Washington—The Senate Banking Committee today adopted an amendment offered by Senator Evan Bayh that would give state and local governments clear authority to divest from companies that provide Iran with refined oil and liquefied natural gas.

The Bayh amendment was adopted as part of the Comprehensive Iran Sanctions, Accountability, and Divestment Act, passed by the committee today by a vote of 19-2.

The legislation is part of a broader effort to pressure Iran to discontinue its nuclear materials production program through sanctions that would choke off refined petroleum imports into the country. Iran is the second-largest importer of gasoline in the world.

“While Iran has vast reserves of crude oil, it doesn’t have the necessary infrastructure to produce enough refined oil to meet domestic demand,” Senator Bayh said. “The Iranians import almost 50 percent of the refined petroleum they consume. With this legislation, we are sending a clear message to the Iranian regime: They can either stop walking down the path of nuclear enrichment, or they will see the petroleum imports that are so vital to their economy begin to drastically diminish.”

The legislation allows state and local governments—and the pension, retirement, and annuity funds they operate—to divest from foreign companies that bring petroleum products into Iran without fear of lawsuits from shareholders. This includes companies that operate oil and liquefied natural gas tankers or provide products used to construct or maintain pipelines.

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