Public Power Risk Management Act of 2013

Bill: 113-hr-1038
Sponsor: full_name: Rep. LaMalfa, Doug [R-CA-1]
Introduced: 2013-03-11
Policy area: Finance and Financial Sector
Subjects: Business records

Commodities markets

Electric power generation and transmission

Energy storage, supplies, demand

Oil and gas

Public contracts and procurement

Securities
Latest action: action_date: 2013-06-13
text: Received in the Senate and Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.

Summaries:
action_date: 2013-03-11
action_desc: Introduced in House
text: <p>Public Power Risk Management Act of 2013 - Amends the Commodity Exchange Act to direct the Commodity Futures Trading Commission (CFTC), when it determines whether to provide an exemption to designation as a swap dealer, to treat a utility operations-related swap entered into with a utility special entity as if such swap were entered into with an entity that is not a special entity. (Thus exempts an entity entering into a utility operations-related swap with a utility special entity from mandatory registration as a swap dealer.)</p> <p>Requires transactions in utility operations-related swaps to be reported according to requirements for the reporting of uncleared swaps.</p> <p>Defines &quot;utility special entity&quot; as a special entity, or any instrumentality, department, or corporation of or established by a state or local government, that: (1) owns or operates an electric or natural gas facility or an electric or natural gas operation; (2) supplies natural gas or electric energy to another utility special entity; (3) has public service obligations under federal, state, or local law or regulation to deliver electric energy or natural gas service to customers; or (4) is a federal power marketing agency.</p> <p>Redefines swap to include a utility operations-related swap.</p> <p>Defines &quot;utility operations-related swap&quot; as one that: (1) is entered into to hedge or mitigate commercial risk; (2) is associated with specified transactions in electric energy or natural gas; and (3) is not a contract, agreement, or transaction based on, derived on, or referencing</p> <ul> <li>an interest rate, credit, equity, or currency asset class; or</li> <li>a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation.</li> </ul>

action_date: 2013-06-12
action_desc: Passed House without amendment
text: <p><b>(This measure has not been amended since it was introduced. The summary of that version is repeated here.)</b></p> <p>Public Power Risk Management Act of 2013 - Amends the Commodity Exchange Act to direct the Commodity Futures Trading Commission (CFTC), when it determines whether to provide an exemption to designation as a swap dealer, to treat a utility operations-related swap entered into with a utility special entity as if such swap were entered into with an entity that is not a special entity. (Thus exempts an entity entering into a utility operations-related swap with a utility special entity from mandatory registration as a swap dealer.)</p> <p>Requires transactions in utility operations-related swaps to be reported according to requirements for the reporting of uncleared swaps.</p> <p>Defines &quot;utility special entity&quot; as a special entity, or any instrumentality, department, or corporation of or established by a state or local government, that: (1) owns or operates an electric or natural gas facility or an electric or natural gas operation; (2) supplies natural gas or electric energy to another utility special entity; (3) has public service obligations under federal, state, or local law or regulation to deliver electric energy or natural gas service to customers; or (4) is a federal power marketing agency.</p> <p>Redefines swap to include a utility operations-related swap.</p> <p>Defines &quot;utility operations-related swap&quot; as one that: (1) is entered into to hedge or mitigate commercial risk; (2) is associated with specified transactions in electric energy or natural gas; and (3) is not a contract, agreement, or transaction based on, derived on, or referencing</p> <ul> <li>an interest rate, credit, equity, or currency asset class; or</li> <li>a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation.</li> </ul>

tv_txt: I 113th CONGRESS 1st Session H. R. 1038 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.

1. Short title This Act may be cited as the Public Power Risk Management Act of 2013 . 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 an electric or natural gas facility or an electric or natural gas operation; (ii) supplies natural gas and or electric energy to another utility special entity; (iii) has 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; 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, 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) all 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. . 5. Effective date The amendments made by this Act take effect as if enacted on July 21, 2010.

tv_txt: I 113th CONGRESS 1st Session H. R. 1038 IN THE HOUSE OF REPRESENTATIVES AN ACT 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 2013 . 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 an electric or natural gas facility or an electric or natural gas operation; (ii) supplies natural gas and or electric energy to another utility special entity; (iii) has 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; 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, 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) all 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. . 5. Effective date The amendments made by this Act take effect as if enacted on July 21, 2010.

Passed the House of Representatives June 12, 2013. Karen L. Haas, Clerk.

tv_txt: IIB 113th CONGRESS 1st Session H. R. 1038 IN THE SENATE OF THE UNITED STATES June 13, 2013 Received; read twice and referred to the Committee on Agriculture, Nutrition, and Forestry AN ACT 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 2013 . 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 an electric or natural gas facility or an electric or natural gas operation; (ii) supplies natural gas and or electric energy to another utility special entity; (iii) has 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; 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, 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) all 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. . 5. Effective date The amendments made by this Act take effect as if enacted on July 21, 2010.

Passed the House of Representatives June 12, 2013. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 76 113th CONGRESS 1st Session H. R. 1038 [Report No. 113–107] 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 June 12, 2013 Additional sponsors: Mr. Michaud , Mr. David Scott of Georgia , Mr. Ribble , Mr. Vargas , Mr. Conaway , Mr. McNerney , Mr. Austin Scott of Georgia , Mr. Benishek , Mr. Honda , Mr. Hastings of Washington , Ms. DelBene , Mr. Yoho , Mr. Tipton , Mr. Ross , Mr. Grayson , Mr. Jones , Mr. Crawford , Mr. Griffin of Arkansas , Mr. Hanna , Ms. Lee of California , Mr. Sherman , Mr. Gibbs , Mr. Cárdenas , Mr. McClintock , Mr. DeFazio , Ms. Matsui , Mr. Gardner , Ms. Linda T. Sánchez of California , Mr. Huffman , Ms. Brown of Florida , Mrs. Capps , Ms. Eshoo , Mr. Takano , Mrs. Ellmers , Ms. Chu , Mr. Schiff , Mrs. Hartzler , and Mr. Hudson June 12, 2013 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed 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 2013 . 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 an electric or natural gas facility or an electric or natural gas operation; (ii) supplies natural gas and or electric energy to another utility special entity; (iii) has 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; 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, 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) all 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. . 5. Effective date The amendments made by this Act take effect as if enacted on July 21, 2010.

June 12, 2013 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed