Sec. 6. Exclusion of offshoring manufacturers under public school energy improvement program
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Section 40541(f) of the Investment Infrastructure and Jobs Act ( 42 U.S.C. 18831(f) ) is amended by adding at the end the following: In this paragraph: The term applicable period , with respect to a covered entity, means the 10-year period following the date on which the covered entity contracts with an eligible entity as described in clause (ii)(II). The term covered entity means an entity that— produces, manufactures, or carries out the final assembly of motor vehicles; and after the date of enactment of the Putting American Autoworkers First Act of 2023 , contracts with an eligible entity to make energy improvements pursuant to a grant provided to the eligible entity under this section.
The term prohibited activity , with respect to an entity described in clause (ii)(I), means— moving the domestic production, manufacturing, or final assembly of any vehicle or any component part of a vehicle outside of the United States; and reducing or eliminating production, manufacturing, or final assembly of any vehicle or any component part of a vehicle in the United States and subsequently obtaining such vehicle or component part from a producer or manufacturer located outside of the United States.
Beginning on the date of enactment of the Putting American Autoworkers First Act of 2023 , an eligible entity receiving a grant under this section may not use grant amounts to contract with, for the purpose of making energy improvements, an entity described in subparagraph (A)(ii)(I), or a subsidiary of such an entity, if that entity or subsidiary has carried out a prohibited activity as of that date. A covered entity may not, as a condition of the contract with the eligible entity, during the applicable period— carry out a prohibited activity; or fail to satisfy the requirement under subparagraph (E).
The requirement under subparagraph (C)(i) shall apply to each subsidiary of a covered entity, if applicable. If an eligible entity intends to use proceeds from a grant under this section to purchase, lease, license, or contract for a motor vehicle from a covered entity, the eligible entity shall notify the covered entity that the sale, lease, license, or contract is being carried out using a grant under this section. Not later than 1 year after the date of enactment of the Putting American Autoworkers First Act of 2023 , and annually thereafter until the end of the applicable period, each covered entity shall provide to the Secretary such information as the Secretary may require to demonstrate that the covered entity (including each subsidiary, if applicable) has not carried out a prohibited activity.
If a covered entity becomes noncompliant with the requirements under subparagraph (C), the covered entity shall pay to the Secretary the Federal funds paid by the eligible entity to the covered entity under the applicable contract. Any payment imposed pursuant to clause
(i)shall be paid by the covered entity to the Secretary over such period as is determined appropriate by the Secretary. .
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Sec. 6
Exclusion of offshoring manufacturers under public school energy improvement program
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