SECTION 1. SMALL QUANTITIES PROTOCOL.

    (a) Findings.--Congress finds the following:
            (1) There are 87 countries that are signatories to the 
        Small Quantities Protocol as part of their existing safeguards 
        and inspection agreement with the International Atomic Energy 
        Agency (IAEA).
            (2) The Small Quantities Protocol was originally intended 
        to conserve limited safeguards resources by foregoing 
        inspections in small countries in stable regions that had 
        little or no nuclear materials and no nuclear facilities.
            (3) Unfortunately, at a time when terrorism and private 
        nuclear ``black-market'' supplier networks exist and flourish 
        by taking advantage of small countries with lax government 
        regulations and oversight, the Small Quantities Protocol may 
        become a hindrance to the timely detection by the IAEA of 
        illicit nuclear proliferation activities.
            (4) It has also become clear that some countries, such as 
        Saudi Arabia, are not in secure and stable regions of the world 
        and concerns have been raised about their possible interest in 
        nuclear technology.
            (5) Saudi Arabia, a signatory to a Small Quantities 
        Protocol as of June 16, 2005, is one of 27 non-nuclear members 
        of the Treaty on the Non-Proliferation of Nuclear Weapons (21 
        UST 483) (commonly referred to as the ``Nuclear 
        Nonproliferation Treaty'' or the ``NPT'') but is only ``willing 
        to provide'' the IAEA with additional information and access 
        ``if all other parties'' are required to comply.
            (6) The Small Quantities Protocol allows countries to 
        possess up to the following amounts of nuclear material without 
        having to report such to the IAEA:
                    (A) Ten tons of natural uranium.
                    (B) Twenty tons of depleted uranium, depending on 
                the degree of enrichment.
                    (C) One kilogram of plutonium.
            (7) Countries party to the Small Quantities Protocol can 
        continue to secretly work on nuclear facilities for up to six 
        months before such facilities are operational.
            (8) The Small Quantities Protocol therefore makes it 
        difficult for the IAEA to evaluate the nuclear program of a 
        Small Quantities Protocol country or to verify that such a 
        country meets the conditions required to operate under the 
        Small Quantities Protocol.
            (9) According to an IAEA report circulated to the Member 
        States on the Board of Governors of the IAEA, the Small 
        Quantities Protocol ``has the effect of holding in abeyance the 
        implementation of most of the safeguard's measures'' as well as 
        limiting ``obligations to provide certain information'' and the 
        ``right to request access to relevant locations''.
            (10) The Additional Protocol to the Safeguards Agreements 
        between the IAEA and Member States of the IAEA empowers the 
        IAEA to seek a broad range of information about all aspects of 
        a country's nuclear and nuclear-related activities. The 
        Additional Protocol also provides broader right of access for 
        IAEA inspectors to nuclear and nuclear-related facilities and 
        contains measures to improve the effectiveness of safeguards 
        for such activities.
            (11) The Additional Protocol is therefore an important 
        means of addressing some of the concerns outlined above, 
        particularly concerning rights of access to certain 
        information.
    (b) Statement of Congress.--Congress declares that, in light of the 
findings described in subsection (a), the United States should use all 
diplomatic, political, and economic means necessary to persuade all 
countries currently with a Small Quantities Protocol to renounce their 
Small Quantities Protocol and to sign, ratify, and implement the 
Additional Protocol at the earliest possible date.
    (c) United States Policy.--
            (1) Requirements.--
                    (A) In general.--The President shall use all 
                available political, economic, and diplomatic tools to 
                ensure that each United States ally or recipient of 
                United States assistance that has signed a Small 
                Quantities Protocol with the IAEA, also signs, 
                ratifies, and implements the Additional Protocol and 
                provides immediate access for IAEA inspectors to its 
                nuclear-related facilities.
                    (B) Definition.--In this paragraph, the term 
                ``United States assistance'' means assistance under any 
                provision of law with respect to which amounts are 
                appropriated under the foreign operations, export 
                financing, and related programs appropriations Act for 
                a fiscal year.
            (2) Limitation on assistance.--If a country has signed a 
        Small Quantities Protocol with the IAEA but does not satisfy 
        the requirements specified in paragraph (1), the President 
        shall prohibit the provision or transfer of each of the 
        following to the country:
                    (A) Assistance under part II of the Foreign 
                Assistance Act (22 U.S.C. 2301 et seq.), other than 
                assistance under chapter 6 of part II of such Act (22 
                U.S.C. 2348 et seq.).
                    (B) Assistance under section 23 of the Arms Export 
                Control Act (22 U.S.C. 2763).
                    (C) Defense articles, defense services, or design 
                and construction services under the Arms Export Control 
                Act (22 U.S.C. 2751 et seq.), including defense 
                articles and defense services licensed or approved for 
                export under section 38 of that Act (22 U.S.C. 2778).
                    (D) Dual use goods or technology. In this 
                subparagraph, the term ``dual use goods or technology'' 
                means goods or technology that are specifically 
                designed or developed for civil purposes but which also 
                may be used or deployed in a military or proliferation 
                mode. Such term does not include purely commercial 
                items.
            (3) Waiver.--The President may waive the limitation on 
        assistance to a country described in paragraph (2) for not more 
        than one fiscal year if, at least 30 days before such waiver is 
        to take effect, the President certifies to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate that--
                    (A) such waiver is vital to the national security 
                of the United States; and
                    (B) such country has undertaken substantial 
                measures to comply with the requirements of paragraph 
                (1).
    (d) Actions at IAEA.--The President shall direct the United States 
Permanent Representative to the IAEA to use the voice, vote, and 
influence of the United States at the IAEA to make every effort to 
ensure that the IAEA changes the policy regarding the Small Quantities 
Protocol in order to--
            (1) rescind and eliminate the Small Quantities Protocol;
            (2) require that any IAEA Member State that has previously 
        signed a Small Quantities Protocol to sign, ratify, and 
        implement the Additional Protocol, provide immediate access for 
        IAEA inspectors to its nuclear-related facilities, and agree to 
        the strongest inspections regime of its nuclear efforts; and
            (3) require that any IAEA Member State that does not comply 
        with paragraph (2) to be ineligible to receive nuclear 
        material, technology, equipment, or assistance from any IAEA 
        Member State and subject to the penalties described in 
        subsection (e).
    (e) Penalties.--
            (1) In general.--The President shall direct the United 
        States Permanent Representative to the IAEA to use the voice, 
        vote, and influence of the United States at the IAEA to ensure 
        that a Member State of the IAEA that is under investigation for 
        a breach of or noncompliance with its IAEA obligations or the 
        purposes and principles of the Charter of the United Nations 
        has its privileges suspended, including--
                    (A) limiting its ability to vote on its case;
                    (B) being prevented from receiving any technical 
                assistance; and
                    (C) being prevented from hosting meetings.
            (2) Termination of penalties.--The penalties specified 
        under paragraph (1) shall be terminated when such investigation 
        is concluded and such Member State is no longer in such breach 
        or noncompliance.
    (f) Report.--Not later than 90 days after the date of the enactment 
of this Act and every 180 days thereafter, the President shall submit 
to the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report that includes the following information:
            (1) A description of progress made towards achieving the 
        requirements described in subsection (c) and the policy changes 
        described in subsection (d).
            (2) A description of any penalties under subsection (e) 
        that have been imposed and a list of those countries that have 
        been subject to such penalties.
            (3) A list of countries that have a Small Quantities 
        Protocol with the IAEA, including--
                    (A) their level of cooperation with safeguards 
                inspections of their nuclear facilities;
                    (B) whether they have signed, ratified, and 
                implemented the Additional Protocol;
                    (C) the type and amount of assistance received from 
                the IAEA; and
                    (D) the type and amount of assistance received from 
                each IAEA Member State.
            (4) A description of United States strategy to ensure 
        compliance by United States allies and recipients of United 
        States assistance with the requirements described in subsection 
        (c) and the policy changes described in subsection (d).
Directs the President to use all available political, economic, and diplomatic tools to ensure that each U.S. ally or recipient of certain U.S. assistance that has signed a Small Quantities Protocol with the International Atomic Energy Agency (IAEA) also signs and implements the Additional Protocol and provides immediate access for IAEA inspectors to its nuclear-related facilities.

Prohibits certain defense and dual use assistance to a country that has signed a Small Quantities Protocol but does not satisfy such implementation and inspection requirements. Authorizes the President to waive such prohibitions for up to one fiscal year for reasons of national security.

 Directs the President to require the U.S. Permanent Representative to the IAEA to use U.S. influence to change IAEA policy regarding the Small Quantities Protocol in order to: (1) eliminate the Small Quantities Protocol; (2) require that any IAEA member state that has signed a Small Quantities Protocol sign and implement the Additional Protocol, and provide IAEA inspectors with access to its nuclear-related facilities; and (3) require that any IAEA member state that does not comply with such implementation and inspection requirements be ineligible to receive nuclear material, technology, equipment, or assistance from any IAEA member state, and be subject to penalties as provided for by this Act.
To ensure that countries that have signed a Small Quantities Protocol also sign, ratify, and implement the Additional Protocol and provide access by IAEA inspectors to their nuclear-related facilities and to direct the United States Permanent Representative to the IAEA to make every effort to rescind and eliminate the Small Quantities Protocol and ensure compliance by all Member States of the IAEA with IAEA obligations and the purposes and principles of the Charter of the United Nations.