Gas Consumer Emergency Market Protection Act
Bill: H.R.5749 | Sponsor: Rep. Castro, Joaquin (D-TX)
Policy area: Finance and Financial Sector

Summary:
Gas Consumer Emergency Market Protection Act
This bill restricts natural gas trading during certain federal emergencies. Specifically, the Commodity Futures Trading Commission must require by rule that natural gas trading facilities impose limits to prevent market distortions in the spot market (i.e., commodities traded for immediate delivery) and the day-ahead market during such a period. Persons who violate this rule may be subject to a civil penalty of not more than $1 million per day.
Additionally, the commission must study who benefitted from natural gas price increases associated with Winter Storm Uri.

To impose natural gas trading limits during emergencies.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gas Consumer Emergency Market 
Protection Act''.

SEC. 2. IDENTIFICATION OF BENEFICIARIES OF DRAMATIC INCREASES IN 
              NATURAL GAS PRICES IN RELATION TO WINTER STORM URI.

    (a) Study.--The Commodity Futures Trading Commission shall conduct 
a study designed to reveal who benefitted from the dramatic increases 
in natural gas prices on the spot market and day-ahead markets in 
relation to Winter Storm Uri.
    (b) Report to the Congress.--Within 180 days after the date of the 
enactment of this Act, the Commodity Futures Trading Commission shall 
submit to the Congress a written report that contains the results of 
the study required by subsection (a) and includes recommendations on 
how to address similar circumstances which may arise in the future.

SEC. 3. RULEMAKING TO REQUIRE IMPOSITION OF NATURAL GAS TRADING LIMITS 
              IN THE SPOT AND DAY-AHEAD MARKETS DURING EMERGENCY.

    The Commodity Futures Trading Commission shall conduct a rulemaking 
requiring all facilities on or through which natural gas is traded on 
the spot market and the day-ahead market to impose limits on trading in 
natural gas during an emergency declared by an agency or 
instrumentality of the Federal Government, to prevent market 
distortions.

SEC. 4. PROHIBITION ON NATURAL GAS PRICE GOUGING ON SPOT OR DAY-AHEAD 
              MARKET DURING EMERGENCY.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 4t the following:

``SEC. 4U. PROHIBITION ON NATURAL GAS PRICE GOUGING ON SPOT OR DAY-
              AHEAD MARKET DURING EMERGENCY.

    ``(a) In General.--If the Commission finds, after notice and 
opportunity for hearing, that, during an emergency declared by an 
agency or instrumentality of the Federal Government, a person has sold 
or offered for sale, or has attempted to sell or offer for sale, in or 
affecting interstate or foreign commerce, on any spot or day-ahead 
market, any quantity of natural gas for a price that exceeds such 
baseline price as the Commission may establish by rule, regulation or 
order, the Commission may subject the person to a civil penalty.
    ``(b) Amount of Penalty.--The amount of a civil penalty imposed on 
a person under subsection (a) shall be not more than $1,000,000 per 
day.''.
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