[Congressional Record Volume 154, Number 116 (Tuesday, July 15, 2008)]
[Senate]
[Pages S6725-S6729]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID (for himself, Mr. Durbin, Mr. Dorgan, Mrs. Murray, 
        and Mr. Schumer):
  S. 3268. A bill to amend the Commodity Exchange Act, to prevent 
excessive price speculation with respect to energy commodities, and for 
other purposes; ordered read the first time.
  Mr. REID. 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 
placed in the Record, as follows:

                                S. 3268

       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 ``Stop 
     Excessive Energy Speculation Act of 2008''.
       (b) Table of Contents.--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.

     SEC. 2. DEFINITION OF ENERGY COMMODITY.

       (a) Definition of Energy Commodity.--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) a petroleum product; and
       ``(B) natural gas.''.
       (b) 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''.

[[Page S6726]]

       (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''.

     SEC. 3. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE 
                   TRADING.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
     amended by adding at the end the following:
       ``(e) Foreign Boards of Trade.--
       ``(1) In general.--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 trade.--Paragraph (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.''.

     SEC. 4. AUTHORITY OF COMMODITY FUTURES TRADING COMMISSION 
                   WITH RESPECT TO CERTAIN TRADERS.

       (a) In General.--
       (1) Restriction of futures trading to contract markets or 
     derivatives transaction execution facilities.--Section 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 
     commerce.--Section 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) Consultation.--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) Violations.--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) Effect.--No amendment made by this subsection limits 
     any of the otherwise applicable authorities of the Commodity 
     Futures Trading Commission.

     SEC. 5. WORKING GROUP OF INTERNATIONAL REGULATORS.

       Section 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 Regulators.--Not 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.''.

     SEC. 6. ELIMINATION OF MANIPULATION AND EXCESSIVE SPECULATION 
                   AS CAUSE OF HIGH OIL, GAS, AND ENERGY PRICES.

       Section 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) In general.--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) Inclusion.--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 trading.--In 
     carrying out this Act, the Commission shall distinguish 
     between--
       ``(A) legitimate hedge trading; and
       ``(B) all other trading in energy commodities.
       ``(3) Type of trading.--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) In general.--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) Prior action.--
       ``(i) In general.--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

[[Page S6727]]

     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) Revocation.--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) In general.--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) Application.--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) Advisory group.--

       ``(I) In general.--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) Recommendations.--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) Applicability of faca.--The advisory group shall be 
     subject to the Federal Advisory Committee Act (5 U.S.C. 
     App.).

       ``(iii) Review of recommendations.--Not 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) Rulemaking.--

       ``(I) In general.--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) Effective date.--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) In general.--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) Report.--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 general.--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) Effect.--

       ``(I) In general.--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) Commission action.--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.''.

     SEC. 7. LARGE OVER-THE-COUNTER TRANSACTIONS.

       Section 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) Definitions.--In this subsection:
       ``(A) Covered over-the-counter transaction.--The 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) Covered person.--The term `covered person' means a 
     person that enters into a covered over-the-counter 
     transaction.
       ``(C) Major market disturbance.--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) Market disturbance.--The term `market disturbance' 
     shall be interpreted in accordance with section 8a(9)).
       ``(E) Over-the-counter transaction.--The 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 general.--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) Judicial review.--Any action taken by the Commission 
     under subparagraph (A) shall be subject to judicial review 
     carried out in accordance with section 8a(9).
       ``(3) Reporting; recordkeeping.--
       ``(A) In general.--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) Contents of report.--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) In general.--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 general.--In carrying out a determination under 
     clause (i), the Commission shall consider the extent to which 
     each factor described in subclause (II) applies.
       ``(II) Factors.--The factors required for carrying out a 
     determination under clause (i) include whether--

[[Page S6728]]

       ``(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) Recordkeeping.--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 information.--In 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) Applicability.--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) Savings clause.--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.''.

     SEC. 8. INDEX TRADERS AND SWAP DEALERS.

       Section 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 Dealers.--Not 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.''.

     SEC. 9. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN 
                   ENERGY MARKETS.

       Section 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 Markets.--The 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.''.

     SEC. 10. ADDITIONAL COMMODITY FUTURES TRADING COMMISSION 
                   EMPLOYEES FOR IMPROVED ENFORCEMENT.

       Section 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) Additional employees.--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.''.

     SEC. 11. WORKING GROUP ON ENERGY MARKETS.

       (a) Establishment.--There is established a Working Group on 
     Energy Markets.
       (b) Composition.--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) Chairperson.--
       (1) Initial chairperson.--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) Rotation of chairpersons.--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) Purpose and Function.--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) Administration.--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 Agencies.--The 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) Consultation.--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.

     SEC. 12. STUDY OF REGULATORY FRAMEWORK FOR ENERGY MARKETS.

       (a) Study.--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) Elements of Study.--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 Recommendations.--Not 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 Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 13. COLLECTION AND ANALYSIS OF INFORMATION ON ENERGY 
                   COMMODITIES.

       (a) Accurate and Complete Information on Energy Producing 
     Companies.--Section 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 companies.--
     Notwithstanding 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 
     Commodities.--Section 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) In general.--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) Company-specific data.--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 information.--Section 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.--

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       ``(1) In general.--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) Use of data.--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) Establishment.--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) Duties.--The Office shall be responsible for analysis 
     of the financial aspects of energy markets.
       ``(3) Analyses.--The Administrator of the Energy 
     Information Administration shall take analyses by the Office 
     into account in conducting analyses and forecasting of energy 
     prices.''.
       (c) Conforming Amendment.--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''.

     SEC. 14. NATIONAL NATURAL GAS MARKET INVESTIGATION.

       (a) In General.--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) Assessment.--The Commission may include in the 
     investigation an assessment of real-time market dynamics 
     during the 2008 winter heating season.
       (c) Required Data.--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) Reports.--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 Investigations.--On 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 Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 15. STUDIES; REPORTS.

       (a) Study Relating to International Regulation of Energy 
     Commodity Markets.--
       (1) In general.--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) Analysis.--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) Report.--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) Study.--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) Analysis.--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) Report.--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) In general.--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 resources.--Not 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).

     SEC. 16. EXPEDITED PROCEDURES.

       (a) In General.--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) Report.--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.

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