; (II) flexibility in addressing the needs of different small- and medium-sized manufacturers; and (III) a commitment to hiring for projects contractors that comply with the labor requirements described in subsection (d)(2). (c) Subgrants for energy efficiency improvements (1) In general A qualified entity (including a partnership of one or more qualified entities under subsection (b)(1)(B)) that receives a grant under subsection (a) shall act as a program manager to distribute subgrants to small- and medium-sized manufacturers located in the State in which the program manager is located to carry out projects— (A) to improve the energy efficiency of the small- or medium-sized manufacturer