S 908 ISCommentsClose 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.CommentsClose CommentsPermalink

April 28, 2009CommentsClose CommentsPermalink

Mr. BAYH (for himself, Mr. KYL, Mr. LIEBERMAN, Ms. MIKULSKI, Mr. WYDEN, Mr. VITTER, Mr. BURR, Mr. FEINGOLD, Mr. THUNE, Ms. STABENOW, Mr. MENENDEZ, Ms. COLLINS, Mr. BROWNBACK, Mr. JOHANNS, Mrs. BOXER, Mr. CARDIN, Mr. RISCH, Mrs. MURRAY, Mr. GRAHAM, Ms. LANDRIEU, Mr. SCHUMER, Mr. BOND, Mr. INHOFE, Ms. KLOBUCHAR, and Mr. COBURN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose 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.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 Refined Petroleum Sanctions Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS; SENSE OF CONGRESS.

(a) Findings- Congress finds the following:CommentsClose CommentsPermalink





(1) The illicit nuclear activities of the Government of Iran represent a serious threat to the security of the United States and our allies in Europe, the Middle East, and around the world.CommentsClose CommentsPermalink





(2) The United States and the international community have a vital interest in working together to prevent the Government of Iran from acquiring a nuclear weapons capability.CommentsClose CommentsPermalink





(3) The international community, acting through the International Atomic Energy Agency and the United Nations, has already adopted a range of sanctions designed to encourage the Government of Iran to cease its unlawful nuclear activities and comply with its obligations under the Treaty on Non-Proliferation of Nuclear Weapons (commonly known as the ‘Nuclear Non-Proliferation Treaty’).CommentsClose CommentsPermalink





(4) As a presidential candidate, then-Senator Obama stated that additional sanctions, especially those targeting Iran’s dependence on imported refined petroleum, may help to persuade the Government of Iran to abandon its illicit nuclear activities.CommentsClose CommentsPermalink





(5) On October 7, 2008, then-Senator Obama stated, ‘Iran right now imports gasoline, even though it’s an oil producer, because its oil infrastructure has broken down. If we can prevent them from importing the gasoline that they need and the refined petroleum products, that starts changing their cost-benefit analysis. That starts putting the squeeze on them.’.CommentsClose CommentsPermalink





(6) On June 4, 2008, then-Senator Obama stated, ‘We should work with Europe, Japan, and the Gulf states to find every avenue outside the UN 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





(7) Our allies in the international community have expressed support for additional sanctions should the Government of Iran fail to verifiably suspend its illicit nuclear activities.CommentsClose CommentsPermalink





(8) On March 17, 2009, British Prime Minister Gordon Brown stated, ‘[L]et me be equally clear that Iran’s current nuclear program is unacceptable. Iran has concealed nuclear activities, refused to cooperate with the IAEA, and flouted UN Security Council Resolutions. Its refusal to play by the rules leads us to view its nuclear program as a critical proliferation threat. Iran therefore faces a clear choice--continue in this way and face further and tougher sanctions, or change to a UN overseen civil nuclear energy program that will bring the greatest benefits to its citizens.’.CommentsClose CommentsPermalink





(9) On February 7, 2009, British Foreign Secretary David Miliband stated, ‘We welcome US willingness to talk to Iran. But if Iran doesn’t respond we will need to be ready to impose much tougher sanctions, even if that imposes costs on us here in Europe. In this instance, nuclear security must come above commercial interests.’.CommentsClose CommentsPermalink





(10) On February 7, 2009, German Chancellor Angela Merkel stated, ‘Let me be quite clear. We have offered to enter into negotiations with Iran and we want a diplomatic solution. These offers are on the table. . . . We’re prepared to travel along this road together, but we are also prepared to consider tougher sanctions should there be no progress. It’s imperative that we prevent Iran from acquiring nuclear weapons.’.CommentsClose CommentsPermalink





(11) On June 23, 2008, French President Nicolas Sarkozy stated, ‘So that things are clear and there is no ambiguity, I want to say that Iran’s military nuclear program demands an extremely firm response by the entire international community. . . . France is determined to pursue with her partners a policy of increasingly tough sanctions until there is a shift in position.’.CommentsClose CommentsPermalink





(12) The serious and urgent nature of the threat from Iran demands that the United States work together with our allies to do everything possible--diplomatically, politically, and economically--to prevent Iran from acquiring a nuclear weapons capability.CommentsClose CommentsPermalink





(b) Sense of Congress- It is the sense of the Congress that--CommentsClose CommentsPermalink





(1) the United States should continue to support diplomatic efforts in the International Atomic Energy Agency and the United Nations Security Council to end Iran’s illicit nuclear activities;CommentsClose CommentsPermalink





(2) diplomatic efforts with Iran are more likely to be effective if the President is empowered with the explicit authority to impose additional sanctions on the Government of Iran;CommentsClose CommentsPermalink





(3) it should be the policy of the United States to encourage foreign governments to direct state-owned entities to cease all investment in, and support of, Iran’s energy sector and all exports of refined petroleum products to Iran;CommentsClose CommentsPermalink





(4) it should be the policy of the United States to encourage foreign governments to require private entities based in their territories to cease all investment in, and support of, Iran’s energy sector and all exports of refined petroleum products to Iran;CommentsClose CommentsPermalink





(5) the President is urged to impose sanctions on the Central Bank of Iran and any other Iranian bank or financial institution engaged in proliferation activities or support of terrorist groups;CommentsClose CommentsPermalink





(6) the Department of the Treasury should continue to work with our allies to take appropriate measures to protect the international financial system from deceptive and illicit practices by Iranian banks and financial institutions involved in proliferation activities or support of terrorist groups;CommentsClose CommentsPermalink





(7) the concerns of the United States regarding Iran are strictly the result of the actions of the Government of Iran; andCommentsClose CommentsPermalink





(8) the people of the United States--CommentsClose CommentsPermalink





(A) have feelings of friendship for the people of Iran;CommentsClose CommentsPermalink





(B) regret that developments in recent decades have created impediments to that friendship; andCommentsClose CommentsPermalink





(C) hold the people of Iran, their culture, and their ancient and rich history in the highest esteem.CommentsClose CommentsPermalink

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

(a) Expansion of Sanctions- 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 Exportation of Refined Petroleum to Iran-CommentsClose CommentsPermalink





‘(1) DEVELOPMENT OF PETROLEUM RESOURCES OF IRAN-CommentsClose CommentsPermalink





‘(A) INVESTMENT- 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(a) if the President determines that a person has, with actual knowledge, on or after the date of this Act, 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.CommentsClose CommentsPermalink





‘(B) PRODUCTION OF REFINED PETROLEUM RESOURCES- Except as provided in subsection (f), the President shall impose the sanctions described in section 6(b) (in addition to any sanctions imposed under subparagraph (A)) if the President determines that a person has, with actual knowledge, on or after the date of the enactment of the Iran Refined Petroleum Sanctions Act, sold, leased, or provided to Iran any goods, services, technology, information, or support that would allow Iran to maintain or expand its domestic production of refined petroleum resources, including any assistance in refinery construction, modernization, or repair.CommentsClose CommentsPermalink





‘(2) EXPORTATION OF REFINED PETROLEUM RESOURCES TO IRAN- Except as provided in subsection (f), the President shall impose the sanctions described in section 6(b) if the President determines that a person has, with actual knowledge, on or after the date of the enactment of the Iran Refined Petroleum Sanctions Act, provided Iran with refined petroleum resources or engaged in any activity that could contribute to the enhancement of Iran’s ability to import refined petroleum resources, including--CommentsClose CommentsPermalink





‘(A) providing ships or shipping services to deliver refined petroleum resources to Iran;CommentsClose CommentsPermalink





‘(B) underwriting or otherwise providing insurance or reinsurance for such activity; orCommentsClose CommentsPermalink





‘(C) financing or brokering such activity.’.CommentsClose CommentsPermalink





(b) Description of Sanctions- Section 6 of such Act is amended--CommentsClose CommentsPermalink





(1) by striking ‘The sanctions to be imposed on a sanctioned person under section 5 are as follows:’ and inserting the following:CommentsClose CommentsPermalink





‘(a) In General- The sanctions to be imposed on a sanctioned person under subsections (a)(1)(A) and (b) of section 5 are as follows:’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(b) Additional Sanctions- The sanctions to be imposed on a sanctioned person under paragraphs (1)(B) and (2) of section 5(a) are as follows:CommentsClose CommentsPermalink





‘(1) FOREIGN EXCHANGE- The President shall, under such regulations as the President may prescribe, prohibit any transactions in foreign exchange by the sanctioned person.CommentsClose CommentsPermalink





‘(2) BANKING TRANSACTIONS- The President shall, under such regulations as the President may prescribe, prohibit any transfers of credit or payments between, by, through, or to any financial institution, to the extent that such transfers or payments involve any interest of the sanctioned person.CommentsClose CommentsPermalink





‘(3) PROPERTY TRANSACTIONS- The President shall, under such regulations as the President may prescribe, prohibit any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation, or exportation of, dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which the sanctioned person has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States.’.CommentsClose CommentsPermalink





(c) Presidential Waiver- Section 9(c)(2) of such Act is amended by amending subparagraph (C) to read as follows:CommentsClose CommentsPermalink





‘(C) an estimate of the significance of the provision of the items described in paragraph (1) or (2) of section 5(a) or section 5(b) to Iran’s ability to develop its petroleum resources, enhance its ability to import refined petroleum resources, or develop its weapons of mass destruction or other military capabilities (as the case may be); and’.CommentsClose CommentsPermalink





(d) Reports on United States Efforts To Curtail Certain Business Transactions Relating to Iran- Section 10 of such Act is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(d) Reports on Certain Business Transactions Relating to Iran-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 90 days after the date of the enactment of the Iran Refined Petroleum Sanctions Act, and every 6 months thereafter, the President shall submit a report to the appropriate congressional committees regarding any person who has--CommentsClose CommentsPermalink





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





‘(B) engaged in any activity that could contribute to the enhancement of Iran’s ability to import refined petroleum resources; orCommentsClose CommentsPermalink





‘(C) sold, leased, or provided to Iran any goods, services, or technology that would allow Iran to maintain or expand its domestic production of refined petroleum resources.CommentsClose CommentsPermalink





‘(2) DESCRIPTION- For each activity set forth in subparagraphs (A) through (C) of paragraph (1), the President shall provide a complete and detailed description of such activity, including--CommentsClose CommentsPermalink





‘(A) the date or dates of such activity;CommentsClose CommentsPermalink





‘(B) the name of any persons who participated or invested in or facilitated such activity;CommentsClose CommentsPermalink





‘(C) the United States domiciliary of the persons referred to in subparagraph (B);CommentsClose CommentsPermalink





‘(D) any Federal Government contracts to which the persons referred to in subparagraph (B) are parties; andCommentsClose CommentsPermalink





‘(E) the steps taken by the United States to respond to such activity.CommentsClose CommentsPermalink





‘(3) FORM OF REPORTS; PUBLICATION- The reports required under this subsection shall be--CommentsClose CommentsPermalink





‘(A) submitted in unclassified form, but may contain a classified annex; andCommentsClose CommentsPermalink





‘(B) published in the Federal Register.’.CommentsClose CommentsPermalink





(e) Clarification and Expansion of Definitions- Section 14 of such Act is amended--CommentsClose CommentsPermalink





(1) in paragraph (13)(B)--CommentsClose CommentsPermalink





(A) by inserting ‘financial institution, insurer, underwriter, guarantor, any other business organization, including any foreign subsidiary, parent, or affiliate of such a business organization,’ after ‘trust,’; andCommentsClose CommentsPermalink





(B) by inserting ‘, such as an export credit agency’ before the semicolon at the end; andCommentsClose CommentsPermalink





(2) in paragraph (14), by striking ‘petroleum and natural gas resources’ and inserting ‘petroleum, petroleum by-products, oil or liquefied natural gas, oil or liquefied natural gas tankers, and products used to construct or maintain pipelines used to transport oil or liquefied natural gas’.CommentsClose CommentsPermalink





(f) Conforming Amendment- Section 4 of such Act is amended--CommentsClose CommentsPermalink





(1) in subsection (b)(2), by striking ‘(in addition to that provided in subsection (d))’; andCommentsClose CommentsPermalink





(2) by striking subsection (d).CommentsClose CommentsPermalink