[Congressional Record Volume 153, Number 50 (Thursday, March 22, 2007)]
[Senate]
[Pages S3616-S3620]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mr. Durbin, Mr. Lautenberg, Mr. 
        Coleman, Mr. Lieberman, Mr. Brownback, Mr. Bayh, Mr. Kyl, Mr. 
        Thune, Ms. Mikulski, and Mr. Menendez):
  S. 970. A bill to impose sanctions on Iran and on other countries for 
assisting Iran in developing a nuclear program, and for other purposes; 
to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to address a serious concern 
more than 20 years in the making. In large part because of the secrecy 
over its nuclear program, America's National Security Strategy for 2006 
identifies Iran as one of the greatest challenges to the United States. 
The Senate recognized this threat in January 2006 by unanimously 
condemning Iran's refusal to comply with its nuclear nonproliferation 
obligations. Last September, this body unanimously passed mandatory 
sanctions on persons who knowingly helped Iran acquire or develop 
weapons of mass destruction. And all the while, Tehran continued its 
pursuit of a nuclear program that, unchecked, will lead to a nuclear-
armed Iran.
  I cannot overestimate the threat that this poses to the security of 
the United States and our allies. Since the revolution that brought it 
to power, the theocracy that rules over Iran has demonstrated its 
contempt for the democratic ideals on which our country is based. It 
has held its own people hostage in an effort to maintain absolute 
control over their destiny. And it has spewed forth hate-filled 
rhetoric at regular intervals about the very existence of the state of 
Israel--a valued American ally in the Middle East.
  After years of vigorous diplomacy by Britain, France, and Germany 
failed to

[[Page S3617]]

persuade the Iranians to give up their nuclear program, the United 
Nations Security Council passed a resolution in December 2006 calling 
for the suspension of all enrichment-related activities. Iran ignored 
that demand, and instead, responded by stepping up their nuclear 
program. Inaction in the face of such an egregious challenge is a 
mockery of the international institutions where diplomatic solutions 
are tried and tested. Now is the time to use every tool in our arsenal 
short of military force to stop the Iranian regime from developing 
nuclear weapons, and to send the message that the international 
community will not tolerate flagrant violations of our combined will.
  I have heard the calls of my colleagues that all efforts should be 
made to avoid military intervention in Iran. I agree with them 
entirely. But Mr. President, I will not stand idle while up to 3,000 
centrifuges in Natanz enrich uranium that one day soon could tip a 
warhead aimed at the U.S. or our allies around the world.
  Today I am introducing legislation designed to persuade Tehran to 
give up its nuclear ambitions. The Iran Counter-Proliferation Act of 
2007 will significantly strengthen our economic sanctions against Iran 
and any entities that choose to support the regime. I am pleased that 
Senator Durbin has joined me in this effort, as well as Senators 
Coleman, Lautenberg, Brownback, Lieberman, Kyl, Bayh, and Thune.
  This legislation urges the Administration to pursue measures in the 
international financial sector to restrict financing in Iran and 
encourages foreign state-owned entities to cease investment in Iran's 
energy sector. It prohibits all imports from and exports to Iran. It 
forbids any action that would extend preferential trade treatment to 
Iran or that would lead to Iranian accession to the WTO. And it freezes 
assets of senior Iranian officials and their families. By cutting off 
Iran's access to the hard currency it needs, we can increase the cost 
of their decision to pursue its nuclear program.
  The legislation also singles out Russia--a country that has 
contributed significantly to the development of Iran's nuclear program 
and has significant financial ties with Tehran. Among other 
restrictions, the bill prevents the United States from moving forward 
with a multi-billion dollar nuclear cooperation agreement with Moscow 
until the President certifies that Russia has suspended its nuclear 
assistance and the transfers of any conventional weapons and missiles 
to Iran. The Russians may feel this is unfair, particularly in light of 
their recent announcement they would suspend the delivery of nuclear 
fuel to Iran's Bushehr reactor. I am pleased with this decision and 
hope that it is the beginning of a new view in Moscow of Iran's nuclear 
program. But we must remember that over the past decade, Russia has 
periodically suspended its nuclear assistance to Iran only to resume 
this assistance at a later date.
  The Iran Counter-Proliferation Act also seeks to bring to light the 
names of companies that continue to feel it is appropriate to do 
business with the mullahs in Tehran. It requires the Administration to 
submit an annual report to Congress listing any foreign investments in 
Iran's energy sector since January 1 of this year and a determination 
on whether such investment is sanctionable under the Iran Sanctions 
Act. And it requires a report listing companies with American 
operations, whether or not they are incorporated in the United States, 
which invest in Iran.
  In a further effort to highlight the cost to Iran of ignoring the 
demands of the international community, this legislation will reduce 
our contributions to the World Bank by the percentage of total money 
the World Bank loans to entities in Iran. The United States does not 
support these loans, and I urge those countries contributing the most 
to the World Bank to oppose such loans in the future.
  Finally, Mr. President, the Iran Counter-Proliferation Act calls on 
the Administration to designate the Iranian Revolutionary Guard as a 
Foreign Terrorist Organization and to add it to the Treasury's list of 
Specially Designated Global Terrorists. Funding is increased for the 
Office of Terrorism and Financial Intelligence to strengthen the 
Treasury's efforts to combat unlawful or terrorist financing.
  It is critical for us to realize that our problems with Iran are not 
with the Iranian people, whose legitimate aspirations to live freely in 
a normal, prosperous country should be recognized. As such, this 
legislation designates $10 million in funding to enhance our friendship 
with the people of Iran by identifying young Iranians to visit the 
United States under U.S. exchange programs.
  The time for action is now. I hope my colleagues agree with me that 
we must use every available tool short of military force to compel the 
Iranian regime to abandon completely, verifiably, and irreversibly 
their pursuit of a nuclear weapons capability. I recognize that 
sanctions are not always popular, but we need to give them a chance to 
work. By doing nothing, we limit our future options in addressing this 
significant threat to the United States.
  I ask unanimous consent that the full text of the legislation be 
printed in the Record.
  I urge my colleagues to support the Iran Counter-Proliferation Act of 
2007.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 970

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Iran Counter-Proliferation 
     Act of 2007''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) For more than 20 years, Iran has pursued a secret 
     nuclear program that is intended to produce a nuclear weapons 
     capability for Iran.
       (2) The Government of Iran has consistently misled the 
     United Nations, the International Atomic Energy Agency, and 
     the United States as to the objectives and scope of its 
     nuclear activities.
       (3) Iran has refused to comply with United Nations Security 
     Council Resolution 1737, adopted on December 23, 2006, which 
     called for the suspension of all enrichment-related and 
     reprocessing activities and is advancing work at its largest 
     nuclear facility.
       (4) The International Atomic Energy Agency is unable to 
     verify the absence of undeclared nuclear material and 
     activities in Iran and its Director-General has stated that 
     Iran could be 6 months to a year away from acquiring the 
     material necessary to make a nuclear weapon.
       (5) An Iranian nuclear weapons capability poses a grave 
     threat to the security of the United States and its allies 
     around the world.
       (6) It is in the national security interests of the United 
     States to prevent Iran from acquiring a nuclear weapons 
     capability.
       (7) The United States should use all political, economic, 
     and diplomatic tools at its disposal to prevent Iran from 
     acquiring a nuclear weapons capability.
       (8) Nothing in this Act should be construed as giving the 
     President the authority to use military force against Iran.

     SEC. 3. SENSE OF CONGRESS.

       The following is the sense of Congress:
       (1) The United States should pursue vigorously all measures 
     in the international financial sector to restrict Iran's 
     ability to conduct international financial transactions, 
     including prohibiting banks in the United States from 
     handling indirect transactions with Iran's state-owned banks 
     and prohibiting financial institutions that operate in United 
     States currency from engaging in dollar transactions with 
     Iranian institutions.
       (2) The United States Trade Representative or any other 
     Federal official should not take any action that would extend 
     preferential trade treatment to, or lead to the accession to 
     the World Trade Organization of, any country that is 
     determined by the Secretary of State to offer government-
     backed export credit guarantees to companies that invest in 
     Iran or any country in which the government owns or partially 
     owns an entity that invests in Iran.
       (3) Iran should comply fully with its obligations under 
     United Nations Security Council Resolution 1737, and any 
     subsequent United Nations resolutions related to Iran's 
     nuclear program, and in particular the requirement to suspend 
     without delay all enrichment-related and reprocessing 
     activities, including research and development, and all work 
     on all heavy water-related nuclear activities, including 
     research and development.
       (4) The United Nations Security Council should take further 
     measures beyond Resolution 1737 to tighten sanctions on Iran, 
     including preventing new investment in Iran's energy sector, 
     as long as Iran fails to comply with the international 
     community's demand to halt its nuclear enrichment campaign.
       (5) The United States should encourage foreign governments 
     to direct state-owned entities to cease all investment in 
     Iran's energy sector and all imports to and exports from Iran 
     of refined petroleum products and to persuade, and, where 
     possible, require private entities based in their territories 
     to cease all investment in Iran's energy sector and all 
     imports to and exports from Iran of refined petroleum 
     products.

[[Page S3618]]

       (6) Administrators of Federal and State pension plans 
     should divest all assets or holdings from foreign companies 
     and entities that have invested or invest in the future in 
     Iran's energy sector.
       (7) Iranian state-owned banks should not be permitted to 
     use the banking system of the United States.
       (8) The Secretary of State should designate the Iranian 
     Revolutionary Guards as a Foreign Terrorist Organization 
     under section 219 of the Immigration and Nationality Act (8 
     U.S.C. 1189) and the Secretary of the Treasury should place 
     the Iranian Revolutionary Guards on the list of Specially 
     Designated Global Terrorists under Executive Order 13224 (66 
     Fed. Reg. 186; relating to blocking property and prohibiting 
     transactions with persons who commit, threaten to commit, or 
     support terrorism).

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' has the meaning 
     given that term in section 14(2) of the Iran Sanctions Act of 
     1996 (Public Law 104-172; 50 U.S.C. 1701 note).
       (2) Investment.--The term ``investment'' has the meaning 
     given that term in section 14(9) of the Iran Sanctions Act of 
     1996 (Public Law 104-172; 50 U.S.C. 1701 note).
       (3) Iranian diplomats and representatives of other 
     government and military or quasi-governmental institutions of 
     iran.--The term ``Iranian diplomats and representatives of 
     other government and military or quasi-governmental 
     institutions of Iran'' has the meaning given that term in 
     section 14(11) of the Iran Sanctions Act of 1996 (Public Law 
     104-172; 50 U.S.C. 1701 note).
       (4) Family member.--The term ``family member'' means, with 
     respect to an individual, the spouse, children, 
     grandchildren, or parents of the individual.

     SEC. 5. CLARIFICATION AND EXPANSION OF DEFINITIONS.

       (a) Person.--Section 14(13)(B) of the Iran Sanctions Act of 
     1996 (Public Law 104-172; 50 U.S.C. 1701 note) is amended--
       (1) by inserting ``financial institution, insurer, 
     underwriter, guarantor, and other business organization, 
     including any foreign subsidiary, parent, or affiliate of the 
     foregoing,'' after ``trust,''; and
       (2) by inserting ``, such as an export credit agency'' 
     before the semicolon.
       (b) Petroleum Resources.--Section 14(14) of the Iran 
     Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 
     note) is amended by striking ``petroleum and natural gas 
     resources'' and inserting ``petroleum, petroleum by-products, 
     liquefied natural gas, 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''.

     SEC. 6. RUSSIA NUCLEAR COOPERATION.

       (a) In General.--Notwithstanding any other provision of 
     law, and in addition to any other sanction in effect, 
     beginning on the date that is 15 days after the date of the 
     enactment of this Act, the policies described in subsection 
     (b) shall apply with respect to Russia, unless the President 
     makes a certification to Congress described in subsection 
     (c).
       (b) Policies.--The policies described in this subsection 
     are the following:
       (1) Agreements.--The United States may not enter into an 
     agreement for cooperation with Russia pursuant to section 123 
     of the Atomic Energy Act (42 U.S.C. 2153).
       (2) Licenses to export nuclear material, facilities, or 
     components.--The United States may not issue a license to 
     export directly or indirectly to Russia any nuclear material, 
     facilities, components, or other goods, services, or 
     technology that would be subject to an agreement under 
     section 123 of the Atomic Energy Act (42 U.S.C. 2153).
       (3) Transfers of nuclear material, facilities, or 
     components.--The United States may not approve the transfer 
     or retransfer directly or indirectly to Russia of any nuclear 
     material, facilities, components, or other goods, services, 
     or technology that would be subject to an agreement under 
     section 123 of the Atomic Energy Act (42 U.S.C. 2153).
       (c) Certification.--The certification described in this 
     subsection means a certification made by the President to 
     Congress on or after the date that is 15 days after the date 
     of the enactment of this Act that the President has 
     determined that--
       (1) Russia has suspended all nuclear assistance to Iran and 
     all transfers of advanced conventional weapons and missiles 
     to Iran; or
       (2) Iran has completely, verifiably, and irreversibly 
     dismantled all nuclear enrichment-related and reprocessing-
     related programs.
       (d) Termination of Policies.--The policies described in 
     subsection (b) shall remain in effect until such time as the 
     President makes the certification to Congress described in 
     subsection (c).

     SEC. 7. ECONOMIC SANCTIONS RELATING TO IRAN.

       (a) In General.--Notwithstanding any other provision of 
     law, and in addition to any other sanction in effect, 
     beginning on the date that is 15 days after the date of the 
     enactment of this Act, the economic sanctions described in 
     subsection (b) shall apply with respect to Iran, unless the 
     President makes a certification to Congress described in 
     subsection (c).
       (b) Sanctions.--The sanctions described in this subsection 
     are the following:
       (1) Prohibition on imports.--No article that is grown, 
     produced, or manufactured in Iran may be imported directly or 
     indirectly into the United States.
       (2) Prohibition on exports.--
       (A) In general.--Except as provided in subparagraph (B), no 
     article that is the growth, product, or manufacture of the 
     United States may be exported directly or indirectly to Iran.
       (B) Exception for food and medicine.--The prohibition in 
     subparagraph (A) does not apply to exports to Iran of food 
     and medicine grown, produced, or manufactured in the United 
     States.
       (3) Accession to wto.--The United States Trade 
     Representative or any other Federal official may not take any 
     action that would extend preferential trade treatment to, or 
     lead to the accession to the World Trade Organization of--
       (A) Iran; or
       (B) any other country that is determined by the Secretary 
     of State to be--
       (i) engaged in nuclear cooperation with Iran, including the 
     transfer or sale of any item, material, goods, or technology 
     that can contribute to uranium enrichment or nuclear 
     reprocessing activities of Iran; or
       (ii) contributing to the ballistic missile programs of 
     Iran.
       (4) Freezing assets.--
       (A) In general.--At such time as the United States has 
     access to the names of Iranian diplomats and representatives 
     of other government and military or quasi-governmental 
     institutions of Iran, the President shall take such action as 
     may be necessary to freeze immediately the funds and other 
     assets belonging to anyone so named, the family members of 
     those so named, and any associates of those so named to whom 
     assets or property of those so named were transferred on or 
     after January 1, 2007. The action described in the preceding 
     sentence includes requiring any United States financial 
     institution that holds funds and assets of a person so named 
     to report promptly to the Office of Foreign Assets Control 
     information regarding such funds and assets.
       (B) Asset reporting requirement.--Not later than 14 days 
     after a decision is made to freeze the property or assets of 
     any person under this paragraph, the President shall report 
     the name of such person to the appropriate congressional 
     committees.
       (5) United states government contracts.--The United States 
     Government may not procure, or enter into a contract for the 
     procurement of, any goods or services from a person that 
     meets the criteria for the imposition of sanctions under 
     section 5(a) of the Iran Sanctions Act of 1996 (Public Law 
     104-172; 50 U.S.C. 1701 note).
       (c) Certification Described.--The certification described 
     in this subsection means a certification made by the 
     President to Congress beginning on the date that is 15 days 
     after the date of the enactment of this Act that the 
     President has determined that Iran has completely, 
     verifiably, and irreversibly dismantled all nuclear 
     enrichment-related and reprocessing-related programs.
       (d) Termination of Sanctions.--The sanctions described in 
     subsection (b) shall remain in effect until such time as the 
     President makes the certification to Congress described in 
     subsection (c).

     SEC. 8. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF 
                   SANCTIONS BY FOREIGN ENTITIES.

       (a) In General.--In any case in which an entity engages in 
     an act outside the United States that, if committed in the 
     United States or by a United States person, would violate the 
     provisions of Executive Order 12959 (60 Fed. Reg. 89) or 
     Executive Order 13059 (62 Fed. Reg. 162), or any other 
     prohibition on transactions with respect to Iran imposed 
     under the authority of the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.), the parent company of 
     the entity shall be subject to the penalties for the act to 
     the same extent as if the parent company had engaged in the 
     act.
       (b) Applicability.--Subsection (a) shall not apply to a 
     parent company of an entity on which the President imposed a 
     penalty for a violation described in subsection (a) that was 
     in effect on the date of the enactment of this Act if the 
     parent company divests or terminates its business with such 
     entity not later than 90 days after such date of enactment.
       (c) Definitions.--In this section:
       (1) Entity.--The term ``entity'' means a partnership, 
     association, trust, joint venture, corporation, or other 
     organization.
       (2) Parent company.--The term ``parent company'' means an 
     entity that is a United States person and--
       (A) the entity owns, directly or indirectly, more than 50 
     percent of the equity interest by vote or value in another 
     entity;
       (B) board members or employees of the entity hold a 
     majority of board seats of another entity; or
       (C) the entity otherwise controls or is able to control the 
     actions, policies, or personnel decisions of another entity.
       (3) United states person.--The term ``United States 
     person'' means--
       (A) a natural person who is a citizen of the United States 
     or who owes permanent allegiance to the United States; and
       (B) an entity that is organized under the laws of the 
     United States, any State or territory thereof, or the 
     District of Columbia, if natural persons described in 
     subparagraph (A) own, directly or indirectly, more than 50 
     percent of the outstanding capital stock or other beneficial 
     interest in such entity.

[[Page S3619]]

     SEC. 9. ELIMINATION OF CERTAIN TAX INCENTIVES FOR OIL 
                   COMPANIES INVESTING IN IRAN.

       (a) In General.--Subsection (h) of section 167 of the 
     Internal Revenue Code of 1986 (relating to amortization of 
     geological and geophysical expenditures) is amended by adding 
     at the end the following new paragraph:
       ``(6) Denial when iran sanctions in effect.--
       ``(A) In general.--If sanctions are imposed under section 
     5(a) of the Iran Sanctions Act of 1996 or section 7 of the 
     Iran Counter-Proliferation Act of 2007 (relating to sanctions 
     with respect to the development of petroleum resources of 
     Iran) on any member of an expanded affiliated group the 
     common parent of which is a foreign corporation, paragraph 
     (1) shall not apply to any expense paid or incurred by any 
     such member in any period during which the sanctions are in 
     effect.
       ``(B) Expanded affiliated group.--For purposes of 
     subparagraph (A), the term `expanded affiliated group' means 
     an affiliated group as defined in section 1504(a), 
     determined--
       ``(i) by substituting `more than 50 percent' for `at least 
     80 percent' each place it appears, and
       ``(ii) without regard to paragraphs (2), (3), and (4) of 
     section 1504(b).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to expenses paid or incurred on or after January 
     1, 2007.

     SEC. 10. WORLD BANK LOANS TO IRAN.

       (a) Report.--Not later than 180 days after the date of the 
     enactment of this Act, and every 180 days thereafter, the 
     Secretary of the Treasury shall submit to the appropriate 
     congressional committees a report on--
       (1) the number of loans provided by the World Bank to Iran;
       (2) the dollar amount of such loans; and
       (3) the voting record of each member of the World Bank on 
     such loans.
       (b) Reduction of Contribution of the United States.--The 
     President shall reduce the total amount otherwise payable on 
     behalf of the United States to the World Bank for fiscal year 
     2008 and each fiscal year thereafter by an amount that bears 
     the same ratio to the total amount otherwise payable as--
       (1) the total of the amounts provided by the Bank to 
     entities in Iran, and for projects and activities in Iran, in 
     the preceding fiscal year, bears to
       (2) the total of the amounts provided by the Bank to all 
     entities, and for all projects and activities, in the 
     preceding fiscal year.
       (c) Allocation of Amounts Not Contributed to the World 
     Bank.--There is authorized to be appropriated to the United 
     States Agency for International Development for fiscal year 
     2008 and each fiscal year thereafter an amount equal to the 
     revenues made available as a result of the application of 
     subsection (b). Funds appropriated pursuant to this 
     subsection shall be made available for the Child Survival and 
     Health Programs Fund to carry out programs relating to 
     maternal and child health, vulnerable children, and 
     infectious diseases other than HIV/AIDS.

     SEC. 11. INCREASED CAPACITY FOR EFFORTS TO COMBAT UNLAWFUL OR 
                   TERRORIST FINANCING.

       (a) Findings.--The work of the Office of Terrorism and 
     Financial Intelligence of the Department of Treasury, which 
     includes the Office of Foreign Assets Control and the 
     Financial Crimes Enforcement Center, is critical to ensuring 
     that the international financial system is not used for 
     purposes of supporting terrorism and developing weapons of 
     mass destruction.
       (b) Authorization.--There is authorized to be appropriated 
     to the Secretary of the Treasury for the Office of Terrorism 
     and Financial Intelligence--
       (1) $59,466,000 for fiscal year 2008; and
       (2) such sums as may be necessary for each of the fiscal 
     years 2009 and 2010.
       (c) Authorization Amendment.--Section 310(d)(1) of title 
     31, United States Code, is amended by striking ``such sums as 
     may be necessary for fiscal years 2002, 2003, 2004, and 
     2005'' and inserting ``$85,844,000 for fiscal year 2008 and 
     such sums as may be necessary for each of the fiscal years 
     2009 and 2010''.

     SEC. 12. NATIONAL INTELLIGENCE ESTIMATE ON IRAN.

       As required under section 1213 of the John Warner National 
     Defense Authorization Act for Fiscal Year 2007 (Public Law 
     109-364; 120 Stat. 2422), the Director of National 
     Intelligence shall submit to Congress an updated, 
     comprehensive National Intelligence Estimate on Iran.

     SEC. 13. EXCHANGE PROGRAMS WITH THE PEOPLE OF IRAN.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should seek to enhance its friendship with 
     the people of Iran, particularly by identifying young people 
     of Iran to come to the United States under United States 
     exchange programs.
       (b) Exchange Programs Authorized.--The President is 
     authorized to carry out exchange programs with the people of 
     Iran, particularly the young people of Iran. Such programs 
     shall be carried out to the extent practicable in a manner 
     consistent with the eligibility for assistance requirements 
     specified in section 302(b) of the Iran Freedom Support Act 
     (Public Law 109-293; 120 Stat. 1348).
       (c) Authorization.--Of the amounts available under the 
     heading ``Educational and Cultural Exchange Programs'', under 
     the heading ``Administration of Foreign Affairs'', under 
     title IV of the Science, State, Justice, Commerce, and 
     Related Agencies Appropriations Act, 2006 (Public Law 109-
     108; 119 Stat. 2321), there is authorized to be appropriated 
     to the President to carry out this section $10,000,000 for 
     fiscal year 2008.

     SEC. 14. RADIO BROADCASTING TO IRAN.

       The Broadcasting Board of Governors shall devote a greater 
     proportion of the programming of the Radio Farda service to 
     programs offering news and analysis to further the open 
     communication of information and ideas to Iran.

     SEC. 15. INTERNATIONAL REGIME FOR THE ASSURED SUPPLY OF 
                   NUCLEAR FUEL FOR PEACEFUL MEANS.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the Concept for a Multilateral Mechanism for Reliable 
     Access to Nuclear Fuel, proposed by the United States, 
     France, the Russian Federation, the Federal Republic of 
     Germany, the United Kingdom, and the Netherlands on May 31, 
     2006, is welcome and should be expanded upon at the earliest 
     possible opportunity;
       (2) the proposal by the Government of the Russian 
     Federation to bring one of its uranium enrichment facilities 
     under international management and oversight is also a 
     welcome development and should be encouraged by the United 
     States;
       (3) the offer by the Nuclear Threat Initiative (NTI) of 
     $50,000,000 in funds to support the creation of an 
     international nuclear fuel bank by the International Atomic 
     Energy Agency (IAEA) is also welcome, and the United States 
     and other member states of the IAEA should pledge 
     collectively at least an additional $100,000,000 in matching 
     funds to fulfill the NTI proposal; and
       (4) the Global Nuclear Energy Partnership, initiated by 
     President Bush in January 2006, is intended to provide a 
     reliable fuel supply throughout the fuel cycle and promote 
     the nonproliferation goals of the United States.
       (b) Policy.--It is the policy of the United States to 
     support the establishment of an international regime for the 
     assured supply of nuclear fuel for peaceful means under a 
     multilateral authority, such as the International Atomic 
     Energy Agency.
       (c) Contributions to IAEA.--
       (1) In general.--Subject to the requirements of paragraph 
     (2), the President is authorized to make voluntary 
     contributions on a grant basis to the International Atomic 
     Energy Agency (referred to in this subsection as the 
     ``IAEA'') for the purpose of supporting the establishment of 
     an international nuclear fuel bank to maintain a reserve of 
     low-enriched uranium for the production of reactor fuel to 
     provide to eligible countries in the case of a disruption in 
     the supply of reactor fuel by normal market mechanisms.
       (2) Requirements for contributions.--Before making a 
     contribution under paragraph (1), the President shall certify 
     to the Committee on Foreign Affairs of the House of 
     Representatives and the Committee on Foreign Relations of the 
     Senate that--
       (A) the IAEA has received pledges in a total amount of not 
     less than $100,000,000 from other governments or entities for 
     the purpose of supporting the establishment of the 
     international nuclear fuel bank referred to in paragraph (1);
       (B) the international nuclear fuel bank referred to in 
     paragraph (1) will be under the oversight of the IAEA or 
     another multilateral authority; and
       (C) the international nuclear fuel bank will provide 
     nuclear reactor fuel to a country only if--
       (i) at the time of the request for nuclear reactor fuel, 
     the country is in full compliance with its IAEA safeguards 
     agreement and has an additional protocol for safeguards in 
     force;
       (ii) in the case of a country that at any time prior to the 
     request for nuclear reactor fuel has been determined to be in 
     noncompliance with its IAEA safeguards agreement, the IAEA 
     Board of Governors determines that the country has taken all 
     necessary actions to satisfy any concerns of the IAEA 
     Director General regarding the activities that led to the 
     prior determination of noncompliance;
       (iii) the country agrees to use the nuclear reactor fuel in 
     accordance with its IAEA safeguards agreement; and
       (iv) the country does not operate uranium enrichment or 
     spent-fuel reprocessing facilities of any scale.
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated $50,000,000 to carry out this section for 
     fiscal year 2008. Amounts appropriated for this section are 
     authorized to remain available until September 30, 2010.

     SEC. 16. REPORTING REQUIREMENTS.

       (a) Foreign Investment in Iran.--Not later than 180 days 
     after the date of the enactment of this Act, and every 180 
     days thereafter, the Secretary of the Treasury shall submit 
     to the appropriate congressional committees a report on--
       (1) any foreign investments made in Iran's energy sector 
     since January 1, 2007; and
       (2) the determination of the President on whether each such 
     investment qualifies as a sanctionable offense under section 
     5(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 
     50 U.S.C. 1701 note).
       (b) Investment by United States Companies in Iran.--Not 
     later than 180 days after the date of the enactment of this 
     Act, and annually thereafter, the Secretary of the Treasury 
     shall report to the appropriate congressional committees the 
     names of persons

[[Page S3620]]

     that have operations or conduct business in the United States 
     that have invested in Iran and the dollar amount of each such 
     investment.
       (c) Investment by Federal Thrift Savings Plan in Iran.--Not 
     later than 180 days after the date of the enactment of this 
     Act, and annually thereafter, the Executive Director of the 
     Federal Retirement Thrift Investment Board shall report to 
     the appropriate congressional committees on any investment in 
     entities that invest in Iran from the Thrift Savings Fund 
     established under section 8437 of title 5, United States 
     Code.
       (d) List of Designated Foreign Terrorist Organizations.--
     Not later than 180 days after the date of the enactment of 
     this Act, the Secretary of State and the Secretary of the 
     Treasury shall report to the appropriate congressional 
     committees on the efforts of the Secretary of State and the 
     Secretary of the Treasury to place the Iranian Revolutionary 
     Guards on the list of designated Foreign Terrorist 
     Organizations under section 219 of the Immigration and 
     Nationality Act (8 U.S.C. 1189) and the list of Specially 
     Designated Global Terrorists under Executive Order 13224 (66 
     Fed. Reg. 186; relating to blocking property and prohibiting 
     transactions with persons who commit, threaten to commit, or 
     support terrorism).
       (e) Establishment of International Regime.--Not later than 
     180 days after the date of the enactment of this Act, the 
     President shall submit to the Committee on Foreign Affairs of 
     the House of Representatives and the Committee on Foreign 
     Relations of the Senate a report on the activities of the 
     United States to support the establishment of an 
     international regime for the assured supply of nuclear fuel 
     for peaceful means under a multilateral authority, such as 
     the International Atomic Energy Agency.
       (f) Export Credits.--Not later than 90 days after the date 
     of the enactment of this Act, and every 90 days thereafter, 
     the Secretary of the Treasury shall report to the appropriate 
     congressional committees on the export credits issued by 
     foreign banks to persons investing in the energy sector of 
     Iran, and any fines, restrictions, or other actions taken by 
     the President to discourage or prevent the issuance of such 
     export credits.

  Mr. DURBIN. Mr. President, today, my colleagues, Senator Gordon 
Smith, Senator Frank Lautenberg, and I join together to introduce 
bipartisan legislation to use economic and diplomatic measures to help 
convince the Iranian Government to turn away from its path toward the 
development of nuclear weapons.
  The Iran Counter-Proliferation Act of 2007 would strengthen our 
economic sanctions regime against Iran until Iran completely, 
verifiably, and irreversibly dismantles all nuclear enrichment and 
reprocessing programs.
  The bill, for example, would penalize foreign oil companies with U.S. 
subsidiaries doing business in Iran and would forbid the awarding of 
U.S. Government contracts to those who have violated our existing 
sanctions against Iran.
  The bill reiterates the requirement to produce a National 
Intelligence Estimate on Iran mandated in last year's Defense 
Authorization bill.
  In addition to these measures, the bill addresses Russia's role in 
exporting nuclear and military technology to Iran.
  Nuclear cooperation agreements with Russia would be prohibited if 
that country continues to assist Iran in developing nuclear weapons. 
The United States could not enter into such an agreement with Moscow, 
absent a Presidential certification that Russia's assistance to Iran 
has ceased.
  This week has brought some promising news. Undersecretary of State 
for Political Affairs Nicholas Burns testified before the Senate 
Banking Committee that Russia has begun applying pressure on Iran to 
abandon its nuclear ambitions. That is most welcome, and if the 
President provides the verification that Russia's nuclear assistance to 
Iran has ceased--and that this is a sea change and not merely a 
contract dispute--then our other negotiations with Russia can proceed 
unimpeded.
  I firmly believe that we should offer positive incentives if Iran 
does change course and abandon its programs to develop nuclear weapons. 
Iran has energy needs, and we hope that they will join us and the 
community of nations in the peaceful acquisition of those resources.
  This legislation authorizes $50 million to the International Atomic 
Energy Agency to support the establishment of an international nuclear 
fuel bank, a concept originally proposed by Congressman Tom Lantos. 
This bank would maintain a reserve of low-enriched uranium for reactor 
fuel and make it available to countries in full compliance with IAEA 
safeguards which do not operate uranium enrichment or spent-fuel 
reprocessing facilities. It is our hope that Iran will become one of 
these nations.
  Because members of the American public are our best ambassadors and 
America itself is the strongest evidence of the benefits of freedom and 
prosperity, this bill increases the authorization for funding for young 
Iranians to come to the United States as part of exchange programs.
  I support efforts to engage with Tehran's leaders regarding Iraq. 
They should recognize that they, too, have a vested interest in 
regional peace and security. This bill is aimed at an issue which we 
cannot compromise: the Iranian acquisition of nuclear weapons.
  Iran's leaders face a choice of whether to pursue a legitimate goal 
of peaceful nuclear power for their citizens or a dangerous strategy to 
develop nuclear weapons. We must provide the economic and political 
pressure as well as incentives to help Iran choose the path to 
legitimacy and nuclear nonproliferation. This legislation will help 
achieve that goal.
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