SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Diplomatic Enhancement Act of 
2009''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The Islamic Republic of Iran is a party to the Treaty 
        on the Non-Proliferation of Nuclear Weapons (NPT).
            (2) Iran is a member of the International Atomic Energy 
        Agency (IAEA).
            (3) On July 31, 2006, the United Nations Security Council 
        (UNSC) adopted Resolution 1696, setting a deadline of August 
        31, 2006, for Iran's full, unconditional, and immediate 
        compliance with its obligations under the NPT.
            (4) Iran is in violation of UNSC Resolution 1696.
            (5) On December 23, 2006, the UNSC adopted Resolution 1737, 
        issuing a legally binding order that Iran immediately suspend 
        all enrichment-related and reprocessing activities and work on 
        all heavy water-related projects, and imposing economic 
        sanctions on Iran until such time as it has fully complied with 
        its obligations.
            (6) Iran is in violation of UNSC Resolution 1737.
            (7) On March 24, 2007, the UNSC adopted Resolution 1747, 
        imposing further economic sanctions on Iran for its 
        noncompliance with previous UNSC resolutions.
            (8) Iran is in violation of UNSC Resolution 1747.
            (9) On March 3, 2008, the UNSC adopted Resolution 1803, 
        imposing further economic sanctions on Iran for its 
        noncompliance with previous UNSC resolutions.
            (10) Iran is in violation of UNSC Resolution 1803.
            (11) On September 27, 2008, the UNSC adopted Resolution 
        1835, demanding that Iran immediately comply with previous UNSC 
        resolutions.
            (12) Iran is in violation of UNSC 1835.
            (13) According to the IAEA, Iran has installed 2 or 3 types 
        of next-generation centrifuges at Natanz FEP, including the IR-
        2 and the IR-3.
            (14) On October 26, 2008, IAEA inspectors were unable to 
        carry out a scheduled design information verification visit to 
        the Arak Heavy Water Reactor.
            (15) According to the IAEA, as of January 31, 2009, Iran 
        had produced a total of some 1,010 kilograms of low enriched 
        uranium hexafluoride, which is 30 percent higher than IAEA 
        estimates and sufficient for a nuclear weapons breakout 
        capability.
            (16) According to the IAEA's February 19, 2009, report, 
        Iran had installed more than 5,400 centrifuges.
            (17) According to the IAEA's February 19, 2009, report, 
        Iran is producing fuel rods containing uranium pellets for its 
        IR-40 heavy water reactor.
            (18) According to the IAEA, the IAEA sought and was denied 
        permission by Iran to visit the reactor itself in February 
        2009, which, according to the IAEA, ``could adversely impact 
        the IAEA's ability to carry out effective safeguards at that 
        facility''.
            (19) As evidenced by the February 3, 2009, launch of the 
        Omid satellite into space using the Safir 2-stage space launch 
        vehicle, Iran continues to expand its development of ballistic 
        missiles.
            (20) According to the IAEA, as of its February 19, 2009, 
        report, Iran has not answered IAEA questions ``about possible 
        military dimensions of Iran's nuclear programme''.
            (21) Up to 40 percent of Iranian gasoline comes from 
        imports.
            (22) Over the course of the past year, Iran purchased 
        nearly all of this gasoline from just six companies, five of 
        them European (the Swiss firm Vitol; the Swiss/Dutch firm 
        Trafigura; the French firm Total; the Swiss firm Glencore; 
        British Petroleum) and one Indian company, Reliance Industries.
            (23) In February 2009, Vitol and Trafigura supplied some 80 
        percent of Iran's gasoline imports, while Reliance Industries 
        and British Petroleum reportedly did not supply gasoline to 
        Iran that month.
            (24) In light of the extensive relationship between the 
        United States and Switzerland, it is a matter of particular 
        concern that Swiss firms supply more than 80 percent of Iran's 
        gasoline imports.
            (25) The majority of tankers carrying gasoline to Iran are 
        insured by Lloyds of London.
            (26) An interruption or significant limiting of the supply 
        of gasoline to Iran would considerably impact the Iranian 
        economy.
            (27) An international restriction of gasoline exports to 
        Iran would significantly bolster current diplomatic 
        initiatives.
            (28) On June 4, 2008, then-Senator Barack Obama said, ``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''.
            (29) On October 7, 2008, then-Senator Barack Obama said, 
        ``Iran right now imports gasoline . . . if we can prevent them 
        from importing the gasoline that they need . . . that starts 
        changing their cost-benefit analysis. That starts putting the 
        squeeze on them.''.

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

    (a) Expansion of Sanctions to Refined Petroleum.--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 Export of Refined Petroleum Resources to Iran.--
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 if the President determines that a person has, with actual 
knowledge--
            ``(1)(A) on or after the date of the enactment of this Act, 
        made an investment of $40,000,000 or more (or any combination 
        of investments of at least $10,000,000 each, which in the 
        aggregate equals or exceeds $40,000,000 in any 12-month 
        period), that directly and significantly contributed to the 
        enhancement of Iran's ability to develop petroleum resources of 
        Iran; or
            ``(B) on or after the date of the enactment of the Iran 
        Diplomatic Enhancement Act of 2009, 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; or
            ``(2) on or after the date of the enactment of the Iran 
        Diplomatic Enhancement Act of 2009--
                    ``(A) provided Iran with refined petroleum 
                resources;
                    ``(B) engaged in an activity, including production, 
                brokerage, insurance, and tanker delivery services, 
                that could contribute to Iran's ability to import 
                refined petroleum resources; or
                    ``(C) provided Iran with goods, services, or 
                technology for refining petroleum.''.
    (b) International Policy.--Section 4 of the Iran Sanctions Act of 
1996 (50 U.S.C. 1701 note) is amended by adding at the end the 
following:
    ``(g) United States Policy Toward Iran.--It shall be the policy of 
the United States to encourage foreign governments--
            ``(1) to direct state-owned entities to cease all 
        investment in Iran's energy sector and all exports of refined 
        petroleum resources to Iran; and
            ``(2) to persuade, and, where possible, require private 
        entities based in their territories to cease all investment in 
        Iran's energy sector and all exports of refined petroleum 
        resources to Iran.''.
    (c) Presidential Waiver.--Section 9(c)(2)(C) of such Act is amended 
by striking ``section 5(a) or section 5(b) to Iran's ability to, 
respectively, develop its petroleum resources or its weapons of mass 
destruction or other military capabilities'' and inserting ``section 
5(a)(1), section 5(a)(2), or section 5(b) to Iran's ability to, 
respectively, develop its petroleum resources, import refined petroleum 
resources or refine petroleum, or develop its weapons of mass 
destruction or other military capabilities''.
    (d) Reports on United States Efforts To Curtail the Export of 
Refined Petroleum to Iran.--Section 10 of such Act is amended by adding 
at the end the following new subsection:
    ``(d) Reports on Refined Petroleum Exports to Iran.--
            ``(1) Semiannual reports.--Not later than 6 months after 
        the date of the enactment of the Iran Diplomatic Enhancement 
        Act of 2009, and every 6 months thereafter, the President shall 
        transmit to the appropriate congressional committees a report 
        describing, with respect to the preceding 6-month period--
                    ``(A) any person that has provided Iran with 
                refined petroleum resources, and the petroleum 
                resources so provided;
                    ``(B) any activity, including production, 
                brokerage, insurance, and tanker delivery services, 
                engaged in that could contribute to Iran's ability to 
                import refined petroleum resources;
                    ``(C) any person that has provided Iran with goods, 
                services, or technology for refining petroleum, and the 
                goods, services, or technology so provided; and
                    ``(D) steps taken by the President to carry out the 
                policy set forth in section 4(g).
            ``(2) Additional information.--With respect to each matter 
        reported under subparagraph (A), (B), or (C) of paragraph (1), 
        the President shall describe the steps that the United States 
        has taken to respond to the provision of refined petroleum 
        resources described in paragraph (1)(A), the activity described 
        in paragraph (1)(B), or the provision of goods, services, or 
        technology described in paragraph (1)(C), as the case may 
        be.''.
Iran Diplomatic Enhancement Act of 2009 - Amends the Iran Sanctions Act of 1996 to direct the President to impose two or more sanctions under such Act if a person has, with actual knowledge: (1) on or after the date of enactment of such Act made an investment of $40 million or more (or any combination of investments of at least $10 million which in the aggregate equals or exceeds $40 million in any 12-month period) that significantly contributed to Iran's ability to develop its petroleum resources; (2) on or after the date of enactment of the Iran Diplomatic Enhancement Act of 2009 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; or (3) on or after the date of enactment of the Iran Diplomatic Enhancement Act of 2009 provided Iran with refined petroleum resources, engaged in an activity that could contribute to the enhancement of Iran's ability to import refined petroleum resources, or provided Iran with goods, services, or technology for refining petroleum. (Current law imposes sanctions upon investments of $40 million or more and does not include refined petroleum resource imports.)

Extends existing presidential waiver authority to such activities.

Directs the President to report to the appropriate congressional committees every six months on such activities.
To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts with respect to Iran by expanding economic sanctions against Iran to include refined petroleum, and for other purposes.