; or (ii) fail to satisfy the requirement under subparagraph (E). (D) Subsidiary requirement The requirement under subparagraph (C)(i) shall apply to each subsidiary of a covered entity, if applicable. (E) Notice to covered entity 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. (F) Report 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. (G) Noncompliance (i) In general 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. (ii) Period of payment 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. . 7. Exclusion of offshoring manufacturers under State energy program Section 362 of the Energy Policy and Conservation Act ( 42 U.S.C. 6322 ) is amended by adding at the end the following: (h) Use of funds relating to motor vehicle manufacturers (1) Definitions In this subsection: (A) Applicable period 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). (B) Covered entity The term covered entity means an entity that— (i) produces, manufactures, or carries out the final assembly of motor vehicles