May 16, 2011 | Foreign Policy

House Goes First with New Iran Sanctions Bill

Both the House and Senate are preparing new legislation to increase pressure on Iran, but the House fired the opening salvo on Monday with a new bill authored by both heads of the Foreign Affairs Committee.

“U.S. policy towards Iran has offered a lot of bark, but not enough bite. This new bipartisan legislation would bring to bear the full weight of the U.S. by seeking to close the loopholes in existing energy and financial sanctions laws, while increasing the type and number of sanctions to be imposed,” committee chairwoman Ileana Ros-Lehtinen (R-FL) said in a statement unveiling the Iran Threat Reduction Act (ITRA).

The bill is meant to close loopholes that Ros-Lehtinen and others believe the administration is using to avoid enforcement of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA), which was signed into law by President Barack Obama in July 2010.

“Given the grave nature of the Iranian threat, it is my hope that my colleagues will support further strengthening the bill as it moves through the legislative process and not fall into the trap of enabling the Executive Branch to ignore U.S. law,” she said.

To date, only two companies have been sanctioned under provisions in CISADA that were designed to clamp down on Iran’s energy sector — one Iranian state-owned corporation, and one corporation from Belarus. The new bill eliminates some of the waivers available to the president, raises the bar for other waivers, and expands the list of targeted Iranian officials and entities.

Other original co-sponsors are committee ranking Democrat Howard Berman (D-CA), Dan Burton (R-IN), Edward R. Royce (R-CA), Brad Sherman (D-CA), Steve Chabot (R-OH), Gary Ackerman (D-NY), and Ted Deutch (D-FL).

“We must use every economic tool available to force Iran to end its pursuit of nuclear weapons,” Berman said in his own statement. “As we await vigorous enforcement by the Obama Administration under CISADA, we must continually look ahead and examine additional means to pressure Iran, and that is exactly what this new legislation is intended to do.”

Over in the Senate, top lawmakers are also preparing new Iran sanctions legislation, which could be unveiled as early as this month. Like the House bill, the Senate’s version will incorporate ideas from a range of individual lawmakers on how to increase pressure on Iran. However, the Senate bill will likely focus on expanding sanctions rather than tightening enforcement of existing sanctions, as the House has done.

The Senate effort is being led by Sens. Jon Kyl (R-AZ), Joe Lieberman (I-CT), and Mark Kirk (R-IL), but will likely incorporate ideas from others, such as Robert Casey (D-PA) and Kirstin Gillibrand (D-NY).

“The new legislation for the first time targets Iran’s crude oil exports and the dominant role played by the Iranian Revolutionary Guard Corps (IRGC) in the development, production, and distribution of Iran’s oil,” said Mark Dubowitz, the executive director of the Foundation for the Defense of Democracies, who helped develop the House bill. “With the introduction of this new legislation, companies now are on notice that ‘buyer beware’: If you’re buying crude from Iran, you’re buying it from the IRGC, and that’s bad for business, bad for your reputation and could make you the target of U.S. sanctions.”