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Union Calendar No. 76 

113TH CONGRESS 

1ST SESSION H. R. 1038 

[Report No. 113–107] 

To provide equal treatment for utility special entities using utility operationsrelated swaps, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 11, 2013 

Mr. LAMALFA (for himself, Mr. DENHAM, Mr. LUETKEMEYER, Mr. COSTA, 

and Mr. GARAMENDI) introduced the following bill; which was referred 

to the Committee on Agriculture 

JUNE 12, 2013 

Additional sponsors: Mr. MICHAUD, Mr. DAVID SCOTT of Georgia, Mr. 

RIBBLE, Mr. VARGAS, Mr. CONAWAY, Mr. MCNERNEY, Mr. AUSTIN

SCOTT of Georgia, Mr. BENISHEK, Mr. HONDA, Mr. HASTINGS of Washington, Ms. DELBENE, Mr. YOHO, Mr. TIPTON, Mr. ROSS, Mr. GRAYSON, Mr. JONES, Mr. CRAWFORD, Mr. GRIFFIN of Arkansas, Mr. HANNA, 

Ms. LEE of California, Mr. SHERMAN, Mr. GIBBS, Mr. CA ́RDENAS, Mr. 

MCCLINTOCK, Mr. DEFAZIO, Ms. MATSUI, Mr. GARDNER, Ms. LINDA T. 

SA ́NCHEZ of California, Mr. HUFFMAN, Ms. BROWN of Florida, Mrs. 

CAPPS, Ms. ESHOO, Mr. TAKANO, Mrs. ELLMERS, Ms. CHU, Mr. SCHIFF, 

Mrs. HARTZLER, and Mr. HUDSON

JUNE 12, 2013 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

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A BILL 

To provide equal treatment for utility special entities using 

utility operations-related swaps, and for other purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Public Power Risk 

5 Management Act of 2013’’. 

6 SEC. 2. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES. 

7 Section 1a(49) of the Commodity Exchange Act (7 

8 U.S.C. 1a(49)) is amended by adding at the end the fol9 lowing: 

10 ‘‘(E) CERTAIN TRANSACTIONS WITH A

11 UTILITY SPECIAL ENTITY.— 

12 ‘‘(i) Transactions in utility operations13 related swaps shall be reported pursuant to 

14 section 4r. 

15 ‘‘(ii) In making a determination to ex16 empt pursuant to subparagraph (D), the 

17 Commission shall treat a utility operations18 related swap entered into with a utility 

19 special entity, as defined in section 

20 4s(h)(2)(D), as if it were entered into with 

21 an entity that is not a special entity, as de22 fined in section 4s(h)(2)(C).’’. 

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1 SEC. 3. UTILITY SPECIAL ENTITY DEFINED. 

2 Section 4s(h)(2) of the Commodity Exchange Act (7 

3 U.S.C. 6s(h)(2)) is amended by adding at the end the fol4 lowing: 

5 ‘‘(D) UTILITY SPECIAL ENTITY.—For pur6 poses of this Act, the term ‘utility special enti7 ty’ means a special entity, or any instrumen8 tality, department, or corporation of or estab9 lished by a State or political subdivision of a 

10 State, that— 

11 ‘‘(i) owns or operates an electric or 

12 natural gas facility or an electric or nat13 ural gas operation; 

14 ‘‘(ii) supplies natural gas and or elec15 tric energy to another utility special entity; 

16 ‘‘(iii) has public service obligations 

17 under Federal, State, or local law or regu18 lation to deliver electric energy or natural 

19 gas service to customers; or 

20 ‘‘(iv) is a Federal power marketing 

21 agency, as defined in section 3 of the Fed22 eral Power Act.’’. 

23 SEC. 4. UTILITY OPERATIONS-RELATED SWAP. 

24 (a) SWAP FURTHER DEFINED.—Section 

25 1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 

26 1a(47)(A)(iii)) is amended— 

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1 (1) by striking ‘‘and’’ at the end of subclause 

2 (XXI); 

3 (2) by adding ‘‘and’’ at the end of subclause 

4 (XXII); and 

5 (3) by adding at the end the following: 

6 ‘‘(XXIII) a utility operations-re7 lated swap;’’. 

8 (b) UTILITY OPERATIONS-RELATED SWAP DE9 FINED.—Section 1a of such Act (7 U.S.C. 1a) is amended 

10 by adding at the end the following: 

11 ‘‘(52) UTILITY OPERATIONS-RELATED SWAP.— 

12 The term ‘utility operations-related swap’ means a 

13 swap that— 

14 ‘‘(A) is entered into to hedge or mitigate a 

15 commercial risk; 

16 ‘‘(B) is not a contract, agreement, or 

17 transaction based on, derived on, or ref18 erencing— 

19 ‘‘(i) an interest rate, credit, equity, or 

20 currency asset class; or 

21 ‘‘(ii) a metal, agricultural commodity, 

22 or crude oil or gasoline commodity of any 

23 grade, except as used as fuel for electric 

24 energy generation; and 

25 ‘‘(C) is associated with— 

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1 ‘‘(i) the generation, production, pur2 chase, or sale of natural gas or electric en3 ergy, the supply of natural gas or electric 

4 energy to a utility, or the delivery of nat5 ural gas or electric energy service to utility 

6 customers; 

7 ‘‘(ii) all fuel supply for the facilities or 

8 operations of a utility; 

9 ‘‘(iii) compliance with an electric sys10 tem reliability obligation; 

11 ‘‘(iv) compliance with an energy, en12 ergy efficiency, conservation, or renewable 

13 energy or environmental statute, regula14 tion, or government order applicable to a 

15 utility; or 

16 ‘‘(v) any other electric energy or nat17 ural gas swap to which a utility is a 

18 party.’’. 

19 SEC. 5. EFFECTIVE DATE. 

20 The amendments made by this Act take effect as if 

21 enacted on July 21, 2010. 

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Union Calendar No. 76 

113TH CONGRESS 

1ST SESSION H. R. 1038 

[Report No. 113–107] 

A BILL 

To provide equal treatment for utility special entifor other purposes. ties using utility operations-related swaps, and 

JUNE 12, 2013 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

mstockstill on DSK4VPTVN1PROD with BILLS