80 FR 46799 - Final Priority and Definitions; Demonstration and Training Program: Career Pathways for Individuals With Disabilities

DEPARTMENT OF EDUCATION

Federal Register Volume 80, Issue 151 (August 6, 2015)

The Assistant Secretary for Special Education and Rehabilitative Services announces a priority designed to demonstrate promising practices in the use of career pathways to improve employment outcomes for individuals with disabilities. Specifically, this priority will establish model demonstration projects that engage State vocational rehabilitation (VR) agencies in partnerships with other entities to develop and use career pathways to help individuals with disabilities eligible for VR services, including youth with disabilities, acquire necessary marketable skills and recognized postsecondary credentials. The Assistant Secretary may use this priority for competitions in fiscal year (FY) 2015 and later years.

[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Rules and Regulations]
[Pages 46799-46804]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19293]


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DEPARTMENT OF EDUCATION

34 CFR Chapter III

[Docket ID ED-2015-OSERS-0061]


Final Priority and Definitions; Demonstration and Training 
Program: Career Pathways for Individuals With Disabilities

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Final priority and definitions.

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[CFDA Number: 84.235N.]

SUMMARY: The Assistant Secretary for Special Education and 
Rehabilitative Services announces a priority designed to demonstrate 
promising practices in the use of career pathways to improve employment 
outcomes for individuals with disabilities. Specifically, this priority 
will establish model demonstration projects that engage State 
vocational rehabilitation (VR) agencies in partnerships with other 
entities to develop and use career pathways to help individuals with 
disabilities eligible for VR services, including youth with 
disabilities, acquire necessary marketable skills and recognized 
postsecondary credentials. The Assistant Secretary may use this 
priority for competitions in fiscal year (FY) 2015 and later years.

DATES: This priority and these definitions are effective September 8, 
2015.

FOR FURTHER INFORMATION CONTACT: Felipe Lulli, U.S. Department of 
Education, 400 Maryland Avenue SW., Room 5042, Potomac Center Plaza 
(PCP), Washington, DC 20202-2800. Telephone: (202) 245-7425 or by 
email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:
    Purpose of Program: The purpose of the Demonstration and Training 
Program is to provide competitive grants to, or enter into contracts 
with, eligible entities to expand and improve rehabilitation and other 
services authorized under the Rehabilitation Act of 1973, as amended 
(Rehabilitation Act), or to further the purposes and policies in 
sections 2(b) and 2(c) of the Rehabilitation Act by supporting 
activities that increase the provision, extent, availability, and 
scope, as well as improve the quality of rehabilitation services under 
the Rehabilitation Act.

    Program Authority:  29 U.S.C. 773(b).

    Applicable Program Regulations: 34 CFR part 373.
    We published a notice of proposed priority and definitions for this 
competition in the Federal Register on May 15, 2015 (80 FR 27874). That 
notice contained background information and our reasons for proposing 
the particular priority and definitions. There are differences between 
the proposed priority and the final priority which are explained in the 
Analysis of Comments and Changes section of this notice.
    Public Comment: In response to our invitation in the notice of 
proposed priority and definitions, two parties submitted comments 
relevant to this priority.
    Generally, we do not address technical and other minor changes.
    Analysis of the Comments and Changes: An analysis of the comments 
and of any changes in the priority and definitions since publication of 
the notice of proposed priority follows.
    Comment: One commenter inquired whether there were any Federal 
requirements for the legal or programmatic structure of an eligible 
consortium. We also identified a second issue implicit in the 
commenter's question, namely, when it is appropriate for VR agencies to 
apply as a group.
    Discussion: We agree that the reference to ``a consortium of State 
VR agencies'' in the Eligible Applicants section of the proposed 
priority requires further definition. The Education Department General 
Administrative Regulations (EDGAR) at 34 CFR 75.127-129 authorize 
eligible entities to apply as a group. According to EDGAR, groups may 
take various forms, including consortia, provided that the constituent 
members are eligible entities and that the eligible applicants formally 
bind themselves to all the application statements and assurances, 
describe the activities they plan to conduct, and assume responsibility 
for compliance with all relevant Federal requirements. Accordingly, the 
final priority incorporates references to these requirements in the 
Eligibility and Application Requirements sections.
    We also agree that further clarification is needed regarding the 
circumstances in which application by a group would be appropriate. 
Thus, we have added a requirement that groups must serve a defined 
metropolitan area or distinct population that exists across State 
lines.
    Changes: In the Eligible Applicants section, we updated the final 
priority to use the broader term ``group'' instead of ``consortium.'' 
With regard to the circumstances for group applications, we have 
updated the Eligible Applicants section of the final priority to 
specify that State VR agencies may apply as a group if they serve 
individuals in a distinct geographic area shared by two or more 
adjacent States (e.g., metropolitan areas, targeted occupational 
clusters or related industries whose employment base extends beyond a 
single adjacent State).
    Also, in the Application Requirements paragraph (c)(3), we added a 
new requirement that State VR agencies applying as a group identify 
their shared geographic area and describe how they will coordinate 
their project activities within that area. In paragraph (e) of the 
Application Requirements section, we stipulate that applications by 
groups must include a copy of the members' signed agreement designating 
the agency authorized to sign the application on behalf of the group; 
binding each agency to every statement, assurance and obligation in the 
application; and detailing the agencies' assigned project roles and 
responsibilities.
    Comment: One commenter stated that the project requirements in the 
proposed priority would not ensure that grantees provide individuals 
with the kind of career development support they need for success in a 
career pathway. The commenter described the comprehensive career 
development process in terms of three distinct elements: the 
individual's self-exploration of career-related skills, interests, and 
values; exploration of potential occupations and career goals aligned 
with the individual's skills, interests, and values; and career 
planning and management to achieve the individual's chosen employment 
and personal goals. The commenter stated that career planning and 
management may involve career-specific skills, job search skills, and 
soft skills involving communication,

[[Page 46800]]

teamwork, networking, problem solving, critical thinking, and 
professionalism.
    In the commenter's view, the Project Requirements section of the 
proposed priority was inadequate because it did not require grantees to 
engage individuals in a comprehensive career development process. To 
correct this, the commenter recommended changes in the Project 
Requirements section to incorporate the three aspects of the 
comprehensive career development process, particularly in paragraphs 
(c)(6)(i) and (c)(6)(iv).
    The same commenter made additional recommendations in support of 
job readiness. Specifically, the commenter proposed inserting 
additional examples of comprehensive support services, self-advocacy, 
and soft-skills in Project Requirements paragraphs (c)(4)(i), 
(c)(4)(iii), and (c)(6)(iv), respectively, as well as the addition of a 
new requirement regarding ``supportive relationships with family 
members, mentors, role models, and other caring adults.''
    Discussion: We agree with the commenter's three-part description of 
a systematic comprehensive career development process. We also agree 
that the phrase used in the proposed priority--``career counseling, 
career exploration and career readiness skills''--does not fully 
reflect such a process. It does not, for example, capture the self-
exploration or career planning and management components of the 
process. Accordingly, the final priority incorporates a number of 
changes to improve the quality of the program's career development 
activities, consistent with the commenter's three-part description of a 
comprehensive career development process.
    We also agree that the proposed priority omitted some important 
elements of comprehensive support services, self-advocacy, and soft-
skills requirements, including fostering supportive relationships. The 
final priority therefore expands the comprehensive support services, 
self-advocacy training, and soft skills services to be provided, 
together with peer support and mentoring.
    On the other hand, we do not believe that a new requirement 
regarding supportive relationships with family members is necessary, 
because the proposed priority's Application Requirements paragraph 
(c)(3)(vi) already requires ``strategies for involving families.''
    Changes: We have revised the final priority to include several 
changes to the Project Requirements section. Paragraph (c)(6)(i) has 
been revised to more fully reflect the nature and scope of the 
program's required career development services. In addition, paragraph 
(c)(4)(i) now incorporates benefits planning and physical and mental 
health services among the comprehensive support services. Further, we 
revised paragraph (c)(4)(iii) to incorporate mentoring and peer 
relationships as components of self-advocacy training. Finally, we 
revised paragraph (c)(6)(iv) to add communication, teamwork, 
networking, problem solving, critical thinking and professionalism as 
soft skills.
    Comment: None.
    Discussion: We identified several instances in which a particular 
requirement was cited in one part of the proposed priority but omitted 
in another place where it should have been cited.
    The proposed priority's program description, for example, indicated 
that career pathway services are intended for individuals with 
disabilities who meet State VR eligibility requirements. However, this 
eligibility requirement was not reflected in the Project Requirements 
or Application Requirements sections of the proposed priority.
    Also, certain requirements in the Project Requirements section were 
not addressed in the Application Requirements section. Paragraph (b) of 
the Project Requirements in the notice of proposed priority required 
the model project to be implemented at multiple sites and lead to one 
or more occupational clusters. However, the Application Requirements 
did not require applicants to identify those sites, clusters, or their 
criteria for selecting them. Also, while Project Requirements paragraph 
(c) enumerated six career pathway components, the Application 
Requirements section lacked any references to those components. 
Further, collaboration with federally funded career pathway initiatives 
was cited in paragraph (d) of the Project Requirements section, but the 
Application Requirements section did not require applicants to list or 
describe such collaboration(s).
    With regard to employment outcomes, the proposed priority's 
Background section referenced competitive integrated employment for 
individuals with disabilities, but it did not require this employment 
outcome in either the Project Requirements section or the Application 
Requirements section's evaluation plan.
    Finally, neither the Project Requirements nor the Application 
Requirements of the proposed priority specified whether grantees are 
expected to create new pathways or to access existing ones.
    Changes: In the final priority, we have added references to ``VR-
eligible individuals'' in paragraph (a) of the Project Requirements 
section and in paragraph (c)(4)(v) of the Application Requirements 
section.
    In paragraph (c)(3) of the Application Requirements section, the 
final priority requires applicants to identify the project's proposed 
sites and targeted occupational clusters, and their criteria for 
selecting such sites and occupational clusters. We also added 
references to the six specified career pathway components in paragraph 
(c)(4)(v) of the Application Requirements section. In addition, we 
added the requirement that applicants describe their proposed 
collaboration with federally funded career pathway partners in 
Application Requirements paragraph (c)(4)(iii).
    We have added an explicit reference to competitive integrated 
employment in paragraph (a) of the Project Requirements section. In 
Application Requirements paragraph (g), regarding evaluation plans, we 
added required data elements appropriate for measuring career pathways' 
effectiveness in creating competitive integrated employment 
opportunities for VR-eligible individuals.
    In paragraph (a) of the Project Requirements section we added a 
statement clarifying that applicants may provide access to existing 
career pathways, create new ones, or both. Also, Application 
Requirements paragraph (c)(4)(iv) now requires applicants to describe 
how they would provide access to existing career pathways or create new 
pathways.

Final Priority

    The Assistant Secretary for Special Education and Rehabilitative 
Services proposes a priority designed to demonstrate promising 
practices in the use of career pathways (as defined in this notice) in 
order to improve employment outcomes for individuals with disabilities 
(as defined in this notice). Specifically, the purpose of this priority 
is to establish model demonstration projects designed to promote State 
vocational rehabilitation (VR) agency partnerships in the development 
of and the use of career pathways to help individuals with disabilities 
eligible for VR services, including youth with disabilities (as defined 
in this notice), to acquire marketable skills and recognized 
postsecondary credentials (as defined in this notice).
    Eligible Applicants: Under this priority, an applicant must be a 
State VR agency. State VR agencies may also apply as a group, 
consistent with 34

[[Page 46801]]

CFR 75.128, if they serve individuals in a distinct geographic area 
shared by two or more adjacent States. Applications by a group would be 
appropriate, for example, in cases of metropolitan areas, targeted 
occupational clusters or related industries whose employment base 
extends beyond a single State.
    Project Requirements: Under this priority, the model demonstration 
proposed by an applicant must, at a minimum--
    (a) Develop and implement a collaborative model project 
demonstrating promising practices and strategies in the use of career 
pathways to improve the skills of VR-eligible individuals with 
disabilities, including youth with disabilities, and help them attain 
credentials that lead to competitive integrated employment in high-
demand occupations. The model must be implemented at multiple sites to 
ensure its replicability, and lead to one or more occupational clusters 
(as defined in this notice). The model project may involve providing 
access to existing career pathways, creating new pathways, or both;
    (b) Establish partnerships between the VR agencies, employers, 
agencies, and entities that are critical to the development of career 
pathways and the alignment of education, training, employment, and 
human and social services. At minimum, the partnership should include 
representatives from local or State educational agencies responsible 
for providing transition services to students with disabilities under 
the Individuals with Disabilities Education Act and representatives 
from two-year and four-year institutions of higher education, American 
Job Centers, other workforce training providers (including 
apprenticeship, on-the-job and customized training providers), and 
employers who will work in collaboration to develop and provide 
postsecondary education and training for individuals with disabilities 
served under this project;
    (c) Include the following career pathway components:
    (1) Alignment of secondary and postsecondary education, training, 
employment, and human services with the skill needs of targeted 
industry sectors important to local, regional, or State economies;
    (2) Rigorous, sequential, connected, and efficient curricula that 
connect basic education and skills training courses and that integrate 
education with training;
    (3) Multiple entry and exit points for individuals with 
disabilities entering and exiting training;
    (4) Comprehensive support services that are designed to ensure the 
individual's success in completing education and training programs:
    (i) Financial supports, benefits planning, child care, physical and 
mental health services and transportation;
    (ii) Educational supports (e.g., tutors, on-campus supports such as 
writing labs, math labs, and disability services);
    (iii) Self-advocacy training (e.g., mentoring, peer relationships, 
understanding how to request services and supports needed in the 
transition from secondary to post-secondary education and employment, 
and increasing knowledge of rights under disability laws); and
    (iv) Appropriate assistive technology services and devices;
    (5) Flexible design of education and training programs and services 
to meet the particular needs of individuals with disabilities, 
including flexible work schedules, alternative class times and 
locations, and the innovative use of technology; and
    (6) Education and training programs that focus on the attainment of 
secondary education and recognized postsecondary credentials, sector-
specific employment, educational advancement over time and employment 
within a sector, including curriculum and instructional strategies 
designed to develop the following knowledge and skills:
    (i) Comprehensive career development counseling and guidance, 
including self-exploration, career exploration and career planning and 
management;
    (ii) Basic academic skills needed to demonstrate knowledge 
competencies in an occupation or occupational cluster, including 
remedial skills to address gaps in basic reading, writing, and math 
skills;
    (iii) Career and technical skills leading to employment in 
technical careers, including employment in the skilled trades; and
    (iv) Soft skills (e.g., understanding, communication, teamwork, 
networking, problem solving, critical thinking and professionalism, 
learning styles, identifying strengths and weaknesses);
    (d) Collaborate with other federally-funded career pathway 
initiatives conducting activities relevant to the work of its proposed 
project; and
    (e) Develop and conduct an evaluation of the project's performance 
in achieving project goals and objectives, including an evaluation on 
the effectiveness of the practices and strategies implemented by the 
project.
    Application Requirements: To be considered for funding under this 
program, an application must include the following:
    (a) A detailed review of the literature that supports the potential 
effectiveness of the proposed model, its components, and processes to 
improve outcomes for individuals with disabilities;
    (b) A logic model that communicates how the demonstration project 
will achieve its outcomes and provides a framework for project 
evaluation. The logic model must depict, at a minimum, the goals, 
activities, outputs, and outcomes of the proposed model demonstration 
project;
    (c) A description of the applicant's plan for implementing the 
project, including a description of--
    (1) A cohesive, articulated model of partnership and coordination 
among the participating agencies and organizations;
    (2) The coordinated set of promising practices and strategies in 
the use and development of career pathways that are aligned with 
employment, training, and education programs and reflect the needs of 
employers and individuals with disabilities;
    (3) The model demonstration project's proposed sites and targeted 
occupational clusters, and the proposed criteria for selecting such 
sites and occupational clusters. State VR agencies applying as a group 
must also identify the shared geographic area and describe how they 
will coordinate their project activities within the shared area.
    (4) How the proposed project will--
    (i) Identify local workforce needs, aligned with the skill needs of 
targeted industry sectors important to local, regional, or State 
economies;
    (ii) Involve employers in the project design and in partnering with 
project staff to develop integrated community settings for assessments, 
job shadowing, internships, apprenticeships, and other paid and unpaid 
work experiences that are designed to lead to competitive integrated 
employment for individuals with disabilities, including youth with 
disabilities;
    (iii) Collaborate with participating agencies and organizations, 
including career pathway partners;
    (iv) Provide access to existing career pathways, create new 
pathways, or both, incorporating the six required career pathway 
components: secondary and postsecondary education and training aligned 
with targeted industry sector needs; rigorous, sequential, connected 
and efficient curricula; multiple entry and exit points; comprehensive 
support services; flexible design of education, training, work settings 
and assistive

[[Page 46802]]

technology; and focus on the attainment of secondary education, 
recognized postsecondary credentials, sector-specific employment, and 
related knowledge and skills.
    (v) Conduct outreach activities to identify VR-eligible individuals 
with disabilities whom the career pathways approach could assist in 
achieving competitive integrated employment in the career clusters 
identified in their application; and
    (vi) Develop strategies for involving families that will increase 
the likelihood for successful educational and employment outcomes for 
individuals with disabilities.
    (d) The methods and criteria that will be used to select the sites 
at which the project activities will be implemented;
    (e) Evidence (e.g., letter of support or draft agreement) that the 
State VR agency has specific agreements with its partners in the 
development and implementation of the project. In the case of a group, 
the application must also include a signed agreement among the 
constituent State VR agencies that designates the agency legally 
authorized to submit the application on behalf of the group; binds each 
agency to every statement, assurance and obligation in the application; 
and details the agencies' assigned roles and responsibilities, in 
accordance with 34 CFR 75.128 and 75.129;
    (f) A plan for evaluating the project's performance, including an 
evaluation on the effectiveness of the practices and strategies 
implemented by the project, in achieving project goals and objectives. 
Specifically, the evaluation plan must include a description of:
    (1) Project goals, measurable objectives, and operational 
definitions;
    (2) The data to be collected;
    (3) How the data will be analyzed; and
    (4) How the outcomes for individuals with disabilities served by 
the project compared with the outcomes of individuals with disabilities 
not receiving project services.
    (g) For each career pathway accessed or created through the 
project, the evaluation plan must provide the following information:
    (1) Description of the career pathway--including the respective 
occupational cluster(s) or career field(s), stackable credentials, and 
multiple entry/exit points; and
    (2) Collection of the following data, at minimum:
    (i) The relevant RSA-911 Case Service Report data for each project 
participant;
    (ii) The number of participants who entered the career pathway;
    (iii) The number of participants who completed training in the 
career pathway;
    (iv) The number of participants who attained one or more recognized 
postsecondary credential and the types of credentials attained;
    (v) The number of participants who achieved competitive integrated 
employment through the project; and
    (vi) The corresponding weekly wage and employer benefits received 
by these participants.
    (h) A plan for systematic dissemination of project findings and 
knowledge gained that will assist State and local agencies in adapting 
or replicating the model career pathways developed and implemented by 
the project. This plan could include elements such as development of a 
Web site, community of practice, and participation in national and 
State conferences;
    (i) An assurance that the employment goal for all individuals 
served under this priority will be competitive integrated employment, 
including customized or supported employment; and
    (j) An assurance that the project will collaborate with other 
federally-funded career pathway initiatives conducting activities 
relevant to its work.

Types of Priorities

    When inviting applications for a competition using one or more 
priorities, we designate the type of each priority as absolute, 
competitive preference, or invitational through a notice in the Federal 
Register. The effect of each type of priority follows:
    Absolute priority: Under an absolute priority, we consider only 
applications that meet the priority (34 CFR 75.105(c)(3)).
    Competitive preference priority: Under a competitive preference 
priority, we give competitive preference to an application by (1) 
awarding additional points, depending on the extent to which the 
application meets the priority (34 CFR 75.105(c)(2)(i)); or (2) 
selecting an application that meets the priority over an application of 
comparable merit that does not meet the priority (34 CFR 
75.105(c)(2)(ii)).
    Invitational priority: Under an invitational priority, we are 
particularly interested in applications that meet the priority. 
However, we do not give an application that meets the priority a 
preference over other applications (34 CFR 75.105(c)(1)).

Definitions

    The following definitions are provided to ensure that applicants 
have a clear understanding of how we are using these terms in the 
priority. There are no differences between the proposed definitions and 
these final definitions.
    Career Pathway means a combination of rigorous and high-quality 
education, training, and other services that--
    (a) Aligns with the skill needs of industries in the economy of the 
State or regional economy involved;
    (b) Prepares an individual to be successful in any of a full range 
of secondary or postsecondary education options, including 
apprenticeships registered under the Act of August 16, 1937 (commonly 
known as the ``National Apprenticeship Act''; 50 Stat. 664, chapter 
663; 29 U.S.C. 50 et seq.);
    (c) Includes counseling to support an individual in achieving the 
individual's education and career goals;
    (d) Includes, as appropriate, education offered concurrently with 
and in the same context as workforce preparation activities and 
training for a specific occupation or occupational cluster;
    (e) Organizes education, training, and other services to meet the 
particular needs of an individual in a manner that accelerates the 
educational and career advancement of the individual to the extent 
practicable;
    (f) Enables an individual to attain a secondary school diploma or 
its recognized equivalent, and at least one recognized postsecondary 
credential; and
    (g) Helps an individual enter or advance within a specific 
occupation or occupational cluster. Source: Section 3(7) of WIOA.
    Competitive integrated employment means work that is performed on a 
full-time or part-time basis (including self-employment)--
    (a) For which an individual--
    (1) Is compensated at a rate that--
    (i)(A) Shall be not less than the higher of the rate specified in 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)) or the rate specified in the applicable State or local 
minimum wage law; and
    (B) Is not less than the customary rate paid by the employer for 
the same or similar work performed by other employees who are not 
individuals with disabilities, and who are similarly situated in 
similar occupations by the same employer and who have similar training, 
experience, and skills; or
    (ii) In the case of an individual who is self-employed, yields an 
income that is comparable to the income received by other individuals 
who are not individuals with disabilities, and who are self-employed in 
similar occupations or on similar tasks and who

[[Page 46803]]

have similar training, experience, and skills; and
    (2) Is eligible for the level of benefits provided to other 
employees;
    (b) That is at a location where the employee interacts with other 
persons who are not individuals with disabilities (not including 
supervisory personnel or individuals who are providing services to such 
employee) to the same extent that individuals who are not individuals 
with disabilities and who are in comparable positions interact with 
other persons; and
    (c) That, as appropriate, presents opportunities for advancement 
that are similar to those for other employees who are not individuals 
with disabilities and who have similar positions. Source: Section 7(5) 
of the Rehabilitation Act.
    Individual with a disability means any individual who--
    (a) Has a physical or mental impairment which for such individual 
constitutes or results in a substantial impediment to employment; and
    (b) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided pursuant to Title I, III, or VI of the 
Rehabilitation Act. Source: Section 7(20) of the Rehabilitation Act.
    Occupational cluster means a group of occupations and broad 
industries based on common knowledge and skills, job requirements or 
worker characteristics. Source: Adopted from Career Pathways Toolkit, 
DOL.
    Recognized postsecondary credential means a credential consisting 
of an industry-recognized certificate or certification, a certificate 
of completion of an apprenticeship, a license recognized by the State 
involved or Federal Government, or an associate or baccalaureate 
degree. Source: Section 3(52) of WIOA.
    Youth with a disability means an individual with a disability who--
    (a) Is not younger than 14 years of age; and
    (b) Is not older than 24 years of age. Source: Section 7(42) of the 
Rehabilitation Act.
    This notice does not preclude us from proposing additional 
priorities, requirements, definitions, or selection criteria, subject 
to meeting applicable rulemaking requirements.

    Note: This notice does not solicit applications. In any year in 
which we choose to use this priority, we invite applications through 
a notice in the Federal Register.

Executive Orders 12866 and 13563

Regulatory Impact Analysis

    Under Executive Order 12866, the Secretary must determine whether 
this regulatory action is ``significant'' and, therefore, subject to 
the requirements of the Executive order and subject to review by the 
Office of Management and Budget (OMB). Section 3(f) of Executive Order 
12866 defines a ``significant regulatory action'' as an action likely 
to result in a rule that may--
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
tribal governments or communities in a material way (also referred to 
as an ``economically significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in the 
Executive order.
    This final regulatory action is not a significant regulatory action 
subject to review by OMB under section 3(f) of Executive Order 12866.
    We have also reviewed this final regulatory action under Executive 
Order 13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, Executive Order 
13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned determination 
that their benefits justify their costs (recognizing that some benefits 
and costs are difficult to quantify);
    (2) Tailor its regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives and taking into 
account--among other things and to the extent practicable--the costs of 
cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, rather 
than the behavior or manner of compliance a regulated entity must 
adopt; and
    (5) Identify and assess available alternatives to direct 
regulation, including economic incentives--such as user fees or 
marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes.''
    We are issuing this final priority only on a reasoned determination 
that its benefits justify its costs. In choosing among alternative 
regulatory approaches, we selected those approaches that maximize net 
benefits. Based on the analysis that follows, the Department believes 
that this regulatory action is consistent with the principles in 
Executive Order 13563.
    We also have determined that this regulatory action does not unduly 
interfere with State, local, and tribal governments in the exercise of 
their governmental functions.
    In accordance with both Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs are those 
resulting from statutory requirements and those we have determined as 
necessary for administering the Department's programs and activities. 
The benefits of the Demonstration and Training program have been well 
established over the years through the successful completion of similar 
projects, particularly those grants that demonstrated innovative 
service delivery practices. Specifically, this priority would establish 
model demonstrations showing that career pathways can be used to assist 
individuals with disabilities to achieve competitive integrated 
employment by obtaining recognized postsecondary credentials and 
thereby by meeting the needs of employers in high-demand career 
clusters. This priority is also directly responsive to the Presidential 
Memorandum to Federal agencies directing them to take action to address 
job-driven training for the Nation's workers.
    Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79. One of the 
objectives of the Executive order is to foster an intergovernmental 
partnership and a strengthened federalism. The Executive order relies 
on processes developed by State and local governments for

[[Page 46804]]

coordination and review of proposed Federal financial assistance.
    This document provides early notification of our specific plans and 
actions for this program.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) by request to the program contact person 
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    Dated: July 31, 2015.
Michael K. Yudin,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 2015-19293 Filed 8-5-15; 8:45 am]
 BILLING CODE 4000-01-P