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 the importation of refined petroleum.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Sanctions Enhancement Act of 
2007''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Islamic Republic of Iran is a signatory to the 
        Nuclear Non-Proliferation Treaty (NPT).
            (2) Iran is a member of the International Atomic Energy 
        Agency (IAEA).
            (3) Iran has agreed to safeguards to ensure compliance with 
        its non-proliferation commitments under the NPT.
            (4) The IAEA has reported numerous concerns with the 
        implementation of such safeguards to ensure Iran's compliance 
        with its non-proliferation commitments.
            (5) International inspections in 2003 and 2004 of Iran's 
        nuclear program revealed significant undeclared activities with 
        potential application for the development of nuclear weapons.
            (6) According to the IAEA, Iran has not declared the full 
        scope of its nuclear program and has not allowed full and 
        unrestricted access to all its nuclear sites.
            (7) In June 2006, Iran refused to consider economic 
        incentives offered by the five permanent members of the United 
        Nations Security Council (UNSC) and Germany in exchange for a 
        permanent halt to Iran's uranium enrichment program.
            (8) On July 31, 2006, the 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.
            (9) Iran is in violation of UNSC Resolution 1696.
            (10) On March 23, 2007, the Iranian Revolutionary Guard 
        Navy seized 15 British marines and sailors on the same day the 
        UNSC considered a new resolution to sanction the Government of 
        Iran for its continued defiance of the UNSC and the IAEA.
            (11) On March 24, 2007, the UNSC adopted Resolution 1747, 
        imposing further economic sanctions on Iran for its non-
        compliance with previous UNSC resolutions.
            (12) Iran is in violation of UNSC Resolution 1747.
            (13) On May 14, 2007, IAEA Director General Mohammed El-
        Baradei announced that Iran had overcome its technical 
        difficulties and now possesses the knowledge to enrich uranium 
        to weapons-grade level.
            (14) On May 20, 2007, the head of Iran's Atomic Energy 
        Organization announced the Iranian nuclear program was moving 
        ahead as scheduled towards its previously stated goal of 50,000 
        centrifuges running at its Natanz facility.
            (15) On May 23, 2007, the IAEA reported that Iran not only 
        ignored the UNSC's deadline to stop enriching uranium but 
        markedly expanded its enrichment program.
            (16) More than 40 percent of Iranian gasoline comes from 
        imports.
            (17) The Government of Iran is set to impose a daily 
        gasoline ration of three liters for private cars and 15 to 20 
        liters for taxis.
            (18) If the supply of gasoline to Iran is restricted, the 
        impact on Iran's economy would be considerable.
            (19) Diplomatic means present the most effective way to 
        defuse the crisis regarding the Iranian nuclear program.

SEC. 3. AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996.

    (a) Expansion of Sanctions to Refined Petroleum.--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 Development of Petroleum 
Resources of Iran and Export of Refined Petroleum to Iran.--Except as 
provided in subsection (f), the President shall impose two 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) on or after the date of the enactment of this Act, 
        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 December 31, 2007, provided Iran with 
        refined petroleum resources or engaged in an activity that 
        could contribute to the enhancement of Iran's ability to import 
        refined petroleum resources.''.
    (b) 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 military 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, enhance its ability to 
import refined petroleum resources, or develop its weapons of mass 
destruction or other military capabilities''.
    (c) Reports on United States Efforts To Curtail the Export of 
Refined Petroleum to Iran.--Section 10 of such Act is amended by adding 
at the end the following new subsection:
    ``(d) Reports on Refined Petroleum Exports to Iran.--Not later than 
January 30, 2008, and every six months thereafter, the President shall 
transmit to the appropriate congressional committees a report on any 
person who has provided Iran with refined petroleum resources or any 
activity by any person that could contribute to the enhancement of 
Iran's ability to import refined petroleum resources. For each such 
activity, the President shall provide a description of such activity 
and what steps the United States has taken to respond to such 
activity.''.

Summary: Iran Sanctions Enhancement Act of 2007 - Amends the Iran Sanctions Act of 1996 to direct the President to impose two or more sanctions under such Act if a person has, with actual knowledge: (1) made an investment of $20 million or more (or any combination of investments of at least $5 million which in the aggregate equals or exceeds $20 million in any 12-month period) that directly and significantly contributed to Iran's ability to develop its petroleum resources; or (2) on or after December 31, 2007, provided Iran with refined petroleum resources or engaged in an activity that could contribute to the enhancement of Iran's ability to import refined petroleum resources. (Under current law, imposes sanctions upon investments of $40 million and does not include refined petroleum resource imports.)

Extends existing presidential waiver authority to such activities.

Directs the President to report to the appropriate congressional committees every six months on such activities.