[Congressional Record (Bound Edition), Volume 149 (2003), Part 11]
[Senate]
[Pages 14244-14247]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 871. Ms. LANDRIEU (for herself, Mr. Specter, Mr. Bingaman, Ms. 
Collins, Mr. Alexander, and Mr. Bunning) proposed an amendment to the 
bill S. 14, to enhance the energy security of the United States, and 
for other purposes; as follows:

       On page 238, between lines 2 and 3, insert the following:

               Subtitle E--Measures to Conserve Petroleum

     SEC. __. REDUCTION OF DEPENDENCE ON IMPORTED PETROLEUM.

       (a) Report.--
       (1) In general.--Not later than February 1, 2004, and 
     annually thereafter, the President shall submit to Congress a 
     report, based on the most recent edition of the Annual Energy 
     Outlook published by the Energy Information Administration, 
     assessing the progress made by the United States toward the 
     goal of reducing dependence on imported petroleum sources by 
     2013.
       (2) Contents.--The report under subsection (a) shall--
       (A) include a description of the implementation, during the 
     previous fiscal year, of provisions under this Act relating 
     to domestic crude petroleum production;
       (B) assess the effectiveness of those provisions in meeting 
     the goal described in paragraph (1); and
       (C) describe the progress in developing and implementing 
     measures under subsection (b).
       (b) Measures To Reduce Import Dependence Through Increased 
     Domestic Petroleum Conservation.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the President shall develop and 
     implement measures to conserve petroleum in end-uses 
     throughout the economy of the United States sufficient to 
     reduce total demand for petroleum in the United States by 
     1,000,000 barrels per day from the amount projected for 
     calendar year 2013 in the reference case contained in the 
     report of the Energy Information Administration entitled 
     ``Annual Energy Outlook 2003''.
       (2) Contents.--The measures under paragraph (1) shall be 
     designed to ensure continued reliable and affordable energy 
     for consumers.
       (3) Implementation.--The measures under paragraph (1) shall 
     be implemented under existing authorities of appropriate 
     Federal executive agencies identified by the President.
                                 ______
                                 
  SA 872. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill S. 14, to enhance the energy security of the United 
States, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 165 after line 14 insert:
       (d) License Terms.--Section 6 and section 101(i) of the 
     Federal Power Act (16 U.S.C. 799 and 803(i) are each amended 
     by striking ``fifty'' and inserting ``thirty'' and section 
     15(e) of such Act is amended by striking ``not less than 30 
     years, nor more than 50'' and inserting ``not more than 15.''
                                 ______
                                 
  SA 873. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill S. 14, to enhance the energy security of the United 
States, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 165 after line 14 insert:
       (d) Annual Licenses.--Section 15(a)(1) of the Federal Power 
     Act (16 U.S.C. 808(a)(1) is amended by adding the following 
     at the end thereof: ``Annual licenses shall contain such 
     terms and conditions appropriate for the duration of the 
     annual license which are identified by the Secretary of the 
     Interior and the Secretary of Agriculture as necessary for 
     the protection and utilization of the reservation within 
     which the project is located; by the Secretary of the 
     Interior and the Secretary of Commerce for the protection and 
     enhancement of fish and wildlife, including related spawning 
     grounds and habitat; and by the Governor of the State in 
     which the project is located for compliance with water 
     quality standards and other legal requirements for beneficial 
     uses of affected waters. The terms of any new license for a 
     project shall be reduced by one year for each annual license 
     issued for such project.''
                                 ______
                                 
  SA 874. Mr. JEFFORDS submitted an amendment intended to be proposed 
by him to the bill S. 14, to enhance the energy security of the United 
States, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 17, strike line 11 and all that follows through 
     line 17 and insert:
       ``(f) Effect on Existing Law.--
       ``(1) Nothing in this section shall relieve the Secretary 
     of any obligation to conduct environmental or other reviews 
     or take any other actions required of the Secretary as of the 
     date of enactment of this section for activities on tribal 
     lands pursuant to the National Environmental Policy Act of 
     1969 (42 U.S.C. 2901 et seq.); the Clean Air Act (42 U.S.C. 
     7401 et seq.); the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.); the Solid Waste Disposal Act (42 U.S.C. 
     6901 et seq.); the Endangered Species Act (16 U.S.C. 1531 et 
     seq.); or any other Federal law for the protection of the 
     environment or environmental quality.
       ``(2) Nothing in this section affects the application of --
       ``(A) the Surface Mining Control and Reclamation Act of 
     1977 (30 U.S.C. 1201 et seq.);
       ``(B) the Atomic Energy Act of 1954 (42 U.S.C. 2011) or any 
     Federal law respecting nuclear or radioactive waste or mining 
     of radioactive materials; or
       ``(C) except as otherwise provided in this title, the 
     Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
     seq.).''
                                 ______
                                 
  SA 875. Mr. WYDEN (for himself, Mr. Sununu, Mr. Bingaman, Mr. Ensign, 
Mr. Reid, Mr. Feingold, Mr. Jeffords, and Ms. Snowe) proposed an 
amendment to the bill S. 14, to enhance the energy security of the 
United States, and for other purposes; as follows:

       Strike subtitle B of title IV.
                                 ______
                                 
  SA 876. Mrs. FEINSTEIN (for herself, Mr. Fitzgerald, Mr. Harkin, Mr. 
Lugar, Ms. Cantwell, Mr. Wyden, Mrs. Boxer, and Mr. Leahy) proposed an 
amendment to the bill S. 14, to enhance the energy security of the 
United States, and for other purposes; as follows:

       At the end, add the following:

                   TITLE __--ENERGY MARKET OVERSIGHT

     SEC. __01. 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.--
       ``(1) Referral.--
       ``(A) 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.
       ``(B) No effect on authority.--The authority of the 
     Commission or any Federal agency shall not be limited or 
     otherwise affected based on whether the Commission has or has 
     not referred a contract described in subparagraph (A).
       ``(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, the Department of Justice, the Department 
     of the Treasury, 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.''.

     SEC. __02. INVESTIGATIONS BY THE FEDERAL ENERGY REGULATORY 
                   COMMISSION UNDER THE NATURAL GAS ACT AND 
                   FEDERAL POWER ACT.

       (a) Investigations Under the Natural Gas Act.--Section 
     14(c) of the Natural Gas Act (15 U.S.C. 717m(c)) is amended--
       (1) by striking ``(c) For the purpose of'' and inserting 
     the following:

[[Page 14245]]

       ``(c) Taking of Evidence.--
       ``(1) In general.--For the purpose of'';
       (2) by striking ``Such attendance'' and inserting the 
     following:
       ``(2) No geographic limitation.--The attendance'';
       (3) by striking ``Witnesses summoned'' and inserting the 
     following:
       ``(3) Expenses.--Any witness summoned''; and
       (4) by adding at the end the following:
       ``(4) Authorities.--The exercise of the authorities of the 
     Commission under this subsection shall not be subject to the 
     consent of the Office of Management and Budget.''.
       (b) Investigations Under the Federal Power Act.--Section 
     307(b) of the Federal Power Act (16 U.S.C. 825f(b)) is 
     amended--
       (1) by striking ``(b) For the purpose of'' and inserting 
     the following:
       ``(b) Taking of Evidence.--
       ``(1) In general.--For the purpose of'';
       (2) by striking ``Such attendance'' and inserting the 
     following:
       ``(2) No geographic limitation.--The attendance'';
       (3) by striking ``Witnesses summoned'' and inserting the 
     following:
       ``(3) Expenses.--Any witness summoned''; and
       (4) by adding at the end the following:
       ``(4) Authorities.--The exercise of the authorities of the 
     Commission under this subsection shall not be subject to the 
     consent of the Office of Management and Budget.''.

     SEC. __03. CONSULTING SERVICES.

       Title IV of the Department of Energy Organization Act (42 
     U.S.C. 7171 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 408. CONSULTING SERVICES.

       ``(a) In General.--The Chairman may contract for the 
     services of consultants to assist the Commission in carrying 
     out any responsibilities of the Commission under this Act, 
     the Federal Power Act (16 U.S.C. 791a et seq.), or the 
     Natural Gas Act (15 U.S.C. 717 et seq.).
       ``(b) Applicable Law.--In contracting for consultant 
     services under subsection (a), if the Chairman determines 
     that the contract is in the public interest, the Chairman, in 
     entering into a contract, shall not be subject to--
       ``(1) section 5, 253, 253a, or 253b of title 41, United 
     States Code; or
       ``(2) any law (including a regulation) relating to 
     conflicts of interest.''.

     SEC. __04. LEGAL CERTAINTY FOR TRANSACTIONS IN EXEMPT 
                   COMMODITIES.

       Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
     amended by striking subsections (g) and (h) and inserting the 
     following:
       ``(g) Off-Exchange Transactions in Exempt Commodities.--
       ``(1) Definitions.--In this subsection:
       ``(A) Covered entity.--The term `covered entity' means--
       ``(i) an electronic trading facility; and
       ``(ii) a dealer market.
       ``(B) Dealer market.--
       ``(i) In general.--The term `dealer market' has the meaning 
     given the term by the Commission.
       ``(ii) Inclusions.--The term `dealer market' includes each 
     bilateral or multilateral agreement, contract, or transaction 
     determined by the Commission, regardless of the means of 
     execution of the agreement, contract, or transaction.
       ``(2) Exemption for transactions not on trading 
     facilities.--Except as provided in paragraph (4), nothing in 
     this Act shall apply to an agreement, contract, or 
     transaction in an exempt commodity that--
       ``(A) is entered into solely between persons that are 
     eligible contract participants at the time the persons enter 
     into the agreement, contract, or transaction; and
       ``(B) is not entered into on a trading facility.
       ``(3) Exemption for transactions on covered entities.--
     Except as provided in paragraphs (4), (5), and (7), nothing 
     in this Act shall apply to an agreement, contract, or 
     transaction in an exempt commodity that is--
       ``(A) entered into on a principal-to-principal basis solely 
     between persons that are eligible contract participants at 
     the time at which the persons enter into the agreement, 
     contract, or transaction; and
       ``(B) executed or traded on a covered entity.
       ``(4) Regulatory and oversight requirements.--
       ``(A) In general.--An agreement, contract, or transaction 
     described in paragraph (2) or (3) (and the covered entity on 
     which the agreement, contract, or transaction is executed) 
     shall be subject to--
       ``(i) sections 5b, 12(e)(2)(B), and 22(a)(4);
       ``(ii) the provisions relating to manipulation and 
     misleading transactions under sections 4b, 4c(a), 4c(b), 4o, 
     6(c), 6(d), 6c, 6d, 8a, and 9(a)(2); and
       ``(iii) the provisions relating to fraud and misleading 
     transactions under sections 4b, 4c(a), 4c(b), 4o, and 8a.
       ``(B) Transactions exempted by commission action.--
     Notwithstanding any exemption by the Commission under section 
     4(c), an agreement, contract, or transaction described in 
     paragraph (2) or (3) shall be subject to the authorities in 
     clauses (i), (ii), and (iii) of subparagraph (A).
       ``(5) Covered entities.--An agreement, contract, or 
     transaction described in paragraph (3) and the covered entity 
     on which the agreement, contract, or transaction is executed, 
     shall be subject to (to the extent the Commission determines 
     appropriate)--
       ``(A) section 5a, to the extent provided in section 5a(g)) 
     and 5d;
       ``(B) consistent with section 4i, a requirement that books 
     and records relating to the business of the covered entity on 
     which the agreement, contract, or transaction is executed be 
     made available to representatives of the Commission and the 
     Department of Justice for inspection for a period of at least 
     5 years after the date of each transaction, including--
       ``(i) information relating to data entry and transaction 
     details sufficient to enable the Commission to reconstruct 
     trading activity on the covered entity; and
       ``(ii) the name and address of each participant on the 
     covered entity authorized to enter into transactions; and
       ``(C) in the case of a transaction or covered entity 
     performing a significant price discovery function for 
     transactions in the cash market for the underlying commodity, 
     subject to paragraph (6), the requirements (to the extent the 
     Commission determines appropriate by regulation) that--
       ``(i) information on trading volume, settlement price, open 
     interest, and opening and closing ranges be made available to 
     the public on a daily basis;
       ``(ii) notice be provided to the Commission in such form as 
     the Commission may require;
       ``(iii) reports be filed with the Commission (such as large 
     trader position reports); and
       ``(iv) consistent with section 4i, books and records be 
     maintained relating to each transaction in such form as the 
     Commission may require for a period of at least 5 years after 
     the date of the transaction.
       ``(6) Proprietary information.--In carrying out paragraph 
     (5)(C), the Commission shall not--
       ``(A) require the real-time publication of proprietary 
     information;
       ``(B) prohibit the commercial sale or licensing of real-
     time proprietary information; and
       ``(C) publicly disclose information regarding market 
     positions, business transactions, trade secrets, or names of 
     customers, except as provided in section 8.
       ``(7) Notification, disclosures, and other requirements for 
     covered entities.--A covered entity subject to the exemption 
     under paragraph (3) shall (to the extent the Commission 
     determines appropriate)--
       ``(A) notify the Commission of the intention of the covered 
     entity to operate as a covered entity subject to the 
     exemption under paragraph (3), which notice shall include--
       ``(i) the name and address of the covered entity and a 
     person designated to receive communications from the 
     Commission;
       ``(ii) the commodity categories that the covered entity 
     intends to list or otherwise make available for trading on 
     the covered entity in reliance on the exemption under 
     paragraph (3);
       ``(iii) certifications that--

       ``(I) no executive officer or member of the governing board 
     of, or any holder of a 10 percent or greater equity interest 
     in, the covered entity is a person described in any of 
     subparagraphs (A) through (H) of section 8a(2);
       ``(II) the covered entity will comply with the conditions 
     for exemption under this subsection; and
       ``(III) the covered entity will notify the Commission of 
     any material change in the information previously provided by 
     the covered entity to the Commission under this paragraph; 
     and

       ``(iv) the identity of any derivatives clearing 
     organization to which the covered entity transmits or intends 
     to transmit transaction data for the purpose of facilitating 
     the clearance and settlement of transactions conducted on the 
     covered entity subject to the exemption under paragraph (3);
       ``(B)(i) provide the Commission with access to the trading 
     protocols of the covered entity and electronic access to the 
     covered entity with respect to transactions conducted in 
     reliance on the exemption under paragraph (3); and
       ``(ii) on special call by the Commission, provide to the 
     Commission, in a form and manner and within the period 
     specified in the special call, such information relating to 
     the business of the covered entity as a covered entity exempt 
     under paragraph (3), including information relating to data 
     entry and transaction details with respect to transactions 
     entered into in reliance on the exemption under paragraph 
     (3), as the Commission may determine appropriate--
       ``(I) to enforce the provisions specified in paragraph (4);
       ``(II) to evaluate a systemic market event; or
       ``(III) to obtain information requested by a Federal 
     financial regulatory authority to enable the authority to 
     fulfill the regulatory or supervisory responsibilities of the 
     authority;
       ``(C)(i) on receipt of any subpoena issued by or on behalf 
     of the Commission to any foreign person that the Commission 
     believes is conducting or has conducted transactions in 
     reliance on the exemption under paragraph (3) on or through 
     the covered entity relating to the transactions, promptly 
     notify the foreign person of, and transmit to the foreign

[[Page 14246]]

     person, the subpoena in a manner that is reasonable under the 
     circumstances, or as specified by the Commission; and
       ``(ii) if the Commission has reason to believe that a 
     person has not timely complied with a subpoena issued by or 
     on behalf of the Commission under clause (i), and the 
     Commission in writing directs that a covered entity relying 
     on the exemption under paragraph (3) deny or limit further 
     transactions by the person, deny that person further trading 
     access to the covered entity or, as applicable, limit that 
     access of the person to the covered entity for liquidation 
     trading only;
       ``(D) comply with the requirements of this subsection 
     applicable to the covered entity and require that each 
     participant, as a condition of trading on the covered entity 
     in reliance on the exemption under paragraph (3), agree to 
     comply with all applicable law;
       ``(E) certify to the Commission that the covered entity has 
     a reasonable basis for believing that participants authorized 
     to conduct transactions on the covered entity in reliance on 
     the exemption under paragraph (3) are eligible contract 
     participants;
       ``(F) maintain sufficient capital, commensurate with the 
     risk associated with transactions conducted on the covered 
     entity; and
       ``(G) not represent to any person that the covered entity 
     is registered with, or designated, recognized, licensed, or 
     approved by the Commission.
       ``(8) Hearing.--A person named in a subpoena referred to in 
     paragraph (7)(C) that believes the person is or may be 
     adversely affected or aggrieved by action taken by the 
     Commission under this subsection, shall have the opportunity 
     for a prompt hearing after the Commission acts under 
     procedures that the Commission shall establish by rule, 
     regulation, or order.
       ``(9) Private regulatory organizations.--
       ``(A) Delegation of functions under core principles.--A 
     covered entity may comply with any core principle under 
     subparagraph (B) that is applicable to the covered entity 
     through delegation of any relevant function to--
       ``(i) a registered futures association under section 17; or
       ``(ii) another registered entity.
       ``(B) Core principles.--The Commission may establish core 
     principles requiring a covered entity to monitor trading to--
       ``(i) prevent fraud and manipulation;
       ``(ii) prevent price distortion and disruptions of the 
     delivery or cash settlement process;
       ``(iii) ensure that the covered entity has adequate 
     financial, operational, and managerial resources to discharge 
     the responsibilities of the covered entity; and
       ``(iv) ensure that all reporting, recordkeeping, notice, 
     and registration requirements under this subsection are 
     discharged in a timely manner.
       ``(C) Responsibility.--A covered entity that delegates a 
     function under subparagraph (A) shall remain responsible for 
     carrying out the function.
       ``(D) Noncompliance.--If a covered entity that delegates a 
     function under subparagraph (A) becomes aware that a 
     delegated function is not being performed as required under 
     this Act, the covered entity shall promptly take action to 
     address the noncompliance.
       ``(E) Violation of core principles.--
       ``(i) In general.--If the Commission determines, on the 
     basis of substantial evidence, that a covered entity is 
     violating any applicable core principle specified in 
     subparagraph (B), the Commission shall--

       ``(I) notify the covered entity in writing of the 
     determination; and
       ``(II) afford the covered entity an opportunity to make 
     appropriate changes to bring the covered entity into 
     compliance with the core principles.

       ``(ii) Failure to make changes.--If, not later than 30 days 
     after receiving a notification under clause (i)(I), a covered 
     entity fails to make changes that, as determined by the 
     Commission, are necessary to comply with the core principles, 
     the Commission may take further action in accordance with 
     this Act.
       ``(F) Reservation of emergency authority.--Nothing in this 
     paragraph limits or affects the emergency powers of the 
     Commission provided under section 8a(9).
       ``(10) No effect on other authority.--This subsection shall 
     not affect the authority of the Federal Energy Regulatory 
     Commission under the Federal Power Act (16 U.S.C. 791a et 
     seq.) or the Natural Gas Act (15 U.S.C 717 et seq.).''.

     SEC. __05. PROHIBITION OF FRAUDULENT TRANSACTIONS.

       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 person, 
     directly or indirectly, in or in connection with any account, 
     or any offer to enter into, the entry into, or the 
     confirmation of the execution of, any agreement, contract, or 
     transaction subject to this Act--
       ``(1) to cheat or defraud or attempt to cheat or defraud 
     any person (but this paragraph does not impose on parties to 
     transactions executed on or subject to the rules of 
     designated contract markets or registered derivative 
     transaction execution facilities a legal duty to provide 
     counterparties or any other market participants with any 
     material market information);
       ``(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 for any person any false record (but this 
     paragraph does not impose on parties to transactions executed 
     on or subject to the rules of designated contract markets or 
     registered derivative transaction execution facilities a 
     legal duty to provide counterparties or any other market 
     participants with any material market information);
       ``(3) willfully to deceive or attempt to deceive any person 
     by any means whatsoever (but this paragraph does not impose 
     on parties to transactions executed on or subject to the 
     rules of designated contract markets or registered derivative 
     transaction execution facilities a legal duty to provide 
     counterparties or any other market participants with any 
     material market information); or
       ``(4) except as permitted in written rules of a board of 
     trade designated as a contract market or derivatives 
     transaction execution facility on which the agreement, 
     contract, or transaction is traded and executed--
       ``(A) to bucket an order;
       ``(B) to fill an order by offset against 1 or more orders 
     of another person; or
       ``(C) willfully and knowingly, for or on behalf of any 
     other person and without the prior consent of the person, to 
     become--
       ``(i) the buyer with respect to any selling order of the 
     person; or
       ``(ii) the seller with respect to any buying order of the 
     person.''.

     SEC. __06. FERC LIAISON.

       Section 2(a)(9) of the Commodity Exchange Act (7 U.S.C. 
     2(a)(9)) is amended by adding at the end the following:
       ``(C) Liaison with federal energy regulatory commission.--
     The Commission shall, in cooperation with the Federal Energy 
     Regulatory Commission, maintain a liaison between the 
     Commission and the Federal Energy Regulatory Commission.''.

     SEC. __07. CRIMINAL AND CIVIL PENALTIES.

       (a) Enforcement Powers of Commission.--Section 6(c) of the 
     Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 
     paragraph (3) of the tenth sentence--
       (1) by inserting ``(A)'' after ``assess such person''; and
       (2) by inserting after ``each such violation'' the 
     following: ``, or (B) in any case of manipulation of, or 
     attempt to manipulate, the price of any commodity, a civil 
     penalty of not more than the greater of $1,000,000 or triple 
     the monetary gain to such person for each such violation,''.
       (b) Manipulations and Other Violations.--Section 6(d) of 
     the Commodity Exchange Act (7 U.S.C. 13b) is amended in the 
     first sentence--
       (1) by striking ``paragraph (a) or (b) of section 9 of this 
     Act'' and inserting ``subsection (a), (b), or (f) of section 
     9''; and
       (2) by striking ``said paragraph 9(a) or 9(b)'' and 
     inserting ``subsection (a), (b), or (f) of section 9''.
       (c) Nonenforcement of Rules of Government or Other 
     Violations.--Section 6b of the Commodity Exchange Act (7 
     U.S.C. 13a) is amended--
       (1) in the first sentence--
       (A) by inserting ``section 2(g)(9),'' after ``sections 5 
     through 5c,''; and
       (B) by inserting before the period at the end the 
     following: ``, or, in any case of manipulation of, or an 
     attempt to manipulate, the price of any commodity, a civil 
     penalty of not more than $1,000,000 for each such 
     violation''; and
       (2) in the second sentence, by inserting before the period 
     at the end the following: ``, except that if the failure or 
     refusal to obey or comply with the order involved any offense 
     under section 9(f), the registered entity, director, officer, 
     agent, or employee shall be guilty of a felony and, on 
     conviction, shall be subject to penalties under section 
     9(f)''.
       (d) Action To Enjoin or Restrain Violations.--Section 6c(d) 
     of the Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended 
     by striking ``(d)'' and all that follows through the end of 
     paragraph (1) and inserting the following:
       ``(d) Civil Penalties.--In any action brought under this 
     section, the Commission may seek and the court shall have 
     jurisdiction to impose, on a proper showing, on any person 
     found in the action to have committed any violation--
       ``(1) a civil penalty in the amount of not more than the 
     greater of $100,000 or triple the monetary gain to the person 
     for each violation; or
       ``(2) in any case of manipulation of, or an attempt to 
     manipulate, the price of any commodity, a civil penalty in 
     the amount of not more than the greater of $1,000,000 or 
     triple the monetary gain to the person for each violation.''.
       (e) Violations Generally.--Section 9 of the Commodity 
     Exchange Act (7 U.S.C. 13) is amended--
       (1) by redesignating subsection (f) as subsection (e); and
       (2) by adding at the end the following:
       ``(f) Price Manipulation.--It shall be a felony punishable 
     by a fine of not more than $1,000,000 for each violation or 
     imprisonment for not more than 10 years, or both, together 
     with the costs of prosecution, for any person--

[[Page 14247]]

       ``(1) to manipulate or attempt to manipulate the price of 
     any commodity in interstate commerce, or for future delivery 
     on or subject to the rules of any registered entity;
       ``(2) to corner or attempt to corner any such commodity;
       ``(3) knowingly to deliver or cause to be delivered (for 
     transmission through the mails or interstate commerce by 
     telegraph, telephone, wireless, or other means of 
     communication) false or misleading or knowingly inaccurate 
     reports concerning market information or conditions that 
     affect or tend to affect the price of any commodity in 
     interstate commerce; or
       ``(4) knowingly to violate section 4 or 4b, any of 
     subsections (a) through (e) of subsection 4c, or section 4h, 
     4o(1), or 19.''.

     SEC. __08. CONFORMING AMENDMENTS.

       (a) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
     amended--
       (1) in subsection (d)(1), by striking ``section 5b'' and 
     inserting ``section 5a(g), 5b,'';
       (2) in subsection (e)--
       (A) in paragraph (1), by striking ``, 2(g), or 2(h)(3)''; 
     and
       (B) in paragraph (3), by striking ``2(h)(5)'' and inserting 
     ``2(g)(7)'';
       (3) by redesignating subsection (i) as subsection (h); and
       (4) in subsection (h) (as redesignated by subparagraph 
     (C))--
       (A) in paragraph (1)--
       (i) by striking ``No provision'' and inserting ``In 
     general.--Subject to subsection (g), no provision''; and
       (ii) in subparagraph (A)--

       (I) by striking ``section 2(c), 2(d), 2(e), 2(f), or 2(g) 
     of this Act'' and inserting ``subsection (c), (d), (e), or 
     (f)''; and
       (II) by striking ``section 2(h)'' and inserting 
     ``subsection (g)''; and

       (B) in paragraph (2), by striking ``No provision'' and 
     inserting ``In general.--Subject to subsection (g), no 
     provision''.
       (b) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) 
     is amended in the first sentence by inserting ``, or pursuant 
     to an exemption under section 4(c)'' after ``transaction 
     execution facility''.
       (c) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 
     12a(9)) is amended--
       (1) by inserting ``or covered entity under section 2(g)'' 
     after ``direct the contract market'';
       (2) by striking ``on any futures contract''; and
       (3) by inserting ``or covered entity under section 2(g)'' 
     after ``given by a contract market''.
                                 ______
                                 
  SA 877. Mr. REID proposed an amendment to amendment SA 876 proposed 
by Mrs. Feinstein (for herself, Mr. Fitzgerald, Mr. Harkin, Mr. Lugar, 
Ms. Cantwell, Mr. Wyden, Mrs. Boxer, and Mr. Leahy) to the bill S. 14, 
to enhance the energy security of the United States, and for other 
purposes; as follows:

       On page 17 after line 25.
       ``(10) Applicability.--This subsection does not apply to 
     any agreement, contract, or transaction in metals.''

                          ____________________