I
111th CONGRESS
1st Session
H. R. 2194
IN THE HOUSE OF REPRESENTATIVES
April 30, 2009
Mr. Berman (for himself, Ms. Ros-Lehtinen, Mr. Ackerman, Mr. Burton of Indiana, Mr. Sherman, Mr. Royce, Mr. Andrews, and Mr. Kirk) 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 concerned
A BILL
To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts with respect to Iran by expanding economic sanctions against Iran.
Short title
This Act may be cited as the
Iran Refined Petroleum Sanctions Act
of 2009
.
Findings; sense of Congress
Findings
Congress finds the following:
The illicit nuclear activities of the Government of Iran—combined with its development of unconventional weapons and ballistic missiles, and support for international terrorism—represent a serious threat to the security of the United States and U.S. allies in Europe, the Middle East, and around the world.
The United States and other responsible nations have a vital interest in working together to prevent the Government of Iran from acquiring a nuclear weapons capability.
The International Atomic Energy Agency has
repeatedly called attention to Iran’s unlawful nuclear activities, and, as a
result, the United Nations Security Council has adopted a range of sanctions
designed to encourage the Government of Iran to cease those activities and
comply with its obligations under the Treaty on the Non-Proliferation of
Nuclear Weapons (commonly known as the Nuclear Non-Proliferation
Treaty
).
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.
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.
.
On June 4, 2008,
then-Senator Obama stated, 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.
.
Major European allies, including the United Kingdom, France, and Germany, have advocated that sanctions be significantly toughened should international diplomatic efforts fail to achieve verifiable suspension of Iran’s uranium enrichment program and an end to its nuclear weapons program and other illicit nuclear activities.
The serious and urgent nature of the threat from Iran demands that the United States work together with U.S. allies to do everything possible—diplomatically, politically, and economically—to prevent Iran from acquiring a nuclear weapons capability.
Sense of Congress
It is the sense of the Congress that—
international diplomatic efforts to address Iran’s illicit nuclear efforts, unconventional and ballistic missile development programs, and support for international terrorism are more likely to be effective if the President is empowered with the explicit authority to impose additional sanctions on the Government of Iran;
the concerns of the United States regarding Iran are strictly the result of the actions of the Government of Iran; and
the people of the United States—
have feelings of friendship for the people of Iran;
regret that developments in recent decades have created impediments to that friendship; and
hold the people of Iran, their culture, and their ancient and rich history in the highest esteem.
Statement of policy
It should be the policy of the United States to—
support international diplomatic efforts to end Iran’s uranium enrichment program and its nuclear weapons program;
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;
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;
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; and
work with the allies of the United States 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.
Amendments to the Iran Sanctions Act of 1996
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:
Sanctions with respect to the development of petroleum resources of Iran and exportation of refined petroleum to Iran
Development of petroleum resources of Iran
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 the enactment 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.
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 of 2009, 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.
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 of 2009, 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—
providing ships or shipping services to deliver refined petroleum resources to Iran;
underwriting or otherwise providing insurance or reinsurance for such activity; or
financing or brokering such activity.
.
Description of sanctions
Section 6 of such Act is amended—
by striking
The sanctions to be imposed on a sanctioned person under section 5 are
as follows:
and inserting the following:
In general
The sanctions to be imposed on a sanctioned person under subsections (a)(1)(A) and (b) of section 5 are as follows:
; and
by adding at the end the following:
Additional sanctions
The sanctions to be imposed on a sanctioned person under paragraphs (1)(B) and (2) of section 5(a) are as follows:
Foreign exchange
The President shall, under such regulations as the President may prescribe, prohibit any transactions in foreign exchange by the sanctioned person.
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.
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.
.
Presidential waiver
Section 9(c)(2) of such Act is amended by amending subparagraph (C) to read as follows:
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, to maintain or expand its domestic production of refined petroleum resources, to import refined petroleum resources, or to develop its weapons of mass destruction or other military capabilities (as the case may be); and
.
Strengthening of waiver authority and sanctions implementation
Investigations
Section 4(f) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended—
in paragraph (1)—
by
striking should initiate
and inserting shall immediately
initiate
;
by
inserting or 5(b)
after section 5(a)
; and
by
striking as described in such section
and inserting as
described in section 5(a)(1) or other activity described in section 5(a)(2) or
5(b) (as the case may be)
;
in paragraph (2),
by striking , pursuant to section 5(a), if a person has engaged in
investment activity in Iran as described in such section
and inserting
, pursuant to section 5(a) or (b) (as the case may be), if a person has
engaged in investment activity in Iran as described in section 5(a)(1) or other
activity described in section 5(a)(2) or 5(b) (as the case may be)
;
and
by adding at the end the following new paragraph:
Definition of credible information
For the
purposes of this subsection, the term credible information
means
public or classified information or reporting supported by other substantiating
evidence.
.
Exception for Proliferation Security Initiative
Section 5(f) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended—
in paragraph (6),
by striking or
at the end;
in paragraph (7),
by striking the period at the end and inserting ; or
; and
by adding at the end the following new paragraph:
if the President determines in writing that the person to which the sanctions would otherwise be applied is—
a citizen or resident of a country that is a participant in the Proliferation Security Initiative; or
a foreign person that is organized under the laws of a country described in subparagraph (A) and is a subsidiary of a United States person.
.
General Waiver Authority
Section 9(c)(1) of the Iran Sanctions Act of 1996 (50
U.S.C. 1701 note) is amended by striking important to the national
interest of the United States
and inserting vital to the
national security interest of the United States
.
Rule of Construction
The amendments made by this subsection shall not be construed to affect any exercise of the authority of section 4(f) or section 9(c) of the Iran Sanctions Act of 1996 as in effect on the day before the date of the enactment of this Act.
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:
Reports on certain business transactions relating to Iran
In general
Not later than 90 days after the date of the enactment of the Iran Refined Petroleum Sanctions Act of 2009, and every 6 months thereafter, the President shall submit a report to the appropriate congressional committees regarding any person who has—
provided Iran with refined petroleum resources;
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; or
engaged in any activity that could contribute to the enhancement of Iran’s ability to import refined petroleum resources.
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—
the date or dates of such activity;
the name of any persons who participated or invested in or facilitated such activity;
the United States domiciliary of the persons referred to in subparagraph (B);
any Federal Government contracts to which the persons referred to in subparagraph (B) are parties; and
the steps taken by the United States to respond to such activity.
Form of reports; publication
The reports required under this subsection shall be—
submitted in unclassified form, but may contain a classified annex; and
published in the Federal Register.
.
Clarification and expansion of definitions
Section 14 of such Act is amended—
in paragraph (13)(B)—
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
by inserting
, such as an export credit agency
before the semicolon at the
end; and
by amending paragraph (14) to read as follows:
Petroleum resources
In general
The term
petroleum resources
includes 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
compressed or liquefied natural gas.
Petroleum by-products
The term
petroleum by-products
means gasoline, kerosene, distillates,
propane or butane gas, diesel fuel, residual fuel oil, and other goods
classified in headings 2709 and 2710 of the Harmonized Tariff Schedule of the
United
States.
.
Conforming amendments
Multilateral regime
Section 4 of such Act is amended—
in subsection
(b)(2), by striking (in addition to that provided in subsection
(d))
; and
by striking subsection (d) and redesignating subsections (e) and (f) as subsections (d) and (e), respectively.
Impositions of sanctions
Section 5(b) of such Act is amended by striking
section 6
and inserting section 6(a)
.
