Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. JURISDICTION OF THE COMMODITY FUTURES TRADING COMMISSION
OVER ENERGY TRADING MARKETS.

(a) Repeal of Definition of Exempt Commodity.--Section 1a of the
Commodity Exchange Act (7 U.S.C. 1a) is amended by striking paragraph
(14) and inserting the following:
''(14) [Repealed.]''.
(b) FERC Liaison.--Section 2(a)(8) of the Commodity Exchange Act (7
U.S.C. 2(a)(8)) is amended by adding at the end the following:
''(C) FERC liaison.--The Commission shall, in
cooperation with the Federal Energy Regulatory
Commission, maintain a liaison between the Commission
and the Federal Energy Regulatory Commission.''.
(c) Exempt Transactions.--Section 2 of the Commodity Exchange Act
(7 U.S.C. 2) is amended by striking subsection (g) and inserting the
following:
''(g) Exempt Transactions.--
''(1) Applicability.--
''(A) In general.--Except as provided in
subparagraph (B), this Act shall not apply to any
agreement, contract, or transaction in a commodity
other than an agricultural commodity if the agreement,
contract, or transaction--
''(i) is between persons that are eligible
contract participants at the time at which the
agreement, contract, or transaction is entered
into;
''(ii) is subject to individual negotiation
by the parties to the agreement, contract, or
transaction; and
''(iii) is not executed or traded on a
trading facility.
''(B) Exceptions.--An agreement, contract, or
transaction described in subparagraph (A) shall be
subject to--
''(i) sections 4b, 4c(b), 4o, and 5b;
''(ii) subsections (c) and (d) of section
6, 6c, 6d, and 8a, to the extent that those
provisions--
''(I) provide for the enforcement
of the requirements specified in this
paragraph and paragraphs (2), (3), and
(4); and
''(II) prohibit the manipulation of
the market price of any commodity in
interstate commerce or for future
delivery on or subject to the rules of
any contract market;
''(iii) sections 6c, 6d, 8a, and 9(a)(2),
to the extent that those provisions prohibit
the manipulation of the market price of any
commodity in interstate commerce or for future
delivery on or subject to the rules of any
contract market;
''(iv) section 12(e)(2); and
''(v) section 22(a)(4).
''(2) Eligible trading facilities and systems.--
''(A) In general.--A person or group of persons
that constitutes, maintains, administers, or provides a
physical or electronic facility or system in which a
person has the ability to offer, execute, trade, or
confirm the execution of an agreement, contract, or
transaction by making or accepting the bids and offers
of all other participants on the facility or system
(including facilities or systems described in clauses
(i) and (iii) of section 1a(33)(B)), may offer to enter
into, enter into, or confirm the execution of any
agreement, contract, or transaction under paragraph (1)
if the person or group of persons meets the requirement
of subparagraph (B).
''(B) Requirement.--The requirement of this
subparagraph is that a person or group of persons
described in subparagraph (A) shall--
''(i) register with the Commission in any
capacity that the Commission requires by rule,
regulation, or order;
''(ii) file with the Commission any reports
(including large trader position reports) that
the Commission requires by rule, regulation, or
order;
''(iii) maintain sufficient net capital, as
determined by the Commission; and
''(iv)(I) maintain books and records
consistent with section 4i; and
''(II) make those books and records
available to representatives of the Commission
and the Department of Justice for inspection at
all times.
''(3) Reporting requirements.--An eligible contract
participant that enters into an agreement, contract, or
transaction exempt under paragraph (1) shall--
''(A) file with the Commission any reports that the
Commission may require by rule, regulation, or order;
and
''(B)(i) maintain books and records consistent with
section 4i; and
''(ii) make those books and records available to
representatives of the Commission and the Department of
Justice for inspection at all times.
''(4) Transactions exempted by commission action.--Any
agreement, contract, or transaction under paragraph (1) that
would otherwise be exempted by the Commission under section
4(c) shall be subject to--
''(A) sections 4b, 4c(b), and 4o; and
''(B) subsections (c) and (d) of section 6, 6c, 6d,
8a, and 9(a)(2), to the extent that those provisions
prohibit the manipulation of the market price of any
commodity in interstate commerce or for future delivery
on or subject to the rules of any contract market.
''(5) Effect.--This subsection does not affect the power of
the Federal Energy Regulatory Commission to regulate
transactions described in paragraph (1) under the Federal Power
Act (16 U.S.C. 791a et seq.).''.
(d) Repeal of Guidelines for Transactions in Exempt Commodities.--
Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended--
(1) by striking subsection (h); and
(2) by redesignating subsection (i) as subsection (i).
(e) Contracts Designed to Defraud or Mislead.--Section 4b of the
Commodity Exchange Act (7 U.S.C. 6b) is amended by striking subsection
(a) and inserting the following:
''(a) Prohibition.--It shall be unlawful--
''(1) for any member of a contract market, or for any
correspondent, agent, or employee of any member, in or in
connection with any order to make, or the making of, any
contract of sale commodity in interstate commerce, made, or to
be made on or subject to the rules of any contract market; or
''(2) for any person, in or in connection with any order to
make, or the making of, any agreement, transaction, or contract
in a commodity subject to the provisions of this Act--
''(A) to cheat or defraud or attempt to cheat or
defraud the other person;
''(B) willfully to make or cause to be made to the
other person any false report or statement, or
willfully to enter or cause to be entered for the other
person any false record;
''(C) willfully to deceive or attempt to deceive
the other person by any means in regard to any order or
contract or the disposition or execution of the order
or contract, or in regard to any act of agency
performed with respect to the order or contract for the
other person; or
''(D) to bucket the order, or to fill the order by
offset against the order of any other person, or
willfully, knowingly, and without the prior consent of
the other person to become the buyer in respect to any
selling order of the other person, or to become the
seller in respect to any buying order of the other
person.''.
(f) Conforming Amendments.--The Commodity Exchange Act is amended--
(1) in section 2(e) (7 U.S.C. 2(e))--
(A) in paragraph (1), by striking '', 2(g), or
2(h)(3)'';
(B) in paragraph (2), by striking '', or operating
as an exempt board of trade'';
(C) by striking paragraph (3); and
(D) by redesignating paragraph (4) as paragraph
(3);
(2) in section 2(h) (7 U.S.C. 2(h)) (as redesignated by
subsection (d)), by striking ''2(h) or'';
(3) in section 4i (7 U.S.C. 6i)--
(A) by striking ''any contract market or'' and
inserting ''any contract market,''; and
(B) by inserting '', or pursuant to an exemption
under section 4(c)'' after ''transaction execution
facility'';
(4) in section 5a(g)(1) (7 U.S.C. 7a(g)(1)), by striking
'', or exempt under section 2(h) of this Act'';
(5) in section 5b (7 U.S.C. 7a-1)--
(A) in subsection (a)(1), by striking ''2(h) or'';
and
(B) in subsection (b), by striking ''2(h) or''; and
(6) in section 12(e)(2)(B) (7 U.S.C. 16(e)(2)(B)), by
striking ''2(h) or''.

SEC. 2. RECRUITMENT AND RETENTION OF QUALIFIED PERSONNEL AT THE FEDERAL
ENERGY REGULATORY COMMISSION.

Section 401(c) of the Department of Energy Organization Act (42
U.S.C. 7171(c)) is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (1), (3), (4), and (5) as
subparagraphs (A), (B), (C), and (D), respectively;
(3) by striking ''(c) The Chairman'' and inserting the
following:
''(c) Administration.--
''(1) In general.--The Chairman''; and
(4) by adding at the end the following:
''(2) Personnel matters.--
''(A) In general.--The Chairman may--
''(i) appoint, prescribe the duties, and
fix the salaries of an executive director, a
secretary, a chief engineer, a general counsel,
a solicitor, and a chief accountant; and
''(ii) subject to the civil service laws--
''(I) appoint any other officers
and employees that are necessary in the
execution of the duties of the
Commission; and
''(II) fix the salaries of any
officer or employee appointed under
subclause (I).
''(B) Compensation.--
''(i) In general.--Rates of basic pay for
all employees of the Commission may be set and
adjusted by the Chairman without regard to the
provisions of chapter 51 or subchapter III of
chapter 53 of title 5, United States Code.
''(ii) Additional compensation.--The
Chairman may provide additional compensation
and benefits to employees of the Commission if
the same type and amounts of compensation or
benefits are or are authorized to be provided
by any other Federal agency under applicable
provisions of law (including regulations).
''(iii) Comparability.--In setting and
adjusting the total amount of compensation and
benefits for employees under this paragraph,
the Chairman shall consult with, and seek to
maintain comparability with, other Federal
agencies.
''(C) Early retirement.--The Chairman may offer
early out retirement and voluntary separation incentive
payments, as appropriate.
''(D) Recruitment.--The Chairman may use modified
hiring delegation authorities to recruit for positions
at all grade levels that are difficult to fill,
including economists, engineers, accountants, auditors,
and energy, market, and financial analysts.
''(E) Merit system principles.--This paragraph
shall be administered consistent with merit system
principles.
''(F) Consultation with OPM.--In carrying out this
paragraph, the Chairman shall consult with the Director
of the Office of Personnel Management.''.

SEC. 3. JURISDICTION OF THE FEDERAL ENERGY REGULATORY COMMISSION OVER
ENERGY TRADING MARKETS.

Section 402 of the Department of Energy Organization Act (42 U.S.C.
7172) is amended by adding at the end the following:
''(i) Jurisdiction Over Derivatives Transactions.--
''(1) Definitions.--In this subsection:
''(A) Derivatives transaction.--
''(i) In general.--The term 'derivatives
transaction' means a transaction based on, or
reflecting prices of or for, electric energy or
natural gas.
''(ii) Inclusions.--The term 'derivatives
transaction' includes--
''(I) futures;
''(II) options;
''(III) forwards; and
''(IV) swaps.
''(iii) Exclusions.--The term 'derivatives
transaction' does not include a derivatives
transaction that is--
''(I) under the exclusive
jurisdiction of the Commodity Futures
Trading Commission; or
''(II) concerns a retail sale of
electric energy or natural gas and is
under the exclusive jurisdiction of a
State.
''(B) Person.--The term 'person' has the meaning
given the term in section 1a of the Commodity Exchange
Act (7 U.S.C. 1a).
''(2) Jurisdiction.--The Commission shall have jurisdiction
over--
''(A) derivatives transactions;
''(B) any person that makes a derivatives
transaction; and
''(C) any entity that operates an electronic forum
in which persons make derivatives transactions.
''(3) Authorities and duties.--
''(A) In general.--The authorities and duties of
the Commission under this subsection with respect to
derivatives transactions shall be the same as the
authorities and duties of the Commission under--
''(i) sections 205 and 206 and part III of
the Federal Power Act (16 U.S.C. 824d, 824e,
825 et seq.); and
''(ii) sections 4 and 5 of the Natural Gas
Act (15 U.S.C. 717c, 717d).
''(B) Meetings.--The Commission shall meet
quarterly with the Commodity Futures Trading
Commission, the Securities Exchange Commission, the
Federal Trade Commission, and the Federal Reserve Board
to discuss--
''(i) conditions and events in energy
trading markets; and
''(ii) any changes in Federal law
(including regulations) that may be appropriate
to regulate energy trading markets.
''(C) Report.--Not later than the date that is 1
year after the date of enactment of this subsection and
annually thereafter, the Commission shall submit to
Congress a report that describes the activities of the
Commission relating to the regulation of derivatives
under this subsection during the preceding year.
''(4) Rights and obligations.--Persons and entities
regulated under this subsection shall have the same rights and
obligations as persons regulated by the Commission under
sections 205 and 206 and part III of the Federal Power Act (16
U.S.C. 824d, 824e, 825 et seq.).
''(5) Liaison.--The Commission shall, in cooperation with
the Commodity Futures Trading Commission, maintain a liaison
between the Commission and the Commodity Futures Trading
Commission.
''(6) Rates.--It shall be unlawful to make, demand, or
receive rates and charges for or in connection with derivatives
transactions that are unjust, unreasonable, discriminatory, or
preferential.''.
Solution:
Amends the Commodity Exchange Act to repeal: (1) the definition of "exempt commodity"; and (2) the guidelines governing transactions in exempt commodities (thus subjecting to CFTC regulatory oversight formerly exempt commodity transactions).Directs the Commodity Futures Trading Commission (CFTC) to maintain a liaison with the Federal Energy Regulatory Commission (FERC).Subjects formerly exempt swap transactions to: (1) CFTC enforcement jurisdiction; and (2) CFTC proscriptions against manipulation of commodity market prices.Requires eligible trading facilities and systems to comply with CFTC regulations pertaining to: registration, reporting, recordkeeping, and net capital reserves.Expands the prohibition against fraudulent or misleading contracts to include any member of a contract market (currently any member of a registered entity).Amends the Department of Energy Organization Act with respect to the recruitment and retention of qualified personnel at FERC. Grants FERC jurisdiction over: (1) energy trading markets; (2) derivatives transactions reflecting electric energy or natural gas prices (including futures, options, forwards and swaps); (3) any person that makes a derivatives transaction; and (4) any operator of an electronic forum in which derivatives transaction are made.