I 
110TH CONGRESS 
1ST SESSION 
H. R. 594 
To regulate over-the-counter trading of energy derivatives. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 19, 2007 
Mr. STUPAK (for himself, Mr. DINGELL, Mr. LARSON of Connecticut, Mr. 
HINCHEY, Mr. ALLEN, Mrs. CAPPS, Mr. DEFAZIO, Ms. SCHAKOWSKY, 
Mr. CONYERS, Mr. PASCRELL, Mr. GRIJALVA, Ms. JACKSON-LEE of 
Texas, Mr. TIERNEY, Mr. KILDEE, Ms. SCHWARTZ, Mr. CHANDLER, Mr. 
MICHAUD, Mrs. DAVIS of California, and Mr. BAIRD) introduced the fol-
lowing bill; which was referred to the Committee on Agriculture 
A BILL 
To regulate over-the-counter trading of energy derivatives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prevent Unfair Manip-
ulation of Prices Act of 2007’’. 
SEC. 2. OVER-THE-COUNTER TRANSACTIONS IN ENERGY 
COMMODITIES. 
(a) DEFINITIONS.—Section 1a of the Commodity Ex-
change Act (7 U.S.C. 1a) is amended by adding at the 
end the following: 
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‘‘(B) INCLUSIONS.—The term ‘energy com-
modity’ includes— 
‘‘(i) coal; 
‘‘(ii) crude oil, gasoline, diesel fuel, 
heating oil, and propane; 
‘‘(iii) electricity; and 
‘‘(iv) natural gas. 
‘‘(36) ELECTRONIC
ENERGY
TRADING
FACIL-
ITY.—The term ‘electronic energy trading facility’ 
means an electronic trading facility on or through 
which included energy transactions are traded or ex-
ecuted.’’. 
(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
COMMOD-
ITIES.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C) and subsection 
(h)(7), nothing in this Act applies to an in-
cluded energy transaction. 
‘‘(B) PROHIBITED CONDUCT.— 
‘‘(i) IN
GENERAL.—An included en-
ergy 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 trans-
action shall be subject to the sections spec-
ified in clause (i) of this subparagraph, 
subparagraph (C), and subsection (h)(7). 
‘‘(C) REPORTING
AND
RECORDKEEPING 
REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—An eligible con-
tract participant that enters into or exe-
cutes an included energy transaction that 
performs, or together with other such 
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transactions performs, a significant price 
discovery function in the cash market for 
an energy commodity or in any other mar-
ket for agreements, contracts, or trans-
actions relating to an energy commodity, 
and an eligible commercial entity that en-
ters 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 re-
quired under clause (ii); and 
‘‘(II)(aa) consistent with section 
4i, maintain books and records relat-
ing to each included energy trans-
action, for a period of at least 5 years 
after the date of the transaction, in 
such form as the Commission shall re-
quire; and 
‘‘(bb) keep the books and records 
open to inspection by any representa-
tive of the Commission or the Attor-
ney General. 
‘‘(ii) REQUIRED INFORMATION.— 
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‘‘(I) IN GENERAL.—The Commis-
sion shall require that such informa-
tion regarding included energy trans-
actions be provided to the Commission 
as the Commission considers nec-
essary to assist in detecting and pre-
venting price manipulation. 
‘‘(II) INFORMATION
TO
BE
IN-
CLUDED.—Such information shall in-
clude 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 agree-
ments or contracts related to en-
ergy commodities. 
‘‘(III) 
MANNER
OF
COMPLI-
ANCE.—The Commission shall specify 
when and how such information shall 
be provided and maintained by eligible 
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contract participants and eligible com-
mercial entities. 
‘‘(IV) PRICE DISCOVERY TRANS-
ACTIONS.— 
‘‘(aa) 
IN
GENERAL.—In 
specifying the information to be 
provided under this paragraph, 
the Commission shall identify the 
transactions or class of trans-
actions that the Commission con-
siders to perform a significant 
price discovery function. 
‘‘(bb) CONSIDERATIONS.—In 
determining which included en-
ergy transactions perform a sig-
nificant price discovery function, 
the Commission shall consider 
the extent to which— 
‘‘(AA) 
standardized 
agreements are used to exe-
cute the transactions; 
‘‘(BB) the transactions 
involve standardized types or 
measures of a commodity; 
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‘‘(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 eli-
gible commercial entity author-
izes 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 
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