TREE Act

[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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