I 
111TH CONGRESS 
1ST SESSION H. R. 1985 
To amend the Iran Sanctions Act of 1996 to enhance United States diplo-
matic 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. LIN-
DER, 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 Com-
mittee on Foreign Affairs, and in addition to the Committees on Finan-
cial 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 expand-
ing economic sanctions against Iran to include refined 
petroleum, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Iran Diplomatic En-
hancement 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 Se-
curity 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. 
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(7) On March 24, 2007, the UNSC adopted 
Resolution 1747, imposing further economic sanc-
tions 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 Res-
olution 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 adopt-
ed Resolution 1835, demanding that Iran imme-
diately 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 infor-
mation 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 kilo-
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grams of low enriched uranium hexafluoride, which 
is 30 percent higher than IAEA estimates and suffi-
cient 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 reac-
tor 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 ques-
tions ‘‘about possible military dimensions of Iran’s 
nuclear programme’’. 
(21) Up to 40 percent of Iranian gasoline 
comes from imports. 
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(22) Over the course of the past year, Iran pur-
chased nearly all of this gasoline from just six com-
panies, 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 re-
portedly did not supply gasoline to Iran that month. 
(24) In light of the extensive relationship be-
tween 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 im-
pact the Iranian economy. 
(27) An international restriction of gasoline ex-
ports to Iran would significantly bolster current dip-
lomatic 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 
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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 PETRO-
LEUM.—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 DEVELOP-
MENT 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 
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exceeds $40,000,000 in any 12-month period), that 
directly and significantly contributed to the enhance-
ment 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 pro-
duction, brokerage, insurance, and tanker deliv-
ery 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.’’. 
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(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 for-
eign 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 mili-
tary 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 CUR-
TAIL THE EXPORT OF REFINED PETROLEUM TO IRAN.— 
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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 petro-
leum resources so provided; 
‘‘(B) any activity, including production, 
brokerage, insurance, and tanker delivery serv-
ices, 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 tech-
nology so provided; and 
‘‘(D) steps taken by the President to carry 
out the policy set forth in section 4(g). 
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‘‘(2) ADDITIONAL INFORMATION.—With respect 
to each matter reported under subparagraph (A), 
(B), or (C) of paragraph (1), the President shall de-
scribe the steps that the United States has taken to 
respond to the provision of refined petroleum re-
sources 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.’’. 
Æ 
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