S. 985

119th CONGRESS 1st Session

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 · Sponsor: Mr. Hagerty · Committee: Committee on Foreign Relations

S. 985

SEC. 1. Short title

This Act may be cited as the or the .

SEC. 2. Findings

Congress makes the following findings:
- The ability of citizens of the United States to engage in international commerce is a fundamental concern of the policy of the United States.
- Entities in the extractive and manufacturing sectors contribute significantly to the prosperity of the United States and the growth of the world economy.
- 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.
- 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:
- The term entity integral to the national interests of the United States means any partnership, corporation, limited liability company, or other business entity that—
- The term includes— critical mineral

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—
  - to comply with a statute of the United States; or
  - 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—
    - grants or denies the requested exemption;
    - contains a statement setting forth the basis for the decision; and
    - 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—
    - 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;
    - possible adverse effects on the economy in any locality or region of the United States, including adverse effects on employment;
    - the degree to which granting the petition would impact, directly or indirectly, the United States; and
    - 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
  - 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—
    - shall be subject to a civil penalty of not more than $1,000,000; and
    - 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.