A bill to prohibit entities that provide nuclear fuel assemblies to Iran from providing such assemblies to the United States, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iranian Nuclear Trade Prohibition 
Act of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Iran has pursued a nuclear program with assistance from 
        foreign entities and foreign governments.
            (2) It is important that Iran not seek to develop nuclear 
        weapons under the cover of a civilian nuclear power program.
            (3) The Government of Iran has asserted that its nuclear 
        program is for peaceful purposes, however, that Government has 
        supported terrorist organizations and uses harsh rhetoric 
        towards allies of the United States in the Middle East, and the 
        United States has expressed great concern with Iran's nuclear 
        ambitions and has worked with United States allies to end 
        Iran's nuclear program.
            (4) In October 2003, the Government of Iran promised it 
        would suspend uranium enrichment activities, but broke that 
        promise less than a year later.
            (5) In November 2004, the Government of Iran, in concert 
        with talks with representatives of the Governments of Britain, 
        France, and Germany (the ``EU-3'') agreed to suspend all 
        uranium enrichment and reprocessing activities related to 
        Iran's nuclear program under the terms of the agreement made 
        between the Islamic Republic of Iran and France, Germany and 
        the United Kingdom, with the support of the High Representative 
        of the European Union (the ``Paris Agreement'').
            (6) The EU-3 agreed to support the United States in taking 
        Iran's nuclear program to the United Nations Security Council 
        if Iran resumed its nuclear activities.
            (7) In concert with the Paris Agreement, the President 
        announced that the United States will drop its opposition to 
        Iran's application to join the World Trade Organization and 
        permit, on a case-by-case basis, the licensing of spare parts 
        for Iranian commercial aircraft.
            (8) Iran's uranium enrichment program is likely to be 
        dispersed throughout the country, protected in hardened 
        infrastructure, and highly mobile.
            (9) The Parliament of Iran passed a nonbinding resolution 
        insisting that the Government of Iran resume developing nuclear 
        fuel.
            (10) That resolution stated that Iran should develop enough 
        nuclear fuel to generate 20,000 megawatts of electricity.
            (11) In February 2005, the Atomic Energy Agency of Russia 
        announced that Russia would ship nuclear fuel to Iran's 
        Busheher nuclear reactor.
            (12) Russia pledged to provide fuel to this facility for 10 
        years and, under the commitment, Iran has pledged to return 
        spent fuel to Russia for storage.
            (13) Russia remains the only major nuclear fuel market 
        closed to outside competition and 100 percent of Russia's 
        nuclear fuel industry is owned by the Government of Russia.
            (14) Iran is the fourth-largest oil producer in the world.
            (15) Iran has a wealth of natural gas and crude oil 
        reserves and it is estimated that Iran plans to invest 
        $104,000,000,000 by 2015 in natural gas production and that 
        Iran plans to increase crude oil production to 7,000,000 
        barrels a day by 2020.

SEC. 3. SENSE OF CONGRESS ON TRADE RELATIONS WITH STATE SPONSORS OF 
              TERRORISM.

    It is the sense of Congress that the countries of the world should 
choose between trading with state sponsors of terrorism or maintaining 
good trade relations with the United States.

SEC. 4. PROHIBITION OF ENTRY OF NUCLEAR FUEL ASSEMBLIES.

    The Iran and Libya Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended by inserting after section 10 the following new section:

``SEC. 10A. PROHIBITION OF ENTRY TO NUCLEAR FUEL ASSEMBLIES TO THE 
              UNITED STATES.

    ``(a) In General.--Subject to subsection (b), the President shall 
prohibit the United States, or any entity of the United States, from 
purchasing nuclear fuel assemblies from any person or government 
entity, or any entity affiliated with such person or entity, that sells 
nuclear fuel assemblies to Iran.
    ``(b) Waiver.--The President may waive the prohibition in 
subsection (a) if the President--
            ``(1) determines that the waiver is in the national 
        security interest of the United States; and
            ``(2) at least 7 days before the waiver takes effect, 
        notifies the required congressional committees of the 
        President's intention to exercise the waiver.
    ``(c) Definitions.--In this section:
            ``(1) Nuclear fuel assemblies.--The term `nuclear fuel 
        assemblies' does not include low-enriched uranium (LEU). For 
        the purpose of the preceding sentence the term `low-enriched 
        uranium' means a product produced using blended down weapons-
        grade and highly-enriched uranium (HEU) that is provided by the 
        Russian entity Techsnabexport (also known as TENEX) in 
        cooperation with the U.S. Enrichment Corporation, a subsidiary 
        of USEC, Inc.
            ``(2) Required congressional committees.--The term 
        `required congressional committees' means the Committee on 
        Armed Services, the Committee on Finance, and the Committee on 
        Foreign Relations of the Senate and the Committee on Armed 
        Services, the Committee on International Relations, and the 
        Committee on Ways and Means of the House of Representatives.''.

Summary: Iranian Nuclear Trade Prohibition Act of 2005 - Expresses the sense of Congress that countries should choose between trading with state sponsors of terrorism or maintaining good trade relations with the United States.

Amends the Iran and Libya Sanctions Act of 1996 to direct the President to prohibit the United States or any U.S. entity from purchasing nuclear fuel assemblies (not including low-enriched uranium) from any person or government or affiliated entity that sells nuclear fuel assemblies to Iran. Authorizes the President, with congressional notification, to waive such prohibition for national security purposes.