ii)to improve the
enforcement of this Act in those markets; and
(iii)to carry out
such other duties as are prescribed by the
Commission.
.
11.Working Group
on Energy Markets
(a)There
is established a Working Group on Energy Markets.
(b)The
Working Group shall be composed of—
(1)the Secretary of
Energy (referred to in this section as the Secretary);
(2)the Secretary of
the Treasury;
(3)the Chairman of
the Federal Energy Regulatory Commission;
(4)the Chairman of
Federal Trade Commission;
(5)the Chairman of
the Securities and Exchange Commission;
(6)the Chairman of
the Commodity Futures Trading Commission; and
(7)the Administrator
of the Energy Information Administration.
(c)
(1)The Secretary
shall serve as the Chairperson of the Working Group for the 1-year period
beginning on the date of enactment of this Act.
(2)For each 1-year
period following the period described in paragraph (1), each individual
described in subsection (b) shall serve as the Chairperson of the Working Group
in the order corresponding to which the individual is described in that
subsection.
(d)The Working Group shall—
(1)investigate the
effect of speculation in energy commodities on energy prices and the energy
security of the United States;
(2)recommend to the
President and Congress laws (including regulations) that may be needed to
prevent excessive speculation in energy commodities to prevent or minimize the
adverse impact of high energy prices on consumers and the economy of the United
States; and
(3)review energy
security considerations posed by developments in international energy
markets.
(e)The
Secretary shall provide the Working Group with such administrative and support
services as may be necessary for the performance of the functions of the
Working Group.
(f)Cooperation of
other agenciesThe heads of Executive departments, agencies, and
independent instrumentalities shall, to the extent permitted by law, provide
the Working Group with such information as the Working Group requires to carry
out this section.
(g)The
Working Group shall consult, as appropriate, with representatives of the
various exchanges, clearinghouses, self-regulatory bodies, other major market
participants, consumers, and the general public.
12.Study of
regulatory framework for energy markets
(a)The
Working Group established under section 11(a) shall conduct a study to—
(1)identify the
factors that affect the pricing of crude oil and refined petroleum products,
including an examination of the effects of market speculation on prices;
and
(2)review and assess
the roles, missions, and structures of relevant Federal agencies, examine
interagency coordination, and identify and assess the gaps that need to be
filled for the Federal Government to effectively oversee and regulate markets
critical to the energy security of the United States.
(b)The study shall include—
(1)an examination of
price formation with respect to crude oil and refined petroleum
products;
(2)an examination of
relevant international regulatory regimes; and
(3)an examination of
the degree to which changes in energy market transparency, liquidity, and
structure have influenced or driven abuse, manipulation, excessive speculation,
or inefficient price formation.
(c)Report and
recommendationsNot later than 1 year after the date of enactment
of this Act, the Secretary of Energy shall submit to the appropriate committees
of Congress a report that—
(1)describes the
results of the study; and
(2)provides options
and the recommendations of the Working Group for appropriate Federal
coordination of oversight and regulatory actions to ensure transparency of
crude oil and refined petroleum product pricing and the elimination of
excessive speculation.
(d)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this section.
13.Collection and
analysis of information on energy commodities
(a)Accurate and
complete information on energy producing companiesSection
205(h)(1) of the Department of Energy Organization Act (42 U.S.C. 7135(h)(1))
is amended by adding at the end the following:
(C)Information on
energy-producing companiesNotwithstanding any other provision of
law, the head of each Federal department or agency shall provide to the
Administrator, on the request of the Administrator, such information as the
Administrator may require to identify each energy-producing
company.
.
(b)Enhanced data
on ownership of critical energy commoditiesSection 205 of the
Department of Energy Organization Act (42 U.S.C. 7135) is amended by adding at
the end the following:
(n)Collection of
information on ownership of energy commodities
(1)To ensure transparency of information with respect to
critical energy infrastructure and product ownership in the United States, the
Administrator shall collect on a weekly basis information identifying the
ownership of all commercially held oil and natural gas inventories in the
United States.
(2)The information shall include company-specific data,
including—
(A)volumes of
product under ownership; and
(B)storage and
transportation capacity (including owned and leased capacity).
(3)Protection of
proprietary informationSection 11(d) of the Energy Supply and
Environmental Coordination Act of 1974 (15 U.S.C. 796(d)) shall apply to
information collected under this section.
(o)Monthly
reporting on energy commodity transactions
(1)In accordance with paragraph (2), to improve the ability
to evaluate the energy security of the United States, any person holding or
controlling energy futures contracts or energy commodity swaps (as defined in
section 202 of the Energy Policy and Conservation Act) at a level to be
determined by the Secretary for which the underlying energy commodity is
physically delivered within the United States shall report on a monthly basis,
with respect to the energy commodities and the byproducts of the energy
commodities—
(A)the quantity of
physical stocks owned;
(B)the quantity of
fixed price purchase commitments open;
(C)the quantity of
fixed price sales commitments open;
(D)the physical
storage capacity owned or leased; and
(E)such other
information as the Secretary determines is necessary to provide adequate
transparency with respect to entities that control critical energy assets in
the United States.
(2)Any data collected under paragraph (1) shall not be made
public in a manner that is inconsistent with this Act.
(p)Financial
Market Analysis Office
(1)There
shall be within the Energy Information Administration a Financial Market
Analysis Office, headed by a director, who shall report directly to the
Administrator of the Energy Information Administration.
(2)The
Office shall be responsible for analysis of the financial aspects of energy
markets.
(3)The
Administrator of the Energy Information Administration shall take analyses by
the Office into account in conducting analyses and forecasting of energy
prices.
.
(c)Section 645 of the Department of Energy Organization
Act (42 U.S.C. 7255) is amended by inserting (15 U.S.C. 3301 et seq.)
and the Natural Gas Act (15 U.S.C. 717 et seq.)
after Natural
Gas Policy Act of 1978
.
14.National
natural gas market investigation
(a)Not later than 30 days after the date of enactment of
this Act, in order to ensure the integrity of natural gas markets, the Federal
Energy Regulatory Commission (referred to in this section as the
Commission
) shall commence an investigation into the role of
financial institutions in natural gas markets, including—
(1)trends in
investment in natural gas storage, transportation capacity, and pipeline
infrastructure;
(2)factors
contributing to potential effects on wholesale natural gas prices, including
the mechanisms covered by physical natural gas supply contracts;
(3)the character and
number of positions held in related financial markets; and
(4)any international
considerations the Commission considers relevant.
(b)The
Commission may include in the investigation an assessment of real-time market
dynamics during the 2008 winter heating season.
(c)Each Federal department and agency shall comply with any
request from the Commission for records, papers, and information in the
possession of the department or agency relating to any agreement, contract, or
transaction for the sale of an energy commodity for future delivery in
interstate or foreign commerce, or any energy commodity swap.
(d)Not
later than 270 days after the date of enactment of this Act, the Commission
shall submit to the Committee on Energy and Natural Resources of the Senate and
the Committee on Energy and Commerce of the House of Representatives a report
on the findings, conclusions, and recommendations of the investigation
conducted under this section.
(e)Additional
investigationsOn an annual basis and during any other period the
Commission determines necessary, the Commission shall—
(1)conduct an
investigation that is similar to the investigation required under subsections
(a) through (c); and
(2)submit to the
Committee on Energy and Natural Resources of the Senate and the Committee on
Energy and Commerce of the House of Representatives a report on the findings,
conclusions, and recommendations of the investigation.
(f)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this section.
15.
(a)Study relating
to international regulation of energy commodity markets
(1)The Comptroller
General of the United States shall conduct a study of the international regime
for regulating the trading of energy commodity futures and derivatives.
(2)The
study shall include an analysis of, at a minimum—
(A)key common
features and differences among countries in the regulation of energy commodity
trading, including with respect to market oversight and enforcement standards
and activities;
(B)variations among
countries with respect to the use of position limits, accountability limits, or
other thresholds to detect and prevent price manipulation, excessive
speculation, or other unfair trading practices;
(C)variations in
practices regarding the differentiation of commercial and noncommercial
trading;
(D)agreements and
practices for sharing market and trading data among regulatory bodies and among
individual regulators and the entities that the bodies and regulators oversee;
and
(E)agreements and
practices for facilitating international cooperation on market oversight,
compliance, and enforcement.
(3)Not
later than 1 year after the date of enactment of this Act, the Comptroller
General shall submit to the appropriate committees of Congress a report
that—
(A)describes the
results of the study;
(B)addresses the
effects of excessive speculation and energy price volatility on energy futures;
and
(C)provides
recommendations to improve openness, transparency, and other necessary elements
of a properly functioning market in a manner that protects consumers in the
United States.
(b)Study relating
to effects of noncommercial speculators on energy futures markets and energy
prices
(1)The
Comptroller General of the United States shall conduct a study of the effects
of noncommercial speculators on energy futures markets and energy
prices.
(2)The
study shall include an analysis of, at a minimum—
(A)the effect of
increased amounts of capital in energy futures markets;
(B)the impact of the
roll-over of positions by index fund traders and swap dealers on energy futures
markets and energy prices; and
(C)the extent to
which each factor described in subparagraphs (A) and (B) and noncommercial
speculators—
(i)affect—
(I)the pricing of
energy commodities; and
(II)risk management
functions; and
(ii)contribute to
economically efficient price discovery.
(3)Not
later than 2 years after the date of enactment of this Act, the Comptroller
General shall submit to the appropriate committees of Congress a report that
describes the results of the study.
(c)Reports of
Commodity Futures Trading Commission
(1)The Commission shall submit to Congress—
(A)not later than 60
days after the date of enactment of this Act, a report that describes in detail
the actions the Commission has taken, is taking, and intends to take to carry
out this subsection (including any recommended legislative changes that are
necessary to carry out this subsection); and
(B)not later than 45
days after the date described in subparagraph (A) and every 45 days thereafter
until the date of implementation of this subsection, an update on the report
required under subparagraph (A).
(2)Additional
employees or resourcesNot
later than 60 days after the date of enactment of this Act, the Commission
shall submit to Congress a report that describes the number of additional
positions and resources that the Commission determines to be necessary to carry
out this subsection (including the specific duty of each additional
employee).
16.
(a)Subject to subsection (b), the Commodity Futures Trading
Commission (referred to in this section as the Commission) shall
use emergency and expedited procedures (including any administrative or other
procedure as appropriate) to carry out this Act (including the amendments made
by this Act).
(b)If
the Commission decides not to use the procedures described in subsection (a) in
a specific instance, not later than 30 days after the date of the decision, the
Commission shall submit to Congress a detailed report that describes in each
instance the reasons for not using the procedures.
July 16, 2008
Read the second time and placed on the
Calendar