[Federal Register Volume 68, Number 95 (Friday, May 16, 2003)]
[Notices]
[Pages 26654-26673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12248]


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DEPARTMENT OF LABOR

Employment and Training Administration


Proposed Collection; Comment Request

ACTION: Notice.

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SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden, conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and/or continuing 
collections of information in accordance with the Paperwork Reduction 
Act of 1995 (PRA95) (44 U.S.C. 3506(c)(2)(A)). This program helps to 
ensure that requested data can be provided in the desired format, 
reporting burden (time and financial resources) is minimized, 
collection instruments are clearly understood, and the impact of 
collection requirements on respondents can be properly assessed. 
Currently, the Employment and Training Administration is soliciting 
comments concerning revisions to the collection of data contained in 
the Workforce Investment Act (WIA) National Emergency Grant (NEG) 
application procedures and project oversight and reporting requirements 
(OMB approval no. 1205-0439, expiring 5/30/03).
    OMB granted emergency approval for the use of the forms (ETA 9103, 
9014, and 9106) for Trade Health Insurance Coverage Assistance NEGs. 
Those approved forms have been revised to enable their use for Regular, 
Disaster and Trade-WIA Dual Enrollment NEGs and two proposed additional 
forms have been added to this request.
    Attached is a copy of the proposed application procedures and 
project application review process, and project oversight and reporting 
requirements for the Workforce Investment Act (WIA)National Emergency 
Grants (NEG).
    A copy of this information collection request, with applicable 
supporting documentation and application procedures, may be obtained by 
calling the Department of Labor. To obtain documentation contact Darrin 
King on 202-693-4129 or e-mail: [email protected].

DATES: Written comments must be submitted to the office listed in the 
addressee section below on or before July 15, 2003.

ADDRESSEE: Shirley M. Smith, Administrator, Office of National 
Response, Employment and Training Administration, United States 
Department of Labor, 200 Constitution Avenue, NW., Room N-5426, 
Washington, DC 20210, 202-693-3500 (this is not a toll-free number)

SUPPLEMENTARY INFORMATION:

I. Background

    Authorized by section 173 of the Workforce Investment Act (WIA), as 
amended, National Emergency Grants (NEG) are discretionary grants 
awarded by the Secretary of Labor(the Secretary) intended to complement 
the resources and service capacity at the state and local area levels 
by providing supplemental funding for workforce development and 
employment services and other adjustment assistance for dislocated 
workers and other eligible individuals as defined in sections 101, 134 
and 173 of WIA; sections 113, 114 and 203 of the Trade Act of 2002; and 
20 CFR 671.140.
    Funds are available for obligation by the Secretary under sections 
132 and 173 of the WIA, and section 203 of the Trade Act of 2002. 
Applications will be accepted on an ongoing basis as the need for funds 
arises at the state and local level.
    The provisions of WIA and the Regulations define four NEG project 
types:
    [sbull] Regular, which encompasses plant closures, mass layoffs, 
and multiple layoffs in a single community.
    [sbull] Disaster, which includes all eligible FEMA-declared natural 
and manmade disaster events.
    [sbull] Trade-WIA Dual Enrollment, which provides funding to ensure 
that a full range of services is available to trade-impacted 
individuals eligible under the Trade Adjustment Assistance program 
provisions of the Trade Act of 2002.
    [sbull] Trade Health Insurance Coverage Assistance, which provides 
specialized health coverage, support services, and income assistance to 
targeted individuals defined in the Trade Adjustment Assistance Reform 
Act of 2002.

II. Review Focus

    The Department of Labor is particularly interested in comments 
which:
    [sbull] Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    [sbull] Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
    [sbull] Enhance the quality, utility, and clarity of the 
information to be collected; and
    [sbull] Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses.

III. Current Actions

    The Employment and Training Administration (ETA) of the U.S. 
Department of Labor (DOL) is announcing proposed application and 
reporting procedures to enable eligible entities to access funds for 
National Emergency Grant (NEG) programs under section 173 of the 
Workforce Investment Act (WIA), as amended. Applications will be 
accepted on an ongoing basis as the need for funds arises at the state 
and local level.
    The application procedures, application review process, and project 
oversight and reporting requirements described in this notice are 
issued under the WIA regulations at 20 CFR 671.125.
    Applications for NEG funds may be submitted at any time. The 
maximum allowable project performance periods are defined by the months 
remaining in the Program Year in which the grant award is made plus the 
subsequent two Program Years. The Program Year for these projects is 
the twelve month period July 1-June 30.
    USDOL/ETA expects that the project performance period in any NEG 
application will reflect a time efficient approach to returning 
eligible individuals to appropriate employment consistent with the 
performance goals that apply to NEG projects.
    Consistent with the Government Paperwork Elimination Act, the 
information collection including the application and the reporting form 
is fully in an electronic format. Electronic applications are intended 
to provide ease of completion as well as timely processing. The 
information in the grant application collection will provide the grant 
officer with the necessary information during the application review 
process in order to be able to make consistent and objective funding 
decisions based on the stated funding request evaluation criteria. The 
quarterly reports information collection will assure accountability and 
measure actual project performance to date.

[[Page 26655]]

    USDOL/ETA is committed to making a decision to approve or 
disapprove all submitted applications within 15 working days from 
receipt of a complete and responsive application.
    Type of Review: Revision.
    Title: Workforce Investment Act: National Emergency Grants (NEG)--
Application and Reporting Procedures.
    OMB Number: 1205-0439.
    Affected Public: State, local, or tribal government.
    Burden Hours: 1,171.

                                     Estimated Total Annualized Hour Burden
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                                                                                                     Expected
          Reference            Expected total      Frequency     Expected total   Avg. time per       burden*
                                respondents*                       responses*        response         (hours)
----------------------------------------------------------------------------------------------------------------
SF 424.......................             150  1 per project...             150  45 minutes.....           113.0
Narrative Summary............             150  1 per project...             150  1.0 hour.......           150.0
ETA 9103.....................             150  1 per project...             150  90 minutes.....           225.0
ETA 9105.....................              75  1 per project...              75  30 minutes.....              38
ETA 9106.....................             150  1 per project...             150  1.0 hour.......           150.0
ETA 9107.....................             100  1 per project...             100  30 minutes.....            50.0
Expenditure Status Report....              50  1 per project...              50  1.0 hour.......            50.0
TAA Certification Report.....              50  1 per project...              50  30 minutes.....            25.0
Reports: ETA 9104............             150  quarterly per                600  30 minutes.....           300.0
                                                project.
Grant Modifications..........             140  1 per project...             140  30 minutes.....            70.0
                              -----------------
    Total....................  ..............  ................            1615  ...............            1126
----------------------------------------------------------------------------------------------------------------
* Actual number will vary based on state and local needs.

    Total Burden Cost (capital/startup): 0.
    Total Burden Cost (operating/maintaining): 0.
    Comments submitted in response to this comment request will be 
summarized and/or included in the request for Office of Management and 
Budget approval of the information collection request; they will also 
become a matter of public record.

    Dated: May 12, 2003.
Emily Stover DeRocco,
Assistant Secretary, Employment and Training Administration.

ATTACHMENT

Workforce Investment Act: Application Procedures for National 
Emergency Grants

Overview

    The Employment and Training Administration (ETA) of the U.S. 
Department of Labor (DOL) is announcing policies and procedures for 
accessing funds to implement National Emergency Grant (NEG) programs 
under section 173 of the Workforce Investment Act (WIA), as amended. 
Funds are available for obligation by the Secretary of Labor (the 
Secretary) under sections 132 and 173 of the WIA, and section 203 of 
the Trade Adjustment Assistance Reform Act of 2002. Applications 
will be accepted on an ongoing basis as the need for funds arises at 
the state and local level. Applicants are strongly encouraged to 
submit applications as early as possible following notice of an 
eligible dislocation event. Grant awards will be made only to the 
extent that funds remain available.
    This application package provides information and procedures by 
which eligible entities can apply for National Emergency Grant funds 
to provide workforce development and employment services, and other 
adjustment assistance for dislocated workers and other eligible 
individuals as defined in sections 101, 134 and 173 of WIA; sections 
113, 114 and 203 of the Trade Adjustment Assistance Reform Act of 
2002; and 20 CFR 671.140. It consists of the following eight parts 
and two appendices:
    [sbull] Part I provides background about the purpose and use of 
NEGs.
    [sbull] Part II describes eligibility, including eligible 
circumstances for funding, eligible entities for grant awards, and 
eligible individuals for assistance.
    [sbull] Part III identifies the policies governing 
administrative and project design requirements on NEGs.
    [sbull] Part IV provides an overview of the application 
submission requirements for each type of NEG project;
    [sbull] Part V identifies the elements in the application review 
process including the criteria that will be used to determine the 
appropriateness of the request for funds.
    [sbull] Part VI describes alternative approaches to grant 
funding and the requirements associated with partial funding 
requests and actions.
    [sbull] Part VII describes the follow-up planning, oversight and 
reporting requirements for awarded grants.
    [sbull] Part VIII describes the grant modification process.
    Appendix A contains copies of the required grant application 
forms. The forms are in an electronic format to facilitate easy 
completion and timely submission of the application. The Department 
seeks to establish a process that provides both timely submission of 
applications for funding, in relation to worker eligibility for 
assistance, and timely processing of such applications. The 
electronic formats have been developed to facilitate accomplishment 
of this objective.
    Appendix B contains a directory of Regional Office contacts.
    Applications for NEG funds may be submitted at any time. The 
maximum allowable project performance periods are defined by the 
months remaining in the Program Year in which the grant award is 
made plus the subsequent two Program Years. The Program Year for 
these projects is the 12 month period July 1--June 30. The 
Employment and Training Administration expects that the project 
performance period in any NEG application will reflect a time 
efficient approach to returning eligible individuals to appropriate 
employment consistent with the performance goals that apply to NEG 
projects.
    The application procedures, application review process, and 
project oversight and reporting requirements described in this 
notice are issued under the WIA regulations at 20 CFR 671.125.
    Applications must be filed electronically using the Web site 
http://testetareports.doleta.gov. To submit an application 
electronically, applicants will need to use a PIN  that has 
been assigned to them by ETA. A PIN  can be obtained by 
contacting the appropriate Regional Office.
    For further information you may contact Shirley M. Smith, 
Administrator, Office of National Response at (202) 693-3501. (This 
is not a toll-free number.) A user's guide on preparing and 
submitting an application electronically and technical assistance on 
application requirements are available from Regional Offices of ETA 
and from the Office of National Response, Employment and Training 
Administration, U.S. Department of Labor, Room N-5426, 200 
Constitution Avenue, NW., Washington, DC 20210.

Part I: Background

    National Emergency Grants are discretionary awards by the 
Secretary of Labor and are intended to complement resources and 
service capacity at the State and local area levels by providing 
supplemental funding for workforce development and employment 
services and other adjustment assistance for dislocated workers and 
other eligible individuals, as defined in sections 101, 134 and 173 
of WIA: sections 113, 114 and 203 of the Trade Adjustment Assistance 
Reform Act of 2002: and 20 CFR 671.140. To be effective, NEG funding 
actions must be timely in relation to

[[Page 26656]]

the need for assistance. At the same time, effective use of NEG 
funds requires reasonable, informed estimates of the amount of funds 
needed to respond to eligible events AND responsive implementation 
plans for assisting the affected workers.
    Responsive and responsible use of NEG funds requires a system-
based collaboration between the State and local entities that are 
charged with providing assistance to workers affected by significant 
dislocation events, and the Federal agency that manages the national 
fund account. This collaboration must operate in a manner that 
``puts the right amount of money in the right place at the right 
time.'' Inefficiencies in this collaboration are defined by both 
delayed funding actions (i.e., in relation to the time at which 
services are needed by eligible workers) and unexpended funds caused 
by inaccurate estimates of the amount of funding needed to respond 
to the dislocation event. Correcting these inefficiencies is a 
shared responsibility by the applicant/grantee and ETA.
    The approach to NEG grant awards will be based on quick 
turnaround initial funding actions where the following can be 
demonstrated:
    [sbull] There is an eligible circumstance for funding, with a 
group of workers who are currently eligible to receive assistance.
    [sbull] An early intervention strategy has been initiated.*
    [sbull] Per-participant expenditure levels are consistent with 
the formula program experience in the proposed project area.*
    [sbull] There is a plan for timely enrollment of eligible 
workers into assistance and expenditure of requested funds.
    [sbull] Overall project performance goals are consistent with 
the Secretary's goals for dislocated worker assistance.
    [sbull] Other available funding sources are inadequate to fully 
fund the level of assistance needed.*

(Note: *These do not apply to Disaster and Trade Health Coverage 
Assistance projects. In addition, the early intervention requirement 
does not apply to Trade-WIA Dual Enrollment projects.)
    ETA is committed to making a decision to approve or disapprove 
all submitted applications within 15 working days from receipt of a 
complete and responsive application. Note, however, that if the 
applicant chooses to submit an unrequested revision to a previously 
submitted application that is undergoing review, the 15-day 
processing time period starts over. Additionally, because experience 
with worker dislocations has consistently demonstrated that actual 
project requirements often vary from initial planning assumptions 
(i.e., on factors such as participation levels and intensity of 
reemployment assistance needs), most NEG requests will be funded 
incrementally.
    Grant recipients will be expected to develop a more complete 
project operational plan, including project operator agreements and 
participant registration and assessment information, which should be 
available for review at the state or grantee level approximately 90 
days after the grant award decision. This plan and project 
implementation experience to date will help verify the full amount 
of NEG funding needed to adequately respond to the dislocation 
event.

Part II

A. Eligible Circumstances for Funding

    NEG funds may be used to provide assistance in the following 
circumstances:
    [sbull] Plant closures and mass layoffs affecting 50 or more 
workers at a single site of employment;
    [sbull] Closures and realignments of military installations;
    [sbull] Multiple layoffs in a single local community that have 
significantly increased the total number of unemployed individuals 
in the community; *
    [sbull] Emergencies or disasters that have been declared 
eligible for public assistance by the Federal Emergency Management 
Agency (FEMA); and
    [sbull] Special assistance, including health coverage 
assistance, to trade-impacted workers and other individuals eligible 
under the Trade Adjustment Assistance Reform Act of 2002.
    The Secretary may determine that other circumstances are 
appropriate for NEG funding.

(*In order to qualify under this criterion, the applicant must 
demonstrate that there is significant economic impact upon the 
community by indicating such conditions as:

--The ``community'' is a local area labor market or, if smaller, 
another geographical entity for which monthly unemployment 
information is available.

    Note: This criterion cannot be applied at the state level 
although the state may be the grant applicant.

--The total layoffs in the community occurring during the reference 
period have resulted in an increase in the unemployment rate by at 
least one percentage point (e.g., from 4% to 5%).

(In order to assure the timely nature of these applications, the 
``Reference Period'' should be a period of time of no less than 
three months and no greater than six months for which monthly 
unemployment information is publicly available. The months included 
in the ``Reference Period'' cannot overlap with any months included 
in the time period used in calculating the current program year's 
formula funding state allotments. The percentage point increase 
calculation will be based on the unemployment rate of the last month 
in the ``Reference Period'' and the month immediately prior to the 
first month in the ``Reference Period.'')

--The request includes only those layoffs that have occurred within 
the reference period used for the unemployment rate computation or 
later.
--The level of formula funds usage, as described in part IV, section 
A.7, for both the local area and the state's reserve exceeds 50% in 
the first quarter of the program year, 70% in the second quarter and 
85% in the last two quarters of the program year.)
    The provisions of WIA and the Regulations define four NEG 
project types:
    [sbull] Regular, which encompasses plant closures, mass layoffs, 
and multiple layoffs in a single community.
    [sbull] Disaster, which includes all eligible FEMA-declared 
natural and manmade disaster events.
    [sbull] Trade-WIA Dual Enrollment, which provides funding to 
ensure that a full range of services is available to individuals 
eligible through a certification under the provisions of the Trade 
Adjustment Assistance Reform Act of 2002.
    [sbull] Trade Health Coverage Assistance, which provides special 
health coverage assistance through partial payment of health 
insurance premium costs under approved plans, support services, and 
income assistance to targeted individuals defined in the Trade 
Adjustment Assistance Reform Act of 2002.

B. Eligible Entities for Grant Awards

    Entities that are eligible to receive a NEG grant for a Regular 
Project are:
    [sbull] For Intrastate Projects:

--The designated state WIA program grantee agency.
--A Local Area Workforce Investment Board (or its fiscal agent).
--A designated organization receiving WIA funding through the Native 
American Program provision of the Act;

    [sbull] For Interstate Projects:

--A consortium of states.
--A consortium of local Boards.

    For interstate projects, one state must be designated to serve 
as the grant applicant and recipient. The Secretary may consider 
applications from other entities where it can be demonstrated that 
the entity will provide the most effective response to the 
applicable dislocation(s).
    Because NEG grants are a source of supplemental funding to the 
existing dislocated worker service structure, DOL expects that 
states, as the entities responsible for ensuring the effective use 
of all dislocated worker funds within the State, will assume the 
role of grantee in most instances.
    Eligible applicants for Disaster projects and projects to 
provide special assistance to trade-impacted workers are limited to 
States. In those cases where the State is the grantee but the 
project will operate in one or more designated local areas, the 
State may want to consult with applicable local area Workforce 
Investment Boards in the development of applications for NEG funds.

C. Eligible Individuals for Assistance

    Individuals who are eligible for assistance vary by type of NEG 
project. The categories of eligible individuals are:
    1. A dislocated worker: a. An individual who:
    (1) Has been terminated or laid off, or has received a notice of 
termination or layoff, from employment;
    (2) Is eligible for or has exhausted entitlement to unemployment 
compensation, or has been employed for a duration sufficient to 
demonstrate to appropriate staff of the One-Stop Center attachment 
to the workforce but is not eligible for unemployment compensation 
due to insufficient earnings or having performed

[[Page 26657]]

services for an employer not covered under the state's unemployment 
compensation law; and
    (3) Is unlikely to return to a previous industry or occupation.
    b. An individual who:
    (1) Has been terminated or laid off, or has received a notice of 
termination or layoff, from employment as a result of any permanent 
closure of, or any substantial layoff at, a plant, facility or 
enterprise; or
    (2) Is employed at a facility at which the employer has made a 
general announcement that such facility will close within 180 days; 
or is employed at a facility at which the employer has made a 
general announcement that such facility will close. (Note: 
Eligibility for other than Core Services requires an announcement by 
the employer that the facility will close within 180 days.)
    c. An individual who was self-employed but is unemployed as a 
result of general economic conditions in the community in which the 
individual resides or because of natural disasters.
    d. An individual who has been providing unpaid services to 
family members in the home and who:
    (1) Has been dependent on the income of another family member 
but is no longer supported by that income; and
    (2) Is unemployed or underemployed and is experiencing 
difficulty in obtaining or upgrading employment.
    2. A civilian employee of the Department of Defense or the 
Department of Energy employed at a military installation that is 
being closed, or that will undergo realignment, within the next 24 
months.
    3. An individual who is employed in a nonmanagerial position 
with a Department of Defense contractor, and who is determined to be 
at risk of termination from employment as a result of reductions in 
defense expenditures, and whose employer is converting operations 
from defense to non-defense applications in order to prevent worker 
layoffs.
    4. A member of the Armed Forces who:
    a. Was on active duty or full-time National Guard duty;
    b. Is involuntarily separated from active duty or full-time 
National Guard duty, or is separated from active duty or full-time 
National Guard duty pursuant to a special separation benefits 
program or voluntary separation incentive program;
    c. Is not entitled to retired or retained pay incident to the 
separation described in (b); and
    d. Applies for employment and training assistance before the end 
of the 180 day period beginning on the date of separation.
    5. An individual who is temporarily or permanently laid off as a 
consequence of a disaster event qualifying for public assistance 
through a FEMA declaration.
    6. An individual who is long-term unemployed.
    7. For Trade-WIA Dual Enrollment Projects, an individual covered 
by a certification under the Trade Adjustment Assistance Reform Act 
of 2002 who also qualifies as an eligible dislocated worker.
    8. For Trade Health Coverage Assistance Projects:
    a. An individual who is eligible for a trade readjustment 
allowance (TRA) under the TAA program, or would be eligible for TRA 
except that he/she has not yet exhausted his/her unemployment 
insurance (UI) benefits;
    b. A qualified family member of an eligible individual under 
``a'';
    c. Recipients of pension benefits through the Pension Benefit 
Guaranty Corporation.
    Not all of these groups are eligible for each type of NEG 
project assistance. The following table summarizes the relationship 
between eligible individuals and eligible NEG project types.

----------------------------------------------------------------------------------------------------------------
                                                                                             Trade Adjustment
                                                                                                Assistance
                                                                                         -----------------------
                                                                    Regular    Disaster                 Health
                                                                                             Dual     coverage &
                                                                                          enrollment    related
----------------------------------------------------------------------------------------------------------------
Dislocated Worker...............................................          X           X   ..........  ..........
DoD/DoE Civilian Employee.......................................          X   ..........  ..........  ..........
DoD Contractor Employee.........................................          X   ..........  ..........  ..........
Member of Armed Forces..........................................          X   ..........  ..........  ..........
Laid off as result of Disaster..................................  ..........          X   ..........  ..........
Long-term Unemployed............................................  ..........          X   ..........  ..........
Trade-impacted..................................................  ..........  ..........          X           X
Qualified Dependent of Eligible Trade-Impacted Worker...........  ..........  ..........  ..........          X
PBGC Pension Recipient..........................................  ..........  ..........  ..........          X
----------------------------------------------------------------------------------------------------------------

Part III: Administrative and Project Design Requirements

A. General

    Grantee organizations, administrative entities, project 
operators and service providers are subject to the WIA law, 
regulations, grant application instructions, the terms and 
conditions of the grant and any subsequent modifications, and to all 
other applicable Federal laws (including provisions in Federal 
appropriations laws). Since eligible applicants are generally 
limited to State, Native American tribal entities, and local Boards 
that are established through WIA, NEG grantees will be subject to 
all administrative system requirements that apply to the use of WIA 
formula funds for dislocated workers, except as otherwise provided 
in these instructions. Any other entity that seeks to apply for NEG 
funds will be required to demonstrate its ability to meet these same 
administrative system requirements.

B. Cost Limitations

    Administrative cost limitations shall apply to all NEG grant 
awards. Cost limitations shall apply to actual expenditures. In 
general, a 10 percent (10%) limit will apply to all NEG projects.
    On projects where the state is the grantee, but services are 
being provided through one or more local area project operators, the 
10 percent cost limit will apply to local area expenditures. In 
these grants the state may retain an additional amount to perform 
state-level management and oversight functions in support of the 
grant. This amount should not exceed 1.5 percent of the total local 
area funding.
    Any costs associated with administering a system of needs-
related or health coverage payments must be separately identified in 
the application budget and justified in the narrative.
    Although administrative cost limits on NEG projects are subject 
to negotiation with the Grant Officer, ETA expects that most 
projects will be able to be implemented within the above cited 
limits. Any request for a higher limit will have to be clearly and 
fully justified in terms of unusual project operating circumstances. 
Applicants should recognize that any such request will have to be 
negotiated with the Grant Officer and will delay the timing of the 
funding action.

C. Indirect Costs

    If an indirect cost rate is applied in calculating 
administrative costs, the applicant must include information from 
the most recent approval document that identifies the approved 
indirect cost rate and base, the cognizant approval agency, and the 
date of the approval. Generally, indirect costs will only be 
approved at the grantee level. If an application includes indirect 
costs at the project operator level, the grantee will be responsible 
for verifying the appropriate documentation to support the costs.

D. Early Intervention

    For Regular projects, all NEG applications are expected to be 
the result of an early intervention process that has been activated 
through the State's Rapid Response system. As appropriate, the early 
intervention

[[Page 26658]]

process may include the use of formula funds to initiate core and 
intensive, and even training services. In cases where formula funds 
have been used to provide services (excluding Rapid Response) to the 
eligible target group prior to grant award and the availability of 
formula funds in the state is limited, the Grant Officer may 
authorize the use of grant funds to reimburse the cost of such 
services. However, approval for using grant funds for such costs 
will be limited to costs incurred within the 90-day period preceding 
the date of receipt of the application. For Regular projects, ETA 
expects that applications for NEG funding will be submitted within 
90 days of the dislocation event(s) or the date on which the target 
group of workers included in the application become eligible for 
assistance.
    In general, the initiation of early intervention activities will 
be a pre-condition for the award of NEG funds for Regular projects. 
If early intervention through Rapid Response has not been feasible, 
the applicant must document the circumstances that prevented 
initiation of early intervention in the application.

E. Allowable Activities and Services

    NEG funds may be used to provide services of the type described 
in section 134(d)(2), (3), (4) and (e)(2) and (3) of WIA. For 
Disaster projects, NEG funds may also be used for temporary 
employment assistance to provide food, clothing, shelter and related 
humanitarian assistance; and to perform demolition, cleaning, 
repair, renovation and reconstruction of damaged and destroyed 
structures, facilities and lands located within the designated 
disaster area. For Trade Health Coverage Assistance projects, funds 
may also be used for the activities and services described in WIA 
sections 173 (f) and (g). Additional guidance on the use of funds 
for these activities and services will be provided through Training 
and Employment Guidance Letters (TEGLs).

F. Project Design and Service Operations

    Project operations should be consistent with the established 
policies and procedures of the State and/or local Board(s) in the 
area in which the project is to operate. ETA expects that such 
policies and procedures are flexible enough to respond to the needs 
of any eligible dislocated worker, including those who are eligible 
for assistance through NEG funding. Where variations may be 
appropriate to respond to the needs of special populations (e.g., 
limited English speaking) who comprise the target group, these will 
have to be explained and justified in the application.

G. Temporary Employment (Disaster Projects ONLY)

    Temporary job creation is limited to public and private non-
profit agencies. An individual participant on a Disaster project may 
be employed for a maximum of six months, or 1,040 hours, whichever 
is longer. The maximum level of wages paid to a participant is 
limited to $12,000 excluding the cost of fringe benefits. Fringe 
benefits should be paid in accordance with the policies of the 
employer of record for temporarily employed workers. If a higher 
wage level for some participants is critical to the success of 
clean-up efforts on the project, the applicant may request a higher 
limit from the Grant Officer.

H. Integration With Other Resources

    The services provided to eligible workers in the large majority 
of Regular and Trade Adjustment Assistance projects should be 
financed from multiple sources, including WIA formula, One-Stop 
partner and other public and private (e.g., employer) funds. In 
addition, grantees will be expected to make a maximum effort to 
assist each project participant to apply and qualify for available 
sources of financial assistance, consistent with the provisions of 
Sec.  663.320 of the WIA Regulations.

I. Coordination With Trade Act Funds

    ETA expects that states will have in place efficient procedures 
for dual enrollment of eligible workers in both the TAA and WIA 
programs. Receipt of NEG funds to provide services to TAA eligible 
workers will be predicated on the existence of such procedures.

J. Performance Outcomes

    ETA expects that NEG-funded projects will achieve quality 
employment and earnings outcomes for the individuals who are served. 
Each NEG project will be required to achieve performance outcomes 
for eligible workers that are at least as high as the higher of the 
corresponding goals set by the Secretary and those negotiated with 
the applicable state or local Board.
    Employment-related performance measures will not apply to Trade 
Health Coverage Assistance projects.

K. Project Management

    ETA expects that NEG-funded projects will be organized to 
provide the most responsive services from the perspective of the 
customer (i.e., the dislocated worker). There may be instances in 
which a project will operate in multiple local workforce areas. 
Except in the limited cases where projects may span large areas of 
the state and involve workers from widely dispersed areas and 
different labor market conditions, the projects should be designed 
and managed to operate under a consistent set of service policies 
and procedures that are agreed to by all of the local Boards 
involved.
    Where a single project will operate in multiple local areas, ETA 
will award the grant to the state or to one of the local Boards that 
has been designated as grant recipient through an agreement executed 
by all of the local Boards involved. The grant will be structured to 
operate on a full service area basis, and the grantee will have full 
authority to move funds between designated project operators 
consistent with where eligible workers are seeking services. In 
these cases, the service policies and procedures applying to the 
project can be those of the state, of the local Board designated as 
grant recipient, or ones jointly developed by all of the local 
Boards as part of the agreement. This principle will also apply to 
projects that will operate on an interstate basis, that is, an 
agreement will have to be executed among all of the involved states 
and the agreement will need to designate one of the states to be the 
grant recipient, as well as identify the service policies and 
procedures that will apply.

Part IV: Application Submission Requirements

    To be considered for funding, an application must include the 
information identified in this section. The information requirements 
are organized by type of NEG project since the requirements vary by 
project type.

A. Regular Projects

    1. Completed and signed SF 424-Application for Federal 
Assistance. This form is the required application for Federal funds. 
The authorized signatory of the applicant will be issued a unique 
Personal Identification Number (PIN). The entry of this PIN on the 
SF 424 constitutes the authorized signature.
    2. Project Synopsis Form (ETA 9106). This form summarizes key 
aspects of the proposed project such as project type, type of 
eligible event, key contact information, planned number of 
participants, performance measures, and explanation of why requested 
funds are needed.
    3. Employer Data Form (ETA 9105). This form provides employer 
and dislocation site-specific information needed to validate the 
eligibility of the dislocation event(s) and the target group of 
workers for NEG assistance. Information includes name and location 
of employer, date and type of worker notification, date(s) of layoff 
and number of workers affected, date(s) and types of Rapid Response 
activities.
    4. Project Operator Data Form (ETA 9107). This form includes key 
contact and project scope information (e.g., number of participants, 
total budget, service area) for each project operator. This form 
must be completed and submitted only to the degree that Project 
Operators have been identified at the time of application. This 
information should be submitted as Project Operators are identified 
and agreements executed. However, if the applicant is submitting a 
full funding request, it is expected that Project Operators will 
have been identified and the contact information on the form should 
be completed.
    5. Planning Form (ETA 9103). This form provides cumulative 
quarterly estimates on project scope (e.g., number of participants, 
exits), design (e.g., mix of activities), and budget (e.g., costs by 
type of activity, administrative costs).
    6. Narrative Summary. This form allows the applicant to provide 
any explanations/justifications needed for entries in the above 
forms. Narrative explanations are required in the following 
instances:

--A notification was made by the employer but no Rapid Response 
activities have been initiated.
--Some of the affected layoffs have occurred more than 4 months 
prior to the date of submission of the application.
--The application is being submitted to address ``community impact 
layoffs.'' The narrative must provide specific information in 
relation to the specific requirements for meeting this criterion 
(see definition in part II.A of these guidelines).

[[Page 26659]]

--The number of planned participants is greater than 50% of the 
total number of affected workers.
--Either the planned entered employment rate or the planned average 
wage replacement rate is less than the higher of the corresponding 
goals set by the Secretary and those negotiated with the applicable 
State or local Board.
--The planned cost per participant on the project is greater than 
the cost per participant in the applicant's formula program for 
dislocated workers.
--There are participants receiving NRPs, which requires explaining 
how the planned number of recipients and the NRP cost per 
participant were determined.
--Indirect costs are included in the budget, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--``Other'' costs--at either the State or local level--are included 
in the budget, which requires identifying the specific cost items 
and amounts.
--Administrative costs related to NRPs are included in the budget, 
which requires explaining how the administrative cost estimate was 
derived (i.e., based on number of check payments and check 
processing costs).
--Administrative expenses at the local/project level, excluding 
NRPs, are greater than 10% of total expenses.
--In projects where the state is the grantee but the project is 
implemented through local project operators, State-level management 
and oversight expenses are greater than 1.5% of total local 
expenses.

    The applicant is free to include narrative explanations of other 
special factors, but the narrative should not exceed five pages.
    7. Current Obligation and Expenditure Status Report. The 
applicant must include, as an attachment to its grant submission, 
information which presents the current status (i.e., through the 
most recent month for which information is available) of accrued 
expenditures and obligations, both for available WIA formula funds 
in the current Program Year and for each active NEG grant in the 
applicant's service area. The status report must address the 
following factors:

--Total available funds;
--Total accrued expenditures;
--Total unexpended but obligated funds in ITAs for currently 
enrolled participants;
    --Amount for this PY;
    --Amount for next PY;
--Total unexpended but obligated funds for fixed staff costs;
    --Total unexpended but obligated funds for fixed facilities 
costs;
    --Total unexpended but obligated funds for other (identify) 
fixed costs.

    For formula funds, available funds and obligations for fixed 
costs are for the current Program Year. For active NEG projects, the 
available funds and obligations for fixed costs are for the approved 
budget and project period.

B. Disaster Projects

    1. Completed and signed SF 424-Application for Federal 
Assistance. This form is the required application for Federal funds. 
The authorized signatory of the applicant will be issued a unique 
Personal Identification Number (PIN). The entry of this PIN on the 
SF 424 constitutes the authorized signature.
    2. Project Synopsis Form (ETA 9106). This form summarizes key 
aspects of the proposed project such as project type, type of 
eligible event, key contact information, types of eligible 
individuals to be included in the target group for the project, 
planned number of participants, performance measures, and contact 
information. This form includes an entry for the FEMA declaration 
that qualifies the event as eligible for NEG assistance. This may 
not be available at the time the application is submitted and, if 
not, will be entered by DOL/ETA.
    3. Project Operator Data Form (ETA 9105). This form includes key 
contact and project scope information (e.g., number of participants, 
total budget, service area) for each project operator. This form 
must be completed and submitted only to the degree that 
ProjectOperators have been identified at the time of application. 
This information should be submitted as Project Operators are 
identified and agreements executed. However, if the applicant is 
submitting a full funding request, it is expected that Project 
Operators will have been identified and the contact information on 
the form should be completed.
    4. Planning Form (ETA 9103). This form provides cumulative 
quarterly estimates on project scope (e.g., number of participants, 
exits), design (e.g., mix of activities), and budget (e.g., costs by 
type of activity, administrative costs).
    5. Narrative Summary. This form allows the applicant to provide 
any explanations/justifications needed for entries on the above 
forms. Narrative explanations will be required in the following 
instances:

--Dislocated workers and long-term unemployed are included in the 
target group, but no workforce development services are proposed 
beyond temporary job creation.
--Either the planned entered employment rate or the planned average 
wage replacement rate for participants receiving workforce 
development services is less than the higher of the corresponding 
goals set by the Secretary and those negotiated with the applicable 
state or local Board.
--There are participants receiving NRPs, which requires explaining 
how the planned number of recipients and the NRP cost per 
participant were determined.
--Indirect costs are included in the budget, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--``Other'' costs--at either the State or local level--are included 
in the budget, which requires identifying the specific cost items 
and amounts.
--Administrative costs related to NRPs are included in the budget, 
which requires explaining how the administrative cost estimate was 
derived (i.e., based on number of check payments and check 
processing costs).
--Administrative expenses excluding NRPs are greater than 10% of 
total expenses.
--In projects where the state is the grantee but the project is 
implemented through local project operators, State-level management 
and oversight expenses are greater than 1.5% of total local 
expenses.

    The applicant is free to include narrative explanations of other 
special factors, but the narrative should not exceed five pages.

C. Trade Adjustment Assistance Projects

    These projects are limited to assistance to eligible individuals 
as identified in the Trade Adjustment Assistance Reform Act of 2002. 
NEG funds can be used in two ways:

--To provide funding to ensure that a full range of services is 
available to trade-impacted individuals eligible under the 
provisions of the Trade Adjustment Assistance Reform Act of 2002.
--To pay for costs of health insurance premiums, supportive services 
(e.g., transportation, child care, dependent care), and income 
assistance (e.g., needs-related payments) for eligible individuals 
under the provisions of section 173(g) of the Workforce Investment 
Act, as amended by the Trade Adjustment Assistance Reform Act of 
2002.

    Each of these uses is supported by a separate appropriation. 
Therefore, a separate NEG application will be required for each use 
for which an applicant is seeking funds. Instructions for applying 
for NEG funds to pay the costs of allowable system-building 
activities under section 173(f) have been separately issued.

1. Trade-WIA Dual Enrollment Project

    a. Completed and signed SF 424-Application for Federal 
Assistance. This form is the required application for Federal funds. 
The authorized signatory of the applicant will be issued a unique 
Personal Identification Number (PIN). The entry of this PIN on the 
SF 424 constitutes authorized signature.
    b. Project Synopsis Form (ETA 9106). This form summarizes key 
aspects of the proposed project such as project type, key contact 
information, planned number of participants, performance measures, 
and explanation of why the requested funds are needed.
    c. Project Operator Data Form (ETA 9107). This form includes key 
contact and project scope information (e.g., number of participants, 
total budget, service area) for each project operator. This form 
must be completed and submitted only to the degree that Project 
Operators have been identified at the time of application. This 
information should be submitted as Project Operators are identified 
and agreements executed. However, if the applicant is submitting a 
full funding request, it is expected that Project Operators will 
have been identified and the contact information on the form should 
be completed.
    d. Planning Form (ETA 9103). This form provides cumulative 
quarterly estimates on project scope (e.g., number of participants, 
exits), design (e.g., mix of activities), and budget (e.g., costs by 
type of activity, administrative costs).
    e. Narrative Summary. This form allows the applicant to provide 
any explanations/justifications needed for entries on the above

[[Page 26660]]

forms. Narrative explanations will be required in the following 
instances:

--Either the planned entered employment rate or the planned average 
wage replacement rate is less than the higher of the corresponding 
goals set by the Secretary and those negotiated with the applicable 
state or local Board-Indirect costs are included in the budget, 
which requires identifying the following: cognizant approval agency, 
approved cost rate and base, and date of approval.
--``Other Program'' costs--at either the state or local level--are 
included in the budget, which requires identifying the specific cost 
items and amounts.
--Administrative expenses are greater than 10% of total expenses.
--In projects where the state is the grantee but the project is 
implemented through local project operators, State-level management 
and oversight expenses are greater than 1.5% of total local 
expenses.

    The applicant is free to include narrative explanations of other 
special factors, but the narrative should not exceed five pages.
    f. TAA Certification Report. The applicant must include, as an 
attachment to its grant submission, information which identifies by 
employer the TAA Trade Certification numbers and the number of 
workers covered in the certifications. In cases where a petition has 
been filed but the certification is pending, identify the TAA Trade 
Petition number, the date the petition was filed, and the number of 
workers covered in the petition.
    g. Current Obligation and Expenditure Status Report. The 
applicant must include, as an attachment to its grant submission, 
information which presents the current status (i.e., through the 
most recent month for which information is available) of accrued 
expenditures and obligations, for both available WIA formula and 
Trade Act funds in the current Program Year. The status report must 
address the following factors:

--Total available funds;
--Total accrued expenditures;
--Total unexpended but obligated funds in ITAs for currently 
enrolled participants;
    --Amount for this PY;
    --Amount for next PY;
--Total unexpended but obligated funds for fixed staff costs;
--Total unexpended but obligated funds for fixed facilities costs;
--Total unexpended but obligated funds for other (identify) fixed 
costs.

    For formula funds, available funds and obligations for fixed 
costs are for the current Program Year. For active NEG projects, the 
available funds and obligations for fixed costs are for the approved 
budget and project period.

2. Trade Health Coverage Assistance

    a. Completed and signed SF 424--Application for Federal 
Assistance. This form is the required application for Federal funds. 
The authorized signatory of the applicant will be issued a unique 
Personal Identification Number (PIN). The entry of this PIN on the 
SF 424 constitutes the authorized signature.
    b. Project Synopsis form (ETA 9106). This form summarizes key 
aspects of the proposed project such as project type, planned number 
of participants, and contact information. It also includes 
identification of the types of health insurance coverage options 
that will be available to project participants.
    c. Planning Form (ETA 9103). This form provides cumulative 
quarterly estimates on project scope (e.g., number of participants, 
exits), design (e.g., mix of services), and budget (e.g., costs by 
type of activity, administrative costs).
    d. Narrative Summary. Describe steps taken to consult and 
coordinate with appropriate state executive agencies and other 
appropriate parties in order to ensure that the use of NEG funds to 
provide health coverage assistance to eligible individuals will be 
consistent with the policies and procedures of those agencies. A 
narrative explanation must also be provided in cases where one or 
more of the following are reflected in the project plan:

--There are participants receiving NRPs, which requires explaining 
how the planned number of recipients and the NRP cost per 
participant were determined.
--Indirect costs are included in the budget, which requires 
identifying the following: Cognizant approval agency, approved cost 
rate and base, and date of approval.
--``Other'' costs are included in the budget, which requires 
identifying the specific cost items and amounts.
--Administrative costs related to processing payments for qualified 
health insurance coverage and NRPs are included in the budget, which 
requires explaining how the administrative cost estimate was derived 
(i.e., based on number of check payments and check processing 
costs).
--Administrative expenses excluding NRPs and health insurance 
coverage assistance are greater than 10% of total expenses.
    The applicant is free to include narrative explanations of other 
special factors, but the narrative should not exceed five pages.
    e. TAA Certification Report. The applicant must include, as an 
attachment to its grant submission, information that identifies by 
employer the TAA Trade Certification numbers and the number of 
workers covered in the certifications. In cases where a petition has 
been filed and certification is pending, identify the TAA Trade 
Petition number, the date the petition was filed, and the number of 
workers covered in the petition.

Part V: Application Review Process

    To be considered for funding, an application must demonstrate 
that the proposed project meets the purpose of and is consistent 
with the Act and Regulations and provides all of the information 
required by these guidelines. Applications that are not completely 
in accordance with the requirements or do not contain all required 
submission forms will not be considered as submitted and will not be 
evaluated for funding until all required information and 
documentation is provided. Complete applications will be evaluated 
for responsiveness to the criteria identified in this part. Just as 
with the submission requirements, the criteria are generally similar 
for each type of NEG project but there are variations. The specific 
criteria by type of project are itemized in the following sections.

A. Regular Projects

    1. Eligibility: To ensure that NEG funds are only awarded to 
eligible dislocation events and where there is a verifiable target 
group that is both eligible and in need of assistance.
    a. Information demonstrates that the dislocation events cited 
are eligible for NEG funding.
    b. Information demonstrates that identified workers in the 
target group are currently eligible for assistance.
    c. Information indicates that the affected workers are still in 
need of assistance.
    2. Early Intervention: To ensure that required Rapid Response is 
being implemented.
    a. Information indicates that timely and appropriate Rapid 
Response actions have been taken.
    b. Information indicates that some effort has been made to 
contact affected workers and/or their representatives.
    3. Reasonableness of Proposed Services and Costs: To ensure that 
NEG projects are designed and operated in accordance with the 
Federal requirements and the State and local policies that apply to 
formula-funded dislocated worker programs in the proposed project 
area, OR, if different, that they are fully justified in terms of 
target group and reemployment barriers.
    a. The planned average cost per participant for the project is 
within a reasonable range of the state's actual average cost per 
participant reported for the prior Program Year.
    b. The percentage of planned participants receiving needs-
related payments (NRPs) in the project is justified in terms of 
formula program experience or target group characteristics and 
reemployment barriers.
    c. The indirect costs are justified by identifying: (1) The 
approved indirect cost rate and base; (2) the cognizant approval 
agency; (3) the date of the approval.
    d. ``Other'' expenditures that are included in the budget--at 
either the State or local level -are identified and justified in the 
narrative.
    e. The ratio of planned participants to affected workers is 
reasonable in light of prior experience with NEG projects and with 
the results of Rapid Response/early intervention activities.
    f. Total administrative costs are within the cost limitations at 
both the state and local project levels, OR are explained and 
justified.
    4. Timeliness of Assistance: To ensure that project 
implementation will reflect timely assistance to affected workers, 
consistent with the initiation of Rapid Response and other early 
intervention activities; and to ensure that the rate of expenditures 
is consistent with rate of on-board participants by service type 
(e.g., core/intensive, training).
    a. All planned participants are enrolled in services in a timely 
manner and consistent with availability of funds to complete 
services.
    b. Rates of expenditure for Core/Intensive and Supportive 
Services are consistent with the rates of enrollment in those 
services quarter-to-quarter.

[[Page 26661]]

    c. Rates of expenditure for Training Services and NRPs (if 
applicable) are consistent with the rates of enrollment in those 
services quarter-to-quarter.
    5. Adequacy of Planned Performance: To verify that planned 
performance on NEG projects is appropriate.
    a. The planned levels of performance on each applicable 
performance measure equal to or greater than the higher of the 
negotiated state goal or the Secretary's goal. OR
    b. The application includes specific employment barriers-related 
information on the project's target group to justify a lower level 
of performance.
    6. Need for Funds: To ensure that other funds are not available 
and/or have not been committed to meet the needs of the workers 
covered in the application.
    a. No other funding exists which provides the same services to 
the same target group.
    b. Available information on expenditures of other dislocated 
worker funds in the state indicates the need for the requested 
funds.

B. Disaster Projects

    1. Eligibility: To ensure that NEG funds are only awarded to 
eligible dislocation events and where there is a verifiable target 
group that is both eligible and in need of assistance.
    a. FEMA has issued a public declaration that the event is 
eligible for public assistance.
    2. Reasonableness of Proposed Services and Costs: To ensure that 
NEG projects are designed and operated in accordance with the 
Federal requirements and the State and local policies that apply to 
formula-funded dislocated worker programs in the proposed project 
area, OR, if different, that they are fully justified in terms of 
target group and reemployment barriers.
    a. If long-term unemployed and dislocated workers are part of 
the target group, then the project design includes workforce 
development services designed to move them into permanent 
employment.
    b. If workforce development services are included in the project 
design, then:
    (1) The planned average cost per participant for the project is 
within a reasonable range of the state's actual average cost per 
participant reported for the prior Program Year.
    (2) The percentage of planned participants receiving needs-
related payments (NRPs) in the project is justified in terms of 
formula program experience or target group characteristics and 
reemployment barriers.
    c. The indirect costs are justified by identification of: (1) 
The approved indirect cost rate and base; (2) the cognizant approval 
agency; (3) the date of the approval.
    d. ``Other'' expenditures that are included in the budget--at 
either the State or local level--are identified and justified in the 
narrative.
    e. Total administrative costs are within the cost limitation, or 
are explained and justified.
    3. Timeliness of Assistance: To ensure that project 
implementation will reflect timely response to the emergency 
situation.
    a. All planned temporary jobs are filled within the first three 
quarters of project operation.
    b. Information indicates that participants are completing 
temporary jobs prior to substantially undertaking workforce 
development activities.
    4. Adequacy of Planned Performance: For participants receiving 
workforce development services, to verify that planned performance 
on NEG projects appropriate.
    a. The planned levels of performance on each applicable 
performance measure equal to or greater than the higher of the 
negotiated state goal or the Secretary's goal, or
    b. The application includes specific employment barriers-related 
information on the project's target group to justify a lower level 
of performance.
    5. Need for Funds: To ensure that other funds are not available 
and/or have not been committed to meet the needs of the workers 
covered in the application.
    a. There are no other NEG disaster projects in the state that 
are underexpended according to their approved Implementation Plan 
and where the funds could be redirected to this project.

C. Dual Enrollment Projects

    1. Eligibility: To ensure that NEG funds are only awarded to 
eligible dislocation events and where there is a verifiable target 
group that is both eligible and in need of assistance.
    a. TAA certifications and/or other appropriate documentation to 
demonstrate eligibility is provided in the application or can be 
accessed from other sources in DOL/ETA.
    2. Reasonableness of Proposed Services and Costs: To ensure that 
NEG projects are designed and operated in accordance with the 
applicable Federal requirements and the State and local policies in 
the proposed project area.
    a. The average cost per participant for the project is within a 
reasonable range of the state's actual average cost per participant 
reported for the prior Program Year.
    b. The indirect costs are justified by identifying: (1) The 
approved indirect cost rate and base; (2) the cognizant approval 
agency; (3) the date of the approval.
    c. ``Other'' expenditures that are included in the budget--at 
either the State or local level--are identified and justified in the 
narrative.
    d. Total administrative costs are within the cost limitation, OR 
are explained and justified.
    3. Adequacy of Planned Performance: to verify that planned 
performance on NEG projects appropriate.
    a. The planned levels of performance on each applicable 
performance measure equal to or greater than the higher of the 
negotiated state goal or the Secretary's goal, or
    b. The application includes specific employment barriers-related 
information on the project's target group to justify a lower level 
of performance.
    4. Need for Funds: To ensure that other funds are not available 
and/or have not been committed to meet the needs of the workers 
covered in the application.
    a. No other funding exists which provides the same services to 
the same target group.
    b. A state verification of the need for the requested funds is 
provided.
    c. Available information on expenditures of other dislocated 
worker funds, including Trade Act funds, in the state indicates the 
need for the requested funds.

D. Health Coverage Assistance Projects

    1. Eligibility: To ensure that NEG funds are only awarded to 
provide health coverage assistance and supportive services to 
eligible trade-impacted workers and other eligible individuals, as 
specified in the Trade Adjustment Assistance Reform Act of 2002.
    a. TAA certifications and/or other appropriate documentation to 
demonstrate eligibility is either provided in the application or can 
be accessed from other sources in DOL/ETA.
    2. Reasonableness of Proposed Services and Costs: To ensure that 
NEG funds are utilized in a manner consistent with the Federal 
requirements and the State and local policies that apply to trade 
assistance programs in the proposed project area.
    a. The indirect costs are justified by identifying: (1) The 
approved indirect cost rate and base; (2) the cognizant approval 
agency; (3) the date of the approval.
    b. ``Other'' expenditures that are included in the budget are 
identified and justified in the narrative.
    c. Total administrative costs, exclusive of health coverage 
payment processing costs, are within the cost limitation, OR are 
explained and justified.
    d. The basis for administrative costs to process health coverage 
payments is justified.

Part VI: Funding Approaches

    Applications for NEG funds can be funded in whole or in part. 
Full or partial funding can be at the applicant's request or at the 
Secretary's discretion. The applicant may request partial funding 
when the dislocation event is an emergency (i.e., regular projects 
where there was no advance notification of the layoffs, or any 
disaster projects) and there is insufficient time to develop an 
appropriate estimate of the amount of funding that will be needed to 
respond to the event. In cases where the applicant requests partial 
funding, the applicant should only request a partial amount of 
project funding needed in the initial application. After the project 
design uncertainties have been resolved and the initial partial 
funding application has been approved, the applicant must complete a 
new application for the remaining amount of project funding needed.
    Where the applicant is submitting a partial funding request due 
to an emergency situation, the application must be submitted within 
15 calendar days of the emergency, unless logistical barriers (e.g., 
damaged communication systems resulting from a natural disaster) 
prevent submission within this timeframe.
    The following minimum submission requirements shall apply to a 
partial funding request:

For Regular Projects

--SF 424;
--Project Synopsis Form (ETA 9106) (entries are not required for 
Planned Cost per Participant, Planned Entered Employment Rate, 
Planned Wage Replacement Rate and Project Operator Listing);
--Employer Data Form (ETA 9105).

[[Page 26662]]

For Disaster Projects

--SF 424;
--Project Synopsis Form (ETA 9106) (entries are not required for 
Planned Cost per Participant, Planned Entered Employment Rate, 
Planned Wage Replacement Rate and Project Operator Listing).

    As noted previously, most NEG grant awards will be funded 
incrementally at the Secretary's discretion, with the multiple 
disbursements of funds all based on the single application. In these 
cases, a maximum funding level will be approved by the Secretary, 
but a lesser amount will be initially awarded. The grantee will be 
required to submit, at a later date, supplemental information in 
order to request the balance of funds. This information will be 
specified in the grant award letter, but will include, at a minimum, 
current information on actual participant levels, performance 
outcomes, and expenditures.

Part VII: Post-Grant Award Requirements

A. Follow-Up Planning Requirements

    Recipients of a NEG will be required to develop a more complete 
project operational plan as follow-up to the grant award. This plan 
should be completed within 90 days of grant award and be available 
for review at the office of the grant recipient. The information in 
this plan will be used to verify the feasibility of the project 
design and planned levels of performance based on actual project 
implementation experience. The content of the plan will vary by type 
of project but, in general, will need to address factors such as 
status of Rapid Response activities (for Regular projects), 
participant enrollments, needs of participants for specific 
services, implementation schedules, project operator agreements and 
budgets, and project management and staffing structure.

B. Project Oversight

    In addition to the review of the Project Operational Plan, each 
project will be reviewed at the project midpoint. The purpose of 
this review will be to verify core compliance factors such as 
participant eligibility and adequate financial management, assess 
the effectiveness of participant service policies and processes in 
achieving project performance goals, and evaluate the need for funds 
to complete the project.

C. Project Performance Reporting

    Each grant recipient will be required to submit to the Grant 
Officer a Quarterly Report Form (ETA 9104) on actual performance to-
date. The report will include the same factors as the Cumulative 
Quarterly Planning Form (ETA 9103) in the grant document. A copy of 
this form is included in Appendix A.

Part VIII: Grant Modifications

    Grant modifications will be required in the following 
circumstances:

--To increase or change the approved Project Operators.
--When end-of-project performance is expected to vary by more than 
10% from the approved plan regarding: Total participants, 
participants to be enrolled in training, or expenditures for 
training.
--To increase the number of participants receiving NRPs/health 
coverage assistance and/or the amount of expenditures for NRPs/
health coverage assistance.
--To increase the approved amounts of administrative costs.
--To change the performance period for the project.
--When actual end-of-project expenditures will be less than the 
amount of awarded funds.

    Grant modifications must be submitted to the Grant Officer. They 
must be submitted electronically.
    Grant modifications will not be accepted within 90 days prior to 
the scheduled expiration date of the project.
    Where there is a need to increase the amount of approved funding 
a new application for NEG funds must be submitted. To expand the 
layoff dates, and number of eligible workers, at a dislocation site 
already included in the approved grant without increasing the amount 
of approved funding, the grantee may submit a modification that 
would include additional Employer Data Form(s) for the applicable 
layoffs and, if needed, a revised Planning Form. A new application 
is required for the addition of new dislocation sites and target 
groups of eligible workers.

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[FR Doc. 03-12248 Filed 5-15-03; 8:45 am]
BILLING CODE 4510-30-C