H. R. 1540—351 
pursuant to the International Emergency Economic Powers 
Act (50 U.S.C. 1701 et seq.); and 
(B) may impose sanctions pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
with respect to the Central Bank of Iran. 
(2) EXCEPTION FOR SALES OF FOOD, MEDICINE, AND MEDICAL 
DEVICES.—The President may not impose sanctions under para-
graph (1) with respect to any person for conducting or facili-
tating a transaction for the sale of food, medicine, or medical 
devices to Iran. 
(3) APPLICABILITY OF SANCTIONS WITH RESPECT TO FOREIGN 
CENTRAL BANKS.—Except as provided in paragraph (4), sanc-
tions imposed under paragraph (1)(A) shall apply with respect 
to a foreign financial institution owned or controlled by the 
government of a foreign country, including a central bank of 
a foreign country, only insofar as it engages in a financial 
transaction for the sale or purchase of petroleum or petroleum 
products to or from Iran conducted or facilitated on or after 
that date that is 180 days after the date of the enactment 
of this Act. 
(4) APPLICABILITY OF SANCTIONS WITH RESPECT TO PETRO-
LEUM TRANSACTIONS.— 
(A) REPORT REQUIRED.—Not later than 60 days after 
the date of the enactment of this Act, and every 60 days 
thereafter, the Administrator of the Energy Information 
Administration, in consultation with the Secretary of the 
Treasury, the Secretary of State, and the Director of 
National Intelligence, shall submit to Congress a report 
on the availability and price of petroleum and petroleum 
products produced in countries other than Iran in the 60- 
day period preceding the submission of the report. 
(B) DETERMINATION REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, and every 
180 days thereafter, the President shall make a determina-
tion, based on the reports required by subparagraph (A), 
of whether the price and supply of petroleum and petroleum 
products produced in countries other than Iran is sufficient 
to permit purchasers of petroleum and petroleum products 
from Iran to reduce significantly in volume their purchases 
from Iran. 
(C) APPLICATION OF SANCTIONS.—Except as provided 
in subparagraph (D), sanctions imposed under paragraph 
(1)(A) shall apply with respect to a financial transaction 
conducted or facilitated by a foreign financial institution 
on or after the date that is 180 days after the date of 
the enactment of this Act for the purchase of petroleum 
or petroleum products from Iran if the President deter-
mines pursuant to subparagraph (B) that there is a suffi-
cient supply of petroleum and petroleum products from 
countries other than Iran to permit a significant reduction 
in the volume of petroleum and petroleum products pur-
chased from Iran by or through foreign financial institu-
tions. 
(D) EXCEPTION.—Sanctions imposed pursuant to para-
graph (1) shall not apply with respect to a foreign financial 
institution if the President determines and reports to Con-
gress, not later than 90 days after the date on which
H. R. 1540—352 
the President makes the determination required by 
subparagraph (B), and every 180 days thereafter, that the 
country with primary jurisdiction over the foreign financial 
institution has significantly reduced its volume of crude 
oil purchases from Iran during the period beginning on 
the date on which the President submitted the last report 
with respect to the country under this subparagraph. 
(5) WAIVER.—The President may waive the imposition of 
sanctions under paragraph (1) for a period of not more than 
120 days, and may renew that waiver for additional periods 
of not more than 120 days, if the President— 
(A) determines that such a waiver is in the national 
security interest of the United States; and 
(B) submits to Congress a report— 
(i) providing a justification for the waiver; and 
(ii) that includes any concrete cooperation the 
President has received or expects to receive as a result 
of the waiver. 
(e) MULTILATERAL DIPLOMACY INITIATIVE.— 
(1) IN GENERAL.—The President shall— 
(A) carry out an initiative of multilateral diplomacy 
to persuade countries purchasing oil from Iran— 
(i) to limit the use by Iran of revenue from pur-
chases of oil to purchases of non-luxury consumers 
goods from the country purchasing the oil; and 
(ii) to prohibit purchases by Iran of— 
(I) military or dual-use technology, including 
items— 
(aa) in the Annex to the Missile Tech-
nology Control Regime Guidelines; 
(bb) in the Annex on Chemicals to the 
Convention on the Prohibition of the Develop-
ment, Production, Stockpiling and Use of 
Chemical Weapons and on their Destruction, 
done at Paris January 13, 1993, and entered 
into force April 29, 1997 (commonly known 
as the ‘‘Chemical Weapons Convention’’); 
(cc) in Part 1 or 2 of the Nuclear Suppliers 
Group Guidelines; or 
(dd) on a control list of the Wassenaar 
Arrangement on Export Controls for Conven-
tional Arms and Dual-Use Goods and Tech-
nologies; or 
(II) any other item that could contribute to 
Iran’s conventional, nuclear, chemical, or biological 
weapons program; and 
(B) conduct outreach to petroleum-producing countries 
to encourage those countries to increase their output of 
crude oil to ensure there is a sufficient supply of crude 
oil from countries other than Iran and to minimize any 
impact on the price of oil resulting from the imposition 
of sanctions under this section. 
(2) REPORT REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, and every 180 days thereafter, 
the President shall submit to Congress a report on the efforts
H. R. 1540—353 
of the President to carry out the initiative described in para-
graph (1)(A) and conduct the outreach described in paragraph 
(1)(B) and the results of those efforts. 
(f) FORM OF REPORTS.—Each report submitted under this sec-
tion shall be submitted in unclassified form, but may contain a 
classified annex. 
(g) IMPLEMENTATION; PENALTIES.— 
(1) IMPLEMENTATION.—The President may exercise all 
authorities provided under sections 203 and 205 of the Inter-
national Emergency Economic Powers Act (50 U.S.C. 1702 and 
1704) to carry out this section. 
(2) PENALTIES.—The penalties provided for in subsections 
(b) and (c) of section 206 of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1705) shall apply to a person 
that violates, attempts to violate, conspires to violate, or causes 
a violation of this section or regulations prescribed under this 
section to the same extent that such penalties apply to a 
person that commits an unlawful act described in section 206(a) 
of that Act. 
(h) DEFINITIONS.—In this section: 
(1) ACCOUNT; CORRESPONDENT ACCOUNT; PAYABLE-THROUGH 
ACCOUNT.—The terms ‘‘account’’, ‘‘correspondent account’’, and 
‘‘payable-through account’’ have the meanings given those terms 
in section 5318A of title 31, United States Code. 
(2) FOREIGN
FINANCIAL
INSTITUTION.—The term ‘‘foreign 
financial institution’’ has the meaning of that term as deter-
mined by the Secretary of the Treasury pursuant to section 
104(i) of the Comprehensive Iran Sanctions, Accountability, 
and Divestment Act of 2010 (22 U.S.C. 8513(i)). 
(3) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ means— 
(A) a natural person who is a citizen or resident of 
the United States or a national of the United States (as 
defined in section 101(a) of the Immigration and Nation-
ality Act (8 U.S.C. 1101(a))); and 
(B) an entity that is organized under the laws of the 
United States or a jurisdiction within the United States. 
TITLE XIII—COOPERATIVE THREAT 
REDUCTION 
Sec. 1301. Specification of cooperative threat reduction programs and funds. 
Sec. 1302. Funding allocations. 
Sec. 1303. Limitation on availability of funds for cooperative biological engagement 
program. 
Sec. 1304. Limitation on use of funds for establishment of centers of excellence in 
countries outside of the former Soviet Union. 
SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
PROGRAMS AND FUNDS. 
(a) SPECIFICATION OF COOPERATIVE THREAT REDUCTION PRO-
GRAMS.—For purposes of section 301 and other provisions of this 
Act, Cooperative Threat Reduction programs are the programs 
specified in section 1501 of the National Defense Authorization 
Act for Fiscal Year 1997 (50 U.S.C. 2362 note).
H. R. 1540—354 
(b) FISCAL YEAR 2012 COOPERATIVE THREAT REDUCTION FUNDS 
DEFINED.—As used in this title, the term ‘‘fiscal year 2012 Coopera-
tive Threat Reduction funds’’ means the funds appropriated pursu-
ant to the authorization of appropriations in section 301 and made 
available by the funding table in section 4301 for Cooperative 
Threat Reduction programs. 
(c) AVAILABILITY OF FUNDS.—Funds appropriated pursuant to 
the authorization of appropriations in section 301 and made avail-
able by the funding table in section 4301 for Cooperative Threat 
Reduction programs shall be available for obligation for fiscal years 
2012, 2013, and 2014. 
SEC. 1302. FUNDING ALLOCATIONS. 
(a) FUNDING
FOR SPECIFIC PURPOSES.—Of the $508,219,000 
authorized to be appropriated to the Department of Defense for 
fiscal year 2012 in section 301 and made available by the funding 
table in section 4301 for Cooperative Threat Reduction programs, 
the following amounts may be obligated for the purposes specified: 
(1) For strategic offensive arms elimination, $63,221,000. 
(2) For chemical weapons destruction, $9,804,000. 
(3) For global nuclear security, $121,143,000. 
(4) For cooperative biological engagement, $259,470,000. 
(5) For proliferation prevention, $28,080,000. 
(6) For threat reduction engagement, $2,500,000. 
(7) For activities designated as Other Assessments/ 
Administrative Costs, $24,001,000. 
(b) REPORT ON OBLIGATION OR EXPENDITURE OF FUNDS FOR 
OTHER PURPOSES.—No fiscal year 2012 Cooperative Threat Reduc-
tion funds may be obligated or expended for a purpose other than 
a purpose listed in paragraphs (1) through (7) of subsection (a) 
until 15 days after the date that the Secretary of Defense submits 
to Congress a report on the purpose for which the funds will 
be obligated or expended and the amount of funds to be obligated 
or expended. Nothing in the preceding sentence shall be construed 
as authorizing the obligation or expenditure of fiscal year 2012 
Cooperative Threat Reduction funds for a purpose for which the 
obligation or expenditure of such funds is specifically prohibited 
under this title or any other provision of law. 
(c) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.— 
(1) IN GENERAL.—Subject to paragraph (2), in any case 
in which the Secretary of Defense determines that it is nec-
essary to do so in the national interest, the Secretary may 
obligate amounts appropriated for fiscal year 2012 for a purpose 
listed in paragraphs (1) through (7) of subsection (a) in excess 
of the specific amount authorized for that purpose. 
(2) NOTICE-AND-WAIT
REQUIRED.—An obligation of funds 
for a purpose stated in paragraphs (1) through (7) of subsection 
(a) in excess of the specific amount authorized for such purpose 
may be made using the authority provided in paragraph (1) 
only after— 
(A) the Secretary submits to Congress notification of 
the intent to do so together with a complete discussion 
of the justification for doing so; and 
(B) 15 days have elapsed following the date of the 
notification.