I 

111TH CONGRESS 

1ST SESSION H. R. 1985 

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. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2009 

Mr. KIRK (for himself, Mr. SHERMAN, Mr. WEXLER, Mr. KLEIN of Florida, 

Mr. BLUNT, Mr. MCMAHON, Mr. LOBIONDO, Mr. CHAFFETZ, Mr. LINDER, Ms. KOSMAS, Mr. SCHOCK, Mr. BURTON of Indiana, Ms. FOXX, Mr. 

SENSENBRENNER, Mr. MARCHANT, Mr. LAMBORN, Mrs. MILLER of 

Michigan, Ms. BERKLEY, Mr. BILIRAKIS, Mrs. MYRICK, Mr. MCHENRY, 

Mr. REHBERG, Mr. GARRETT of New Jersey, Mr. PLATTS, and Mr. 

SHIMKUS) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Oversight and Government Reform, and Ways and Means, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

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 to include refined 

petroleum, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Iran Diplomatic En3 hancement Act of 2009’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds the following: 

6 (1) The Islamic Republic of Iran is a party to 

7 the Treaty on the Non-Proliferation of Nuclear 

8 Weapons (NPT). 

9 (2) Iran is a member of the International 

10 Atomic Energy Agency (IAEA). 

11 (3) On July 31, 2006, the United Nations Se12 curity Council (UNSC) adopted Resolution 1696, 

13 setting a deadline of August 31, 2006, for Iran’s 

14 full, unconditional, and immediate compliance with 

15 its obligations under the NPT. 

16 (4) Iran is in violation of UNSC Resolution 

17 1696. 

18 (5) On December 23, 2006, the UNSC adopted 

19 Resolution 1737, issuing a legally binding order that 

20 Iran immediately suspend all enrichment-related and 

21 reprocessing activities and work on all heavy water22 related projects, and imposing economic sanctions on 

23 Iran until such time as it has fully complied with its 

24 obligations. 

25 (6) Iran is in violation of UNSC Resolution 

26 1737. 

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1 (7) On March 24, 2007, the UNSC adopted 

2 Resolution 1747, imposing further economic sanc3 tions on Iran for its noncompliance with previous 

4 UNSC resolutions. 

5 (8) Iran is in violation of UNSC Resolution 

6 1747. 

7 (9) On March 3, 2008, the UNSC adopted Res8 olution 1803, imposing further economic sanctions 

9 on Iran for its noncompliance with previous UNSC 

10 resolutions. 

11 (10) Iran is in violation of UNSC Resolution 

12 1803. 

13 (11) On September 27, 2008, the UNSC adopt14 ed Resolution 1835, demanding that Iran imme15 diately comply with previous UNSC resolutions. 

16 (12) Iran is in violation of UNSC 1835. 

17 (13) According to the IAEA, Iran has installed 

18 2 or 3 types of next-generation centrifuges at 

19 Natanz FEP, including the IR–2 and the IR–3. 

20 (14) On October 26, 2008, IAEA inspectors 

21 were unable to carry out a scheduled design infor22 mation verification visit to the Arak Heavy Water 

23 Reactor. 

24 (15) According to the IAEA, as of January 31, 

25 2009, Iran had produced a total of some 1,010 kilomstockstill on PROD1PC66 with BILLS

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1 grams of low enriched uranium hexafluoride, which 

2 is 30 percent higher than IAEA estimates and suffi3 cient for a nuclear weapons breakout capability. 

4 (16) According to the IAEA’s February 19, 

5 2009, report, Iran had installed more than 5,400 

6 centrifuges. 

7 (17) According to the IAEA’s February 19, 

8 2009, report, Iran is producing fuel rods containing 

9 uranium pellets for its IR–40 heavy water reactor. 

10 (18) According to the IAEA, the IAEA sought 

11 and was denied permission by Iran to visit the reac12 tor itself in February 2009, which, according to the 

13 IAEA, ‘‘could adversely impact the IAEA’s ability to 

14 carry out effective safeguards at that facility’’. 

15 (19) As evidenced by the February 3, 2009, 

16 launch of the Omid satellite into space using the 

17 Safir 2-stage space launch vehicle, Iran continues to 

18 expand its development of ballistic missiles. 

19 (20) According to the IAEA, as of its February 

20 19, 2009, report, Iran has not answered IAEA ques21 tions ‘‘about possible military dimensions of Iran’s 

22 nuclear programme’’. 

23 (21) Up to 40 percent of Iranian gasoline 

24 comes from imports. 

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1 (22) Over the course of the past year, Iran pur2 chased nearly all of this gasoline from just six com3 panies, five of them European (the Swiss firm Vitol; 

4 the Swiss/Dutch firm Trafigura; the French firm 

5 Total; the Swiss firm Glencore; British Petroleum) 

6 and one Indian company, Reliance Industries. 

7 (23) In February 2009, Vitol and Trafigura 

8 supplied some 80 percent of Iran’s gasoline imports, 

9 while Reliance Industries and British Petroleum re10 portedly did not supply gasoline to Iran that month. 

11 (24) In light of the extensive relationship be12 tween the United States and Switzerland, it is a 

13 matter of particular concern that Swiss firms supply 

14 more than 80 percent of Iran’s gasoline imports. 

15 (25) The majority of tankers carrying gasoline 

16 to Iran are insured by Lloyds of London. 

17 (26) An interruption or significant limiting of 

18 the supply of gasoline to Iran would considerably im19 pact the Iranian economy. 

20 (27) An international restriction of gasoline ex21 ports to Iran would significantly bolster current dip22 lomatic initiatives. 

23 (28) On June 4, 2008, then-Senator Barack 

24 Obama said, ‘‘we should work with Europe, Japan, 

25 and the Gulf states to find every avenue outside the 

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1 U.N. to isolate the Iranian regime—from cutting off 

2 loan guarantees and expanding financial sanctions, 

3 to banning the export of refined petroleum to Iran’’. 

4 (29) On October 7, 2008, then-Senator Barack 

5 Obama said, ‘‘Iran right now imports gasoline . . . 

6 if we can prevent them from importing the gasoline 

7 that they need . . . that starts changing their cost8 benefit analysis. That starts putting the squeeze on 

9 them.’’. 

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

11 1996. 

12 (a) EXPANSION OF SANCTIONS TO REFINED PETRO13 LEUM.—Section 5(a) of the Iran Sanctions Act of 1996 

14 (50 U.S.C. 1701 note) is amended to read as follows: 

15 ‘‘(a) SANCTIONS WITH RESPECT TO THE DEVELOP16 MENT OF PETROLEUM RESOURCES OF IRAN AND EXPORT

17 OF REFINED PETROLEUM RESOURCES TO IRAN.—Except 

18 as provided in subsection (f), the President shall impose 

19 2 or more of the sanctions described in paragraphs (1) 

20 through (6) of section 6 if the President determines that 

21 a person has, with actual knowledge— 

22 ‘‘(1)(A) on or after the date of the enactment 

23 of this Act, made an investment of $40,000,000 or 

24 more (or any combination of investments of at least 

25 $10,000,000 each, which in the aggregate equals or 

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1 exceeds $40,000,000 in any 12-month period), that 

2 directly and significantly contributed to the enhance3 ment of Iran’s ability to develop petroleum resources 

4 of Iran; or 

5 ‘‘(B) on or after the date of the enactment of 

6 the Iran Diplomatic Enhancement Act of 2009, 

7 made an investment of $20,000,000 or more (or any 

8 combination of investments of at least $5,000,000 

9 each, which in the aggregate equals or exceeds 

10 $20,000,000 in any 12-month period), that directly 

11 and significantly contributed to the enhancement of 

12 Iran’s ability to develop petroleum resources of Iran; 

13 or 

14 ‘‘(2) on or after the date of the enactment of 

15 the Iran Diplomatic Enhancement Act of 2009— 

16 ‘‘(A) provided Iran with refined petroleum 

17 resources; 

18 ‘‘(B) engaged in an activity, including pro19 duction, brokerage, insurance, and tanker deliv20 ery services, that could contribute to Iran’s 

21 ability to import refined petroleum resources; or 

22 ‘‘(C) provided Iran with goods, services, or 

23 technology for refining petroleum.’’. 

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1 (b) INTERNATIONAL POLICY.—Section 4 of the Iran 

2 Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended 

3 by adding at the end the following: 

4 ‘‘(g) UNITED STATES POLICY TOWARD IRAN.—It 

5 shall be the policy of the United States to encourage for6 eign governments— 

7 ‘‘(1) to direct state-owned entities to cease all 

8 investment in Iran’s energy sector and all exports of 

9 refined petroleum resources to Iran; and 

10 ‘‘(2) to persuade, and, where possible, require 

11 private entities based in their territories to cease all 

12 investment in Iran’s energy sector and all exports of 

13 refined petroleum resources to Iran.’’. 

14 (c) PRESIDENTIAL WAIVER.—Section 9(c)(2)(C) of 

15 such Act is amended by striking ‘‘section 5(a) or section 

16 5(b) to Iran’s ability to, respectively, develop its petroleum 

17 resources or its weapons of mass destruction or other mili18 tary capabilities’’ and inserting ‘‘section 5(a)(1), section 

19 5(a)(2), or section 5(b) to Iran’s ability to, respectively, 

20 develop its petroleum resources, import refined petroleum 

21 resources or refine petroleum, or develop its weapons of 

22 mass destruction or other military capabilities’’. 

23 (d) REPORTS ON UNITED STATES EFFORTS TO CUR24 TAIL THE EXPORT OF REFINED PETROLEUM TO IRAN.— 

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1 Section 10 of such Act is amended by adding at the end 

2 the following new subsection: 

3 ‘‘(d) REPORTS ON REFINED PETROLEUM EXPORTS

4 TO IRAN.— 

5 ‘‘(1) SEMIANNUAL REPORTS.—Not later than 6 

6 months after the date of the enactment of the Iran 

7 Diplomatic Enhancement Act of 2009, and every 6 

8 months thereafter, the President shall transmit to 

9 the appropriate congressional committees a report 

10 describing, with respect to the preceding 6-month 

11 period— 

12 ‘‘(A) any person that has provided Iran 

13 with refined petroleum resources, and the petro14 leum resources so provided; 

15 ‘‘(B) any activity, including production, 

16 brokerage, insurance, and tanker delivery serv17 ices, engaged in that could contribute to Iran’s 

18 ability to import refined petroleum resources; 

19 ‘‘(C) any person that has provided Iran 

20 with goods, services, or technology for refining 

21 petroleum, and the goods, services, or tech22 nology so provided; and 

23 ‘‘(D) steps taken by the President to carry 

24 out the policy set forth in section 4(g). 

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1 ‘‘(2) ADDITIONAL INFORMATION.—With respect 

2 to each matter reported under subparagraph (A), 

3 (B), or (C) of paragraph (1), the President shall de4 scribe the steps that the United States has taken to 

5 respond to the provision of refined petroleum re6 sources described in paragraph (1)(A), the activity 

7 described in paragraph (1)(B), or the provision of 

8 goods, services, or technology described in paragraph 

9 (1)(C), as the case may be.’’. 

Æ 

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