I 
111TH CONGRESS 
1ST SESSION H. R. 2869 
To require the Commodity Futures Trading Commission to take certain 
actions to prevent the manipulation of energy markets, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 15, 2009 
Mr. DEFAZIO (for himself and Mr. WELCH) introduced the following bill; 
which was referred to the Committee on Agriculture 
A BILL 
To require the Commodity Futures Trading Commission to 
take certain actions to prevent the manipulation of en-
ergy markets, and for other purposes. 
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 ‘‘Energy Market Manip-
ulation Prevention Act’’. 
SEC. 2. ENERGY MARKET MANIPULATION PREVENTION. 
(a) FINDINGS.—Congress finds that— 
(1) in 1974, the Commodity Futures Trading 
Commission (referred to in this Act as the ‘‘Com-
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mission’’) was established as an independent agency 
with a mandate— 
(A) to enforce and administer the Com-
modity Exchange Act (7 U.S.C. 1 et seq.); 
(B) to ensure market integrity; 
(C) to protect market users from fraud 
and abusive trading practices; and 
(D) to prevent and prosecute manipulation 
of the price of any covered commodity in inter-
state commerce; 
(2) Congress has given the Commission author-
ity under the Commodity Exchange Act (7 U.S.C. 1 
et seq.) to take necessary actions to address market 
emergencies; 
(3) the Commission may use the emergency au-
thority of the Commission with respect to any major 
market disturbance that prevents the market from 
accurately reflecting the forces of supply and de-
mand for a covered commodity; 
(4) in section 4a(a) of the Commodity Ex-
change Act (7 U.S.C. 6a(a)), Congress has declared 
that excessive speculation imposes an undue and un-
necessary burden on interstate commerce; 
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(5) in May 2009, crude oil inventories in the 
United States were at the highest level of crude oil 
inventories on record; 
(6) in May 2009, demand for oil in the United 
States dropped to the lowest level of demand in 
more than a decade; 
(7) the national average price of a gallon of 
gasoline has jumped from $1.64 per gallon in late 
December of 2008 to over $2.61 per gallon as of 
June 8, 2009; 
(8) crude oil prices have increased by over 70 
percent since the middle of January 2009; and 
(9) in May 2009, the International Energy 
Agency predicted that global demand for oil will de-
crease in 2009 to the lowest level of demand since 
1981. 
(b) DUTIES OF COMMISSION.—The Commission shall 
use the authority of the Commission, including the emer-
gency authority of the Commission— 
(1) to curb immediately the role of excessive 
speculation in any contract market— 
(A) that is within the jurisdiction and con-
trol of the Commission; and 
(B) on or through which energy futures or 
swaps are traded; 
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(2) to eliminate excessive speculation, price dis-
tortion, sudden or unreasonable fluctuations or un-
warranted changes in prices, or other unlawful activ-
ity that causes major market disturbances that pre-
vent the market from accurately reflecting the forces 
of supply and demand for energy commodities; 
(3) to classify immediately each bank holding 
company that engages in energy futures trading as 
a noncommercial participant, and subject the bank 
holding company to strict position limits; 
(4) to require immediately that each hedge fund 
engaged in the trading of energy futures for the 
hedge fund, or on behalf of a client of the hedge 
fund— 
(A) to register with the Commission as a 
noncommercial participant; and 
(B) to be subject to strict speculation lim-
its; 
(5) to eliminate conflicts of interest that may 
arise in situations during which 1 entity owns or 
controls a unit that is— 
(A) designed to predict the future price of 
oil; 
(B) engaged in the operations of oil assets, 
including pipelines and storage facilities; and 
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