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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3397 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 3397

 To amend the Internal Revenue Code of 1986 to establish requirements 
for the clean vehicle credit and the qualifying advanced energy project 
 credit to prevent offshoring by manufacturers, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 5, 2023

  Mr. Rubio (for himself, Mr. Vance, and Mr. Schmitt) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to establish requirements 
for the clean vehicle credit and the qualifying advanced energy project 
 credit to prevent offshoring by manufacturers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Putting American Autoworkers First 
Act of 2023''.

SEC. 2. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER CLEAN VEHICLE 
              CREDIT.

    (a) In General.--Section 30D(d)(3) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``The term'' and inserting the following:
                    ``(A) In general.--The term'', and
            (2) by adding at the end the following:
                    ``(B) Offshoring exclusion.--
                            ``(i) In general.--The term `qualified 
                        manufacturer' shall not include any 
                        manufacturer (as defined in subparagraph (A)) 
                        which, during the applicable period--
                                    ``(I) with respect to the 
                                manufacturer or any subsidiary of such 
                                manufacturer--
                                            ``(aa) moves any 
                                        production, manufacturing, or 
                                        final assembly of any vehicle 
                                        or any component part of a 
                                        vehicle outside of the United 
                                        States, or
                                            ``(bb) reduces or 
                                        eliminates production, 
                                        manufacturing, or final 
                                        assembly of any vehicle or any 
                                        component part of a vehicle in 
                                        the United States and 
                                        subsequently obtains any such 
                                        vehicle or part from a producer 
                                        or manufacturer located outside 
                                        of the United States, or
                                    ``(II) fails to satisfy the 
                                requirements described in clause (iii).
                            ``(ii) Applicable period.--For purposes of 
                        this subparagraph, the term `applicable period' 
                        means the period--
                                    ``(I) beginning on the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, and
                                    ``(II) ending on the date which is 
                                10 years after the date on which the 
                                written agreement with the Secretary 
                                described in subparagraph (A) has been 
                                terminated.
                            ``(iii) Reporting.--Not later than 1 year 
                        after the date of enactment of the Putting 
                        American Autoworkers First Act of 2023, and 
                        annually thereafter during the applicable 
                        period, any manufacturer which has entered into 
                        a written agreement with the Secretary 
                        described in subparagraph (A) shall provide the 
                        Secretary with such information as the 
                        Secretary may require to demonstrate that such 
                        manufacturer (including any subsidiaries) has 
                        not moved, reduced, or eliminated any 
                        production, manufacturing, or final assembly in 
                        a manner described in clause (i)(I).
                            ``(iv) Penalty.--
                                    ``(I) In general.--In the case of 
                                any manufacturer which, during the 
                                applicable period, has moved, reduced, 
                                or eliminated any production, 
                                manufacturing, or final assembly in a 
                                manner described in clause (i)(I), such 
                                manufacturer shall pay to the Secretary 
                                a penalty in an amount equal to the 
                                total amount of credits allowed under 
                                this section with respect to any new 
                                clean vehicles manufactured by such 
                                manufacturer during the applicable 
                                period.
                                    ``(II) Period of payment.--Any 
                                penalty imposed pursuant to subclause 
                                (I) shall be paid by the manufacturer 
                                to the Secretary over such period as is 
                                determined appropriate by the 
                                Secretary.
                            ``(v) Rule of construction.--In the case of 
                        any manufacturer which, as determined by the 
                        Secretary, has failed to satisfy the 
                        requirements under subclause (I) or (II) of 
                        clause (i) during the applicable period, such 
                        determination shall have no effect with respect 
                        to any vehicle sold before the date of such 
                        determination for purposes of determining 
                        whether such vehicle satisfies the requirement 
                        under paragraph (1)(C).''.
    (b) Application of Penalties to Other Credits.--
            (1) Previously-owned clean vehicles.--Section 25E of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by redesignating subsection (g) (as 
                redesignated by section 13402(b) of Public Law 117-169) 
                as subsection (h), and
                    (B) by inserting after subsection (f) the following 
                new subsection:
    ``(g) Manufacturer Penalty for Violations of Offshoring Rules.--
            ``(1) In general.--In the case of any manufacturer which, 
        during the applicable period, has moved, reduced, or eliminated 
        any production, manufacturing, or final assembly in a manner 
        described in section 30D(d)(3)(B)(i)(I), such manufacturer 
        shall pay to the Secretary a penalty in an amount equal to the 
        total amount of credits allowed under this section with respect 
        to any previously-owned clean vehicles manufactured by such 
        manufacturer during the applicable period.
            ``(2) Exclusion.--Any previously-owned clean vehicle for 
        which a credit was allowed under section 30D shall not be 
        included for purposes of determining the amount of any penalty 
        imposed pursuant to paragraph (1).
            ``(3) Period of payment.--Any penalty imposed pursuant to 
        paragraph (1) shall be paid by the manufacturer to the 
        Secretary over such period as is determined appropriate by the 
        Secretary.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `manufacturer' and `applicable period' shall have the 
        same meanings given such terms under section 30D(d)(3)(B).''.
            (2) Qualified commercial clean vehicles.--Section 45W of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by redesignating subsection (g) as subsection 
                (h), and
                    (B) by inserting after subsection (f) the following 
                new subsection:
    ``(g) Manufacturer Penalty for Violation of Offshoring Rules.--
            ``(1) In general.--In the case of any manufacturer which, 
        during the applicable period, has moved, reduced, or eliminated 
        any production, manufacturing, or final assembly in a manner 
        described in section 30D(d)(3)(B)(i)(I), such manufacturer 
        shall pay to the Secretary a penalty in an amount equal to the 
        total amount of credits allowed under this section with respect 
        to any qualified commercial clean vehicles manufactured by such 
        manufacturer during the applicable period.
            ``(2) Period of payment.--Any penalty imposed pursuant to 
        paragraph (1) shall be paid by the manufacturer to the 
        Secretary over such period as is determined appropriate by the 
        Secretary.
            ``(3) Definitions.--For purposes of this subsection, the 
        terms `manufacturer' and `applicable period' shall have the 
        same meanings given such terms under section 30D(d)(3)(B).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles sold after the date of enactment of this Act.

SEC. 3. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER QUALIFYING ADVANCED 
              ENERGY PROJECT CREDIT.

    (a) In General.--Section 48C(c)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
                    ``(C) Offshoring exclusion.--
                            ``(i) In general.--Such term shall not 
                        include any project of an applicable taxpayer 
                        if, during the applicable period--
                                    ``(I) such taxpayer (including any 
                                subsidiary of such taxpayer)--
                                            ``(aa) moves any 
                                        production, manufacturing, or 
                                        final assembly of any vehicle 
                                        or any component part of a 
                                        vehicle outside of the United 
                                        States, or
                                            ``(bb) reduces or 
                                        eliminates production, 
                                        manufacturing, or final 
                                        assembly of any vehicle or any 
                                        component part of a vehicle in 
                                        the United States and 
                                        subsequently obtains any such 
                                        vehicle or part from a producer 
                                        or manufacturer located outside 
                                        of the United States, or
                                    ``(II) such taxpayer fails to 
                                satisfy the requirements described in 
                                clause (iii).
                            ``(ii) Applicable period.--For purposes of 
                        this subparagraph, the term `applicable period' 
                        means, with respect to any project of the 
                        taxpayer, the period--
                                    ``(I) beginning on the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, and
                                    ``(II) ending on the date which is 
                                10 years after the end of the last 
                                taxable year for which, with respect to 
                                such project, a credit determined under 
                                subsection (a) is allowed under section 
                                38.
                            ``(iii) Reporting.--Not later than 1 year 
                        after the date of enactment of the Putting 
                        American Autoworkers First Act of 2023, and 
                        annually thereafter during the applicable 
                        period, any taxpayer which has received a 
                        certification under subsection (e) with respect 
                        to any project shall provide the Secretary with 
                        such information as the Secretary may require 
                        to demonstrate that such taxpayer (including 
                        any subsidiaries) has not moved, reduced, or 
                        eliminated any production, manufacturing, or 
                        final assembly in a manner described in 
                        subclause (I) or (II) of clause (i).
                            ``(iv) Penalty.--
                                    ``(I) In general.--In the case of 
                                any applicable taxpayer which, during 
                                the applicable period, has moved, 
                                reduced, or eliminated any production, 
                                manufacturing, or final assembly in a 
                                manner described in subclause (I) or 
                                (II) of clause (i), such taxpayer shall 
                                pay to the Secretary a penalty in an 
                                amount equal to 200 percent of the 
                                total amount of credits allowed under 
                                this section with respect to any 
                                qualified investments made by such 
                                taxpayer during the applicable period.
                                    ``(II) Period of payment.--Any 
                                penalty imposed pursuant to subclause 
                                (I) shall be paid by the applicable 
                                taxpayer to the Secretary over such 
                                period as is determined appropriate by 
                                the Secretary.
                            ``(v) Applicable taxpayer.--For purposes of 
                        this subparagraph, the term `applicable 
                        taxpayer' means any manufacturer (within the 
                        meaning of the regulations prescribed by the 
                        Administrator of the Environmental Protection 
                        Agency for purposes of the administration of 
                        title II of the Clean Air Act (42 U.S.C. 7521 
                        et seq.)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of enactment of this Act.

SEC. 4. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER ADVANCED TECHNOLOGY 
              VEHICLES MANUFACTURING INCENTIVE PROGRAM.

    Section 136 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013) is amended--
            (1) by striking subsection (e) and inserting the following:
    ``(e) Eligibility; Requirement To Not Offshore Manufacturing.--
            ``(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, as applicable--
                            ``(i) receives the full amount of a 
                        facility funding award under subsection (b); or
                            ``(ii) fully pays back a direct loan 
                        received under subsection (d).
                    ``(B) Covered entity.--The term `covered entity' 
                means an entity that--
                            ``(i) produces, manufactures, or carries 
                        out the final assembly of motor vehicles; and
                            ``(ii) receives, after the date of 
                        enactment of the Putting American Autoworkers 
                        First Act of 2023--
                                    ``(I) a facility funding award 
                                under subsection (b); or
                                    ``(II) a direct loan under 
                                subsection (d).
                    ``(C) Prohibited activity.--The term `prohibited 
                activity', with respect to an entity described in 
                subparagraph (B)(i), means--
                            ``(i) moving the domestic production, 
                        manufacturing, or final assembly of any vehicle 
                        or any component part of a vehicle outside of 
                        the United States; and
                            ``(ii) 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.
            ``(2) Eligibility.--Beginning on the date of enactment of 
        the Putting American Autoworkers First Act of 2023, no entity 
        described in clause (i) of paragraph (1)(B) shall be eligible 
        for an award or loan described in clause (ii) of that paragraph 
        if that entity (or a subsidiary of that entity) has carried out 
        a prohibited activity as of that date.
            ``(3) Requirements.--
                    ``(A) In general.--As a condition of receiving an 
                award or loan described in paragraph (1)(B)(ii), a 
                covered entity may not, during the applicable period--
                            ``(i) carry out any prohibited activity; or
                            ``(ii) fail to satisfy the requirement 
                        under subparagraph (C).
                    ``(B) Subsidiary requirement.--The requirement 
                under subparagraph (A)(i) shall apply to each 
                subsidiary of a covered entity, if applicable.
                    ``(C) 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.
            ``(4) Noncompliance.--
                    ``(A) In general.--If a covered entity becomes 
                noncompliant with the requirements under paragraph (3), 
                the covered entity shall pay to the Secretary--
                            ``(i) in the case of receiving an award, 
                        200 percent of the amount of the award; and
                            ``(ii) in the case of receiving a loan, the 
                        amount of the loan, at a schedule determined by 
                        the Secretary, at an interest rate that is 
                        double the higher of--
                                    ``(I) the interest rate; and
                                    ``(II) the subsidy rate.
                    ``(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.''; and
            (2) by redesignating subsection (m) as subsection (l).

SEC. 5. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER DOMESTIC 
              MANUFACTURING CONVERSION GRANT PROGRAM.

    Section 712(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16062(a)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``The program'' and inserting the 
                following:
                    ``(A) In general.--The program''; and
                    (B) by adding at the end the following:
                    ``(B) Eligibility.--Beginning on the date of 
                enactment of the Putting American Autoworkers First Act 
                of 2023, no entity described in paragraph (4)(A)(ii)(I) 
                shall be eligible for a grant or loan guarantee under 
                this paragraph if that entity (or a subsidiary of that 
                entity) has carried out a prohibited activity (as 
                defined in paragraph (4)(A)) as of that date.''; and
            (2) by adding at the end the following:
            ``(4) Requirement 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, as 
                        applicable--
                                    ``(I) receives the full amount of 
                                grant funds under paragraph (2); or
                                    ``(II) fully pays back the loan for 
                                which a guarantee is provided under 
                                that paragraph.
                            ``(ii) Covered entity.--The term `covered 
                        entity' means an entity described in paragraph 
                        (2) that--
                                    ``(I) produces, manufactures, or 
                                carries out the final assembly of motor 
                                vehicles; and
                                    ``(II) receives, after the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, a grant 
                                or loan guarantee under that paragraph.
                            ``(iii) Prohibited activity.--The term 
                        `prohibited activity', with respect to an 
                        entity described in clause (ii)(I), means--
                                    ``(I) moving the domestic 
                                production, manufacturing, or final 
                                assembly of any vehicle or any 
                                component part of a vehicle outside of 
                                the United States; and
                                    ``(II) 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.
                    ``(B) Requirements.--
                            ``(i) In general.--As a condition of 
                        receiving a grant or loan guarantee under 
                        paragraph (2), a covered entity may not, during 
                        the applicable period--
                                    ``(I) carry out any prohibited 
                                activity; or
                                    ``(II) fail to satisfy the 
                                requirement under clause (iii).
                            ``(ii) Subsidiary requirement.--The 
                        requirement under clause (i)(I) shall apply to 
                        each subsidiary of a covered entity, if 
                        applicable.
                            ``(iii) 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.
                    ``(C) Noncompliance.--
                            ``(i) In general.--If a covered entity 
                        becomes noncompliant with the requirements 
                        under subparagraph (B), the covered entity 
                        shall pay to the Secretary--
                                    ``(I) in the case of receiving a 
                                grant, 200 percent of the amount of the 
                                grant; and
                                    ``(II) in the case of receiving a 
                                loan guarantee, an amount that is 
                                double the cost incurred by the 
                                Secretary for administering that loan 
                                guarantee.
                            ``(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.''.

SEC. 6. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER PUBLIC SCHOOL 
              ENERGY IMPROVEMENT PROGRAM.

    Section 40541(f) of the Investment Infrastructure and Jobs Act (42 
U.S.C. 18831(f)) is amended by adding at the end the following:
            ``(5) Use of grant funds relating to motor vehicle 
        manufacturers.--
                    ``(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 contracts with 
                        an eligible entity as described in clause 
                        (ii)(II).
                            ``(ii) Covered entity.--The term `covered 
                        entity' means an entity that--
                                    ``(I) produces, manufactures, or 
                                carries out the final assembly of motor 
                                vehicles; and
                                    ``(II) after the date of enactment 
                                of the Putting American Autoworkers 
                                First Act of 2023, contracts with an 
                                eligible entity to make energy 
                                improvements pursuant to a grant 
                                provided to the eligible entity under 
                                this section.
                            ``(iii) Prohibited activity.--The term 
                        `prohibited activity', with respect to an 
                        entity described in clause (ii)(I), means--
                                    ``(I) moving the domestic 
                                production, manufacturing, or final 
                                assembly of any vehicle or any 
                                component part of a vehicle outside of 
                                the United States; and
                                    ``(II) 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.
                    ``(B) Prohibition.--Beginning on the date of 
                enactment of the Putting American Autoworkers First Act 
                of 2023, an eligible entity receiving a grant under 
                this section may not use grant amounts to contract 
                with, for the purpose of making energy improvements, an 
                entity described in subparagraph (A)(ii)(I), or a 
                subsidiary of such an entity, if that entity or 
                subsidiary has carried out a prohibited activity as of 
                that date.
                    ``(C) Requirements on motor vehicle 
                manufacturers.--A covered entity may not, as a 
                condition of the contract with the eligible entity, 
                during the applicable period--
                            ``(i) carry out a prohibited activity; 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.''.

SEC. 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; and
                            ``(ii) 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.
                    ``(C) Prohibited activity.--The term `prohibited 
                activity', with respect to an entity described in 
                subparagraph (B)(i), means--
                            ``(i) moving the domestic production, 
                        manufacturing, or final assembly of any vehicle 
                        or any component part of a vehicle outside of 
                        the United States; and
                            ``(ii) 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.
            ``(2) Prohibition.--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.
            ``(3) Requirements on motor vehicle manufacturers.--A 
        covered entity may not, as a condition of the contract with the 
        State, during the applicable period--
                    ``(A) carry out a prohibited activity; 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.''.

SEC. 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 subsidiary of such 
                                entity; and
                                    ``(II) receives, after the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, 
                                assistance under this subsection from 
                                an eligible recipient.
                            ``(iii) Prohibited activity.--The term 
                        `prohibited activity', with respect to an 
                        covered entity, means--
                                    ``(I) moving the domestic 
                                production, manufacturing, or final 
                                assembly of any vehicle or any 
                                component part of a vehicle outside of 
                                the United States; and
                                    ``(II) 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.
                    ``(B) Eligibility.--Beginning on the date of 
                enactment of the Putting American Autoworkers First Act 
                of 2023, no entity described in subclause (I) of 
                subparagraph (A)(ii) shall be eligible for assistance 
                under this subsection if that entity (or a subsidiary 
                of that entity) has carried out a prohibited activity 
                as of that date.
                    ``(C) Requirements.--
                            ``(i) In general.--As a condition of 
                        receiving funds under this subsection, a 
                        covered entity may not, during the applicable 
                        period--
                                    ``(I) carry out any prohibited 
                                activity; or
                                    ``(II) fail to satisfy the 
                                requirement under clause (iii).
                            ``(ii) Subsidiary requirement.--The 
                        requirement under clause (i)(I) shall apply to 
                        each subsidiary of a covered entity, if 
                        applicable.
                            ``(iii) Notice to covered entity.--If an 
                        eligible recipient is not a covered entity and 
                        the eligible recipient intends to use proceeds 
                        from an award under this subsection to 
                        purchase, lease, license, or contract for a 
                        vehicle from a covered entity, the eligible 
                        recipient shall notify the covered entity that 
                        the sale, lease, license, or contract is being 
                        carried out using proceeds from an award under 
                        this subsection.
                            ``(iv) 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, a covered entity shall provide 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.
                    ``(D) Noncompliance.--
                            ``(i) In general.--If a covered entity that 
                        receives assistance under this subsection after 
                        the date of enactment of this paragraph becomes 
                        noncompliant with the requirements under 
                        subparagraph (C), the covered entity shall pay 
                        to the Secretary an amount equal to 100 percent 
                        of the amount that consumers of the covered 
                        entity paid to the covered entity of assistance 
                        under this subsection.
                            ``(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.''.

SEC. 9. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER LOW OR NO EMISSION 
              GRANT PROGRAM.

    Section 5339(c) of title 49, United States Code, is amended by 
adding at the end the following:
            ``(9) 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 
                                vehicles, or any subsidiary of such 
                                entity; and
                                    ``(II) receives, after the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, 
                                assistance from a recipient under this 
                                subsection.
                            ``(iii) Prohibited activity.--The term 
                        `prohibited activity', with respect to an 
                        covered entity, means--
                                    ``(I) moving the domestic 
                                production, manufacturing, or final 
                                assembly of any vehicle or any 
                                component part of a vehicle outside of 
                                the United States; and
                                    ``(II) 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.
                    ``(B) Eligibility.--Beginning on the date of 
                enactment of the Putting American Autoworkers First Act 
                of 2023, no entity described in subclause (I) of 
                subparagraph (A)(ii) shall be eligible for assistance 
                under this subsection if that entity (or a subsidiary 
                of that entity) has carried out a prohibited activity 
                as of that date.
                    ``(C) Requirements.--
                            ``(i) In general.--As a condition of 
                        receiving assistance under this subsection, a 
                        covered entity may not, during the applicable 
                        period--
                                    ``(I) carry out a prohibited 
                                activity; or
                                    ``(II) fail to satisfy the 
                                requirement under clause (iii).
                            ``(ii) Subsidiary requirement.--The 
                        requirement under clause (i)(I) shall apply to 
                        each subsidiary of a covered entity, if 
                        applicable.
                            ``(iii) Notice to covered entity.--If a 
                        recipient is not a covered entity and the 
                        recipient intends to use proceeds from an award 
                        under this subsection to purchase, lease, 
                        license, or contract for a vehicle from a 
                        covered entity, the recipient shall notify the 
                        covered entity that the sale, lease, license, 
                        or contract is being carried out using proceeds 
                        from an award under this subsection.
                            ``(iv) 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, a covered entity shall provide 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.
                    ``(D) Noncompliance.--
                            ``(i) In general.--If a covered entity that 
                        receives a grant under this subsection after 
                        the date of enactment of this paragraph becomes 
                        noncompliant with the requirements under 
                        subparagraph (C), the covered entity shall pay 
                        to the Secretary an amount equal to 100 percent 
                        of the amount that consumers of the covered 
                        entity paid to the covered entity of the grant 
                        under this subsection.
                            ``(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.''.

SEC. 10. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER CLEAN SCHOOL BUS 
              PROGRAM.

    Section 741 of the Energy Policy Act of 2005 (42 U.S.C. 16091) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (6), by adding at the end the 
                following:
                    ``(C) Limitation.--An award under this section may 
                not be used for the sale, lease, licensing, or 
                contracting for--
                            ``(i) a motor vehicle (as defined in 
                        paragraph (8)(A)) produced, manufactured, or 
                        assembled by an entity, including a subsidiary 
                        of such an entity, that fails to comply with 
                        paragraph (8)(B)(i); or
                            ``(ii) charging or fueling infrastructure 
                        produced, manufactured, or assembled by an 
                        entity, including a subsidiary of such an 
                        entity, that fails to comply with paragraph 
                        (8)(B)(i).'';
                    (B) by redesignating paragraph (8) as paragraph 
                (9); and
                    (C) by inserting after paragraph (7) the following:
            ``(8) Requirement 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 
                        proceeds from an award under paragraph (1), 
                        including by receiving proceeds through a sale, 
                        lease, license, or contract for a motor vehicle 
                        from an eligible recipient using that award.
                            ``(ii) Covered entity.--The term `covered 
                        entity' means an entity that--
                                    ``(I) produces, manufactures, or 
                                carries out the final assembly of motor 
                                vehicles; and
                                    ``(II) receives, after the date of 
                                enactment of the Putting American 
                                Autoworkers First Act of 2023, proceeds 
                                from an award under paragraph (1), 
                                including by receiving proceeds through 
                                a sale, lease, license, or contract for 
                                a motor vehicle from an eligible 
                                recipient using an award under 
                                paragraph (1).
                            ``(iii) Motor vehicle.--The term `motor 
                        vehicle' has the meaning given the term in 
                        section 30D(d) of the Internal Revenue Code of 
                        1986.
                            ``(iv) Prohibited activity.--The term 
                        `prohibited activity', with respect to an 
                        entity described in clause (ii)(I), means--
                                    ``(I) moving the domestic 
                                production, manufacturing, or final 
                                assembly of any motor vehicle or any 
                                component part of a motor vehicle 
                                outside of the United States; and
                                    ``(II) reducing or eliminating 
                                production, manufacturing, or final 
                                assembly of any motor vehicle or any 
                                component part of a motor vehicle in 
                                the United States and subsequently 
                                obtaining such motor vehicle or 
                                component part from a producer or 
                                manufacturer located outside of the 
                                United States.
                    ``(B) Requirements.--
                            ``(i) In general.--As a condition of 
                        receiving proceeds from an award under 
                        paragraph (1), including by receiving proceeds 
                        through a sale, lease, license, or contract for 
                        a motor vehicle from an eligible recipient 
                        using an award under paragraph (1), a covered 
                        entity may not, during the applicable period--
                                    ``(I) carry out any prohibited 
                                activity; or
                                    ``(II) fail to satisfy the 
                                requirement under clause (iv).
                            ``(ii) Subsidiary requirement.--The 
                        requirement described in clause (i)(I) shall 
                        apply to each subsidiary of a covered entity, 
                        if applicable.
                            ``(iii) Notice to covered entity.--If an 
                        eligible recipient is not a covered entity and 
                        the eligible recipient intends to use proceeds 
                        from an award under paragraph (1) to purchase, 
                        lease, license, or contract for a motor vehicle 
                        from a covered entity, the eligible recipient 
                        shall notify the covered entity that the sale, 
                        lease, license, or contract is being carried 
                        out using proceeds from an award under that 
                        paragraph.
                            ``(iv) 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 Administrator such information as the 
                        Administrator may require to demonstrate that 
                        the covered entity (including each subsidiary, 
                        if applicable) has not carried out a prohibited 
                        activity.
                    ``(C) Noncompliance.--
                            ``(i) In general.--If a covered entity 
                        becomes noncompliant with the requirements 
                        under subparagraph (B), the covered entity 
                        shall pay to the Administrator an amount equal 
                        to the total of all amounts received by the 
                        covered entity that are proceeds from awards 
                        under paragraph (1).
                            ``(ii) Period of payment.--Any payment 
                        imposed pursuant to clause (i) shall be paid by 
                        the covered entity to the Administrator over 
                        such period as is determined appropriate by the 
                        Administrator.''; and
            (2) in subsection (c)(3)(E), by striking ``subsection 
        (b)(7)'' and inserting ``subsection (b)(9)''.

SEC. 11. EXCLUSION OF OFFSHORING MANUFACTURERS UNDER CLEAN HEAVY-DUTY 
              VEHICLES.

    Section 132 of the Clean Air Act (42 U.S.C. 7432) is amended--
            (1) by redesignating subsection (d) as subsection (f); and
            (2) by inserting after subsection (c) the following:
    ``(d) Requirement To Not Offshore Manufacturing.--
            ``(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 receives proceeds from an award under this 
                section, including by receiving proceeds through a 
                sale, lease, license, or contract for a motor vehicle 
                from an eligible recipient using an award under this 
                section.
                    ``(B) Covered entity.--The term `covered entity' 
                means an entity that--
                            ``(i) produces, manufactures, or carries 
                        out the final assembly of motor vehicles; and
                            ``(ii) receives, after the date of 
                        enactment of the Putting American Autoworkers 
                        First Act of 2023, proceeds from an award under 
                        this section, including by receiving proceeds 
                        through a sale, lease, license, or contract for 
                        a motor vehicle from an eligible recipient 
                        using an award under this section.
                    ``(C) Motor vehicle.--The term `motor vehicle' has 
                the meaning given the term in section 30D(d) of the 
                Internal Revenue Code of 1986.
                    ``(D) Prohibited activity.--The term `prohibited 
                activity', with respect to an entity described in 
                subparagraph (B)(i), means--
                            ``(i) moving the domestic production, 
                        manufacturing, or final assembly of any motor 
                        vehicle or any component part of a motor 
                        vehicle outside of the United States; and
                            ``(ii) reducing or eliminating production, 
                        manufacturing, or final assembly of any motor 
                        vehicle or any component part of a motor 
                        vehicle in the United States and subsequently 
                        obtaining such motor vehicle or component part 
                        from a producer or manufacturer located outside 
                        of the United States.
            ``(2) Requirements.--
                    ``(A) In general.--As a condition of receiving 
                proceeds from an award under this section, including by 
                receiving proceeds through a sale, lease, license, or 
                contract for a motor vehicle from an eligible recipient 
                using an award under this section, a covered entity may 
                not, during the applicable period--
                            ``(i) carry out any prohibited activity; or
                            ``(ii) fail to satisfy the requirement 
                        under subparagraph (D).
                    ``(B) Subsidiary requirement.--The requirement 
                described in subparagraph (A)(i) shall apply to each 
                subsidiary of a covered entity, if applicable.
                    ``(C) Notice to covered entity.--If an eligible 
                recipient is not a covered entity and the eligible 
                recipient intends to use proceeds from an award under 
                this section to purchase, lease, license, or contract 
                for a motor vehicle from a covered entity, the eligible 
                recipient shall notify the covered entity that the 
                sale, lease, license, or contract is being carried out 
                using proceeds from an award under this section.
                    ``(D) 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 Administrator such information as the 
                Administrator may require to demonstrate that the 
                covered entity (including each subsidiary, if 
                applicable) has not carried out a prohibited activity.
            ``(3) Noncompliance.--
                    ``(A) In general.--If a covered entity becomes 
                noncompliant with the requirements under paragraph (2), 
                the covered entity shall pay to the Administrator an 
                amount equal to the total of all amounts received by 
                the covered entity that are proceeds from awards under 
                paragraph (1).
                    ``(B) Period of payment.--Any payment imposed 
                pursuant to subparagraph (A) shall be paid by the 
                covered entity to the Administrator over such period as 
                is determined appropriate by the Administrator.
    ``(e) Limitation.--An award under this section may not be used 
for--
            ``(1) the sale, lease, licensing, or contracting for a 
        motor vehicle (as defined in subsection (d)(1)) produced, 
        manufactured, or assembled by an entity, including a subsidiary 
        of such an entity, that fails to comply with subsection 
        (d)(2)(A);
            ``(2) the sale, lease, licensing, or contracting for 
        charging or fueling infrastructure produced, manufactured, or 
        assembled by an entity, including a subsidiary of such an 
        entity, that fails to comply with subsection (d)(2)(A); or
            ``(3) workforce development, training, planning, or 
        technical activities carried out by an entity, including a 
        subsidiary of such an entity, that fails to comply with 
        subsection (d)(2)(A).''.
                                 <all>
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