[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 985 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 985
To prohibit entities integral to the national interests of the United
States from participating in any foreign sustainability due diligence
regulation, including the Corporate Sustainability Due Diligence
Directive of the European Union, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 12, 2025
Mr. Hagerty introduced the following bill; which was read twice and
referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To prohibit entities integral to the national interests of the United
States from participating in any foreign sustainability due diligence
regulation, including the Corporate Sustainability Due Diligence
Directive of the European Union, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Prevent Regulatory Overreach from
Turning Essential Companies into Targets Act of 2025'' or the ``PROTECT
USA Act of 2025''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The ability of citizens of the United States to engage
in international commerce is a fundamental concern of the
policy of the United States.
(2) Entities in the extractive and manufacturing sectors
contribute significantly to the prosperity of the United States
and the growth of the world economy.
(3) Maintaining and, in some cases, increasing access to
certain supplies and materials from the extractive sector,
including agriculture, energy, mining, and timber, and access
to materials from the manufacturing sector, are critically
important for promoting economic development and human progress
in the United States and around the world.
(4) Restrictions, particularly restrictions adopted
unilaterally by foreign countries that are substantially
different from restrictions applied by the United States, that
unreasonably hinder the ability of entities integral to the
national interests of the United States to pursue their
commercial activities can have serious adverse effects on
employment, economic stability, scientific progress, and
international trade, with the potential to impede domestic and
foreign policy goals.
SEC. 3. DEFINITIONS.
In this Act:
(1) Entity integral to the national interests of the united
states.--The term ``entity integral to the national interests
of the United States'' means any partnership, corporation,
limited liability company, or other business entity that--
(A) does business with any part of the Federal
Government, including Federal contract awards or
leases;
(B) is organized under the laws of any State or
territory within the United States, or of the District
of Columbia, or under any Act of Congress or a foreign
subsidiary of any such entity that--
(i) derives not less than 25 percent of its
revenue from activities related to the
extraction or production of raw materials from
the earth, including--
(I) cultivating biomass (whether or
not for human consumption);
(II) exploring or producing fossil
fuels;
(III) mining; and
(IV) processing any material
derived from an activity described in
subclause (I), (II), or (III) for human
use or benefit;
(ii) has a primary North American Industry
Classification System code or foreign
equivalent associated with the manufacturing
sector;
(iii) derives not less than 25 percent of
its revenue from activities related to the
mechanical, physical, or chemical
transformation of materials, substances, or
components into new products; or
(iv) is engaged in--
(I) the production of arms or other
products integral to the national
defense of the United States; or
(II) the production, mining, or
processing of any critical mineral; or
(C) the President otherwise identifies as integral
to the national interests of the United States.
(2) Critical mineral.--The term ``critical mineral''
includes--
(A) any mineral identified as a critical mineral in
section 7002(a) of the Energy Act of 2020 (30 U.S.C.
1606(a)); or
(B) any fuel mineral, including fossil fuels and
any fraction, distillate, or other by-product of a fuel
mineral.
(3) Foreign sustainability due diligence regulation.--
(A) In general.--Except as provided in subparagraph
(B), the term ``foreign sustainability due diligence
regulation'' means any law, regulation, or other legal
instrument adopted by a foreign government that
requires any person to undertake--
(i) an assessment of the environmental or
social impacts of its operations or value
chain;
(ii) action to address any impacts
identified in the assessment described in
clause (i); and
(iii) reporting of the impacts and actions
described in clauses (i) and (ii).
(B) Exception.--The term ``foreign sustainability
due diligence regulation'' does not apply to any law,
regulation, or other legal instrument that is
substantively similar to a law, regulation, or other
legal instrument that has been adopted or approved by
an Act of Congress.
(C) Inclusion of corporate sustainability due
diligence directive.--The term ``foreign sustainability
due diligence regulation'' includes--
(i) the entirety of the Corporate
Sustainability Due Diligence Directive adopted
by the European Union;
(ii) any successor directive adopted by the
European Union or any member country of the
European Union; and
(iii) any precursor directive adopted by
any member country of the European Union.
SEC. 4. PROHIBITION ON COMPLIANCE WITH FOREIGN SUSTAINABILITY DUE
DILIGENCE REGULATIONS.
(a) In General.--Except as provided in subsection (b), no entity
integral to the national interests of the United States may comply with
any foreign sustainability due diligence regulation.
(b) Exception for Ordinary Business Activities.--Subsection (a)
does not prohibit an entity from undertaking actions that it may
lawfully take--
(1) to comply with a statute of the United States; or
(2) in the ordinary course of business.
(c) Hardship Relief Process.--
(1) Petition for relief.--Any entity integral to the
national interests of the United States that believes it will
experience particular hardship in connection with the
prohibition described in subsection (a) may petition the
President for an exemption from such prohibition.
(2) Decision.--Not later than 30 days after the date on
which the President receives a petition from an entity
submitted under paragraph (1), the President shall provide a
written decision to the entity that--
(A) grants or denies the requested exemption;
(B) contains a statement setting forth the basis
for the decision; and
(C) in the case of a granted exemption, describes
any condition that the exemption is subject to, as
determined by the President.
(3) Factors to be considered.--In making the decision
required by paragraph (2), the President shall consider--
(A) the extent to which the denial of a petition
submitted under paragraph (1) by an entity would result
in the inability of the entity to participate in value
chains associated with products essential for domestic
use in the United States;
(B) possible adverse effects on the economy in any
locality or region of the United States, including
adverse effects on employment;
(C) the degree to which granting the petition would
impact, directly or indirectly, the United States; and
(D) the extent to which denial of the petition
would prevent the entity from divesting in a business
formed under the laws of a jurisdiction subject to a
foreign sustainability due diligence regulation.
SEC. 5. PROHIBITION AGAINST ADVERSE ACTION FOR COMPLIANCE WITH THIS
ACT.
(a) In General.--No person may take any adverse action towards an
entity integral to the national interests of the United States for
action or inaction related to a foreign sustainability due diligence
regulation.
(b) Judgments for Foreign Sustainability Due Diligence
Regulations.--No judgment by a foreign court brought against an entity
integral to the national interests of the United States in relation to
any foreign sustainability due diligence regulation shall be recognized
in the courts of the United States or of the States, unless otherwise
provided by an Act of Congress.
(c) Enforcement.--
(1) Actions by the president.--
(A) In general.--The President shall take any
action the President determines is in the public
interest to protect an entity integral to the national
interests of the United States from an adverse action
related to a foreign sustainability due diligence
regulation.
(B) Determination of public interest.--In
determining under subparagraph (A) whether an action by
the President is in the public interest, the President
shall take into account the impact of the adverse
action described in that subparagraph on--
(i) consumers and businesses in the United
States;
(ii) the economic, energy, and
environmental security of the United States;
and
(iii) foreign relations of the United
States, including existing international
commitments.
(2) Private right of action.--
(A) In general.--Any entity integral to the
national interests of the United States aggrieved by a
violation of subsection (a) may bring a civil action
against the person that violated subsection (a) in an
appropriate district court of the United States.
(B) Relief.--In a civil action brought under
subparagraph (A) in which the plaintiff prevails, the
court may award--
(i) a writ of mandamus or other equitable
or declaratory relief;
(ii) punitive damages not to exceed the
maximum penalty described in paragraph (3)(A);
(iii) reasonable attorney fees and
litigation costs;
(iv) compensatory damages, including any
amount paid by the entity pursuant to the
applicable foreign sustainability due diligence
regulation; and
(v) all other appropriate relief.
(3) Penalties.--A person that violates subsection (a) or a
regulation issued pursuant to this Act--
(A) shall be subject to a civil penalty of not more
than $1,000,000; and
(B) may, at the discretion of the President, for a
period of not longer than 3 years from the date on
which the person is found in violation, be deemed
ineligible to submit a bid for any Federal award or
contract.
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