[Congressional Record Volume 154, Number 97 (Thursday, June 12, 2008)]
[Senate]
[Page S5632]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Florida:

[[Page S5632]]

  S. 3134. A bill to amend the Commodity Exchange Act to require energy 
commodities to be traded only on regulated markets, and for other 
purposes; to the Committee on Agriculture, Nutrition, and Forestry.
  Mr. NELSON of Florida. Mr. President, many experts have concluded 
that the skyrocketing price of oil reflects not just the realities of 
supply and demand but also the influence of speculators and futures 
traders. Many of these speculators work for funds and investment banks 
with no actual inventory of oil, and thus no business need to hedge 
against an increase in the price of oil. Put simply, they enter the 
energy futures market to make a profit by gambling on the price per 
barrel.
  Last month, with passage of the Farm Bill, the Congress finally 
succeeded in bringing a measure of oversight and transparency to this 
market, requiring the Commodities Future Trading Commission, CFTC, to 
review all contracts to determine which ones should be regulated as 
though traded on a major public exchange.
  While this was a step in the right direction, and the result of much 
thoughtful discussion and debate, it could be improved upon and 
strengthened. I am basing this on testimony heard by the Commerce 
Committee on June 3 from Michael Greenberger, former director of CFTC's 
Division of Trading and Markets. Mr. Greenberger has emerged as a 
leading expert on the current state of our Nation's energy markets.
  In light of these developments and to add to the growing debate about 
how to protect consumers and our economy from rampant speculation, I'm 
now introducing a bill to shut down the unregulated oil futures markets 
created by the now-infamous ``Enron loophole.'' It also removes energy 
from the list of exempt commodities; requires energy to be traded on a 
regulated market, and creates a new definition of what constitutes an 
energy commodity.
  As the Senate continues to debate and ultimately consider proposals 
related to energy market speculation, the influence of large investors, 
regulated and unregulated exchanges, I would ask that my colleagues 
also consider the ideas put forward in this bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3134

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

     SECTION 1. REGULATION OF ENERGY COMMODITIES.

       (a) Definitions.--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;
       (2) by inserting after paragraph (12) the following:
       ``(13) Energy commodity.--The term `energy commodity' 
     includes--
       ``(A) crude oil;
       ``(B) natural gas;
       ``(C) heating oil;
       ``(D) gasoline;
       ``(E) metals;
       ``(F) construction materials;
       ``(G) propane; and
       ``(H) other fuel oils.''; and
       (3) by striking paragraph (15) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(15) Exempt commodity.--The term `exempt commodity' means 
     a commodity that is not--
       ``(A) an agricultural commodity;
       ``(B) an energy commodity; or
       ``(C) an excluded commodity.''.
       (b) Current Agricultural Commodities.--Section 5(e)(1) of 
     the Commodity Exchange Act (7 U.S.C. 7(e)(1)) is amended by 
     striking ``agricultural commodity enumerated in section 
     1a(4)'' and inserting ``agricultural commodity or an energy 
     commodity''.
       (c) Conforming Amendments.--
       (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''.
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