SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Support for Iraq Oil Trust Act of 
2008''.

SEC. 2. STATEMENT OF POLICY.

    It is the policy of the United States that--
            (1) the people of Iraq should benefit directly from a share 
        of the revenues generated by the hydrocarbon resources of their 
        country; and
            (2) the United States Government should present a plan and 
        provide capacity and economic assistance for the implementation 
        of an Iraq oil trust.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the future of Iraq's oil reserves remains at the heart 
        of political reconciliation in Iraq;
            (2) ensuring that individual Iraqis benefit directly from 
        hydrocarbon revenues is critical to promoting reconciliation 
        and facilitating sustainable stability in Iraq;
            (3) the development and implementation of an oil trust 
        could provide significant benefits to Iraq and its citizens, 
        including by--
                    (A) helping to demonstrate the values at the heart 
                of democratic governance by giving Iraqi citizens a 
                direct stake in the responsible and transparent 
                management of the hydrocarbon resources of Iraq and the 
                use and distribution of hydrocarbon revenues;
                    (B) helping to diffuse the degree and concentration 
                of control of the revenues generated from hydrocarbon 
                resources, thereby reducing the opportunity for and 
                magnitude of corruption;
                    (C) facilitating ``bottom-up'' private sector 
                development, which will be critical to Iraq's future 
                prosperity and economic diversity, by putting revenues 
                from the oil resources of Iraq directly in the hands of 
                its citizens;
                    (D) helping to alleviate the incentive for 
                smuggling or sabotage by providing individual citizens 
                a direct stake in the amount of Iraqi oil that is 
                legally produced and sold;
                    (E) contributing to sustainable security by 
                providing individuals monetary-resource alternatives to 
                cooperating with militias, extremists, and other extra-
                legal entities;
                    (F) providing additional income directly to 
                individual citizens, thereby stimulating 
                entrepreneurship and reducing the reliance on the 
                ability of the central and provincial governments to 
                deliver basic services and execute their budgets; and
                    (G) serving as a model for revenue distribution to 
                other resource-rich countries in the Middle East; and
            (4) the United States should provide assistance to Iraq for 
        implementation of an oil trust.

SEC. 4. UNITED STATES ASSISTANCE TO IRAQ.

    (a) Purpose.--The purpose of this section is to stipulate 
limitations on United States assistance to Iraq for reconstruction 
purposes.
    (b) Limitation.--
            (1) In general.--Unless the Secretary of State submits to 
        the appropriate congressional committees the certification 
        described in subsection (c) within 90 days after the date of 
        the enactment of this Act, 10 percent of United States 
        assistance described in paragraph (4) that is otherwise 
        available to Iraq through the Economic Support Fund shall be 
        withheld.
            (2) Additional withholding of funds.--An additional 10 
        percent of United States assistance described in paragraph (4) 
        that is otherwise available to Iraq through the Economic 
        Support Fund shall be withheld for each additional 30 days 
        after funds are withheld under paragraph (1) until the 
        Secretary of State makes the certification described in 
        subsection (c).
            (3) Release of withheld funds.--Any funds withheld under 
        paragraphs (1) and (2) shall be made available upon submission 
        by the Secretary of State of the certification described in 
        subsection (c).
            (4) Covered assistance.--The assistance referred to in 
        paragraphs (1) and (2) are the following funds:
                    (A) Provincial Reconstruction Development Council 
                Funds.
                    (B) Operations and Maintenance Sustainment.
                    (C) Targeted Development Program.
    (c) Certification.--The certification referred to in subsection (b) 
is a certification submitted by the Secretary of State to the 
appropriate congressional committees that--
            (1) certifies that representatives of the United States 
        Government have presented to Government of Iraq representatives 
        an oil trust plan that includes--
                    (A) background on oil trusts, including those 
                currently used by sovereign nations or territories and 
                states within nations; and
                    (B) options for different types of oil trusts that 
                could be implemented in Iraq; and
            (2) includes a discussion on the steps necessary to 
        implement an oil trust.

SEC. 5. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this Act, the term ``appropriate congressional committees'' 
means--
     (a) the Committee on Armed Services, the Committee on Foreign 
Relations, and the Committee on Appropriations of the Senate; and
    (b) the Committee on Armed Services, the Committee on Foreign 
Affairs, and the Committee on Appropriations of the House of 
Representatives.
Support for Iraq Oil Trust Act of 2008 - Withholds specified percentages of Economic Support Fund assistance for Iraq unless the Secretary of State certifies within specified time periods to the appropriate congressional committees that U.S. government representatives have presented an oil trust plan to Iraqi government representatives.
A bill to require United States Government representatives to present to the Government of Iraq a plan to establish an oil trust.