I 114th CONGRESS 1st Session H. R. 2041 IN THE HOUSE OF REPRESENTATIVES April 28, 2015 Mr. LaMalfa (for himself and Mr. Costa ) 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.

1. Short title This Act may be cited as the Public Power Risk Management Act of 2015 . 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 following: (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 exempt 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 defined in section 4s(h)(2)(C). . 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 following: (D) Utility special entity For purposes of this Act, the term utility special entity means a special entity, or any instrumentality, department, or corporation of or established by a State or political subdivision of a State, that— (i) owns or operates, or anticipates owning or operating, an electric or natural gas facility or an electric or natural gas operation; (ii) supplies, or anticipates supplying, natural gas or electric energy to another utility special entity; (iii) has, or anticipates having, public service obligations under Federal, State, or local law or regulation 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 Federal Power Act. . 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-related swap; . (b) Utility operations-Related swap defined 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 referencing— (i) an interest rate, credit, equity, or currency asset class; (ii) except as used as fuel for electric energy generation, a metal, agricultural commodity, or crude oil or gasoline commodity of any grade; or (iii) any other commodity or category of commodities identified for this purpose in a rule or order adopted by the Commission in consultation with the appropriate Federal and State regulatory commissions; and (C) is associated with— (i) the generation, production, purchase, or sale of natural gas or electric energy, the supply of natural gas or electric energy to a utility, or the delivery of natural gas or electric energy service to utility customers; (ii) fuel supply for the facilities or operations of a utility; (iii) compliance with an electric system reliability obligation; (iv) compliance with an energy, energy efficiency, conservation, or renewable energy or environmental statute, regulation, or government order applicable to a utility; or (v) any other electric energy or natural gas swap to which a utility is a party. .