,,ii #aaith ,,congress #b;d ,session ,s4 #dedd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ad1 #bjbf,mr4 ,cornyn 7for himself and ,ms4 ,rosen7 introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to require a report on countering the smuggling of hydrocarbon products by transnational criminal organizations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,fueling ,cartel ,violence ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,mexico-based transnational criminal organizations1 including the ,cartel ,jalisco ,nueva ,generacion 7,,cjng71 the ,sinaloa ,cartel1 the ,gulf ,cartel1 and the ,northeast ,cartel1 have developed large-scale enterprises to steal1 divert1 and smuggle crude oil1 diesel1 gasoline1 and refined petroleum products from ,mexico's state-owned energy company1 ,petrleos ,mexicanos 7,pemex74 7#b7 ,such operations involve illegally drilling clandestine taps into fuel pipelines1 raiding refineries1 hijacking petroleum tanker trucks1 bribing ,pemex employees1 and using networks of front companies and shell companies to launder the resulting illicit proceeds4 7#c7 ,the ,department of the ,treasury has determined that fuel theft1 including crude oil smuggling1 is currently the most significant non-drug illicit revenue source for ,mexico-based cartels and other illicit actors4 7#d7 ,theft of hydrocarbon products by transnational criminal organizations and foreign terrorist organizations has grown to an extraordinary scale1 as ,pemex estimates that thieves stole approximately #ihg1jjj1jjj liters of fuel in calendar year #bjbd1 nearly three times the volume stolen in calendar year #bjai4 7#e7 ,the ,department of the ,treasury has reported that the ,mexican ,government has sustained billions of dollars in lost revenue in recent years attributable to these operations1 and independent industry analyses estimate that fuel smuggling and associated tax evasion deprive ,mexico of approximately #bd1jjj1jjj in potential tax revenue per day4 7#f7 ,according to data cited in ,department of the ,treasury enforcement actions1 between #af and #bg percent of total annual fuel consumption in ,mexico originates from illegal sources4 7#g7 ,in connection with sanctions actions taken against ,,cjng-linked fuel theft networks in ,september #bjbd and ,may #bjbe1 the ,secretary of the ,treasury stated1 ,fuel theft and crude oil smuggling are cash cows for ,,cjng's narco-terrorist enterprise1 providing a lucrative revenue stream for the group and enabling it to wreak havoc in ,mexico and the ,united ,states44 7#h7 ,on ,september #aj1 #bjbd1 the ,office of ,foreign ,assets ,control1 acting in coordination with the ,drug ,enforcement ,administration and ,mexico's ,financial ,intelligence ,unit1 sanctioned nine ,mexican nationals and #bf ,mexico-based entities linked to a ,,cjng fuel theft network that generates tens of millions of dollars in illicit revenue for ,,cjng1 an organization simultaneously responsible for a significant proportion of fentanyl and other controlled substances trafficked into the ,united ,states4 7#i7 ,on ,may #a1 #bjbe1 the ,office of ,foreign ,assets ,control sanctioned an additional three ,mexican nationals and two ,mexico-based entities involved in a fentanyl trafficking and fuel theft network that generates hundreds of millions of dollars annually for ,,cjng4 7#aj7 ,the ,financial ,crimes ,enforcement ,network1 in an alert issued on ,may #a1 #bjbe1 in coordination with the ,office of ,foreign ,assets ,control1 the ,drug ,enforcement ,administration1 the ,federal ,bureau of ,investigation1 and ,homeland ,security ,investigations1 described in detail how cartels employ complicit ,mexican brokers to smuggle stolen crude oil across the southwest border of the ,united ,states1 by mislabeling shipments as waste oil or hazardous materials1 for delivery to complicit ,united ,states-based importers operating primarily in the ,lower ,rio ,grande ,valley1 the ,eagle ,ford ,shale1 and the ,permian ,basin regions of ,texas4 7#aa7 ,on ,february #bj1 #bjbe1 the ,secretary of ,state1 acting pursuant to ,executive ,order #adaeg1 designated ,,cjng1 the ,sinaloa ,cartel1 the ,gulf ,cartel1 the ,northeast ,cartel1 ,tren de ,aragua1 and ,mara ,salvatrucha as ,foreign ,terrorist ,organizations and ,specially ,designated ,global ,terrorists4 7#ab7 ,section #abd of title #aj1 ,united ,states ,code1 designates the ,department of ,defense as the single lead agency of the ,federal ,government for the detection and monitoring of aerial and maritime transit of illegal drugs into the ,united ,states1 to be carried out in support of the counterdrug activities of ,federal1 ,state1 local1 and foreign law enforcement agencies4 ,the ,department employs aerial1 maritime1 and ground surveillance assets and interagency information-sharing networks whose capabilities are directly applicable to the detection and monitoring of the illicit movement of stolen hydrocarbon products across or near the boundaries of the ,united ,states4 7#ac7 ,the physical and logistical characteristics of hydrocarbon smuggling operations are substantially similar to those of narcotics smuggling1 and the surveillance1 signals1 and communication architectures currently deployed by the ,department of ,defense for counterdrug purposes are directly applicable to the hydrocarbon threat4 #c4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the theft and illicit transborder trafficking of crude oil1 diesel1 gasoline1 and refined petroleum products by ,mexico-based transnational criminal organizations constitutes a significant threat to the national security and public safety of the ,united ,states2 and 7#b7 the ,united ,states ,government should treat the trafficking of stolen hydrocarbon products as a priority component of its counterdrug and counter-transnational organized crime strategy4 #d4 ,report on countering cartel hydrocarbon smuggling 7a7 ,report required ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,defense shall submit to the congressional defense committees a report that-- 7#a7 details activities taking place pursuant to section #bhd of title #aj1 ,united ,states ,code1 or other authorities of the ,department of ,defense1 to deny1 disrupt1 or degrade transnational criminal organizations directly or indirectly engaged in the theft1 diversion1 or illicit movement of stolen hydrocarbon products2 and 7#b7 includes-- 7,a7 recommendations for future additional activities to counter the activities of transnational criminal organizations described in paragraph 7#a71 including-- 7i7 capacity building with national security forces of partner nations pursuant to section #ccc of title #aj1 ,united ,states ,code2 7ii7 information sharing with civilian ,united ,states ,government agencies specializing in countering transnational criminal organizations2 7iii7 assessments of key nodes of activity of transnational organized crime networks engaged in the smuggling of hydrocarbon products2 and 7iv7 any other non-kinetic activity the ,secretary determines appropriate to deny1 disrupt1 or degrade the smuggling of hydrocarbon products2 and 7,b7 an assessment of resources used to conduct the activities described in paragraph 7#a74 7b7 ,hydrocarbon products defined ,in this section1 the term hydrocarbon products means crude oil classified under heading #bgji4jj of the ,harmonized ,tariff ,schedule of the ,united ,states 7,petroleum oils and oils obtained from bituminous minerals1 crude71 including unprocessed crude petroleum oils 7whether testing under or over #be ,,api gravity71 crude oils obtained from bituminous minerals1 condensates derived wholly from natural gas1 and reconstituted crude petroleum4