FOREST Act of 2021
Bill: S.2950 | Sponsor: Sen. Schatz, Brian (D-HI)
Policy area: Foreign Trade and International Finance

Summary:
Fostering Overseas Rule of law and Environmentally Sound Trade Act of 2021 or the FOREST Act of 2021
This bill restricts certain commodities produced on illegally deforested land from accessing the U.S. market.
Specifically, the bill prohibits the importation of any product made wholly or in part of a covered commodity produced from illegally deforested land. The bill outlines requirements for import declarations of covered commodities.
The U.S. Trade Representative (USTR) must, within 30 days, publish (1) an initial list of covered commodities that consists of palm oil, soybeans, cocoa, cattle, rubber, and wood pulp; and (2) an initial list of covered products that are defined by the bill in accordance with the Harmonized Tariff Schedule. These lists must be updated at least on an annual basis.
Further, the USTR must identify foreign countries without adequate and effective protection against illegal deforestation caused by the production of commodities that are likely to enter the United States. The USTR must develop an action plan that includes benchmarks for each identified country.
Additionally, the bill creates an interagency working group to provide advice and recommendations to the USTR, U.S. Customs and Border Protection, and other relevant agencies.
The bill provides funding to assist foreign governments in combating illegal deforestation.
The bill also includes illegal deforestation as a specified unlawful activity under a federal financial crime statute.
The bill establishes a federal procurement preference for commodities that are not produced from land subject to deforestation.

To combat illegal deforestation by prohibiting the importation of 
products made wholly or in part of certain commodities produced on land 
       undergoing illegal deforestation, 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 ``Fostering Overseas Rule of law and 
Environmentally Sound Trade Act of 2021'' or the ``FOREST Act of 
2021''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) According to the Food and Agriculture Organization of 
        the United Nations, 31 percent of land on earth is covered in 
        forests, but that area is rapidly decreasing. An estimated 
        1,600,000 square miles of forest has been converted to other 
        land uses since 1990, with 42,500 square miles converted 
        annually since 2010. Since the early 2000s, \2/3\ of global 
        forest cover loss has occurred in the tropics and subtropics.
            (2) The expansion of commercial agriculture into tropical 
        forests is the largest driver of forest conversion, led by 
        cattle ranching and the cultivation of soy and palm oil. An 
        estimated 69 percent of such conversion between 2013 and 2019 
        was carried out in contravention of the laws of the country in 
        which the conversion occurred.
            (3) Such illegal deforestation results in the emission of 
        more than 2.7 gigatons of carbon dioxide equivalent per year, 
        more than the entire annual fossil fuel emissions of India in 
        2018.
            (4) Limiting global temperatures below 1.5 degrees Celsius 
        above preindustrialized levels requires rapid and significant 
        reductions in deforestation globally. Cost-effective greenhouse 
        gas emission mitigation from forests and land use can provide 
        roughly \1/3\ of the mitigation required by 2030 to stay below 
        2 degrees Celsius.
            (5) Forests contain most of the world's terrestrial 
        biodiversity, providing habitats for 80 percent of amphibian 
        species, 75 percent of bird species, 68 percent of mammal 
        species, and 60,000 different species of trees.
            (6) Forests are also an important source of livelihoods, 
        food, and fuel, with more than 1,600,000,000 people depending 
        directly on forests for their livelihoods.
            (7) The Intergovernmental Science-Policy Platform on 
        Biodiversity and Ecosystem Services found in 2019 that the rate 
        of global species extinction is accelerating and is now tens to 
        hundreds of times higher than the average rate over the last 
        10,000,000 years, threatening the loss of 1,000,000 species, 
        and land-use change is the direct driver with the largest 
        relative impact on terrestrial ecosystems.
            (8) Deforestation in many countries is closely associated 
        with violations of the rights of indigenous peoples and local 
        communities and with the exploitation of workers, including 
        through the use forced labor and child labor, and in many cases 
        is enabled by corruption, criminality, and violence against 
        individuals defending their land rights and environment.
            (9) According to the United Nations High Commissioner for 
        Human Rights, individuals defending the rights of communities 
        and indigenous peoples to their traditional lands and 
        environment are particularly vulnerable to threats and violence 
        and accounted for roughly half of the killings of human rights 
        defenders documented in 2019.
            (10) Congress has taken a number of steps to address the 
        trade in illegal timber to protect legitimate forestry 
        businesses and reduce illegal logging globally, such as, in 
        section 8204 of the Food, Conservation, and Energy Act of 2008 
        (Public Law 110-246; 122 Stat. 2052), amending the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3371 et seq.) to prohibit the 
        importation of illegal plant products, including such products 
        made from illegally logged wood.
            (11) As with illegal timber, agricultural commodities 
        produced on illegally deforested land enter international 
        markets, including the United States, and compete with 
        commodities produced legally.
            (12) The United States is a significant market for products 
        made wholly or in part of commodities such as palm oil, cattle, 
        cocoa, and rubber at risk of being produced on illegally 
        deforested land. For example, in 2020, the United States 
        imported--
                    (A) processed cowhides and beef products valued at 
                more than $500,000,000 from Brazil, where cattle 
                ranching is the largest driver of deforestation in the 
                Amazon forest and other biomes, and an estimated 95 
                percent of all deforestation was not in full compliance 
                with applicable laws; and
                    (B) crude palm oil and palm kernel oil valued at 
                more than $880,000,000 and oleochemicals commonly 
                derived from palm oils valued at more than 
                $390,000,000, from Indonesia, where the expansion of 
                palm oil plantations is the largest driver of 
                deforestation, and government audits of the sector in 
                recent years have indicated widespread noncompliance 
                with applicable laws.
            (13) The lack of traceability in the supply chains for such 
        commodities and the absence of importer due diligence 
        requirements increases the risk that United States trade is 
        associated with illegal deforestation and human rights abuses, 
        preventing United States consumers from knowing where or how 
        the goods they purchase were produced and putting companies 
        that ensure legal sourcing at a competitive disadvantage.
    (b) Sense of Congress.--It is the sense of Congress that the United 
States must do more to address illegal deforestation from agricultural 
commodities, including--
            (1) avoiding trade that incentivizes foreign governments to 
        allow illegal deforestation;
            (2) assisting foreign governments in eliminating illegal 
        deforestation and limiting all deforestation to the extent 
        practicable;
            (3) requiring that goods entering the United States market 
        be subject to requirements, including the necessary supply 
        chain traceability, to reduce the risk of association with 
        illegal deforestation;
            (4) preventing the United States financial system from 
        being used to launder proceeds from illegal deforestation; and
            (5) providing incentives to suppliers of the Federal 
        Government to adopt and implement policies to eliminate goods 
        produced on or from deforested land from their supply chains.

SEC. 3. PROHIBITION ON IMPORTATION OF COMMODITIES PRODUCED ON ILLEGALLY 
              DEFORESTED LAND AND PRODUCTS MADE FROM SUCH COMMODITIES.

    (a) In General.--The Tariff Act of 1930 is amended by inserting 
after section 527 (19 U.S.C. 1527) the following:

``SEC. 527A. PROHIBITION ON IMPORTATION OF PRODUCTS MADE WHOLLY OR IN 
              PART OF COMMODITIES PRODUCED ON ILLEGALLY DEFORESTED 
              LAND.

    ``(a) In General.--It shall be unlawful for any person to import 
any product made wholly or in part of a covered commodity produced from 
land that undergoes illegal deforestation on or after the date of the 
enactment of the FOREST Act of 2021.
    ``(b) Import Declarations.--
            ``(1) In general.--On and after the date that is one year 
        after the date of the enactment of the FOREST Act of 2021, and 
        subject to paragraph (2), a person may not import a covered 
        product unless the person files upon entry a declaration 
        stating that the person has exercised reasonable care to assess 
        and mitigate the risks that any covered commodity used to make 
        the covered product was produced from land subject to illegal 
        deforestation on or after such date of enactment.
            ``(2) Covered commodities from countries under an action 
        plan.--On and after the date that is one year after an action 
        plan applicable to a foreign country is finalized under 
        subsection (d)(2), a person may not import a covered product 
        containing any covered commodity produced in the country and 
        identified in the action plan unless the person files upon 
        entry a declaration that includes sufficient information to 
        show--
                    ``(A)(i) the supply chain and the point of origin 
                of the covered commodity; and
                    ``(ii) steps taken to assess and mitigate the risks 
                that the point of origin was subject to illegal 
                deforestation on or after the date of the enactment of 
                the FOREST Act of 2021; or
                    ``(B)(i) all possible points of origin that could 
                have contributed to the supply chain of the covered 
                commodity, if mixing or points of aggregation exist 
                within the supply chain; and
                    ``(ii) steps taken to assess and mitigate the risks 
                that any possible points of origin were subject to 
                illegal deforestation on or after such date of 
                enactment.
            ``(3) Treatment of products subject to multiple import 
        declaration requirements.--In the case of a product for which 
        an import declaration is required by this subsection and 
        section 3(f) of the Lacey Act Amendments of 1981 (16 U.S.C. 
        3372(f)), U.S. Customs and Border Protection and the Animal and 
        Plant Health Inspection Service shall coordinate to limit the 
        administrative burden, to the extent practicable, for 
        importers.
            ``(4) Guidance.--Not later than 90 days after the date of 
        the FOREST Act of 2021, and as appropriate thereafter, the 
        Commissioner of U.S. Customs and Border Protection (in this 
        section referred to as the `Commissioner')--
                    ``(A) shall publish guidance on what constitutes 
                reasonable care under paragraph (1) and sufficient 
                information under paragraph (2), which may include 
                guidance with respect to specific commodities, as 
                appropriate; and
                    ``(B) may, as appropriate, issue guidance about the 
                potential role of third-party certifications assisting 
                importers with meeting the requirements of this 
                section.
    ``(c) Lists of Covered Commodities and Covered Products.--
            ``(1) Initial lists.--Not later than 30 days after the date 
        of the enactment of the FOREST Act of 2021, the United States 
        Trade Representative (in this section referred to as the `Trade 
        Representative') shall publish the following:
                    ``(A) An initial list made up of the following 
                commodities (in this section referred to as `covered 
                commodities'):
                            ``(i) Palm oil.
                            ``(ii) Soybeans.
                            ``(iii) Cocoa.
                            ``(iv) Cattle.
                            ``(v) Rubber.
                            ``(vi) Wood pulp.
                    ``(B) An initial list made up of the following 
                products made wholly or in part of a covered commodity 
                (in this section referred to as `covered products'):
                            ``(i) Palm oil or palm oil products 
                        classifiable under any of the following 
                        headings or subheadings of the HTS:


``1511................................  2905.17.00...................  3823.11.00
1513.21.00............................  2905.45.00...................  3823.12.00
1513.29.00............................  2915.70.01...................  3823.19
2306.60.00............................  2915.90......................  3823.70.
 

                            ``(ii) Soybeans or soybean products 
                        classifiable under heading 1201 or 1507 or 
                        subheading 2304.00.00 of the HTS.
                            ``(iii) Cocoa or cocoa products 
                        classifiable under heading 1803 or 1806 or 
                        subheading 1801.00.00, 1802.00.00, 1804.00.00, 
                        or 1805.00.00 of the HTS.
                            ``(iv) Cattle or cattle products 
                        classifiable under any of the following 
                        headings or subheadings of the HTS:


``0201................................  0206.21.00...................  1602.50
0202..................................  0206.22.00...................  4104
0206.10.00............................  0206.29.00...................  4107.
 

                            ``(v) Rubber or rubber products 
                        classifiable under heading 4001 or 4011 of the 
                        HTS.
                            ``(vi) Pulp or pulp products classifiable 
                        under any of the following headings or 
                        subheadings of the HTS:


``4703................................  4804.........................  4818
4801.00.01............................  4805.........................  4819
4802..................................  4810.........................  4820
4803.00...............................  4811.........................  4823.
 

            ``(2) Reviews and updates.--
                    ``(A) In general.--Not less frequently than 
                annually, the Trade Representative shall--
                            ``(i) review the list of covered 
                        commodities published under subparagraph (A) of 
                        paragraph (1) and the list of covered products 
                        published under subparagraph (B) of that 
                        paragraph to assess whether covered commodities 
                        or covered products, as the case may be, should 
                        be added to or removed from the lists to ensure 
                        that the scope of the lists is sufficient to 
                        increasingly deter illegal deforestation and to 
                        ensure that no material amount of a commodity 
                        produced from illegally deforested land enters 
                        the United States; and
                            ``(ii) publish updated lists based on that 
                        review.
                    ``(B) Effect on import declarations.--Any addition 
                under subparagraph (A) to the list of covered products 
                under paragraph (1)(B) shall be subject to the 
                declaration requirement under subsection (b) on and 
                after the date that is one year after the updated list 
                including the addition is published.
            ``(3) Solicitation of input.--In updating the lists under 
        paragraph (1) as required by paragraph (2), the Trade 
        Representative shall--
                    ``(A) consult with the Secretary of State and the 
                Administrator of the United States Agency for 
                International Development; and
                    ``(B) coordinate and solicit relevant information 
                from--
                            ``(i) the interagency working group 
                        established under subsection (f);
                            ``(ii) the advisory committee established 
                        under subsection (g);
                            ``(iii) other Federal, State, and local 
                        agencies in the United States; and
                            ``(iv) the public.
    ``(d) Action Plans for Countries Without Adequate and Effective 
Protection Against Illegal Deforestation.--
            ``(1) Identification of countries.--
                    ``(A) In general.--Not later than 180 days after 
                the date of the enactment of the FOREST Act of 2021, 
                the Trade Representative shall--
                            ``(i) identify foreign countries without 
                        adequate and effective protection against 
                        illegal deforestation caused by the production 
                        of commodities likely to enter the United 
                        States; and
                            ``(ii) make available to the public--
                                    ``(I) a list of the countries 
                                identified under clause (i); and
                                    ``(II) data and analysis related to 
                                the considerations described in 
                                subparagraph (B).
                    ``(B) Considerations.--In identifying a foreign 
                country under subparagraph (A), the Trade 
                Representative shall consider--
                            ``(i) trends of deforestation and illegal 
                        deforestation in that country;
                            ``(ii) policies and practices of the 
                        government of the country that deny adequate 
                        and effective enforcement against illegal 
                        deforestation;
                            ``(iii) trends in the capacity and 
                        effectiveness of enforcement against illegal 
                        deforestation by the country; and
                            ``(iv) the incidence of violence against, 
                        and other violations of the rights of, 
                        indigenous peoples, local residents, and 
                        environmental and human rights defenders in the 
                        country in connection with illegal 
                        deforestation.
                    ``(C) Reassessment.--Not less frequently than every 
                2 years, the Trade Representative shall assess whether 
                additional foreign countries should be identified under 
                subparagraph (A).
            ``(2) Action plans.--
                    ``(A) In general.--Not later than 3 years after the 
                date of the enactment of the FOREST Act of 2021, the 
                Trade Representative shall finalize an action plan with 
                respect to each foreign country identified under 
                paragraph (1).
                    ``(B) Finality.--An action plan developed under 
                subparagraph (A) shall be considered final for the 
                purposes of subsection (b)(2) on the date on which the 
                action plan is posted on a publicly accessible internet 
                website of the Office of the United States Trade 
                Representative.
                    ``(C) Involvement of foreign country and public.--
                The Trade Representative shall--
                            ``(i) seek to involve each foreign country 
                        for which the Trade Representative develops an 
                        action plan under subparagraph (A) in the 
                        development of the action plan for that foreign 
                        country; and
                            ``(ii) release a draft of each action plan 
                        for public review and comment before finalizing 
                        the action plan.
                    ``(D) Goals of action plans.--The Trade 
                Representative shall design an action plan developed 
                under subparagraph (A) with respect to a foreign 
                country to achieve--
                            ``(i) new laws, rules, enforcement 
                        procedures, or agreements to ensure that 
                        illegal deforestation is no longer occurring in 
                        the country;
                            ``(ii) sufficient capacity to enforce 
                        relevant laws;
                            ``(iii) processes to remedy or adjudicate 
                        previous illegal deforestation activities;
                            ``(iv) comprehensive monitoring and data 
                        sharing related to deforestation and potential 
                        impacts to other ecosystems;
                            ``(v) transparency and accessibility of 
                        information with respect to land tenure and 
                        land-use decisions;
                            ``(vi) traceability, transparency, and data 
                        sharing for commodity supply chains; and
                            ``(vii) in the case of a country that is a 
                        party to the decision of the 21st Conference of 
                        Parties of the United Nations Framework 
                        Convention on Climate Change adopted in Paris 
                        December 12, 2015 (commonly known as the `Paris 
                        Agreement'), the incorporation of--
                                    ``(I) forest protection into the 
                                country's nationally determined 
                                contribution under the Paris Agreement; 
                                and
                                    ``(II) deforestation into the 
                                country's greenhouse gas reporting as 
                                required by the Paris Agreement.
                    ``(E) Benchmarks.--
                            ``(i) In general.--The Trade Representative 
                        shall include in each action plan developed 
                        under subparagraph (A) intermediate and final 
                        benchmarks described in clause (ii) and a 
                        timeline for achieving those benchmarks.
                            ``(ii) Benchmarks described.--Benchmarks 
                        described in this clause may be such 
                        legislative, institutional, enforcement, or 
                        other actions as the Trade Representative 
                        determines to be necessary to demonstrate that 
                        the foreign country has achieved the goals 
                        described in subparagraph (D).
                    ``(F) Identification of covered commodities.--The 
                Trade Representative shall identify in the action plan 
                developed under subparagraph (A) with respect to a 
                foreign country the specific covered commodities at 
                risk of being produced on illegally deforested land in 
                that country that shall be subject to the declaration 
                requirement under subsection (b)(2).
            ``(3) Presidential action authorized.--On and after the 
        date on which an action plan released to the public under 
        paragraph (2)(A) with respect to a foreign country has been in 
        place for one year, if the President determines that the 
        country has not substantially complied with the benchmarks in 
        the action plan, the President may take appropriate action with 
        respect to the country.
            ``(4) Petitions for determination of compliance.--
                    ``(A) In general.--A foreign country to which an 
                action plan developed under paragraph (2)(A) applies 
                may petition the Trade Representative to determine that 
                the country has achieved all benchmarks in the action 
                plan.
                    ``(B) Determination of adequacy and effectiveness 
                of protection.--
                            ``(i) In general.--If the Trade 
                        Representative determines under subparagraph 
                        (A) that a foreign country to which an action 
                        plan developed under paragraph (2)(A) applies 
                        has achieved all benchmarks in the action plan, 
                        the Trade Representative shall determine 
                        whether that country, after achieving those 
                        benchmarks, provides adequate and effective 
                        protection against illegal deforestation.
                            ``(ii) Countries that fail to provide 
                        adequate and effective protection against 
                        illegal deforestation.--If the Trade 
                        Representative determines under clause (i) that 
                        a foreign country described in that clause 
                        continues to fail to provide adequate and 
                        effective protection against illegal 
                        deforestation, the Trade Representative shall 
                        develop a new action plan under paragraph 
                        (2)(A) with respect to the country.
                            ``(iii) Countries that provide adequate and 
                        effective protection against illegal 
                        deforestation.--If the Trade Representative 
                        determines under clause (i) that a foreign 
                        country described in that clause provides 
                        adequate and effective protection against 
                        illegal deforestation, the action plan 
                        developed under paragraph (2)(A) with respect 
                        to the country shall terminate.
            ``(5) Consultations.--In identifying foreign countries 
        under paragraph (1), developing action plans under paragraph 
        (2), and making determinations under paragraph (4), the Trade 
        Representative shall--
                    ``(A) consult with the Secretary of State and the 
                Administrator of the United States Agency for 
                International Development; and
                    ``(B) coordinate and solicit relevant information 
                from--
                            ``(i) the interagency working group 
                        established under subsection (f);
                            ``(ii) the advisory committee established 
                        under subsection (g);
                            ``(iii) relevant committees of Congress;
                            ``(iv) other Federal, State, or local 
                        agencies in the United States;
                            ``(v) civil society, indigenous peoples, 
                        and local communities in countries that produce 
                        covered commodities and covered products; and
                            ``(vi) the public.
    ``(e) Enforcement.--
            ``(1) Administration.--
                    ``(A) In general.--The provisions of this section 
                and any regulations issued under this section shall be 
                enforced, as appropriate, by the Commissioner, the 
                Secretary of Agriculture, the Secretary of the 
                Interior, and the Attorney General.
                    ``(B) Audits.--The Administrator of the Animal and 
                Plant Health Inspection Service, in collaboration with 
                the heads of other Federal agencies, shall conduct 
                random audits of importers filing declarations under 
                subsection (b)(1) to ensure such importers are 
                retaining the supporting documentation demonstrating 
                reasonable care was exercised as required by that 
                subsection.
                    ``(C) Agreements.--An official specified in 
                subparagraph (A) may enter into an agreement with any 
                other Federal agency or any State agency or Indian 
                Tribe under which that official may use, with or 
                without reimbursement, the personnel, services, and 
                facilities of the agency or Indian Tribe for the 
                enforcement of this section and regulations issued 
                under this section.
                    ``(D) Availability of information.--Not later than 
                one year after the date of the enactment of the FOREST 
                Act of 2021, the Commissioner shall develop a process 
                to make information filed with a declaration required 
                by subsection (b)(2) (other than information considered 
                to be confidential business information) available to 
                the public.
            ``(2) Coordination of enforcement.--The Commissioner shall 
        share declarations filed under subsection (b) and other 
        information received by U.S. Customs and Border Protection with 
        the Trade Representative, the Secretary of Agriculture, the 
        Secretary of the Interior, the Attorney General, and the heads 
        of other Federal agencies as needed to ensure effective 
        enforcement of this section.
            ``(3) Information from outside sources.--Not later than 180 
        days after the date of the enactment of the FOREST Act of 2021, 
        the Commissioner shall establish a process for receiving 
        information from persons outside U.S. Customs and Border 
        Protection indicating that a covered commodity may be being 
        imported in violation of this section.
            ``(4) Report required.--Not later than 2 years after the 
        date of the enactment of the FOREST Act of 2021, and annually 
        thereafter, the Commissioner, with input from the heads of 
        relevant Federal agencies, shall submit to Congress a report on 
        the enforcement of this section that includes, for the year 
        preceding submission of the report--
                    ``(A) the number of audits conducted by Federal 
                agencies of importers of record to detect potential 
                violations of this section;
                    ``(B) the number of instances in which information 
                was submitted to the Commissioner under paragraph (3);
                    ``(C) the number of investigations initiated into 
                possible violations of this section;
                    ``(D) the number of such investigations initiated 
                based on information submitted to the Commissioner 
                under paragraph (3);
                    ``(E) the results of cases adjudicated following 
                such an investigation;
                    ``(F) the number of such investigations pending as 
                of the date of the report; and
                    ``(G) an explanation of how information submitted 
                to the Commissioner under paragraph (3) was used to 
                prioritize audits and other checks.
    ``(f) Interagency Working Group.--
            ``(1) In general.--There is established an interagency 
        working group to provide advice and recommendations to the 
        Trade Representative, the Commissioner, and the heads of other 
        relevant Federal agencies on the implementation of this 
        section.
            ``(2) Membership.--The interagency working group 
        established under paragraph (1) shall be composed of 
        representatives of--
                    ``(A) the Department of State;
                    ``(B) the Department of Agriculture;
                    ``(C) U.S. Customs and Border Protection;
                    ``(D) the Office of the United States Trade 
                Representative;
                    ``(E) the United States Agency for International 
                Development;
                    ``(F) the Department of the Interior;
                    ``(G) the Department of Justice; and
                    ``(H) such other Federal agencies as the Trade 
                Representative considers appropriate.
            ``(3) Chairperson.--The representative of the Office of the 
        United States Trade Representative shall serve as the 
        chairperson of the interagency working group established under 
        paragraph (1).
    ``(g) Advisory Committee.--
            ``(1) In general.--The Trade Representative shall establish 
        an advisory committee to provide advice and recommendations to 
        the Trade Representative and the heads of other relevant 
        Federal agencies on the implementation of this section.
            ``(2) Membership.--The advisory committee established under 
        paragraph (1) shall be made up of 12 individuals--
                    ``(A) 5 of whom shall be representatives of 
                institutions of higher education or nongovernmental 
                organizations with expertise relevant to international 
                deforestation, associated human rights abuses, or 
                trade;
                    ``(B) 5 of whom shall be representatives of 
                industry; and
                    ``(C) 2 of whom shall be representatives of labor 
                organizations.
    ``(h) Definitions.--In this section:
            ``(1) Deforestation.--The term `deforestation' means a loss 
        of natural forest resulting from the whole or partial 
        conversion of natural forest to--
                    ``(A) agricultural use or another non-forest land 
                use; or
                    ``(B) a tree plantation.
            ``(2) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States.
            ``(3) Illegal deforestation.--The term `illegal 
        deforestation' means deforestation conducted in violation of 
        the law (or any action that has the force and effect of law) of 
        the country in which the deforestation is occurring, 
        including--
                    ``(A) anti-corruption laws;
                    ``(B) laws relating to land tenure rights; and
                    ``(C) laws relating to the free, prior, and 
                informed consent of indigenous peoples and local 
                communities.
            ``(4) Indian tribe.--The term `Indian Tribe' has the 
        meaning given the term `Indian tribe' in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 5304).
            ``(5) Natural forest.--The term `natural forest' means a 
        natural arboreal ecosystem that--
                    ``(A) has a species composition a significant 
                percentage of which is native species; and
                    ``(B) includes--
                            ``(i) a native tree canopy cover of more 
                        than 10 percent over an area of not less 0.5 
                        hectares; or
                            ``(ii) other wooded land with a combined 
                        cover of shrubs, bushes, and trees of more than 
                        10 percent over an area of not less than 0.5 
                        hectares.
            ``(6) Point of origin.--
                    ``(A) In general.--The term `point of origin', with 
                respect to a covered commodity, means the geographical 
                location, identified by the smallest administrative 
                unit of land possible (such as a concession, farm, 
                ranch, property, or other type of public or private 
                land allocation), where the covered commodity was 
                produced.
                    ``(B) Application to livestock.--In the case of 
                livestock, the term `point of origin' includes all 
                geographic locations where that animal existed from 
                birth to slaughter.
            ``(7) Produce.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), the term `produce' means growing, 
                harvesting, rearing, collecting, extracting, or 
                otherwise producing a commodity.
                    ``(B) Exclusion.--The term `produce' does not 
                include refining or manufacturing.
            ``(8) Supply chain.--The term `supply chain' means the end-
        to-end process for getting commodities or products to the 
        United States, beginning at the point of origin and including 
        all points until entry into the United States, including 
        refiners, manufacturers, suppliers, distributors, or vendors.
            ``(9) Wholly or in part.--
                    ``(A) In general.--The term `wholly or in part' 
                shall have the meaning given that term in regulations.
                    ``(B) Regulations.--Regulations prescribed under 
                subsection (b) of the FOREST Act of 2021 shall define 
                the term `wholly or in part' in a manner designed to 
                limit the administrative burden on the importer of 
                record while deterring illegal deforestation.''.
    (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, the Commissioner of U.S. Customs and Border 
Protection and the United States Trade Representative shall publish 
final regulations for implementing section 527A of the Tariff Act of 
1930, as added by subsection (a).

SEC. 4. FOREIGN ASSISTANCE FOR COUNTRIES COMMITTED TO ELIMINATING 
              DEFORESTATION.

    (a) Statement of Policy.--It is the policy of the United States to 
assist foreign governments in eliminating illegal deforestation and to 
limit all deforestation to the extent practicable.
    (b) Establishment of Fund.--
            (1) In general.--There is established in the Treasury of 
        the United States a fund, consisting of amounts authorized to 
        be appropriated or appropriated under paragraph (2) or (3).
            (2) Deposits to the fund.--There are authorized to be 
        appropriated, and there are appropriated, to the fund 
        established under paragraph (1) for fiscal year 2022 and each 
        fiscal year thereafter an amount equivalent to the amount of 
        penalties estimated by the Secretary of the Treasury to be 
        collected under section 527A(e) of the Tariff Act of 1930, as 
        added by section 3, in that fiscal year.
            (3) Additional authorization of appropriations.--In 
        addition to amounts authorized to be appropriated under 
        paragraph (2), there are authorized to be appropriated to the 
        fund established under paragraph (1) $30,000,000 to carry out 
        this section.
            (4) Availability of funds.--Amounts in the fund established 
        under paragraph (1) shall be available as follows:
                    (A) $20,000,000 shall be available to the Secretary 
                of State--
                            (i) to provide financial and technical 
                        assistance and other resources to the 
                        governments of countries and implementing 
                        partners that are working to complete the 
                        benchmarks in action plans developed under 
                        section 527A(d) of the Tariff Act of 1930, as 
                        added by section 3;
                            (ii) to provide assistance for 
                        international efforts to combat deforestation;
                            (iii) to provide assistance to civil 
                        society, indigenous peoples, and local 
                        residents in foreign countries to engage in 
                        efforts to combat deforestation; and
                            (iv) to be transferred, notwithstanding 
                        section 3302 of title 31, United States Code, 
                        to the Administrator of the United States 
                        Agency for International Development and the 
                        heads of other appropriate Federal agencies to 
                        provide assistance under clauses (i), (ii), and 
                        (iii).
                    (B) $8,000,000 shall be available to the 
                Commissioner of U.S. Customs and Border Protection--
                            (i) to carry out the duties of the 
                        Commissioner under section 527A of the Tariff 
                        Act of 1930, as added by section 3; and
                            (ii) to be transferred, notwithstanding 
                        section 3302 of title 31, United States Code, 
                        to the Secretary of Agriculture and the 
                        Secretary of the Interior for monitoring, 
                        audits, enforcement, and other duties assigned 
                        under such section 527A.
                    (C) $3,000,000 shall be available to the United 
                States Trade Representative to carry out the duties of 
                the Trade Representative under such section 527A.
    (c) Definitions.--In this section, the terms ``deforestation'' and 
``illegal deforestation'' have the meanings given those terms in 
section 527A(h) of the Tariff Act of 1930, as added by section 3.

SEC. 5. INCLUSION OF ILLEGAL DEFORESTATION AS SPECIFIED UNLAWFUL 
              ACTIVITY.

    Section 1956(c)(7)(B) of title 18, United States Code, is amended--
            (1) in clause (vi), by striking ``; or'' and inserting a 
        semicolon;
            (2) in clause (vii), by striking the semicolon and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(viii) any act, engaged in knowingly, to 
                        carry out, enable, or encourage illegal 
                        deforestation (as defined in section 527A(h) of 
                        the Tariff Act of 1930).''.

SEC. 6. PROCUREMENT PREFERENCE FOR COMMODITIES NOT PRODUCED FROM LAND 
              SUBJECT TO DEFORESTATION.

    (a) In General.--Chapter 47 of title 41, United States Code, is 
amended by adding at the end the following:
``Sec. 4715. Procurement preference for commodities not produced from 
              land subject to deforestation
    ``(a) In General.--In comparing proposals for the purpose of 
awarding a contract involving any product made wholly or in part of a 
covered commodity (as defined by section 1527A(c) of the Tariff Act of 
1930), the head of an executive agency shall reduce the bid price by 10 
percent if the contractor demonstrates to the satisfaction of the head 
of the agency that--
            ``(1) the contractor has a policy described in subsection 
        (b) in effect; and
            ``(2) the policy and data on monitoring and enforcement of 
        that policy are publicly available and updated not less 
        frequently than annually.
    ``(b) Policy Described.--A policy described in this subsection is a 
policy that includes, at a minimum, the following:
            ``(1) Measures to identify the point-of-origin of forest-
        risk commodities and ensure compliance with the policy when 
        supply chain risks are present.
            ``(2) Data detailing the complete list of direct and 
        indirect suppliers and supply chain traceability information, 
        including refineries, processing plants, farms, and 
        plantations, and their respective owners, parent entities, and 
        farmers, maps, and geolocations, for each forest-risk commodity 
        found in products that may be furnished to the Federal 
        Government.
            ``(3) Measures taken to ensure that each such commodity 
        does not contribute to deforestation.
            ``(4) Measures taken to ensure the process of obtaining the 
        free, prior, and informed consent of indigenous peoples and 
        local communities directly affected by the production of such 
        commodities.
            ``(5) Measures taken to protect biodiversity and prevent 
        the poaching of wildlife and trade in bushmeat in all 
        operations and areas adjacent to the production of such 
        commodities.
            ``(6) Measures taken to ensure compliance with the laws of 
        countries where forest-risk commodities in the supply chain of 
        the contractor are produced.
    ``(c) Buy American Requirements.--Subsection (a) does not affect 
the application of the requirements of chapter 83 of title 41, United 
States Code.
    ``(d) Definitions.--In this section:
            ``(1) Deforestation; produce.--The terms `deforestation' 
        and `produce' have the meanings given those terms in section 
        527A(h) of the Tariff Act of 1930.
            ``(2) Forest-risk commodity.--The term `forest-risk 
        commodity' means a commodity at risk of being produced from 
        land subject to deforestation.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 4714 the 
following:

``4715. Procurement preference for commodities not produced from land 
                            subject to deforestation.''.
                                 <all>