H.R. 8744

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8744 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8744

To prohibit the import of certain goods produced, sourced, made, or 
otherwise derived from deforestation and the sale of such items in 
interstate commerce, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 12, 2026

Mr. Doggett (for himself, Ms. Ansari, Ms. Brownley, Mr. Casar, Mr. 
Casten, Ms. Castor of Florida, Mr. Cleaver, Mr. Cohen, Ms. Escobar, Mr. 
Frost, Mrs. Grijalva, Ms. Jayapal, Mr. Johnson of Georgia, Ms. Lee of 
Pennsylvania, Mr. McGovern, Ms. Norton, Mr. Pocan, Mr. Quigley, Mr. 
Raskin, Ms. Schakowsky, Ms. Tlaib, and Ms. Williams of Georgia) 
introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committees on Foreign Affairs, 
and Energy and Commerce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To prohibit the import of certain goods produced, sourced, made, or 
otherwise derived from deforestation and the sale of such items in 
interstate commerce, 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 ``Trade Responsibly for Environmental 
Emissions Act'' or the ``TREE Act''.

SEC. 2. PROHIBITION ON IMPORT AND SALE IN INTERSTATE COMMERCE OF 
DEFORESTATION GOODS.

(a) In General.--Beginning on January 1, 2029, it shall be unlawful 
for any operator or trader--
(1) to import into the United States any deforestation 
good; or
(2) introduce into interstate commerce, manufacture for 
introduction into interstate commerce, or sell, trade, or 
advertise in interstate commerce in the United States any 
deforestation good.
(b) False Labeling.--It shall be unlawful for any operator or 
trader to make or submit any false record, account, label, or other 
information, with respect to any deforestation good that has been, or 
is intended to be, imported into the United States.

SEC. 3. ENFORCEMENT.

(a) Due Diligence Statement.--The Commissioner of Customs and 
Border Protection shall require a due diligence statement that complies 
with subsection (b) to be provided by each operator or trader who 
imports into the United States a covered commodity.
(b) Requirements.--The due diligence statement required under 
subsection (a) shall contain--
(1) a description of each covered commodity, that 
includes--
(A) the trade name of each such commodity;
(B) the quantity and required unit of measurement, 
as determined by the Commissioner of Customs and Border 
Protection, of each such commodity;
(C) with respect to each such commodity that is 
wood or is otherwise produced using wood, the common 
and scientific names of such wood; and
(D) with respect to each such commodity coming from 
countries categorized under section 3 as a Level I or 
Level II risk, the country of origin and geolocation 
coordinates, as determined practical by the 
Commissioner of Customs and Border Protection;
(2) the name, postal address, and contact information of 
each person that supplied to such operator or trader each 
covered commodity;
(3) adequately conclusive and verifiable information that 
the covered products are deforestation free; and
(4) any other information the Commissioner of Customs and 
Border Protection determines necessary to determine that each 
covered commodity is not a deforestation good and has been 
produced in accordance with the relevant law regarding 
deforestation of the country of origin.
(c) Civil Penalties.--
(1) In general.--In addition to any civil or criminal 
penalty that may be imposed under title 18, United States Code, 
or any other provision of law, any operator or trader who 
violates this Act, or any regulation issued under this Act, 
shall--
(A) be assessed a civil penalty in an amount not 
more than 4 percent of the total United States revenue 
of such operator or trader for the fiscal year 
preceding the issuance of such fine;
(B) have each deforestation good confiscated; and
(C) for a period of not more than 12 months, be 
ineligible--
(i) to enter into any contract with any 
Federal agency for the procurement of goods, 
materials, and services; and
(ii) for any Federal funding, grants, and 
concessions.
(2) Determining fine.--In calculating each fine required 
under paragraph (1), the United States Trade Representative may 
consider--
(A) the environmental damage caused by the 
deforestation good;
(B) the ability of the violator to pay;
(C) ensure such fine effectively deprives the 
violator of the economic benefits derived from 
importing the deforestation good; and
(D) gradually increase such fine for each repeat 
violation until the fine is in an amount equal to 4 
percent of the total United States revenue of the 
violator for the fiscal year preceding the issuance of 
such fine.
(3) Serious or repeat violations.--In the case of a serious 
or repeat violation, an operator or trader shall be prohibited 
from importing into the United States any good for a period of 
not more than 12 months.
(4) Determining serious violation.--In determining what 
constitutes a serious violation under paragraph (3), the United 
States Trade Representative shall consider--
(A) the nature, circumstances, extent, and gravity 
of the violation;
(B) the degree of culpability; and
(C) such other matters as the United States Trade 
Representative, in consultation with the Commissioner 
of Customs and Border Protection, determines necessary.
(d) Increased Inspection Rates.--
(1) In general.--Beginning on December 31, 2029, based on 
the country categorization list required under section 3(a)(1), 
the Commissioner of Customs and Border Protection shall 
implement the following increased inspection rates:
(A) Of the goods originating from a country, or 
region thereof, categorized by the United States Trade 
Representative under section 3(a)(1) as a Level I risk, 
not less than 9 percent of such goods imported into the 
United States in a calendar year shall be inspected for 
deforestation goods.
(B) Of the goods originating from a country, or 
region thereof, categorized by the United States Trade 
Representative under section 3(a)(1) as a Level II 
risk, not less than 3 percent of such goods imported 
into the United States in a calendar year shall be 
inspected for deforestation goods.
(C) Of the goods originating from a country, or 
region thereof, categorized by the United States Trade 
Representative under section 3(a)(1) as a Level III 
risk, not less than 1 percent of such goods imported 
into the United States in a calendar year shall be 
inspected for deforestation goods.
(2) Rulemaking authority.--The Commissioner of Customs and 
Border Protection may, in consultation with the Attorney 
General, Secretary of State, United States Trade 
Representative, Secretary of Commerce, and Administrator of the 
United States Agency for International Development, promulgate 
such rules and regulations as such Commissioner determines 
necessary to carry out paragraph (1).
(e) Interstate Commerce Prohibition.--Not later than January 1, 
2029, the Secretary of the Interior shall by regulation establish a 
plan to enforce the prohibition under section 1(a)(2).

SEC. 4. COUNTRY CATEGORIZATION BASED ON RISK POSED OF IMPORTING 
DEFORESTATION GOODS.

(a) Country Categorization.--
(1) In general.--The United States Trade Representative 
shall--
(A) not later than December 1, 2029, and every 
other year thereafter, categorize every country under 
one of the three risk levels described under subsection 
(b), except as provided under paragraph (2), based on 
the risk that imports originating from such country are 
deforestation goods; and
(B) not later than December 31, 2029, and every 
other year thereafter--
(i) publish such categorization on the 
internet website of the United States Trade 
Representative; and
(ii) formally notify each country, as 
described under subsection (c)(4), of the risk 
level of such country and of each regional 
categorization of such country under paragraph 
(2).
(2) Regional categorizations.--A region within a country 
may be categorized by the United States Trade Representative 
under a different risk level under subsection (b) than the risk 
level such country is categorized under if sufficient 
information is available for the United States Trade 
Representative to determine that such region warrants a 
different categorization than the country such region is in.
(3) Interim categorization.--For the period beginning on 
January 1, 2029, and ending on the date on which the United 
States Trade Representative completes the risk level 
categorization required under paragraph (1), each country, and 
each region thereof, shall be categorized under subsection 
(b)(2) as a Level II risk.
(b) Risk Levels.--
(1) Level i.--A country, or region thereof, shall be 
categorized as a ``Level I'' if the imports originating from 
such country, or region thereof, pose a high risk of being 
deforestation goods.
(2) Level ii.--A country, or region thereof, shall be 
categorized as a ``Level II'' if the imports originating from 
such country, or region thereof, pose a moderate risk of being 
deforestation goods.
(3) Level iii.--A country, or region thereof, shall be 
categorized as a ``Level III'' if the imports originating from 
such country, or region thereof, pose a low risk of being 
deforestation goods.
(c) Determining Risk Level.--
(1) Assessment.--The risk level categorization required 
under subsection (a)(1) shall be based on an objective and 
transparent assessment, determined by the United States Trade 
Representative, considering the latest scientific evidence and 
internationally recognized sources, and shall be primarily 
based on the following criteria:
(A) The rate of deforestation and forest 
degradation since December 31, 2020, within the 
country, or region thereof, being categorized.
(B) The rate at which the country, or region 
thereof, being categorized is expanding the use of 
agriculture land for covered products, covered 
commodities, and covered sources.
(C) The production trends of the covered products, 
covered commodities, and covered sources within the 
country, or region thereof, being categorized.
(2) Additional considerations.--The assessment required 
under paragraph (1) shall also consider the following:
(A) Information related to the effective covering 
of emissions and removals from agriculture, forestry, 
and land use in the nationally determined contribution 
to the United Nations Framework Convention on Climate 
Change (adopted in Rio de Janeiro, Brazil, in June 
1992) that may be submitted by the country, or region 
thereof, being categorized, regional authorities and 
operators in such country, or region thereof, 
nongovernmental organizations, indigenous peoples, 
local communities, civil society organizations and any 
other interested party the United States Trade 
Representative determines appropriate.
(B) Agreements and other instruments between the 
country, or region thereof, being categorized and the 
United States that address deforestation, forest 
degradation, and compliance with section 1.
(C) Whether the country, or region thereof, being 
categorized has national, regional, or local laws in 
place to combat deforestation and forest degradation, 
including whether such country, or region thereof, 
has--
(i) implemented Article 5 the decision by 
the United Nations Framework Convention on 
Climate Change's 21st Conference of Parities in 
Paris, France, adopted on December 12, 2015 
(commonly referred to as the ``Paris 
Agreement'');
(ii) whether such country effectively 
enforces such laws; and
(iii) whether the penalties imposed under 
such laws are of sufficient severity to deprive 
the penalized operator or trader of the 
benefits gained from engaging in deforestation 
or forest degradation.
(D) Whether the country, or region thereof, being 
categorized has transparent data on deforestation and 
forest degradation and, where applicable, the existence 
of, compliance with, or effective enforcement of laws 
protecting human rights, the rights of indigenous 
peoples, and local communities.
(E) Sanctions imposed by the Security Council of 
the United Nations or the United States on the import 
or export of deforestation goods.
(F) Risk classification determined by the European 
Union under the European Union Deforestation 
Regulation.
(3) Engagement.--The United States Trade Representative 
shall engage with each country, or region thereof, that is 
categorized, at risk of being categorized as a Level I risk, 
with the objective of reducing the level of risk of such 
country or region thereof.
(4) Notification.--Upon finalizing the second risk-level 
categorization required under subsection (a)(1), and each risk-
level categorization thereafter, the United States Trade 
Representative shall--
(A) formally notify each country of a change from 
the most recently published risk-level categorization 
under subsection (a)(2) in the risk-level of such 
country or region thereof;
(B) provide not longer than 6 months for such 
country to respond; and
(C) include in such notification the following:
(i) Each reason for the intention to change 
the risk level of the country or region 
thereof.
(ii) In the case of an increase in risk 
level, an invitation to respond in writing to 
provide information on measures taken by such 
country to remedy the situation.
(iii) The consequences such country will 
face because of a change in the risk level of 
such country or region thereof.
(d) Duty To Update.--The United States Trade Representative shall 
update the risk-level categorization required under subsection (a)(1) 
earlier than required under such subsection if any new evidence is 
received that the United States Trade Representative determines affects 
the risk-level categorization of a country or region thereof.
(e) Rulemaking Authority.--The United States Trade Representative 
may, in consultation with the Attorney General, Secretary of State, 
Commissioner of Customs and Border Protection, Secretary of Commerce, 
and Administrator of the United States Agency for International 
Development, promulgate such rules and regulations as such 
representative determines necessary to carry out this paragraph.

SEC. 5. INTERNATIONAL ASSISTANCE.

(a) Assistance to Level I Countries.--The Secretary of State shall 
provide preference to countries categorized under section 1(d)(2)(A) as 
a Level I risk when providing financial assistance related to 
deforestation and forest-related degradation.
(b) Revenue From Penalties.--With respect to all amounts collected 
in the form of civil penalties pursuant to section 1, and 
notwithstanding any other provision of law, the Secretary of the 
Treasury shall use an amount equal to half of the total amount of 
penalties collected in the preceding fiscal year to provide assistance 
to under developed countries with respect to deforestation and forest-
degradation management.

SEC. 6. DEFINITIONS.

In this Act:
(1) Agriculture use.--The term ``agriculture use'' means 
the use of land for the purpose of--
(A) agriculture, including agricultural plantations 
and set-aside agricultural areas; or
(B) rearing livestock.
(2) Covered commodity.--The term ``covered commodity'' 
means each of the following:
(A) Cattle.
(B) Cocoa.
(C) Palm oil.
(D) Rubber.
(E) Soy.
(F) Wood.
(3) Covered product.--The term ``covered product'' means 
any item that has been fed with, made with, contains, or was 
otherwise produced with a covered commodity.
(4) Covered source.--The term ``covered source'' means any 
precursor to a covered commodity that is used to produce such 
commodity.
(5) Deforestation.--The term ``deforestation'' means the 
loss of a forest resulting from the whole or partial conversion 
of such forest to--
(A) agricultural use or another non forest land 
use; or
(B) a tree plantation.
(6) Deforestation good.--The term ``deforestation good'' 
means each of the following, only if produced, sourced, made, 
or otherwise derived from land, on or after December 31, 2020, 
that is subject to deforestation or forest degredation:
(A) A covered product.
(B) A covered commodity.
(C) A covered source.
(7) Forest.--The term ``forest'' means land spanning more 
than 0.5 hectares with trees higher than 5 meters and a canopy 
of more than 10 percent, or trees able to reach those 
thresholds in situ, excluding land that is predominately under 
agricultural or urban land use.
(8) Forest degradation.--The term ``forest degradation''--
(A) means human-driven structural changes to forest 
cover that result in a change in species composition, 
structure, or function of the forest, which can be 
indicated by factors such as--
(i) impacts to carbon storage and other 
ecosystem services;
(ii) native species abundance and 
composition; and
(iii) tree age class distribution; and
(B) includes the conversion of--
(i) primary forests, naturally regenerating 
forests, or old growth forests into plantation 
forests or into other wooded land; and
(ii) primary forests or old growth forests 
into temporarily unstocked forests due to 
clearcutting or other harvesting.
(9) Operator.--The term ``operator'' means any person who, 
in the course of commercial activity--
(A) places relevant products into the interstate 
commerce of the United States; or
(B) imports relevant products into the United 
States.
(10) Trader.--The term ``trader'' means any person in the 
supply chain other than the operator who, in the course of a 
commercial activity, makes a product available to be imported 
into the United States.
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