March 12, 2025
Mr. Hagerty introduced the following bill; which was read twice and referred to the Committee on Foreign Relations
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.
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.