SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Nuclear Proliferation 
Prevention Act of 1998''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Iran remains the world's leading sponsor of 
        international terrorism and is on the Department of State's 
        list of countries that provide support for acts of 
        international terrorism.
            (2) Iran has repeatedly called for the destruction of 
        Israel and Iran supports organizations, such as Hizballah, 
        Hamas, and the Palestine Islamic Jihad, which are responsible 
        for terrorist attacks against Israel.
            (3) Iranian officials have stated their intent to complete 
        at least three nuclear power plants by 2015 and are currently 
        working to complete the Bushehr nuclear power plant located on 
        the Persian Gulf coast.
            (4) The United States has publicly opposed the completion 
        of reactors at the Bushehr nuclear power plant because the 
        transfer of civilian nuclear technology and training could help 
        to advance Iran's nuclear weapons program.
            (5) In an April 1997 hearing before the Subcommittee on 
        Near Eastern and South Asian Affairs of the Committee on 
        Foreign Relations of the Senate, the former Director of the 
        Central Intelligence Agency, James Woolsey, stated that through 
        the operation of the nuclear power reactor at the Bushehr 
        nuclear power plant, Iran will develop substantial expertise 
        relevant to the development of nuclear weapons.
            (6) Construction of the Bushehr nuclear power plant was 
        halted following the 1979 revolution in Iran because the former 
        West Germany refused to assist in the completion the plant due 
        to concerns that completion of the plant could provide Iran 
        with expertise and technology which could advance Iran's 
        nuclear weapons program.
            (7) Iran is building up its offensive military capacity in 
        other areas as evidenced by its recent testing of engines for 
        ballistic missiles capable of carrying 2,200 pound warheads 
        more than 800 miles, within range of strategic targets in 
        Israel.
            (8) In January 1995 Iran signed a $780,000,000 contract 
        with the Russian Federation for Atomic Energy (MINATOM) to 
        complete a VVER-1000 pressurized-light water reactor at the 
        Bushehr nuclear power plant.
            (9) In March of 1998, Russia confirmed its intention to 
        complete work on the two reactors at the Bushehr nuclear power 
        plant and agreed in principle to the construction of two more 
        reactors at the Bushehr site.
            (10) At least one reactor could be operational within a few 
        years and it would subsequently provide Iran with substantial 
        expertise to advance its nuclear weapons program.
            (11) Iran ranks tenth among the 105 nations receiving 
        assistance from the technical cooperation program of the 
        International Atomic Energy Agency.
            (12) Between 1995 and 1999, the International Atomic Energy 
        Agency has provided and is expected to provide a total of 
        $1,550,000 through its Technical Assistance and Cooperation 
        Fund for the Iranian nuclear power program, including reactors 
        at the Bushehr nuclear power plant.
            (13) The United States provides annual contributions to the 
        International Atomic Energy Agency which total more than 25 
        percent of the annual assessed budget of the Agency and the 
        United States also provides annual voluntary contributions to 
        the Technical Assistance and Cooperation Fund of the Agency 
        which total approximately 32 percent ($16,000,000 in 1996) of 
        the annual budget of the program.
            (14) The United States should not voluntarily provide 
        funding for the completion of nuclear power reactors which 
        could provide Iran with substantial expertise to advance its 
        nuclear weapons program and potentially pose a threat to the 
        United States or its allies.
            (15) Iran has no need for nuclear energy because of its 
        immense oil and natural gas reserves which are equivalent to 
        9.3 percent of the world's reserves and Iran has 73,000,000,000 
        cubic feet of natural gas, an amount second only to the natural 
        gas reserves of Russia.

SEC. 3. WITHHOLDING OF VOLUNTARY CONTRIBUTIONS TO THE INTERNATIONAL 
              ATOMIC ENERGY AGENCY FOR PROGRAMS AND PROJECTS IN IRAN.

    Section 307 of the Foreign Assistance Act of 1961 (22 U.S.C. 2227) 
is amended by adding at the end the following:
    ``(d) Notwithstanding subsection (c), the limitations of subsection 
(a) shall apply to programs and projects of the International Atomic 
Energy Agency in Iran, unless the Secretary of State makes a 
determination in writing to the Committee on International Relations of 
the House of Representatives and the Committee on Foreign Relations of 
the Senate pursuant to section 4(a)(1) of the Iran Nuclear 
Proliferation Prevention Act of 1998, that such programs and projects 
are consistent with United States nuclear nonproliferation and safety 
goals and will not provide Iran with training or expertise relevant to 
the development of nuclear weapons.''.

SEC. 4. ANNUAL REVIEW BY SECRETARY OF STATE OF PROGRAMS AND PROJECTS OF 
              THE INTERNATIONAL ATOMIC ENERGY AGENCY; UNITED STATES 
              OPPOSITION TO PROGRAMS AND PROJECTS OF THE AGENCY IN 
              IRAN.

    (a) Annual Review.--
            (1) In general.--The Secretary of State shall undertake a 
        comprehensive annual review of all programs and projects of the 
        International Atomic Energy Agency in the countries described 
        in section 307(a) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2227(a)) and shall determine if such programs and 
        projects are consistent with United States nuclear 
        nonproliferation and safety goals.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act and on an annual basis thereafter for 5 
        years, the Secretary shall prepare and submit to the Congress a 
        report containing the results of the review under paragraph 
        (1).
    (b) Opposition to Certain Programs and Projects of International 
Atomic Energy Agency.--The Secretary of State shall direct the United 
States representative to the International Atomic Energy Agency to 
oppose programs of the Agency that are determined by the Secretary 
under the review conducted under subsection (a)(1) to be inconsistent 
with nuclear nonproliferation and safety goals of the United States.

SEC. 5. REPORTING REQUIREMENTS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act and on an annual basis thereafter for 5 years, 
the Secretary of State, in consultation with the United States 
representative to the International Atomic Energy Agency, shall prepare 
and submit to the Congress a report that--
            (1) describes the total amount of annual assistance to Iran 
        from the International Atomic Energy Agency, a list of Iranian 
        officials in leadership positions at the Agency, the expected 
        timeframe for the completion of the nuclear power reactors at 
        the Bushehr nuclear power plant, and a summary of the nuclear 
        materials and technology transferred to Iran from the Agency in 
        the preceding year which could assist in the development of 
        Iran's nuclear weapons program; and
            (2) contains a description of all programs and projects of 
        the International Atomic Energy Agency in each country 
        described in section 307(a) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2227(a)) and any inconsistencies between the 
        technical cooperation and assistance programs and projects of 
        the Agency and United States nuclear nonproliferation and 
        safety goals in these countries.
    (b) Additional Requirement.--The report required to be submitted 
under subsection (a) shall be submitted in an unclassified form, to the 
extent appropriate, but may include a classified annex.

SEC. 7. SENSE OF THE CONGRESS.

    It is the sense of the Congress that the United States Government 
should pursue internal reforms at the International Atomic Energy 
Agency that will ensure that all programs and projects funded under the 
Technical Cooperation and Assistance Fund of the Agency are compatible 
with United States nuclear nonproliferation policy and international 
nuclear nonproliferation norms.

            Passed the House of Representatives October 20, 1998.

            Attest:

                                                                 Clerk.
Iran Nuclear Proliferation Prevention Act of 1998 - Amends the Foreign Assistance Act of 1961 to withhold U.S. voluntary contributions from programs and projects of the International Atomic Energy Agency in Iran unless the Secretary of State makes a determination in writing to certain congressional committees that such programs and projects are consistent with U.S. nuclear nonproliferation and safety goals and will not provide Iran with training or expertise relevant to nuclear programs' development.  Instructs the Secretary to review and report to the Congress annually for five years on all Agency programs and projects in specified countries to determine if they are consistent with U.S. nuclear nonproliferation and safety goals.  Requires the Secretary to direct the U.S. representative to the Agency to oppose Agency programs determined inconsistent with U.S. nuclear nonproliferation and safety goals. 
Directs the Secretary to report annually to the Congress for five years on specified aspects of annual Agency assistance to Iran, including nuclear materials technology transfer, and inconsistencies between Agency technical assistance programs and U.S. nuclear nonproliferation and safety goals. 
Expresses the sense of the Congress that the United States should pursue internal Agency reforms that will ensure that all programs funded under the Technical Cooperation and Assistance Fund are compatible with U.S. nuclear nonproliferation policy and international nuclear nonproliferation norms.
Iran Nuclear Proliferation Prevention Act of 1998