Sec. 7. Exclusion of offshoring manufacturers under State energy program
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Section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ) is amended by adding at the end the following: In this subsection: 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 a State as described in subparagraph (B)(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 a State to carry out an energy conservation goal pursuant to a State energy conservation plan submitted under this section.
The term prohibited activity , with respect to an entity described in subparagraph (B)(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 , a State carrying out a State energy conservation plan submitted under this section may not contract with, for the purpose of carrying out an energy conservation goal, an entity described in paragraph (1)(B)(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 State, during the applicable period— carry out a prohibited activity; or fail to satisfy the requirement under paragraph (5).
The requirement under paragraph (3)(A) shall apply to each subsidiary of a covered entity, if applicable. If a State carrying out a State energy conservation plan submitted under this section intends to purchase, lease, license, or contract for a motor vehicle from a covered entity, the State shall notify the covered entity that the sale, lease, license, or contract is being carried out as part of the State energy conservation plan submitted 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 paragraph (3), the covered entity shall pay to the Secretary the Federal funds paid by the State to the covered entity under the applicable contract. Any payment imposed pursuant to subparagraph
(A)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. 7
Exclusion of offshoring manufacturers under State energy program
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