S. 509Senate109th Congress (2005-2007)In Committee

Energy Markets Improvement Act of 2005

Introduced March 3, 2005

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (text of measure as introduced: CR S2015-2017)

March 3, 2005

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SenateIntro Referral

Introduced in Senate

March 3, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S2014-2015)

March 3, 2005

SenateIntro Referral

Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. (text of measure as introduced: CR S2015-2017)

March 3, 2005

Floor Debate

21 members

What members said about S. 509 on the floor

13 Republicans8 Democrats
Robert C. Byrd
Sen. Robert C. ByrdD-WV · Mar 3, 2005

Mr. President, today I am, again, introducing legislation designed to fulfill an important promise made by the Federal Government to the people of my State and my region some 40 years ago. That…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Mar 3, 2005

Mr. President, in light of the most recent evidence uncovered about Enron's participation in the Western Energy Crisis, I rise today to introduce the Energy Market Oversight Bill with Senators Levin,…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Mar 3, 2005

Mr. President, it is a privilege to join Senator Sessions, Senator Durbin and Senator Dodd in introducing the ``National All Schedules Prescription Electronic Reporting Act.'' Our goal is to help…

Mike DeWine
Sen. Mike DeWineR-OH · Mar 3, 2005

Mr. President, today, I am pleased to join with Senators Levin, Stabenow, Reed, and Voinovich to introduce the National Invasive Species Council Act--a bill to permanently establish the National…

Ron Wyden
Sen. Ron WydenD-OR · Mar 3, 2005

Mr. President, the pace of technological innovation offers American consumers an eye-catching array of electronic gadgets. But for every new lap top or HDTV that goes home from the store with a…

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Lamar Alexander
Sen. Lamar AlexanderR-TN · Mar 3, 2005

Mr. President, today I am here with Senator Dodd and on behalf of Senator Enzi and Senator Kennedy to introduce the Caring for Children Act of 2005 which reauthorizes the Child Care and Development…

Norm Coleman
Sen. Norm ColemanR-MN · Mar 3, 2005

Mr. President, traveling throughout rural Minnesota, I see a very real need for the revitalization and rebuilding of Main Streets, and this is why today I am introducing the Rural Renaissance Act…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Mar 3, 2005

Mr. President, today I am introducing the National Women's History Museum Act of 2005. I appreciate the support of my colleagues who have helped in this important effort and who have agreed to be…

Christopher S. Bond
Sen. Christopher S. BondR-MO · Mar 3, 2005

Mr. President, I introduced S. 503, the Education Begins At Home Act. It is at the desk. It is cosponsored by Senators Talent and DeWine. I invite my colleagues to look at it and join with me in this…

Michael B. Enzi
Sen. Michael B. EnziR-WY · Mar 3, 2005

Mr. President, today I am pleased to be joined by Senators Kennedy, Alexander and Dodd in introducing the ``Caring for Children Act of 2005'' which reauthorizes the Child Care and Development Block…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Mar 3, 2005

Mr. President, in light of the most recent evidence uncovered about Enron's participation in the Western Energy Crisis, I rise today to introduce the Energy Market Oversight Bill with Senators Levin,…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 3, 2005

Mr. President, America is a nation of sports fans and sports players. In fact, it is hard to imagine something more influential in today's society than athletics. As children, we grow up emulating…

Rick Santorum
Sen. Rick SantorumR-PA · Mar 3, 2005

I rise today to introduce with Senator Rockefeller the bipartisan Fire Sprinkler Incentive Act of 2005. Passage of this Act would serve greatly to help reduce the tremendous annual economic and human…

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Tom Harkin
Sen. Tom HarkinD-IA · Mar 3, 2005

Mr. President, today I, along with Senator Smith, introduce the Money Follows the Person Act of 2005. This legislation is needed to truly bring people with disabilities into the mainstream of society…

Judd Gregg
Sen. Judd GreggR-NH · Mar 3, 2005

Mr. President, today I am pleased to be joined by Senators Kennedy, Mikulski, Harkin, Bingaman, Reed, Murray, Lincoln, Kerry and Durbin in introducing the Public Safety Employer-Employee Cooperation…

Jack Reed
Sen. Jack ReedD-RI · Mar 3, 2005

Mr. President, I am pleased to be joined today by Senators Dodd, Kennedy, and Murray in once again introducing the Child Care Quality Incentive Act, which seeks to redouble our child care efforts and…

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Mar 3, 2005

Mr. President, the tragic attacks of September 11, 2001 reminded us that police are heroes who risk their lives to protect us. That's why it's so outrageous that a gun manufacturer would design and…

Ken Salazar
Sen. Ken SalazarD-CO · Mar 3, 2005

Mr. President, I rise to introduce a simple piece of legislation. The idea underlying this bill is simple: words matter. How we characterize what we do sends a message, and nowhere is that more clear…

Kay Bailey Hutchison
Sen. Kay Bailey HutchisonR-TX · Mar 3, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. Mr. President, I rise today to offer a bill that is vital for water conservation in my home State of Texas.…

Jon Kyl
Sen. Jon KylR-AZ · Mar 3, 2005

Mr. President, I am pleased to join today with Senator McCain to introduce the Yuma Crossing National Heritage Area Boundary Adjustment Act. This legislation would amend the Yuma Crossing National…

Chuck Hagel
Sen. Chuck HagelR-NE · Mar 3, 2005

Mr. President, I rise today with Senator Durbin to introduce the Public Health Preparedness Workforce Development Act of 2005. This legislation aims to increase the pipeline of qualified public…

Jim DeMint
Sen. Jim DeMintR-SC · Mar 3, 2005

Mr. President, I rise today to reintroduce ``Holly's Law,'' a bill that would suspend FDA's approval of RU-486 and direct the GAO to conduct an independent review of the process used by the FDA to…

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 3, 2005
        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 509 Introduced in Senate (IS)]

109th CONGRESS
1st Session
S. 509

To improve the operation of energy markets.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

March 3, 2005

Mrs. Feinistein (for herself, Mr. Levin, Mr. Wyden, Mr. Harkin, and Ms.
Cantwell) introduced the following bill; which was read twice and
referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

A BILL

To improve the operation of energy markets.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Energy Markets
Improvement Act of 2005''.
(b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

Sec. 101. Market transparency.
Sec. 102. Round trip trading.
Sec. 103. Enforcement.
Sec. 104. Refund effective date.
Sec. 105. Discovery and evidentiary hearings under the Federal Power
Act.
TITLE II--MARKET MANIPULATION

Sec. 201. Prohibition of market manipulation.
TITLE III--ENERGY MARKET OVERSIGHT

Sec. 301. Over-the-counter transactions in energy commodities.
Sec. 302. Electronic trading facilities for energy commodities.
Sec. 303. No effect on other authority.
Sec. 304. Prohibition of fraudulent transactions.
Sec. 305. Criminal and civil penalties.
Sec. 306. Conforming amendments.

TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

SEC. 101. MARKET TRANSPARENCY.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding at the end the following:

``SEC. 215. MARKET TRANSPARENCY.

``(a) In General.--Not later than 180 days after the date of
enactment of this section, the Commission shall promulgate regulations
establishing an electronic information system to provide the Commission
and the public with access to such information as is appropriate to
facilitate price transparency and participation in markets subject to
the jurisdiction of the Commission.
``(b) Information To Be Made Available.--
``(1) In general.--The system under subsection (a) shall
provide information about the availability and market price of
wholesale electric energy and transmission services to the
Commission, State commissions, buyers and sellers of wholesale
electric energy, users of transmission services, and the
public.
``(2) Protection of consumers and competitive markets.--In
determining the information to be made available under the
system and the time at which to make such information
available, the Commission shall seek to ensure that consumers
and competitive markets are protected from false or misleading
information and from the adverse effects of potential collusion
or other anticompetitive behaviors that can be facilitated by
untimely public disclosure of transaction-specific information.
``(c) Authority To Obtain Information.--The Commission shall have
authority to obtain information described in subsections (a) and (b)
from any electric utility or transmitting utility (including any entity
described in section 201(f)).
``(d) Exemption.--The Commission shall exempt from disclosure
information that the Commission determines would, if disclosed--
``(1) be detrimental to the operation of an effective
market; or
``(2) jeopardize system security.
``(e) Applicability.--The system under subsection (a) shall not
apply to an entity described in section 212(k)(2)(B) with respect to
transactions for the purchase or sale of wholesale electric energy and
transmission services within the area described in section
212(k)(2)(A).''.

SEC. 102. ROUND TRIP TRADING.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) (as
amended by section 101) is amended by adding at the end the following:

``SEC. 216. ROUND TRIP TRADING.

``(a) Prohibition.--It shall be unlawful for any person or entity
(including an entity described in section 201(f)) knowingly to enter
into any contract or other arrangement to execute a round trip trade.
``(b) Definition of Round Trip Trade.--In this section, the term
`round trip trade' means a transaction (or combination of transactions)
in which a person or entity, with the intent to affect reported
revenues, trading volumes, or prices--
``(1) enters into a contract or other arrangement to
purchase from, or sell to, any other person or entity electric
energy at wholesale; and
``(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a financially
offsetting trade with the other person or entity for the same
electric energy at substantially the same location, price,
quantity, and terms so that, collectively, the purchase and
sale transactions in themselves result in a de minimis or no
financial gain or loss.''.

SEC. 103. ENFORCEMENT.

(a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C.
825e) is amended--
(1) in the first sentence--
(A) by inserting ``(including an electric
utility)'' after ``Any person''; and
(B) by inserting ``, transmitting utility,'' after
``licensee''; and
(2) in the second sentence, by inserting ``, transmitting
utility,'' after ``licensee''.
(b) Investigations.--Section 307(a) of the Federal Power Act (16
U.S.C. 825f(a)) is amended in the first sentence by inserting
``(including a transmitting utility)'' after ``any person''.
(c) Review of Commission Orders.--Section 313(a) of the Federal
Power Act (16 U.S.C. 825l) is amended in the first sentence by
inserting ``(including an electric utility)'' after ``Any person''.
(d) Criminal Penalties.--Section 316 of the Federal Power Act (16
U.S.C. 825o) is amended--
(1) in subsection (a)--
(A) by striking ``$5,000'' and inserting
``$1,000,000''; and
(B) by striking ``two years'' and inserting ``5
years'';
(2) in subsection (b), by striking ``$500'' and inserting
``$25,000''; and
(3) by striking subsection (c).
(e) Civil Penalties.--Section 316A of the Federal Power Act (16
U.S.C. 825o-1) is amended--
(1) in subsections (a) and (b), by striking ``section 211,
212, 213, or 214'' each place it appears and inserting ``part
II''; and
(2) in subsection (b), by striking ``$10,000'' and
inserting ``$1,000,000''.
(f) General Penalties.--Section 21 of the Natural Gas Act (15
U.S.C. 717t) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting ``5
years''; and
(2) in subsection (b), by striking ``$500'' and inserting
``$50,000''.

SEC. 104. REFUND EFFECTIVE DATE.

Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is
amended--
(1) in the second sentence, by striking ``the date 60 days
after the filing of such complaint nor later than 5 months
after the expiration of such 60-day period'' and inserting
``the date of the filing of the complaint nor later than 5
months after the filing of the complaint'';
(2) in the third sentence--
(A) by striking ``60 days after the'' and inserting
``of''; and
(B) by striking ``expiration of such 60-day
period'' and inserting ``publication date''; and
(3) by striking the fifth sentence and inserting the
following: ``If no final decision is rendered by the conclusion
of the 180-day period that begins on the date of institution of
a proceeding under this section, the Commission shall state the
reasons why the Commission has failed to do so and shall state
its best estimate as to when the Commission reasonably expects
to render a final decision.''.

SEC. 105. DISCOVERY AND EVIDENTIARY HEARINGS UNDER THE FEDERAL POWER
ACT.

The Federal Power Act is amended--
(1) in section 206 (16 U.S.C. 824e), by adding at the end
the following:
``(e) Discovery and Evidentiary Hearings.--On receipt of a
complaint by a State or a State Commission under subsection (a), the
Commission shall provide--
``(1) an opportunity for the State or the State Commission
to conduct reasonable discovery; and
``(2) on request of the State or the State Commission and a
showing of a dispute as to material facts, an evidentiary
hearing.''; and
(2) in section 306 (16 U.S.C. 825e)--
(A) by inserting ``(a) In General.--'' before ``Any
person''; and
(B) by adding at the end the following:
``(b) Discovery and Evidentiary Hearings.--On receipt of a
complaint by a State or State Commission under this section, the
Commission shall provide--
``(1) an opportunity for the State or the State Commission
to conduct reasonable discovery; and
``(2) on request of the State or the State Commission and a
showing of dispute as to material facts, an evidentiary
hearing.''.

TITLE II--MARKET MANIPULATION

SEC. 201. PROHIBITION OF MARKET MANIPULATION.

(a) In General.--Part II of the Federal Power Act (as amended by
section 102) is amended by adding at the end the following:

``SEC. 217. PROHIBITION OF MARKET MANIPULATION.

``(a) In General.--It shall be unlawful for any person, directly or
indirectly, to knowingly use or employ, in connection with the purchase
or sale of electric energy or the purchase or sale of transmission
services subject to the jurisdiction of the Commission, any
manipulative or deceptive device or contrivance to affect the price,
availability, or reliability of the electric energy or transmission
services.
``(b) Regulations.--The Commission may promulgate regulations as
appropriate in the public interest or for the protection of electric
ratepayers to enforce this section.''.
(b) Additional Remedy for Market Manipulation.--Section 206 of the
Federal Power Act (16 U.S.C. 824e) is amended by adding at the end the
following:
``(e) Remedy for Market Manipulation.--If the Commission finds that
a public utility has knowingly employed any manipulative or deceptive
device or contrivance in violation of this Act (including a regulation
promulgated under this Act), the Commission may, in addition to any
other remedy available under this Act, revoke the authority of the
public utility to charge market-based rates.''.

TITLE III--ENERGY MARKET OVERSIGHT

SEC. 301. OVER-THE-COUNTER TRANSACTIONS IN ENERGY COMMODITIES.

(a) Definitions.--Section 1a of the Commodity Exchange Act (7
U.S.C. 1a) is amended by adding at the end the following:
``(34) Included energy transaction.--The term `included
energy transaction' means a contract, agreement, or transaction
in an energy commodity that is--
``(A)(i) executed or traded on an electronic
trading facility; and
``(ii) entered into on a principal-to-principal
basis solely between persons that are eligible
commercial entities at the time the persons enter into
the agreement, contract, or transaction; or
``(B)(i) executed or traded not on or through a
trading facility; and
``(ii) entered into solely between persons that are
eligible contract participants at the time the persons
enter into the agreement, contract, or transaction,
regardless of the means of execution of the agreement,
contract, or transaction.
``(35) Energy commodity.--
``(A) In general.--The term `energy commodity'
means a commodity (other than an excluded commodity, a
metal, or an agricultural commodity) that is used as a
source of energy.
``(B) Inclusions.--The term `energy commodity'
includes--
``(i) coal;
``(ii) crude oil, gasoline, heating oil,
and propane;
``(iii) electricity; and
``(iv) natural gas.
``(36) Electronic energy trading facility.--The term
`electronic energy trading facility' means an electronic
trading facility on or through which included energy
transactions are traded or executed.''.
(b) Off-Exchange Transactions in Energy Commodities.--Section 2(g)
of the Commodity Exchange Act (7 U.S.C. 2(g)) is amended--
(1) by inserting ``or an energy commodity'' after
``agricultural commodity'';
(2) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively;
(3) by striking ``No provision'' and inserting the
following:
``(1) In general.--No provision''; and
(4) by adding at the end the following:
``(2) Transactions in energy commodities.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C) and subsection (h)(7),
nothing in this Act applies to an included energy
transaction.
``(B) Prohibited conduct.--
``(i) In general.--An included energy
transaction shall be subject to--
``(I) sections 5b, 12(e)(2)(B), and
22(a)(4); and
``(II) the prohibitions in sections
4b, 4c(a), 4c(b), 4o, 6(c), 6(d), 6c,
6d, 8a, and 9(a)(2).
``(ii) Transactions exempted by commission
action.--Notwithstanding any exemption by the
Commission under section 4(c), an included
energy transaction shall be subject to the
sections specified in clause (i) of this
subparagraph, subparagraph (C), and subsection
(h)(7).
``(C) Reporting and recordkeeping requirements.--
``(i) In general.--An eligible contract
participant that enters into or executes an
included energy transaction that performs, or
together with other such transactions performs,
a significant price discovery function in the
cash market for an energy commodity or in any
other market for agreements, contracts, or
transactions relating to an energy commodity,
or an eligible commercial entity that enters
into or executes an included energy transaction
described in section 1a(34)(A) shall--
``(I) provide to the Commission on
a timely basis the information required
under clause (ii); and
``(II)(aa) consistent with section
4i, maintain books and records relating
to each included energy transaction,
for a period of at least 5 years after
the date of the transaction, in such
form as the Commission shall require;
and
``(bb) keep the books and records
open to inspection by any
representative of the Commission or the
Attorney General.
``(ii) Required information.--
``(I) In general.--The Commission
shall require that such information
regarding included energy transactions
be provided to the Commission as the
Commission considers necessary to
assist in detecting and preventing
price manipulation.
``(II) Information to be
included.--Such information shall
include information regarding large
trading positions obtained through 1 or
more included energy transactions that
involve--
``(aa) substantial
quantities of the commodity in
the cash market; or
``(bb) substantial
positions, investments, or
trades in agreements or
contracts related to energy
commodities.
``(III) Manner of compliance.--The
Commission shall specify when and how
such information shall be provided and
maintained by eligible contract
participants and eligible commercial
entities.
``(IV) Price discovery
transactions.--
``(aa) In general.--In
specifying the information to
be provided under this
paragraph, the Commission shall
identify the transactions or
class of transactions that the
Commission considers to perform
a significant price discovery
function.
``(bb) Considerations.--In
determining which included
energy transactions perform a
significant price discovery
function, the Commission shall
consider the extent to which--

``(AA) standardized
agreements are used to
execute the
transactions;

``(BB) the
transactions involve
standardized types or
measures of a
commodity;

``(CC) the prices
of the transactions are
reported to third
parties, published, or
disseminated;

``(DD) the prices
of the transactions are
referenced in other
transactions; and

``(EE) other
factors considered
appropriate by the
Commission.

``(V) Persons filing.--
``(aa) In general.--The
Commission, in its discretion,
may allow large trader position
reports required to be provided
by an eligible commercial
entity to be provided by an
electronic energy trading
facility if the eligible
commercial entity authorizes
the facility to provide such
information on its behalf.
``(bb) Information and
enforcement.--Nothing in an
authorization under item (aa)
shall impair the ability of the
Commission to obtain
information from an eligible
commercial entity or otherwise
enforce this Act.
``(VI) Regulations.--Not later than
180 days after the date of enactment of
this paragraph, the Commission shall
issue a notice of proposed rulemaking,
and not later than 1 year after the
date of enactment of this paragraph,
the Commission shall promulgate final
regulations, specifying the information
to be provided and maintained under
this subparagraph.''.

SEC. 302. ELECTRONIC TRADING FACILITIES FOR ENERGY COMMODITIES.

Section 2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) is
amended--
(1) in paragraph (1), by inserting after ``an exempt
commodity'' the following: ``other than an energy commodity'';
(2) in paragraph (3), by inserting after ``an exempt
commodity'' the following: ``other than an energy commodity'';
and
(3) by adding at the end the following:
``(7) Energy transactions.--
``(A) In general.--To the extent that the
Commission determines to be appropriate under
subparagraph (C), an electronic energy trading facility
shall--
``(i) be subject to the requirements of
section 5a, to the extent provided in sections
5a(g) and 5d;
``(ii)(I) consistent with section 4i,
maintain books and records relating to the
business of the electronic energy trading
facility, including books and records relating
to each transaction in such form as the
Commission may require; and
``(II) make the books and records required
under this section available to representatives
of the Commission and the Attorney General for
inspection for a period of at least 5 years
after the date of each included energy
transaction;
``(iii) make available to the public
information on trading volumes, settlement
prices, open interest (where applicable), and
opening and closing ranges (or daily highs and
lows, as appropriate) for included energy
transactions; and
``(iv) provide the information to the
Commission in such form and at such times as
the Commission may require.
``(B) Applicability of other provisions.--
``(i) Paragraph 5.--An electronic energy
trading facility shall comply with paragraph
(5).
``(ii) Paragraph 6.--Paragraph (6) shall
apply with respect to a subpoena issued to any
foreign person that the Commission believes is
conducting or has conducted transactions on or
through an electronic energy trading facility.
``(C) Regulations.--Not later than 180 days after
the date of enactment of this paragraph, the Commission
shall issue a notice of proposed rulemaking, and not
later than 1 year after the date of enactment of this
paragraph, the Commission shall promulgate final
regulations, specifying the information to be provided,
maintained, or made available to the public under
subparagraphs (A) and (B).
``(8) Nondisclosure of proprietary information.--In
carrying out paragraph (7) and subsection (g)(2), the
Commission shall not--
``(A) require the real-time publication of
proprietary information;
``(B) prohibit the commercial sale or licensing of
real-time proprietary information; or
``(C) publicly disclose information regarding
market positions, business transactions, trade secrets,
or names of customers, except as provided in section
8.''.

SEC. 303. NO EFFECT ON OTHER AUTHORITY.

(a) No Effect on FERC Authority.--Nothing contained in this title
shall affect the jurisdiction of the Federal Energy Regulatory
Commission with respect to the authority of the Federal Energy
Regulatory Commission under the Federal Power Act (16 U.S.C. 791a et
seq.), the Natural Gas Act (15 U.S.C. 717 et seq.), or other law to
obtain information or otherwise carry out the responsibilities of the
Federal Energy Regulatory Commission.
(b) No Effect on Excluded Commodities.--The amendments made by this
title have no effect on the regulation of excluded commodities under
the Commodity Exchange Act (7 U.S.C. 1a et seq.).
(c) No Effect on Metals.--The amendments made by this title have no
effect on the regulation of metals under the Commodity Exchange Act (7
U.S.C. 1a et seq.).

SEC. 304. PROHIBITION OF FRAUDULENT TRANSACTIONS.

Section 4b of the Commodity Exchange Act (7 U.S.C. 6b) is amended
by striking subsection (a) and inserting the following:
``(a) Prohibitions.--
``(1) In general.--It shall be unlawful (A) for any person,
in or in connection with any order to make, or the making of,
any contract of sale of any commodity for future delivery or in
interstate commerce, that is made, or to be made, on or subject
to the rules of a designated contract market, for or on behalf
of any other person, or (B) for any person, in or in connection
with any order to make, or the making of, any contract of sale
of any commodity for future delivery or other agreement,
contract or transaction subject to paragraphs (1) and (2) of
section 5a(g), that is made, or to be made, for or on behalf of
or with, any other person, other than on or subject to the
rules of a designated contract market--
``(i) to cheat or defraud or attempt to cheat or
defraud the other person;
``(ii) willfully to make or cause to be made to
such other person any false report or statement or
willfully to enter or cause to be entered for the other
person any false record;
``(iii) willfully to deceive or attempt to deceive
the other person by any means whatsoever in regard to
any order or contract or the disposition or execution
of any order or contract, or in regard to any act of
agency performed, with respect to any order or contract
for (or, in the case of a contract described in
subparagraph (B), with the other person); or
``(iv)(I) to bucket an order represented by the
person as an order to be executed, for or on behalf of
the other person, on an organized exchange; or
``(II) to--
``(aa) fill an order by offset against the
order or orders of the other person; or
``(bb) willfully and knowingly and without
the prior consent of the other person, to--
``(AA) become the buyer in respect
to any selling order of the other
person; or
``(BB) become the seller in respect
to any buying order of the other
person;
if the order is to be executed on or subject to the
rules of a designated contract market.
``(2) Limitation.--This subsection does not obligate any
person, in connection with a transaction in a contract of sale
of a commodity for future delivery with another person, to
disclose to any other person nonpublic information that may be
material to the market price of the commodity or transaction,
except as necessary to make any statement made to the other
person in connection with the transaction not misleading in any
material respect.''.

SEC. 305. CRIMINAL AND CIVIL PENALTIES.

(a) Enforcement Powers of Commission.--Section 6(c) of the
Commodity Exchange Act (7 U.S.C. 9, 15) is amended in paragraph (3) of
the tenth sentence--
(1) by inserting ``(A)'' after ``assess such person''; and
(2) by inserting after ``each such violation'' the
following: ``, or (B) in any case of manipulation of, or
attempt to manipulate, the price of any commodity, a civil
penalty of not more than the greater of $1,000,000 or triple
the monetary gain to such person for each such violation,''.
(b) Manipulations and Other Violations.--Section 6(d) of the
Commodity Exchange Act (7 U.S.C. 13b) is amended in the first
sentence--
(1) by striking ``paragraph (a) or (b) of section 9 of this
Act'' and inserting ``subsection (a), (b), or (f) of section
9''; and
(2) by striking ``said paragraph 9(a) or 9(b)'' and
inserting ``subsection (a), (b), or (f) of section 9''.
(c) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended--
(1) in the first sentence, by inserting before the period
at the end the following: ``, or, in any case of manipulation
of, or an attempt to manipulate, the price of any commodity, a
civil penalty of not more than $1,000,000 for each such
violation''; and
(2) in the second sentence, by inserting before the period
at the end the following: ``, except that if the failure or
refusal to obey or comply with the order involved any offense
under section 9(f), the registered entity, director, officer,
agent, or employee shall be guilty of a felony and, on
conviction, shall be subject to penalties under section 9(f)''.
(d) Action To Enjoin or Restrain Violations.--Section 6c(d) of the
Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended by striking
``(d)'' and all that follows through the end of paragraph (1) and
inserting the following:
``(d) Civil Penalties.--In any action brought under this section,
the Commission may seek and the court shall have jurisdiction to
impose, on a proper showing, on any person found in the action to have
committed any violation--
``(1) a civil penalty in the amount of not more than the
greater of $100,000 or triple the monetary gain to the person
for each violation; or
``(2) in any case of manipulation of, or an attempt to
manipulate, the price of any commodity, a civil penalty in the
amount of not more than the greater of $1,000,000 or triple the
monetary gain to the person for each violation.''.
(e) Violations Generally.--Section 9(a) of the Commodity Exchange
Act (7 U.S.C. 13) is amended--
(1) by striking ``(or $500,000 in the case of a person who
is an individual)'';
(2) by striking ``five years'' and inserting ``10 years'';
and
(3) in paragraph (2), by striking ``false or misleading or
knowingly inaccurate reports'' and inserting ``knowingly false,
misleading, or inaccurate reports''.

SEC. 306. CONFORMING AMENDMENTS.

(a) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended--
(1) in subsection (d)(1), by striking ``section 5b'' and
inserting ``section 5a(g), 5b,'';
(2) in subsection (e)(1), by inserting ``(1)'' after
``(g)''; and
(3) in subsection (i)--
(A) in paragraph (1)--
(i) by striking ``No provision'' and
inserting ``In general.--Subject to subsections
(g)(2) and (h)(7), no provision''; and
(ii) in subparagraph (A), by inserting
``(1)'' after ``2(g)''; and
(B) in paragraph (2), by striking ``No provision''
and inserting ``In general.--Subject to subsections
(g)(2) and (h)(7), no provision''.
(b) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is
amended in the first sentence by inserting ``, or pursuant to an
exemption under section 4(c)'' after ``transaction execution
facility''.
(c) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 12a(9))
is amended--
(1) by inserting ``or an electronic energy trading
facility'' after ``direct the contract market'';
(2) by inserting after ``liquidation of any futures
contract'' the following: ``or included energy transaction'';
and
(3) by inserting ``or an electronic energy trading
facility'' after ``given by a contract market''.
<all>