; (II) flexibility in addressing the needs of different small and medium-sized manufacturers; (III) a history of hiring contractors that comply with the labor requirements described in subparagraphs (A) through (M) of subsection (d)(1); and (IV) a commitment to assisting small or medium-sized manufacturers create new jobs or retain existing jobs while carrying out an energy efficiency improvement project. (c) Subgrants for energy efficiency improvements (1) In general A qualified entity (including a partnership of two 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 energy efficiency improvement projects. (2) Applications A small or medium-sized manufacturer desiring a subgrant under paragraph (1) shall submit to the program manager an application at such time, in such manner, and containing such information as the program manager may require, including a proposal describing the energy efficiency improvement project to be carried out using the subgrant funds. (3) Priority In selecting small or medium-sized manufacturers for subgrants under this subsection, the program manager shall give priority to small or medium-sized manufacturers that demonstrate— (A) a history of hiring contractors that comply with the labor requirements described in subparagraphs (A) through (M) of subsection (d)(1)