Public Power Risk Management Act of 2015

Bill: 114-hr-2041
Sponsor: full_name: Rep. LaMalfa, Doug [R-CA-1]
Introduced: 2015-04-28
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: 2015-05-15
text: Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit.

Summaries:
action_date: 2015-04-28
action_desc: Introduced in House
text: <p><b>Public Power Risk Management Act of 2015</b></p> <p> 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, or anticipates owning or operating, an electric or natural gas facility or an electric or natural gas operation; (2) supplies or anticipates supplying natural gas or electric energy to another utility special entity; (3) 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 (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; </li> <li>a metal, agricultural commodity, or crude oil or gasoline commodity of any grade, except as used as fuel for electric energy generation; and </li> <li>any other commodity or category of commodities identified for this purpose in a CFTC rule or order adopted in consultation with federal and state regulatory commissions.</li> </ul>

tv_txt: 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. .