SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Refined Petroleum Sanctions 
Act''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--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) Sense of Congress.--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.

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:
    ``(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) 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.
                    ``(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.
            ``(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--
                    ``(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) Description of Sanctions.--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) 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
            (2) by adding at the end the following:
    ``(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:
            ``(1) Foreign exchange.--The President shall, under such 
        regulations as the President may prescribe, prohibit any 
        transactions in foreign exchange by the sanctioned person.
            ``(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.
            ``(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.''.
    (c) Presidential Waiver.--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 Iran.--Section 10 of such Act is amended by 
adding at the end the following:
    ``(d) Reports on Certain Business Transactions Relating to Iran.--
            ``(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--
                    ``(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) 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--
                    ``(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; publication.--The 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 Definitions.--Section 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) Conforming Amendment.--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).
Iran Refined Petroleum Sanctions Act - Expresses the sense of Congress that: (1) the United States should continue to support diplomatic efforts in the International Atomic Energy Agency (IAEA) and the U.N. 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 U.S. policy to encourage foreign governments to direct state-owned and private entities to cease all investment in, and support of, Iran's energy sector and all exports of refined petroleum products to Iran; (4) the President is urged to impose sanctions on the Central Bank of Iran and any other Iranian financial institution engaged in proliferation activities or support of terrorist groups; (5) the Department of the Treasury should continue to work with allies to protect the international financial system from deceptive and illicit practices by Iranian financial institutions involved in proliferation activities or support of terrorist groups; (6) U.S. concerns regarding Iran are strictly the result of that governments actions; and (7) the people of the United States have feelings of friendship for the people of Iran and regret that developments in recent decades have created impediments to that friendship.

Amends the Iran Sanctions Act of 1996 to direct the President to impose two or more current sanctions under such Act if a person has, with actual knowledge, made an investment of $20 million or more (or any combination of investments of at least $5 million which in the aggregate equals or exceeds $20 million in any 12-month period) that directly and significantly contributed to Iran's ability to develop its petroleum resources. (Under current law the sanction thresholds are $40 million, $10 million, and $40 million, respectively.)

Directs the President to impose: (1) sanctions established under this Act (in addition to any current sanctions imposed under the Iran Sanctions Act of 1996) if a person has, with actual knowledge, 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; and (2) sanctions established under this Act if a person has, with actual knowledge, provided Iran with refined petroleum resources or engaged in any activity that could contribute to Iran's ability to import refined petroleum resources, including providing shipping, insurance, or financing services for such activity.

Establishes additional sanctions prohibiting specified foreign exchange, banking, and property transactions.

Includes references to refined petroleum resources in a presidential report to Congress requesting waiver of sanctions for purposes of national interest.

Directs the President to report to the appropriate congressional committees every six months regarding any person who has: (1) provided Iran with refined petroleum resources; (2) 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 (3) engaged in any activity that could contribute to the enhancement of Iran's ability to import refined petroleum resources.
{"src": "billsum_test", "title": "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."}