CLARIFICATION AND EXPANSION OF SANCTIONS RELATING TO CONSTRUCTION OF NORD STREAM 2 OR TURKSTREAM PIPELINE PROJECTS.

SEC. 1242. CLARIFICATION AND EXPANSION OF SANCTIONS RELATING TO CONSTRUCTION OF NORD STREAM 2 OR TURKSTREAM PIPELINE PROJECTS. (a) In General.—Subsection (a)(1) of section 7503 of the Protecting Europe’s Energy Security Act of 2019 (title LXXV of Public Law 116-92; 133 Stat. 2300; 22 U.S.C. 9526 note) is amended— (1) in subparagraph (A)— (A) by inserting “or pipe-laying activities” after “pipe-laying”; and (B) by striking “; and” and inserting a semicolon; (2) in subparagraph (B)— (A) in clause (i)— (i) by inserting “, or facilitated selling, leasing, or providing,” after “provided”; and (ii) by striking “; or” and inserting a semicolon; (B) in clause (ii), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: “(iii) provided for those vessels underwriting services or insurance or reinsurance necessary or essential for the completion of such a project; “(iv) provided services or facilities for technology upgrades or installation of welding equipment for, or retrofitting or tethering of, those vessels if the services or facilities are necessary or essential for the completion of such a project; or “(v) provided services for the testing, inspection, or certification necessary or essential for the completion or operation of the Nord Stream 2 pipeline; and” ; and (3) by adding at the end the following: “(C) the consultations carried out pursuant to subsection (i) and describes the nature of the consultations and any concerns raised by the government of Norway, Switzerland, the United Kingdom, or any member country of the European Union.” . (b) Exception.—Subsection (e) of such section is amended by adding at the end the following: “(6) Exception for certain governments and governmental entities.—Sanctions under this section shall not apply with respect to— “(A) the European Union; “(B) the government of Norway, Switzerland, the United Kingdom, or any member country of the European Union; or “(C) any entity of the European Union or a government described in subparagraph (B) that is not operating as a business enterprise.” . (c) Waiver.—Subsection (f) of such section is amended to read as follows: “(f) National Interest Waiver.—The President may waive the application of sanctions under this section with respect to a person if the President— “(1) determines that the waiver is in the national interests of the United States; and “(2) submits to the appropriate congressional committees a report on the waiver and the reasons for the waiver.” . (d) Consultations; Report.—Such section is further amended— (1) by redesignating subsection (i) as subsection (k); and (2) by inserting after subsection (h) the following: “(i) Consultations.—Before imposing sanctions under this section, the Secretary of State shall consult with the relevant governments of Norway, Switzerland, the United Kingdom, and member countries of the European Union with respect to the imposition of such sanctions. “(j) Report on Impact of Sanctions.—Not later than one year after the date of the enactment of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, and annually thereafter until all sanctions imposed under this section have terminated under subsection (h), the Secretary of State, in consultation with the Secretary of the Treasury, shall submit to the appropriate congressional committees a report detailing the impact of the imposition of sanctions under this section that includes information on— “(1) whether the goals of the sanctions have been met; “(2) the diplomatic impact of the sanctions, including on relationships with the governments of Norway, Switzerland, the United Kingdom, and member countries of the European Union; and “(3) the economic impact of the sanctions, including the impact on United States persons.” . (e) Definitions.—Subsection (k) of such section, as redesignated by subsection (b), is further amended— (1) by redesignating paragraph (5) as paragraph (6); and (2) by inserting after paragraph (4) the following: “(5) Pipe-laying activities.—The term ‘pipe-laying activities’ means activities that facilitate pipe-laying, including site preparation, trenching, surveying, placing rocks, backfilling, stringing, bending, welding, coating, and lowering of pipe.” . (f) [22 U.S.C. 9526 note] Wind-down Period.—The President may not impose sanctions with respect to a person identified in the first report submitted under section 7503(a) of the Protecting Europe’s Energy Security Act of 2019, as amended by this section, after the date of the enactment of this Act for operations subject to sanctions by reason of the amendments made by this section if the President certifies in that report that the person has, not later than 30 days after such date of enactment, engaged in good faith efforts to wind down such operations.