text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``End Excessive Oil Speculation Now 
  Act of 2011''.
  
  SEC. 2. ELIMINATION OF EXCESSIVE OIL SPECULATION.
  
      (a) Findings.--Congress finds that--
              (1) the national average retail price for a gallon of 
          gasoline was $3.75 on June 8, 2011;
              (2) increased gasoline prices are causing severe economic 
          pain to the American people;
              (3) Congress has a responsibility--
                      (A) to ensure that gasoline prices at the pump 
                  reflect the fundamentals of supply and demand; and
                      (B) to bring needed relief to consumers and 
                  businesses of the United States at the gas pump;
              (4) there is mounting evidence that the spike in gasoline 
          prices has--
                      (A) little to do with the fundamentals of supply 
                  and demand; and
                      (B) more to do with Wall Street speculators 
                  increasing oil and gas prices in the energy futures and 
                  swaps markets;
              (5) as of May 27, 2011--
                      (A) the supply of gasoline in the United States was 
                  higher than it was 2 years ago; and
                      (B) the demand for gasoline was lower than it was 2 
                  years ago when the national average for a gallon of 
                  regular unleaded gasoline was $2.44 a gallon;
              (6) on May 12, 2011, Exxon Mobil Chairman and Chief 
          Executive Officer, Rex Tillerson, told the Committee on Finance 
          of the Senate that oil should cost between $60 and $70 per 
          barrel, if the price of oil was based on supply and demand 
          fundamentals;
              (7) on March 21, 2011, Goldman Sachs warned clients that 
          speculators were boosting crude oil prices by as much as $27 a 
          barrel;
              (8) on March 25, 2011, Delta Airlines General Counsel, Ben 
          Hirst, said that the marginal cost of oil production is between 
          $60 to $70 a barrel;
              (9) in the summer of 2008, when gas prices rose to over $4 
          a gallon, Saudi Arabian government officials told the Federal 
          Government that speculators were responsible for increasing oil 
          prices by about $40 a barrel;
              (10) the Commodity Futures Trading Commission has the 
          authority to ensure that the price discovery for oil and 
          gasoline is based on the fundamentals of supply and demand, 
          rather than excessive speculation;
              (11) title VII of the Dodd-Frank Wall Street Reform and 
          Consumer Protection Act (15 U.S.C. 8301 et seq.) (and 
          amendments made by that Act) requires the Commission to 
          establish position limits ``to diminish, eliminate, or prevent 
          excessive speculation'' for trading in crude oil, gasoline, 
          heating oil and other physical commodity derivatives;
              (12) as of the date of introduction of this Act, the 
          Commission has failed to impose position limits to diminish, 
          eliminate, or prevent excessive oil and gasoline speculation as 
          required by law; and
              (13) the proposed position limits for derivatives that the 
          Commission included in the notice of proposed rulemaking 
          entitled ``Position Limits for Derivatives'' (76 Fed. Reg. 4752 
          (January 26, 2011)) are not scheduled to go into effect until 
          the first quarter of 2012, which would--
                      (A) occur on a date that is later than the 
                  statutory deadline for the regulations; and
                      (B) fail to diminish, eliminate, or prevent 
                  excessive speculation as required by the Dodd-Frank 
                  Wall Street Reform and Consumer Protection Act (Public 
                  Law 111-203; 124 Stat. 1376).
      (b) Elimination of Excessive Oil Speculation.--
              (1) Definitions.--In this Act:
                      (A) Bona-fide hedge trading; bona-fide hedge 
                  transaction.--The terms ``bona-fide hedge trading'' and 
                  ``bona-fide hedge transaction'' means a transaction or 
                  position that--
                              (i)(I) represents a substitute for a 
                          transaction made or to be made, or a position 
                          taken or to be taken, at a later time in a 
                          physical marketing channel;
                              (II) is economically appropriate for the 
                          reduction of risks in the conduct and 
                          management of a commercial enterprise; and
                              (III) arises from the potential change in 
                          the value of--
                                      (aa) assets that a person owns, 
                                  produces, manufactures, processes, or 
                                  merchandises or anticipates owning, 
                                  producing, manufacturing, processing, 
                                  or merchandising;
                                      (bb) liabilities that a person has 
                                  incurred or anticipates incurring; or
                                      (cc) services that a person 
                                  provides, purchases, or anticipates 
                                  providing or purchasing; or
                              (ii) reduces risks attendant to a position 
                          resulting from a swap that--
                                      (I) was executed opposite a 
                                  counterparty for which the transaction 
                                  would qualify as a bona-fide hedging 
                                  transaction; or
                                      (II) meets the requirements of 
                                  clause (i).
                      (B) Commission.--The term ``Commission'' means the 
                  Commodity Futures Trading Commission.
              (2) Duty of chairman of the commission.--Notwithstanding 
          section 2 of the Commodity Exchange Act (7 U.S.C. 2) or any 
          other provision of law (including regulations), not later than 
          14 days after the date of enactment of this Act, the Chairman 
          of the Commission shall unilaterally--
                      (A) establish 1 or more speculative position limits 
                  in any registered entity on or through which crude oil, 
                  gasoline, diesel fuel, jet fuel, or heating oil futures 
                  or swaps are traded that are equal to the position 
                  accountability levels or position limits, as 
                  appropriate, established by the New York Mercantile 
                  Exchange;
                      (B) establish 1 or more speculative position limits 
                  that are equal to the position accountability levels or 
                  position limits, as appropriate, established by the New 
                  York Mercantile Exchange on the aggregate number or 
                  amount of positions in contracts based upon the same 
                  underlying commodity that may be held by any person, 
                  including any group or class of traders, for each month 
                  across--
                              (i) contracts listed by designated contract 
                          markets;
                              (ii) with respect to an agreement, 
                          contract, or transaction that settles against 
                          any price (including the daily or final 
                          settlement price) of 1 or more contracts listed 
                          for trading on a registered entity, contracts 
                          traded on a foreign board of trade that 
                          provides members or other participants located 
                          in the United States with direct access to the 
                          electronic trading and order matching system of 
                          the foreign board of trade; and
                              (iii) swap contracts that perform or affect 
                          a significant price discovery function with 
                          respect to regulated entities;
                      (C) establish margin requirements of 12 percent for 
                  speculative swaps and futures trading in crude oil, 
                  gasoline, diesel fuel, jet fuel, and heating oil;
                      (D) require that each bank holding company, 
                  investment bank, hedge fund, or swaps dealer engaged in 
                  the trading of energy futures or swaps for the benefit 
                  of the bank holding company, investment bank, hedge 
                  fund, or swaps dealer or on the behalf of, or as 
                  counterparty to, an index fund, exchange traded fund, 
                  or other noncommercial participant--
                              (i) register with the Commission as a 
                          noncommercial participant; and
                              (ii) be subject to each position limit and 
                          margin requirement under this subsection for 
                          each position in a manner by which the position 
                          is considered to be a speculative, proprietary 
                          position of the bank holding company, 
                          investment bank, hedge fund, or swaps dealer;
                      (E) take any other action that the Chairman of the 
                  Commission determines to be necessary to eliminate 
                  excessive speculation in the aggregate to ensure that 
                  the price of crude oil, gasoline, diesel fuel, jet 
                  fuel, and heating oil accurately reflects the 
                  fundamentals of supply and demand; and
                      (F) ensure that each bank holding company, hedge 
                  fund, investment bank, and swaps dealer that is engaged 
                  in the trading of energy futures or swaps for the 
                  benefit of the bank holding company, hedge fund, 
                  investment bank, and swaps dealer, or on the behalf of, 
                  or as counterparty to, 1 or more noncommercial 
                  participants, abides by each position limit and margin 
                  requirement under this subsection.
              (3) Applicability.--Each position limit and margin 
          requirement under this subsection shall not apply to bona-fide 
          hedge trading.
              (4) Adjustments.--Notwithstanding section 2 of the 
          Commodity Exchange Act (7 U.S.C. 2) or any other provision of 
          law (including regulations), the Chairman of the Commission may 
          adjust any position limit under this subsection to the extent 
          that the position of all noncommercial participants or 
          speculators (in the aggregate and measured on an annual basis) 
          shall not equal an amount greater than 35 percent of the 
          annual, aggregate position of all traders in such futures and 
          swaps market or markets for crude oil, gasoline, diesel fuel, 
          jet fuel, and heating oil trading.
              (5) Sunset.--
                      (A) In general.--This Act, and the authority 
                  provided under this Act, shall terminate on the date on 
                  which the Commission imposes position limits to 
                  diminish, eliminate, or prevent excessive speculation 
                  as required by, and increased margin requirements as 
                  authorized in, title VII of the Dodd-Frank Wall Street 
                  Reform and Consumer Protection Act (15 U.S.C. 8301 et 
                  seq.) (and amendments made by that Act).
                      (B) Sense of congress.--It is the sense of Congress 
                  that, if finalized, the proposed position limits for 
                  derivatives that the Commission included in the notice 
                  of proposed rulemaking entitled ``Position Limits for 
                  Derivatives'' (76 Fed. Reg. 4752 (January 26, 2011)) 
                  are not sufficient to fulfill the statutory 
                  requirements of title VII of the Dodd-Frank Wall Street 
                  Reform and Consumer Protection Act (15 U.S.C. 8301 et 
                  seq.) (and amendments made by that Act) to diminish, 
                  eliminate, or prevent excessive speculation.
target: End Excessive Oil Speculation Now Act of 2011 - Directs the Chairman of the Commodity Futures Trading Commission (CFTC) to establish speculative position limits: (1) in any registered trading entity on or through which crude oil, gasoline, diesel fuel, jet fuel, or heating oil futures or swaps are traded that are equal to the position accountability levels or position limits established by the New York Mercantile Exchange (Exchange); and (2) that are equal to the position accountability levels or position limits established by such Exchange upon the aggregate number or amount of positions in contracts based upon the same underlying commodity that may be held by any person (including any group or class of traders) for each month across specified contracts, transactions, and swap contracts.
  
   Directs the Chairman to: (1) establish margin requirements of 12% for speculative swaps and futures trading in crude oil, gasoline, diesel fuel, jet fuel, and heating oil; (2) require each bank holding company, investment bank, hedge fund, or swaps dealer trading energy futures or swaps for its own benefit, or on behalf of, or as counterparty to, an index fund, exchange traded fund, or other noncommercial participant, to register with the CFTC as a noncommercial participant and be subject to position limits and margin requirements under this Act.
  
  Exempts bona-fide hedge trading from such position limits and margin requirements.
  
  Expresses the sense of Congress that, if finalized, the proposed position limits for derivatives that the CFTC included in a specified notice of proposed rulemaking do not fulfill the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act to diminish, eliminate, or prevent excessive speculation.
feat_title: To require the Chairman of the Commodity Futures Trading Commission to impose unilaterally position limits and margin requirements to eliminate excessive oil speculation, and to take other actions to ensure that the price of crude oil, gasoline, diesel fuel, jet fuel, and heating oil accurately reflects the fundamentals of supply and demand, to remain in effect until the date on which the Commission establishes position limits to diminish, eliminate, or prevent excessive speculation as required by title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and for other purposes.