,,ii #aaith ,,congress #ast ,session ,s4 #ihe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbe,mr4 ,hagerty introduced the following bill2 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 regulation1 including the ,corporate ,sustainability ,due ,diligence ,directive of the ,european ,union1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,prevent ,regulatory ,overreach from ,turning ,essential ,companies into ,targets ,act of #bjbe or the ,,protect ,,usa ,act of #bjbe4 #b4 ,findings ,congress makes the following findings3 7#a7 ,the ability of citizens of the ,united ,states to engage in international commerce is a fundamental concern of the policy of the ,united ,states4 7#b7 ,entities in the extractive and manufacturing sectors contribute significantly to the prosperity of the ,united ,states and the growth of the world economy4 7#c7 ,maintaining and1 in some cases1 increasing access to certain supplies and materials from the extractive sector1 including agriculture1 energy1 mining1 and timber1 and access to materials from the manufacturing sector1 are critically important for promoting economic development and human progress in the ,united ,states and around the world4 7#d7 ,restrictions1 particularly restrictions adopted unilaterally by foreign countries that are substantially different from restrictions applied by the ,united ,states1 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 employment1 economic stability1 scientific progress1 and international trade1 with the potential to impede domestic and foreign policy goals4 #c4 ,definitions ,in this ,act3 7#a7 ,entity integral to the national interests of the ,united ,states ,the term entity integral to the national interests of the ,united ,states means any partnership1 corporation1 limited liability company1 or other business entity that-- 7,a7 does business with any part of the ,federal ,government1 including ,federal contract awards or leases2 7,b7 is organized under the laws of any ,state or territory within the ,united ,states1 or of the ,district of ,columbia1 or under any ,act of ,congress or a foreign subsidiary of any such entity that-- 7i7 derives not less than #be percent of its revenue from activities related to the extraction or production of raw materials from the earth1 including-- 7,i7 cultivating biomass 7whether or not for human consumption72 7,,ii7 exploring or producing fossil fuels2 7,,iii7 mining2 and 7,,iv7 processing any material derived from an activity described in subclause 7,i71 7,,ii71 or 7,,iii7 for human use or benefit2 7ii7 has a primary ,north ,american ,industry ,classification ,system code or foreign equivalent associated with the manufacturing sector2 7iii7 derives not less than #be percent of its revenue from activities related to the mechanical1 physical1 or chemical transformation of materials1 substances1 or components into new products2 or 7iv7 is engaged in-- 7,i7 the production of arms or other products integral to the national defense of the ,united ,states2 or 7,,ii7 the production1 mining1 or processing of any critical mineral2 or 7,c7 the ,president otherwise identifies as integral to the national interests of the ,united ,states4 7#b7 ,critical mineral ,the term critical mineral includes-- 7,a7 any mineral identified as a critical mineral in section #gjjb7;a7 of the ,energy ,act of #bjbj 7#cj ,u4,s4,c4 #afjf7;a772 or 7,b7 any fuel mineral1 including fossil fuels and any fraction1 distillate1 or other by-product of a fuel mineral4 7#c7 ,foreign sustainability due diligence regulation 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term foreign sustainability due diligence regulation means any law1 regulation1 or other legal instrument adopted by a foreign government that requires any person to undertake-- 7i7 an assessment of the environmental or social impacts of its operations or value chain2 7ii7 action to address any impacts identified in the assessment described in clause 7i72 and 7iii7 reporting of the impacts and actions described in clauses 7i7 and 7ii74 7,b7 ,exception ,the term foreign sustainability due diligence regulation does not apply to any law1 regulation1 or other legal instrument that is substantively similar to a law1 regulation1 or other legal instrument that has been adopted or approved by an ,act of ,congress4 7,c7 ,inclusion of ,corporate ,sustainability ,due ,diligence ,directive ,the term foreign sustainability due diligence regulation includes-- 7i7 the entirety of the ,corporate ,sustainability ,due ,diligence ,directive adopted by the ,european ,union2 7ii7 any successor directive adopted by the ,european ,union or any member country of the ,european ,union2 and 7iii7 any precursor directive adopted by any member country of the ,european ,union4 #d4 ,prohibition on compliance with foreign sustainability due diligence regulations 7a7 ,in general ,except as provided in subsection 7b71 no entity integral to the national interests of the ,united ,states may comply with any foreign sustainability due diligence regulation4 7b7 ,exception for ordinary business activities ,subsection 7a7 does not prohibit an entity from undertaking actions that it may lawfully take-- 7#a7 to comply with a statute of the ,united ,states2 or 7#b7 in the ordinary course of business4 7c7 ,hardship relief process 7#a7 ,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 7a7 may petition the ,president for an exemption from such prohibition4 7#b7 ,decision ,not later than #cj days after the date on which the ,president receives a petition from an entity submitted under paragraph 7#a71 the ,president shall provide a written decision to the entity that-- 7,a7 grants or denies the requested exemption2 7,b7 contains a statement setting forth the basis for the decision2 and 7,c7 in the case of a granted exemption1 describes any condition that the exemption is subject to1 as determined by the ,president4 7#c7 ,factors to be considered ,in making the decision required by paragraph 7#b71 the ,president shall consider-- 7,a7 the extent to which the denial of a petition submitted under paragraph 7#a7 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 ,states2 7,b7 possible adverse effects on the economy in any locality or region of the ,united ,states1 including adverse effects on employment2 7,c7 the degree to which granting the petition would impact1 directly or indirectly1 the ,united ,states2 and 7,d7 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 regulation4 #e4 ,prohibition against adverse action for compliance with this ,act 7a7 ,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 regulation4 7b7 ,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 ,states1 unless otherwise provided by an ,act of ,congress4 7c7 ,enforcement 7#a7 ,actions by the ,president 7,a7 ,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 regulation4 7,b7 ,determination of public interest ,in determining under subparagraph 7,a7 whether an action by the ,president is in the public interest1 the ,president shall take into account the impact of the adverse action described in that subparagraph on-- 7i7 consumers and businesses in the ,united ,states2 7ii7 the economic1 energy1 and environmental security of the ,united ,states2 and 7iii7 foreign relations of the ,united ,states1 including existing international commitments4 7#b7 ,private right of action 7,a7 ,in general ,any entity integral to the national interests of the ,united ,states aggrieved by a violation of subsection 7a7 may bring a civil action against the person that violated subsection 7a7 in an appropriate district court of the ,united ,states4 7,b7 ,relief ,in a civil action brought under subparagraph 7,a7 in which the plaintiff prevails1 the court may award-- 7i7 a writ of mandamus or other equitable or declaratory relief2 7ii7 punitive damages not to exceed the maximum penalty described in paragraph 7#c77;,a72 7iii7 reasonable attorney fees and litigation costs2 7iv7 compensatory damages1 including any amount paid by the entity pursuant to the applicable foreign sustainability due diligence regulation2 and 7v7 all other appropriate relief4 7#c7 ,penalties ,a person that violates subsection 7a7 or a regulation issued pursuant to this ,act-- 7,a7 shall be subject to a civil penalty of not more than #a1jjj1jjj2 and 7,b7 may1 at the discretion of the ,president1 for a period of not longer than #c years from the date on which the person is found in violation1 be deemed ineligible to submit a bid for any ,federal award or contract4