I 
113TH CONGRESS 
1ST SESSION H. R. 1038 
To provide equal treatment for utility special entities using utility operations- 
related 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 
A BILL 
To provide equal treatment for utility special entities using 
utility operations-related swaps, 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 ‘‘Public Power Risk 
Management Act of 2013’’. 
SEC. 2. TRANSACTIONS WITH UTILITY SPECIAL ENTITIES. 
Section 1a(49) of the Commodity Exchange Act (7 
U.S.C. 1a(49)) is amended by adding at the end the fol-
lowing: 
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‘‘(E) CERTAIN
TRANSACTIONS
WITH
A 
UTILITY SPECIAL ENTITY.— 
‘‘(i) Transactions in utility operations- 
related swaps shall be reported pursuant to 
section 4r. 
‘‘(ii) In making a determination to ex-
empt pursuant to subparagraph (D), the 
Commission shall treat a utility operations- 
related swap entered into with a utility 
special entity, as defined in section 
4s(h)(2)(D), as if it were entered into with 
an entity that is not a special entity, as de-
fined in section 4s(h)(2)(C).’’. 
SEC. 3. UTILITY SPECIAL ENTITY DEFINED. 
Section 4s(h)(2) of the Commodity Exchange Act (7 
U.S.C. 6s(h)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(D) UTILITY SPECIAL ENTITY.—For pur-
poses of this Act, the term ‘utility special enti-
ty’ means a special entity, or any instrumen-
tality, department, or corporation of or estab-
lished by a State or political subdivision of a 
State, that— 
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‘‘(i) owns or operates an electric or 
natural gas facility or an electric or nat-
ural gas operation; 
‘‘(ii) supplies natural gas and or elec-
tric energy to another utility special entity; 
‘‘(iii) has public service obligations 
under Federal, State, or local law or regu-
lation to deliver electric energy or natural 
gas service to customers; or 
‘‘(iv) is a Federal power marketing 
agency, as defined in section 3 of the Fed-
eral Power Act.’’. 
SEC. 4. UTILITY OPERATIONS-RELATED SWAP. 
(a) 
SWAP
FURTHER
DEFINED.—Section 
1a(47)(A)(iii) of the Commodity Exchange Act (7 U.S.C. 
1a(47)(A)(iii)) is amended— 
(1) by striking ‘‘and’’ at the end of subclause 
(XXI); 
(2) by adding ‘‘and’’ at the end of subclause 
(XXII); and 
(3) by adding at the end the following: 
‘‘(XXIII) a utility operations-re-
lated swap;’’. 
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(b) UTILITY
OPERATIONS-RELATED
SWAP
DE-
FINED.—Section 1a of such Act (7 U.S.C. 1a) is amended 
by adding at the end the following: 
‘‘(52) UTILITY OPERATIONS-RELATED SWAP.— 
The term ‘utility operations-related swap’ means a 
swap that— 
‘‘(A) is entered into to hedge or mitigate a 
commercial risk; 
‘‘(B) is not a contract, agreement, or 
transaction based on, derived on, or ref-
erencing— 
‘‘(i) an interest rate, credit, equity, or 
currency asset class; or 
‘‘(ii) a metal, agricultural commodity, 
or crude oil or gasoline commodity of any 
grade, except as used as fuel for electric 
energy generation; and 
‘‘(C) is associated with— 
‘‘(i) the generation, production, pur-
chase, or sale of natural gas or electric en-
ergy, the supply of natural gas or electric 
energy to a utility, or the delivery of nat-
ural gas or electric energy service to utility 
customers; 
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‘‘(ii) all fuel supply for the facilities or 
operations of a utility; 
‘‘(iii) compliance with an electric sys-
tem reliability obligation; 
‘‘(iv) compliance with an energy, en-
ergy efficiency, conservation, or renewable 
energy or environmental statute, regula-
tion, or government order applicable to a 
utility; or 
‘‘(v) any other electric energy or nat-
ural gas swap to which a utility is a 
party.’’. 
SEC. 5. EFFECTIVE DATE. 
The amendments made by this Act take effect as if 
enacted on July 21, 2010. 
Æ 
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