[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Pages 19582-19600]
[From the U.S. Government Publishing Office, www.gpo.gov]




     COMMODITY MARKETS TRANSPARENCY AND ACCOUNTABILITY ACT OF 2008

  Mr. PETERSON of Minnesota. Mr. Speaker, pursuant to House Resolution 
1449, I call up the bill (H.R. 6604) to amend the Commodity Exchange 
Act to bring greater transparency and accountability to commodity 
markets, and for other purposes, and ask for its immediate 
consideration.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6604

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commodity Markets 
     Transparency and Accountability Act of 2008''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of energy commodity.
Sec. 4. Speculative limits and transparency of off-shore trading.
Sec. 5. Disaggregation of index funds and other data in energy and 
              agriculture markets.
Sec. 6. Detailed reporting from index traders and swap dealers.
Sec. 7. Transparency and recordkeeping authorities.
Sec. 8. Trading limits to prevent excessive speculation.
Sec. 9. Modifications to core principles applicable to position limits 
              for contracts in agricultural and energy commodities.
Sec. 10. CFTC Administration.
Sec. 11. Review of prior actions.
Sec. 12. Review of over-the-counter markets.
Sec. 13. Studies; reports.
Sec. 14. Over-the-counter authority.
Sec. 15. Expedited process.

     SEC. 3. 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) coal;
       ``(B) crude oil, gasoline, diesel fuel, jet fuel, heating 
     oil, and propane;
       ``(C) electricity;
       ``(D) natural gas; and
       ``(E) any other substance that is used as a source of 
     energy, as the Commission, in its discretion, deems 
     appropriate.''.
       (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''.
       (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. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE 
                   TRADING.

       (a) In General.--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 
     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 or 
     agricultural 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 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 agreement, contract, or transaction traded on the 
     foreign board of trade settles; 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) for the agreement, contract, or 
     transaction that are comparable, taking into consideration 
     the relative sizes of the respective markets, to the position 
     limits (including related hedge exemption provisions) adopted 
     by the registered entity for the 1 or more contracts against 
     which the agreement, contract, or transaction traded on 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 as described in section 
     4a, price distortion, or disruption of delivery or the cash 
     settlement process;
       ``(iii) agrees to promptly notify the Commission of any 
     change regarding--

       ``(I) the information that the foreign board of trade will 
     make publicly available;
       ``(II) the position limits that the foreign board of trade 
     or foreign futures authority will adopt and enforce;
       ``(III) the position reductions required to prevent 
     manipulation, excessive speculation as described in section 
     4a, price distortion, or disruption of delivery or the cash 
     settlement process; and
       ``(IV) any other area of interest expressed by the 
     Commission to the foreign board of trade or foreign futures 
     authority;

       ``(iv) provides information to the Commission regarding 
     large trader positions in the agreement, contract, or 
     transaction that is comparable to the large trader position 
     information collected by the Commission for the 1 or more 
     contracts against which the agreement, contract, or 
     transaction traded on the foreign board of trade settles; and
       ``(v) provides the Commission with information necessary to 
     publish reports on aggregate trader positions for the 
     agreement, contract, or transaction traded on the foreign 
     board of trade that are comparable to such reports for 1 or 
     more contracts against which the agreement, contract, or 
     transaction traded on 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 before the date of the enactment of 
     this subsection until the date that is 180 days after such 
     date of enactment.''.
       (b) Liability of Registered Persons Trading on a Foreign 
     Board of Trade.--
       (1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by 
     inserting ``or by subsection (f)'' after ``Unless exempted by 
     the Commission pursuant to subsection (c)''.
       (2) Section 4 of such Act (7 U.S.C. 6) is further amended 
     by adding at the end the following:
       ``(f) A person registered with the Commission, or exempt 
     from registration by the Commission, under this Act may not 
     be found to have violated subsection (a) with respect to a 
     transaction in, or in connection with, a contract of sale of 
     a commodity for future delivery if the person has reason to

[[Page 19583]]

     believe the transaction and the contract is made on or 
     subject to the rules of a board of trade that is legally 
     organized under the laws of a foreign country, authorized to 
     act as a board of trade by a foreign futures authority, 
     subject to regulation by the foreign futures authority, and 
     has not been determined by the Commission to be operating in 
     violation of subsection (a).''.
       (c) Contract Enforcement for Foreign Futures Contracts.--
     Section 22(a) of such Act (7 U.S.C. 25(a)) is amended by 
     adding at the end the following:
       ``(5) A contract of sale of a commodity for future delivery 
     traded or executed on or through the facilities of a board of 
     trade, exchange, or market located outside the United States 
     for purposes of section 4(a) shall not be void, voidable, or 
     unenforceable, and a party to such a contract shall not be 
     entitled to rescind or recover any payment made with respect 
     to the contract, based on the failure of the foreign board of 
     trade to comply with any provision of this Act.''.

     SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN 
                   ENERGY AND AGRICULTURE MARKETS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 
     amended by section 4 of this Act, is amended by adding at the 
     end the following:
       ``(g) Disaggregation of Index Funds and Other Data in 
     Energy and Agriculture Markets.--Subject to section 8 and 
     beginning within 30 days of the issuance of the final rule 
     required by section 4h, the Commission shall disaggregate and 
     make public weekly--
       ``(1) the number of positions and total value of index 
     funds and other passive, long-only and short-only positions 
     (as defined by the Commission) in all energy and agricultural 
     markets to the extent such information is available; and
       ``(2) data on speculative positions relative to bona fide 
     physical hedgers in those markets to the extent such 
     information is available.''.

     SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP 
                   DEALERS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 
     amended by sections 4 and 5 of this Act, is amended by adding 
     at the end the following:
       ``(h) Index Traders and Swap Dealers Reporting.--The 
     Commission shall issue a proposed rule defining and 
     classifying index traders and swap dealers (as those terms 
     are defined by the Commission) for purposes of data reporting 
     requirements and setting routine detailed reporting 
     requirements for such entities in designated contract 
     markets, derivatives transaction execution facilities, 
     foreign boards of trade subject to section 4(e), and 
     electronic trading facilities with respect to significant 
     price discovery contracts with respect to exempt and 
     agricultural commodities not later than 60 days after the 
     date of the enactment of this subsection, and issue a final 
     rule within 120 days after such date of enactment.''.

     SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.

       (a) In General.--Section 4g(a) of the Commodity Exchange 
     Act (7 U.S.C. 6g(a)) is amended--
       (1) by inserting ``a'' before ``futures commission 
     merchant''; and
       (2) by inserting ``and transactions and positions traded 
     pursuant to subsection (g), (h)(1), or (h)(2) of section 2, 
     or any exemption issued by the Commission by rule, regulation 
     or order,'' after ``United States or elsewhere,''.
       (b) Reports of Deals Equal to or in Excess of Trading 
     Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
       (1) in the first sentence--
       (A) by inserting ``(a)'' before ``It shall''; and
       (B) by inserting ``in the United States or elsewhere, and 
     of transactions and positions in any such commodity entered 
     into pursuant to subsection (g), (h)(1), or (h)(2) of section 
     2, or any exemption issued by the Commission by rule, 
     regulation or order'' before ``, and of cash or spot''; and
       (2) by striking all that follows the 1st sentence and 
     inserting the following:
       ``(b) With respect to agricultural and energy commodities, 
     upon special call by the Commission, any person shall provide 
     to the Commission, in a form and manner and within the period 
     specified in the special call, books and records of all 
     transactions and positions traded on or subject to the rules 
     of any board of trade or electronic trading facility in the 
     United States or elsewhere, or pursuant to subsection (g), 
     (h)(1), or (h)(2) of section 2, or any exemption issued by 
     the Commission by rule, regulation, or order, as the 
     Commission may determine appropriate to deter and prevent 
     price manipulation or any other disruption to market 
     integrity or to diminish, eliminate, or prevent excessive 
     speculation as described in section 4a(a).
       ``(c) Such books and records described in subsections (a) 
     and (b) shall show complete details concerning all such 
     transactions, positions, inventories, and commitments, 
     including the names and addresses of all persons having any 
     interest therein, shall be kept for a period of 5 years, and 
     shall be open at all times to inspection by any 
     representative of the Commission or the Department of 
     Justice. For the purposes of this section, the futures and 
     cash or spot transactions and positions of any person shall 
     include such transactions and positions of any persons 
     directly or indirectly controlled by the person.''.
       (c) Conforming Amendments.--
       (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
       (A) by inserting ``4g(a), 4i,'' before ``5a (to''; and
       (B) by inserting ``, and the regulations of the Commission 
     pursuant to section 4c(b) requiring reporting in connection 
     with commodity option transactions,'' before ``shall apply''.
       (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
     amended to read as follows:
       ``(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and the 
     regulations of the Commission pursuant to section 4c(b) 
     requiring reporting in connection with commodity option 
     transactions;''.

     SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.

       Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 
     amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)''; and
       (B) by adding after and below the end the following:
       ``(2) In accordance with the standards set forth in 
     paragraph (1) of this subsection and consistent with the good 
     faith exception cited in subsection (b)(2), with respect to 
     agricultural commodities enumerated in section 1a(4) and 
     energy commodities, the Commission, within 60 days after the 
     date of the enactment of this paragraph, shall by rule, 
     regulation, or order establish limits on the amount of 
     positions that may be held by any person with respect to 
     contracts of sale for future delivery or with respect to 
     options on such contracts or commodities traded on or subject 
     to the rules of a contract market or derivatives transaction 
     execution facility, or on an electronic trading facility as a 
     significant price discovery contract.
       ``(3) In establishing the limits required in paragraph (2), 
     the Commission shall set limits--
       ``(A) on the number of positions that may be held by any 
     person for the spot month, each other month, and the 
     aggregate number of positions that may be held by any person 
     for all months;
       ``(B) to the maximum extent practicable, in its 
     discretion--
       ``(i) to diminish, eliminate, or prevent excessive 
     speculation as described under this section;
       ``(ii) to deter and prevent market manipulation, squeezes, 
     and corners;
       ``(iii) to ensure sufficient market liquidity for bona fide 
     hedgers; and
       ``(iv) to ensure that the price discovery function of the 
     underlying market is not disrupted; and
       ``(C) to the maximum extent practicable, in its discretion, 
     take into account the total number of positions in fungible 
     agreements, contracts, or transactions that a person can hold 
     in agricultural and energy commodities in other markets.
       ``(4)(A) Not later than 150 days after the date of the 
     enactment of this paragraph, the Commission shall convene a 
     Position Limit Agricultural Advisory Group and a Position 
     Limit Energy Group, each group consisting of representatives 
     from--
       ``(i) 5 predominantly commercial short hedgers of the 
     actual physical commodity for future delivery;
       ``(ii) 5 predominantly commercial long hedgers of the 
     actual physical commodity for future delivery;
       ``(iii) 4 non-commercial participants in markets for 
     commodities for future delivery; and
       ``(iv) each designated contract market or derivatives 
     transaction execution facility upon which a contract in the 
     commodity for future delivery is traded, and each electronic 
     trading facility that has a significant price discovery 
     contract in the commodity.
       ``(B) Not later than 60 days after the date on which the 
     advisory groups are convened under subparagraph (A), and 
     annually thereafter, the advisory groups shall submit to the 
     Commission advisory recommendations regarding the position 
     limits to be established in paragraph (2) and a 
     recommendation as to whether the position limits should be 
     administered directly by the Commission, or by the registered 
     entity on which the commodity is listed (with enforcement by 
     both the registered entity and the Commission).''; and
       (2) in subsection (c)--
       (A) by inserting ``(1)'' after ``(c)''; and
       (B) by adding after and below the end the following:
       ``(2) With respect to agricultural and energy commodities, 
     for the purposes of contracts of sale for future delivery and 
     options on such contracts or commodities, a bona fide hedging 
     transaction or position is a transaction or position that--
       ``(A)(i) represents a substitute for transactions to be 
     made or positions to be taken at a later time in a physical 
     marketing channel;
       ``(ii) is economically appropriate to the reduction of 
     risks in the conduct and management of a commercial 
     enterprise; and
       ``(iii) arises from the potential change in the value of--

[[Page 19584]]

       ``(I) assets that a person owns, produces, manufactures, 
     processes, or merchandises or anticipates owning, producing, 
     manufacturing, processing, or merchandising;
       ``(II) liabilities that a person owns or anticipates 
     incurring; or
       ``(III) services that a person provides, purchases, or 
     anticipates providing or purchasing; or
       ``(B) reduces risks attendant to a position resulting from 
     a transaction that--
       ``(i) was executed pursuant to subsection (g), (h)(1), or 
     (h)(2) of section 2, or an exemption issued by the Commission 
     by rule, regulation or order; and
       ``(ii) was executed opposite a counterparty for which the 
     transaction would qualify as a bona fide hedging transaction 
     pursuant to paragraph (2)(A) of this subsection.''.

     SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO 
                   POSITION LIMITS FOR CONTRACTS IN AGRICULTURAL 
                   AND ENERGY COMMODITIES.

       (a) Contracts Traded on Contract Markets.--Section 5(d)(5) 
     of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended 
     by striking all that follows ``adopt'' and inserting ``, for 
     speculators, position limitations with respect to 
     agricultural commodities enumerated in section 1a(4) or 
     energy commodities, and position limitations or position 
     accountability with respect to other commodities, where 
     necessary and appropriate.''.
       (b) Contracts Traded on Derivatives Transaction Execution 
     Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) 
     is amended by striking all that follows ``adopt'' and 
     inserting ``, for speculators, position limitations with 
     respect to energy commodities, and position limitations or 
     position accountability with respect to other commodities, 
     where necessary and appropriate for a contract, agreement or 
     transaction with an underlying commodity that has a 
     physically deliverable supply.''.
       (c) Significant Price Discovery Contracts.--Section 
     2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) 
     is amended by striking ``where necessary'' and all that 
     follows through ``in significant price discovery contracts'' 
     and inserting ``for speculators, position limitations with 
     respect to significant price discovery contracts in energy 
     commodities, and position limitations or position 
     accountability with respect to significant price discovery 
     contracts in other commodities''.

     SEC. 10. CFTC ADMINISTRATION.

       (a) 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 the enactment of this subparagraph, subject to 
     appropriations, the Commission shall appoint at least 100 
     full-time employees (in addition to the employees employed by 
     the Commission as of the date of the enactment of this 
     subparagraph)--
       ``(i) to increase the public transparency of operations in 
     agriculture and energy 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.''.
       (b) Inspector General of Commodity Futures Trading 
     Commission.--
       (1) Elevation of office.--
       (A) Inclusion of cftc in definition of establishment.--
     Section 11(2) of the Inspector General Act of 1878 (5 U.S.C. 
     App.) is amended by striking ``or the Export-Import Bank,'' 
     and inserting ``, the Export-Import Bank, or the Commodity 
     Futures Trading Commission,''.
       (B) Exclusion of cftc from definition of designated federal 
     entity.--Section 8G(a)(2) of such Act (5 U.S.C. App.) is 
     amended by striking ``the Commodity Futures Trading 
     Commission,''.
       (2) Transition.--Until such time as the Inspector General 
     of the Commodity Futures Trading Commission is appointed in 
     accordance with section 3 of the Inspector General Act of 
     1978, the Office of Inspector General of the Commission shall 
     continue in effect as provided in such Act before the date of 
     the enactment of this Act.

     SEC. 11. REVIEW OF PRIOR ACTIONS.

       Notwithstanding any other provision of the Commodity 
     Exchange Act, the Commodity Futures Trading Commission shall 
     review, as appropriate, all regulations, rules, exemptions, 
     exclusions, guidance, no action letters, orders, other 
     actions taken by or on behalf of the Commission, and any 
     action taken pursuant to the Commodity Exchange Act by an 
     exchange, self-regulatory organization, or any other 
     registered entity, that are currently in effect, to ensure 
     that such prior actions are in compliance with the provisions 
     of this Act.

     SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS.

       (a) Study.--The Commodity Futures Trading Commission shall 
     conduct a study--
       (1) to determine the efficacy, practicality, and 
     consequences of establishing position limits for agreements, 
     contracts, or transactions conducted in reliance on sections 
     2(g) and 2(h) of the Commodity Exchange Act and of any 
     exemption issued by the Commission by rule, regulation or 
     order, as a means to deter and prevent price manipulation or 
     any other disruption to market integrity or to diminish, 
     eliminate, or prevent excessive speculation as described in 
     section 4a of such Act for physical-based commodities; and
       (2) to determine the efficacy, practicality, and 
     consequences of establishing aggregate position limits for 
     similar agreements, contracts, or transactions for physical-
     based commodities traded--
       (A) on designated contract markets;
       (B) on derivatives transaction execution facilities; and
       (C) in reliance on such sections 2(g) and 2(h) and of any 
     exemption issued by the Commission by rule, regulation or 
     order.
       (b) Public Hearings.--The Commission shall provide for not 
     less than 2 public hearings to take testimony, on the record, 
     as part of the fact- gathering process in preparation of the 
     report.
       (c) Report and Recommendations.--Not less than 12 months 
     after the date of the enactment of this section, the 
     Commission shall provide to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that--
       (1) describes the results of the study; and
       (2) provides recommendations on any actions necessary to 
     deter and prevent price manipulation or any other disruption 
     to market integrity or to diminish, eliminate, or prevent 
     excessive speculation as described in section 4a of the 
     Commodity Exchange Act for physical-based commodities, 
     including--
       (A) any additional statutory authority that the Commission 
     determines to be necessary to implement the recommendations; 
     and
       (B) a description of the resources that the Commission 
     considers to be necessary to implement the recommendations.

     SEC. 13. 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, position accountability levels, or other 
     thresholds to detect and prevent price manipulation, 
     excessive speculation as described in section 4a of the 
     Commodity Exchange Act, 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 futures authorities and between futures 
     authorities and the entities that the futures authorities 
     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 the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that--
       (A) describes the results of the study;
       (B) addresses whether there is excessive speculation, and 
     if so, the effects of any such 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 Speculators on Agriculture 
     and Energy Futures Markets and Agriculture and Energy 
     Prices.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study of the effects of speculators on 
     agriculture and energy futures markets and agriculture and 
     energy prices.
       (2) Analysis.--The study shall include an analysis of, at a 
     minimum--
       (A) the effect of increased amounts of capital in 
     agriculture and energy futures markets;
       (B) the impact of the roll-over of positions by index fund 
     traders and swap dealers on agriculture and energy futures 
     markets and agriculture and energy prices; and
       (C) the extent to which each factor described in 
     subparagraphs (A) and (B) and speculators--
       (i) affect--

       (I) the pricing of agriculture and 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 the 
     enactment of this Act, the Comptroller General shall submit 
     to the

[[Page 19585]]

     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the results of the study.

     SEC. 14. OVER-THE-COUNTER AUTHORITY.

       (a) In General.--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 Authority.--
       ``(1) Within 60 days after the date of the enactment of 
     this subsection, the Commission shall, by rule, regulation, 
     or order, require routine reporting as it deems in its 
     discretion appropriate, on not less than a monthly basis, of 
     agreements, contracts, or transactions, with regard to an 
     agricultural or energy commodity, entered into in reliance on 
     subsection (g), (h)(1), or (h)(2) of section 2, or any 
     exemption issued by the Commission by rule, regulation, or 
     order that are fungible (as defined by the Commission) with 
     agreements, contracts, or transactions traded on or subject 
     to the rules of any board of trade or of any electronic 
     trading facility with respect to a significant price 
     discovery contract.
       ``(2) Notwithstanding subsections (g), (h)(1), and (h)(2) 
     of section 2, and any exemption issued by the Commission by 
     rule, regulation, or order, the Commission shall assess and 
     issue a finding on whether the agreements, contracts, or 
     transactions reported pursuant to paragraph (1), alone or in 
     conjunction with other similar agreements, contracts, or 
     transactions, have the potential to--
       ``(A) disrupt the liquidity or price discovery function on 
     a registered entity;
       ``(B) cause a severe market disturbance in the underlying 
     cash or futures market for an agricultural or energy 
     commodity; or
       ``(C) prevent or otherwise impair the price of a contract 
     listed for trading on a registered entity from reflecting the 
     forces of supply and demand in any market for an agricultural 
     commodity enumerated in section 1a(4) or an energy commodity.
       ``(3) If the Commission makes a finding pursuant to 
     paragraph (2) of this subsection, the Commission may, in its 
     discretion, utilize its authority under section 8a(9) to 
     impose position limits for speculators on the agreements, 
     contracts, or transactions involved and take corrective 
     actions to enforce the limits.''.
       (b) Conforming Amendments.--
       (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by 
     inserting ``subsection (j) of this section, and'' after 
     ``(other than''.
       (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
     amended by inserting ``subsection (j) of this section and'' 
     before ``sections''.
       (3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is 
     amended by inserting after ``of the Commission's action'' the 
     following: ``, and to fix and enforce limits to agreements, 
     contracts, or transaction subject to section 2(j)(1) pursuant 
     to a finding made under section 2(j)(2)''.

     SEC. 15. EXPEDITED PROCESS.

       The Commodity Futures Trading Commission may use emergency 
     and expedited procedures (including any administrative or 
     other procedure as appropriate) to carry out this Act if, in 
     its discretion, it deems it necessary to do so.

  The SPEAKER pro tempore. Pursuant to House Resolution 1449, the 
amendment in the nature of a substitute printed in House Report 110-859 
is adopted and the bill, as amended, is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 6604

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commodity Markets 
     Transparency and Accountability Act of 2008''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of energy commodity.
Sec. 4. Speculative limits and transparency of off-shore trading.
Sec. 5. Disaggregation of index funds and other data in energy and 
              agriculture markets.
Sec. 6. Detailed reporting from index traders and swap dealers.
Sec. 7. Transparency and recordkeeping authorities.
Sec. 8. Trading limits to prevent excessive speculation.
Sec. 9. Modifications to core principles applicable to position limits 
              for contracts in agricultural and energy commodities.
Sec. 10. CFTC Administration.
Sec. 11. Review of prior actions.
Sec. 12. Review of over-the-counter markets.
Sec. 13. Studies; reports.
Sec. 14. Over-the-counter authority.
Sec. 15. Expedited process.

     SEC. 3. 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) coal;
       ``(B) crude oil, gasoline, diesel fuel, jet fuel, heating 
     oil, and propane;
       ``(C) electricity;
       ``(D) natural gas; and
       ``(E) any other substance that is used as a source of 
     energy, as the Commission, in its discretion, deems 
     appropriate.''.
       (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''.
       (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. 4. SPECULATIVE LIMITS AND TRANSPARENCY OF OFF-SHORE 
                   TRADING.

       (a) In General.--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 
     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 or 
     agricultural 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 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 agreement, contract, or transaction traded on the 
     foreign board of trade settles; 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) for the agreement, contract, or 
     transaction that are comparable, taking into consideration 
     the relative sizes of the respective markets, to the position 
     limits (including related hedge exemption provisions) adopted 
     by the registered entity for the 1 or more contracts against 
     which the agreement, contract, or transaction traded on 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 as described in section 
     4a, price distortion, or disruption of delivery or the cash 
     settlement process;
       ``(iii) agrees to promptly notify the Commission of any 
     change regarding--

       ``(I) the information that the foreign board of trade will 
     make publicly available;
       ``(II) the position limits that the foreign board of trade 
     or foreign futures authority will adopt and enforce;
       ``(III) the position reductions required to prevent 
     manipulation, excessive speculation as described in section 
     4a, price distortion, or disruption of delivery or the cash 
     settlement process; and
       ``(IV) any other area of interest expressed by the 
     Commission to the foreign board of trade or foreign futures 
     authority;

       ``(iv) provides information to the Commission regarding 
     large trader positions in the agreement, contract, or 
     transaction that is comparable to the large trader position 
     information collected by the Commission for the 1 or more 
     contracts against which the agreement, contract, or 
     transaction traded on the foreign board of trade settles; and
       ``(v) provides the Commission with information necessary to 
     publish reports on aggregate trader positions for the 
     agreement, contract, or transaction traded on the foreign 
     board of trade that are comparable to such reports for 1 or 
     more contracts against which the agreement, contract, or 
     transaction traded on 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 before the date of the enactment of 
     this subsection until the date that is 180 days after such 
     date of enactment.''.

[[Page 19586]]

       (b) Liability of Registered Persons Trading on a Foreign 
     Board of Trade.--
       (1) Section 4(a) of such Act (7 U.S.C. 6(a)) is amended by 
     inserting ``or by subsection (f)'' after ``Unless exempted by 
     the Commission pursuant to subsection (c)''.
       (2) Section 4 of such Act (7 U.S.C. 6) is further amended 
     by adding at the end the following:
       ``(f) A person registered with the Commission, or exempt 
     from registration by the Commission, under this Act may not 
     be found to have violated subsection (a) with respect to a 
     transaction in, or in connection with, a contract of sale of 
     a commodity for future delivery if the person has reason to 
     believe the transaction and the contract is made on or 
     subject to the rules of a board of trade that is legally 
     organized under the laws of a foreign country, authorized to 
     act as a board of trade by a foreign futures authority, 
     subject to regulation by the foreign futures authority, and 
     has not been determined by the Commission to be operating in 
     violation of subsection (a).''.
       (c) Contract Enforcement for Foreign Futures Contracts.--
     Section 22(a) of such Act (7 U.S.C. 25(a)) is amended by 
     adding at the end the following:
       ``(5) A contract of sale of a commodity for future delivery 
     traded or executed on or through the facilities of a board of 
     trade, exchange, or market located outside the United States 
     for purposes of section 4(a) shall not be void, voidable, or 
     unenforceable, and a party to such a contract shall not be 
     entitled to rescind or recover any payment made with respect 
     to the contract, based on the failure of the foreign board of 
     trade to comply with any provision of this Act.''.

     SEC. 5. DISAGGREGATION OF INDEX FUNDS AND OTHER DATA IN 
                   ENERGY AND AGRICULTURE MARKETS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 
     amended by section 4 of this Act, is amended by adding at the 
     end the following:
       ``(g) Disaggregation of Index Funds and Other Data in 
     Energy and Agriculture Markets.--Subject to section 8 and 
     beginning within 30 days of the issuance of the final rule 
     required by section 4(h), the Commission shall disaggregate 
     and make public weekly--
       ``(1) the number of positions and total value of index 
     funds and other passive, long-only and short-only positions 
     (as defined by the Commission) in all energy and agricultural 
     markets to the extent such information is available; and
       ``(2) data on speculative positions relative to bona fide 
     physical hedgers in those markets to the extent such 
     information is available.''.

     SEC. 6. DETAILED REPORTING FROM INDEX TRADERS AND SWAP 
                   DEALERS.

       Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as 
     amended by sections 4 and 5 of this Act, is amended by adding 
     at the end the following:
       ``(h) Index Traders and Swap Dealers Reporting.--The 
     Commission shall issue a proposed rule defining and 
     classifying index traders and swap dealers (as those terms 
     are defined by the Commission) for purposes of data reporting 
     requirements and setting routine detailed reporting 
     requirements for such entities in designated contract 
     markets, derivatives transaction execution facilities, 
     foreign boards of trade subject to section 4(e), and 
     electronic trading facilities with respect to significant 
     price discovery contracts with respect to exempt and 
     agricultural commodities not later than 60 days after the 
     date of the enactment of this subsection, and issue a final 
     rule within 120 days after such date of enactment.''.

     SEC. 7. TRANSPARENCY AND RECORDKEEPING AUTHORITIES.

       (a) In General.--Section 4g(a) of the Commodity Exchange 
     Act (7 U.S.C. 6g(a)) is amended--
       (1) by inserting ``a'' before ``futures commission 
     merchant''; and
       (2) by inserting ``and transactions and positions traded 
     pursuant to subsection (g), (h)(1), or (h)(2) of section 2, 
     or any exemption issued by the Commission by rule, regulation 
     or order,'' after ``United States or elsewhere,''.
       (b) Reports of Deals Equal to or in Excess of Trading 
     Limits.--Section 4i of such Act (7 U.S.C. 6i) is amended--
       (1) in the first sentence--
       (A) by inserting ``(a)'' before ``It shall''; and
       (B) by inserting ``in the United States or elsewhere, and 
     of transactions and positions in any such commodity entered 
     into pursuant to subsection (g), (h)(1), or (h)(2) of section 
     2, or any exemption issued by the Commission by rule, 
     regulation or order'' before ``, and of cash or spot''; and
       (2) by striking all that follows the 1st sentence and 
     inserting the following:
       ``(b) With respect to agricultural and energy commodities, 
     upon special call by the Commission, any person shall provide 
     to the Commission, in a form and manner and within the period 
     specified in the special call, books and records of all 
     transactions and positions traded on or subject to the rules 
     of any board of trade or electronic trading facility in the 
     United States or elsewhere, or pursuant to subsection (g), 
     (h)(1), or (h)(2) of section 2, or any exemption issued by 
     the Commission by rule, regulation, or order, as the 
     Commission may determine appropriate to deter and prevent 
     price manipulation or any other disruption to market 
     integrity or to diminish, eliminate, or prevent excessive 
     speculation as described in section 4a(a).
       ``(c) Such books and records described in subsections (a) 
     and (b) shall show complete details concerning all such 
     transactions, positions, inventories, and commitments, 
     including the names and addresses of all persons having any 
     interest therein, shall be kept for a period of 5 years, and 
     shall be open at all times to inspection by any 
     representative of the Commission or the Department of 
     Justice. For the purposes of this section, the futures and 
     cash or spot transactions and positions of any person shall 
     include such transactions and positions of any persons 
     directly or indirectly controlled by the person.''.
       (c) Conforming Amendments.--
       (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended--
       (A) by inserting ``4g(a), 4i,'' before ``5a (to''; and
       (B) by inserting ``, and the regulations of the Commission 
     pursuant to section 4i(b) requiring reporting in connection 
     with commodity option transactions,'' before ``shall apply''.
       (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
     amended to read as follows:
       ``(A) sections 4g(a), 4i, 5b and 12(e)(2)(B), and the 
     regulations of the Commission pursuant to section 4i(b) 
     requiring reporting in connection with commodity option 
     transactions;''.

     SEC. 8. TRADING LIMITS TO PREVENT EXCESSIVE SPECULATION.

       Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) is 
     amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)''; and
       (B) by adding after and below the end the following:
       ``(2) In accordance with the standards set forth in 
     paragraph (1) of this subsection and consistent with the good 
     faith exception cited in subsection (b)(2), with respect to 
     agricultural commodities enumerated in section 1a(4) and 
     energy commodities, the Commission, within 60 days after the 
     date of the enactment of this paragraph, shall by rule, 
     regulation, or order establish limits on the amount of 
     positions, other than bona fide hedge positions, that may be 
     held by any person with respect to contracts of sale for 
     future delivery or with respect to options on such contracts 
     or commodities traded on or subject to the rules of a 
     contract market or derivatives transaction execution 
     facility, or on an electronic trading facility as a 
     significant price discovery contract.
       ``(3) In establishing the limits required in paragraph (2), 
     the Commission shall set limits--
       ``(A) on the number of positions that may be held by any 
     person for the spot month, each other month, and the 
     aggregate number of positions that may be held by any person 
     for all months;
       ``(B) to the maximum extent practicable, in its 
     discretion--
       ``(i) to diminish, eliminate, or prevent excessive 
     speculation as described under this section;
       ``(ii) to deter and prevent market manipulation, squeezes, 
     and corners;
       ``(iii) to ensure sufficient market liquidity for bona fide 
     hedgers; and
       ``(iv) to ensure that the price discovery function of the 
     underlying market is not disrupted; and
       ``(C) to the maximum extent practicable, in its discretion, 
     take into account the total number of positions in fungible 
     agreements, contracts, or transactions that a person can hold 
     in agricultural and energy commodities in other markets.
       ``(4)(A) Not later than 150 days after the date of the 
     enactment of this paragraph, the Commission shall convene a 
     Position Limit Agricultural Advisory Group and a Position 
     Limit Energy Group, each group consisting of representatives 
     from--
       ``(i) 7 predominantly commercial short hedgers of the 
     actual physical commodity for future delivery;
       ``(ii) 7 predominantly commercial long hedgers of the 
     actual physical commodity for future delivery;
       ``(iii) 4 non-commercial participants in markets for 
     commodities for future delivery; and
       ``(iv) each designated contract market or derivatives 
     transaction execution facility upon which a contract in the 
     commodity for future delivery is traded, and each electronic 
     trading facility that has a significant price discovery 
     contract in the commodity.
       ``(B) Not later than 60 days after the date on which the 
     advisory groups are convened under subparagraph (A), and 
     annually thereafter, the advisory groups shall submit to the 
     Commission advisory recommendations regarding the position 
     limits to be established in paragraph (2) and a 
     recommendation as to whether the position limits should be 
     administered directly by the Commission, or by the registered 
     entity on which the commodity is listed (with enforcement by 
     both the registered entity and the Commission).''; and
       (2) in subsection (c)--
       (A) by inserting ``(1)'' after ``(c)''; and

[[Page 19587]]

       (B) by adding after and below the end the following:
       ``(2) With respect to agricultural and energy commodities, 
     for the purposes of contracts of sale for future delivery and 
     options on such contracts or commodities, the Commission 
     shall define what constitutes a bona fide hedging transaction 
     or position as a transaction or position that--
       ``(A)(i) represents a substitute for transactions to be 
     made or positions to be taken at a later time in a physical 
     marketing channel;
       ``(ii) is economically appropriate to the reduction of 
     risks in the conduct and management of a commercial 
     enterprise; and
       ``(iii) arises from the potential change in the value of--
       ``(I) assets that a person owns, produces, manufactures, 
     processes, or merchandises or anticipates owning, producing, 
     manufacturing, processing, or merchandising;
       ``(II) liabilities that a person owns or anticipates 
     incurring; or
       ``(III) services that a person provides, purchases, or 
     anticipates providing or purchasing; or
       ``(B) reduces risks attendant to a position resulting from 
     a transaction that--
       ``(i) was executed pursuant to subsection (g), (h)(1), or 
     (h)(2) of section 2, or an exemption issued by the Commission 
     by rule, regulation or order; and
       ``(ii) was executed opposite a counterparty for which the 
     transaction would qualify as a bona fide hedging transaction 
     pursuant to paragraph (2)(A) of this subsection.''.

     SEC. 9. MODIFICATIONS TO CORE PRINCIPLES APPLICABLE TO 
                   POSITION LIMITS FOR CONTRACTS IN AGRICULTURAL 
                   AND ENERGY COMMODITIES.

       (a) Contracts Traded on Contract Markets.--Section 5(d)(5) 
     of the Commodity Exchange Act (7 U.S.C. 7(d)(5)) is amended 
     by striking all that follows ``adopt'' and inserting ``, for 
     speculators, position limitations with respect to 
     agricultural commodities enumerated in section 1a(4) or 
     energy commodities, and position limitations or position 
     accountability with respect to other commodities, where 
     necessary and appropriate.''.
       (b) Contracts Traded on Derivatives Transaction Execution 
     Facilities.--Section 5a(d)(4) of such Act (7 U.S.C. 7a(d)(4)) 
     is amended by striking all that follows ``adopt'' and 
     inserting ``, for speculators, position limitations with 
     respect to energy commodities, and position limitations or 
     position accountability with respect to other commodities, 
     where necessary and appropriate for a contract, agreement or 
     transaction with an underlying commodity that has a 
     physically deliverable supply.''.
       (c) Significant Price Discovery Contracts.--Section 
     2(h)(7)(C)(ii)(IV) of such Act (7 U.S.C. 2(h)(7)(C)(ii)(IV)) 
     is amended by striking ``where necessary'' and all that 
     follows through ``in significant price discovery contracts'' 
     and inserting ``for speculators, position limitations with 
     respect to significant price discovery contracts in energy 
     commodities, and position limitations or position 
     accountability with respect to significant price discovery 
     contracts in other commodities''.

     SEC. 10. CFTC ADMINISTRATION.

       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 the enactment of this subparagraph, subject to 
     appropriations, the Commission shall appoint at least 100 
     full-time employees (in addition to the employees employed by 
     the Commission as of the date of the enactment of this 
     subparagraph)--
       ``(i) to increase the public transparency of operations in 
     agriculture and energy 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. REVIEW OF PRIOR ACTIONS.

       Notwithstanding any other provision of the Commodity 
     Exchange Act, the Commodity Futures Trading Commission shall 
     review, as appropriate, all regulations, rules, exemptions, 
     exclusions, guidance, no action letters, orders, other 
     actions taken by or on behalf of the Commission, and any 
     action taken pursuant to the Commodity Exchange Act by an 
     exchange, self-regulatory organization, or any other 
     registered entity, that are currently in effect, to ensure 
     that such prior actions are in compliance with the provisions 
     of this Act.

     SEC. 12. REVIEW OF OVER-THE-COUNTER MARKETS.

       (a) Study.--The Commodity Futures Trading Commission shall 
     conduct a study--
       (1) to determine the efficacy, practicality, and 
     consequences of establishing limits on the amount of 
     positions, other than bona fide hedge positions, that may be 
     held by any person with respect to agreements, contracts, or 
     transactions involving an agricultural or energy commodity, 
     conducted in reliance on sections 2(g) and 2(h) of the 
     Commodity Exchange Act and of any exemption issued by the 
     Commission by rule, regulation or order, that are fungible 
     (as defined by the Commission) with agreements, contracts, or 
     transactions traded on or subject to the rules of any board 
     of trade or of any electronic trading facility with respect 
     to a signifcant price discovery contract, as a means to deter 
     and prevent price manipulation or any other disruption to 
     market integrity or to diminish, eliminate, or prevent 
     excessive speculation as described in section 4a of such Act 
     for physical-based agricultural or energy commodities; and
       (2) to determine the efficacy, practicality, and 
     consequences of establishing aggregate position limits for 
     similar agreements, contracts, or transactions for physical-
     based agricultural or energy commodities traded--
       (A) on designated contract markets;
       (B) on derivatives transaction execution facilities; and
       (C) in reliance on such sections 2(g) and 2(h) and of any 
     exemption issued by the Commission by rule, regulation or 
     order.
       (b) Public Hearings.--The Commission shall provide for not 
     less than 2 public hearings to take testimony, on the record, 
     as part of the fact- gathering process in preparation of the 
     report.
       (c) Report and Recommendations.--Not less than 12 months 
     after the date of the enactment of this section, the 
     Commission shall provide to the Committee on Agriculture of 
     the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that--
       (1) describes the results of the study; and
       (2) provides recommendations on any actions necessary to 
     deter and prevent price manipulation or any other disruption 
     to market integrity or to diminish, eliminate, or prevent 
     excessive speculation as described in section 4a of the 
     Commodity Exchange Act for physical-based commodities, 
     including--
       (A) any additional statutory authority that the Commission 
     determines to be necessary to implement the recommendations; 
     and
       (B) a description of the resources that the Commission 
     considers to be necessary to implement the recommendations.

     SEC. 13. 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, position accountability levels, or other 
     thresholds to detect and prevent price manipulation, 
     excessive speculation as described in section 4a of the 
     Commodity Exchange Act, 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 futures authorities and between futures 
     authorities and the entities that the futures authorities 
     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 the 
     enactment of this Act, the Comptroller General shall submit 
     to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that--
       (A) describes the results of the study;
       (B) addresses whether there is excessive speculation, and 
     if so, the effects of any such 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 Speculators on Agriculture 
     and Energy Futures Markets and Agriculture and Energy 
     Prices.--
       (1) Study.--The Commodity Futures Trading Commission shall 
     conduct a study of the effects of speculators on agriculture 
     and energy futures markets and agriculture and energy prices.
       (2) Analysis.--The study shall include an analysis of, at a 
     minimum--
       (A) the effect of increased amounts of capital in 
     agriculture and energy futures markets;
       (B) the impact of the roll-over of positions by index fund 
     traders and swap dealers on agriculture and energy futures 
     markets and agriculture and energy prices; and
       (C) the extent to which each factor described in 
     subparagraphs (A) and (B) and speculators--
       (i) affect--

       (I) the pricing of agriculture and 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 the 
     enactment of this Act, the

[[Page 19588]]

     Commodity Futures Trading Commission shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the results of the study.

     SEC. 14. OVER-THE-COUNTER AUTHORITY.

       (a) In General.--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 Authority.--
       ``(1) Within 60 days after the date of the enactment of 
     this subsection, the Commission shall, by rule, regulation, 
     or order, require routine reporting as it deems in its 
     discretion appropriate, on not less than a monthly basis, of 
     agreements, contracts, or transactions, with regard to an 
     agricultural or energy commodity, entered into in reliance on 
     subsection (g), (h)(1), or (h)(2) of section 2, or any 
     exemption issued by the Commission by rule, regulation, or 
     order that are fungible (as defined by the Commission) with 
     agreements, contracts, or transactions traded on or subject 
     to the rules of any board of trade or of any electronic 
     trading facility with respect to a significant price 
     discovery contract.
       ``(2) Notwithstanding subsections (g), (h)(1), and (h)(2) 
     of section 2, and any exemption issued by the Commission by 
     rule, regulation, or order, the Commission shall assess and 
     issue a finding on whether the agreements, contracts, or 
     transactions reported pursuant to paragraph (1), alone or in 
     conjunction with other similar agreements, contracts, or 
     transactions, have the potential to--
       ``(A) disrupt the liquidity or price discovery function on 
     a registered entity;
       ``(B) cause a severe market disturbance in the underlying 
     cash or futures market for an agricultural or energy 
     commodity; or
       ``(C) prevent or otherwise impair the price of a contract 
     listed for trading on a registered entity from reflecting the 
     forces of supply and demand in any market for an agricultural 
     commodity enumerated in section 1a(4) or an energy commodity.
       ``(3) If the Commission makes a finding pursuant to 
     paragraph (2) of this subsection, the Commission may, in its 
     discretion, utilize its authority under section 8a(9) to 
     impose position limits (including, as appropriate and in its 
     discretion, related hedge exemption provisions for bona fide 
     hedging comparable to bona fide hedge provisions of section 
     4a(c)(2)) on agreements, contracts, or transactions involved, 
     and take corrective actions to enforce the limits.''.
       (b) Conforming Amendments.--
       (1) Section 2(g) of such Act (7 U.S.C. 2(g)) is amended by 
     inserting ``subsection (j) of this section, and'' after 
     ``(other than''.
       (2) Section 2(h)(2)(A) of such Act (7 U.S.C. 2(h)(2)(A)) is 
     amended by inserting ``subsection (j) of this section and'' 
     before ``sections''.
       (3) Section 8a(9) of such Act (7 U.S.C. 12a(a)(9)) is 
     amended by inserting after ``of the Commission's action'' the 
     following: ``, and to fix and enforce limits to agreements, 
     contracts, or transaction subject to section 2(j)(1) pursuant 
     to a finding made under section 2(j)(2)''.

     SEC. 15. EXPEDITED PROCESS.

       The Commodity Futures Trading Commission may use emergency 
     and expedited procedures (including any administrative or 
     other procedure as appropriate) to carry out this Act if, in 
     its discretion, it deems it necessary to do so.

  The SPEAKER pro tempore. The gentleman from Minnesota (Mr. Peterson) 
and the gentleman from Virginia (Mr. Goodlatte) each will control 30 
minutes.
  The Chair recognizes the gentleman from Minnesota.
  Mr. PETERSON of Minnesota. Mr. Speaker, H.R. 6604, the Commodity 
Markets Transparency and Accountability Act of 2008, will strengthen 
oversight of the Commodity Futures Market for energy and agricultural 
commodities. This bill will be almost entirely identical to the version 
that we considered under suspension here on July 30, 2008.
  There are two changes that are purely technical and corrected 
typographical errors, and there are two other changes that we made in 
the bill to make sure the provisions are entirely within the 
jurisdiction of the Agriculture Committee.
  One strikes section 10(b) regarding the Inspector General of the 
CFTC. The other, section 13(b) is modified so the Commodity Futures 
Trading Commission does the reference study instead of the Comptroller 
General.
  Mr. Speaker, on this bill we have gotten more information in the 
committee, and Mr. Etheridge had a hearing that he chaired last week.
  I would at this time yield 5 minutes to the gentleman from North 
Carolina (Mr. Etheridge) who has been working with me tirelessly on 
this to talk about the process and explain the bill.
  Mr. ETHERIDGE. I thank the chairman.
  I am pleased today to join Chairman Peterson and Ranking Member 
Goodlatte in bringing this legislation, the Commodity Markets 
Transparency and Accountability Act of 2008, to the floor for 
consideration by the House.
  Mr. Speaker, since our bill was considered by the full House this 
past July, much has happened. For one thing, oil prices have dropped, 
and they have dropped considerably. They have gone up in the last day 
or so. Additionally, the CFTC has released a report providing the most 
detailed and accurate look at data on index trading and swap dealers 
participating in the over-the-counter market.
  While all of us are glad to see the prices of oil decline and other 
commodities in recent months, it does not relieve the Commission or 
this Congress of our responsibility to make sure that commodity markets 
are operating effectively, efficiently and fairly. And while the CFTC 
report indicates that index funds and swap dealers have less influence 
on our markets than had otherwise been reported, the report does not 
tell us the whole story or provide us with all the answers to our 
questions regarding these markets.
  The CFTC report fails to include the time period of this July and 
August and recent weeks when oil prices fell fairly rapidly. Do we have 
a clear understanding of why prices fell? No. Passing H.R. 6604 will 
provide the CFTC with the authority and the tools to examine the entire 
marketplace to ensure no individual group or groups of market 
participants is having an undue influence on the market.
  Months ago, the CFTC was telling Congress that it needed no 
additional changes to the Commodity Exchange Act and that markets were 
functioning properly. Now the CFTC's report contains a host of 
proposals very similar to the provisions in the Commodities Market 
Transparency and Accountability Act.
  The report recommends measures designed to enhance transparency and 
data accuracy for commodity markets. Our bill provides the commission 
with the tools to make that happen.
  The report suggests revising the hedge exemption rules that allow 
traders to exceed speculation position limits. Our bill accomplishes 
that too.
  The report highlights the desperate need for additional staff and 
resources at the CFTC, not only to accomplish its current mission, but 
also to implement its recommendations to bring greater transparency and 
accountability to the commodity markets. We happen to agree.
  Since 2000, volume on the commodity markets has increased sixfold, 
but currently staffing levels at the CFTC have fallen to their lowest 
level in the 33-year history of the Commodities Exchange. Through this 
legislation, we acknowledge the need for 100 additional full-time 
positions at CFTC that they need to effectively regulate the futures 
industry, including our energy markets. But we should not kid 
ourselves. The CFTC needs far more resources to do the job that we 
expect them to do.

                              {time}  1230

  Earlier this year the chairman of the CFTC testified at a hearing 
that the agency needed 100 additional staff right now just to meet the 
growing surveillance needs.
  In testimony presented to the House Agriculture Committee a week ago 
today, the chairman of the commission testified the CFTC would need 
still another 138 full-time staff and $38 million just in 2009 to 
implement the provisions of H.R. 6604. Given the light of what is 
happening in the markets, I think we understand why the need is there.
  I have said this before, but it bears repeating, if Congress places 
additional responsibility upon the Commission, without providing the 
resources necessary to meet those responsibilities, then what we pass 
here today is simply a farce. Through its report, CFTC views on 
effective oversight of commodity markets have changed dramatically from 
where the commission was previously.
  I know some of my colleagues will say let's wait and give the 
commission

[[Page 19589]]

time to implement these recommendations administratively. I say why 
wait for the commission to implement changes that we as a Congress can 
do right now with H.R. 6604.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. PETERSON of Minnesota. Mr. Speaker, I yield the gentleman another 
30 seconds.
  Mr. ETHERIDGE. We can all agree that no one factor is responsible for 
the movement we have seen in agriculture and energy prices, but this 
legislation is an important measure to provide the CFTC with additional 
tools and authority to keep our markets free of manipulation and excess 
speculation and help restore confidence to these markets. We cannot 
allow excess speculation by Wall Street to cause folks on Main Street 
to suffer.
  I urge my colleagues to support this legislation.
  Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may 
consume.
  For the past few years, the Committee on Agriculture has taken a 
proactive approach to try to understand and monitor the issue of 
trading activity in the futures markets and conduct appropriate 
oversight. This was so we could make an informed decision about whether 
or not commodity markets need greater transparency and accountability.
  Last week, CFTC Acting Chairman Walt Lukken presented a 6-month study 
of the futures market to the committee. Chairman Lukken and his staff 
spent a lot of hours and a great deal of work over the past 3 months to 
produce that report. We appreciated their efforts, especially for 
keeping an aggressive timetable.
  The CFTC report was useful in providing a reference point in 
determining the relationship between index fund-related activity in the 
over-the-counter markets and commodity futures, and energy and 
agriculture prices in the United States.
  However, as we move forward today with H.R. 6604, there are key 
factors for us to consider.
  One, after hearing testimony from Mr. Lukken, and after examining the 
findings of this report, it is evident that our priority should be 
ensuring that the CFTC has the tools and resources it needs to protect 
and preserve the integrity of our futures markets.
  The CFTC devoted more than 30 employees and 4,000 staff hours to 
produce this report. Those who have read the report all agree that 
these broad snapshots of the markets are necessary, but the CFTC does 
not have the staff to dedicate to similar projects.
  This bill directs the CFTC to hire 100 additional employees. But 
because there has not been a single appropriations bill passed by both 
Chambers and presented to the President, I have no idea how the already 
underfunded agency will be able to do so.
  The Democratic leadership is fond of pointing the finger of blame, 
but ultimately the Democratic leadership has one duty, to consider and 
pass the appropriations bills that fund the government. The Democratic 
leadership has refused to execute this duty and has failed the American 
taxpayer.
  Second, this bill will not reduce the price of oil. It will not 
relieve the burden many Americans face at the gas pump. In order to 
achieve that very important goal, Congress must focus on creating a 
viable energy policy that goes beyond the measures passed thus far to 
increase the domestic supply of energy sources and promote energy 
independence.
  Though I have concerns that some of the provisions in H.R. 6604 are 
too far-reaching, I will continue to support this bill to ensure that 
the CFTC has all the tools it needs to preserve and protect the 
integrity of our futures markets.
  But I know, as I have worked closely with the chairman of the 
committee, who has worked in a very bipartisan fashion to fashion this 
legislation and address these concerns and make sure the CFTC has the 
necessary oversight authority and capability, that this bill would 
provide for it.
  I also know that this is not what the American people want and need 
when it comes to energy. I know that there are many on the other side 
of the aisle who are hoping still to have an opportunity to vote, not 
on a hoax, not on a sham like we did 2 days ago, but on a real American 
energy bill that provides for real offshore drilling, not a bill that 
would shut off 80 to 90 percent of the known oil and natural gas 
reserves from access, not a bill that does nothing to promote nuclear 
power, not a bill that doesn't take up consideration of drilling in the 
Arctic National Wildlife Refuge, not a bill that shuts us off from 
tapping into the oil shale reserves that are in tremendous abundance in 
the Rocky Mountain States, not a bill that does nothing for coal-to-
liquid and other clean coal technologies that would benefit the 
American people, since we have the largest coal reserves in the world, 
not a bill that imposes tax increases in order to get to the 
alternative forms of energy that the American people want to have, but, 
rather, the American Energy Act, something that we asked this Congress 
to bring up before we went into a 5-week August recess.
  While the Speaker of the House ordered the microphones turned off, 
the C-SPAN cameras turned off, the lights turned down low, we stayed 
here day after day, week after week, calling for a vote on the American 
Energy Act. We didn't get it.
  Instead, we got this sham hoax that won't produce a drop of new oil, 
won't produce a cubic foot of new natural gas, will do nothing for 
nuclear power, will do nothing for coal, will do nothing for 
alternative forms of energy. It is simply an effort to try to derail 
what the American people clearly wanted to see on the floor of this 
House.
  We still haven't seen it. This bill doesn't do it. We need to have 
that vote, and that's what the debate should be about here today, not 
this legislation which is good, but does not do what the American 
people want.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PETERSON of Minnesota. I want to take a second to commend my 
ranking member for the outstanding work that did he with us on a 
bipartisan basis in this committee to bring this bill forward. We take 
our jurisdiction very seriously, and we think we have produced a good 
product.
  Mr. Speaker, I am now pleased to recognize the gentleman from 
Connecticut (Mr. Courtney) for 1 minute.
  Mr. COURTNEY. Mr. Speaker, I rise in strong support of Chairman 
Peterson's bill, which is a logical follow-on to Tuesday's energy bill 
that had two goals: number one, to bring immediate relief to consumers; 
and, two, to bring long-term solutions to America's energy challenges. 
This bill will go a long way to bring accountability to the price of a 
critical commodity, oil, which is the lifeblood of our economy.
  The facts are clear, before energy commodities trading was exempted 
from CFTC oversight, about 70 percent of the energy futures trading was 
done by energy companies, 30 percent was done by speculators. Today 
those numbers are reversed, and the trading volume has increased 
sixfold.
  As an old friend of mine, who has been in the scrap metal business in 
Willimantic, Connecticut, for 30 years said, commodity markets were 
never intended to be investment markets. Yet that is what they have 
become, and consumers and small businesses cannot keep up with the huge 
price swings occurring every day with no apparent connection to supply 
and demand.
  These huge price swings have a direct result on my constituents in 
eastern Connecticut who are facing dire circumstances if home heating 
oil remains at high and unstable prices this fall and winter. It is 
time that Congress took additional steps to make sure that all markets, 
including foreign boards of trade, operate with CFTC oversight. We must 
bring transparency and stability to energy trading.
  I urge my colleagues to support this bill.
  Mr. GOODLATTE. Mr. Speaker, at this time I am pleased to yield 4 
minutes to the gentleman from Florida (Mr. Feeney).
  Mr. FEENEY. I thank the ranking member, and I am pleased to rise to

[[Page 19590]]

talk about this bill. I just think that it's important that we be 
square with the American people about what this bill does and what it 
doesn't do.
  This bill essentially creates a straw man or a boogeyman and attacks 
that straw man or boogeyman as though they were responsible for the 
price of gasoline and energy in America today. Regardless of whether 
you are voting for or against this bill, it doesn't do anything to help 
Americans concerned about saving the American family and American 
business from the high price of oil and gas.
  Let me explain to Americans what speculators do. I am not a 
speculator. Speculators bet on the future. It's legal to make a gamble 
in America and bet on the future of commodities prices, of pork 
bellies, and, as the agriculture chairman and ranking member are well 
aware, of the price of corn and wheat in the future. Speculators bet on 
the future.
  What speculators have done with the price of oil and gas on the 
commodities market, they have simply bet on the future price of oil and 
gas. Now in this case, what are they betting on? They are betting that 
the demand for energy in the world, places like India and China and the 
third world, will increase. That's a pretty smart bet.
  But they are betting on another thing. They are betting that the 
Democratic-led Congress will continue to be stupid and refuse to supply 
more energy for America. It's a simple preponderance rule of supply and 
demand. If you have less corn 2 months from now, the price of corn will 
go up. That's what speculators bet on.
  If you are going to have more demand for energy and oil and gas, and 
you know you will not produce more supply, then the price of oil and 
gas will go up. To punish the speculators for betting that Congress 
will continue to be stupid and not produce American energy is really 
attacking a boogeyman. It is attacking a straw man and will not help 
with the price of oil.
  Now, as the ranking member said, the great news is, America has an 
abundant supply of energy. We just won't access it. We are the Saudi 
Arabia of the world's coal supply. We can produce and burn coal in a 
liquefied or gasified manner cleaner than ever, but we refuse to do it. 
China is doing it, India is doing it, our competitors are doing it. We 
won't, even though we are the Saudi Arabia of coal.
  We won't drill in ANWR. We will not access oil and tar shale. We 
passed a fraud on the American people in a bill the other day that said 
88 percent of the area where we could drill off the Outer Continental 
Shelf for oil can never be drilled in, and the other 12 percent can be 
drilled in, but only if all of the radical environmentalists and trial 
lawyers somehow, someday, give us permission.
  That is a no drilling bill. It is a no energy bill. Now we won't 
build nuclear plants. America has the finest nuclear technology in the 
world. We stopped building nuclear plants 30 years ago, and American 
nuclear expertise, scientists and technologies went to France. You are 
a really foolish country if the French are outsmarting you on policy 
with your own technology, but that is what's happening every day.
  So what do we do here today? Instead of passing a real American-based 
energy bill where American energy can be produced by American workers 
to save American families and American jobs, we have tax speculators 
who have bet on the future, and they have bet that the Democrat-led 
Congress will continue to be dumb.
  I think they made a good bet.
  Mr. PETERSON of Minnesota. Mr. Speaker, I am pleased now to yield 2 
minutes to the gentleman from Vermont (Mr. Welch) who has been a leader 
on this issue.
  Mr. WELCH of Vermont. Mr. Speaker, a couple of things about this. 
Number one, the fact that this is a bipartisan bill is really a 
breakthrough. The fact is that having the support of the Agriculture 
Committee, ranking member and the chairman, indicates that there is a 
coming together on something that is incredibly important.
  We have had a lot of debate about how this is going to affect the 
price of gas, but the way, as I understand it, the Agriculture 
Committee approached this, was how are we going to protect consumers? 
How are we going to protect farmers? How are we going to protect fuel 
dealers and airlines that have the burden of buying in the futures 
market because they need price stability, and they need a futures 
trading market in order to have price discovery, so that coming 
together was about recognizing that the institutional mechanism of a 
commodity futures trading commission has to be in service of those 
farmers in the Midwest.
  It has to be in service of airlines that are trying to get us from 
here to there, of our fuel dealers that are delivering home heating 
fuel to our people at home. We can have a debate about how much prices 
are going to come down. In fact, since this committee took this under 
active consideration, the prices have come from 150 to 100. We can 
argue about what's the cause and effect, but it certainly was 
contemporaneous and had a big impact.

                              {time}  1245

  But what is happening in our economy is that basic institutions that 
have served us well, mortgages for homeowners, or the futures trading 
for farmers and others, have been hijacked for other reasons, not just 
to help a person buy a home or help a farmer have a price, but to 
become a commodity itself used by Wall Street to speculate for 
financial manipulation and market reasons.
  That is not what these institutions are about, and the Congress has a 
fundamental decision before it. Are we going to stand up for American 
farmers and American consumers and provide protection for the 
institutions that they absolutely need, we need, or are we going to 
allow them to continue to be hijacked by Wall Street for other reasons?
  Mr. GOODLATTE. Mr. Speaker, it is my pleasure to yield 5 minutes to 
the gentleman from Kansas (Mr. Moran), the ranking Republican member on 
the subcommittee with jurisdiction over commodity futures trading.
  Mr. MORAN of Kansas. Mr. Speaker, I rise today, in contrast to my 
colleagues on the committee and subcommittee, in opposition to H.R. 
6604. It is an awkward position to be in because I spend more time and 
have a greater closer working relationship with the three members of 
the House of Representatives who are here today speaking from the 
Agriculture Committee in favor of this legislation than probably any 
group of Members of Congress since I came to Congress.
  But I rise today in opposition to this legislation for the same 
reason that I did nearly a month and a half ago. This bill will do 
little, if anything, to bring down the price of energy. In fact, 
certain provisions of this bill could likely lead to less market 
transparency and increased market volatility. Unlike one and a half 
months ago, however, Congress has some data provided by the CFTC. The 
data shows that the commodity markets were not broken, and while crude 
oil went from $96 per barrel to $146 per barrel over the first 6 months 
of this year, the aggregate long position of index traders and swap 
dealers fell by 11 percent or 45,000 contracts.
  As I stated back in July, I favor changes in the Commodities Exchange 
Act that will improve market transparency, oversight and enforcement 
activities. In fact, in working with the CFTC and others, I have 
introduced legislation, H.R. 6921, that I believe will enhance 
transparency in the futures markets without disrupting the markets. 
Based on consensus recommendations of the CFTC, the bill that I have 
introduced codifies the recommendations of the commission that they 
suggested would benefit from codification that were presented to our 
committee. That hearing has been referenced. It just occurred on 
September 11.
  What my bill does not do and what this bill does, this bill on the 
House floor, is redefine a bona fide hedging transaction to prohibit 
the ability of legitimate market participants from utilizing the 
market, push domestic traders overseas where CFTC will have

[[Page 19591]]

little oversight and contains cumbersome and contradictory requirements 
that will overburden the CFTC staff and lead to little useful 
information.
  In July I said this bill was put together quickly, in fact I thought 
too quickly and went too far. The information provided by the CFTC at 
our hearing on September 11 in my opinion confirmed that fact. Given 
that this bill was defeated on suspension and it includes provisions 
that go beyond the scope of the commission's recommendations, one would 
think that we would now take that bill back to committee and craft a 
more precise product rather than bringing the same product to the House 
floor. We asked for more information, we got more information, and yet 
the crux of this legislation didn't change.
  A well-crafted bill needs to provide additional transparency, 
oversight authority, and not exclude legitimate market participants or 
reduce market liquidity. One of the problems of this legislation, as I 
said, is it will reduce market transparency. This is because certain 
provisions, like the provision dealing with the foreign boards of trade 
that seek direct access to U.S. markets, will push traders to foreign 
markets. Rather than giving the CFTC a better picture of markets to 
prevent fraud and manipulation, it will actually restrict the ability 
of the CFTC to see that market.
  In addition, the bill errantly attempts to define a ``bona fide 
hedging transaction.'' In its current form, section 8 will exclude 
legitimate commercial market participants from properly hedging risk. 
This will cause immediate disruption of the markets as the legitimate 
market participants are forced out of the market. It will reduce market 
liquidity and increase price volatility.
  I am also concerned with provisions in this bill that require routine 
reporting and potential use of position limits in over-the-counter 
transactions that are ``fungible.'' ``Fungible'' is not defined and 
suggests that a significant amount of CFTC transactions would be 
implicated by this section.
  I am especially concerned about the authority of section 14 which 
gives the CFTC the opportunity to impose position limits on over-the-
counter trades. This is a problem because the OTC trades are 
nonstandardized contracts. Unlike standardized contracts traded on 
designated contract markets, OTC trades are often tailored to manage a 
specific company's risk in a market. And unlike a contract traded on a 
designated contract market, an OTC trade is made with a single 
counterparty. On a designated contract market, unlike many OTC trades, 
a clearinghouse is the counterparty to every contract and can 
facilitate liquidation of a position. In an OTC trade, if one party is 
in violation of a position limit and the other is not, liquidation of a 
position will adversely affect the party that is in compliance, again 
causing greater market volatility and increased cash prices of a 
commodity because of a disruption in commercial market participant's 
risk management strategy.
  I think this bill has some technical problems that will harm price 
discovery and risk management strategies. It should be returned to 
committee where we address, again, the root cause of high energy 
prices.
  The goal must be to do no harm, but this goal is not met in this 
legislation.


                             General Leave

  Mr. PETERSON of Minnesota. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks and include extraneous material on H.R. 6604.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Minnesota?
  There was no objection.
  Mr. PETERSON of Minnesota. Mr. Speaker, we saw the information, and 
some of us became convinced all the more that the bill we have put on 
the floor is the appropriate bill.
  I now yield 3 minutes to the gentleman from Maryland (Mr. Van 
Hollen), one of our leaders and a leader on this issue.
  Mr. VAN HOLLEN. Mr. Speaker, I rise in strong support of this 
legislation that will bring greater transparency and greater 
accountability to the commodity futures markets, and I want to commend 
committee Chairman Peterson, Ranking Member Goodlatte, and subcommittee 
Chairman Bob Etheridge for coming together with the committee and 
others to pass and develop this bipartisan legislation which I hope we 
will all pass. I also want to thank and commend Rosa DeLauro, John 
Larson, and Bart Stupak for their leadership on this issue.
  If there is one thing we should have all learned over the last couple 
weeks given the turmoil in our financial markets, it is that we need 
greater transparency and greater accountability. These are not just 
abstract good government ideals, these are tools that people need for 
responsible regulation of our financial markets, including our futures 
markets. They are absolutely necessary if we want to make sure that the 
CFTC and our regulators have the information that they need, especially 
when you are talking about the great impact that these things can have 
on our economy, as we are seeing every day on Wall Street.
  The old adage that ``what you don't know won't hurt you'' is no 
longer a tenable position for this Congress. We need the information. 
With this legislation, for the first time, we will shine a light on the 
so-called dark markets and empower the CFTC to take corrective action 
where they find problems.
  It provides for stronger position limits for energy commodities 
traded on regulated exchanges while ensuring that our futures markets 
continue to have the liquidity they need to function properly. No one 
has said there is not an important role for our futures markets, it is 
making sure that they are regulated properly to protect consumers and 
investors.
  This bill will also rein in excessive speculation by ensuring that 
hedging exemptions are granted only to commercial market participants 
seeking to hedge their actual physical risk, rather than to speculators 
facing only financial risk.
  Mr. Moran mentioned the recent report by the CFTC, and I would point 
out there was a recommendation they made which really follows a 
provision that we make in this bill, and that is to make sure that we, 
with respect to the commodity swap dealers and index traders, that we 
remove the swap dealers from the commercial category of market 
participants. We do that in this bill.
  Additionally, in recognition of the numerous instances where the same 
CFTC staff report found traders effectively circumventing position 
limits they would ordinarily face on regulated exchanges by going to 
the over-the-counter market, in some cases exceeding those established 
positions by substantial amounts, the CFTC report proposes requiring 
swap dealers to certify that they are noncommercial clients that do not 
exceed established position limits with their over-the-counter trades. 
We do that here.
  Mr. Speaker, we have a fundamental choice here. It is a choice 
between transparency and keeping things hidden behind the curtain. It 
is a choice between whether we want our futures markets to reflect the 
fundamentals of supply and demand, or whether we want our futures 
markets to be continuously whipsawed by massive in-flows of speculative 
money.
  We have a job to do. We have seen in recent days and weeks on Wall 
Street the effects of taking our eye off the ball and not providing 
regulators with the tools they need and them not following through with 
what they have. Let's make sure that we don't make that mistake in the 
commodities futures trading market. We have already seen the impact of 
not giving those complete tools. Let's make sure that those folks have 
what they need and are empowered to do the job on behalf of the 
American public. I thank the committee for their work on this.
  Mr. GOODLATTE. Mr. Speaker, I am pleased to recognize the gentleman 
from Connecticut (Mr. Shays) for such time as he may consume.
  Mr. SHAYS. Mr. Speaker, I thank my colleague for giving me this time 
to speak on what I think is important legislation.

[[Page 19592]]

  I believe the Commodity Futures Trading Commission, the CFTC, must 
investigate speculation in the energy futures market and respond to any 
manipulation in price distortions.
  While opinion is not unanimous, I believe the increased positions of 
institutional investors, such as pension funds and endowments and 
sovereign funds in this market are contributing to the escalating price 
of oil at an alarming rate. The CFTC should level the playing field and 
apply position limits to the institutional investors, such as the New 
York Mercantile Exchange has required of its members for years.
  Investigating market manipulation will give us temporary relief, but 
the high gas prices of today compel us to confront the inconvenient 
truth of our energy needs in other ways. We clearly need to increase 
domestic energy production, including solar, wind, geothermal, biofuel, 
nuclear power; and yes, oil and natural gas. It is truly insane to 
transfer $700 billion of our wealth, our income, to other nations, most 
of whom are, frankly, unfriendly to us.
  Alongside increased conservation and energy efficiency, I believe we 
must drill for oil and natural gas miles off our coast in an 
environmentally responsible way, and build new nuclear power plants. 
Bringing more supply online will send a strong signal to the market and 
help bring down high energy costs even in the short term. The rest of 
the world needs to know that the United States is serious about energy.
  Mr. ETHERIDGE. We have just a couple more speakers we are waiting on, 
but in the meantime I would take this opportunity, Mr. Speaker, to just 
share with my colleagues that this bill has substantial support from 
the Air Transportation Association, the Air Line Pilots Association, 
Tyson Foods, Sierra Club, Environmental America, League of Conservation 
Voters, the Wilderness Society, National Chicken Council, National Corn 
Growers Association, National Cotton Council, National Farmer Unions, 
National Grains, National Milk Producers Federation, National Sorghum 
Producers, Southern Cotton Shippers Association, Southern Peanut 
Farmers Association, Southwest Council of Agriculture, Texas Cotton 
Association, United Egg Producers, United States Cattlemen Association, 
U.S. Rice Producers Association, U.S. Rice Federation, Western Cotton 
Shippers, Western Peanut Growers Association, Women Involved in Farm 
Economics, the American Agriculture Movement, American Association of 
Crop Insurance, American Corn Growers, American Cotton Shippers, the 
Atlantic Cotton Association, the Minnesota Corn Growers Association, 
National Association of State Departments of Agriculture, and I think 
at the end of the day, Mr. Speaker, the American people.

                              {time}  1300

  The American people only ask of us in this body to do what's right 
and be fair. I think they want markets to work. They want them to work 
fairly because they don't want them working against us. Today we have 
an opportunity to make these markets, once again, work for the American 
people.
  We heard testimony in our committee of grain elevators who were 
caught in the wedge. When the prices ran so high, they were unable to 
get financing to be able to assist farmers. When you're looking at 
finding a real price through the futures, that's what they're supposed 
to do. But you can't do it when the markets aren't working the way they 
should work.
  Mr. Speaker, if the gentleman from Virginia has any other speakers, I 
would be willing for him to call his speakers while I wait for a couple 
of folks here.
  Mr. GOODLATTE. Will the gentleman yield?
  Mr. ETHERIDGE. I would be happy to yield.
  Mr. GOODLATTE. I have only myself to close. If the gentleman is 
thinking that we're close to closing, then I am prepared to do that.
  Mr. ETHERIDGE. I am prepared to close, unless we get one more 
speaker. If you will go ahead and proceed, and then as soon as our 
speaker comes, I will let them do it and I'll close.
  I reserve the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, I yield myself such time as I may 
consume.
  As I say, I appreciate working with the gentleman from North Carolina 
and the gentleman from Minnesota on this legislation.
  I think this legislation gives to the Commodity Futures Trading 
Commission the necessary tools for appropriate oversight and 
enforcement. I think this is a light touch. I do not think that it 
interferes in the marketplace.
  And I think that the evidence that was brought forth by the recent 
report submitted by the CFTC is very strong evidence that the 
marketplace is working very well, but it needs constant vigilance. We 
can see that with the difficulties that are being experienced around 
the country and around the world in other types of markets.
  Certainly in the mortgage area and other financial areas, the risk of 
not giving the regulatory agencies the appropriate authority to do 
oversight and to act is certainly a grave concern. But I think we are 
doing that in this area. I think the CFTC is doing that in this area, 
and I think this legislation will help to enhance their ability to 
remain vigilant in making sure that this market operates properly; that 
there is not excessive speculation; that there is not manipulation of 
this marketplace.
  Having said all of that, I will say, once again, that this is not the 
issue that we should be debating here today. I support this 
legislation. I will vote for it. But we deserve an opportunity to vote 
on what the American people want. And poll after poll have shown that 
they want to see a real energy act. They know that the problem with the 
high price of energy is the lack of supply. They know the problem with 
the disruption of our energy supply that just occurred due to Hurricane 
Ike is because we have not enough refinery capacity in this country, 
and that it is not distributed around the United States.
  The American Energy Act provides for using abandoned U.S. military 
bases to build new refineries. We haven't built a new one in more than 
30 years. And the bill that was brought to the floor of the House by 
the Democratic leadership earlier this week did absolutely nothing in 
that area.
  We're now importing refined petroleum products, paying a higher 
price. We're seeing more and more billions of dollars going out of this 
country every week, costing America jobs, harming our economy because 
we are so dependent upon foreign oil, at the same time that we have 
huge resources, not just oil, but natural gas, coal, the potential of 
new nuclear power, as well as a whole array of alternative sources of 
energy like wind and solar and geothermal and biomass and hydrogen. All 
of these things are available to us if we will take the leadership here 
in this Congress and get the American Government out of the way of 
developing these new sources of energy. But, instead of doing that, we 
bring a no drill, no energy bill to the floor that was clearly a sham, 
a hoax on the American people.
  We have abundant resources in oil. The estimates are that we could be 
producing 3 to 4 million barrels of oil from the Outer Continental 
Shelf. The bill that was brought forth on the floor of the House shuts 
off 80 to 90 percent of that oil from access to the marketplace because 
they don't allow drilling.
  I introduced legislation, as have other people, to allow drilling off 
the coast of our respective States. I've introduced one for Virginia 
that has strong support in our delegation. And yet the legislation that 
was brought forward earlier this week does not provide any royalties 
for the States. So our Governor, Democratic Governor of the State has 
already indicated that if the State can't benefit from deriving 
royalties that can be used for developing better transportation 
systems, alternative forms of energy, public education and so on, if it 
can't be used for that, he's not interested in participating. So that 
bill was meaningless. It was a sham.
  We need to bring forth real legislation like the American Energy Act 
that shares those royalties with the States so that they're able to do 
that.

[[Page 19593]]

  It's estimated that we could have a million barrels of oil a day 
coming down the pipeline that already exists in Canada, if we would 
drill for oil in the Arctic National Wildlife Refuge, an area the size 
of the State of South Carolina; and the area that would be utilized for 
drilling for oil is about 2,000 acres, like a postage stamp on a 
football field. That's how much of this land of this huge area would be 
utilized. The people of Alaska support it. The Governor of Alaska, 
Sarah Palin, supports it.
  Are we doing that?
  No. Wouldn't even bring it up. Wouldn't bring up a bill that we could 
even offer an amendment to to allow for that to take place.
  Meanwhile, the oil that comes from the Prudhoe Bay area is declining. 
It was 2.1 million barrels a day at its peak. It's now down to 700,000 
barrels a day. We're told that when it gets down to 300,000 barrels a 
day, we'll have to close down the pipeline because it's not 
economically efficient to transport the oil.
  At the same time we could be adding a million barrels of oil a day 
for an estimated 30 years, we're at risk of losing not just that 
million, but an additional 300,000 barrels of oil a day, about 6 
percent of the consumption in this country every day for 30 years.
  And then look at the oil shale available in the Rocky Mountain 
States. Here we have an estimated somewhere between 800 billion and 2 
trillion barrels of oil that can be extracted from that oil shale, much 
like the Canadians are extracting oil from tar sands in Canada. So 
while they're doing that in Canada, this Congress last year passed 
legislation that prohibits the United States Government from buying 
that oil from Canada.
  And then in terms of our own reserves which are huge, to just give 
you an idea, since the first oil well was drilled in Pennsylvania in 
1859, until today, the entire world has used about 1 trillion barrels 
of oil. And yet we're leaving untapped, because legislation was not 
brought forward to address it, untapped, 800 billion to 2 trillion 
barrels of oil available to us in that oil shale deposits in the Rocky 
Mountain States. It's a shame, Mr. Speaker, that we're not doing that 
today.
  Coal reserves. We have more coal reserves than any other nation in 
the world. New technology exists to convert it to liquid that can be 
used for transportation purposes. We have new technology that is 
cleaner burning coal, and yet we're not doing anything in the 
legislation that was offered here earlier this week to tap into that.
  Nuclear power. It's been correctly noted here today that while the 
United States still derives 20 percent of its electricity from nuclear 
power, France today gets close to 80 percent of its electricity from 
nuclear power. They continue to develop that technology. We haven't, 
for 30 years. We haven't for 30 years built a single new nuclear power 
plant. There are now some on the drawing boards, thanks to legislation 
that the Congress adopted 2 years ago to incentivize that.
  But because of regulations that stand in the way, we will not have 
the opportunity to see a single kilowatt hour of electricity generated 
from those new nuclear power plants for at least 10 years. Why?
  Because this Democratic leadership would not bring up legislation 
like the American Energy Act that enables that.
  The same thing with the development of alternative fuels like wind 
and solar and geothermal and hydrogen and biomass. What do they do to 
incentivize? They increase taxes. That's the last thing we need right 
now when the American economy is in the condition that it's in, to have 
tax increases to pay for something that we could pay for with the 
royalties that would come from drilling offshore, from drilling in 
Alaska, from tapping into that oil shale, from drilling for natural gas 
where the largest deposit known in the world is in the Gulf of Mexico, 
and yet we can't have access to it.
  There's natural gas all down the eastern coast of the United States. 
We can't have access to that. Why? Because they won't share the 
royalties with the States and it won't happen. And they've kept some of 
these areas off limits in their legislation as well.
  This is a travesty, Mr. Speaker. We should be having the American 
Energy Act on the floor today. That's what the American people want. 
That's what will create millions of American jobs in creating this new 
energy, and in revitalizing our industry and revitalizing manufacturing 
and strengthening agricultural production in this country and 
strengthening all of American commerce, making us more competitive with 
the rest of the world if we would simply seek to be energy independent, 
which we could accomplish in 10 or 15 years if the leadership of this 
Congress would simply bring forward legislation that would enable us to 
empower America to have real energy independence and real American jobs 
and save this economy.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ETHERIDGE. Mr. Speaker, I ask for a time check.
  The SPEAKER pro tempore. The gentleman has 14\1/2\ minutes remaining.
  Mr. ETHERIDGE. Mr. Speaker, I yield 4 minutes to the gentlelady from 
Connecticut, someone who has worked hard in this area, Representative 
DeLauro.
  Ms. DeLAURO. Mr. Speaker, our economy is struggling. We know the 
price at the gas pump is killing middle class families trying to make 
ends meet, farmers harvesting their crops, truckers traveling our 
highways.
  I rise in support of this bill. It's an important first step to 
address the concerns of millions of Americans who fear something more 
than just supply and demand is at play and our energy markets are not 
operating as they should.
  I want to commend Chairman Peterson for being so open and available 
as he worked with myself and my colleagues, Congressmen Stupak, Larson 
and Van Hollen throughout the summer to make this bill a priority and 
to bring transparency back to our futures market.
  This is a complex issue. Our responsibility as a Congress and the 
Nation is serious, however. Excessive speculation occurs when the 
market price for a given commodity no longer accurately reflects the 
forces of supply and demand. Today we can point to loopholes and 
exemptions that have allowed interested parties with special access to 
information to improperly speculate on the price of energy without 
oversight. That excessive speculation has contributed to rising gas 
prices.
  This bill begins to confront that speculation, providing the 
Commodity Futures Trading Commission new authority to gather 
information from currently unregulated over-the-counter energy 
transactions. And if it finds improper speculation is driving up the 
prices, the agency has the authority then to act to reduce the 
speculation. This is new, it's long overdue authority that will shed 
light on once hidden markets.
  The bill also makes sure we know who is participating in the market 
to what extent by requiring detailed trading information from index 
traders and swap dealers. It works to make sure hedge exemptions are 
not exploited, making clear only legitimate hedgers may use them.
  This vote follows the report last week from the Commodity Futures 
Trading Commission which suggested the need for a legislative fix to 
restore balance to the energy marketplace, recommending a significant 
increase in the transparency of energy markets, more careful analysis 
of data, and even a reclassification of swap dealers.
  A day earlier, hedge fund managers Michael Masters and Adam White 
released their own report pointing to institutional investors pouring 
money into energy futures and contributing to rising prices. Later, by 
pulling those funds out of the market, the rush for the exits helped 
bring the prices down. And this decline may continue, according to 
yesterday's Wall Street Journal which reported, and I quote, 
``Evaporating access to credit, fears of an economic washout are taking 
a toll on oil prices, forcing speculators using borrowed money out of 
the market.''
  Whether prices are up or down, the bottom line that growing 
volatility, a

[[Page 19594]]

growing disconnect between where the market is and where supply and 
demand would normally put it.
  We have a responsibility to protect consumers from excessive 
speculation. We can no longer allow random speculators free rein to 
play these games while our entire economy hangs in the balance. It is 
time to empower the Commodity Futures Trading Commission to do its 
regulatory job and provide the kind of relief that we need to get 
Americans who are in great need in this faltering economy, we need to 
provide relief to middle class Americans and American taxpayers, and 
not provide relief or profit for those who are already taking the 
profits and making a fortune with them.
  Let's pass this bill.

                              {time}  1315

  Mr. GOODLATTE. Mr. Speaker, I am pleased to yield 3 minutes to the 
gentleman from Ohio (Mr. LaTourette).
  Mr. LaTOURETTE. Thank you for yielding the time.
  Congratulations to you, Mr. Goodlatte and Chairman Peterson, for this 
bill. I voted for it last time, and I will vote for it again today.
  But the difficulty is that we find ourselves with about 5 days left 
in this 110th Congress. There was a famous emperor of Rome, Nero, who 
fiddled while Rome burned. I just want to talk a little bit about what 
we've been doing for 2 years since gas prices went up and the 
Democratic majority took over in January.
  When they took over in January, gas was at $2.20 a gallon which was 
high, but people still said, ``Okay. I can still get by on that.'' But 
Congress, rather than dealing with what was going to begin to happen, 
on that day, January 29, we congratulated the University of California, 
Santa Barbara soccer team for doing swell stuff. I like soccer. I bet 
everybody that's on that team, their moms and dads, are proud of them. 
But when gas is going up, what are we doing that for?
  Next one, February 6, it's gone up 60 cents a gallon. February 6, 
2008, we declare National Passport Month here on the House floor. 
That's the most important issue in America, apparently, to the 
majority.
  It passed $3 for the first time in my lifetime, and we're commending 
another soccer team, the Houston Dynamos. I bet they're a great soccer 
team, too, but gas is $3. The most important issue that we're debating 
on the floor of the House of Representatives is congratulating the 
Houston Dynamos.
  Then $3.77. That should have gotten our attention. So what did they 
debate? Did we debate this bill or an energy policy? No. We declared 
National Train Day on that particular day with gas at $3.77.
  Goes up on May 20, $3.84. On that particular day, I gotta tell you, 
we passed--and I don't even know what these are--Great Cats and Rare 
Canids Day. Maybe, Mr. Speaker, you know what a canid is. Somebody told 
me maybe it's a dog. But we're not debating energy. Our constituents 
are paying $3.84 a gallon for the first time in their lives, and we're 
recognizing great cats and canids.
  Well, surely at $4 a gallon we have America's attention, the mighty 
House of Representatives, the new majority is going to debate energy. 
Nope. We declare the International Year of Sanitation.
  I gotta tell you, Mr. Speaker, then it hits $4.14 on June 17, 2008. I 
bet we're going to debate energy now. I bet we're going to do this 
bill. No. We did the Monkey Safety Act. Folks, I love monkeys. They're 
cute, they're cuddly, they're everything else; but for crying out loud, 
when it costs $80 to fill up your gas tank, the most important issue in 
the United States of America is not the Monkey Safety Act.
  It's time for this majority to quit monkeying around with our gas 
prices. It's no coincidence, Mr. Speaker, that at the same time we're 
doing the Monkey Safety Act, unemployment in this country goes from a 
little over 4\1/2\ percent to where it is today, over 6 percent.
  Quit fooling around. Quit horsing around. Some people say, Well, this 
chart doesn't go far enough. We also did some other important things 
after we got back. We declared National Watermelon Month, and we also 
indicated that we were going to recognize Bo Diddley. He's a great guy. 
I'm all for honoring him. But it's time that we tell our friends on the 
other side, You haven't done diddley about oil and gas.
  Mr. PETERSON of Minnesota. Mr. Speaker, I yield myself such time as I 
may consume.
  As I said when we first considered this bill in July, this is a great 
bipartisan effort that Mr. Goodlatte and I have worked on. This bill 
addresses the realization that the trading volume and the futures 
market for physical commodities has increased dramatically in recent 
years. This increase includes vast amounts of capital from parties that 
are not traditional futures market participants, and this has been my 
concern, these participants, such as the index funds, pension funds, 
and some hedge funds.
  The presence of this additional capital has raised concerns in our 
committee that the resulting futures market prices may not accurately 
represent the forces of supply and demand, nor may they fundamentally 
support at the local selling points where those in the producing and 
selling of the commodities are doing business.
  Mr. Speaker, this debate is more than just the presence of 
speculators in the futures market. As I said on the floor in July, this 
lack of convergence--and this is one of the big problems that I am 
concerned about--the lack of convergence that we're getting in some of 
these agricultural markets where we have a $2.40 difference between the 
futures price and the actual cash price of wheat in some of our 
markets, these are the things that really concerns us on the committee.
  So we have put forward transparency so that we know what's going on 
in these markets, and we're giving the authority for some position 
limits on these nontraditional investments that were created that 
really have nothing to do with the underlying commodity market. And in 
my opinion, the more I learn about this, I think this has some effect 
on why we're not getting convergence in those markets.
  We believe this is a modest step that addresses the concerns that 
have been identified to the committee, and we're going to continue to 
work on this. We're going to continue to get information from the CFTC 
and other sources as to what is going on in these markets, and we will 
see how this progresses through this Congress.
  But I can tell people if this is not resolved in this Congress, we 
will take this up in the next Congress to address these issues.
  With that, Mr. Speaker, I will reserve the balance of my time.
  Mr. GOODLATTE. Mr. Speaker, I have no further speakers. I will 
reserve the balance of my time.
  Mr. PETERSON of Minnesota. Mr. Speaker, I am now pleased to recognize 
the vice chairman of our caucus and the leader on this issue, the 
gentleman from Connecticut (Mr. Larson) for 2 minutes.
  Mr. LARSON of Connecticut. Thank you, Mr. Chairman.
  I want to commend Chairman Peterson for the extraordinary work that 
he's done in this area and the sensitive manner in which he's 
approached a very oftentimes complex issue.
  I'm especially pleased that the Ag Committee adopted a provision that 
addressed the Inspector General and elevating that Inspector General to 
independent status. I understand why it had to be removed. I'm pleased, 
though, that Mr. Waxman has indicated that we intend to bring the bill 
to the floor under suspension because of the bipartisan agreement that, 
especially in this day and age, the need to make sure that we have 
referees on the field in lieu of everything that's happening to 
guarantee that we don't have the foxes guarding the henhouse but that 
we provide an opportunity for independent overview.
  Lastly, I would like to close by saying this. Again, my thanks to the 
committee and the chairman. But it's voices outside this Chamber; and, 
specifically, I want to credit John Mitchell, former Republican mayor 
of South Windsor, Connecticut, for coming to

[[Page 19595]]

me with the independent petroleum dealers talking about actually what 
happens to people because of speculation, talking about women turning 
over their entire Social Security check to pay for their home heating 
oil and the system being broken and that the issues of supply and 
demand not working.
  These came from main street businesses who aren't in the Beltway, who 
care deeply about the citizens they serve and represent. I want to 
commend them and this committee for its sensitivity in passing a 
comprehensive step--not a silver bullet, not a panacea--but an 
appropriate step towards restoring what we need in terms of the 
oversight and review that must go on to restore integrity in the 
marketplace.
  I thank the chairman again for the opportunity.
  Mr. GOODLATTE. Mr. Speaker, I am prepared to close if the gentleman 
from Minnesota is.
  I would again thank the gentleman for his hard work on this 
legislation. This is not legislation that this committee has in any way 
taken lightly over the past several years. We've conducted oversight 
into the activities of the Commodity Futures Trading Commission and the 
futures markets. We've done it in a bipartisan way. We have watched 
closely to make sure that the commission has the resources it needs to 
do its job.
  We found some areas where we think it could use some additional help 
in terms of personnel, in terms of the authority to gather information, 
and in a few instances in giving them additional authority to act if 
they find that there are indicators in the marketplace that it's not 
functioning properly, that there is excessive speculation and that 
there is manipulation; and this legislation does that, and I support 
that. Although I do have some reservations about the legislation, I 
think it is legislation that deserves to be passed into law.
  However, I will say it once again that this is not the legislation 
that the American people want and expect to see us debating on the 
floor of the House today. They want real energy legislation, not the 
sham bill that was offered 2 days ago, but legislation that would allow 
for real drilling for American oil and natural gas and would allow for 
utilizing new clean-burning coal technologies, that would expand our 
nuclear power generation of electricity, that would expand our 
alternative forms of energy.
  And as we move in that direction, utilizing the resources that are 
created by producing American energy to accomplish more in the areas of 
wind and solar and geothermal and hydrogen and biomass and tidal energy 
production and a whole array of others, that we are simply neglecting 
because this Congress, the Democratic leadership, refuses to bring to 
the floor for a vote the American Energy Act, which would command very, 
very overwhelming bipartisan support if it were brought to the floor 
for a vote.
  But it's more than just what consumers are paying at the gas pump. 
It's more than what they're worried about having to pay to fill their 
tanks with oil or kerosene to heat their homes this winter or their 
natural gas bills or their electric bills that are going up and up. 
It's more than that. It's about the American economy, and it's about 
American jobs.
  This legislation would create millions of American jobs, not only in 
energy production but also in manufacturing and agriculture, in a whole 
host of areas that would make America more confident, would make 
America more competitive with the rest of the world. We need this 
legislation. We need it badly. It will be a shame, Mr. Speaker, if we 
leave town without passing the American Energy Act.
  I yield back the balance of my time.
  Mr. PETERSON of Minnesota. Mr. Speaker, again I want to thank my good 
friend, Mr. Goodlatte, for the great work he did with us on this bill. 
Like any bill, it's not perfect but it's, I think, a step in the right 
direction. We take very seriously our responsibility and the 
jurisdiction that we have in making sure that the CFTC is doing the 
proper oversight, the proper job, and that we're getting convergence of 
these markets so that they work for people that need them on a day-to-
day basis.
  This is almost the exact same bill that received 275 votes on a 
bipartisan basis on July 30. At one time we were up to 291 votes. At 
one time we had two-thirds, but it eroded away. I'm confident today 
that we will have the support to move this bill through the House, and 
hopefully our friends in the other body will move because I believe we 
have uncovered some things that need to be addressed in legislation, 
and we are doing that in this legislation.
  With that, Mr. Speaker, I ask everybody to support the bill.
  Mr. DINGELL. Mr. Speaker, H.R. 6604, the ``Commodity Markets 
Transparency and Accountability Act'' will help restore integrity to 
commodity futures markets. Lax regulation has allowed prices to become 
divorced from fundamental supply and demand. Lax regulation has allowed 
speculative bubbles to form in food and energy prices. And lax 
regulation has caused billions of dollars in damage to businesses and 
consumers.
  Oil prices doubled from $72 per barrel on July 11, 2007, to $145 on 
July 11, 2008, even though supply and demand was fundamentally 
unchanged. While excess capacity was reduced and the dollar had 
dropped, there were no oil shortages, and inventories were ample. 
Fundamentals alone do not explain a 100 percent price increase.
  What has changed over the past few years is that oil has been 
transformed from a basic commodity into a financial asset, and traded 
for its speculative value by institutional investors who want to 
diversify portfolios, hedge the dollar, or make a fast buck. The 
Washington Post reports that speculators control as much as 81 percent 
of the futures market, up from an estimated 37 percent in 2000.
  Investment banks and futures exchanges claim that institutional 
investors are providing badly needed liquidity to the futures market, 
that futures prices reflect supply and demand, and Congress should not 
turn them into a scapegoat.
  Wall Street's commodity brokers told their investors privately, 
however, that supply and demand did not explain the doubling of oil 
prices.
  Just yesterday, Michael Cembalest, J.P. Morgan's global chief 
investment officer, wrote:

       the Peak Oil crowd promoting crude oil . . . at $200 should 
     concede what we've been saying: there was an enormous amount 
     of speculation pent up in energy markets (e.g., an 8-fold 
     increase in bank OTC oil derivative exposure in the last 3 
     years), and it wasn't just the supply-demand equation. Oil 
     will rise again, and we need solutions to energy supplies, 
     but $140 in July 2008 was ridiculous.

  Yet on the same day, Blythe Masters, Managing Director and Head of 
Global Commodities for J.P. Morgan submitted testimony before the 
Senate Energy Committee stating:

       we fundamentally believe that high energy prices are a 
     result of supply and demand, not excessive speculation.

  Lehman Brothers told its investors in May that it is seeing ``the 
classic ingredients of an asset bubble'' in oil. It linked it to an 
inflow of $90 billion in commodity index investments.
  The cost to our economy from excessive speculation is destructive.
  For every penny increase in the price of a gallon of gasoline, 
consumer costs jump by $1 billion a year, according to 
Moody'sEconomy.com. The run-up since last September has added nearly $1 
per gallon, costing consumers $100 billion absorbing the economic 
stimulus package enacted earlier this year.
  The Industrial Energy Consumers indicate that natural gas consumers 
paid an extra $40.4 billion this year already. They support this bill.
  The airlines have lost 36,000 jobs and retired 746 planes this year, 
while eliminating 635 routes, due to jet fuel prices. They support this 
bill.
  Petroleum marketers have seen oil prices come unhinged from supply 
and demand. They support this bill.
  Some institutional investors are now starting to unwind their massive 
positions. Nearly 127 million barrels of oil futures valued at $40 
billion were liquidated by institutional investors between July 15, 
2008, and September 2, 2008, according to a recent analysis of the 
CFTC's public data. Oil futures prices plunged $53 per barrel to $92 in 
only two months, yet fundamental supply and demand was not changed 
materially in the past 60 days.
  What did change in mid July is that Congress in both Houses took up 
legislation to rein in excessive speculation--particularly in the 
unregulated dark markets--which may have spurred some speculators to 
get out early.

[[Page 19596]]

  The central issue is whether pension funds, endowments, and sovereign 
wealth funds should be allowed to hijack commodity markets and set oil 
and food prices, or whether consumers and producers should set prices 
based on supply and demand. If speculators can drive prices back up to 
$140, they can really turn the lights out on the U.S. economy.
  Some may argue that given the crisis in financial markets, this is 
not the time to start regulating Wall Street. Beginning with the repeal 
of the Glass-Steagall Act, however, deregulation has allowed 
recklessness to compromise our entire financial system.
  The recent collapse of Fannie Mae, Freddie Mac, Bear Stearns, AIG, 
and Lehman Brothers are a product of lax regulation which has led to 
systemic risk for the entire financial system.
  This legislation puts a cop on the beat and codifies some of the 
transparency measures recently recommended by the CFTC. I commend 
Chairman Peterson and Etheridge, as well as Representatives Stupak, Van 
Hollen, DeLauro, and Larson for their leadership on forging this bill 
and urge its passage.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in today in support of 
the H.R. 6604, the Commodity Markets Transparency and Accountability 
Act of 2008, introduced by Congressman Peterson of Minnesota.


                        Background on H.R. 6604

   This legislation will bring greater transparency to commodity and 
futures markets. It will improve price discovery and risk mitigation 
functions working to benefit producers, processors and consumers. This 
bill toughens position limits on oil and other futures markets as a way 
to prevent potential price distortions caused by excessive speculative 
trading. H.R. 6604 extends Commodity Futures Trading Commission, CFTC, 
oversight to previously exempt over-the-counter markets, and it calls 
for new full-time CFTC staff to improve enforcement, to prevent 
manipulation, and to prosecute fraud.
  Closes the ``London Loophole''--Foreign boards of trade that offer 
electronic access to U.S. traders for energy or agricultural 
commodities settled by physical delivery in the U.S. are not currently 
subjected by statute to the same speculative position limits traders 
are subject to on domestic exchanges.
  H.R. 6604 requires foreign boards of trade to adopt speculative 
position limits on these contracts similar to exchanges under U.S. 
regulation and to share large trader reporting data with the CFTC.
  Foreign boards of trade must have the authority to require traders to 
limit, reduce, or liquidate a position in order to prevent excessive 
speculation or price distortion.
  Increases Transparency in Dark Markets--H.R. 6604 requires the CFTC 
to get a complete picture of the swaps markets by defining and 
classifying index traders and swap dealers, and subjecting them to 
strict reporting and recordkeeping requirements. Position reporting 
will become mandatory for over-the-counter trading in agricultural and 
energy contracts, similar to on-exchange contracts.
  The commission will also disaggregate and publicly provide data to 
examine the true extent of index and other passive fund participation 
in futures markets for energy and agricultural products.
  Speculative Position Limits--Currently, speculative position limits 
are set by regulated exchanges for energy contracts and the CFTC for 
some agricultural futures contracts. H.R. 6604 requires the CFTC to set 
position limits for all energy and agricultural futures markets. This 
bill will limit traders' ability to amass huge positions that would 
otherwise allow them to distort the market.
  Restrict Hedge Exemptions to Bona Fide Hedgers--H.R. 6604 will reform 
the process for granting hedge exemptions from position limits. 
Exemptions would be available only for bona fide market participants 
who actually engage in the commercial use, production, or distribution 
of the physical commodity. While position limits are currently granted 
to bona-fide hedgers, who are using the futures markets to offset their 
price risk, the CFTC has also granted hedge exemptions to swaps dealers 
who are not taking delivery of the physical commodity. This loophole 
has allowed institutional investors to take, through a series of 
trades, larger positions, than they would be able to take if they 
traded on the exchanges directly.
  Strengthens CFTC Enforcement Resources--The CFTC was created in 1974 
as the chief regulator of futures and options markets. It does this 
with a full-time enforcement staff that monitors large trader 
positions, prevents scams, and prosecutes and prevents market 
manipulation. Trading volume has increased 8,000 percent since the CFTC 
was created, but the agency is operating at its lowest staffing levels 
since 1974. H.R. 6604 calls for a minimum of 100 full-time CFTC 
employees to enforce manipulation and fraud in the commodities markets.


                               Conclusion

   Mr. Speaker I urge my colleagues on both sides of the aisle to 
support H.R. 6604. I fully support Representative Peterson and the 
Agriculture Committee.
  Mrs. MALONEY of New York. Mr. Speaker, I rise in opposition to H.R. 
6604, the Commodity Markets Transparent Accountability Act.
  Before I outline my opposition to this legislation, I want to be 
clear that I am seriously concerned about the cost of oil and the cost 
Americans are paying at the pump. To this end, I have been proud to 
support a series of other bills that this House has considered to help 
bring down the cost Americans are paying at the pump as well as efforts 
to create new alternative and renewable sources of energy. I have been 
a long-term supporter of reforming the royalties the oil and gas 
industry pays for the natural resources they extract from public lands. 
Last year I was proud to stand with my colleagues as we, for the first 
time in a generation, increased the fuel efficiency standards on cars 
sold here in the United States. Just yesterday, I was pleased to vote 
in favor of H.R. 6899, the Comprehensive American Energy Security and 
Consumer Protection Act. The legislation is a bold step forward, 
helping end our dependence on foreign oil and increase our national 
security. It launches a clean renewable energy future that creates new 
American jobs, expands domestic energy supply--including new offshore 
drilling--and invents and builds more efficient vehicles, buildings, 
homes, and infrastructure. It will lower costs to consumers and protect 
the interests of taxpayers. It is a comprehensive strategy and the 
product of bipartisan compromise.
  I want to be clear that I am completely opposed to energy 
manipulation, which is a crime, but what we are talking about here is 
the role of legitimate investors in the commodities market. To that 
end, my main concern with this legislation is that it would crack down 
on legitimate trading practices, resulting in the loss of American 
jobs.
  Additionally, I am concerned that this legislation will significantly 
reduce liquidity in the U.S. futures and derivatives markets and drive 
trading overseas at a very precarious time for U.S. financial markets. 
This legislation also could create legal uncertainty and could also 
increase market disruption in the over-the-counter, OTC, markets. 
Moving this trading overseas and creating legal uncertainties could 
result in lost jobs here in the United States, especially for our 
constituents who work in these markets. At a time we are fighting to 
keep New York City and the United States as the financial capital of 
the world, any measure that could cost our economy quality jobs without 
providing any benefit in return is not a measure I can support.
  Joining me in my skepticism that speculators have been able to 
manipulate the oil market is what many may consider an unlikely source, 
Paul Krugman of the New York Times.
  In a May 12, 2008 column, titled ``The Oil Nonbubble'', Krugman 
writes:
  ``The only way speculation can have a persistent effect on oil 
prices, then, is if it leads to physical hoarding--an increase in 
private inventories of black gunk. This actually happened in the late 
1970s, when the effects of disrupted Iranian supply were amplified by 
widespread panic stockpiling.
  But it hasn't happened this time: all through the period of the 
alleged bubble, inventories have remained at more or less normal 
levels. This tells us that the rise in oil prices isn't the result of 
runaway speculation; it's the result of fundamental factors, mainly the 
growing difficulty of finding oil and the rapid growth of emerging 
economies like China. The rise in oil prices these past few years had 
to happen to keep demand growth from exceeding supply growth.''
  To be clear, I stand ready to support legislation that will reduce 
the cost Americans are paying at the pump, and I am fully in support of 
efforts to create new, affordable and renewable energy options that 
will move us towards energy independence. However, this legislation, 
while certainly well intentioned, could potentially create more harm 
than good and lead to the loss of American jobs.
  Mrs. TAUSCHER. Mr. Speaker, I rise to thank Chairmen Peterson and 
Etheridge for their hard work on H.R. 6604.
  Protecting consumers and ensuring that our markets work fairly are 
among our most vital duties as Members of Congress. For eight years, 
the Bush Administration has been asleep at the switch. With record 
foreclosures and major American companies seeking multi-billion dollar 
government bailouts, we are seeing the effects of this Administration's 
policies. It is long past time that Wall Street oversight reflects the 
21st century economy.

[[Page 19597]]

  As someone who has worked both on Wall Street and now in Congress, I 
know how important it is to have referees on the field to call the 
game. I also know how minor changes in the financial markets can have 
major impacts. In the current environment, it would be particularly 
unwise to add any further instability to the markets.
  A fair and regulated system is critical to the function of our 
financial markets. I commend the intentions of this legislation but 
believe that its enactment will have unintended consequences.
  I am concerned that this bill will prevent pension funds and other 
institutional investors from engaging in the futures market. Such a 
prohibition could prevent my constituents' pensions from being invested 
in a diverse and safer manner. Without changes to this legislation, 
CalPERS, which manages the pensions of 1.5 million Californians, could 
be severely restricted in its ability to maximize return on investment.
  As an alternative to this legislation, I have introduced H.R. 6976, 
the Preventing Manipulation in Commodity Markets Act of 2008. This bill 
is virtually identical to H.R. 6604. However, it permits pension funds 
to continue to invest in the futures market.
  I am firmly committed to preventing manipulation of the commodity 
markets. H.R. 6976 enables the Commodity Futures Trading Commission to 
target manipulation without preventing honest investors from 
participating in the markets.
  Mr. STUPAK. Mr. Speaker, I rise in support of H.R. 6604, the 
Commodity Markets Transparency and Accountability Act.
  As chairman of the Oversight and Investigations Subcommittee of the 
House Energy and Commerce Committee, I have held two hearings on 
excessive speculation and its effect on energy prices.
  We learned that in 2000, physical hedgers--businesses like trucking 
companies, airlines, and other industries that need to hedge to ensure 
a stable price for fuel in future months--accounted for 63 percent of 
the oil futures market.
  Today, physical hedgers only control 19 percent of the market. 
Approximately 81 percent of the market has been taken over by swap 
dealers and speculators, a considerable majority of whom have no 
physical stake in the market.
  Since the Enron loophole became law in 2000, there has been a 
dramatic shift as physical hedgers continually represent a smaller 
portion of the market. This excessive speculation is a significant 
factor in the price Americans are paying for gasoline, diesel, and home 
heating oil.
  Just yesterday, JP Morgan's global chief investment officer, Michael 
Cembalest, wrote: ``there was an enormous amount of speculation pent up 
in energy markets * * * and it wasn't just the supply-demand equation. 
Oil will rise again, and we need solutions to energy supplies, but $140 
in July 2008 was ridiculous.'' Even the speculators admit they're 
inflating energy prices.
  Last week, the Commodity Futures Trading Commission, CFTC, released a 
report that it claims shows that speculators are not affecting prices.
  However, CFTC even admits in its own report: ``This preliminary 
survey is not able to accurately answer and quantify the amount of 
speculative trading occurring in the futures markets.''
  How can the CFTC tell Congress that speculation is not a problem if 
they can't even tell us how much speculation is occurring? This is a 
study that made its conclusions before it had the facts to back them 
up.
  I encourage Members and those watching at home to go to the website: 
accidentalhuntbrothers.com. On this website is a report by Michael 
Masters, 1 of 11 witnesses who testified at our June 2008 O&I hearing.
  This report shows what my colleagues and I have been saying for a 
long time. The price of oil has become completely detached from supply 
and demand fundamentals.
  As the report shows, it's very simple: When index speculators pour 
large amounts of money into commodities markets, prices go up. When 
these same speculators pull their money out, prices go down.
  As you can see in this chart, from January through May 2008, index 
speculators poured more than $60 billion into commodities, causing 
crude oil prices to increase $33 a barrel.
  Then, starting on July 15, 2008, index speculators reduced their 
investments by $39 billion, causing prices to decrease by about $29 a 
barrel.
  Even more startling, index speculators completely ignored supply and 
demand signals.
  During the first 3 months of 2008, index speculators bet on high 
energy prices when the Energy Information Agency, EIA, forecast 
increasing supply, which should mean lower prices.
  In July, when EIA forecast that demand would exceed supply, a sign 
that oil prices should go up, index speculators began to pull $39 
billion out of the market.
  Today, we face hurricanes in the Gulf of Mexico, civil war in 
Nigeria, OPEC considering production cuts, the situation in Georgia, 
and continuing violence in the Middle East. In the past, each of these 
events would have sent crude oil prices through the roof.
  However, because speculators have been pulling their money out of the 
market, crude oil is at $91.49 a barrel. This is $53.67 lower than it 
was just 2 months ago.
  If there is anyone that can show me any reason, other than 
speculators pulling out of these markets, that the price of crude oil 
should drop $53 in 2 months, I'd like to see it.
  While the Peterson bill may not have everything that I've called for 
in my legislation, the Prevent Unfair Manipulation of Prices, PUMP, 
Act, it does take significant steps to rein in excessive speculation.
  The bill would strengthen position limits on regulated markets, and 
establish an advisory board to set position limits while still 
protecting physical hedgers. It addresses the foreign boards of trade 
loophole, and properly limits the bona fide hedging exemption to 
physical hedgers.
  The legislation would improve the information available to the 
Commodity Futures Trading Commission, significantly improving CFTC's 
ability to monitor energy markets. And, should the CFTC find excessive 
speculation on unregulated markets as a result, CFTC can take the steps 
necessary to correct it.
  I was proud to support this legislation in July, when it should have 
passed. Unfortunately, 16 of my Republican colleagues decided to change 
their vote, playing politics instead of providing relief to Americans 
facing high energy prices.
  While it has not been the only factor, speculators have seen that 
Congress is serious about acting to curb excessive speculation, and the 
markets are responding accordingly.
  I urge members to continue their support for H.R. 6604, so we can 
continue to show speculators that Congress is serious about protecting 
American consumers.
  I thank Chairman Peterson and his staff for working with me and my 
colleagues to produce this legislation. I urge my colleagues to vote 
for H.R. 6604, the Commodity Markets Transparency and Accountability 
Act, to rein in excessive speculation and provide your constituents 
with relief from high gas prices.
  Mr. PETERSON of Minnesota. I yield back the balance of my time.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1449, the previous question is ordered 
on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.

                              {time}  1330


                           Motion to Recommit

  Mr. MORAN of Kansas. Mr. Speaker, I have a motion to recommit at the 
desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. MORAN of Kansas. In its current form, yes, sir.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Moran of Kansas moves to recommit the bill H.R. 6604 to 
     the Committee on Agriculture with instructions to report the 
     bill back to the House promptly with the following amendment:
       At the end of the bill, add the following:

     SEC. 16. EFFECTIVE DATE.

       The provisions in this bill shall become effective only 
     after the Commodity Futures Trading Commission determines 
     that the imposition of any position limits that would be 
     authorized by this Act or the amendments made by this Act for 
     any agreement, contract or transaction involving a pension 
     fund would not result in an equity loss for any party to an 
     agreement, contract or transaction as a direct result of the 
     imposition of any such position limits.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas is recognized for 5 minutes in support of his motion.
  Mr. MORAN of Kansas. Mr. Speaker, as I indicated in my earlier 
comments here on the House floor concerning this legislation, I think 
our goal has been to make certain that we do no harm,

[[Page 19598]]

and I have concerns that we will do harm with the legislation that's 
before us. And by harm, I don't mean harm to the industry, not 
speculators, not swap dealers, but harm to the consumers, harm to the 
American people, harm to the United States economy.
  One of those concerns we have is concern with those who have invested 
their retirement in pension funds. And so this motion to recommit 
simply is a requirement that CFTC, before they impose those position 
limitations, would make certain, would certify that the imposition of 
those payment limitations would not reduce the value of a person's 
pension fund.
  The effort here is to make certain that no harm is caused, a goal I'm 
sure we all share, and in particular, make certain that we know what we 
are doing does not damage the value of the American people's retirement 
accounts.
  Mr. Speaker, I yield to the gentleman from Virginia.
  Mr. GOODLATTE. I thank the gentleman for yielding, and I would join 
him in supporting this motion to recommit because it would help to 
assure a great many Members on our side of the aisle that the concerns 
raised about the legislation that somehow this might prove to be 
disruptive of the markets would indeed not occur. It would simply 
require that the CFTC examine that and certify that they do not believe 
that that would be the case, and then the legislation could proceed to 
be fully implemented, and I think this is a wise consideration.
  The evidence that we have before us from the findings of a recent 
CFTC report is that these markets are functioning well. I think this 
legislation will enable them to continue to function well, but it does 
not, I think, in any way hurt and could, in fact, indeed enhance the 
operation of CFTC for them to require to make this investigation and 
make this certification that people, millions, tens of millions of 
Americans whose pension funds may include some investment in commodity 
futures markets will be unaffected by the legislation in terms of 
empowering the CFTC to conduct further oversight and to take further 
action as is allowed by the legislation.
  Again, I would point out that the best thing we can do to secure the 
pension funds of Americans would be to create more energy in this 
country that would meet the supply demands that are necessary, would 
help to hold down the cost of oil and natural gas and electricity and 
everything else that drives this economy, both in terms of our 
transportation, our manufacturing, the heating of our homes. All of 
these things would be greater enhanced if we would have the American 
Energy Act brought before us.
  Unfortunately, I believe the American Energy Act would not be a 
germane motion to recommit. Otherwise, we'd be offering it right now, 
but I believe the gentleman's alternative is a good one, and I support 
it.
  Mr. MORAN of Kansas. Mr. Speaker, again, I would ask the House of 
Representatives to approve our motion to recommit.
  Again, as the gentleman from Virginia says, we believe there's a 
better policy that hasn't even been debated upon the House floor in 
dealing with energy prices than the bill that's before us today. That's 
the American Energy Act. We wish that motion could be made in order 
today so that we could have a clear debate and vote upon the issue that 
is compelling to the American people and damaging to the United States 
economy.
  In lieu of that, we would ask that we take this additional step to 
make certain no unintended consequences occur and we protect the 
retirement accounts, the pension accounts of Americans.
  I yield back my time.
  Mr. PETERSON of Minnesota. Mr. Speaker, I rise in opposition to the 
motion.
  The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
  Mr. PETERSON of Minnesota. Mr. Speaker, first of all, we were delayed 
in getting something done with this bill back in July when, at one 
time, we had the votes to pass this under suspension, and then the 
votes eroded away. This is going to delay the process again. And beyond 
delay because it says ``promptly,'' it will have the effect of us not 
being able to move this bill in the House before we're out of here for 
the elections.
  As chairman of the committee and somebody that's worked on this, I 
disagree with that. I think we need to move this, irrespective of 
whatever's going to happen in the other body or with the 
administration. I think this has the effect of killing the bill because 
we won't have the time to deal with this.
  Lastly, I think the CFTC has the ability to do this under the 
legislation. Apparently Mr. Moran doesn't trust the CFTC. We have 
people over here that don't trust the CFTC, but I think they could deal 
with this. I don't think there's anything that precludes them from 
accomplishing this in the underlying legislation.
  I would ask people to oppose the motion, and I would say that I 
believe this kills the bill for this session.
  I yield back my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. MORAN of Kansas. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 15-minute vote on the motion to recommit will be followed by 
5-minute votes on passage of the bill, if ordered; ordering the 
previous question on House Resolution 1441; and adopting House 
Resolution 1441, if ordered.
  The vote was taken by electronic device, and there were--yeas 196, 
nays 221, not voting 16, as follows:

                             [Roll No. 607]

                               YEAS--196

     Aderholt
     Akin
     Alexander
     Altmire
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bean
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foster
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gilchrest
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hill
     Hobson
     Hoekstra
     Hunter
     Inglis (SC)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Latta
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     McNerney
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Peterson (PA)
     Petri
     Pickering
     Platts
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Scalise
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield (KY)
     Wilson (NM)
     Wilson (SC)
     Wittman (VA)
     Wolf
     Young (AK)
     Young (FL)

                               NAYS--221

     Abercrombie
     Ackerman
     Allen
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)

[[Page 19599]]


     Blumenauer
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Cazayoux
     Chandler
     Childers
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards (MD)
     Edwards (TX)
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Giffords
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Herseth Sandlin
     Higgins
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

                             NOT VOTING--16

     Brady (TX)
     Burgess
     Conyers
     Cubin
     Dreier
     Grijalva
     Hastings (FL)
     Hulshof
     Issa
     Jackson-Lee (TX)
     King (NY)
     Lampson
     Pence
     Pitts
     Poe
     Sestak

                              {time}  1400

  Messrs. BERMAN, JOHNSON of Georgia, MURTHA, RODRIGUEZ, GUTIERREZ, 
MURPHY of Connecticut, ROSS, BAIRD, Mrs. CAPPS, and Mr. RUPPERSBERGER 
changed their vote from ``yea'' to ``nay.''
  Messrs. CANNON, CARTER, WILSON of South Carolina, SIMPSON, WOLF, 
GERLACH, and TANCREDO changed their vote from ``nay'' to ``yea.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. HUNTER. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 283, 
noes 133, not voting 17, as follows:

                             [Roll No. 608]

                               AYES--283

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Bono Mack
     Boren
     Boswell
     Boucher
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Butterfield
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Cazayoux
     Chabot
     Chandler
     Childers
     Clay
     Cleaver
     Clyburn
     Cohen
     Costello
     Courtney
     Cramer
     Cuellar
     Cummings
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Duncan
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Fallin
     Farr
     Fattah
     Filner
     Forbes
     Fortenberry
     Frank (MA)
     Frelinghuysen
     Gallegly
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Graves
     Green, Al
     Green, Gene
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Harman
     Hayes
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jefferson
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones (NC)
     Kagen
     Kanjorski
     Kaptur
     Keller
     Kennedy
     Kildee
     Kilpatrick
     Kirk
     Klein (FL)
     Knollenberg
     Kucinich
     Kuhl (NY)
     LaHood
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lewis (KY)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lynch
     Mahoney (FL)
     Marchant
     Markey
     Marshall
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McCotter
     McDermott
     McGovern
     McHugh
     McIntyre
     McMorris Rodgers
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Platts
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Regula
     Reyes
     Richardson
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Shays
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sutton
     Tanner
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walsh (NY)
     Walz (MN)
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Welch (VT)
     Weller
     Wexler
     Whitfield (KY)
     Wilson (OH)
     Wittman (VA)
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (FL)

                               NOES--133

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bean
     Biggert
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Boozman
     Boustany
     Boyd (FL)
     Broun (GA)
     Brown (SC)
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Clarke
     Coble
     Cole (OK)
     Conaway
     Cooper
     Costa
     Crenshaw
     Crowley
     Culberson
     Davis (AL)
     Davis (KY)
     Davis, David
     Davis, Tom
     Doolittle
     Drake
     Everett
     Feeney
     Ferguson
     Flake
     Fossella
     Foster
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Gingrey
     Granger
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hunter
     Inglis (SC)
     Johnson, Sam
     Jordan
     Kind
     King (IA)
     Kingston
     Kline (MN)
     Lamborn
     Latta
     Lewis (CA)
     Linder
     Lungren, Daniel E.
     Mack
     Maloney (NY)
     Manzullo
     Matheson
     McCarthy (CA)
     McCaul (TX)
     McCrery
     McHenry
     McKeon
     Melancon
     Mica
     Miller (FL)
     Miller, Gary
     Moran (KS)
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Petri
     Pickering
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (MI)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Scalise
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Sullivan
     Tancredo
     Tauscher
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Walberg
     Walden (OR)
     Weiner
     Weldon (FL)
     Westmoreland
     Wilson (NM)
     Wilson (SC)
     Young (AK)

                             NOT VOTING--17

     Brady (TX)
     Burgess
     Conyers
     Cubin
     Dreier
     Grijalva
     Hastings (FL)
     Hulshof
     Issa
     Jackson-Lee (TX)
     King (NY)
     Lampson
     Pence
     Peterson (PA)
     Pitts
     Poe
     Sestak


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Two minutes.

                              {time}  1411

  Messrs. BURTON of Indiana, MICA, CRENSHAW, and ROGERS of Michigan 
changed their vote from ``aye'' to ``no.''
  Ms. FALLIN and Mrs. McMORRIS RODGERS changed their vote from ``no'' 
to ``aye.''
  So the bill was passed.

[[Page 19600]]

  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________