October 28, 2009 6:45 PM

Washington, DC - Today, the House Committee on Foreign Affairs passed H.R. 2194, the Iran Refined Petroleum Sanctions Act of 2009, by voice vote.  Rep. Michael E. McMahon, a member of the Committee, cosponsored this legislation, which will now move forward to debate on the House floor.

“This historic, bipartisan piece of legislation will limit investments in Iran’s hydrocarbon sector and curtail its ability to manufacture nuclear weapons,” said Rep. McMahon.  “H.R. 2194 would sanction companies that help Iran import or produce refined petroleum -- companies that ultimately, endanger the security of our country and the world as a whole.  Already, due to U.S. pressure, at least 40 banks have all reduced business with Iran.  Yet, despite increased pressure, Iran refuses to suspend its uranium enrichment program.   In fact, the revelation this past September that Iran failed to disclose yet another enrichment facility in Qom points to the reason why we need this bill.  A nuclear armed Iran is unacceptable – and is not consistent with a secure and safe United States and Israel.”

H.R. 2194 primarily provides for additional sanctions authorized in the Iran Sanctions Act of 1996, which specifically related to Iran’s production and export of refined petroleum.  The purpose of the legislation is to pressure the Government of Iran to suspend its nuclear weapons program, including the ceasing of all enrichment activities, through the application of targeted sanctions against Iran’s energy infrastructure.  The legislation goes beyond the Iran Sanctions Act of 1996 in the following key ways:
•    H.R. 2194 mandates specific, hard-hitting sanctions against persons (individuals and companies), not just a menu of sanctions.
•    H.R. 2194 sanctions persons engaged in the production in Iran and exportation to Iran of refined petroleum, not just persons who make investments that enhance Iran’s ability to develop petroleum resources.

The sanctions included in H.R. 2194 would affect foreign and domestic companies as well as individuals doing business in Iran’s hydrocarbon sector.

McMahon Amendment:

H.R. 2194  directs the President to report to the appropriate congressional committees within 90 days after the date of enactment of this legislation, and every six months thereafter, regarding any person who has engaged in the sanctionable activities described in the Act.  Rep. McMahon fought to include an amendment which would also include information on trade relations between G20 countries and Iran in this report.

“I am confident that this long-stalled measure will undoubtedly give the Administration the leverage it needs to negotiate with the Ahmadinejad regime, but the United States will also need the full support of the international community to use limits on trade and the energy to help end Iran’s nuclear ambitions,” said Rep. McMahon.  “It is crucial that Congress receive information on the dollar value amount of trade, including the energy sector, between Iran and each country maintaining membership in the Group of Twenty Finance Ministers and Central Bank Governors.  My reporting requirement will allow the U.S. to compare the efforts taken by the G20 members in the fight against nuclear proliferation and will ultimately further secure our global community.”