Bart Chilton 

Commissioner 

U.S. Commodity Futures Trading Commission 

Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581 

www.cftc.gov 

May13, 2009 

Dear EEMAC Participant: 

(202) 418-5060 

(202) 418-5620 Facsimile 

bchilton@cnc.gov 

Thank you for attending the first meeting of the expanded Energy and Environmental 

Markets Advisory Committee (EEMAC). With its expanded authority and membership, 

the EEMAC will seek to enhance the CFrC's ability to address regulatory issues 

pertaining to energy and environmental markets and help shape and prepare for what is 

likely to be the largest commodity market ever: carbon trading. Your participation is 

appreciated. · 

Since this is a paperless meeting, the materials contained in this e-mail will provide 

additional information for and about the meeting. 

~ ... ~.~..~~·ton 

Commissioner 
U.S. Commodity Futures Trading Commission 

Three Lafayette Centre,1155 21st Street, tN/, Washington, DC 20581 

www.cftc.gov 

8:ooAM -8:15AM: 

8:15AM-8:45AM: 

8:45AM-9:30AM: 

9:30AM -10-00 AM 

10:00 AM -10:20 AM 

10:20 AM -n:oo AM 

u:oo AM -11:15 AM 

11:15 AM -11:45 AM 

11:45 AM -12:00 AM 

EEMAC Agenda 

Call to Order and Introduction 

Opening Remarks by Commissioners 

Presentation by Division of Market Oversight: 

An Overview of Environmental Markets: 

CFTC & A Carbon-Constrained World 

Participant Dialogues 

Break 

Continuation of Participant Dialogues 

Energy Market Overview: Price Volatility and Consumers 

Energy Legislation and Regulatory Dialogue 

Discussion of Future Meetings and Topics of Interest and 

Adjournment 
Media Advisory 

U.S. Commodity Futures Trading Commission 

Three Lafayette Centre, 1155 21st Street, tom, Washington, DC 20581 

www.cftc.gov 

CFfC's Energy and Environmental Advisory Committee to Meet on May 13, 2009 

Expanded Committee to Discuss Views on Emissions Trading Markets and Relevant Energy Issues 

Washington, DC- The U.S. Commodity Futures Trading Commission (CFrC) will convene the first meeting 

of its expanded Energy and Environmental Markets Advisory Committee (EEMAC or Committee) on 

Wednesday, May 13, 2009 at 8 am at its headquarters in Washington, DC. The EEMAC, which includes 

previous representatives as well as eleven new experts on environmental markets, will focus for the first time 

on carbon dioxide and other emissions trading markets. The Committee will also examine energy markets and 

discuss legislation pending on Capitol Hill to regulate the role of speculators in commodity markets. 

The Committee's Chair, CFrC Commissioner Bart Chilton, said, "The CFrC has a longstanding history of 

federal regulation of derivatives trading-from monitoring exchange activity and ensuring financial 

responsibility, to carrying out disciplinary and enforcement actions-and we need to ensure we are prepared to 

address the trading of carbon. These could be the biggest commodity markets in years and the agency needs to 

be prepared to protect these markets and consumers alike from fraud, abuse and manipulation." 

The CFfC's Division of Market Oversight will present an update on energy and environmental markets, and 

several Committee members will present their views on specific issues. The Commission has invited staff from 

other federal agencies as well to attend as observers. 

The meeting is open to the public. The meeting will be we beast via the internet and audio of the hearing is also 

available via a listen-only conference call. · 

What: Energy and Environmental Markets Advisory 

Committee meeting 

Location: CFrC Headquarters lobby-level Hearing Room 

1155 21111 Street, NW, Washington, DC 

Date: May 13, 2009 

Time: S:oo a.m.- 12:oo p.m. 

Viewing/Listening The CFrC has made available the following options to 

access the hearing: 

Information: Watch a live broadcast of the meeting via Webcast on 

www.cftc.gov. 

Call in to a toll-free telephone line to connect to a live 

audio feed. 

Call-in participants should be prepared to provide 

their first name, last name, and affiliation. Conference 

call information is listed below: 

Domestic Toll Free (U.S. & Canada): 866-759-0291 

International Toll: 763-416-8828 

The conference ID: 99572971 

Call leader name: "EEMAC or Energy & 

Environmental Advisory Committee" 

I 

I 

I 
Executive Summary 

The CFfC's Energy Markets Advisory Committee (EMAC) was created in 2008 to advise the Commission on 

important new developments in energy markets that raise new regulatory issues, and to recommend appropriate 

regulatory responses to ensure market integrity and-protect consumers. It was designed to provide a public forum to 

examine emerging markets and the Commission's role in these markets, and to serve as a vehicle for informed discussion 

among a diverse group of market participants. 

The Commission has now determined to expand the scope of the EMAC to encompass environmental markets; this 

expansion will be in the public interest in connection vvi~ duties imposed on the Commission by the Commodity 

Exchange Act. In recent years, derivative contracts relating to environmental markets have grown rapidly in number and 

significance. Mandatory reductions of greenhouse gases via cap-and-trade mechanisms to address climate change and 

pollution exist today regionally, and are expected to be greatly expanded. Specifically, a nationwide cap-and-trade 

program for the reduction of carbon dioxide emissions- the.largest greenhouse gas by volume- V\ill, if enacted, 

substantially increase the number and size of environmental programs that are currently in effect. Given the direct impact 

of emissions mandates on the energy industry, energy and environmental markets are inextricably linked, and t he 

Commission has a responsibility to anticipate and address associated regulatory issues in these areas, given what will 

likely be exceptionally deep, liquid and active derivatives activity associated v.rith cash market emissions trading. In these 

circumstances, an advisory committee focused on both energy and environmental markets will significantly advance the 

Commission's ability to carry out its mission to protect consumers and ensure the integrity of the marketplace in these 

critically important areas. 

Energy and EJwironmcmAi ;\farkcts Advisory Ccmmitccc 

Commodity Fulllrcs Tr.rdiiJg Commission, las/ui1gto , D. C 

M.1y 13, 2009 
Richard S ando1· 

Chairman and Chief Executive Officer 

Chicago Climate Exchange, Inc. 

Jeffrey Sprecher 

Chairman and Chief Executive Officer 

ICE Futures U.S. 

De'Ana Dow, Managing Director, CME Group 

(for James Newsome) President 

NYMEX,Inc. 

Gmy Gero, President 

California Climate Action Registry 

Dominick A. Chil·ichella, Founding J?artner 

Energy Management Institute 

Heike Eckert, Executive Vice P1·esideut 

Eurex 

Elizabeth A . Moler, Executive Vice President, 

Government & EnvironmeutalAffairs & Public 

Policy 

Exelon Corporation 

Robert Stavins, Professor 

Harvard University 

John F. Kennedy School of Govennnent 

Seth Goldmctn, Board Member 

Calvert Foundation 

Jack D. Cogen 

President & Chief Executive Officer, Chairman of 

lETA 

Natsource LLC 

Eileen Claussen, President 

Pew Center on Global Climate Change 

EEMAC MEMBERS 

Tyson Slocum, Director 

PubJic Citizen 

Jonathan Schrag, Executive Director 

Regional Greenhouse Gas Initiative, INC 

Holly Koeppel 

Executive Vice President &Chief Financial 

Officer 

Ameriean Electric Power 

BenjaminN. Feldman (for Jeffrey Frase) 

JP Morgan 

Laura Campbell 

Assistant Manager for Energy Resources 

Memphis Light, Gas & Water 

R. Skip Horvath, President 

Natural Gas Supply Association 

Sean Cota, President 

Cota & Cota Oil & Propane 

Robert Pickel 

Executive director and Chief Executive Officer 

ISDA 

Paul Pantano 

McDermott, Will & Emery 

Paul Cicio, President 

lndustrial Energy Consumers of America 

Bob Anderson, Executive Director 

Committee of Chief Risk Officers 

Brian Kelly, Executive Vice PresidentColoniai 

Energy, Inc. 

R yan Stroschein, Director, Government 

Affairs 

(for John P. Heimlich), Vice President & 

Chief Economist 

Air Transport Association 

JohnFelmy, Chief Economist 

American Petroleum Institute 

William McCoy 

Managing Director and Counsel Legal and 

Compliance Department 

Morgan Stanley 

Mark StaiJtton 

Senior Managing Director, Head of Global 

Energy 

Citadel Investment Group, L.L.C. 

Donald Castttro 

Managing Direcfor Head of Global 

Goldman Sachs Group, Inc. 

Ron Oppenheimer 

General Counsel, Global Commodities 

Merrill Lynch Commodities, Inc. 

Keuin Fox, Managing Director 

D.E. Shaw & Co., L.P. 

A n th ony Mansfield 

Heller Ehrman LLP 

Michael Prokop, Executive Vice President 

Aroerex Brokers LLC 

John Sltelk, 

President & Chief Executive Officer 

ElectTic Power Supply Association 

Em:rgyand Envlivnmcnt:!l ;\1arkcts Advisory Commilfcc 

Commodity Fwurcs Tm(hi!K Commission, H'ashinlf(nn, D.C 

Mt~yl3, 2009