Jul 30, 2019 — Barakah One Company of the United Arab Emirates. 15 to finance the export of of the Barakah nuclear power plant was enabled by. 21.
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II 116THCONGRESS 1STSESSION S. 2338 To prohibit the Export-Import Bank of the United States from financing the export of nuclear technology, equipment, fuel, materials, or other goods or services to Saudi Arabia, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY30, 2019 Mr. VANHOLLEN(for himself, Mr. GRAHAM, Mr. MORAN, and Mr. MERKLEY) introduced the following bill; which was read twice and re-ferred to the Committee on Banking, Housing, and Urban Affairs A BILL To prohibit the Export-Import Bank of the United States from financing the export of nuclear technology, equip- ment, fuel, materials, or other goods or services to Saudi Arabia, and for other purposes. Be it enacted by the Senate and House of Representa-1tives of the United States of America in Congress assembled, 2SECTION 1. SHORT TITLE. 3This Act may be cited as the ‘‘Preventing Nuclear 4Proliferation in Saudi Arabia Act of 2019’’. 5VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00001Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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2 •S 2338 ISSEC. 2. PROHIBITION ON EXPORT-IMPORT BANK FINANC-1ING FOR EXPORT OF NUCLEAR TECHNOLOGY, 2EQUIPMENT, FUEL, MATERIALS, OR OTHER 3GOODS OR SERVICES TO SAUDI ARABIA. 4(a) FINDINGS.—Congress makes the following find-5ings: 6(1) The Export-Import Bank of the United 7States identifies global nuclear power as a key and 8growing industry in which the Bank has played an 9important role by financing the export of United 10States nuclear equipment, fuel, technology, and serv-11ices to foreign purchasers. 12(2) In September 2012, the Export-Import 13Bank authorized a $2,000,000,000 direct loan to the 14Barakah One Company of the United Arab Emirates 15to finance the export of United States equipment 16and service-expertise for the construction of a nu-17clear power plant in the United Arab Emirates, the 18first of its kind on the Arabian Peninsula. 19(3) The transaction to finance the construction 20of the Barakah nuclear power plant was enabled by 21the establishment of a bilateral nuclear cooperation 22agreement between the United States and the 23United Arab Emirates made pursuant to section 123 24of the Atomic Energy Act of 1954 (42 U.S.C. 252153), in which the United Arab Emirates com-26VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00002Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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3 •S 2338 ISmitted to forgo uranium enrichment and reprocess-1ing on its territory and was obligated to bring into 2force an Additional Protocol to its Comprehensive 3Safeguards Agreement with the International Atom-4ic Energy Agency. 5(4) The nuclear cooperation agreement, which 6was signed on May 21, 2009, became known as the 7first ‘‘gold standard’’ civil nuclear agreement and 8was viewed as a step toward building a strong non-9proliferation framework in the region. 10(5) In accordance with that agreement, the 11United Arab Emirates reserves the right to amend 12its terms in the event the United States establishes 13a peaceful nuclear cooperation agreement with an-14other non-nuclear-weapon state in the Middle East 15that is less prescriptive in scope and effect than its 16agreement with the United States. 17(6) The Government of Saudi Arabia intends to 18develop an extensive civilian nuclear program, in-19cluding the construction of 2 nuclear power reactors 20and multiple small modular reactors. 21(7) For the construction of its first 2 nuclear 22power reactors, the Government of Saudi Arabia 23plans to issue a multi-billion dollar tender in 2020, 24VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00003Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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4 •S 2338 ISand among the potential suppliers is the United 1States. 2(8) The Government of Saudi Arabia currently 3has in place a Small Quantities Protocol to its Com-4prehensive Safeguards Agreement with the Inter-5national Atomic Energy Agency, an agreement that 6suspends the application of a number of safeguards 7requirements for a country with minimal nuclear 8material activities on its territory or under its juris-9diction. 10(9) Despite its plans to develop an extensive ci-11vilian nuclear program and interest in the United 12States as a supplier of nuclear technology and exper-13tise, the Government of Saudi Arabia has dem-14onstrated little willingness to accept strong non-15proliferation measures, such as an Additional Pro-16tocol to its Comprehensive Safeguards Agreement 17with the International Atomic Energy Agency, and 18has even expressed a desire for acquiring uranium 19enrichment technology. 20(10) Fully functional with a quorum and if re-21authorized beyond September 30, 2019, when its 22current charter lapses, the Export-Import Bank will 23regain its ability to finance United States nuclear 24VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00004Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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5 •S 2338 ISexports by extending loans and credit to foreign pur-1chasers. 2(b) SENSEOF CONGRESS.—It is the sense of Con-3gress that— 4(1) any provision of financing assistance by the 5Export-Import Bank of the United States to Saudi 6Arabia for the import of United States nuclear tech-7nology, equipment, fuel, materials, or goods or serv-8ices should be conditioned on the commitment of the 9Government of Saudi Arabia to renounce uranium 10enrichment and reprocessing on its territory and its 11adoption and implementation of an Additional Pro-12tocol to its Comprehensive Safeguards Agreement 13with the International Atomic Energy Agency as a 14way to advance United States nonproliferation and 15nuclear cooperation objectives in the region; and 16(2) to further bolster nonproliferation efforts in 17the region, the United States should oppose, through 18the Nuclear Suppliers Group, the export of nuclear 19technology to Saudi Arabia until the Government of 20Saudi Arabia has— 21(A) committed to renouncing uranium en-22richment and reprocessing on its territory; and 23(B) signed and implemented an Additional 24Protocol to its Comprehensive Safeguards 25VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00005Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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6 •S 2338 ISAgreement with the International Atomic En-1ergy Agency. 2(c) PROHIBITION.—The Export-Import Bank of the 3United States may not guarantee, insure, or extend (or 4participate in the extension of) credit in connection with 5the export of nuclear technology, equipment, fuel, mate-6rials, or other goods or services to Saudi Arabia unless— 7(1) the Government of Saudi Arabia— 8(A) has in effect a nuclear cooperation 9agreement pursuant to section 123 of the 10Atomic Energy Act of 1954 (42 U.S.C. 2153); 11(B) has signed and implemented an Addi-12tional Protocol to its Comprehensive Safeguards 13Agreement with the International Atomic En-14ergy Agency; and 15(C) has committed not to possess sensitive 16nuclear facilities within its territory or other-17wise to engage in activities relating to the en-18richment or reprocessing of nuclear material; 19and 20(2) not less than 30 days before the Board of 21Directors of the Bank provides final approval to the 22guarantee, insurance, or extension (or participation 23in the extension) of credit, the Bank, in coordination 24with the Secretary of State and the Chairman of the 25VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00006Fmt 6652Sfmt 6201E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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8 •S 2338 ISreport under subsection (c)(2) should be made confiden-1tial, that information may be submitted in a separate and 2confidential report to the chairmen and ranking members 3of the appropriate congressional committees. 4(e) DEFINITIONS.—In this section: 5(1) APPROPRIATECONGRESSIONALCOMMIT -6TEES.—The term ‘‘appropriate congressional com-7mittees’’ means— 8(A) the Committee on Banking, Housing, 9and Urban Affairs and the Committee on For-10eign Relations of Senate; and 11(B) the Committee on Financial Services 12and the Committee on Foreign Affairs of the 13House of Representatives. 14(2) SENSITIVENUCLEARFACILITY .—The term 15‘‘sensitive nuclear facility’’ means any facility de-16signed or used primarily for uranium enrichment, re-17processing of nuclear fuel, heavy water production, 18or fabrication of nuclear fuel containing plutonium. 19Æ VerDate Sep 11 2014 23:31 Aug 06, 2019Jkt 089200PO 00000Frm 00008Fmt 6652Sfmt 6301E:\BILLS\S2338.ISS2338 kjohnson on DSK79L0C42 with BILLS
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