Bill > S985

This bill establishes a legal framework to prevent U.S. companies considered "integral to national interests" from complying with foreign sustainability due diligence regulations, specifically targeting the European Union's Corporate Sustainability Due Diligence Directive. The bill defines "entities integral to national interests" as businesses that do federal government work, are organized in the U.S., and are primarily involved in extractive industries (like mining, agriculture, energy), manufacturing, defense production, or critical mineral processing. Under this legislation, such entities are prohibited from following foreign sustainability regulations that require environmental or social impact assessments, mitigation actions, or reporting. Companies facing potential hardship can petition the President for an exemption, with the President evaluating factors like potential economic impact and ability to participate in essential value chains. The bill also includes robust enforcement mechanisms, allowing the President to protect companies from adverse actions and providing a private right of action for affected entities, with potential penalties up to $1 million and potential federal contract ineligibility for those who attempt to enforce foreign sustainability regulations against U.S. companies. The underlying rationale is to protect U.S. businesses from what Congress views as potentially restrictive and economically harmful international regulatory frameworks.

Government Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/985/all-info