[Congressional Record (Bound Edition), Volume 148 (2002), Part 3]
[Senate]
[Pages 3978-3981]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3078. Mr. GRASSLEY submitted an amendment intended to be proposed 
to amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

                  DIVISION __--MISCELLANEOUS PROVISIONS

                      TITLE __--GENERAL PROVISIONS

     SEC. __. REVIEW OF FEDERAL PROCUREMENT INITIATIVES RELATING 
                   TO USE OF RECYCLED PRODUCTS AND FLEET AND 
                   TRANSPORTATION EFFICIENCY.

       Not later than 180 days after the date of enactment of this 
     Act, the Administrator of General Services shall submit to 
     Congress a report that details efforts by each Federal agency 
     to implement the procurement policies specified in Executive 
     Order No. 13101 (63 Fed. Reg. 49643; relating to governmental 
     use of recycled products) and Executive Order No. 13149 (65 
     Fed. Reg. 24607; relating to Federal fleet and transportation 
     efficiency).
                                  ____

  SA 3079. Mr. REID (for himself, and Mr. Crapo) proposed an amendment 
to amendment SA 2989 proposed by Mrs. Feinstein (for herself, Ms. 
Cantwell, Mr. Wyden, Mrs. Boxer, Mr. Leahy, Mr. Durbin, Mr. Fitzgerald, 
and Mr. Corzine) to the amendment SA 2917 proposed by Mr. Daschle (for 
himself and Mr. Bingaman) to the bill (S. 517) to authorize funding the 
Department of Energy to enhance its mission areas through technology 
transfer and partnerships for fiscal years 2002 through 2006, and for 
other purposes; as follows:

       In lieu of the matter proposed to be added, add the 
     following:

                       DIVISION __--MISCELLANEOUS

                      TITLE I--ENERGY DERIVATIVES

     SEC. __1. JURISDICTION OF THE COMMODITY FUTURES TRADING 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       (a) FERC Liaison.--Section 2(a)(8) of the Commodity 
     Exchange Act (7 U.S.C. 2(a)(8)) is amended by adding at the 
     end the following:
       ``(C) FERC liaison.--The Commission shall, in cooperation 
     with the Federal Energy Regulatory Commission, maintain a 
     liaison between the Commission and the Federal Energy 
     Regulatory Commission.''.
       (b) Exempt Transactions.--Section 2 of the Commodity 
     Exchange Act (7 U.S.C. 2) is amended--
       (1) in subsection (h)--
       (A) in paragraph (5)(B)(i)--
       (i) in subclause (I), by striking ``or'' at the end;
       (ii) in subclause (II), by adding ``or'' at the end; and
       (iii) by adding at the end the following:

       ``(III) make available to the public on a daily basis 
     information on volume, settlement price, open interest, and 
     opening and closing ranges, and any other information that 
     the Commission determines to be appropriate for public 
     disclosure, except that the Commission may not--

       ``(aa) require the real time publication of proprietary 
     information; or
       ``(bb) prohibit the commercial sale of real time 
     proprietary information;'' and
       (B) by adding at the end the following:
       ``(7) Applicability.--This subsection does not apply to an 
     agreement, contract, or transaction in an exempt energy 
     commodity described in section 2(j)(1).
       ``(8) Recordkeeping by eligible contract participants.--On 
     request of the Commission made within 5 years after the date 
     of any transaction, an eligible contract participant that 
     trades on an electronic trading facility shall provide to the 
     Commission, within the time period specified in the request 
     and in such form and manner as the Commission may specify, 
     any information relating to the transactions of the eligible 
     contract participant on the facility or system that the 
     Commission determines to be appropriate.''; and
       (2) by adding at the end the following:
       ``(j) Exempt Transactions.--
       ``(1) Transactions in exempt energy commodities.--An 
     agreement, contract, or transaction (including a transaction 
     described in section 2(g)) in an exempt energy commodity 
     shall be subject to--
       ``(A) sections 4b, 4c(b), 4o, and 5b;
       ``(B) subsections (c) and (d) of section 6 and sections 6c, 
     6d, and 8a, to the extent that those provisions--
       ``(i) provide for the enforcement of the requirements 
     specified in this subsection; and
       ``(ii) prohibit the manipulation of the market price of any 
     commodity in interstate commerce or for future delivery on or 
     subject to the rules of any contract market;
       ``(C) sections 6c, 6d, 8a, and 9(a)(2), to the extent that 
     those provisions prohibit the manipulation of the market 
     price of any commodity in interstate commerce or for future 
     delivery on or subject to the rules of any contract market;
       ``(D) section 12(e)(2); and
       ``(E) section 22(a)(4).
       ``(2) Bilateral dealer markets.--
       ``(A) In general.--Except as provided in paragraph (6), a 
     person or group of persons that constitutes, maintains, 
     administers, or provides a physical or electronic facility or 
     system in which a person or group of persons has the ability 
     to offer, execute, trade, or confirm the execution of an 
     agreement, contract, or transaction (including a transaction 
     described in section 2(g)) (other than an agreement, 
     contract, or transaction in an excluded commodity), by making 
     or accepting the bids and offers of 1 or more participants on 
     the facility or system (including facilities or systems 
     described in clauses (i) and (iii) of section 1a(33)(B)), may 
     offer or may allow participants in the facility or system to 
     enter into, enter into, or confirm the execution of any 
     agreement, contract, or transaction under paragraph (1) 
     (other than an agreement, contract, or transaction in an 
     excluded commodity) only if the person or group of persons 
     meets the requirement of subparagraph (B).
       ``(B) Requirement.--The requirement of this subparagraph is 
     that a person or group of persons described in subparagraph 
     (A) shall--
       ``(i) provide notice to the Commission in such form as the 
     Commission may specify by rule or regulation;
       ``(ii) file with the Commission any reports (including 
     large trader position reports) that the Commission requires 
     by rule or regulation;
       ``(iii) maintain sufficient capital, commensurate with the 
     risk associated with the transaction, as determined by the 
     Commission;
       ``(iv)(I) consistent with section 4i, maintain books and 
     records relating to each transaction in such form as the 
     Commission may specify for a period of 5 years after the date 
     of the transaction; and
       ``(II) make those books and records available to 
     representatives of the Commission and the Department of 
     Justice for inspection for a period of 5 years after the date 
     of each transaction; and
       ``(v) make available to the public on a daily basis 
     information on volume, settlement price, open interest, and 
     opening and closing ranges, and any other information that 
     the Commission determines to be appropriate for public 
     disclosure, except that the Commission may not--

       ``(I) require the real time publication of proprietary 
     information; or
       ``(II) prohibit the commercial sale of real time 
     proprietary information.

       ``(3) Reporting requirements.--On request of the Commission 
     made within 5 years after the date of any transaction, an 
     eligible contract participant that trades on a facility or 
     system described in paragraph (2)(A) shall provide to the 
     Commission, within the time period specified in the request 
     and in such form and manner as the Commission may specify, 
     any information relating to the transactions of the eligible 
     contract participant on the facility or system that the 
     Commission determines to be appropriate.
       ``(4) Transactions exempted by commission action.--Any 
     agreement, contract, or transaction described in paragraph 
     (1) (other than an agreement, contract, or transaction in an 
     excluded commodity) that would otherwise be exempted by the 
     Commission under section 4(c) shall be subject to--
       ``(A) sections 4b, 4c(b), 4o, and 5b; and
       ``(B) subsections (c) and (d) of section 6 and sections 6c, 
     6d, 8a, and 9(a)(2), to the extent that those provisions 
     prohibit the manipulation of the market price of any 
     commodity in interstate commerce or for future delivery on or 
     subject to the rules of any contract market.
       ``(5) No effect on other ferc authority.--This subsection 
     does not affect the authority of the Federal Energy 
     Regulatory Commission to regulate transactions under the 
     Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas 
     Act (15 U.S.C 717 et seq.).
       ``(6) Applicability.--This subsection does not apply to--
       ``(A) a designated contract market regulated under section 
     5; or
       ``(B) a registered derivatives transaction execution 
     facility regulated under section 5a.''.

[[Page 3979]]

       (c) Contracts Designed to Defraud or Mislead.--Section 4b 
     of the Commodity Exchange Act (7 U.S.C. 6b) is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for any member of 
     a registered entity, or for any correspondent, agent, or 
     employee of any member, in or in connection with any order to 
     make, or the making of, any contract of sale of any commodity 
     in interstate commerce, made, or to be made on or subject to 
     the rules of any registered entity, or for any person, in or 
     in connection with any order to make, or the making of, any 
     agreement, transaction, or contract in a commodity subject to 
     this Act--
       ``(1) to cheat or defraud or attempt to cheat or defraud 
     any person;
       ``(2) willfully to make or cause to be made to any person 
     any false report or statement, or willfully to enter or cause 
     to be entered any false record;
       ``(3) willfully to deceive or attempt to deceive any person 
     by any means; or
       ``(4) to bucket the order, or to fill the order by offset 
     against the order of any person, or willfully, knowingly, and 
     without the prior consent of any person to become the buyer 
     in respect to any selling order of any person, or to become 
     the seller in respect to any buying order of any person.''
       (d) Conforming Amendments.--The Commodity Exchange Act is 
     amended--
       (1) in section 2 (7 U.S.C. 2)--
       (A) in subsection (h)--
       (i) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (7)''; and
       (ii) in paragraph (3), by striking ``paragraph (4)'' and 
     inserting ``paragraphs (4) and (7)''; and
       (B) in subsection (i)(1)(A), by striking ``section 2(h) or 
     4(c)'' and inserting ``subsection (h) or (j) or section 
     4(c)'';
       (2) in section 4i (7 U.S.C. 6i)--
       (A) by striking ``any contract market or'' and inserting 
     ``any contract market,''; and
       (B) by inserting ``, or pursuant to an exemption under 
     section 4(c)'' after ``transaction execution facility'';
       (3) in section 5a(g)(1) (7 U.S.C. 7a(g)(1)), by striking 
     ``section 2(h)'' and inserting ``subsection (h) or (j) of 
     section 2'';
       (4) in section 5b (7 U.S.C. 7a-1)--
       (A) in subsection (a)(1), by striking ``2(h) or'' and 
     inserting ``2(h), 2(j), or''; and
       (B) in subsection (b), by striking ``2(h) or'' and 
     inserting ``2(h), 2(j), or''; and
       (5) in section 12(e)(2)(B) (7 U.S.C. 16(e)(2)(B)), by 
     striking ``section 2(h) or 4(c)'' and inserting ``subsection 
     (h) or (j) of section 2 or section 4(c)''.

     SEC. __2. RECRUITMENT AND RETENTION OF QUALIFIED PERSONNEL AT 
                   THE COMMODITY FUTURES TRADING COMMISSION.

       (a) In General.--Section 2(a)(6) of the Commodity Exchange 
     Act (7 U.S.C. 2(a)(6)) is amended by adding at the end the 
     following:
       ``(G) Personnel matters.--
       ``(i) In general.--The Chairman may appoint and fix the 
     compensation of any officers, attorneys, economists, 
     examiners, and other employees that are necessary in the 
     execution of the duties of the Commission.
       ``(ii) Compensation.--

       ``(I) In general.--Rates of basic pay for all employees of 
     the Commission may be set and adjusted by the Chairman 
     without regard to the provisions of chapter 51 or subchapter 
     III of chapter 53 of title 5, United States Code.
       ``(II) Additional compensation.--The Chairman may provide 
     additional compensation and benefits to employees of the 
     Chairman if the same type and amount of compensation or 
     benefits are provided, or are authorized to be provided, by 
     any other Federal agency specified in section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b).
       ``(III) Comparability.--In setting and adjusting the total 
     amount of compensation and benefits for employees under this 
     subparagraph, the Chairman shall consult with, and seek to 
     maintain comparability with, any other Federal agency 
     specified in section 1206 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     1833b).''.

       (b) Conforming Amendments.--
       (1) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (A) in subparagraph (C), by striking ``or'';
       (B) in subparagraph (D), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(E) the Commodity Futures Trading Commission.''.
       (2) Section 5316 of title 5, United States Code, is 
     amended--
       (A) by striking ``General Counsel, Commodity Futures 
     Trading Commission.''; and
       (B) by striking ``Executive Director, Commodity Futures 
     Trading Commission.''.
       (3) Section 5373(a) of title 5, United States Code, is 
     amended--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) section 2(a)(6)(G) of the Commodity Exchange Act.''.
       (4) Section 1206 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) is 
     amended by inserting ``the Commodity Futures Trading 
     Commission,'' after ``the Farm Credit Administration, ''.

     SEC. __3. JURISDICTION OF THE FEDERAL ENERGY REGULATORY 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       Section 402 of the Department of Energy Organization Act 
     (42 U.S.C. 7172) is amended by adding at the end the 
     following:
       ``(i) Jurisdiction Over Derivatives Transactions.--
       ``(1) In general.--To the extent that the Commission 
     determines that any contract that comes before the Commission 
     is not under the jurisdiction of the Commission, the 
     Commission shall refer the contract to the appropriate 
     Federal agency.
       ``(2) Meetings.--A designee of the Commission shall meet 
     quarterly with a designee of the Commodity Futures Trading 
     Commission, the Securities Exchange Commission, the Federal 
     Trade Commission, and the Federal Reserve Board to discuss--
       ``(A) conditions and events in energy trading markets; and
       ``(B) any changes in Federal law (including regulations) 
     that may be appropriate to regulate energy trading markets.
       ``(3) Liaison.--The Commission shall, in cooperation with 
     the Commodity Futures Trading Commission, maintain a liaison 
     between the Commission and the Commodity Futures Trading 
     Commission.''.
                                  ____

  SA 3080. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 2917 proposed by Mr. Daschle (for himself and Mr. 
Bingaman) to the bill (S. 517) to authorize funding the Department of 
Energy to enhance its mission areas through technology transfer and 
partnerships for fiscal years 2002 through 2006, and for other 
purposes, which was ordered to lie on the table; as follows:

       Strike (1)(3) and replace with:
       ``(3) Eligible renewable energy resource.--The term 
     `renewable energy resource' means solar, wind, ocean, or 
     geothermal energy, biomass, landfill gas, a generation 
     offset, or incremental hydropower.''
                                  ____

  SA 3081. Mr. REID proposed an amendment to amendment SA 2989 proposed 
by Mrs. Feinstein (for herself, Ms. Cantwell, Mr. Wyden, Mrs. Boxer, 
Mr. Leahy, Mr. Durbin, Mr. Fitzgerald, and Mr. Bingaman) to the bill 
(S. 517) to authorize funding the Department of Energy to enhance its 
mission areas through technology transfer and partnerships for fiscal 
years 2002 through 2006, and for other purposes; as follows:

       In lieu of the matter proposed to be added, add the 
     following:

                       DIVISION __--MISCELLANEOUS

                      TITLE I--ENERGY DERIVATIVES

     SEC. __1. JURISDICTION OF THE COMMODITY FUTURES TRADING 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       (a) FERC Liaison.--Section 2(a)(8) of the Commodity 
     Exchange Act (7 U.S.C. 2(a)(8)) is amended by adding at the 
     end the following:
       ``(C) FERC liaison.--The Commission shall, in cooperation 
     with the Federal Energy Regulatory Commission, maintain a 
     liaison between the Commission and the Federal Energy 
     Regulatory Commission.''.
       (b) Exempt Transactions.--Section 2 of the Commodity 
     Exchange Act (7 U.S.C. 2) is amended--
       (1) in subsection (h), by adding at the end the following:
       ``(7) Applicability.--This subsection does not apply to an 
     agreement, contract, or transaction in an exempt energy 
     commodity described in section 2(j)(1).''; and
       (2) by adding at the end the following:
       ``(j) Exempt Transactions.--
       ``(1) Transactions in exempt energy commodities.--An 
     agreement, contract, or transaction (including a transaction 
     described in section 2(g)) in an exempt energy commodity 
     shall be subject to--
       ``(A) sections 4b, 4c(b), 4o, and 5b;
       ``(B) subsections (c) and (d) of section 6 and sections 6c, 
     6d, and 8a, to the extent that those provisions--
       ``(i) provide for the enforcement of the requirements 
     specified in this subsection; and
       ``(ii) prohibit the manipulation of the market price of any 
     commodity in interstate commerce or for future delivery on or 
     subject to the rules of any contract market;
       ``(C) sections 6c, 6d, 8a, and 9(a)(2), to the extent that 
     those provisions prohibit the manipulation of the market 
     price of any commodity in interstate commerce or for future 
     delivery on or subject to the rules of any contract market;
       ``(D) section 12(e)(2); and
       ``(E) section 22(a)(4).
       ``(2) Bilateral dealer markets.--
       ``(A) In general.--Except as provided in paragraph (6), a 
     person or group of persons that constitutes, maintains, 
     administers, or provides a physical or electronic facility or 
     system in which a person or group of persons has the ability 
     to offer, execute, trade, or confirm the execution of an 
     agreement, contract, or transaction (including a transaction 
     described in section 2(g)) (other than

[[Page 3980]]

     an agreement, contract, or transaction in an excluded 
     commodity), by making or accepting the bids and offers of 1 
     or more participants on the facility or system (including 
     facilities or systems described in clauses (i) and (iii) of 
     section 1a(33)(B)), may offer or may allow participants in 
     the facility or system to enter into, enter into, or confirm 
     the execution of any agreement, contract, or transaction 
     under paragraph (1) (other than an agreement, contract, or 
     transaction in an excluded commodity) only if the person or 
     group of persons meets the requirement of subparagraph (B).
       ``(B) Requirement.--The requirement of this subparagraph is 
     that a person or group of persons described in subparagraph 
     (A) shall--
       ``(i) provide notice to the Commission in such form as the 
     Commission may specify by rule or regulation;
       ``(ii) file with the Commission any reports (including 
     large trader position reports) that the Commission requires 
     by rule or regulation;
       ``(iii) maintain sufficient capital, commensurate with the 
     risk associated with the transaction, as determined by the 
     Commission;
       ``(iv)(I) consistent with section 4i, maintain books and 
     records relating to each transaction in such form as the 
     Commission may specify for a period of 5 years after the date 
     of the transaction; and
       ``(II) make those books and records available to 
     representatives of the Commission and the Department of 
     Justice for inspection for a period of 5 years after the date 
     of each transaction; and
       ``(iv) make available to the public on a daily basis 
     information on volume, settlement price, open interest, 
     opening and closing ranges, and any other information that 
     the Commission determines to be appropriate for public 
     disclosure, except that the Commission may not--

       ``(I) require the real time publication of proprietary 
     information; or
       ``(II) prohibit the commercial sale of real time 
     proprietary information.

       ``(3) Reporting requirements.--On request of the 
     Commission, an eligible contract participant that trades on a 
     facility or system described in paragraph (2)(A) shall 
     provide to the Commission, within the time period specified 
     in the request and in such form and manner as the Commission 
     may specify, any information relating to the transactions of 
     the eligible contract participant on the facility or system 
     within 5 years after the date of any transaction that the 
     Commission determines to be appropriate.
       ``(4) Transactions exempted by commission action.--Any 
     agreement, contract, or transaction described in paragraph 
     (1) (other than an agreement, contract, or transaction in an 
     excluded commodity) that would otherwise be exempted by the 
     Commission under section 4(c) shall be subject to--
       ``(A) sections 4b, 4c(b), 4o, and 5b; and
       ``(B) subsections (c) and (d) of section 6 and sections 6c, 
     6d, 8a, and 9(a)(2), to the extent that those provisions 
     prohibit the manipulation of the market price of any 
     commodity in interstate commerce or for future delivery on or 
     subject to the rules of any contract market.
       ``(5) No effect on other ferc authority.--This subsection 
     does not affect the authority of the Federal Energy 
     Regulatory Commission to regulate transactions under the 
     Federal Power Act (16 U.S.C. 791a et seq.) or the Natural Gas 
     Act (15 U.S.C 717 et seq.).
       ``(6) Applicability.--This subsection does not apply to--
       ``(A) a designated contract market regulated under section 
     5; or
       ``(B) a registered derivatives transaction execution 
     facility regulated under section 5a.''.
       (c) Contracts Designed to Defraud or Mislead.--Section 4b 
     of the Commodity Exchange Act (7 U.S.C. 6b) is amended by 
     striking subsection (a) and inserting the following:
       ``(a) Prohibition.--It shall be unlawful for any member of 
     a registered entity, or for any correspondent, agent, or 
     employee of any member, in or in connection with any order to 
     make, or the making of, any contract of sale of any commodity 
     in interstate commerce, made, or to be made on or subject to 
     the rules of any registered entity, or for any person, in or 
     in connection with any order to make, or the making of, any 
     agreement, transaction, or contract in a commodity subject to 
     this Act--
       ``(1) to cheat or defraud or attempt to cheat or defraud 
     any person;
       ``(2) willfully to make or cause to be made to any person 
     any false report or statement, or willfully to enter or cause 
     to be entered any false record;
       ``(3) willfully to deceive or attempt to deceive any person 
     by any means; or
       ``(4) to bucket the order, or to fill the order by offset 
     against the order of any person, or willfully, knowingly, and 
     without the prior consent of any person to become the buyer 
     in respect to any selling order of any person, or to become 
     the seller in respect to any buying order of any person.''
       (d) Conforming Amendments.--The Commodity Exchange Act is 
     amended--
       (1) in section 2 (7 U.S.C. 2)--
       (A) in subsection (h)--
       (i) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (7)''; and
       (ii) in paragraph (3), by striking ``paragraph (4)'' and 
     inserting ``paragraphs (4) and (7)''; and
       (B) in subsection (i)(1)(A), by striking ``section 2(h) or 
     4(c)'' and inserting ``subsection (h) or (j) or section 
     4(c)'';
       (2) in section 4i (7 U.S.C. 6i)--
       (A) by striking ``any contract market or'' and inserting 
     ``any contract market,''; and
       (B) by inserting ``, or pursuant to an exemption under 
     section 4(c)'' after ``transaction execution facility'';
       (3) in section 5a(g)(1) (7 U.S.C. 7a(g)(1)), by striking 
     ``section 2(h)'' and inserting ``subsection (h) or (j) of 
     section 2'';
       (4) in section 5b (7 U.S.C. 7a-1)--
       (A) in subsection (a)(1), by striking ``2(h) or'' and 
     inserting ``2(h), 2(j), or''; and
       (B) in subsection (b), by striking ``2(h) or'' and 
     inserting ``2(h), 2(j), or''; and
       (5) in section 12(e)(2)(B) (7 U.S.C. 16(e)(2)(B)), by 
     striking ``section 2(h) or 4(c)'' and inserting ``subsection 
     (h) or (j) of section 2 or section 4(c)''.

     SEC. __2. RECRUITMENT AND RETENTION OF QUALIFIED PERSONNEL AT 
                   THE COMMODITY FUTURES TRADING COMMISSION.

       (a) In General.--Section 2(a)(6) of the Commodity Exchange 
     Act (7 U.S.C. 2(a)(6)) is amended by adding at the end the 
     following:
       ``(G) Personnel matters.--
       ``(i) In general.--The Chairman may appoint and fix the 
     compensation of any officers, attorneys, economists, 
     examiners, and other employees that are necessary in the 
     execution of the duties of the Commission.
       ``(ii) Compensation.--

       ``(I) In general.--Rates of basic pay for all employees of 
     the Commission may be set and adjusted by the Chairman 
     without regard to the provisions of chapter 51 or subchapter 
     III of chapter 53 of title 5, United States Code.
       ``(II) Additional compensation.--The Chairman may provide 
     additional compensation and benefits to employees of the 
     Chairman if the same type and amount of compensation or 
     benefits are provided, or are authorized to be provided, by 
     any other Federal agency specified in section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b).
       ``(III) Comparability.--In setting and adjusting the total 
     amount of compensation and benefits for employees under this 
     subparagraph, the Chairman shall consult with, and seek to 
     maintain comparability with, any other Federal agency 
     specified in section 1206 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
     1833b).''.

       (b) Conforming Amendments.--
       (1) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (A) in subparagraph (C), by striking ``or'';
       (B) in subparagraph (D), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(E) the Commodity Futures Trading Commission.''.
       (2) Section 5316 of title 5, United States Code, is 
     amended--
       (A) by striking ``General Counsel, Commodity Futures 
     Trading Commission.''; and
       (B) by striking ``Executive Director, Commodity Futures 
     Trading Commission.''.
       (3) Section 5373(a) of title 5, United States Code, is 
     amended--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) section 2(a)(6)(G) of the Commodity Exchange Act.''.
       (4) Section 1206 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) is 
     amended by inserting ``the Commodity Futures Trading 
     Commission,'' after ``the Farm Credit Administration, ''.

     SEC. __3. JURISDICTION OF THE FEDERAL ENERGY REGULATORY 
                   COMMISSION OVER ENERGY TRADING MARKETS.

       Section 402 of the Department of Energy Organization Act 
     (42 U.S.C. 7172) is amended by adding at the end the 
     following:
       ``(i) Jurisdiction Over Derivatives Transactions.--
       ``(1) In general.--To the extent that the Commission 
     determines that any contract that comes before the Commission 
     is not under the jurisdiction of the Commission, the 
     Commission shall refer the contract to the appropriate 
     Federal agency.
       ``(2) Meetings.--A designee of the Commission shall meet 
     quarterly with a designee of the Commodity Futures Trading 
     Commission, the Securities Exchange Commission, the Federal 
     Trade Commission, and the Federal Reserve Board to discuss--
       ``(A) conditions and events in energy trading markets; and
       ``(B) any changes in Federal law (including regulations) 
     that may be appropriate to regulate energy trading markets.
       ``(3) Liaison.--The Commission shall, in cooperation with 
     the Commodity Futures Trading Commission, maintain a liaison 
     between the Commission and the Commodity Futures Trading 
     Commission.''.

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