; or (B) fail to satisfy the requirement under paragraph (5). (4) Subsidiary requirement The requirement under paragraph (3)(A) shall apply to each subsidiary of a covered entity, if applicable. (5) Notice to covered entity 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. (6) 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. (7) Noncompliance (A) In general 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. (B) Period of payment 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. . 8. Exclusion of offshoring manufacturers under bus grant programs Section 5339(b) of title 49, United States Code, is amended by adding at the end the following: (12) Require to not offshore manufacturing (A) Definitions In this paragraph: (i) 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 receives the full amount of funds provided under this subsection. (ii) Covered entity The term covered entity means an entity that— (I) produces, manufactures, or carries out the final assembly of vehicle , or any