[Federal Register Volume 69, Number 81 (Tuesday, April 27, 2004)]
[Notices]
[Pages 23052-23081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9338]



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Part V





Department of Labor





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Employment and Training Administration



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Workforce Investment Act: National Emergency Grants--Application 
Procedures; Notice

  Federal Register / Vol. 69, No. 81 / Tuesday, April 27, 2004 / 
Notices  

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DEPARTMENT OF LABOR

Employment and Training Administration


Workforce Investment Act: National Emergency Grants--Application 
Procedures

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of final guidelines for grant applications.

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SUMMARY: The Employment and Training Administration of the U.S. 
Department of Labor (Department or DOL) is announcing policies and 
procedures for accessing National Emergency Grant (NEG) funds to 
implement programs pursuant to section 173 of the Workforce Investment 
Act (the Act or WIA), as amended. Applications prepared and submitted 
pursuant to these policies and procedures, received as discussed below, 
will be considered. Grant awards will be made only to the extent that 
funds remain available.

DATES: The grant application procedures described in these guidelines 
shall be effective immediately and shall remain in effect until further 
notice. The policy priorities articulated in the National Emergency 
Grants Employment and Training Guidance Letter NO.16-03 (TEGL 16-03), 
dated January 26, 2004, are in effect. 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 levels. Applicants 
are strongly encouraged to submit applications as early as possible 
following official notification or occurrence of an eligible 
dislocation event.

ADDRESSES: In order to comply with the Government Paperwork Elimination 
Act, the Department is establishing an electronic process that will 
support both timely submission of applications for funding, in relation 
to worker eligibility for assistance, and timely processing of such 
applications. The electronic application procedures must be used to 
submit applications for NEG funding, once the system becomes 
operational on July 1, 2004. Once operational, e-applications will be 
made through the DOL/ETA Grantee Reporting System Internet Web site. 
Each state has been assigned a Personal Identification Number (PIN) by 
the Employment and Training Administration's Office of Technical 
Support, which will be needed to access the NEG electronic application. 
Appendix A contains copies of the required grant application forms. A 
user's guide on preparing and submitting a NEG application 
electronically will be available to eligible grant applicants from the 
ETA Regional Offices. Technical assistance on the application 
requirements is available from the appropriate Regional Office or from 
the Office of National Response, Employment and Training 
Administration, U.S. Department of Labor, Room N-5422, 200 Constitution 
Avenue, NW., Washington, DC 20210.
    Prior to implementation of the e-application procedures, 
applications may be mailed, e-mailed or hand-delivered to: Office of 
Grants and Contract Management, Attention: E. Fred Tello, Grant 
Officer, U.S. Department of Labor, Employment and Training 
Administration, 200 Constitution Avenue, NW., Room N-4438, Washington, 
DC 20210, (202) 693-2879 (fax number), [email protected]. A copy of 
the application must be simultaneously mailed or delivered to the 
appropriate Regional Office(s) of the Employment and Training 
Administration. [A list of the Regional Offices is provided in Appendix 
B.] It is recommended that hard copy applications be sent via overnight 
mail or faxed to the attention of Mr. Tello. If sent by mail, please be 
advised that mail delivery in the Washington area may be delayed due to 
mail decontamination procedures.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley M. Smith, Administrator, 
Office of National Response. Telephone: 292/693-3500. (This is not a 
toll free number).

SUPPLEMENTARY INFORMATION: The Department announces the availability of 
funds for grants to provide employment-related 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. 
The application policies and procedures contained in this notice are 
issued pursuant to the WIA regulations at 20 CFR 671.140. The program 
announcement consists of two attachments:
    Attachment I--The National Emergency Grants Policy Guidance Letter 
NO. 16-03 (TEGL 16-03), effective as of January 26, 2004, informs all 
eligible applicants of the policies and priorities that govern the 
award and use of the Secretary's discretionary funding.
    Attachment II--The NEG Assistance-Application Guidelines which 
consists of eight parts:
     Part I provides background about the purpose and 
use of NEGs.
     Part II describes eligibility, including 
eligible circumstances for funding, eligible entities for grant awards, 
and individuals eligible for assistance.
     Part III identifies the policies governing 
project management and design requirements for NEGs.
     Part IV provides an overview of the application 
submission requirements for each type of NEG project.
     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.
     Part VI describes alternative approaches to 
grant funding and the requirements associated with emergency funding 
requests and incremental funding actions.
     Part VII describes the follow-up, planning, 
oversight and reporting requirements for awarded grants.
     Part VIII describes the grant modification 
requirements and process.
    In addition to the provisions of this announcement, applicants 
should note that funding actions are subject to the policies priorities 
articulated in Attachment I of this notice, and any subsequent policy 
guidance.
    Applications for NEG funds may be submitted at any time. Awarded 
NEG funds may be expended during the months remaining in the Program 
Year in which the grant award is made plus the subsequent two Program 
Years. A Program Year is the twelve 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 and policies and priorities that 
apply to NEG projects. Generally, planned project durations should not 
exceed 24 months.

OMB Approval

    Consistent with the Government Paperwork Elimination Act, the 
information collection, including the application and the reporting 
form will be, 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 
provides the grant officer with the necessary information to be able to 
make

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consistent and objective funding decisions based on the stated funding 
request evaluation criteria. The quarterly reports' information 
collection assures accountability and measures actual project 
performance to date. DOL is committed to making a decision to approve 
or disapprove all submitted requests for funding, which includes an 
initial application and monetary grant modifications such as requests 
for incremental funding, within 30 working days from receipt of a 
complete and responsive request.
    These reporting requirements are approved by OMB under control 
number 1205-0439, expiring 1/31/2007. Send comments regarding this 
burden estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden to the U.S. Department 
of Labor, Office of National Response, Room N-5422, Washington, DC 
20210 (Paperwork Reduction Project 1205-0439).

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                                                                                                                                             Expected
                Reference                   Expected total            Frequency            Expected total     Avg. time  per response       burden\*\
                                            respondents\*\                                  responses\*\                                     (hours)
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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..................             38.0
ETA 9106.................................              150  1 per project...............              150  1.0 hour....................            150.0
ETA 9107.................................              100  1 per project...............              100  15 minutes..................             25.0
TAA certification report.................               50  1 per project...............               50  30 minutes..................             25.0
Reports: ETA 9104........................              150  quarterly per project.......              600  30 minutes..................            300.0
Grant modifications......................              140  1 per project...............              140  30 minutes..................             70.0
                                                                                                                                        ----------------
    Total Hours..........................  ...............  ............................  ...............  ............................            1,096
--------------------------------------------------------------------------------------------------------------------------------------------------------
\*\ Actual number will vary, because the information collection is required to obtain a benefit.


    Signed in Washington, DC on this 16th day of April, 2004.
Emily Stover DeRocco,
Assistant Secretary.

Attachment I--Training and Employment Guidance Letter No. 16-03

Employment and Training Administration, Advisory System, U.S. 
Department of Labor, Washington, DC 20210.
Classification: National Emergency Grants.
Correspondence Symbol: ONR.
Date: January 26, 2004.
    To: All State Workforce Agencies, all State Workforce Liaisons, all 
State Rapid Response Coordinators, all State Trade Coordinators.
    From: Emily Stover DeRocco, Assistant Secretary.
    Subject: National Emergency Grant (NEG) Policy Guidance.

1. Purpose

    To inform the state and local workforce investment system of the 
policies and priorities that will govern the award and use of the 
Secretary's discretionary National Emergency Grant (NEG) Dislocated 
Worker funds, pursuant to the Workforce Investment Act (WIA), Title I, 
Section 173, as amended.

2. References

     Workforce Investment Act (WIA), as amended
     Trade Adjustment Assistance Reform Act of 2002 
(Public Law 107-210), Sections 201, 202 and 203
     WIA regulations at 20 CFR Part 671
     Training and Employment Guidance Letter (TEGL) 
No. 14-00, Change 1, ``Guidance on the Workforce Investment Act (WIA) 
Management Information and Reporting System,'' dated November 19, 2001
     Training and Employment Guidance Letter (TEGL) 
No. 10-02, ``Use of National Emergency Grant Funds Under the Workforce 
Investment Act, as amended, to Develop Systems for Health Insurance 
Coverage Assistance for Trade-Impacted Workers,'' dated October 10, 
2002
     Training and Employment Guidance Letter (TEGL) 
No. 20-02, ``Use of National Emergency Grant (NEG) Funds Under the 
Workforce Investment Act (WIA), as amended, to Support Health Insurance 
Coverage Assistance for Trade-Impacted Workers,'' dated March 3, 2003

3. Background

    National Emergency Grants (NEGs) are discretionary grants awarded 
by the Secretary of Labor (the Secretary), pursuant to Section 173 of 
WIA, as amended. Funds are awarded to provide employment-related 
services for dislocated workers as authorized under WIA Section 173 and 
20 CFR part 671. Funds are reserved and made available for obligation 
by the Secretary under Sections 132 and 173 of WIA, as amended.
    Within the next few months, the Department will publish new 
application guidelines for NEGs. The new guidelines will reflect the 
changes made as a result of comments received following the Office of 
Management and Budget Paperwork Reduction Act clearance process. In 
conjunction with the issuance of these new guidelines, ETA will 
implement electronic processes for submitting and reviewing all NEG 
applications. Use of the electronic application will be required by all 
applicants for all NEG applications and modifications beginning July 1, 
2004 (Program Year 2004). The use of the electronic processes will 
facilitate a quicker review and processing of NEG applications. The 
policies articulated in this TEGL are in effect immediately for all 
application requests for NEG funds.
    The new guidelines and the electronic application are designed to 
achieve timeliness in the application and award of NEG funds to enable 
dislocated workers to receive employment-related assistance early in 
their transition period. However, the Department expects that 
unexpended formula Dislocated Worker program funds will be used to 
initiate services for workers impacted by mass layoffs and plant 
closures and, depending upon the amount of unexpended funds, may be 
sufficient to provide all transition assistance required by workers 
affected by such layoffs. In addition to the submission requirements 
contained in the application guidelines, eligible applicants must use 
the policies and priorities framework communicated in this issuance in 
determining the appropriateness of NEG funding to respond to a 
dislocation event and in developing the project design for a proposed 
NEG application.

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    The application guidelines will define the basic requirements for 
NEGs: eligible events, eligible applicants, project types, allowable 
use of funds, criteria for evaluating applications, and project 
management. This issuance does not generally repeat those requirements; 
rather, it provides the policy context for awarding NEG resources and 
provides the priorities and expectations of ETA in terms of the use of 
this important source of funding assistance.
    ETA is committed to supporting innovative strategies that will help 
dislocated workers, and the communities in which they live and work, 
recover economically from the effects of plant closures and mass 
layoffs. A primary strategy is building a demand-driven workforce 
system that integrates workforce investment activities with economic 
development initiatives. Strategies can include both short-term 
actions--such as responding to skills shortages--and longer-term 
actions--such as planning customized and other training strategies in 
support of business expansion and high-growth occupational employment. 
NEGs are a major tool in implementing these strategies. Another high 
priority is early intervention to enable workers to return to the 
workforce (including self-employment) at wages that are as close as 
possible to their layoff wages in order to help maintain workers' 
standard of living and promote the economic security of their 
communities.
    This issuance highlights priorities that the Department is using in 
the award of NEG funds. The Department recognizes, however, that there 
may be instances where flexibility will be necessary. Therefore, in 
order to minimize the potential impacts on the timeliness goal, ETA 
strongly encourages and expects that the appropriate Regional Office 
will be contacted when an application is being developed that is 
outside the scope of the funding priorities articulated in this 
issuance.

4. Policy and Priority Framework for the Use of NEG Funds

    a. Purpose of NEGs. NEGs are discretionary awards by the Secretary 
of Labor that are intended to temporarily expand service capacity at 
the state and local levels by providing time-limited funding assistance 
in response to significant dislocation events. Significant events are 
those that create a sudden need for assistance that cannot reasonably 
be expected to be accommodated within the on-going operations of the 
formula-funded Dislocated Worker program, including the discretionary 
resources reserved at the state level. NEG funds are not available to 
replenish general formula short-falls or fluctuations in the annual 
Dislocated Worker formula allotment, but must be used in response to 
specific dislocation events, and in accordance with the policies in 
this document (including formula expenditures). Maintaining adequate 
rates of expenditure of available formula funds on a program year-basis 
will be a major criterion in evaluating the need for NEG funding. These 
funds include those allocated to local areas as well as those reserved 
for both rapid response and statewide activities. (See Para. 4. m., 
below, for additional information.)
    b. Eligible Dislocation Events. NEG funds are available for 
significant dislocation events that arise from the effects of economic 
globalization, business fluctuations and unexpected events (e.g., 
disasters). Since workers will be eligible for services (upon receipt 
of layoff notice or company announcement) when an application is 
submitted, all projects are expected to enroll/register all 
participants within six months of a grant award.
    NEG applications covering the following dislocation events are 
accepted by ETA for consideration of NEG funding:
    (1) A single company layoff of 50 or more workers. Priority in 
funding will be given to applications that document the participation 
of a large enough group of workers to sustain a separately-funded 
project. Generally, projects that serve less than 50 workers should be 
funded with formula Dislocated Worker program dollars, but ETA will 
examine the sustainability of projects serving smaller groups on a 
case-by-case basis.
    (2) Multiple company layoffs, where the dislocations from each 
company impact 50 or more workers. Priority will be given to 
applications that demonstrate a sustainable project size. Generally, 
this standard will be deemed met with the documented planned 
participation of at least 50 workers from each qualified company. (See 
Para. 4.c., below, regarding layoffs at secondary firms and Para. 
4.b.(4) for community impact applications.)
    (3) Industry-wide layoffs from companies in the same industry as 
determined by the three-digit code level in the North American 
Industrial Classification System. Each layoff in an industry-wide 
application must have 50 or more workers unless the exception below is 
met. In order to ensure a consistent statewide approach, we expect to 
focus our funding of these projects on applications from state 
applicants. Priority will be given to applications that document the 
planned participation of 50 or more workers from each company of the 
identified companies when the affected workers are not in the same or 
geographically contiguous local workforce investment area(s). 
Exception: Where the dislocation events are in the same local workforce 
investment area--or geographically contiguous areas--one company must 
have a layoff of more than 50 workers, and other identified companies 
may have layoffs of less than 50 workers as part of the same 
application.
    (4) Community impact projects to assist workers in a local 
workforce investment area (primarily rural) where the employer base is 
primarily small employers and multiple small dislocations over a six 
month-period have a significant impact on the unemployment rate of the 
local workforce area, as determined by the state. In order to ensure a 
consistent statewide approach, we expect to focus our funding on 
applications from state applicants. For single area states, a local 
commuting area or labor market area should be used. Priority will be 
given to applications where an increase in the unemployment rate of 1 
percent has occurred in the affected local workforce area (or local 
commuter area or labor market area in single area states) over the 
previous six months. Each company and location must be identified as 
with other multiple company applications.
    (5) Trade dual-enrollment projects with identified single or multi-
company layoffs of more than 50 workers each, and where DOL has 
determined that workers were trade-impacted. The following policies and 
expectations apply to dual-enrollment applications:
    (a) The application and review process for dual-enrollment projects 
will include consideration of annual planning estimates for expenditure 
in the year of allotment as issued by the Department for the trade 
program. This will strengthen the state's ability to project needs and 
manage Dislocated Worker funds, and improve ETA's ability to evaluate 
the need for additional training funds for trade-certified dislocated 
workers.
    (b) The primary purpose of dual-enrollment projects is to provide 
trade-eligible dislocated workers with ``wrap-around'' services that 
are not available through the trade program, and state formula 
Dislocated Worker program funds are not sufficient to provide such 
services, including conducting a comprehensive assessment, developing 
individual re-employment plans, providing on-going case management, and 
providing supportive services (WIA core, intensive and supportive 
services).

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As described in Para. 4.m., below, we will take into account the 
state's success in meeting a 70 percent formula Dislocated Worker 
program expenditure rate when deciding whether to approve a NEG 
application.
    (c) NEG funds may also be requested to provide training when the 
state demonstrates that it has spent or will spend by the end of the 
trade program's fiscal year its annual allotment, reserved trade funds 
are not available, and the requesting state is meeting the 70 percent 
expenditure requirement for Dislocated Worker program formula funds 
(see Para 4.m., below). Consideration of planning estimates and 
expenditure rates, and state effectiveness at operating the trade 
program will enable DOL to address resource requests in a timely and 
rational manner.
    (d) Generally, NEG funds awarded for training will be used to fill 
a temporary gap in trade training funds to ensure that workers who have 
been appropriately assessed and need training to return to work will 
have access to such training as soon as possible after dislocation. 
Systems must be in place to seamlessly accommodate a change in the 
funding of training, as appropriate.
    (e) Before a state applies for NEG funds for training trade-
eligible workers, it must have evaluated its trade and WIA Dislocated 
Worker funds availability in the context of the above expenditure 
requirements. Any training proposed to be provided with NEG funds to 
trade-eligible workers must qualify under both the trade and the WIA 
programs.
    (f) All dislocated workers, including those for whom trade 
petitions have been filed, are required to have access to rapid 
response, core and intensive services (paid with WIA or other resources 
available to a state). This assistance should be available prior to a 
determination of trade certification to limit the period of 
unemployment. Once a worker has been determined eligible for trade 
assistance, those services authorized under the trade program (approved 
training, job search and relocation allowances and transportation) 
should be funded with trade funds to the extent those funds are 
available. Participants must sign-off on their individual reemployment 
plans (including training as appropriate). Trade Readjustment 
Allowances (income support) are also paid under the trade program. It 
is the responsibility of state and local program managers to manage WIA 
and trade program funds in an integrated manner to best meet the needs 
of the workers and in accordance with all applicable trade and WIA 
statutes, regulations and federal policies. Discretionary funds, 
including both the trade reserved funds and NEG resources, may be 
requested as needed, using application procedures.
    (g) In instances where a trade petition has been filed, but no 
determination has been made, such companies may be included in a NEG 
application indicating that a petition is pending. In addition, if 
dislocations impacting trade-certified workers also qualify for 
industry-wide or community impact projects, those application criteria 
will also apply, e.g., for a dual-enrollment application that also 
qualifies as industry-wide (where all layoffs are trade-impacted), an 
application would be required to have at least one company with 50 or 
more workers, but other companies could have less than 50 (under the 
exception criteria).
    (6) Disaster applications. These applications require verification 
that the Federal Emergency Management Agency (FEMA) has declared a 
disaster area eligible for public assistance. The primary purpose of a 
disaster project is to create temporary employment to assist with 
clean-up activities. The initial award will restrict the clean-up 
period to six months from the date of grant award until there is a 
subsequent modification (e.g., fully documented plan or other request) 
that justifies a longer clean-up period. A state may include in its 
fully-documented plan, or modification request, a component for 
employment-related services. This component of a disaster project is 
for workers involved in the clean-up work who will not return to their 
prior employment. The application must demonstrate that the 
participants need employment-related assistance to return to work and 
that non-NEG resources are not available to provide such services. The 
employment-related component must provide information on the number of 
participants that require assistance, the type of assistance and the 
duration and planned performance goals. The application must also 
include the outcomes of those who will not require employment-related 
assistance through the NEG project.
    (7) Trade Program--Health Coverage Tax Credit (HCTC) Infrastructure 
projects, pursuant to the authority in the Trade Act and WIA Section 
173(f) and appropriation of funds to help states develop an 
infrastructure in support of the implementation and operation of the 
HCTC or health coverage assistance through the NEG ``bridge'' program. 
Application requirements are outlined in TEGL 10-02, issued on October 
2, 2002.
    (8) Trade Program--Health Coverage ``Bridge'' projects, pursuant to 
the authority in the Trade Act and WIA Section 173(g) and appropriation 
of funds to help states provide health coverage assistance through 
qualified health plans for trade-certified workers who are Trade 
Readjustment Assistance (TRA) recipients (including those who would be 
if they had exhausted UI); Alternative Trade Adjustment Assistance 
(ATAA) wage-subsidy recipients; as well as certain Pension Benefit 
Guaranty Corporation (PBGC) recipients. The application guidelines are 
described in TEGL 20-02, issued on March 3, 2003, and additional 
guidance is forthcoming.
    c. Secondary Workers. When a regular NEG application is submitted 
for a primary company layoff of 50 or more workers (or multi-companies 
with 50 or more layoffs each) and the state makes a determination that 
there is a secondary worker layoff (including those with 50 or fewer 
workers being laid-off) where the primary layoff contributed 
importantly to the secondary layoff, the application may include the 
secondarily-impacted firm(s). The definition of secondary workers is 
contained in the NEG application guidelines. Tertiary workers will not 
be covered in a NEG project unless the dislocation qualifies for a NEG 
application on its own merits.
    d. NAFTA Secondary Workers. Although the Trade Act amended the 
trade program for secondarily-impacted workers so they can access the 
same services as primary workers, the Department's policy of covering 
NAFTA secondary workers through NEGs, including needs-related payments, 
remains in effect for those who are covered under a certification 
issued prior to November 1, 2002, and for whom a petition has not been 
filed under the new law.
    e. Rapid Response and Other Early Intervention Assistance. The 
value of early intervention assistance, including rapid response, in 
achieving positive employment and earnings outcomes for dislocated 
workers has been consistently demonstrated. ETA is committed to the 
principles of rapid response and other early intervention strategies 
for assisting dislocated workers as soon as they learn they are going 
to be laid off. For all regular (single-company, multi-company, 
industry-wide and community impact) and dual-enrollment projects, NEG 
applications are expected to reflect the results of the early 
intervention processes activated through a state's rapid response 
system.

[[Page 23056]]

    To maximize the effectiveness of early intervention strategies for 
dislocated workers, states are strongly encouraged to use the 
flexibility contained in WIA to provide additional rapid response 
resources to local areas (WIA Section 134(a)(2)(A)(ii)). At a minimum, 
funds should be available to commence development of individualized re-
employment plans and other required intensive and training employment-
related assistance as soon as dislocated workers become eligible for 
WIA assistance, i.e., upon receipt of a notice of layoff or 180 days (6 
months) prior to scheduled closure. Where state and local funds are not 
available (as reflected by expenditure levels), a NEG application 
should be submitted quickly to ensure funds are available as soon as 
possible.
    If a trade-petition is being filed, the full array of early 
intervention services should not be delayed until a petition 
determination has been made. When provided early intervention 
assistance, workers will be ready to participate in eligible trade 
program services if an affirmative finding is rendered by DOL or 
continue needed assistance under WIA (formula or NEG) if there is a 
negative petition finding.
    f. Linkage to Economic Development. The ``power of e-3'' is the ETA 
reference to the linkage of education, employment and economic 
development. Linkage with economic development initiatives is a key 
component for communities developing strategies to help workers, 
especially those workers affected by mass layoffs and plant closures. 
The development of any plan and request for NEG funding by a state or 
local community should be done in conjunction with economic development 
planning to support current and future economic growth in a community. 
Much of this planning can and should be done with rapid response and 
other resources, including any resources provided to states through the 
Economic Development Administration (EDA) at the U.S. Department of 
Commerce.
    g. Quality Customer Service. ETA expects that NEG project designs 
will provide time-efficient strategies that return workers to 
appropriate employment as quickly as possible to reduce the adverse 
impact of the dislocation event on the workers and the local economy. 
Applications will be evaluated for reasonableness of costs and planned 
outcomes and timeliness of planned assistance. When NEG funds are 
requested, it is expected that systems are in place or will be in place 
quickly to accommodate the needs of the workers, including having 
temporary personnel available to provide assistance when needed by the 
workers. Delaying the enrollments of eligible workers over a protracted 
duration of time due to staffing or other limitations is not an 
acceptable program design.
    NEG projects should take advantage of the pre-layoff eligibility of 
dislocated workers under WIA (i.e., as soon as an individual layoff 
notice is received or 180 days prior to a planned closure) and be 
designed to support employment and wage replacement goals focused on 
returning individuals to the workforce as soon as possible after 
layoff. Often, these workers possess high skills and are long-tenured 
and highly effective workers. Enhanced service strategies should be 
built into the project design for participants requiring more and 
longer assistance (such as for limited English-speaking populations or 
in severely impacted communities). At a minimum, project designs should 
be demand-driven so that workers are being trained for jobs with career 
and growth potential.
    h. Integrated Service-Delivery. NEG projects should be designed to 
make maximum use of assistance and resources available through One-Stop 
partners (including ``required'' and ``additional partners''), 
employers and other state and local organizations. (Under the Trade 
Act, the trade program is a ``required'' partner.) ``Silo-based'' 
service policies and procedures are not acceptable. Integrated 
policies, procedures and approaches will be reviewed and considered as 
part of the NEG application process.
    i. Reprogramming of NEG Funds. Federal appropriations law generally 
prohibits the redirection or reprogramming of funds to serve target 
populations not originally identified as part of an original grant 
award (change in scope) or the re-award of returned funds to another 
grantee, if such actions are executed after the year of appropriation, 
or after the Department's authority to obligate funds have expired. For 
instance, Program Year 2003 appropriated funds (which include FY 2004 
funds) may be reprogrammed until June 30, 2004, but not thereafter. To 
ensure that the Department has sufficient time to evaluate and act on 
such requests, grantees must manage the expenditure of NEG funds and 
take appropriate action to ensure effective use of the funds. Requests 
to reprogram excess NEG funds must be received by the Department no 
later than May 1 of the program year in which the NEG award was made. 
Therefore, generally, NEGs awarded in the last two months of a program 
year will not qualify for any reprogramming actions.
    j. Incremental Funding. To minimize any end-of-project under-
expenditure, applicants should expect that most NEG awards will be 
funded incrementally. In most cases, the initial increment will be for 
six months to enable a project to achieve full enrollment. The release 
of subsequent funding increments will be based on a demonstrated need 
for funds as evidenced by enrolled/registered participants and accrued 
expenditures. ``Accrued expenditures'' equal actual cash payments, plus 
the cost of services or goods that have been received or are being 
provided (e.g., the cost of a semester of tuition that has not been 
paid but participants are in training).
    k. Performance Management Accountability. ETA will issue separate 
guidance on expectations for outcomes for participants served with NEG 
funds. ETA is announcing policy and will be issuing reporting 
instructions to implement common performance measures for all federal 
training and employment programs. The common measures will include 
entered employment, retention and earnings gain. Beginning July 1, 
2004, the common performance measures will be implemented for NEG 
projects.
    l. Cost Per Participant. Part of the evaluation of ``reasonableness 
of costs'' will be a comparison of the average cost per participant in 
a state's formula Dislocated Worker program with the proposed cost in a 
NEG application, excluding disaster projects and the NEG ``bridge'' 
program. In making such an evaluation, ETA recognizes that a two-year 
project with a limited number of participants may incur a greater cost 
per participant than the average annual cost for formula participants 
whose costs may be captured in more than one program year.
    m. Formula Dislocated Worker Program Expenditures. The expected 
June 30 annual accrued expenditure rate (see Para. 4. j., above, for 
the definition of ``accrued expenditures'') for Dislocated Worker 
formula program funds when applying for NEG resources is 70 percent of 
``total available'' (prior year carryover plus annual allotment). A 
review of each state's success in meeting this rate will be conducted 
at the end of each program year and will be part of the review of a 
state's need for NEG funds as applications are received. Quarterly 
financial reports of formula Dislocated Worker program fund 
expenditures, as well as recent NEG project experience, will also be 
factors in determining fundability.
    n. Assistance to Military Personnel. Assisting military personnel 
with the

[[Page 23057]]

transition to the private workforce is a priority of both the 
Departments of Defense and Labor. However, except for BRAC-directed 
closures or realignments of military installations which involve 
significant dislocations, military personnel who are exiting military 
service are generally expected to seek and receive transition 
assistance through such programs using formula funds. This includes 
those who are completing their commitments as well as those who are 
being involuntarily, but honorably discharged. Generally, it is 
expected that the number of personnel is such that local formula funds 
are available to provide the transition assistance in coordination with 
veterans' programs available in nearly every community, in addition to 
the transition assistance provided by the military services and the 
Department of Labor's Veterans Employment and Training Service. 
Individuals being dislocated as a result of an announced military 
installation closure or realignment may be served with NEG funds 
pursuant to WIA Section 173(c)(2)(A).
    o. Assistance to Military Spouses. NEG funds may be requested to 
serve military spouses who qualify as dislocated workers, including 
those who were required to leave jobs to accompany military spouse 
members for the convenience of the Government. The number of 
individuals affected within a six-month period must be provided by the 
appropriate military branch, and any request for NEG funds must include 
documentation that demonstrates that formula funds are not adequate to 
provide the needed level of assistance. Other spouses who do not 
qualify as dislocated workers under WIA should be served with WIA adult 
program funds.
    p. Health Insurance Premiums. The Trade Act of 2002 amended WIA by 
adding Section 173(g), and appropriated funds to permit the use of NEGs 
to provide appropriate qualified health coverage assistance for 
eligible TAA (TRA) recipients, certain TAA individuals who have not 
exhausted UI benefits, ATAA wage subsidy participants, and certain PBGC 
recipients. Guidance was issued by the Department in TEGL 20-02 on 
March 3, 2003. However, based upon recent experience, further guidance 
is being developed and will be issued.
    ETA's policy is that the limited resources available for regular 
NEGs will not be awarded to pay for health insurance premiums for 
dislocated workers who do not qualify under the trade program. NEG 
supportive service funds may be used to pay for emergency medical 
treatment and needs-related payments--where authorized by local 
workforce investment boards for the Dislocated Worker formula program. 
This income support can be used by participants to pay for insurance 
premiums and other personal expenses.

5. Incomplete Applications

    As indicated above, ETA is committed to a shortened NEG application 
review and decision period through the use of an electronic application 
process. The electronic system will include edit checks to ensure that 
applications are complete. Incomplete applications will not be 
accepted. While this will not always assure that the document contains 
the information necessary to make funding decisions, we believe this 
will be an important step. In addition, prior to the implementation of 
the e-tool, in order to avoid unexplained delays in processing times, 
upon finding that an application is either incomplete (e.g., lacking 
SF-424, layoff/rapid response information, budgets, implementation 
schedules, etc.) or the application does not support the purpose being 
requested, ETA will send an e-mail to the applicant stating that the 
application cannot be considered for funding as submitted and will cite 
the deficiencies. Information to address the deficiencies must be 
transmitted to ETA by the official signatory. Submission of a complete 
and fully supported application will establish a new application date.

6. Other Terms

    The Department may negotiate and fund projects under terms other 
than those specified in this TEGL and NEG guidelines, where it can be 
clearly demonstrated to the Department that such adjustments will 
achieve a greater positive benefit for the workers and/or the 
communities being assisted (20 CFR 671.170(b)(5)).

7. Action

    NEG applications must be submitted in accordance with these 
policies and the application guidelines. Please ensure that local 
workforce investment boards, local elected officials, One-Stop Center 
operators, rapid response and trade coordinators and other appropriate 
staff involved in the submission of NEG applications or operation of 
NEG projects receive this issuance.

8. Inquiries

    Questions regarding this transmittal should be directed to the 
appropriate Regional Administrator or to Ms. Shirley M. Smith, 
Administrator, Office of National Response, at (202) 693-3500.

Attachment II--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 the National Emergency Grant (NEG) program 
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 levels. Applicants are strongly encouraged to submit 
applications as early as possible following official notification or 
occurrence 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 investment employment-related 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:
     Part I provides background about the purpose and 
use of NEGs.
     Part II describes eligibility, including 
eligible circumstances for funding, eligible entities for grant awards, 
and eligible individuals for assistance.
     Part III identifies the policies governing 
project management and design requirements for NEGs.
     Part IV provides an overview of the application 
submission requirements for each type of NEG project.
     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.
     Part VI describes alternative approaches to 
grant funding and the requirements associated with emergency funding 
requests and incremental funding actions.

[[Page 23058]]

     Part VII describes the follow-up planning, 
oversight and reporting requirements for awarded grants.
     Part VIII describes the grant modification 
requirements and 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 is establishing an electronic process that will 
support both timely submission of applications for funding, in relation 
to worker eligibility for assistance, and timely processing of such 
applications. When the electronic system becomes operational it must be 
used to submit applications for NEG funding. Procedures for accessing 
and guidance for using the electronic system will be provided to 
eligible grant applicants through ETA's Regional Offices.
    Appendix B contains a directory of Regional Office contacts.
    Applications for NEG funds may be submitted at any time. Awarded 
NEG funds may be expended during the months remaining in the Program 
Year in which the grant award is made plus the subsequent two Program 
Years. A Program Year is the twelve 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. 
Generally, planned project durations should not exceed 24 months.
    The application procedures, application review process, and project 
oversight and reporting requirements described in this notice are 
issued under the WIA regulations as 20 CFR 671.125.
    For further information on these guidelines, you may contact 
Shirley M. Smith, Administrator, Office of National Response at (202) 
693-3500. (This is not a toll-free number.)

Part I: Background

    National Emergency Grants (NEGs) are discretionary awards by the 
Secretary of Labor. NEGs are time-limited interventions intended to 
temporarily expand the service capacity at the state and local area 
levels by providing funding assistance in response to significant 
dislocation events. NEGs are not intended to meet shortfalls that may 
occur in formula funding to states for dislocated worker assistance. 
States are expected to make full use of WIA and Wagner-Peyser formula 
funds that are allotted for dislocated worker and adult assistance, 
including the use of funds reserved at the state-level for Rapid 
Response and statewide activities and funds allocated among all local 
areas.
    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 delayed funding 
actions (i.e., in relation to the time at which services are needed by 
eligible workers), unexpended funds caused by inaccurate estimates of 
the amount of funding needed to respond to the dislocation event, and 
delayed, unresponsive implementation plans for assisting the affected 
workers. Correcting these inefficiencies is a shared responsibility by 
the applicant/grantee and ETA. A request for NEG funds is expected to 
flow from an analysis of the need for reemployment assistance generated 
by an eligible event taking into account funds available in the state 
and local areas to respond to the need.
    The approach to NEG grant awards will be centered on quick 
turnaround initial funding actions where the following can be 
demonstrated:
     There is an eligible circumstance for funding, 
with a group of workers who are currently eligible to receive 
assistance.
     An early intervention strategy has been 
initiated.*
     Per-participant expenditure levels are 
consistent with the formula program experience in the proposed project 
service area.*
     There is a plan for timely enrollment of 
eligible workers into assistance and expenditure of requested funds.
     Overall project performance goals are consistent 
with supporting the achievement of the Secretary's goals for dislocated 
worker assistance.
     The state in which the project is to be 
implemented is maintaining an acceptable rate of usage of formula 
funding for dislocated worker assistance.*

    [Note: * These do not apply to Disaster and Trade Health 
Coverage Assistance projects.]

    The application submission requirements have been streamlined to 
focus on those information items and planning decisions that should be 
available and feasible within the time period in which some level of 
funding assistance is needed. DOL is committed to making a decision to 
approve or disapprove all submitted requests for funding, which include 
an initial application and monetary grant modifications such as 
requests for incremental funding, within 30 working days from receipt 
of a complete and responsive request. Note, however, that if the 
applicant chooses to submit an unsolicited revision to a previously 
submitted request that is undergoing review, the 30-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.
    Although the streamlined application requirements will be 
sufficient to make an initial funding decision, particularly under an 
incremental funding approach, this information will not be sufficient 
for determining if there is a reasonable and appropriate plan for 
implementing the project. Therefore, as a condition of the grant award, 
recipients will be required to develop a more complete project 
operating plan, including executed project operator agreements, line 
item budgets, staffing plans and participant registration and 
assessment information. The operating plan should be completed and 
transmitted to the Regional Office within 90 calendar days after the 
grant award. Information contained in the operating plan and project 
implementation experience will be used by ETA to determine the full 
amount of NEG funding needed to adequately respond to the dislocation 
event.

Part II: Eligibility

A. Eligible Circumstances for Funding

    NEG funds may be used to provide assistance in the following 
circumstances:
     Plant closures and mass layoffs affecting 50 or 
more workers at a single site of employment;
     Layoffs at several companies in a single local 
community including layoffs not meeting the single site criterion that, 
in total, have significantly increased the total number of unemployed 
individuals in the community. [This criterion will only apply at the 
local area level and the layoffs must be concentrated within the six 
months preceding the date of application.] Priority will be given to 
those applications where the layoffs

[[Page 23059]]

resulted in an increase of 1 percent in the local area unemployment 
during the preceding 12 months.
     ``Community'' is defined as a designated local 
workforce investment area (LWIA). In cases including single state 
workforce areas, ``community'' is defined as a labor market area:
     Layoffs at multiple locations with employers who 
are in the same industry sector (defined at the three digit code level 
in the North American Industrial Classification system), of which at 
least one company must have a layoff of more than 50 workers, and other 
individual companies may have layoffs of less than 50 workers as part 
of the same application;
     Layoffs at multiple locations (multi--company) 
that occur within a 4--month period and in which each layoff impacts 50 
or more workers;
     Closures and realignments of military 
installations;
     Emergencies or disasters that have been declared 
eligible for public assistance by the Federal Emergency Management 
Agency (FEMA); and
     Special assistance, including health insurance 
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.
    The provisions of WIA and the Regulations define four NEG project 
types:
     Regular, which encompasses plant closures, mass 
layoffs, multiple layoffs in a single community, multiple layoffs in an 
industry sector, other multi--company layoffs and closures or 
realignments of military installations.
     Disaster, which includes all natural and manmade 
disaster events that FEMA has declared eligible for public assistance. 
A declaration by the Governor of a state is not sufficient to receive 
funding assistance. A grant application may be submitted by the state 
if the Governor has requested such a declaration from the President but 
a grant award cannot be made without the appropriate FEMA declaration.
     Trade--WIA dual enrollment, which is intended to 
ensure that a full range of services is available to trade-impacted 
individuals where such services are not available through the regular 
Trade Adjustment Assistance program. To receive assistance with NEG 
funding, an individual is required to be eligible for dislocated worker 
assistance through WIA.
     Trade Health Insurance Coverage assistance, 
which provides special health insurance coverage assistance through 
partial payment of health insurance premium costs under approved plans, 
supportive services, and income assistance to targeted individuals 
defined in the Trade Adjustment Assistance Reform Act of 2002.
    For Regular projects, applicants may submit a single application to 
cover eligible layoffs at multiple employers and/or employment sites. 
The acceptable conditions for multiple event applications are:

--Where the state is the applicant, independently eligible events 
(i.e., layoffs of 50 or more) that have occurred within the state 
during the 120-day period (4 months) preceding the date of application;
--Where a local board, or consortium of local boards, is the applicant, 
all layoffs must be within the service area of the local board, or the 
area covered by the consortium agreement, and must meet the 50 or more 
threshold and have occurred within the 120-day period preceding the 
date of application;
--An application for an industry-wide project which can include layoffs 
of less than 50 as long as the firms are within the three digit NAIC 
sector cited in the application;
--Layoffs at supplier firms to a primary firm that meet the definition 
of primary and secondary firms in the Trade Act. The application must 
plan assistance to the primary firms, where the layoff must be 50 or 
more, and to the supplier firm(s), where the number of layoffs may be 
less than 50.

    When an application is being submitted for an industry-wide 
project, the applicant must indicate on the Project Synopsis that the 
eligible event is ``industry-wide.''

B. Eligible Entities for Grant Awards

    Entities that are eligible to receive a NEG grant for a Regular 
Project are:
    1. For Eligible Intrastate Projects:

--The designated state WIA program grantee agency
--A LWIA (and its fiscal agent)--
--A consortium of local boards for adjoining local areas
--A designated organization receiving WIA funding through the Native 
American Program provision of the Act
    2. For Interstate Projects:
--A consortium of local boards for adjoining local areas.
--A consortium of states.
    For consortium arrangements, one of the eligible entities must be 
designated to serve as the grant applicant and recipient. Consortium 
arrangements must be supported by a formal Memorandum of Understanding 
(MOU) that is executed among the participating local boards/states.
    DOL expects that states, as the entities responsible for ensuring 
the effective use of all funds within the state to respond to worker 
dislocations, will either assume the role of grantee or will work 
collaboratively with local board applicants to ensure an effective 
intervention strategy through Rapid Response and verify the need for 
the requested NEG funds to provide assistance to the eligible workers.
    Eligible applicants for Disaster projects, projects to provide 
special assistance to trade-impacted workers (i.e., both Dual 
Enrollment and Health Insurance Coverage), and industry-wide projects 
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 general categories of eligible individuals are:
    1. A dislocated worker under WIA Section 101(9) is:
    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 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.



[[Page 23060]]


    Note: Eligibility for other than Core Services requires an 
announcement by the employer that the facility will close within 180 
days, or an individual layoff notice.


    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, as defined by a 
state.
    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. 
(WIA Section 173(c)(A)(ii))
    3. An individual who is employed in a non-managerial 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. (WIA 
Section 173(c)(A)(iii)
    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. (WIA Section 
173(c)(A)(iv))
    5. For Disaster Projects, an individual who is temporarily or 
permanently laid off as a consequence of a disaster event qualifying 
for public assistance through a FEMA declaration. (WIA Section 
173(d)(2))
    6. For Disaster Projects, an individual who is long-term 
unemployed, as defined by the state. (WIA Section 173(d)(2))
    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 under the 
Workforce Investment Act, and is co-enrolled/registered in both trade 
and WIA.
    8. For Trade Health Insurance Coverage Assistance Projects (WIA 
Section 173(f) and (g):
    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 and qualified family members of the eligible individual;
    b. Certain recipients of pension benefits through the Pension 
Benefit Guaranty Corporation; and
    c. Recipients of wage subsidies in the Alternative Trade Adjustment 
Assistance Program.
    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 coverage &
                                                                            Dual enrollment         related
----------------------------------------------------------------------------------------------------------------
Dislocated Worker...........................            X             X   ..................  ..................
DoD/DoE Civilian Employee...................            X   ............  ..................  ..................
DoD Contractor Employee.....................            X   ............  ..................  ..................
Member of Armed Forces......................            X   ............  ..................  ..................
Temporarily Laid off as Result of Disaster..  ............            X   ..................  ..................
Long-term Unemployed........................  ............            X   ..................  ..................
Covered by a Trade Certification and          ............  ............                  X   ..................
 Eligible for WIA...........................
Eligible for Trade Readjustment Assistance..  ............  ............  ..................                  X
Qualified Dependent of Eligible Trade-        ............  ............  ..................                  X
 Impacted Worker............................
Certain PBGC Pension Recipient..............  ............  ............  ..................                  X
ATAA Wage--subsidy Recipient................  ............  ............  ..................                  X
----------------------------------------------------------------------------------------------------------------

    The number of affected workers cited in an application is limited 
to those individuals who meet one of the dislocated eligibility 
criteria at the time the application is submitted. NEG funds will not 
be provided for projected or anticipated layoffs. They must have been 
announced through WARN or other public announcement. As noted in Part 
VIII: Grant Modifications, grants may be modified to include subsequent 
layoffs that are within the scope of the approved grant award.

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 states, 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 or a grant award document.

B. Cost Limitations

    Cost limitations for administrative and related project management 
expenditures (e.g., monitoring, technical assistance) shall apply to 
all NEG grant awards. These limitations shall apply to actual 
expenditures at the end of the grant. In general, a limit of ten (10) 
percent of total costs excluding the costs of needs-related payments 
(and, as applicable, health insurance coverage payments) will apply to 
all NEG projects. The WIA definition of administrative costs shall be 
used in

[[Page 23061]]

determining compliance with the cost limit on all NEG grants.
    On projects where services are being provided through one or more 
local area project operators, the ten percent cost limit will apply to 
project operator expenditures. In these projects the grantee may retain 
an additional amount to perform grant-level management and oversight 
functions. The amount to cover basic administrative functions such as 
record-keeping and reporting, procurement, audit, and general grant 
management activities should not exceed 1.5 percent of the total 
funding provided to project operators, excluding the costs of needs-
related payments. This will not apply to the temporary employment 
component of Disaster projects.
    Any costs associated with administering a system of needs-related 
or health insurance coverage payments must be separated identified in 
the application budget and justified in the narrative.

C. Indirect Costs

    If an indirect cost rate is applied in calculating some of the 
costs at the grantee level, 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. Indirect costs cited in the application should only be those 
that apply to the grantee. The grantee will be responsible for 
verifying the appropriate documentation to support any indirect rates 
that are applied in calculating costs at the project operator level. 
Indirect costs are a subset of total project costs; they may include 
administrative and program costs. Cost limitations apply to total 
project costs and are not applied separately to direct and indirect 
costs.

D. Early Intervention

    For Regular and Dual Enrollment 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. The early 
intervention process should include the use of formula funds to 
initiate services to eligible individuals. When formula funds have been 
used to provide services (excluding Rapid Response) to the eligible 
target group prior to grant award and the state is demonstrating an 
acceptable rate of expenditure of available formula funds (see Part 
III. K), the Grant Officer may authorize the use of NEG grant funds to 
reimburse the cost of such services.
    However, pre-award costs will only be approved for appropriate 
expenses incurred from the date on which planned participants became 
eligible for services, and in no case will be approved for costs 
incurred before the date that is 120 calendar days prior to the date of 
receipt of the application by USDOL/ETA. Appropriate expenses for pre-
award costs will be limited to the costs of direct costs for 
participants (core and intensive services, training and supportive 
services). Pre-award costs will not be approved for administrative or 
needs-related payment costs. Pre-award costs will not apply to Disaster 
or Trade Health Insurance Coverage projects.
    For Regular projects, ETA expects that applications for NEG funding 
will be submitted within 120 calendar days (preferably sooner) of the 
date on which the target group of workers included in the application 
become eligible for assistance, or the dislocation event(s). In 
general, the initiation of early intervention activities will be a pre-
condition for the award of NEG funds for Regular and Dual Enrollment 
projects. At a minimum, these activities should include contact with 
the affected workers and collection of information on the assistance 
needs of the workers.
    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.

    [Note: Applicants will be expected to actively pursue 
alternative methods of contact with workers and initiation of 
services in those cases where employer support and cooperation is 
limited or lacking.]

    Applications for Disaster projects should be submitted within 30 
calendar days of the occurrence of the disaster event. As discussed in 
Part VI of these guidelines, emergency applications (whether for a 
Regular or Disaster project) should be submitted within 15 calendar 
days of the FEMA declaration for public assistance eligibility.

E. Allowable Activities and Services

    NEG funds may be used to provide services of the type described in 
Sections 134(d)(2), (3), (4) and (e)(2) and (3) of WIA, and pursuant to 
20 CFR 671. Funds may not be used to pay for any costs of Core 
Services, as described in 134(d)(2), which have already been budgeted 
under available formula funds.
    For Disaster projects, NEG funds may also be used for temporary 
disaster employment not to exceed six months (or 1,040 hours) for any 
single event; to help provide food, clothing, shelter and related 
humanitarian services; and to perform demolition, cleaning, repair, 
renovation and reconstruction of damaged and destroyed public 
structures, facilities and lands, located within the designated 
disaster area, as defined in the grant award document. A component may 
also be designed for employment-related assistance for participants who 
require help in returning to the workforce after completion of 
temporary employment.
    For Trade Health Insurance Coverage Assistance projects, funds may 
be used for trade health insurance infrastructure and to pay health 
insurance premiums for certain trade-certified dislocated workers 
enrolled in a qualified health care plan as provided for in WIA 
Sections 173 (f) and (g). Additional guidance on the use of funds for 
these activities have been provided.

F. Project Design and Service Operations

1. Regular Projects
    Policies regarding receipt of supportive services and needs-related 
payments will generally be consistent with the established policies and 
procedures of the local board(s) in the area in which the project is to 
operate as required in 20 CFR 671.140(c). 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. For projects serving the same target 
population in more than two local areas, a policy may be developed 
based upon the combined policies of affected local areas as agreed to 
for an NEG project to ensure equitable services for a project's target 
population.
    Where variations in program (core, intensive and/or training) 
policies (e.g., training caps, duration of training, self-sufficiency 
requirements) 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 identified, explained and justified in the 
application narrative.
    Projects that will operate on a consortium basis will be expected 
to establish a common set of service policies that will apply to the 
full project service area. Grantees and project operators will be 
expected to involve the applicable local board(s) of any approved 
variations in service policies that will apply to a NEG project.
2. Disaster Projects
    The initial purpose of Disaster projects is temporary job creation 
to

[[Page 23062]]

provide clean-up, restoration and humanitarian assistance to 
communities that have been affected by a disaster event. Temporary 
disaster jobs are 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 generally 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. The wage cap does not assume that the 
individual is employed for the full six months or 1,040 hours. A higher 
hourly wage may be paid, as appropriate, for higher skilled positions 
as long as the wage limit is not exceeded on an individual participant 
basis. If a higher wage level limit for some participants is critical 
to the success of project clean-up efforts and cannot be accommodated 
within the above provision, the applicant may request a higher limit 
for the applicable positions from the Grant Officer.
    Priority in filling the temporary jobs should go to individuals who 
have been dislocated, either permanently or temporarily, as a result of 
the disaster event. Other eligible participants for disaster projects 
are dislocated workers as defined in WIA Section 101(9) and long-term 
unemployed individuals (as defined by the state) to fill jobs that are 
needed in the clean-up and recovery effort. Where permanently 
dislocated workers and long-term unemployed individuals are employed in 
temporary jobs on a Disaster project, and they need reemployment 
assistance to return to the workforce upon completion of the temporary 
jobs, the grantee may request to modify the grant to use awarded funds, 
or request additional funding, to provide appropriate intensive, 
training and supportive services, as provided for in the grant award 
document. The description of these services will be subject to all of 
the provisions that apply to a Regular project with the exception of 
the early intervention requirement and the company layoff data (see 
Part IV.B.2).
3. Dual Enrollment Projects
    The primary purpose of Dual Enrollment projects is to provide 
funding for employment-related assistance for trade-certified 
dislocated workers. Such assistance may include career counseling, case 
management and supportive services not authorized under the Trade Act. 
Also, under certain circumstances, funding may be awarded to provide 
training, as specified in a grant award document. Trade-certified 
workers receiving assistance under a NEG must be dual enrolled in both 
the trade program and WIA, in accordance with the requirements of both 
programs.

G. Reasonableness of Costs

    For Regular and Dual Enrollment projects, and the workforce 
investment employment-related component of Disaster projects, the 
planned per participant cost will be expected to be within a reasonable 
range of the actual end-of-year average cost per participant for 
formula-funded dislocated worker activities in the planned service area 
during the most recent completed Program Year, or the state average if 
the project is designed to cover multiple local areas. The actual 
formula program cost per participant should equal the total 
expenditures during the Program Year divided by the total number of 
registrants reported for the PY. This actual cost per participant level 
must be entered on the Project Synopsis form in the application. ETA 
will provide a benchmark level for ``reasonable range'' through 
separate policy guidance.

H. Integration with Other Resources

    Regular and Dual Enrollment projects should be designed to make 
maximum use of assistance available through One-Stop partners, 
employers, and other local organizations. In addition, grantees will be 
expected to make a maximum effort to assist each project participant 
with applying and qualifying for available sources of financial 
assistance, consistent with the provisions of Section 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, 
as partners in the One-stop system. Receipt of NEG funds to provide 
services to TAA eligible workers will be predicated on the existence of 
such procedures. However, NEG funds cannot be used to provide 
assistance to any individual who is not eligible as a dislocated worker 
under the provisions of WIA. The exceptions are the special eligibility 
categories for individuals to receive assistance under Trade Health 
Insurance Coverage infrastructure and bridge NEG projects, as 
authorized in the Trade Adjustment Assistance Reform Act of 2002 and 
its amendments to WIA.
    Further, the use of NEG funds for training and supportive services, 
including relocation assistance, will generally be subject to the 
limitations and requirements delineated in WIA and regulations, 
including approved training provider lists and the use of Individual 
Training Accounts, or as specified in the grant award document.

J. Performance Outcomes

    As discretionary grant awards by the Secretary, NEG projects must 
be designed to achieve performance outcomes that support the 
performance goal commitments by the Secretary under the Government 
Performance and Results Act (GPRA). ETA will provide target performance 
levels for NEG projects through separate policy guidance. Beginning 
July 1, 2004, NEG projects will be subject to the common measures for 
employment and training programs. Participants in temporary disaster 
jobs are expected to receive necessary assistance to return to the 
workforce.

K. Use of Available Formula Funds

    For Regular and Dual Enrollment projects, and the workforce 
investment employment-related services component of Disaster projects, 
applicants must demonstrate that they are maintaining an adequate rate 
of expenditure of funds provided to the state through formula 
allotments. This will include all dislocated worker program formula 
allotment funds, including those reserved by the state for Rapid 
Response and statewide activities. [Note: ETA has provided flexibility 
to states in transitioning funds between the dislocated worker program 
and the adult program under WIA. It is assumed that states and local 
boards applying for NEG funds will have utilized transfer authority 
appropriately.] The rate of expenditure standard will be communicated 
by ETA through separate policy guidance. This requirement will not 
apply to the temporary disaster employment component of a Disaster 
project or to a Trade Health Insurance Coverage Assistance project.

L. 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 covering the 
same company dislocation. 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.
    On projects with multiple local project operators, 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

[[Page 23063]]

executed by all of the local boards involved. The grant will be 
structured to operate on a full service area basis. The program 
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 or local boards and the agreement will need 
to designate one of the entities to be the grant recipient, as well as 
identify the service policies and procedures that will apply. 
Supportive service policies and needs-related payment policies for NEG 
projects will be consistent with 20 CFR 671.140(c); however, where more 
than one local area is providing assistance through a NEG for the same 
target population, project operators may propose to implement policies 
that combine or use the policies of one local area, to ensure equitable 
treatment for workers from the same layoff.
    Where a project will operate in more than one local area, the 
grantee will have the authority to modify project operator agreements 
and move funds among designated project operators consistent with where 
eligible workers are seeking services. Where this action changes the 
scope of responsibility for individual project operators, the grantee 
should submit a revised Project Operator Data Form to USDOL/ETA. This 
action is for information purposes and will not constitute a formal 
grant modification request (see Part VIII of these guidelines for 
conditions requiring a grant modification). This authority is further 
limited to cases where a grant modification would not be required.

M. Veterans' Priority

    National Emergency Grants are subject to the provisions of the 
``Jobs for Veterans Act,'' Public Law 107-288, which provides priority 
of service to veterans and certain of their spouses in all Department 
of Labor-funded job training programs. To obtain priority of service, a 
veteran must meet the program's eligibility requirements, and for NEG 
projects must be a dislocated worker from the approved target 
population of a grant. Since NEG applications should be developed to 
assist all eligible individuals who are in need of assistance from the 
target population, this provision should not significantly change the 
planning and operation of NEG projects.

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. Under the 
electronic system, 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 goals, and historical and planned cost per participant 
levels.
    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, and 
number of planned participants.
    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. Except in disaster emergency situations, it is expected that 
Project Operators will have been identified at the time the application 
is submitted, 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 enrollments in activities), and use of 
funds (e.g., planned expenditures by type of program activity, 
administration).
    Where approval of pre-award costs is being requested in the 
application, a separate column on the Planning Form should be used to 
identify the pre-award service costs.
    6. Narrative. This section facilitates the applicant being able 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 four months 
prior to the date of submission of the application, and additional 
information is required to document that workers are in need of and 
available for employment-related assistance.
--The application is being submitted to address ``community impact 
layoffs.'' The narrative must provide specific information in relation 
to the requirements for meeting this criterion (see the definition in 
Part II. A).
--The number of affected workers that will be enrolled as participants 
is a higher percentage than has been historically served through NEGs 
(i.e., 50 percent).
--The planned average cost per participant on the project is outside a 
reasonable range of the actual average cost per participant for 
formula-funded dislocated worker activities, as appropriate, for the 
most recent completed Program Year.
--There are participants planned to receive NRPs, which requires 
explaining how the planned number of recipients and the NRP cost per 
participant were determined.
--Indirect costs are included in the application, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--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 and/or Other costs are included, which requires a 
delineation of the components (e.g., staffing, travel, facilities) and 
amounts of such costs. The applicant is free to include narrative 
explanations of other special factors, but the narrative should be 
concise and informative in relation to the application evaluation 
criteria.

    7. Funds Usage. This information will not be required where the 
state in which the applicant is located expended a satisfactory level 
(see Part III.K) of the available formula funds in the most

[[Page 23064]]

recent completed Program Year and is on target to expend a satisfactory 
level of the available formula funds for the current Program Year, 
based on quarterly expenditure reports submitted to USDOL/ETA (i.e., 
the ETA 9076 B and F).
    Where this criterion cannot be met, the applicant will need to 
demonstrate through more complete and current financial information 
that it will expend a satisfactory level of available funds in the 
current Program Year by the end of the Program Year. This information 
should be included as an attachment to the grant submission. 
Information should present the financial status through the most recent 
month in the Program Year for which information is available and should 
include, at a minimum, total available funds, accrued expenditures to 
date, committed but unexpended funds in ITAs of currently enrolled 
participants, and the amount of the unexpended ITA funds that are 
expected to be expended by the end of the Program Year. This 
information should be presented separately for each local area that is 
included in the proposed service area for the project and for the funds 
reserved by the state for Rapid Response and statewide activities.

B. Disaster Projects

    An initial application for a Disaster project should only address 
the temporary job creation component. Although workforce investment 
employment-related services may be provided to project participants who 
need them following employment in the clean-up, restoration and 
humanitarian assistance effort, the fully documented plan or a separate 
modification request to use NEG funds to provide these services will be 
required, as described in the grant award. This submission should occur 
at the point in time at which an adequate assessment of the need for 
workforce investment employment-related assistance has been completed 
(generally no more than 4-6 months after the initial grant award). 
Where this request includes approval for additional funding for the 
project, it will require a separate approval by the Secretary. The 
following identifies the submission requirements for each of these 
requests:
1. Initial Request: Temporary Disaster Jobs
    a. Completed and signed SF 424-Application for Federal Assistance. 
This form is the required application for federal funds. Under the 
electronic system, 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. The requested 
funds on the form should apply only to the temporary job creation 
component of the project.
    b. 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, and contact information. This form includes an entry for 
the FEMA declaration that identifies the event as eligible for public 
assistance, which 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. Entries will not be required for: 
Planned Cost per Participant, % of Planned Participants Receiving NRPs, 
Planned Entered Employment Rate, Actual Cost per Participant in Prior 
Program Year, and Planned Wage Replacement Rate.
    c. 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 Project Operators 
have been identified at the time of application. This information 
should be submitted as Project Operators are identified and agreements 
executed.
    Although most Disaster project applications will be submitted on an 
emergency basis, if an application is not submitted as an emergency 
request, it is expected that Project Operators will have been 
identified at the time of application, 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 enrollments in activities), and use of 
funds (e.g., planned expenditures by type of program activity, 
administration). For the temporary job creation component, the only 
allowable activities are ``Employed in Temporary Disaster Relief 
Assistance'' and ``Receiving Supportive Services.'' Allowable 
expenditure categories are ``Participant Wages,'' ``Participant Fringe 
Benefits,'' ``Supportive Services'' and ``Administration.''
    e. Narrative. This section facilitates the applicant being able to 
provide any explanations/justifications needed for entries on the above 
forms. Narrative explanations will be required in the following 
instances:

--There are planned positions where the per participant wage exceeds 
the limits established in these guidelines.
--Indirect costs are included in the application, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--Administrative and/or Other costs are included, which requires a 
delineation of the components (e.g., staffing, travel, facilities), and 
amounts of such costs.

    The applicant is free to include narrative explanations of other 
special factors, but the narrative should be concise and informative in 
relation to the application evaluation criteria.
2. Modification or Additional Request: Workforce Investment Employment-
Related Services for Disaster Project Participants
    Where a significant number of permanently dislocated and/or long-
term unemployed individuals have been temporarily employed in clean-up, 
restoration and humanitarian assistance activities, and there are not 
sufficient formula funds to provide needed assistance to transition 
them into permanent employment, the Department will consider a request 
to use approved but unneeded project funds, and/or a request for 
additional NEG funds, to provide reemployment assistance. It is 
expected that the grantee will make an assessment of this need sometime 
between the hiring of the individuals into the temporary jobs and the 
completion of the temporary employment. Thus, this request should 
generally be submitted four to six months following the grant award for 
the temporary job creation. The submission requirements are:
    a. If additional approved funding is being requested, completed and 
signed SF 424--Application for Federal Assistance. Entries on this form 
should indicate a revision to an existing grant to increase the 
approved funding and project duration. The entry in ``Descriptive Title 
of Applicant's Project'' should include the grant number for the 
initial award. The requested funding amount should be for the 
additional request only.
    b. 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 goals,

[[Page 23065]]

historical and planned cost per participant levels for workforce 
investment employment--related services, and contact information.
    c. Project Operator Data Form (ETA 9105). This form includes key 
contact and project scope information (e.g., number of participants, 
total budget, service area(s)) for each project operator. Project 
operators should be known at the time this request is submitted.
    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 enrollments in activities), and use of 
funds (e.g., planned expenditures by type of program activity, 
administration). Entries on this form should apply only to the 
participants, activities and expenditures for this component (i.e., 
should not include the information relating to the temporary job 
creation component, unless there is a need to modify previously 
submitted information for this component).
    e. Narrative. This section facilitates the applicant being able to 
provide any explanations/justifications needed for entries on the above 
forms. Narrative explanations will be required in the following 
instances:

--The planned average cost per participant is outside a reasonable 
range of the actual average cost per participant for formula--funded 
dislocated worker activities in the planned service area for the most 
recent completed Program Year.
--Either the planned entered employment rate or the planned average 
wage replacement rate is less than the established NEG performance 
goals.
--There are participants going to receive NRPs, which requires 
explaining how the planned number of recipients and the NRP cost per 
participant were determined.
--Indirect costs are included in the application, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--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 and/or Other costs are included, which requires a 
delineation of the components (e.g., staffing, travel, facilities) and 
amounts of such costs.

The applicant is free to include narrative explanations of other 
special factors, but the narrative should be concise and informative in 
relation to the application evaluation criteria. This should include 
information on the status of other participants who may have worked in 
the temporary jobs, e.g., returned to former employment, continued 
participation in the formula dislocated worker program, found other 
employment, etc.) It is expected that all disaster program participants 
will receive the assistance necessary, either through the formula 
program or through NEG assistance, to return to the unsubsidized 
workforce.

    f. Funds Usage. This information will not be required where the 
state in which the applicant is located expended a satisfactory level 
(see Part III. J) of the available dislocated worker formula funds `` 
and if the target group includes long--term unemployed, available adult 
formula funds--in the most recent completed Program Year and is on 
target to expend a satisfactory level of the available formula funds 
for the current Program Year, based on quarterly expenditure reports 
submitted to USDOL/ETA (i.e., the ETA 9076 B, E and F).
    Where this criterion cannot be met, the applicant will need to 
demonstrate through more complete and current financial information 
that it will expend a satisfactory level of available funds in the 
current Program Year by the end of the Program Year. This information 
should be included as an attachment to its grant submission. 
Information should present the financial status through the most recent 
month in the Program Year for which information is available and should 
include, at a minimum, total available funds, accrued expenditures to 
date, committed but unexpended funds in ITAs of currently enrolled 
participants, and the amount of the unexpended ITA funds that are 
expected to be expended by the end of the Program Year. This 
information should be presented separately for each local area that is 
included in the proposed service area for the project and for the funds 
reserved by the state for Rapid Response and statewide activities.

C. Trade--WIA Dual Enrollment Projects

    a. Completed and signed SF 424--Application for Federal Assistance. 
This form is the required application for federal funds. Under the 
electronic system, 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, and performance goals.
    c. 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, and 
number of planned participants.
    d. 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, it is expected that Project Operators will have been 
identified at the time that the application is submitted and the 
contact information on the form should be completed.
    e. Planning Form (ETA 9103). This form provides cumulative 
quarterly estimates on project scope (e.g., number of participants, 
exits), design (e.g., mix of enrollments in activities), and use of 
funds (e.g., planned expenditures by type of program activity, 
administration). Where approval of pre-award costs is being requested 
in the application, a separate column on the Planning Form should be 
used to identify the pre-award service costs.
    f. Narrative. This section facilitates the applicant being able to 
provide any explanations/justifications needed for entries on the above 
forms. Narrative explanations will be required in the following 
instances:

--No Rapid Response activities have been initiated.
--Some of the affected layoffs have occurred more than four months 
prior to the date of submission of the application, and additional 
information is required to document that workers are in need of and 
available for employment-related assistance.
--The number of affected workers that will be enrolled as participants 
is a higher percentage than has been historically served through NEGs 
(i.e., 50 percent).

[[Page 23066]]

--The planned average cost per participant on the project is outside a 
reasonable range of the actual average cost per participant for 
formula-funded dislocated worker activities, as appropriate, for the 
most recent completed Program Year.
--Indirect costs are included in the application, which requires 
identifying the following: cognizant approval agency, approved cost 
rate and base, and date of approval.
--Administrative and/or Other costs are included, which requires a 
delineation of the components (e.g., staffing, travel, facilities) and 
amounts of such costs.

    The applicant is free to include narrative explanations of other 
special factors, but the narrative should be concise and informative in 
relation to the application evaluation criteria.
    f. TAA Certification Report. The applicant must include, as an 
attachment to its grant submission, information which identifies the 
trade certified petition number(s) for the workers included in the 
target group for the project. In cases where a petition has been filed 
but the certification is pending, identify the trade petition number 
and the date the petition was filed. This file must also include a 
description of the Rapid Response provided to each of the cited trade 
petition situations.
    g. Funds Usage. This information will not be required where the 
state in which the applicant is located expended a satisfactory level 
(see Part III. J) of the available dislocated worker formula funds in 
the most recent completed Program Year and is on target to expend a 
satisfactory level of the available dislocated worker formula funds for 
the current Program Year, based on quarterly expenditure reports 
submitted to USDOL/ETA (i.e., the ETA 9076 B and F).
    Where this criterion cannot be met, the applicant will need to 
demonstrate through more complete and current financial information 
that it will expend a satisfactory level of available funds in the 
current Program Year by the end of the Program Year. This information 
should be included as an attachment to its grant submission, and 
include, at a minimum, the current status (i.e., through the most 
recent month in the Program Year for which information is available) of 
available funds for the Program Year, accrued expenditures to date, 
committed but unexpended funds in ITAs of currently enrolled 
participants, and the amount of the unexpended ITA funds that are 
expected to be expended by the end of the Program Year. This 
information should be presented separately for each local area that is 
included in the proposed service area for the project and for the funds 
reserved by the state for Rapid Response and statewide activities.

D. Trade Adjustment Assistance Projects (WIA Section 173(f) and (g): 
Health Insurance and Related Assistance

    These projects are limited to assistance to eligible individuals as 
identified in the Trade Adjustment Assistance Reform Act of 2002. These 
NEG funds are primarily:

--To pay for 65 percent of the advance costs of health insurance 
premiums for eligible individuals in a ``bridge'' program in 
coordination with the Internal Revenue Service's Health Coverage Tax 
Credit (HCTC) program, as provided for in Section 173(g) of the 
Workforce Investment Act, as amended by the Trade Adjustment Assistance 
Reform Act of 2002.
--To pay for health insurance infrastructure as needed by states to 
implement the system. Instructions for applying for NEG funds to pay 
the costs of allowable system-building activities under Section 173(f) 
have been separately issued in Training and Employment Guidance Letter 
(TEGL) 10-02; instructions for the bridge program have been issued in 
TEGL 20-02, and further guidance is pending.
    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 enrollments in activities), and use of 
funds (e.g., planned expenditures by type of program activity, 
administration).
    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:

--Indirect costs are included in the budget, which requires identifying 
the following: cognizant approval agency, approved cost rate and base, 
and date of approval.
--Administrative costs related to processing payments for qualified 
health insurance coverage 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 and/or Other costs are included, which requires a 
delineation of the components (e.g., staffing, travel, facilities) and, 
amounts of such costs.
    The applicant is free to include narrative explanations of other 
special factors, but the narrative should be concise and informative in 
relation to the application evaluation criteria.
    e. TAA Certification Report. The applicant must include, as an 
attachment to its grant submission, information which identifies the 
trade certification number(s) for the workers included in the target 
group for the project. In cases where a petition has been filed but the 
certification is pending, identify the trade petition number and the 
date the petition was filed.

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

[[Page 23067]]

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, as discussed earlier:
    a. The planned average cost per participant for the project is 
within a reasonable range of the actual cost per participant reported 
for the prior Program Year.
    b. The percentage of planned participants receiving needs-related 
payments (NRPs) in the project and the NRP cost per participant are 
justified in terms of formula program experience, or UI level for the 
target group proposed in NEG application.
    c. The indirect costs are justified by identifying: (1) The 
approved indirect cost rate and base; (2) the cognizant approval 
agency; and (3) the date of the approval.
    d. 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.
    e. Total administrative and project management costs are within the 
cost limitations at both the state and local project levels.
    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 the project within 180 
days of grant award, i.e., the implementation schedule shows all 
enrollments by the end of the first six months of project operation or 
an explanation as to why this is not feasible.
    b. All planned enrollments in training occur such that training can 
be completed within the project performance period.
    c. Cumulative rates of expenditures quarter-to-quarter are 
reasonable given the cumulative level of enrollments for those: 
receiving intensive services, enrolled in training, receiving 
supportive services, and/or receiving needs-related payments, as 
applicable.
    5. Adequacy of Planned Performance: To verify that planned 
performance for NEG projects is appropriate identify that the:
    a. The planned levels of performance on each applicable performance 
measure are consistent with the established NEG performance goals; 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 help meet the needs of the workers 
covered in the application.
    a. Available information indicates that the state, or applicant, is 
maintaining an acceptable rate of expenditure of available WIA and 
Wagner-Peyser formula funds.

B. Disaster Projects

    [The following criteria will apply to the initial request for funds 
for temporary disaster jobs to provide clean up, restoration and 
humanitarian assistance. A modification to provide workforce investment 
employment-related services to project participants will be evaluated 
by the same criteria used for Regular projects, except for the early 
intervention requirement.]
    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 policies:
    a. Information in the application is consistent with the statutory 
employment duration limitations and expected wage limit on temporary 
employment activities.
    b. 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.
    c. Total administrative costs are within the cost limitation.
    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.

C. Trade--WIA 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. Trade 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. 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 
applicable federal requirements and the state and local policies in the 
proposed project area(s):
    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. Total administrative costs are within the cost limitation.
    4. Adequacy of Planned Performance: To verify that planned 
performance on NEG projects appropriate.
    a. The planned levels of performance on each applicable performance 
measure consistent with the established NEG performance goals; OR
    b. The application includes specific employment barriers-related 
information on the project's target group to justify a lower level of 
performance.
    5. Timeliness of Assistance: To ensure that project implementation 
will reflect timely assistance to affected workers, and 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 the project within 180 
days of grant award.

[[Page 23068]]

    b. All planned enrollments in training (as authorized by grant 
award) occur such that training can be completed within the project 
performance period.
    c. Cumulative rates of expenditures quarter-to-quarter are 
reasonable given the cumulative level of enrollments for each of: 
receiving intensive services, enrolled in training, and receiving 
supportive services.
    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 has been committed to provide the same services 
to the same target group.
    b. Available information indicates that the state is maintaining an 
acceptable rate of expenditure of available formula and trade training 
funds.

D. Trade Health Insurance Coverage and Related 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. Trade 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; and (3) the date of the approval.
    b. Total administrative costs, exclusive of health coverage payment 
processing costs, are within the cost limitation.
    c. 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. 
Applicants should assume that all NEGs will be funded incrementally. In 
addition, applicants may submit a request for NEG funding on an 
emergency basis. The conditions associated with each of these are 
described in the following sections.

A. Emergency Funding

    Any event that qualifies for a Disaster project can be considered 
an emergency, if submitted within 15 days of FEMA public assistance 
declaration. A dislocation where no advance notification of layoff was 
provided to workers can also be considered an emergency. In emergency 
situations, the applicant may submit a streamlined application. An 
emergency application must be submitted within 15 calendar days of the 
emergency, unless logistical barriers (e.g., damaged communication 
systems resulting from a disaster event) prevent submission within this 
timeframe.
    The following minimum submission requirements shall apply to an 
emergency 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)

    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)

    Where an emergency application is approved for funding, the 
applicant must submit a full application (i.e., consistent with the 
specifications in Part IV) within 60 calendar days of the date of the 
grant award. The SF 424 included in the full application submission 
should indicate a revision to an existing grant. Generally, no more 
than one-third of maximum approved funds will be released as a result 
of emergency applications.

B. Incremental Funding

    As noted previously, applicants should expect that all NEG awards 
will be funded incrementally. 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, a request(s) for the balance of needed funds, as supported by 
enrollments and expenditures. The maximum approved ``up to'' amount is 
not a commitment on the part of the Department to release the full 
amount when such funds are not documented as needed.
    Requirements for additional funding increments will be specified in 
the grant award letter. For most projects, receipt of additional 
approved funding will be based on achieving a level of project 
implementation where a justifiable projection of additional funds 
needed to complete the project can be developed. This will generally 
occur when all planned participants have been enrolled and assessed, 
training and supportive service obligations are known, all proposed 
project staff are on-board, and there is 2-3 months of actual operating 
expenditure information. The follow-up increment(s) will be awarded 
based on submission of a request to release approved but not yet 
awarded funds by the grantee, and enrollments and expenditures support 
the need for release of additional funds.
    The number of funding increments will be determined by the ability 
to develop a confident projection of full funding needs, whether there 
have been prior performance issues with the grantee or the project 
operator(s), or where the grantee and/or project operators do not have 
previous experience with NEGs or with projects of the size or 
complexity of the one proposed in the application. Prior performance 
issues can include: Participant and/or expenditure levels, performance 
outcomes, and compliance problems in project implementation. Resolution 
of applicable compliance or technical assistance issues will be a 
condition of the grant award and a pre-condition for receipt of 
additional funding increments.

Part VII: Post-Grant Award Requirements

A. Follow-up Planning Requirements

    Each grantee will be required to develop a Project Operating Plan 
to reflect the approved project design and funding parameters in the 
grant award. The Project Operating Plan must be completed within 90 
calendar days following grant award and be transmitted to the Regional 
Office upon completion. In cases of emergency grant awards, the Project 
Operating Plan will be due 60 calendar days following approval of the 
full application.
    The Operating Plan must include the following elements:
1. Regular Projects
--Updated information since submission of the application that is not 
required in a grant modification:
--The layoff schedules (i.e., dates and number of affected workers) for 
all approved target group employers.

[[Page 23069]]

--Status and results of all required Rapid Response activities, as 
applicable.
Copies of signed agreements with each proposed Project Operator, 
including:
--A completed planning form (ETA 9103).
--A line item budget specifying costs for staff salaries and fringe 
benefits, staffs travel, facilities and communications, supplies, 
equipment, assessment and instructional materials, training, supportive 
services, indirect costs, Needs-related Payments, and administration of 
NRPs. Costs must be delineated between administrative and program 
costs.
--A staffing plan that describes proposed staffing by job title, full-
time equivalent staff to be assigned, salary, and benefits rates for 
each staff position.
--Listing of all sites and organizations that will provide services to 
participants, including a description of service coordination 
arrangements with One-Stop Center operators and partners.
--Summary profile of the reemployment barriers that have been 
identified among the target group of participants and description of 
the implications of the profile on the project service design.
--Description of the job placement strategy for the project, including 
services to be provided to both participants and employers.
--Copy of local area service policies `` specifically training, 
supportive services and NRPs--that will be used on the project, as 
authorized to be modified by the grant award.
--Description of the role to be played by the local Workforce 
Investment Board(s) in management and oversight of the project.
--Description of the monitoring responsibilities and procedures that 
will be followed by the grantee.

    If the grantee has requested administrative and project management 
funds in excess of the cost limitation,
--A workplan, line item budget and staffing for the activities to be 
undertaken.
2. Disaster Projects (Temporary Employment Component)
--Description of the coordination between FEMA (and other agencies, 
such as HUD and HHS) and the project including what services each 
entity is contributing towards the recovery needs of the affected area.
--Updated information on all community planning activities completed to 
date.
--Status of participant recruitment activities.
--Copies of signed agreements with each proposed Project Operator, 
including:
--A completed planning form (ETA 9103).
--A line item budget specifying costs for staff salaries and fringe 
benefits, staffs travel, supportive services, indirect, needs-related 
payments, and administration of NRPs. Costs must be delineated between 
administrative and program costs.
--A staffing plan that describes proposed staffing by job title, full--
time equivalent staff to be assigned, salary, and benefits rates for 
each staff position.
--Worksite Plans detailing all planned worksites, by county, and 
including:
--Specific jobs to be performed and wage levels for each;
--Number of supervisors/crew leaders and ratio of supervisors/crew 
leaders to workers;
--Employer of record for the workers;
--Description of worksite training provided to workers;
--Identification of special equipment required to perform work and 
source of funding for the equipment;
--Description of the responsibilities for paying wages and the controls 
for ensuring participant time limits are complied with;
--Description of policies governing supportive services to 
participants; and
--Description of the monitoring responsibilities and procedures that 
will be followed by the grantee.
3. Trade-WIA Dual Enrollment Projects
--Updated information since submission of the application that is not 
required in a grant modification:
--The layoff schedules (i.e., dates and number of affected workers) for 
all approved target group employers.
--Status and results of all required Rapid Response activities, as 
applicable.
--Description of policies governing:
--Training services (if applicable), and
--Supportive services, including relocation assistance.
--Description of responsibilities and procedures for:
--Participant assessment,
--Participant employment planning, and
--Participant case management.

    Where different state organization entities are responsible for 
administering the TAA and WIA programs:

--A description of the procedures that are being used to co-enroll and 
integrate funding sources into a single plan of assistance to project 
participants.
--Copies of signed agreements with each proposed Project Operator, 
including:
--A completed planning form (ETA 9103).
--A line item budget specifying costs for staff salaries and fringe 
benefits, staff travel, facilities and communications, supplies, 
equipment, assessment and instructional materials, training, supportive 
services, indirect, needs-related payments, and administration of NRPs. 
Costs must be delineated between administrative and program costs.
--A staffing plan that describes proposed staffing by job title, full-
time equivalent staff to be assigned, salary, and benefits rates for 
each staff position.
--Listing of all sites and organizations that will provide services to 
participants, including a description of service coordination 
arrangements with One-stop Center operators and partners.
--Summary profile of the reemployment barriers that have been 
identified among the target group of participants and description of 
the implications of the profile on the project service design.
--Description of the job placement strategy for the project, including 
services to be provided to both participants and employers.
--Description of the monitoring responsibilities and procedures that 
will be followed by the grantee.

    If the grantee has requested administrative funds in excess of the 
cost limitation:

--A workplan, line item budget and staffing for the administrative 
activities to be undertaken.

    For each NEG, the Operating Plan will be one source of information 
to be reviewed by ETA staff in determining future funding needs for the 
project. The existence and completeness of the Operating Plan will be a 
pre-condition for the release of additional funding increments.

B. Project Oversight

    In addition to the review of the Project Operating Plan, each 
project will be reviewed on-site at least once by ETA staff. 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

[[Page 23070]]

the need for funds to complete the project. This review will occur 
between six months following the date of grant award and the project 
midpoint. This review will include the operations of both the grantee 
and the project operators. Where multiple project operators are 
involved, the grantee will be expected to participate in the review of 
operations at the project operator level.
    For Disaster projects, on-site reviews will generally occur within 
six months of the grant award.

C. Project Performance Reporting

    Each grant recipient will be required to submit electronically 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. This report is due within 
45 calendar days following the end of each Program Year quarter.

Part VIII: Grant Modifications

    Grant modifications will be required in the following 
circumstances:
    a. To include additional layoffs that are within the scope of the 
approved grant award;
    b. To change the project performance period;
    c. To add or change project operators;
    d. Change contact individuals or information for the grantee or any 
project operator;
    e. To change any of the project design parameters that results in 
an increase of more than 10 percent in the approved cost per 
participant;
    f. To change the approved indirect cost rate;
    g. To increase the amount of approved funding for supportive 
services, Needs-Related Payments and/or administration of Needs-Related 
Payments;
    h. To lower the end-of-project performance goals.
    i. To request an additional funding increment within the total 
funding approved by the Secretary
    Requests under a, b, c or d that do not require a change in the 
amount of the approved grant award can be approved by the Regional 
Office. All other modifications requests will require the approval of 
the Grant Officer.
    Grantees may request a modification to add new employers or layoffs 
in local areas that are not included in the approved grant award only 
if the modification is submitted within the same Program Year in which 
the grant award was made.
    The content of the modification request will be determined by the 
nature of the requested change. As appropriate, revisions to applicable 
grant application forms and narrative will be submitted. Applicants 
will be notified of approval or non-approval of a complete request 
within 30 days of receipt by ETA.
    In general, where there is a need to increase the amount of funding 
approved by the Secretary for a project, a new application for NEG 
funds must be submitted. These submission requirements have been 
identified in Part IV. B. There are limited cases where the need for 
additional funding can be accommodated through a modification to a 
funded project. These cases are:

--Adding the workforce investment employment-related services component 
to a Disaster project;
--Increasing the number of participants and/or costs (i.e., based on 
documented service needs) for the approved target group in the grant 
award based on project implementation;
--Adding to the approved target group additional eligible workers at 
the employer sites identified in the approved grant award.

    Additions to the approved target group will be limited to employer 
sites identified in the approved grant and to workers who become 
eligible for assistance within 90 calendar days following the grant 
award.
    In the above cases, all workers must be eligible and be able to be 
enrolled in the project within 180 days following grant award and will 
be expected to complete services within the approved project 
performance period, or as modified.
    Any request for additional funding for a current project will 
require an approval decision by the Secretary.
BILLING CODE 4510-30-P

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Appendix A--Application and Reporting Forms
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BILLING CODE 4510-30-C

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Appendix B--ETA Regional Administrators

Region 1

    Mr. Joseph Stoltz, Regional Administrator, U.S. Department of 
Labor Employment and Training Administration, J.F.K. Federal 
Building, Room E-350, Boston, MA 02203, Phone: (617) 788-0170 Fax: 
(617) 788-0101, URL: http://www.doleta.gov/regions/reg01bos/.


    Note: This Regional office serves the following states: 
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and 
Vermont.

Region 2

    Ms. Lenita Jacobs-Simmons, Regional Administrator, U.S. 
Department of Labor ETA, Suite 825 East, The Curtis Center, 170 
South Independence Mall West, Philadelphia, PA 19106, Phone: (215) 
861-5200.


    Note: This Regional office serves the following states: 
Delaware, Washington DC, Maryland, Pennsylvania, Virginia, and West 
Virginia.

Region 3

    Helen N. Parker, Regional Administrator, U.S. Department of 
Labor Employment and Training Administration, Atlanta Federal 
Center, Rm. 6M12, 61 Forsyth Street, Atlanta, GA 30303, Phone: (404) 
562-2092 Fax: (404) 562-2149.


    Note: This Regional office serves the following states: Alabama, 
Florida, Georgia, Kentucky, Mississippi, North Carolina, South 
Carolina, and Tennessee.

Region 4

    Joseph Juarez, Regional Administrator, U.S. Department of Labor 
Employment & Training Administration, 525 Griffin Street, Room 317, 
Dallas, TX 75202, Phone: (214) 767-8263 Fax: (214) 767-5113, Email: 
[email protected].


    Note: This Regional office serves the following states: 
Arkansas, Louisiana, New Mexico, Oklahoma, Colorado, Montana, North 
Dakota, South Dakota, Utah, Wyoming, and Texas.

Region 5

    Byron Zuidema, Regional Administrator, U.S. Department of Labor 
Employment & Training Administration, 230 South Dearborn Street, 
Room 638, Chicago, IL 60604, Phone: (312) 353-0313 Fax: (312) 353-
4474, Email: [email protected].


    Note: This Regional office serves the following states: 
Illinois, Indiana, Michigan, Minnesota, Ohio, Iowa, Kansas, 
Missouri, Nebraska, and Wisconsin.

Region 6

    John Humphreys, Acting Regional Administrator, U.S. Department 
of Labor Employment & Training Administration, P.O. Box 193767 71 
Stevenson St., Suite 830, San Francisco, CA 94119-3767, Phone: (415) 
975-4610 Fax: (415) 975-4612.

    Note: This Regional office serves the following states: Arizona, 
California, Hawaii, Nevada, Alaska, Idaho, Oregon, Washington, and 
Guam.

[FR Doc. 04-9338 Filed 4-26-04; 8:45 am]
BILLING CODE 4510-30-P