1.This Act may be cited as the
Iran Refined Petroleum Sanctions
Act
.
2.Findings; sense
of Congress
(a)Congress finds the following:
(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.
(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.
(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
).
(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.
(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.
.
(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.
.
(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.
(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.
.
(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.
.
(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.
.
(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.
.
(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.
(b)It is the sense of
the Congress that—
(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;
(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;
(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;
(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;
(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;
(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;
(7)the concerns of
the United States regarding Iran are strictly the result of the actions of the
Government of Iran; and
(8)the people of the
United States—
(A)have feelings of
friendship for the people of Iran;
(B)regret that
developments in recent decades have created impediments to that friendship;
and
(C)hold the people
of Iran, their culture, and their ancient and rich history in the highest
esteem.
3.Amendments to
the Iran Sanctions Act of 1996
(a)Section 5(a) of the Iran Sanctions Act of 1996
(50 U.S.C.
1701 note) is amended to read as follows:
(a)Sanctions with
respect to the development of petroleum resources of Iran and exportation of
refined petroleum to Iran
(1)Development of
petroleum resources of Iran
(A)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.
(B)Production of
refined petroleum resourcesExcept 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.
(2)Exportation of
refined petroleum resources to IranExcept 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—
(A)providing ships
or shipping services to deliver refined petroleum resources to Iran;
(B)underwriting or
otherwise providing insurance or reinsurance for such activity; or
(C)financing or
brokering such
activity.
.
(b)Section 6 of such Act is amended—
(1)by striking
The sanctions to be imposed on a sanctioned person under section 5 are
as follows:
and inserting the following:
(a)The sanctions to be imposed on a sanctioned person under
subsections (a)(1)(A) and (b) of section 5 are as
follows:
;
and
(2)by adding at the
end the following:
(b)The sanctions to be imposed on a sanctioned person
under paragraphs (1)(B) and (2) of section 5(a) are as follows:
(1)The President shall, under such regulations as the
President may prescribe, prohibit any transactions in foreign exchange by the
sanctioned person.
(2)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.
(3)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.
.
(c)Section 9(c)(2) of such Act is amended by amending
subparagraph (C) to read as follows:
(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
.
(d)Reports on
United States efforts To curtail certain business transactions relating to
IranSection 10 of such Act is amended by adding at the end the
following:
(d)Reports on
certain business transactions relating to Iran
(1)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—
(A)provided Iran with refined petroleum
resources;
(B)engaged in any
activity that could contribute to the enhancement of Iran’s ability to import
refined petroleum resources; or
(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.
(2)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—
(A)the date or dates
of such activity;
(B)the name of any
persons who participated or invested in or facilitated such activity;
(C)the United States
domiciliary of the persons referred to in subparagraph (B);
(D)any Federal
Government contracts to which the persons referred to in subparagraph (B) are
parties; and
(E)the steps taken
by the United States to respond to such activity.
(3)Form of
reports; publicationThe
reports required under this subsection shall be—
(A)submitted in unclassified form, but may
contain a classified annex; and
(B)published in the Federal
Register.
.
(e)Clarification
and expansion of definitionsSection 14 of such Act is
amended—
(1)in paragraph
(13)(B)—
(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,
;
and
(B)by inserting
, such as an export credit agency
before the semicolon at the
end; and
(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
.
(f)Section 4 of such Act is amended—
(1)in subsection
(b)(2), by striking (in addition to that provided in subsection
(d))
; and
(2)by striking
subsection (d).