Stop Harboring Iranian Petroleum Act
Floor Speech
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Mr. LAWLER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3774) to impose additional sanctions with respect to the importation or facilitation of the importation of petroleum products from Iran, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 3774
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Harboring Iranian Petroleum Act'' or the ``SHIP Act''. SEC. 2. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to deny Iran the ability, by limiting Iran's export of petroleum and petroleum products, to--
(A) engage in destabilizing activities;
(B) support international terrorism; or
(C) fund the development and acquisition of weapons of mass destruction and weapons delivery systems;
(2) to deny Iran funds to oppress and commit human rights violations against the Iranian people assembling to peacefully redress the Iranian regime;
(3) to fully enforce sanctions against those entities which provide support to the Iranian energy sector; and
(4) to counter Iran's actions to finance and facilitate the participation of foreign terrorist organizations in ongoing conflicts and illicit activities due to the threat such actions pose to the vital national interests of the United States. SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO IRANIAN PETROLEUM.
(a) In General.--On and after the date that is 90 days after the date of the enactment of this Act, and except as provided in subsection (e)(2), the President shall impose the sanctions described in subsection (c) with respect to each foreign person that the President determines, on or after such date of enactment, engages in an activity described in subsection (b).
(b) Activities Described.--A foreign person engages in an activity described in this subsection if the foreign person--
(1) owns or operates a foreign port and has knowingly facilitated or accommodated at least 1 designated vessel in landing at such port on or after the date of enactment of this Act for the purpose of transporting Iranian crude oil;
(2) knowingly transports, offloads, or otherwise engages in transactions involving petroleum or petroleum products, including petrochemicals, originating from Iran;
(3) knowingly owns or operates a vessel used to conduct ship-to-ship transfers of petroleum or petroleum products, including petrochemicals, originating from Iran;
(4) owns or operates a refinery that knowingly processes, refines, or otherwise engages in transactions involving petroleum or petroleum products, including petrochemicals, originating from Iran;
(5) is an adult family member of a foreign person described in any of paragraphs (1) through (4), unless the President determines there is clear and convincing evidence that such adult family member has disassociated themselves from the foreign person described in such paragraph and has not assisted such foreign person in concealing assets; or
(6) is owned, as such term is defined by section 510.411 of title 31, Code of Federal Regulations, by a foreign person described in any of paragraphs (1) through (5) that has been designated for such conduct.
(c) Sanctions Described.--The sanctions described in this subsection with respect to a foreign person described in subsection (a) are the following:
(1) Blocking of property.--The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the foreign person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
(2) Ineligibility for visas, admission, or parole.--
(A) Visas, admission, or parole.--An alien described in subsection (a) is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other documentation to enter the United States; and
(iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--An alien described in subsection (a) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation is or was issued.
(ii) Immediate effect.--A revocation under clause (i) shall take effect immediately and automatically cancel any other valid visa or entry documentation that is in the alien's possession.
(C) Exceptions.--Sanctions under this paragraph shall not apply with respect to an alien if admitting or paroling the alien into the United States is necessary--
(i) to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations; or
(ii) to carry out or assist law enforcement activity in the United States.
(3) Penalties.--The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic 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 any regulations promulgated to carry out 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.
(d) Rule of Construction.--For purposes of determinations under subsection (a) that a foreign person engaged in activities described in subsection (b), a foreign person shall not be determined to know that petroleum or petroleum products originated from Iran if such person relied on a certificate of origin or other documentation confirming that the origin of the petroleum or petroleum products was a country other than Iran, unless such person knew or had reason to know that such documentation was falsified.
(e) Implementation; Regulations.--
(1) In general.--The President may exercise all authorities under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.
(2) Deadline for regulations.--Not later than 180 days after the date of the enactment of this Act, the President shall prescribe such regulations as may be necessary for the implementation of this Act.
(3) Notification to congress.--Not later than 10 days before the prescription of regulations under paragraph (2), the President shall brief and provide written notification to the appropriate congressional committees regarding--
(A) the proposed regulations; and
(B) the specific provisions of this Act that the regulations are implementing.
(f) Waiver.--
(1) In general.--The President may, on a case-by-case basis and for periods not to exceed 180 days each, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees, not later than 15 days before such waiver is to take effect, that the waiver is vital to the national interests of the United States.
(2) Special rule.--The President shall not be required to impose sanctions under this section with respect to a foreign person described in subsection (a) if the President certifies in writing to the appropriate congressional committees that the foreign person--
(A) is no longer engaging in activities described in subsection (b); or
(B) has taken and is continuing to take significant, verifiable steps toward permanently terminating such activities.
(f) Termination.--The authorities provided by this section shall cease to have effect on and after the date that is 30 days after the date on which the President certifies to the appropriate congressional committees that--
(1) the Government of Iran no longer repeatedly provides support for international terrorism as determined by the Secretary of State pursuant to--
(A) section 1754(c)(1)(A) of the Export Control Reform Act of 2018 (50 U.S.C. 4318(c)(1)(A));
(B) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
(C) section 40 of the Arms Export Control Act (22 U.S.C. 2780); or
(D) any other provision of law; and
(2) Iran has ceased the pursuit, acquisition, and development of, and verifiably dismantled, its nuclear, biological, and chemical weapons, ballistic missiles, and ballistic missile launch technology. SEC. 4. REPORT ON IRANIAN PETROLEUM AND PETROLEUM PRODUCTS EXPORTS.
(a) In General.--Not later than 120 days after the date of enactment of this Act, and annually thereafter until the date described in subsection (d), the Administrator of the Energy Information Administration shall submit to the appropriate congressional committees a report describing Iran's growing exports of petroleum and petroleum products, that includes the following:
(1) An analysis of Iran's exports and sale of petroleum and petroleum products, including--
(A) an estimate of Iran's petroleum export and sale revenue per year since 2018;
(B) an estimate of Iran's petroleum export and sale revenue to China per year since 2018;
(C) the amount of petroleum and crude oil barrels exported per year since 2018;
(D) the amount of petroleum and crude oil barrels exported to China per year since 2018;
(E) the amount of petroleum and crude oil barrels exported to countries other than China per year since 2018;
(F) the average price per petroleum and crude oil barrel exported per year since 2018; and
(G) the average price per petroleum and crude oil barrel exported to China per year since 2018.
(2) An analysis of Iran's labeling practices of exported petroleum and petroleum products.
(3) A description of companies involved in the exporting and sale of Iranian petroleum and petroleum products.
(4) A description of ships involved in the exporting and sale of Iranian petroleum and petroleum products.
(5) A description of ports involved in the exporting and sale of Iranian petroleum and petroleum products.
(b) Form.--The report required by subsection (a) shall be submitted in unclassified form but may include a classified annex.
(c) Publication.--The unclassified portion of the report required by subsection (a) shall be posted on a publicly available website of the Energy Information Administration.
(d) Termination.--The requirement to submit reports under this section shall be terminated on the date on which the President makes the certification described in section 3(f). SEC. 5. EXCEPTION RELATING TO IMPORTATION OF GOODS.
(a) In General.--The authorities and requirements to impose sanctions authorized under this Act shall not include the authority or requirement to impose sanctions on the importation of goods.
(b) Good Defined.--In this section, the term ``good'' means any article, natural or man-made substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. SEC. 6. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this Act, the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs, the Committee on the Judiciary, and the Committee on Financial Services of the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on the Judiciary, and the Committee on Banking, Housing, and Urban Affairs of the Senate.
Mr. Speaker, it is an honor to be here today as we gather to pass the Stop Harboring Iranian Petroleum Act, or the SHIP Act, which I introduced earlier this year with my colleague from Florida, Congressman Jared Moskowitz.
In the wake of the appalling terrorist attacks against Israel on October 7, it is clear that we must work to confront Iran and its proxies in the region with a strong sanctions regime. Iran is the largest state sponsor of terrorism in the world and, unfortunately, has the coffers to back this up. Iran spends its money on terror, on developing nuclear capabilities, on taking hostages to use for bargaining purposes, and on funding the criminal IRGC.
We must cut off Iran's funding and stop these illicit activities at their source, and that is where Iranian oil comes in.
Iran currently engages in a massive global oil trade, exporting its blood-stained petroleum in exchange for money and influence abroad. In the past year alone, Iran has made tens of billions off of their illicit oil trade, and this August, China imported a staggering 1.5 million barrels per day.
China is the largest importer of Iranian oil and, in doing so, has become complicit in the nefarious acts carried out with that funding. While the U.S. already sanctions Iranian petroleum, it is absolutely critical that we expand our sanctions regime to not only target Iran but Iran's enablers that are complicit in the nefarious acts committed with that money.
The SHIP Act specifically expands these sanctions to cover foreign ports and refineries that process Iranian oil. Individuals and entities that knowingly accept shipments of Iranian oil, refine Iranian oil, transport or offload Iranian oil, or otherwise transact with Iranian oil should be held accountable for their actions, for their willingness to pay for Iranian-backed terrorism.
The SHIP Act has been bipartisan from the start and continues to show a united front between Republicans and Democrats to limit Iran's global influence and protect those the Iranian regime seeks to harm, such as our Jewish and Israeli friends.
The SHIP Act sends a message to those who trade in Iranian oil that they will have the United States to deal with if they continue to do so. They can't pretend they don't know where the money is going. They can't pretend to separate Iranian oil from the very terrorism it supports. Now, we are putting it in writing that they are going to be held accountable if they keep enabling Iran.
Mr. Speaker, I urge all of my colleagues to support H.R. 3774, and I reserve the balance of my time. House of Representatives, Committee on the Judiciary, Washington, DC, October 26, 2023. Hon. Michael McCaul, Chairman, Committee on Foreign Affairs, House of Representatives, Washington, DC.
Dear Chairman McCaul: I write regarding H.R. 3774, the Stop Harboring Iranian Petroleum Act. Provisions of this bill fall within the Judiciary Committee's Rule X jurisdiction, and I appreciate that you consulted with us on those provisions. The Judiciary Committee agrees that it shall be discharged from further consideration of the bill so that it may proceed expeditiously to the House floor.
The Committee takes this action with the understanding that forgoing further consideration of this measure does not in any way alter the Committee's jurisdiction or waive any future jurisdictional claim over these provisions or their subject matter. We also reserve the right to seek appointment of an appropriate number of conferees in the event of a conference with the Senate involving this measure or similar legislation.
I ask that you please include this letter in your committee's report to accompany this legislation or insert this letter in the Congressional Record during consideration of H.R. 3774 on the House floor. I appreciate the cooperative manner in which our committees have worked on this matter, and I look forward to working collaboratively in the future on matters of shared jurisdiction. Thank you for your attention to this matter. Sincerely, Jim Joredan, Chairman. ____ House of Representatives, Committee on Foreign Affairs, Washington, DC, October 31, 2023. Hon. Jim Jordan, Chairman, Committee on the Judiciary, Washington, DC.
Dear Chairman Jordan: Thank you for consulting with the Foreign Affairs Committee and agreeing to be discharged from further consideration of H.R. 3774, the ``Stop Harboring Iranian Petroleum Act,'' so that the measure may proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of your committee, or prejudice its jurisdictional prerogatives on this measure or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees from your committee to any House-Senate conference on this legislation.
I will seek to place our letters on this bill into the Congressional Record during floor consideration. I appreciate your cooperation regarding this legislation and look forward to continuing to work together as this measure moves through the legislative process. Sincerely, Michael T. McCaul, Chairman.
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Mr. LAWLER. Mr. Speaker, I reserve the right to close, and I reserve the balance of my time.
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Mr. LAWLER. I yield 2 minutes to the gentleman from Florida (Mr. Mast), chairman of the Foreign Affairs Subcommittee on Oversight and Accountability.
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Mr. LAWLER. Mr. Speaker, I reserve the right to close, and I reserve the balance of my time.
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Mr. LAWLER. Mr. Speaker, I introduced this bill earlier this year with Congressman Jared Moskowitz of Florida. It has over 230 bipartisan cosponsors because Congress recognizes the need to sanction Iranian petroleum even further.
Since President Biden took office, relaxed enforcement of oil sanctions has contributed to increased Iranian oil revenues worth approximately $25.9 billion.
In 2019, Iran's oil exports fell below 500,000 barrels per day as a result of the prior administration's oil sanctions pressure.
As of September 2023, Iranian oil exports had increased to nearly 1.5 million barrels per day. Most of these increased sales have gone to Chinese buyers.
Exports are up 59 percent since January of 2021. The administration's refusal to list entities enabling the trade for secondary sanctions--in other words, imposing sanctions on the buyers--has contributed to this.
I wish we didn't need to do this, but we have to. HSI and OFAC should be enforcing these sanctions.
On October 11, 2023, NSC Coordinator for Strategic Communications, John Kirby, responded to a question about the weak enforcement of sanctions on Iranian oil by stating, quote, ``The President has been concerned about making sure we have a viable global market for oil, working hard to keep the prices of gasoline down here in the United States. Part of that is making sure you remove some of the volatility in that global supply and demand.''
Are you kidding me? First of all, the United States doesn't get Iranian petroleum. Our refineries aren't able to process it, and we already have sanctions in place against it. This administration has prohibited U.S. oil and gas development more strenuously than it has Iranian. It is absurd.
Macquarie, a leading financial services advisory firm, recently advised its clients that: ``In our assessment, the Biden administration's policy approach has been to limit oil supply disruptions, regardless of the situation. Given that policy objectives did not target Russian oil flows even at the height of the Russian- Ukraine conflict, we do not expect Iranian oil exports to be constrained either.''
Now, there are Members of this body that are going to oppose this legislation because it is too strenuous, doesn't give enough wiggle room to the administration. There is a reason we are not giving wiggle room to the administration. It is because they have been incapable of enforcing the sanctions against Iran and Iranian petroleum, which has been used as the funding source for the greatest state sponsor of terrorism in the world.
Lest anyone think otherwise, the attacks by Hamas, by Hezbollah over the course of time have been funded by Iran. We must be stringent in enforcing these sanctions. It is critically important.
When you look at what is happening in the world and the unholy alliance that has been brought about by Iran, North Korea, China, and Russia to undermine and destabilize the free world, to undermine the United States and our allies, we must enforce these sanctions, which is why it is critically important that we pass H.R. 3774 so that we can enact sanctions on the buyer.
China has been the largest buyer of Iranian petroleum. Their refineries are built to refine that oil. Our allies around the world must recognize and understand the threats that are emanating from this unholy alliance.
I urge all of my colleagues in both parties to support this bipartisan, commonsense legislation.
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Mr. LAWLER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
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