HR 1985 IHCommentsClose CommentsPermalink

To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts with respect to Iran by expanding economic sanctions against Iran to include refined petroleum, and for other purposes.CommentsClose CommentsPermalink

April 21, 2009CommentsClose CommentsPermalink

Mr. KIRK (for himself, Mr. SHERMAN, Mr. WEXLER, Mr. KLEIN of Florida, Mr. BLUNT, Mr. MCMAHON, Mr. LOBIONDO, Mr. CHAFFETZ, Mr. LINDER, Ms. KOSMAS, Mr. SCHOCK, Mr. BURTON of Indiana, Ms. FOXX, Mr. SENSENBRENNER, Mr. MARCHANT, Mr. LAMBORN, Mrs. MILLER of Michigan, Ms. BERKLEY, Mr. BILIRAKIS, Mrs. MYRICK, Mr. MCHENRY, Mr. REHBERG, Mr. GARRETT of New Jersey, Mr. PLATTS, and Mr. SHIMKUS) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Oversight and Government Reform, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts with respect to Iran by expanding economic sanctions against Iran to include refined petroleum, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Iran Diplomatic Enhancement Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

The Congress finds the following:CommentsClose CommentsPermalink





(1) The Islamic Republic of Iran is a party to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).CommentsClose CommentsPermalink





(2) Iran is a member of the International Atomic Energy Agency (IAEA).CommentsClose CommentsPermalink





(3) On July 31, 2006, the United Nations Security Council (UNSC) adopted Resolution 1696, setting a deadline of August 31, 2006, for Iran’s full, unconditional, and immediate compliance with its obligations under the NPT.CommentsClose CommentsPermalink





(4) Iran is in violation of UNSC Resolution 1696.CommentsClose CommentsPermalink





(5) On December 23, 2006, the UNSC adopted Resolution 1737, issuing a legally binding order that Iran immediately suspend all enrichment-related and reprocessing activities and work on all heavy water-related projects, and imposing economic sanctions on Iran until such time as it has fully complied with its obligations.CommentsClose CommentsPermalink





(6) Iran is in violation of UNSC Resolution 1737.CommentsClose CommentsPermalink





(7) On March 24, 2007, the UNSC adopted Resolution 1747, imposing further economic sanctions on Iran for its noncompliance with previous UNSC resolutions.CommentsClose CommentsPermalink





(8) Iran is in violation of UNSC Resolution 1747.CommentsClose CommentsPermalink





(9) On March 3, 2008, the UNSC adopted Resolution 1803, imposing further economic sanctions on Iran for its noncompliance with previous UNSC resolutions.CommentsClose CommentsPermalink





(10) Iran is in violation of UNSC Resolution 1803.CommentsClose CommentsPermalink





(11) On September 27, 2008, the UNSC adopted Resolution 1835, demanding that Iran immediately comply with previous UNSC resolutions.CommentsClose CommentsPermalink





(12) Iran is in violation of UNSC 1835.CommentsClose CommentsPermalink





(13) According to the IAEA, Iran has installed 2 or 3 types of next-generation centrifuges at Natanz FEP, including the IR-2 and the IR-3.CommentsClose CommentsPermalink





(14) On October 26, 2008, IAEA inspectors were unable to carry out a scheduled design information verification visit to the Arak Heavy Water Reactor.CommentsClose CommentsPermalink





(15) According to the IAEA, as of January 31, 2009, Iran had produced a total of some 1,010 kilograms of low enriched uranium hexafluoride, which is 30 percent higher than IAEA estimates and sufficient for a nuclear weapons breakout capability.CommentsClose CommentsPermalink





(16) According to the IAEA’s February 19, 2009, report, Iran had installed more than 5,400 centrifuges.CommentsClose CommentsPermalink





(17) According to the IAEA’s February 19, 2009, report, Iran is producing fuel rods containing uranium pellets for its IR-40 heavy water reactor.CommentsClose CommentsPermalink





(18) According to the IAEA, the IAEA sought and was denied permission by Iran to visit the reactor itself in February 2009, which, according to the IAEA, ‘could adversely impact the IAEA’s ability to carry out effective safeguards at that facility’.CommentsClose CommentsPermalink





(19) As evidenced by the February 3, 2009, launch of the Omid satellite into space using the Safir 2-stage space launch vehicle, Iran continues to expand its development of ballistic missiles.CommentsClose CommentsPermalink





(20) According to the IAEA, as of its February 19, 2009, report, Iran has not answered IAEA questions ‘about possible military dimensions of Iran’s nuclear programme’.CommentsClose CommentsPermalink





(21) Up to 40 percent of Iranian gasoline comes from imports.CommentsClose CommentsPermalink





(22) Over the course of the past year, Iran purchased nearly all of this gasoline from just six companies, five of them European (the Swiss firm Vitol; the Swiss/Dutch firm Trafigura; the French firm Total; the Swiss firm Glencore; British Petroleum) and one Indian company, Reliance Industries.CommentsClose CommentsPermalink





(23) In February 2009, Vitol and Trafigura supplied some 80 percent of Iran’s gasoline imports, while Reliance Industries and British Petroleum reportedly did not supply gasoline to Iran that month.CommentsClose CommentsPermalink





(24) In light of the extensive relationship between the United States and Switzerland, it is a matter of particular concern that Swiss firms supply more than 80 percent of Iran’s gasoline imports.CommentsClose CommentsPermalink





(25) The majority of tankers carrying gasoline to Iran are insured by Lloyds of London.CommentsClose CommentsPermalink





(26) An interruption or significant limiting of the supply of gasoline to Iran would considerably impact the Iranian economy.CommentsClose CommentsPermalink





(27) An international restriction of gasoline exports to Iran would significantly bolster current diplomatic initiatives.CommentsClose CommentsPermalink





(28) On June 4, 2008, then-Senator Barack Obama said, ‘we should work with Europe, Japan, and the Gulf states to find every avenue outside the U.N. to isolate the Iranian regime--from cutting off loan guarantees and expanding financial sanctions, to banning the export of refined petroleum to Iran’.CommentsClose CommentsPermalink





(29) On October 7, 2008, then-Senator Barack Obama said, ‘Iran right now imports gasoline . . . if we can prevent them from importing the gasoline that they need . . . that starts changing their cost-benefit analysis. That starts putting the squeeze on them.’.CommentsClose CommentsPermalink

SEC. 3. AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996.

(a) Expansion of Sanctions to Refined Petroleum- Section 5(a) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended to read as follows:CommentsClose CommentsPermalink





‘(a) Sanctions With Respect to the Development of Petroleum Resources of Iran and Export of Refined Petroleum Resources to Iran- Except as provided in subsection (f), the President shall impose 2 or more of the sanctions described in paragraphs (1) through (6) of section 6 if the President determines that a person has, with actual knowledge--CommentsClose CommentsPermalink





‘(1)(A) on or after the date of the enactment of this Act, made an investment of $40,000,000 or more (or any combination of investments of at least $10,000,000 each, which in the aggregate equals or exceeds $40,000,000 in any 12-month period), that directly and significantly contributed to the enhancement of Iran’s ability to develop petroleum resources of Iran; orCommentsClose CommentsPermalink





‘(B) on or after the date of the enactment of the Iran Diplomatic Enhancement Act of 2009, made an investment of $20,000,000 or more (or any combination of investments of at least $5,000,000 each, which in the aggregate equals or exceeds $20,000,000 in any 12-month period), that directly and significantly contributed to the enhancement of Iran’s ability to develop petroleum resources of Iran; orCommentsClose CommentsPermalink





‘(2) on or after the date of the enactment of the Iran Diplomatic Enhancement Act of 2009--CommentsClose CommentsPermalink





‘(A) provided Iran with refined petroleum resources;CommentsClose CommentsPermalink





‘(B) engaged in an activity, including production, brokerage, insurance, and tanker delivery services, that could contribute to Iran’s ability to import refined petroleum resources; orCommentsClose CommentsPermalink





‘(C) provided Iran with goods, services, or technology for refining petroleum.’.CommentsClose CommentsPermalink





(b) International Policy- Section 4 of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(g) United States Policy Toward Iran- It shall be the policy of the United States to encourage foreign governments--CommentsClose CommentsPermalink





‘(1) to direct state-owned entities to cease all investment in Iran’s energy sector and all exports of refined petroleum resources to Iran; andCommentsClose CommentsPermalink





‘(2) to persuade, and, where possible, require private entities based in their territories to cease all investment in Iran’s energy sector and all exports of refined petroleum resources to Iran.’.CommentsClose CommentsPermalink





(c) Presidential Waiver- Section 9(c)(2)(C) of such Act is amended by striking ‘section 5(a) or section 5(b) to Iran’s ability to, respectively, develop its petroleum resources or its weapons of mass destruction or other military capabilities’ and inserting ‘section 5(a)(1), section 5(a)(2), or section 5(b) to Iran’s ability to, respectively, develop its petroleum resources, import refined petroleum resources or refine petroleum, or develop its weapons of mass destruction or other military capabilities’.CommentsClose CommentsPermalink





(d) Reports on United States Efforts To Curtail the Export of Refined Petroleum to Iran- Section 10 of such Act is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(d) Reports on Refined Petroleum Exports to Iran-CommentsClose CommentsPermalink





‘(1) SEMIANNUAL REPORTS- Not later than 6 months after the date of the enactment of the Iran Diplomatic Enhancement Act of 2009, and every 6 months thereafter, the President shall transmit to the appropriate congressional committees a report describing, with respect to the preceding 6-month period--CommentsClose CommentsPermalink





‘(A) any person that has provided Iran with refined petroleum resources, and the petroleum resources so provided;CommentsClose CommentsPermalink





‘(B) any activity, including production, brokerage, insurance, and tanker delivery services, engaged in that could contribute to Iran’s ability to import refined petroleum resources;CommentsClose CommentsPermalink





‘(C) any person that has provided Iran with goods, services, or technology for refining petroleum, and the goods, services, or technology so provided; andCommentsClose CommentsPermalink





‘(D) steps taken by the President to carry out the policy set forth in section 4(g).CommentsClose CommentsPermalink





‘(2) ADDITIONAL INFORMATION- With respect to each matter reported under subparagraph (A), (B), or (C) of paragraph (1), the President shall describe the steps that the United States has taken to respond to the provision of refined petroleum resources described in paragraph (1)(A), the activity described in paragraph (1)(B), or the provision of goods, services, or technology described in paragraph (1)(C), as the case may be.’.CommentsClose CommentsPermalink