81_FR_52924 81 FR 52770 - Veterans Employment Pay for Success Grant Program

81 FR 52770 - Veterans Employment Pay for Success Grant Program

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 81, Issue 154 (August 10, 2016)

Page Range52770-52778
FR Document2016-18721

The Department of Veterans Affairs (VA) is establishing a grant program (Veterans Employment Pay for Success (VEPFS)) under the authority of the U.S.C. to award grants to eligible entities to fund projects that are successful in accomplishing employment rehabilitation for Veterans with service-connected disabilities. VA will award grants on the basis of an eligible entity's proposed use of a Pay for Success (PFS) strategy to achieve goals. This interim final rule establishes regulations for awarding a VEPFS grant, including the general process for awarding the grant, criteria and parameters for evaluating grant applications, priorities related to the award of a grant, and general requirements and guidance for administering a VEPFS grant program.

Federal Register, Volume 81 Issue 154 (Wednesday, August 10, 2016)
[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Rules and Regulations]
[Pages 52770-52778]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18721]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AP72


Veterans Employment Pay for Success Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is establishing a 
grant program (Veterans Employment Pay for Success (VEPFS)) under the 
authority of the U.S.C. to award grants to eligible entities to fund 
projects that are successful in accomplishing employment rehabilitation 
for Veterans with service-connected disabilities. VA will award grants 
on the basis of an eligible entity's proposed use of a Pay for Success 
(PFS) strategy to achieve goals. This interim final rule establishes 
regulations for awarding a VEPFS grant, including the general process 
for awarding the grant, criteria and parameters for evaluating grant 
applications, priorities related to the award of a grant, and general 
requirements and guidance for administering a VEPFS grant program.

DATES: Effective Date: This rule is effective on August 10, 2016.
    Comment Date: Comments must be received on or before October 11, 
2016.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (02REG), Department of Veterans Affairs, 810 
Vermont Avenue NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AP72--Veterans Employment Pay for Success Grant 
Program.'' Copies of comments received will be available for public 
inspection in the Office of Regulation Policy and Management, Room 
1068, between the hours of 8:00 a.m. and 4:30 p.m., Monday through 
Friday (except holidays). Please call (202) 461-4902 for an 
appointment. (This is not a toll-free number.) In addition, during the 
comment period, comments may be viewed online through the Federal 
Docket Management System (FDMS) at www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Patrick Littlefield, Director, VA 
Center for Innovation, Department of Veterans Affairs, (08), 810 
Vermont Ave. NW., Washington, DC, (202) 256-7176. (This is not a toll-
free number.)

SUPPLEMENTARY INFORMATION: VA's Vocational Rehabilitation & Employment 
(VR&E) Service provides services and assistance necessary to enable 
Veterans with compensable service-connected disabilities and employment 
barriers to achieve maximum independence in daily living and, to the 
maximum extent feasible, to become employable and to obtain and 
maintain suitable employment. (A Veteran with a noncompensable service-
connected disability is not entitled to vocational rehabilitation 
services and assistance under chapter 31 of title 38, United States 
Code. See 38 U.S.C. 3102.) Section 3119 of title 38, United States 
Code, authorizes the Secretary of Veterans Affairs (Secretary) to make 
grants to or contract with public or nonprofit agencies, including 
institutions of higher learning, to advance ``the knowledge, methods, 
techniques, and resources available for use in rehabilitation programs 
for veterans.'' Section 3119 specifically authorizes the Secretary to 
make grants to such agencies to conduct or provide support for projects 
which are ``designed to increase the resources and potential for 
accomplishing the rehabilitation of disabled veterans.'' (See also 
implementing regulation at 38 CFR 21.390.)
    PFS is a strategy for successfully attaining positive social or 
environmental outcomes by paying for

[[Page 52771]]

an intervention to achieve such outcomes only after the intervention 
produces these outcomes. Using a PFS strategy, a party to an agreement 
agrees to pay for services for specific people or communities in need 
of particular services only if and when an agreed-upon set of outcomes 
related to meeting the people's or communities' needs has been achieved 
or a level of impact has been verified. Instead of funding services 
regardless of the results, payments are made only if interventions 
achieve the outcomes agreed upon in advance. For example, instead of 
paying for the provision of job training without knowing whether such 
training will have a successful result, an entity might use a PFS 
strategy to pay for the provision of job training only when individuals 
gain stable employment in good jobs. When the party committed to pay 
for outcomes is a Government entity, taxpayers will not have to pay for 
ineffective services. However, the party that provides services may not 
have the funding for the services before outcomes are measured. PFS 
agreements can incorporate PFS financing, sometimes referred to as 
``social impact bonds,'' to cover the costs of the services until 
success is achieved and payments are due. PFS financing involves third-
party, independent investors that provide the financing necessary to 
carry out the intervention. In addition, a PFS model typically involves 
a project coordinator or intermediary to facilitate and manage the 
project, a service provider to deliver the intervention, and an 
independent evaluator to determine whether the intervention achieves 
the desired outcomes.
    There is a need to find new, innovative methods for rehabilitating 
Veterans with compensable service-connected disabilities (as defined in 
38 CFR 3.1(k)) who qualify for benefits under VA's VR&E program so that 
they become employable and are ultimately able to obtain and maintain 
suitable employment. Through PFS grant programs, which may serve 
various Veteran populations including those Veterans with 
noncompensable service-connected disabilities who do not qualify for 
VR&E benefits, we hope to obtain information to establish new, 
innovative methods for rehabilitating Veterans who qualify for VR&E 
benefits. PFS offers an economical mechanism, which can save taxpayers' 
money, for exploring the resources and techniques that are available 
for rehabilitating Veterans with service-connected disabilities with 
regard to employment. We interpret the authority in Sec. 3119 to award 
grants to conduct or provide support for projects which are designed to 
increase the potential for accomplishing the rehabilitation of disabled 
Veterans broadly, to allow for the funding of projects that serve 
Veterans with either compensable or noncompensable service-connected 
disabilities. By funding projects that serve Veterans with either 
compensable or noncompensable service-connected disabilities, there is 
increased potential to discover new techniques and resources for use in 
VA's VR&E program to enable Veterans who qualify for VR&E services to 
become employable and to obtain and maintain suitable employment.
    Accordingly, under the authority of Sec. 3119, VA will award grants 
to eligible entities that will become ``outcomes payors,'' to 
administer payment for outcomes of interventions that are successful in 
accomplishing employment rehabilitation for Veterans with service-
connected disabilities. In other words, VA will fund outcomes of 
projects that achieve favorable employment outcomes related to success 
in the ability or potential to secure or sustain stable employment or 
to achieve increased earnings of Veterans with service-connected 
disabilities. The funding will be referred to as ``outcomes payments'' 
and the grant known as the ``Veterans Employment Pay for Success 
(VEPFS)'' grant. This interim final rule establishes regulations for 
awarding a VEPFS grant, including the general process for awarding the 
grant, criteria and parameters for evaluating grant applications, 
priorities related to the award of a grant, and general requirements 
and guidance for administering a VEPFS grant program.

Sec.  21.440 Purpose and Scope.

    Section 21.440 sets forth the purpose of a VEPFS grant program and 
explains what the program provides. This section indicates that VA may 
provide a grant to an eligible entity to fund outcomes payments for a 
project that achieves favorable employment outcomes for Veterans with 
service-connected disabilities. There is a need to find new and 
innovative methods for rehabilitating Veterans with compensable 
service-connected disabilities with regard to employment and, as noted 
above, the VEPFS grant program offers an economical mechanism, which 
can save taxpayers' money, for exploring the resources and techniques 
that may be available to address that need.

Sec.  21.441 Definitions.

    Section 21.441 defines terms used in Sec. Sec.  21.440-21.449 and 
any Notices of Funding Availability (NOFA) issued pursuant to 
Sec. Sec.  21.440-21.449. The definitions are set out in the regulatory 
text, but we elaborate on some of them as follows:
    ``Eligible entity'' is defined as a public or nonprofit agency, to 
include institutions of higher learning. Section 3119 of title 38, 
United States Code, provides authorization to make grants to public or 
nonprofit agencies, including institutions of higher learning. We 
interpret the term ``nonprofit agency,'' as used in Sec. 3119, to 
include tax-exempt, incorporated or unincorporated organizations that 
serve the public interest and generally have a charitable, educational, 
scientific, religious, or literary goal. We interpret the term ``public 
agency'', as used in Sec. 3119, to include the government of the United 
States or of a State or political subdivision of a State.
    ``Employment outcome'' is defined as the employment or earnings of 
a participant in the intervention or control group member after the 
service period. The VEPFS program will measure certain outcomes, 
including competitive employment, skill development, achieving a 
sustained period of employment, wage-earnings, and achieving employment 
that aligns with the interests and aptitude of the job seeker. 
Improving employment outcomes means creating positive impact in terms 
of these outcomes, where the results for individuals that receive the 
intervention are better than the results for a valid control group that 
did not receive the intervention.
    ``Intervention'' is defined as a service or technology that is 
provided to individuals and intended to achieve certain results. 
Examples of service interventions or technological interventions to 
improve Veteran employment outcomes include, but are not limited to, 
support services, employment coaching, mental health treatment, 
vocational training, occupational therapy, community engagement, and 
outreach.
    ``Project partnership'' is defined as a collaboration among 
entities that negotiate an agreement and execute a project to improve 
employment outcomes for Veterans with service-connected disabilities. 
For the purpose of the VEPFS grant program, a project partnership is 
not a distinct legal entity. Section 21.441 includes definitions for 
the entities that may be involved in a project partnership.

[[Page 52772]]

    ``Social finance strategy'' is defined as a method for securing 
financial resources using an investment approach that focuses on 
achieving positive social and/or environmental impact with some form of 
financial return. Examples of social finance strategies include: (1) 
Matching taxpayer dollars with non-government contributions to extend 
the impact of not-for-profit organizations; (2) simplifying access to 
government funding for community organizations and institutions of 
higher learning.
    ``Strong evidence'' is defined as results from previous studies, 
the designs of which can support causal conclusions (i.e., studies with 
high internal validity), which include enough of the range of 
participants and settings to support scaling up to the state, regional, 
or national level (i.e., studies with high external validity). The 
following are examples of strong evidence: (1) More than one well-
designed and well-implemented experimental study or well-designed and 
well-implemented quasi-experimental study that supports the 
effectiveness of the practice, strategy, or program; or (2) one large, 
well-designed and well-implemented randomized controlled, multisite 
trial that supports the effectiveness of the practice, strategy, or 
program.
    ``Work-plan'' is defined as a document that articulates tasks and 
milestones with regard to a particular project. A work plan contains a 
detailed overview of all activities that will be undertaken to complete 
a project, and the goals, objectives, outcomes, responsible parties, 
and timeline for each task of a project, which collectively serve as 
the roadmap for execution of project tasks.

Sec.  21.442 VEPFS Grants--General.

    Section 21.442 provides general information pertaining to VEPFS 
grants. Section 21.442(a) establishes that only an eligible entity may 
receive a VEPFS grant. Section 21.442(b) establishes that the available 
grant funding amount will be specified in the NOFA. The amount of 
funding VA may provide in a VEPFS grant is not limited by or otherwise 
specified in statute. In addition, VA may combine its funds with funds 
of another Federal entity to increase the amount available for a VEPFS 
project. VA will determine the amount of funding available for an 
individual VEPFS project, including any contributions from another 
Federal agency, on a case-by-case basis and will announce the amount of 
available grant funding for that VEPFS project in the applicable NOFA. 
Section 21.442(c) states that the period for a VEPFS grant will be a 
minimum of 5 years and a pre-determined maximum number of years, as 
specified in the NOFA, beginning on the date on which the VEPFS grant 
is awarded, with the availability of no-cost extensions. At the end of 
the pre-determined maximum period, the effectiveness of the project 
will be assessed to determine the project's success. Five years is the 
minimum length of time necessary to maximize the effectiveness of a 
project and obtain meaningful data on a project's success through 
periodic reporting. This timeframe allows 1 year to develop, refine and 
launch the project, 3 years for service delivery to produce outcomes 
and data, and 1 year for a thorough evaluation of outcomes. Section 
21.442(d) specifies that a recipient must provide matching funds from 
non-Federal sources that are at least equal to or greater than the 
amount of Federal grant funds awarded, which will be combined with the 
amount of Federal grant funds awarded to be used to fund the proposed 
PFS project as a condition of receiving a VEPFS grant. Requiring 
matching funds increases the amount of available funding for VEPFS 
projects. Section 21.442(e) specifies that a VEPFS grant is not a 
Veterans' benefit, and, therefore, any decisions of the Secretary as to 
whether to award a VEPFS grant are final and not subject to the same 
rights of appeal as decisions related to Veterans' benefits.

Sec.  21.443 Permissible Uses of VEPFS Grant Funds.

    Section 21.443(a) specifies that VEPFS grant funds may be used to 
make outcomes payments only if an intervention achieves outcomes at a 
pre-set level that has been agreed to in a PFS agreement before service 
delivery begins for a PFS project with a goal to improve employment 
outcomes for Veterans with service-connected disabilities. As stated 
above, the reason for using a PFS strategy is to avoid using taxpayer 
dollars for ineffective services and therefore save taxpayer money. VA 
is specifically funding PFS projects that aim to improve employment 
outcomes for Veterans with service-connected disabilities to carry out 
Congress' intention that VA ``advance the knowledge, methods, 
techniques, and resources available for use in rehabilitation programs 
for veterans'' and increase the ``potential for accomplishing the 
rehabilitation of disabled veterans.''
    In addition, to cover the indirect costs of administering the grant 
(costs associated with general administration and expenses), Sec.  
21.443(b) allows a recipient to use a Federally approved indirect cost 
rate (a rate already negotiated with the Federal Government), use a 10% 
de minimis rate of modified total direct costs, negotiate an indirect 
cost rate for the first time, or claim certain costs directly following 
2 CFR 200.413 so as to not limit the pool of eligible applicants to 
entities that will use a particular permissible option. This is 
consistent with regulatory guidance to Federal agencies that provide 
grant awards to non-Federal entities, including States, local 
governments, Indian tribes, institutions of higher education, and non-
profit organizations issued by the Office of Management and Budget 
(OMB) and codified in in part 200 of title 2 of the Code of Federal 
Regulations. 2 CFR 200.414; see also 2 CFR 200.69. These administrative 
costs may be claimed before outcomes are measured and regardless of 
whether outcomes are achieved at pre-set levels.

Sec.  21.444 Notice of Funding Availability.

    Section 21.444 states that when funds are available to award a 
VEPFS grant, VA will publish a NOFA announcing the funding opportunity 
in the Federal Register and on Grants.gov (http://www.grants.gov) 
providing specific details about the opportunity. Section 21.444, in 
paragraphs (a)-(f), lists generally the information the NOFA will 
include. Section 200.203 of title 2, Code of Federal Regulations, 
requires the issuance of a NOFA, which includes specific identifying 
information, information describing the funding opportunity, and 
information regarding the award, eligibility, application, application 
review, and Federal award administration. OMB requires the issuance of 
a NOFA and publication of this information to ensure that eligible 
entities have the information required to apply for grants.

Sec.  21.445 Application.

    Section 21.445 identifies VEPFS grant application procedures and 
the information required to constitute a complete application package. 
This section requires eligible entities to submit a complete grant 
application package, in accordance with instructions provided in the 
NOFA through Grants.gov (http://www.grants.gov) to apply for a VEPFS 
grant. Use of this Web site is the easiest and most efficient way to 
process grant applications. Furthermore, eligible entities submitting 
an application for a VEPFS grant will likely be familiar with this Web 
site. In describing the information a complete application package must 
contain, paragraph (a)

[[Page 52773]]

requires the complete application to contain a project description, 
including a description of the intervention, the Veteran population to 
be served, and anticipated employment outcomes. VA needs this 
information to determine whether the project proposed has a reasonable 
chance of providing positive employment outcomes for Veterans with 
service-connected disabilities. Paragraph (b) requires the complete 
application to contain a description of the anticipated project 
partnership(s), including the responsibilities of each of the partner 
entities, the experience of any involved entities with serving Veteran 
populations, and other qualifications of the involved entities that may 
be relevant in carrying out responsibilities of the project 
partnership. VA needs this information to assess the likelihood of 
success an applicant will have carrying out a VEPFS project. In 
addition, paragraph (b) informs applicants that, in procuring partners 
such as the project coordinator and investor, procurement standards set 
forth in 2 CFR 200.317-200.326 must be followed. Paragraph (c) requires 
the complete application to include a work plan with a budget and 
timelines. These disclosures will help reviewers assess how close the 
project is to beginning to provide services and the extent to which an 
applicant has considered all aspects of planning. Paragraph (d) 
requires the complete application to contain a description of 
applicant's expertise or experience with PFS or other social finance 
strategies or experience administering programs that serve Veterans 
with disabilities. Paragraph (e) requires the complete application to 
include documentation of an applicant's ability and capacity to 
administer the project. Having the information obtained from the 
requirements of paragraphs (d) and (e) will also allow VA to assess the 
likelihood of success of a VEPFS project. Paragraph (f) requires the 
complete application to include proof of matching funds already 
secured, the applicant's ability to secure matching funds, or 
commitments of matching funds the applicant has received. Reviewers 
need this documentation to confirm an applicant's ability to meet the 
VEPFS grant funding requirements. Paragraph (g) requires that the 
complete application contain any additional information VA deems 
appropriate and sets out in the NOFA so that VA can tailor the NOFA as 
necessary.

Sec.  21.446 Scoring and Selection.

    Section 21.446(a) states that VA will score only complete 
applications received from eligible entities by the deadline 
established in the NOFA and identifies the criteria to be used in 
selecting a recipient. Selection of a recipient will be based on the 
likelihood of successful implementation of the project and the 
likelihood that the project will meet objectives. The information 
described in Sec.  21.446(a) will allow VA to make such determination 
regarding the likelihood of project success.
    Section 21.446(b) indicates that NOFA announcements may clarify the 
selection criteria in paragraph (a) and will specify the relative 
weight (point value) assigned for each selection criterion according to 
the criterion's importance in ensuring the successful development and 
implementation of a VEPFS project and that eligible entities will be 
ranked in order from highest to lowest total score. This section also 
indicates that VA will award any VEPFS grant on the primary basis of 
scores but will also consider a risk assessment evaluation.

Sec.  21.447 VEPFS Grant Agreement.

    Section 21.447 states that VA will draft a grant agreement for 
execution between VA and the applicant selected to receive a VEPFS 
grant, and VA will obligate the grant funds to cover the amount of the 
approved grant, subject to the availability of funding, upon execution 
of the agreement. This section also states that the VEPFS grant 
agreement will provide that the recipient agrees (and will ensure that 
any subcontractors agree) to: Operate the program in accordance with 
the provisions of Sec. Sec.  21.440-21.449, 2 CFR part 200, and the 
applicant's VEPFS grant application; comply with such other terms and 
conditions, including recordkeeping and reports for program monitoring 
and evaluation purposes, as VA may establish for purposes of carrying 
out the VEPFS program in an effective and efficient manner; and provide 
any additional information VA requests in the manner and timeframe VA 
specifies. Part 200 provides uniform guidance and government-wide terms 
and conditions for the management of awards and the administration of 
Federal grants, and this rulemaking provides additional guidance and 
conditions for the administration of VEPFS grants in particular. 
Adherence to the government-wide rules is mandatory and compliance with 
the additional rules specific to VEPFS grants will ensure program 
integrity across any VEPFS grants VA awards. In addition, timely and 
accurate reporting is critical to allow VA to evaluate the VEPFS 
program.

Sec.  21.448 Recipient Reporting Requirements.

    Section 21.448 requires recipients to submit a quarterly report 30 
days after the close of each Federal fiscal quarter of the grant period 
that includes a detailed record of the time involved and resources 
expended administering the VEPFS program; the number of Veterans 
served, including demographics of this population; the types of 
employment assistance provided; a full accounting of VEPFS grant funds 
used or unused during the quarter; a comparison of accomplishments 
related to the objectives of the award; an explanation for any goals 
not met; and an analysis and explanation for any cost overruns. With 
such information, VA can effectively analyze program performance and 
ensure that a recipient is using grant funds in accordance with the 
grant agreement. In addition, Sec.  21.448 requires recipients to 
provide additional reports if necessary to allow VA to assess program 
accountability and effectiveness on an ongoing basis.

Sec.  21.449 Recovery of Funds.

    Section 21.449 specifies that VA can impose additional conditions 
as specified in 2 CFR 200.207 if a recipient fails to comply with any 
Federal statutes or regulations or the terms and conditions of an award 
made under Sec. Sec.  21.440-21.449. Section 21.449 also allows VA to 
take any appropriate actions specified in 2 CFR part 200 as remedies 
for non-compliance if non-compliance cannot be remedied. These measures 
help safeguard Federal funds and ensure appropriate use of the VEPFS 
grant funds awarded.

Administrative Procedure Act

    In accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary 
finds that there is good cause to dispense with the opportunity for 
prior notice and comment and good cause to publish this rule with an 
immediate effective date. The Secretary finds that it is impracticable 
and contrary to the public interest to delay this rule for the purpose 
of soliciting prior public comment or to have a delayed effective date. 
As stated above, the Secretary is issuing this rule because there is a 
need to find new methods for rehabilitating Veterans with service-
connected disabilities so that they become employable and are able to 
obtain and maintain suitable employment. This rulemaking provides the 
opportunity for the discovery of new methods for rehabilitating 
Veterans with service-connected disabilities with regard to employment 
using a strategy that will

[[Page 52774]]

save taxpayer money. However, the funding for a grant which would be 
awarded based on a NOFA to be published concurrently with this interim 
final rule, and which will be used to fund a project that achieves 
favorable employment outcomes for Veterans with a service-connected 
disability of post-traumatic stress disorder, is available only in this 
current fiscal year and must be obligated by September 30, 2016, if it 
is to be used for such purpose. To provide sufficient time to obligate 
the funds by September 30, 2016, the regulations established by this 
rulemaking must be in effect by August 9, 2016. Failure to obligate the 
funds by September 30, 2016, will cause the funds to expire.
    Because this interim final rule will serve an important Veterans' 
need in an economical way, which would not be possible if publication 
were to be delayed, the Secretary finds that it is impracticable and 
contrary to the public interest to delay this rule for the purpose of 
soliciting advance public comment or to have a delayed effective date. 
Accordingly, VA is issuing this rule as an interim final rule with an 
immediate effective date. We will consider and address any comments 
received within 60 days of the date this interim final rule is 
published in the Federal Register.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action'' requiring review by OMB, unless OMB 
waives such review, as ``any regulatory action that is likely to result 
in a rule that may: (1) Have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, 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 set forth in 
the Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's Web 
site at http://www.va.gov/orpm/, by following the link for ``VA 
Regulations Published From FY 2004 Through Fiscal Year to Date.''

Paperwork Reduction Act

    This interim final rule includes provisions constituting 
collections of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521) that require approval by OMB. Specifically, 
sections 21.445, 21.447, and 21.448 contain collections of information 
under the Paperwork Reduction Act of 1995. VA has submitted the 
following information collection request to OMB for review and 
clearance in accordance with the emergency review procedures of the 
Paperwork Reduction Act of 1995. The proposed information collection is 
published to obtain comments from the public and affected agencies. An 
emergency approval under the Paperwork Reduction Act is only valid for 
180 days. Comments should be directed to OMB, Office of Information and 
Regulatory Affairs, Attention: Department of Veterans Affairs Desk 
Officer, Washington, DC 20530, with copies sent by mail or hand 
delivery to the Director, Regulation Policy and Management (02REG), 
Department of Veterans Affairs, 810 Vermont Avenue NW., Room 1068, 
Washington, DC 20420; fax to (202) 273-9026; email to 
www.Regulations.gov. Comments should indicate that they are submitted 
in response to ``RIN 2900-AP72.''
    A regular review of this information collection will also be 
undertaken and announced in a future Federal Register notice indicating 
approval of this collection of information under the emergency review 
procedures of the Paperwork Reduction Act. All comments and 
suggestions, or questions regarding additional information, including 
obtaining a copy of the proposed information collection instrument with 
instructions, should be directed to Patrick Littlefield, Director, VA 
Center for Innovation, Department of Veterans Affairs, (08), 810 
Vermont Ave. NW., Washington, DC, (202) 256-7176. We request written 
comments and suggestions from the public and affected agencies 
concerning the proposed emergency collection of information.
    The Department considers comments by the public on proposed 
collections of information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the proposed collections of information, including the 
validity of the methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The collections of information contained in 38 CFR 21.445, 21.447, 
and 21.448 are described immediately following this paragraph, under 
their respective titles.
    Title: Grant Applications.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 21.445 would require applicants to 
submit a complete VEPFS grant application.
     Description of need for information and proposed use of 
information: The collection of information is necessary to award grants 
to eligible entities. VA will use this information to decide whether an 
applicant meets the requirements and satisfies the scoring criteria for 
award of VEPFS grants under 38 U.S.C. 3119.
     Description of likely respondents: Public and non-profit 
entities, including institutions of higher learning, that have an 
interest in serving Veterans with service-connected disabilities.
     Estimated number of respondents: 25 in FY 2016; 25 in FY 
2017; 25 in FY 2018.
     Estimated frequency of responses: This is a one-time 
collection.
     Estimated average burden per response: 80 hours.

[[Page 52775]]

     Estimated total annual reporting and recordkeeping burden: 
2,000 hours in FY 2016; 2,000 hours in FY 2017; 2,000 hours in 2018.
    Title: Quarterly Fiscal Reports.
     Summary of collection of information: The new collection 
of information in proposed 38 CFR 21.447(a)(1) and 21.448(a) would 
require each recipient to agree in the grant agreement to submit 
quarterly reports, which would include detailed records of the time 
expended and employment outcomes accomplished in the provision of VEPFS 
activities, accounting of how the grant funds were used.
     Description of need for information and proposed use of 
information: The collection of information is necessary to determine 
compliance with the requirements for a grant.
     Description of likely respondents: Public and non-profit 
entities, including institutions of higher learning, that have an 
interest in serving Veterans with service-connected disabilities.
     Estimated number of respondents: 1 in FY 2017, up to 10 in 
FY 2018, up to 10 in FY 2019.
     Estimated frequency of responses: 4 quarterly reports per 
year for 5 years.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
4 hours in FY 2017, 44 hours in FY 2018, 84 hours in FY 2019, 84 hours 
in 2020, 84 hours in 2021, 80 hours in 2022, 40 hours in 2023.
    The regulatory terms also authorize VA to impose additional 
recordkeeping or reporting requirements as defined in the Terms and 
Conditions of the grant agreement (38 CFR 21.447(a)(2)), request 
additional information as defined in the Terms and Conditions of the 
grant agreement (38 CFR 21.447(a)(3)), and request additional reports 
in the Terms and Conditions of the grant agreement if necessary to 
fully and effectively assess program accountability and effectiveness 
(38 CFR 21.448(b)). Because these information collection requirements 
will depend on the terms and conditions of the grant agreement for a 
particular funding opportunity, VA is not seeking emergency approval 
for these regulatory provisions at this time. Rather, VA will more 
clearly define and articulate these potential record-keeping and 
reporting requirements when it submits the PRA package when it 
undertakes a regular review of this collection.

Regulatory Flexibility Act

    The Secretary hereby certifies that this interim final rule will 
not have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The Secretary estimates that, for any VEPFS grant 
program, no more than ten non-renewable grants will be awarded. For 
each grant awarded, usually one of each, but no more than a few, 
outcomes payors, project coordinators, evaluators, investors, and 
service providers will be involved with the grant program. The goal of 
these grants is to rehabilitate Veterans with service-connected 
disabilities with regard to employment. Thus, an insubstantial number 
of small entities will be affected by this interim final rule and, 
accordingly, there will not be a significant economic impact on such 
affected entities. Therefore, pursuant to 5 U.S.C. 605(b), this rule is 
exempt from the initial and final regulatory flexibility analysis 
requirements of sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This interim final rule will have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number and title for the 
program affected by this document is 64.116, Vocational Rehabilitation 
for Disabled Veterans.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert D. 
Snyder, Chief of Staff, Department of Veterans Affairs, approved this 
document on July 11, 2016, for publication.

    Dated: August 3, 2016.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management Office 
of the Secretary, Department of Veterans Affairs.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Education, 
Employment, Grant programs--education, Grant programs--veterans, Health 
care, Loan programs--education, Loan programs--veterans, Manpower 
training programs, Reporting and recordkeeping requirements, Schools, 
Travel and transportation expenses, Veterans, Vocational education, 
Vocational rehabilitation.

    For the reasons stated in the preamble, VA amends 38 CFR part 21, 
subpart A as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart A--Vocational Rehabilitation and Employment Under 38 U.S.C. 
Chapter 31

0
1. The authority citation for part 21, subpart A, continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 18, 31, and as noted in 
specific sections.


0
2. Add an undesignated center heading and Sec. Sec.  21.440 through 
21.449 to subpart A to read as follows:
Veterans Employment Pay for Success Grant Program
Sec.
21.440 Purpose and scope.
21.441 Definitions.
21.442 VEPFS grants--general.
21.443 Permissible uses of VEPFS grant funds.
21.444 Notice of funding availability.
21.445 Application.
21.446 Scoring and selection.
21.447 VEPFS grant agreement.
21.448 Recipient reporting requirements.
21.449 Recovery of funds.


Sec.  21.440  Purpose and scope.

    Sections 21.440 through 21.449 establish and implement the Veterans 
Employment Pay for Success (VEPFS) grant program, which provides grants 
to eligible entities to fund outcomes payments for projects that are 
successful in accomplishing employment rehabilitation for Veterans with 
service-connected disabilities. These sections apply only to the 
administration of the VEPFS grant program, unless specifically provided 
otherwise.

(Authority: 38 U.S.C. 501(d), 3119)

Sec.  21.441  Definitions.

    For the purposes of Sec. Sec.  21.440 through 21.449, and any 
Notices of Funding Availability (NOFA) issued pursuant to Sec. Sec.  
21.440 through 21.449, the following definitions apply:
    Applicant is an eligible entity that submits an application for a 
VEPFS grant announced in a NOFA.

[[Page 52776]]

    Eligible entity is a public or nonprofit agency, to include 
institutions of higher learning.
    Employment outcome is the employment or earnings of a participant 
in the intervention or control group member after the service period. 
Improving employment outcomes means creating positive impact in terms 
of these outcomes, where the results for individuals that receive the 
intervention are better than the results for a valid control group that 
did not receive the intervention.
    Intervention is a service or technology that is provided to 
individuals and is intended to achieve certain results.
    Outcomes payments are funds that are paid to an investor or service 
provider and that are released only for the achievement of outcomes, as 
compared to those of a control group, that meet target levels that have 
been agreed to in advance of the provision of intervention (i.e., if 
positive impact has been created by the intervention in terms of these 
outcomes). When investors have provided the upfront capital for the 
project, these payments generally cover repayment of the principal 
investment and provide a modest return on investment for any associated 
risks of paying for the intervention upfront.
    Pay for Success (PFS) agreement is a multi-party agreement to 
deliver an innovative or evidence-based intervention intended to 
improve outcomes for a targeted population signed by the entities that 
constitute the project partnership.
    Project partnership is a collaboration among entities that 
negotiate an agreement and execute a project to improve employment 
outcomes for Veterans with service-connected disabilities. The entities 
that may be involved in a project partnership include:
    (1)(i) Outcomes payor. Entity that receives a VEPFS grant and pays 
for outcomes of services that meet target levels that have been agreed 
to in advance of the provision of the intervention.
    (ii) Project coordinator. Facilitates, coordinates, and executes a 
PFS agreement to improve employment outcomes for Veterans with service-
connected disabilities. With respect to other PFS projects, project 
coordinators are sometimes referred to as intermediaries.
    (iii) Evaluator. Independent entity that determines the impact of 
the services provided, including whether the services have resulted in 
employment outcomes that meet target levels that have been agreed to in 
advance of the provision of the intervention.
    (iv) Investor. Person or entity that provides upfront capital to 
cover costs of providing services/delivering an intervention and other 
associated costs before a determination has been made as to whether 
certain employment outcomes have been achieved at pre-set target 
levels.
    (v) Service provider. Entity that delivers an intervention designed 
to achieve improved employment outcomes for Veterans with service-
connected disabilities.
    (2) A full project partnership is a project partnership that 
includes an outcomes payor, evaluator, investor (if the PFS agreement 
involves PFS financing), and service provider. A partial project 
partnership includes an outcomes payor and at least one of the 
following: Evaluator, investor (if the PFS agreement involves PFS 
financing), or service provider.
    Recipient is the entity that receives a VEPFS grant under 
Sec. Sec.  21.440 through 21.449. The recipient is also the outcomes 
payor.
    Secretary refers to the Secretary of Veterans Affairs.
    Service-connected disability is a disability that is ``service-
connected'' as defined in 38 CFR 3.1.
    Social finance strategy is a method for securing financial 
resources using an investment approach that focuses on achieving 
positive social and/or environmental impact with some form of financial 
return.
    Strong evidence constitutes results from previous studies, the 
designs of which can support causal conclusions (i.e., studies with 
high internal validity), that include enough of the range of 
participants and settings to support scaling up to the state, regional, 
or national level (i.e., studies with high external validity).
    Veteran has the same definition as provided in 38 CFR 3.1.
    Veterans Employment Pay for Success (VEPFS) agreement is a PFS 
agreement to deliver an innovative, evidence-based intervention 
intended to improve Veteran employment outcomes.
    Veterans Employment Pay for Success (VEPFS) project is a project 
with a strategy for delivering a service with a goal to significantly 
improve a current condition with respect to unemployment of a target 
Veteran population and sufficient evidence to support the theory behind 
the project using a financial model that includes cost savings by 
funding the project only if it is successful.
    Work-plan is a document that articulates tasks and milestones with 
regard to a particular project.

(Authority: 38 U.S.C. 3119)

Sec.  21.442  VEPFS grants--general.

    (a) VA may award a VEPFS grant only to an eligible entity selected 
under Sec.  21.446.
    (b) The amount of Federal funding available to be awarded in a 
VEPFS grant will be specified in the NOFA.
    (c) A VEPFS grant will be awarded for a minimum of 5 years and a 
pre-determined maximum number of years, beginning on the date on which 
the VEPFS grant is awarded, with the availability of no-cost 
extensions.
    (d) As a condition of receiving a VEPFS grant, a recipient will be 
required to provide matching funds from non-Federal sources equal to or 
greater than the amount of Federal grant funds awarded, to be combined 
with the amount of Federal grant funds awarded and used as specified in 
Sec.  21.443.
    (e) A VEPFS grant award is not a Veterans' benefit. Decisions of 
the Secretary are final and not subject to the same appeal rights as 
decisions related to Veterans' benefits.

(Authority: 38 U.S.C. 3119)

Sec.  21.443  Permissible uses of VEPFS grant funds.

    (a) VEPFS grant funds may be used only to fund outcomes payments if 
an intervention achieves outcomes at a pre-set target level that has 
been agreed to in a PFS agreement before service delivery begins for a 
PFS project with a goal to improve employment outcomes for Veterans 
with service-connected disabilities.
    (b) To pay for the indirect costs of administering a grant, 
regardless of whether an intervention achieves outcomes at a pre-set 
target level, a recipient may:
    (1) Use a Federally approved indirect cost rate (a rate already 
negotiated with the Federal Government);
    (2) Use a 10% de minimis rate of modified total direct costs;
    (3) Negotiate an indirect cost rate for the first time; or
    (4) Claim certain costs directly following 2 CFR 200.413.

(Authority: 38 U.S.C. 3119, 2 CFR 200.414)

Sec.  21.444  Notice of funding availability.

    When funds are available for a VEPFS grant, VA will publish a NOFA 
in the Federal Register and on Grants.gov (http://www.grants.gov). The 
NOFA will identify:
    (a) The location for obtaining grant applications and the specific 
forms that will be required;

[[Page 52777]]

    (b) The date, time, and place for submitting completed grant 
applications;
    (c) The total amount and type of funds available and the maximum 
amount available to a single applicant;
    (d) Information regarding eligibility and the scoring process;
    (e) Any timeframes and manner for payments under the grant; and
    (f) Other information necessary for the VEPFS grant application 
process, as determined by VA, including contact information for the VA 
office that will oversee the VEPFS grant.

(Authority: 38 U.S.C. 501(d), 3119)

Sec.  21.445  Application.

    To apply for a VEPFS grant, eligible entities must submit to VA a 
complete application package in accordance with the instructions in the 
NOFA and include the forms specified in the NOFA. Applications will be 
accepted only through Grants.gov (http://www.grants.gov). A complete 
grant application package, as further described in the NOFA, includes 
standard forms specified in the NOFA and the following:
    (a) Project description, including a description of the 
intervention, the Veteran population to be served, and anticipated 
employment outcomes;
    (b) Description of anticipated project partnership(s), including 
the responsibilities of each of the partner entities, the experience of 
any involved entities with serving Veteran populations, and other 
qualifications of the involved entities that may be relevant in 
carrying out responsibilities of the project partnership. In procuring 
partners such as the project coordinator and investor, procurement 
standards set forth in 2 CFR 200.317 through 200.326 must be followed;
    (c) A work plan, including a budget and timelines;
    (d) Description of applicant's expertise or experience with PFS or 
other social finance strategies or experience administering programs 
that serve Veterans with disabilities;
    (e) Documentation of applicant's ability and capacity to administer 
the project;
    (f) Proof of matching funds already secured, ability to secure 
matching funds, or commitments received; and
    (g) Any additional information as deemed appropriate by VA and set 
forth in the NOFA.

(Authority: 38 U.S.C. 3119)

Sec.  21.446  Scoring and selection.

    (a) Scoring. VA will score only complete applications received from 
eligible entities by the deadline established in the NOFA. VA will 
score applications using the following criteria:
    (1) Project description. Applicant identifies and describes an 
intervention that is designed to improve employment outcomes for 
Veterans with service-connected disabilities through a PFS agreement 
and demonstrates with strong evidence the ability of the intervention 
to meet objectives. Project description should explain and justify the 
need for the intervention, and include concept, size and scope of the 
project, and the Veteran population to be served.
    (2) Project partnership. Applicant provides a description of the 
partnership and the level of partnership (full, partial, or none) 
attained at the time of application.
    (3) Work plan and budget. Applicant provides a work plan that 
describes in detail the timeline for the tasks outlined in the project 
description and proposed milestones. Applicant provides a budget that 
specifies amount of outcome payments and indirect and other relevant 
costs.
    (4) Expertise and capacity. Applicant provides evidence of its past 
experience with PFS or other social finance strategies or experience 
administering programs that serve Veterans with disabilities, and of 
its ability and capacity to successfully administer the project.
    (5) Match. Applicant provides evidence of secured cash matching 
(1:1) funds or of its ability to secure or commitments to receive such 
funds.
    (b) Selection of recipients. All complete applications from 
eligible entities will be scored using the criteria in paragraph (a) of 
this section and ranked in order from highest to lowest total score. 
NOFA announcements may also clarify the selection criteria in paragraph 
(a). The relative weight (point value) for each selection criterion 
will be specified in the NOFA. Point values will be assigned according 
to the criterion's importance in ensuring the successful development 
and implementation of a VEPFS project. VA will award any VEPFS grant on 
the primary basis of scores but will also consider a risk assessment 
evaluation.

(Authority: 38 U.S.C. 3119)

Sec.  21.447  VEPFS grant agreement.

    After an applicant is selected to receive a VEPFS grant in 
accordance with Sec.  21.446, VA will draft a grant agreement to be 
executed by VA and the applicant. Upon execution of the VEPFS grant 
agreement, VA will obligate grant funds to cover the amount of the 
approved grant, subject to the availability of funding. The VEPFS grant 
agreement will provide that the recipient agrees, and will ensure that 
each subcontractor (if applicable) agrees, to:
    (a) Operate the program in accordance with the provisions of 
Sec. Sec.  21.440 through 21.449, 2 CFR part 200, and the applicant's 
VEPFS grant application;
    (b) Comply with such other terms and conditions, including 
recordkeeping and reports for program monitoring and evaluation 
purposes, as VA may establish in the Terms and Conditions of the grant 
agreement for purposes of carrying out the VEPFS program in an 
effective and efficient manner; and
    (c) Provide additional information that VA requests with respect 
to:
    (1) Program effectiveness, as defined in the Terms and Conditions 
of the grant agreement;
    (2) Compliance with the Terms and Conditions of the grant 
agreement; and
    (3) Criteria for evaluation, as defined in the Terms and Conditions 
of the grant agreement.

(Authority: 38 U.S.C. 501(d), 3119)

Sec.  21.448  Recipient reporting requirements.

    (a) Recipients must submit to VA a quarterly report 30 days after 
the close of each Federal fiscal quarter of the grant period. The 
report must include the following information:
    (1) A detailed record of the time involved and resources expended 
administering the VEPFS program.
    (2) The number of Veterans served, including demographics of this 
population.
    (3) The types of employment assistance provided.
    (4) A full accounting of VEPFS grant funds used or unused during 
the quarter.
    (5) A comparison of accomplishments related to the objectives of 
the award.
    (6) An explanation for any goals not met.
    (7) An analysis and explanation for any cost overruns.
    (b) VA may request additional reports in the Terms and Conditions 
of the grant agreement if necessary to allow VA to fully and 
effectively assess program accountability and effectiveness.

(Authority: 38 U.S.C. 501(d), 3119, 2 CFR 200.327-200.328)

Sec.  21.449  Recovery of funds.

    If a recipient fails to comply with any Federal statutes or 
regulations or the terms and conditions of an award made under 
Sec. Sec.  21.440 through 21.449, VA may impose additional conditions 
as specified in 2 CFR 200.207 or, if non-compliance cannot be remedied, 
take any appropriate actions specified in 2

[[Page 52778]]

CFR part 200 as remedies for non-compliance.

(Authority: 38 U.S.C. 501(d), 3119, 2 CFR 200.338 through 200.342)


[FR Doc. 2016-18721 Filed 8-9-16; 8:45 am]
BILLING CODE 8320-01-P



                                           52770            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

                                                                                                               TABLE 1—Continued
                                           2. Save the Date Fireworks Display, Ellis Island Safety Zone; 33 CFR                 • Launch site: A barge located between Federal Anchorages 20–A
                                             165.160 (2.2).                                                                       and 20–B, in approximate position 40°41′45″ N., 074°02′09″ W.
                                                                                                                                  (NAD 1983) about 365 yards east of Ellis Island. This Safety Zone is
                                                                                                                                  a 360-yard radius from the barge.
                                                                                                                                • Date: October 27, 2016.
                                                                                                                                • Time: 8:30 p.m.–10:00 p.m.


                                                                                                                        TABLE 2
                                           1. Rose Pitonof Swim, Swim Event; 33 CFR 165.160 (4.2) ....................          • Location: Participants will swim between Manhattan, New York and
                                                                                                                                  the shore of Coney Island, New York transiting through the Upper
                                                                                                                                  New York Bay, under the Verrazano-Narrows Bridge and south in
                                                                                                                                  the Lower New York Bay. The route direction is determined by the
                                                                                                                                  predicted tide state and direction of current on the scheduled day of
                                                                                                                                  the event.
                                                                                                                                • This Safety Zone includes all waters within a 100-yard radius of
                                                                                                                                  each participating swimmer.
                                                                                                                                • Date: August 13, 2016.
                                                                                                                                • Time: 6:00 a.m.–12:00 p.m.



                                             Under the provisions of 33 CFR                        SUMMARY:    The Department of Veterans                comments may be viewed online
                                           165.160, vessels may not enter the safety               Affairs (VA) is establishing a grant                  through the Federal Docket Management
                                           zones unless given permission from the                  program (Veterans Employment Pay for                  System (FDMS) at www.Regulations.gov.
                                           COTP or a designated representative.                    Success (VEPFS)) under the authority of               FOR FURTHER INFORMATION CONTACT:
                                           Spectator vessels may transit outside the               the U.S.C. to award grants to eligible                Patrick Littlefield, Director, VA Center
                                           safety zones but may not anchor, block,                 entities to fund projects that are                    for Innovation, Department of Veterans
                                           loiter in, or impede the transit of other               successful in accomplishing                           Affairs, (08), 810 Vermont Ave. NW.,
                                           vessels. The Coast Guard may be                         employment rehabilitation for Veterans                Washington, DC, (202) 256–7176. (This
                                           assisted by other Federal, State, or local              with service-connected disabilities. VA               is not a toll-free number.)
                                           law enforcement agencies in enforcing                   will award grants on the basis of an                  SUPPLEMENTARY INFORMATION: VA’s
                                           this regulation.                                        eligible entity’s proposed use of a Pay               Vocational Rehabilitation &
                                             This document is issued under                         for Success (PFS) strategy to achieve                 Employment (VR&E) Service provides
                                           authority of 33 CFR 165.160(a) and 5                    goals. This interim final rule establishes            services and assistance necessary to
                                           U.S.C. 552(a). In addition to this                      regulations for awarding a VEPFS grant,               enable Veterans with compensable
                                           notification in the Federal Register, the               including the general process for                     service-connected disabilities and
                                           Coast Guard will provide mariners with                  awarding the grant, criteria and                      employment barriers to achieve
                                           advanced notification of enforcement                    parameters for evaluating grant                       maximum independence in daily living
                                           periods via the Local Notice to Mariners                applications, priorities related to the               and, to the maximum extent feasible, to
                                           and marine information broadcasts. If                   award of a grant, and general                         become employable and to obtain and
                                           the COTP determines that a safety zone                  requirements and guidance for                         maintain suitable employment. (A
                                           need not be enforced for the full                       administering a VEPFS grant program.                  Veteran with a noncompensable service-
                                           duration stated in this notice, a                       DATES: Effective Date: This rule is                   connected disability is not entitled to
                                           Broadcast Notice to Mariners may be                     effective on August 10, 2016.                         vocational rehabilitation services and
                                           used to grant general permission to                        Comment Date: Comments must be                     assistance under chapter 31 of title 38,
                                           enter the safety zone.                                  received on or before October 11, 2016.               United States Code. See 38 U.S.C. 3102.)
                                             Dated: July 22, 2016.                                 ADDRESSES: Written comments may be                    Section 3119 of title 38, United States
                                           M.H. Day,                                               submitted through                                     Code, authorizes the Secretary of
                                                                                                   www.Regulations.gov; by mail or hand-                 Veterans Affairs (Secretary) to make
                                           Captain, U.S. Coast Guard, Captain of the
                                           Port New York.                                          delivery to Director, Regulation Policy               grants to or contract with public or
                                                                                                   and Management (02REG), Department                    nonprofit agencies, including
                                           [FR Doc. 2016–18894 Filed 8–9–16; 8:45 am]
                                                                                                   of Veterans Affairs, 810 Vermont                      institutions of higher learning, to
                                           BILLING CODE 9110–04–P
                                                                                                   Avenue NW., Room 1068, Washington,                    advance ‘‘the knowledge, methods,
                                                                                                   DC 20420; or by fax to (202) 273–9026.                techniques, and resources available for
                                                                                                   Comments should indicate that they are                use in rehabilitation programs for
                                           DEPARTMENT OF VETERANS                                  submitted in response to ‘‘RIN 2900–                  veterans.’’ Section 3119 specifically
                                           AFFAIRS                                                 AP72—Veterans Employment Pay for                      authorizes the Secretary to make grants
                                                                                                   Success Grant Program.’’ Copies of                    to such agencies to conduct or provide
                                           38 CFR Part 21                                          comments received will be available for               support for projects which are
                                                                                                   public inspection in the Office of                    ‘‘designed to increase the resources and
                                           RIN 2900–AP72                                           Regulation Policy and Management,                     potential for accomplishing the
Lhorne on DSK30JT082PROD with RULES




                                                                                                   Room 1068, between the hours of 8:00                  rehabilitation of disabled veterans.’’
                                           Veterans Employment Pay for Success                     a.m. and 4:30 p.m., Monday through                    (See also implementing regulation at 38
                                           Grant Program                                           Friday (except holidays). Please call                 CFR 21.390.)
                                           AGENCY:    Department of Veterans Affairs.              (202) 461–4902 for an appointment.                       PFS is a strategy for successfully
                                                                                                   (This is not a toll-free number.) In                  attaining positive social or
                                           ACTION:   Interim final rule.
                                                                                                   addition, during the comment period,                  environmental outcomes by paying for


                                      VerDate Sep<11>2014   13:57 Aug 09, 2016   Jkt 238001   PO 00000   Frm 00030   Fmt 4700   Sfmt 4700   E:\FR\FM\10AUR1.SGM   10AUR1


                                                            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations                                         52771

                                           an intervention to achieve such                         support for projects which are designed               § 21.441    Definitions.
                                           outcomes only after the intervention                    to increase the potential for
                                                                                                                                                            Section 21.441 defines terms used in
                                           produces these outcomes. Using a PFS                    accomplishing the rehabilitation of
                                                                                                                                                         §§ 21.440–21.449 and any Notices of
                                           strategy, a party to an agreement agrees                disabled Veterans broadly, to allow for               Funding Availability (NOFA) issued
                                           to pay for services for specific people or              the funding of projects that serve                    pursuant to §§ 21.440–21.449. The
                                           communities in need of particular                       Veterans with either compensable or                   definitions are set out in the regulatory
                                           services only if and when an agreed-                    noncompensable service-connected                      text, but we elaborate on some of them
                                           upon set of outcomes related to meeting                 disabilities. By funding projects that                as follows:
                                           the people’s or communities’ needs has                  serve Veterans with either compensable
                                           been achieved or a level of impact has                                                                           ‘‘Eligible entity’’ is defined as a public
                                                                                                   or noncompensable service-connected                   or nonprofit agency, to include
                                           been verified. Instead of funding                       disabilities, there is increased potential
                                           services regardless of the results,                                                                           institutions of higher learning. Section
                                                                                                   to discover new techniques and                        3119 of title 38, United States Code,
                                           payments are made only if interventions                 resources for use in VA’s VR&E program
                                           achieve the outcomes agreed upon in                                                                           provides authorization to make grants to
                                                                                                   to enable Veterans who qualify for                    public or nonprofit agencies, including
                                           advance. For example, instead of paying                 VR&E services to become employable
                                           for the provision of job training without                                                                     institutions of higher learning. We
                                                                                                   and to obtain and maintain suitable                   interpret the term ‘‘nonprofit agency,’’
                                           knowing whether such training will
                                                                                                   employment.                                           as used in Sec. 3119, to include tax-
                                           have a successful result, an entity might
                                           use a PFS strategy to pay for the                          Accordingly, under the authority of                exempt, incorporated or unincorporated
                                           provision of job training only when                     Sec. 3119, VA will award grants to                    organizations that serve the public
                                           individuals gain stable employment in                   eligible entities that will become                    interest and generally have a charitable,
                                           good jobs. When the party committed to                  ‘‘outcomes payors,’’ to administer                    educational, scientific, religious, or
                                           pay for outcomes is a Government                        payment for outcomes of interventions                 literary goal. We interpret the term
                                           entity, taxpayers will not have to pay for              that are successful in accomplishing                  ‘‘public agency’’, as used in Sec. 3119,
                                           ineffective services. However, the party                employment rehabilitation for Veterans                to include the government of the United
                                           that provides services may not have the                 with service-connected disabilities. In               States or of a State or political
                                           funding for the services before outcomes                other words, VA will fund outcomes of                 subdivision of a State.
                                           are measured. PFS agreements can                        projects that achieve favorable                          ‘‘Employment outcome’’ is defined as
                                           incorporate PFS financing, sometimes                    employment outcomes related to                        the employment or earnings of a
                                           referred to as ‘‘social impact bonds,’’ to              success in the ability or potential to                participant in the intervention or
                                           cover the costs of the services until                   secure or sustain stable employment or                control group member after the service
                                           success is achieved and payments are                    to achieve increased earnings of                      period. The VEPFS program will
                                           due. PFS financing involves third-party,                Veterans with service-connected                       measure certain outcomes, including
                                           independent investors that provide the                  disabilities. The funding will be referred            competitive employment, skill
                                           financing necessary to carry out the                    to as ‘‘outcomes payments’’ and the                   development, achieving a sustained
                                           intervention. In addition, a PFS model                  grant known as the ‘‘Veterans                         period of employment, wage-earnings,
                                           typically involves a project coordinator                                                                      and achieving employment that aligns
                                                                                                   Employment Pay for Success (VEPFS)’’
                                           or intermediary to facilitate and manage                                                                      with the interests and aptitude of the job
                                                                                                   grant. This interim final rule establishes
                                           the project, a service provider to deliver                                                                    seeker. Improving employment
                                                                                                   regulations for awarding a VEPFS grant,
                                           the intervention, and an independent                                                                          outcomes means creating positive
                                                                                                   including the general process for                     impact in terms of these outcomes,
                                           evaluator to determine whether the                      awarding the grant, criteria and
                                           intervention achieves the desired                                                                             where the results for individuals that
                                                                                                   parameters for evaluating grant                       receive the intervention are better than
                                           outcomes.
                                                                                                   applications, priorities related to the               the results for a valid control group that
                                              There is a need to find new,                         award of a grant, and general
                                           innovative methods for rehabilitating                                                                         did not receive the intervention.
                                                                                                   requirements and guidance for
                                           Veterans with compensable service-                                                                               ‘‘Intervention’’ is defined as a service
                                                                                                   administering a VEPFS grant program.
                                           connected disabilities (as defined in 38                                                                      or technology that is provided to
                                           CFR 3.1(k)) who qualify for benefits                    § 21.440     Purpose and Scope.                       individuals and intended to achieve
                                           under VA’s VR&E program so that they                                                                          certain results. Examples of service
                                           become employable and are ultimately                      Section 21.440 sets forth the purpose               interventions or technological
                                           able to obtain and maintain suitable                    of a VEPFS grant program and explains                 interventions to improve Veteran
                                           employment. Through PFS grant                           what the program provides. This section               employment outcomes include, but are
                                           programs, which may serve various                       indicates that VA may provide a grant                 not limited to, support services,
                                           Veteran populations including those                     to an eligible entity to fund outcomes                employment coaching, mental health
                                           Veterans with noncompensable service-                   payments for a project that achieves                  treatment, vocational training,
                                           connected disabilities who do not                       favorable employment outcomes for                     occupational therapy, community
                                           qualify for VR&E benefits, we hope to                   Veterans with service-connected                       engagement, and outreach.
                                           obtain information to establish new,                    disabilities. There is a need to find new                ‘‘Project partnership’’ is defined as a
                                           innovative methods for rehabilitating                   and innovative methods for                            collaboration among entities that
                                           Veterans who qualify for VR&E benefits.                 rehabilitating Veterans with                          negotiate an agreement and execute a
                                           PFS offers an economical mechanism,                     compensable service-connected                         project to improve employment
                                           which can save taxpayers’ money, for                    disabilities with regard to employment                outcomes for Veterans with service-
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                                           exploring the resources and techniques                  and, as noted above, the VEPFS grant                  connected disabilities. For the purpose
                                           that are available for rehabilitating                   program offers an economical                          of the VEPFS grant program, a project
                                           Veterans with service-connected                         mechanism, which can save taxpayers’                  partnership is not a distinct legal entity.
                                           disabilities with regard to employment.                 money, for exploring the resources and                Section 21.441 includes definitions for
                                           We interpret the authority in Sec. 3119                 techniques that may be available to                   the entities that may be involved in a
                                           to award grants to conduct or provide                   address that need.                                    project partnership.


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                                           52772            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

                                              ‘‘Social finance strategy’’ is defined as            minimum of 5 years and a pre-                         indirect cost rate (a rate already
                                           a method for securing financial                         determined maximum number of years,                   negotiated with the Federal
                                           resources using an investment approach                  as specified in the NOFA, beginning on                Government), use a 10% de minimis
                                           that focuses on achieving positive social               the date on which the VEPFS grant is                  rate of modified total direct costs,
                                           and/or environmental impact with some                   awarded, with the availability of no-cost             negotiate an indirect cost rate for the
                                           form of financial return. Examples of                   extensions. At the end of the pre-                    first time, or claim certain costs directly
                                           social finance strategies include: (1)                  determined maximum period, the                        following 2 CFR 200.413 so as to not
                                           Matching taxpayer dollars with non-                     effectiveness of the project will be                  limit the pool of eligible applicants to
                                           government contributions to extend the                  assessed to determine the project’s                   entities that will use a particular
                                           impact of not-for-profit organizations;                 success. Five years is the minimum                    permissible option. This is consistent
                                           (2) simplifying access to government                    length of time necessary to maximize                  with regulatory guidance to Federal
                                           funding for community organizations                     the effectiveness of a project and obtain             agencies that provide grant awards to
                                           and institutions of higher learning.                    meaningful data on a project’s success                non-Federal entities, including States,
                                              ‘‘Strong evidence’’ is defined as                    through periodic reporting. This                      local governments, Indian tribes,
                                           results from previous studies, the                      timeframe allows 1 year to develop,                   institutions of higher education, and
                                           designs of which can support causal                     refine and launch the project, 3 years for            non-profit organizations issued by the
                                           conclusions (i.e., studies with high                    service delivery to produce outcomes                  Office of Management and Budget
                                           internal validity), which include enough                and data, and 1 year for a thorough                   (OMB) and codified in in part 200 of
                                           of the range of participants and settings               evaluation of outcomes. Section                       title 2 of the Code of Federal
                                           to support scaling up to the state,                     21.442(d) specifies that a recipient must             Regulations. 2 CFR 200.414; see also 2
                                           regional, or national level (i.e., studies              provide matching funds from non-                      CFR 200.69. These administrative costs
                                           with high external validity). The                       Federal sources that are at least equal to            may be claimed before outcomes are
                                           following are examples of strong                        or greater than the amount of Federal                 measured and regardless of whether
                                           evidence: (1) More than one well-                       grant funds awarded, which will be                    outcomes are achieved at pre-set levels.
                                           designed and well-implemented                           combined with the amount of Federal
                                           experimental study or well-designed                                                                           § 21.444 Notice of Funding
                                                                                                   grant funds awarded to be used to fund
                                           and well-implemented quasi-                                                                                   Availability.
                                                                                                   the proposed PFS project as a condition
                                           experimental study that supports the                    of receiving a VEPFS grant. Requiring                    Section 21.444 states that when funds
                                           effectiveness of the practice, strategy, or             matching funds increases the amount of                are available to award a VEPFS grant,
                                           program; or (2) one large, well-designed                available funding for VEPFS projects.                 VA will publish a NOFA announcing
                                           and well-implemented randomized                         Section 21.442(e) specifies that a VEPFS              the funding opportunity in the Federal
                                           controlled, multisite trial that supports               grant is not a Veterans’ benefit, and,                Register and on Grants.gov (http://
                                           the effectiveness of the practice,                      therefore, any decisions of the Secretary             www.grants.gov) providing specific
                                           strategy, or program.                                   as to whether to award a VEPFS grant                  details about the opportunity. Section
                                              ‘‘Work-plan’’ is defined as a                        are final and not subject to the same                 21.444, in paragraphs (a)–(f), lists
                                           document that articulates tasks and                     rights of appeal as decisions related to              generally the information the NOFA
                                           milestones with regard to a particular                  Veterans’ benefits.                                   will include. Section 200.203 of title 2,
                                           project. A work plan contains a detailed                                                                      Code of Federal Regulations, requires
                                           overview of all activities that will be                 § 21.443 Permissible Uses of VEPFS                    the issuance of a NOFA, which includes
                                           undertaken to complete a project, and                   Grant Funds.                                          specific identifying information,
                                           the goals, objectives, outcomes,                           Section 21.443(a) specifies that                   information describing the funding
                                           responsible parties, and timeline for                   VEPFS grant funds may be used to make                 opportunity, and information regarding
                                           each task of a project, which collectively              outcomes payments only if an                          the award, eligibility, application,
                                           serve as the roadmap for execution of                   intervention achieves outcomes at a pre-              application review, and Federal award
                                           project tasks.                                          set level that has been agreed to in a PFS            administration. OMB requires the
                                                                                                   agreement before service delivery begins              issuance of a NOFA and publication of
                                           § 21.442 VEPFS Grants—General.
                                                                                                   for a PFS project with a goal to improve              this information to ensure that eligible
                                              Section 21.442 provides general                      employment outcomes for Veterans with                 entities have the information required to
                                           information pertaining to VEPFS grants.                 service-connected disabilities. As stated             apply for grants.
                                           Section 21.442(a) establishes that only                 above, the reason for using a PFS
                                           an eligible entity may receive a VEPFS                                                                        § 21.445 Application.
                                                                                                   strategy is to avoid using taxpayer
                                           grant. Section 21.442(b) establishes that               dollars for ineffective services and                    Section 21.445 identifies VEPFS grant
                                           the available grant funding amount will                 therefore save taxpayer money. VA is                  application procedures and the
                                           be specified in the NOFA. The amount                    specifically funding PFS projects that                information required to constitute a
                                           of funding VA may provide in a VEPFS                    aim to improve employment outcomes                    complete application package. This
                                           grant is not limited by or otherwise                    for Veterans with service-connected                   section requires eligible entities to
                                           specified in statute. In addition, VA may               disabilities to carry out Congress’                   submit a complete grant application
                                           combine its funds with funds of another                 intention that VA ‘‘advance the                       package, in accordance with
                                           Federal entity to increase the amount                   knowledge, methods, techniques, and                   instructions provided in the NOFA
                                           available for a VEPFS project. VA will                  resources available for use in                        through Grants.gov (http://
                                           determine the amount of funding                         rehabilitation programs for veterans’’                www.grants.gov) to apply for a VEPFS
                                           available for an individual VEPFS                       and increase the ‘‘potential for                      grant. Use of this Web site is the easiest
                                           project, including any contributions                    accomplishing the rehabilitation of                   and most efficient way to process grant
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                                           from another Federal agency, on a case-                 disabled veterans.’’                                  applications. Furthermore, eligible
                                           by-case basis and will announce the                        In addition, to cover the indirect costs           entities submitting an application for a
                                           amount of available grant funding for                   of administering the grant (costs                     VEPFS grant will likely be familiar with
                                           that VEPFS project in the applicable                    associated with general administration                this Web site. In describing the
                                           NOFA. Section 21.442(c) states that the                 and expenses), § 21.443(b) allows a                   information a complete application
                                           period for a VEPFS grant will be a                      recipient to use a Federally approved                 package must contain, paragraph (a)


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                                                            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations                                       52773

                                           requires the complete application to                    deadline established in the NOFA and                  § 21.448 Recipient Reporting
                                           contain a project description, including                identifies the criteria to be used in                 Requirements.
                                           a description of the intervention, the                  selecting a recipient. Selection of a                    Section 21.448 requires recipients to
                                           Veteran population to be served, and                    recipient will be based on the likelihood             submit a quarterly report 30 days after
                                           anticipated employment outcomes. VA                     of successful implementation of the                   the close of each Federal fiscal quarter
                                           needs this information to determine                     project and the likelihood that the                   of the grant period that includes a
                                           whether the project proposed has a                      project will meet objectives. The                     detailed record of the time involved and
                                           reasonable chance of providing positive                 information described in § 21.446(a)                  resources expended administering the
                                           employment outcomes for Veterans with                   will allow VA to make such                            VEPFS program; the number of Veterans
                                           service-connected disabilities.                         determination regarding the likelihood                served, including demographics of this
                                           Paragraph (b) requires the complete                     of project success.                                   population; the types of employment
                                           application to contain a description of                   Section 21.446(b) indicates that                    assistance provided; a full accounting of
                                           the anticipated project partnership(s),                 NOFA announcements may clarify the                    VEPFS grant funds used or unused
                                           including the responsibilities of each of               selection criteria in paragraph (a) and               during the quarter; a comparison of
                                           the partner entities, the experience of                 will specify the relative weight (point               accomplishments related to the
                                           any involved entities with serving                      value) assigned for each selection
                                           Veteran populations, and other                                                                                objectives of the award; an explanation
                                                                                                   criterion according to the criterion’s                for any goals not met; and an analysis
                                           qualifications of the involved entities                 importance in ensuring the successful
                                           that may be relevant in carrying out                                                                          and explanation for any cost overruns.
                                                                                                   development and implementation of a                   With such information, VA can
                                           responsibilities of the project                         VEPFS project and that eligible entities
                                           partnership. VA needs this information                                                                        effectively analyze program
                                                                                                   will be ranked in order from highest to               performance and ensure that a recipient
                                           to assess the likelihood of success an                  lowest total score. This section also
                                           applicant will have carrying out a                                                                            is using grant funds in accordance with
                                                                                                   indicates that VA will award any VEPFS                the grant agreement. In addition,
                                           VEPFS project. In addition, paragraph                   grant on the primary basis of scores but
                                           (b) informs applicants that, in procuring                                                                     § 21.448 requires recipients to provide
                                                                                                   will also consider a risk assessment                  additional reports if necessary to allow
                                           partners such as the project coordinator                evaluation.
                                           and investor, procurement standards set                                                                       VA to assess program accountability and
                                           forth in 2 CFR 200.317–200.326 must be                  § 21.447     VEPFS Grant Agreement.                   effectiveness on an ongoing basis.
                                           followed. Paragraph (c) requires the                                                                          § 21.449    Recovery of Funds.
                                                                                                      Section 21.447 states that VA will
                                           complete application to include a work
                                                                                                   draft a grant agreement for execution                    Section 21.449 specifies that VA can
                                           plan with a budget and timelines. These
                                                                                                   between VA and the applicant selected                 impose additional conditions as
                                           disclosures will help reviewers assess
                                                                                                   to receive a VEPFS grant, and VA will                 specified in 2 CFR 200.207 if a recipient
                                           how close the project is to beginning to
                                                                                                   obligate the grant funds to cover the                 fails to comply with any Federal statutes
                                           provide services and the extent to which
                                                                                                   amount of the approved grant, subject to              or regulations or the terms and
                                           an applicant has considered all aspects
                                                                                                   the availability of funding, upon                     conditions of an award made under
                                           of planning. Paragraph (d) requires the
                                           complete application to contain a                       execution of the agreement. This section              §§ 21.440–21.449. Section 21.449 also
                                           description of applicant’s expertise or                 also states that the VEPFS grant                      allows VA to take any appropriate
                                           experience with PFS or other social                     agreement will provide that the                       actions specified in 2 CFR part 200 as
                                           finance strategies or experience                        recipient agrees (and will ensure that                remedies for non-compliance if non-
                                           administering programs that serve                       any subcontractors agree) to: Operate                 compliance cannot be remedied. These
                                           Veterans with disabilities. Paragraph (e)               the program in accordance with the                    measures help safeguard Federal funds
                                           requires the complete application to                    provisions of §§ 21.440–21.449, 2 CFR                 and ensure appropriate use of the
                                           include documentation of an applicant’s                 part 200, and the applicant’s VEPFS                   VEPFS grant funds awarded.
                                           ability and capacity to administer the                  grant application; comply with such
                                                                                                   other terms and conditions, including                 Administrative Procedure Act
                                           project. Having the information
                                           obtained from the requirements of                       recordkeeping and reports for program                    In accordance with 5 U.S.C. 553(b)(B)
                                           paragraphs (d) and (e) will also allow                  monitoring and evaluation purposes, as                and (d)(3), the Secretary finds that there
                                           VA to assess the likelihood of success of               VA may establish for purposes of                      is good cause to dispense with the
                                           a VEPFS project. Paragraph (f) requires                 carrying out the VEPFS program in an                  opportunity for prior notice and
                                           the complete application to include                     effective and efficient manner; and                   comment and good cause to publish this
                                           proof of matching funds already                         provide any additional information VA                 rule with an immediate effective date.
                                           secured, the applicant’s ability to secure              requests in the manner and timeframe                  The Secretary finds that it is
                                           matching funds, or commitments of                       VA specifies. Part 200 provides uniform               impracticable and contrary to the public
                                           matching funds the applicant has                        guidance and government-wide terms                    interest to delay this rule for the
                                           received. Reviewers need this                           and conditions for the management of                  purpose of soliciting prior public
                                           documentation to confirm an                             awards and the administration of                      comment or to have a delayed effective
                                           applicant’s ability to meet the VEPFS                   Federal grants, and this rulemaking                   date. As stated above, the Secretary is
                                           grant funding requirements. Paragraph                   provides additional guidance and                      issuing this rule because there is a need
                                           (g) requires that the complete                          conditions for the administration of                  to find new methods for rehabilitating
                                           application contain any additional                      VEPFS grants in particular. Adherence                 Veterans with service-connected
                                           information VA deems appropriate and                    to the government-wide rules is                       disabilities so that they become
                                           sets out in the NOFA so that VA can                     mandatory and compliance with the                     employable and are able to obtain and
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                                           tailor the NOFA as necessary.                           additional rules specific to VEPFS                    maintain suitable employment. This
                                                                                                   grants will ensure program integrity                  rulemaking provides the opportunity for
                                           § 21.446 Scoring and Selection.                         across any VEPFS grants VA awards. In                 the discovery of new methods for
                                             Section 21.446(a) states that VA will                 addition, timely and accurate reporting               rehabilitating Veterans with service-
                                           score only complete applications                        is critical to allow VA to evaluate the               connected disabilities with regard to
                                           received from eligible entities by the                  VEPFS program.                                        employment using a strategy that will


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                                           52774            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

                                           save taxpayer money. However, the                       Materially alter the budgetary impact of              including obtaining a copy of the
                                           funding for a grant which would be                      entitlements, grants, user fees, or loan              proposed information collection
                                           awarded based on a NOFA to be                           programs or the rights and obligations of             instrument with instructions, should be
                                           published concurrently with this                        recipients thereof; or (4) Raise novel                directed to Patrick Littlefield, Director,
                                           interim final rule, and which will be                   legal or policy issues arising out of legal           VA Center for Innovation, Department
                                           used to fund a project that achieves                    mandates, the President’s priorities, or              of Veterans Affairs, (08), 810 Vermont
                                           favorable employment outcomes for                       the principles set forth in the Executive             Ave. NW., Washington, DC, (202) 256–
                                           Veterans with a service-connected                       Order.’’                                              7176. We request written comments and
                                           disability of post-traumatic stress                        The economic, interagency,                         suggestions from the public and affected
                                           disorder, is available only in this                     budgetary, legal, and policy                          agencies concerning the proposed
                                           current fiscal year and must be obligated               implications of this regulatory action                emergency collection of information.
                                           by September 30, 2016, if it is to be used              have been examined, and it has been                     The Department considers comments
                                           for such purpose. To provide sufficient                 determined not to be a significant                    by the public on proposed collections of
                                           time to obligate the funds by September                 regulatory action under Executive Order               information in—
                                           30, 2016, the regulations established by                12866. VA’s impact analysis can be                      • Evaluating whether the proposed
                                           this rulemaking must be in effect by                    found as a supporting document at                     collections of information are necessary
                                           August 9, 2016. Failure to obligate the                 http://www.regulations.gov, usually                   for the proper performance of the
                                           funds by September 30, 2016, will cause                 within 48 hours after the rulemaking                  functions of the Department, including
                                           the funds to expire.                                    document is published. Additionally, a                whether the information will have
                                             Because this interim final rule will                  copy of the rulemaking and its impact                 practical utility;
                                           serve an important Veterans’ need in an                 analysis are available on VA’s Web site                 • Evaluating the accuracy of the
                                           economical way, which would not be                      at http://www.va.gov/orpm/, by                        Department’s estimate of the burden of
                                           possible if publication were to be                      following the link for ‘‘VA Regulations               the proposed collections of information,
                                           delayed, the Secretary finds that it is                 Published From FY 2004 Through Fiscal                 including the validity of the
                                           impracticable and contrary to the public                Year to Date.’’                                       methodology and assumptions used;
                                           interest to delay this rule for the
                                                                                                   Paperwork Reduction Act                                 • Enhancing the quality, usefulness,
                                           purpose of soliciting advance public                                                                          and clarity of the information to be
                                           comment or to have a delayed effective                    This interim final rule includes                    collected; and
                                           date. Accordingly, VA is issuing this                   provisions constituting collections of                  • Minimizing the burden of the
                                           rule as an interim final rule with an                   information under the Paperwork                       collections of information on those who
                                           immediate effective date. We will                       Reduction Act of 1995 (44 U.S.C. 3501–                are to respond, including through the
                                           consider and address any comments                       3521) that require approval by OMB.                   use of appropriate automated,
                                           received within 60 days of the date this                Specifically, sections 21.445, 21.447,                electronic, mechanical, or other
                                           interim final rule is published in the                  and 21.448 contain collections of                     technological collection techniques or
                                           Federal Register.                                       information under the Paperwork                       other forms of information technology,
                                                                                                   Reduction Act of 1995. VA has                         e.g., permitting electronic submission of
                                           Executive Orders 12866 and 13563                        submitted the following information                   responses.
                                              Executive Orders 12866 and 13563                     collection request to OMB for review                    The collections of information
                                           direct agencies to assess the costs and                 and clearance in accordance with the                  contained in 38 CFR 21.445, 21.447, and
                                           benefits of available regulatory                        emergency review procedures of the                    21.448 are described immediately
                                           alternatives and, when regulation is                    Paperwork Reduction Act of 1995. The                  following this paragraph, under their
                                           necessary, to select regulatory                         proposed information collection is                    respective titles.
                                           approaches that maximize net benefits                   published to obtain comments from the                   Title: Grant Applications.
                                           (including potential economic,                          public and affected agencies. An                        • Summary of collection of
                                           environmental, public health and safety                 emergency approval under the                          information: The new collection of
                                           effects, and other advantages;                          Paperwork Reduction Act is only valid                 information in proposed 38 CFR 21.445
                                           distributive impacts; and equity).                      for 180 days. Comments should be                      would require applicants to submit a
                                           Executive Order 13563 (Improving                        directed to OMB, Office of Information                complete VEPFS grant application.
                                           Regulation and Regulatory Review)                       and Regulatory Affairs, Attention:                      • Description of need for information
                                           emphasizes the importance of                            Department of Veterans Affairs Desk                   and proposed use of information: The
                                           quantifying both costs and benefits,                    Officer, Washington, DC 20530, with                   collection of information is necessary to
                                           reducing costs, harmonizing rules, and                  copies sent by mail or hand delivery to               award grants to eligible entities. VA will
                                           promoting flexibility. Executive Order                  the Director, Regulation Policy and                   use this information to decide whether
                                           12866 (Regulatory Planning and                          Management (02REG), Department of                     an applicant meets the requirements
                                           Review) defines a ‘‘significant                         Veterans Affairs, 810 Vermont Avenue                  and satisfies the scoring criteria for
                                           regulatory action’’ requiring review by                 NW., Room 1068, Washington, DC                        award of VEPFS grants under 38 U.S.C.
                                           OMB, unless OMB waives such review,                     20420; fax to (202) 273–9026; email to                3119.
                                           as ‘‘any regulatory action that is likely               www.Regulations.gov. Comments                           • Description of likely respondents:
                                           to result in a rule that may: (1) Have an               should indicate that they are submitted               Public and non-profit entities, including
                                           annual effect on the economy of $100                    in response to ‘‘RIN 2900–AP72.’’                     institutions of higher learning, that have
                                           million or more or adversely affect in a                  A regular review of this information                an interest in serving Veterans with
                                           material way the economy, a sector of                   collection will also be undertaken and                service-connected disabilities.
                                           the economy, productivity, competition,                 announced in a future Federal Register                  • Estimated number of respondents:
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                                           jobs, the environment, public health or                 notice indicating approval of this                    25 in FY 2016; 25 in FY 2017; 25 in FY
                                           safety, or State, local, or tribal                      collection of information under the                   2018.
                                           governments or communities; (2) Create                  emergency review procedures of the                      • Estimated frequency of responses:
                                           a serious inconsistency or otherwise                    Paperwork Reduction Act. All                          This is a one-time collection.
                                           interfere with an action taken or                       comments and suggestions, or questions                  • Estimated average burden per
                                           planned by another agency; (3)                          regarding additional information,                     response: 80 hours.


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                                                            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations                                           52775

                                              • Estimated total annual reporting                   significant economic impact on a                      Conflict of interests, Education,
                                           and recordkeeping burden: 2,000 hours                   substantial number of small entities as               Employment, Grant programs—
                                           in FY 2016; 2,000 hours in FY 2017;                     they are defined in the Regulatory                    education, Grant programs—veterans,
                                           2,000 hours in 2018.                                    Flexibility Act, 5 U.S.C. 601–612. The                Health care, Loan programs—education,
                                              Title: Quarterly Fiscal Reports.                     Secretary estimates that, for any VEPFS               Loan programs—veterans, Manpower
                                              • Summary of collection of                           grant program, no more than ten non-                  training programs, Reporting and
                                           information: The new collection of                      renewable grants will be awarded. For                 recordkeeping requirements, Schools,
                                           information in proposed 38 CFR                          each grant awarded, usually one of each,              Travel and transportation expenses,
                                           21.447(a)(1) and 21.448(a) would                        but no more than a few, outcomes                      Veterans, Vocational education,
                                           require each recipient to agree in the                  payors, project coordinators, evaluators,             Vocational rehabilitation.
                                           grant agreement to submit quarterly                     investors, and service providers will be
                                           reports, which would include detailed                                                                           For the reasons stated in the
                                                                                                   involved with the grant program. The
                                           records of the time expended and                                                                              preamble, VA amends 38 CFR part 21,
                                                                                                   goal of these grants is to rehabilitate
                                           employment outcomes accomplished in                     Veterans with service-connected                       subpart A as follows:
                                           the provision of VEPFS activities,                      disabilities with regard to employment.               PART 21—VOCATIONAL
                                           accounting of how the grant funds were                  Thus, an insubstantial number of small                REHABILITATION AND EDUCATION
                                           used.                                                   entities will be affected by this interim
                                              • Description of need for information                final rule and, accordingly, there will               Subpart A—Vocational Rehabilitation
                                           and proposed use of information: The                    not be a significant economic impact on               and Employment Under 38 U.S.C.
                                           collection of information is necessary to               such affected entities. Therefore,                    Chapter 31
                                           determine compliance with the                           pursuant to 5 U.S.C. 605(b), this rule is
                                           requirements for a grant.                               exempt from the initial and final                     ■ 1. The authority citation for part 21,
                                              • Description of likely respondents:                 regulatory flexibility analysis                       subpart A, continues to read as follows:
                                           Public and non-profit entities, including               requirements of sections 603 and 604.
                                           institutions of higher learning, that have                                                                      Authority: 38 U.S.C. 501(a), chs. 18, 31,
                                                                                                   Unfunded Mandates                                     and as noted in specific sections.
                                           an interest in serving Veterans with
                                           service-connected disabilities.                            The Unfunded Mandates Reform Act                   ■ 2. Add an undesignated center
                                              • Estimated number of respondents: 1                 of 1995 requires, at 2 U.S.C. 1532, that              heading and §§ 21.440 through 21.449 to
                                           in FY 2017, up to 10 in FY 2018, up to                  agencies prepare an assessment of                     subpart A to read as follows:
                                           10 in FY 2019.                                          anticipated costs and benefits before
                                              • Estimated frequency of responses: 4                issuing any rule that may result in the               Veterans Employment Pay for Success
                                           quarterly reports per year for 5 years.                 expenditure by State, local, and tribal               Grant Program
                                              • Estimated average burden per                       governments, in the aggregate, or by the              Sec.
                                           response: 1 hour.                                       private sector, of $100 million or more               21.440 Purpose and scope.
                                              • Estimated total annual reporting                   (adjusted annually for inflation) in any              21.441 Definitions.
                                           and recordkeeping burden: 4 hours in                    one year. This interim final rule will                21.442 VEPFS grants—general.
                                           FY 2017, 44 hours in FY 2018, 84 hours                  have no such effect on State, local, and              21.443 Permissible uses of VEPFS grant
                                           in FY 2019, 84 hours in 2020, 84 hours                  tribal governments, or on the private                      funds.
                                           in 2021, 80 hours in 2022, 40 hours in                  sector.                                               21.444 Notice of funding availability.
                                           2023.                                                                                                         21.445 Application.
                                              The regulatory terms also authorize                  Catalog of Federal Domestic Assistance                21.446 Scoring and selection.
                                                                                                                                                         21.447 VEPFS grant agreement.
                                           VA to impose additional recordkeeping                     The Catalog of Federal Domestic                     21.448 Recipient reporting requirements.
                                           or reporting requirements as defined in                 Assistance number and title for the                   21.449 Recovery of funds.
                                           the Terms and Conditions of the grant                   program affected by this document is
                                           agreement (38 CFR 21.447(a)(2)), request                64.116, Vocational Rehabilitation for                 § 21.440   Purpose and scope.
                                           additional information as defined in the                Disabled Veterans.                                       Sections 21.440 through 21.449
                                           Terms and Conditions of the grant                                                                             establish and implement the Veterans
                                                                                                   Signing Authority
                                           agreement (38 CFR 21.447(a)(3)), and                                                                          Employment Pay for Success (VEPFS)
                                           request additional reports in the Terms                   The Secretary of Veterans Affairs, or
                                                                                                                                                         grant program, which provides grants to
                                           and Conditions of the grant agreement if                designee, approved this document and
                                                                                                                                                         eligible entities to fund outcomes
                                           necessary to fully and effectively assess               authorized the undersigned to sign and
                                                                                                                                                         payments for projects that are successful
                                           program accountability and                              submit the document to the Office of the
                                                                                                                                                         in accomplishing employment
                                           effectiveness (38 CFR 21.448(b)).                       Federal Register for publication
                                                                                                                                                         rehabilitation for Veterans with service-
                                           Because these information collection                    electronically as an official document of
                                                                                                                                                         connected disabilities. These sections
                                           requirements will depend on the terms                   the Department of Veterans Affairs.
                                                                                                                                                         apply only to the administration of the
                                           and conditions of the grant agreement                   Robert D. Snyder, Chief of Staff,
                                                                                                                                                         VEPFS grant program, unless
                                           for a particular funding opportunity, VA                Department of Veterans Affairs,
                                                                                                                                                         specifically provided otherwise.
                                           is not seeking emergency approval for                   approved this document on July 11,
                                           these regulatory provisions at this time.               2016, for publication.                                (Authority: 38 U.S.C. 501(d), 3119)
                                           Rather, VA will more clearly define and                   Dated: August 3, 2016.                              § 21.441   Definitions.
                                           articulate these potential record-keeping               Jeffrey Martin,
                                           and reporting requirements when it                                                                              For the purposes of §§ 21.440 through
                                                                                                   Office Program Manager, Office of Regulation          21.449, and any Notices of Funding
                                           submits the PRA package when it                         Policy & Management Office of the Secretary,
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                                           undertakes a regular review of this                     Department of Veterans Affairs.
                                                                                                                                                         Availability (NOFA) issued pursuant to
                                           collection.                                                                                                   §§ 21.440 through 21.449, the following
                                                                                                   List of Subjects in 38 CFR Part 21                    definitions apply:
                                           Regulatory Flexibility Act                                Administrative practice and                           Applicant is an eligible entity that
                                             The Secretary hereby certifies that                   procedure, Armed forces, Civil rights,                submits an application for a VEPFS
                                           this interim final rule will not have a                 Claims, Colleges and universities,                    grant announced in a NOFA.


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                                           52776            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

                                              Eligible entity is a public or nonprofit             advance of the provision of the                         Work-plan is a document that
                                           agency, to include institutions of higher               intervention.                                         articulates tasks and milestones with
                                           learning.                                                  (iv) Investor. Person or entity that               regard to a particular project.
                                              Employment outcome is the                            provides upfront capital to cover costs               (Authority: 38 U.S.C. 3119)
                                           employment or earnings of a participant                 of providing services/delivering an
                                           in the intervention or control group                    intervention and other associated costs               § 21.442   VEPFS grants—general.
                                           member after the service period.                        before a determination has been made as                  (a) VA may award a VEPFS grant only
                                           Improving employment outcomes                           to whether certain employment                         to an eligible entity selected under
                                           means creating positive impact in terms                 outcomes have been achieved at pre-set                § 21.446.
                                           of these outcomes, where the results for                target levels.                                           (b) The amount of Federal funding
                                           individuals that receive the intervention                  (v) Service provider. Entity that                  available to be awarded in a VEPFS
                                           are better than the results for a valid                 delivers an intervention designed to                  grant will be specified in the NOFA.
                                           control group that did not receive the                  achieve improved employment                              (c) A VEPFS grant will be awarded for
                                           intervention.                                           outcomes for Veterans with service-                   a minimum of 5 years and a pre-
                                              Intervention is a service or technology              connected disabilities.                               determined maximum number of years,
                                           that is provided to individuals and is                                                                        beginning on the date on which the
                                                                                                      (2) A full project partnership is a
                                           intended to achieve certain results.                                                                          VEPFS grant is awarded, with the
                                                                                                   project partnership that includes an
                                              Outcomes payments are funds that are                                                                       availability of no-cost extensions.
                                                                                                   outcomes payor, evaluator, investor (if
                                           paid to an investor or service provider                                                                          (d) As a condition of receiving a
                                                                                                   the PFS agreement involves PFS
                                           and that are released only for the                                                                            VEPFS grant, a recipient will be
                                                                                                   financing), and service provider. A
                                           achievement of outcomes, as compared                                                                          required to provide matching funds
                                                                                                   partial project partnership includes an
                                           to those of a control group, that meet                                                                        from non-Federal sources equal to or
                                                                                                   outcomes payor and at least one of the
                                           target levels that have been agreed to in                                                                     greater than the amount of Federal grant
                                                                                                   following: Evaluator, investor (if the
                                           advance of the provision of intervention                                                                      funds awarded, to be combined with the
                                                                                                   PFS agreement involves PFS financing),
                                           (i.e., if positive impact has been created                                                                    amount of Federal grant funds awarded
                                                                                                   or service provider.
                                           by the intervention in terms of these                                                                         and used as specified in § 21.443.
                                                                                                      Recipient is the entity that receives a               (e) A VEPFS grant award is not a
                                           outcomes). When investors have                          VEPFS grant under §§ 21.440 through
                                           provided the upfront capital for the                                                                          Veterans’ benefit. Decisions of the
                                                                                                   21.449. The recipient is also the                     Secretary are final and not subject to the
                                           project, these payments generally cover                 outcomes payor.
                                           repayment of the principal investment                                                                         same appeal rights as decisions related
                                                                                                      Secretary refers to the Secretary of               to Veterans’ benefits.
                                           and provide a modest return on
                                                                                                   Veterans Affairs.
                                           investment for any associated risks of                                                                        (Authority: 38 U.S.C. 3119)
                                           paying for the intervention upfront.                       Service-connected disability is a
                                                                                                   disability that is ‘‘service-connected’’ as           § 21.443   Permissible uses of VEPFS grant
                                              Pay for Success (PFS) agreement is a                                                                       funds.
                                                                                                   defined in 38 CFR 3.1.
                                           multi-party agreement to deliver an
                                                                                                      Social finance strategy is a method for              (a) VEPFS grant funds may be used
                                           innovative or evidence-based
                                                                                                   securing financial resources using an                 only to fund outcomes payments if an
                                           intervention intended to improve
                                                                                                   investment approach that focuses on                   intervention achieves outcomes at a pre-
                                           outcomes for a targeted population
                                                                                                   achieving positive social and/or                      set target level that has been agreed to
                                           signed by the entities that constitute the
                                                                                                   environmental impact with some form                   in a PFS agreement before service
                                           project partnership.
                                                                                                   of financial return.                                  delivery begins for a PFS project with a
                                              Project partnership is a collaboration
                                                                                                      Strong evidence constitutes results                goal to improve employment outcomes
                                           among entities that negotiate an
                                                                                                   from previous studies, the designs of                 for Veterans with service-connected
                                           agreement and execute a project to
                                                                                                   which can support causal conclusions                  disabilities.
                                           improve employment outcomes for                                                                                 (b) To pay for the indirect costs of
                                           Veterans with service-connected                         (i.e., studies with high internal validity),
                                                                                                   that include enough of the range of                   administering a grant, regardless of
                                           disabilities. The entities that may be                                                                        whether an intervention achieves
                                           involved in a project partnership                       participants and settings to support
                                                                                                   scaling up to the state, regional, or                 outcomes at a pre-set target level, a
                                           include:                                                                                                      recipient may:
                                              (1)(i) Outcomes payor. Entity that                   national level (i.e., studies with high
                                                                                                   external validity).                                     (1) Use a Federally approved indirect
                                           receives a VEPFS grant and pays for                                                                           cost rate (a rate already negotiated with
                                           outcomes of services that meet target                      Veteran has the same definition as
                                                                                                                                                         the Federal Government);
                                           levels that have been agreed to in                      provided in 38 CFR 3.1.                                 (2) Use a 10% de minimis rate of
                                           advance of the provision of the                            Veterans Employment Pay for Success                modified total direct costs;
                                           intervention.                                           (VEPFS) agreement is a PFS agreement                    (3) Negotiate an indirect cost rate for
                                              (ii) Project coordinator. Facilitates,               to deliver an innovative, evidence-based              the first time; or
                                           coordinates, and executes a PFS                         intervention intended to improve                        (4) Claim certain costs directly
                                           agreement to improve employment                         Veteran employment outcomes.                          following 2 CFR 200.413.
                                           outcomes for Veterans with service-                        Veterans Employment Pay for Success                (Authority: 38 U.S.C. 3119, 2 CFR 200.414)
                                           connected disabilities. With respect to                 (VEPFS) project is a project with a
                                           other PFS projects, project coordinators                strategy for delivering a service with a              § 21.444   Notice of funding availability.
                                           are sometimes referred to as                            goal to significantly improve a current                 When funds are available for a VEPFS
                                           intermediaries.                                         condition with respect to                             grant, VA will publish a NOFA in the
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                                              (iii) Evaluator. Independent entity                  unemployment of a target Veteran                      Federal Register and on Grants.gov
                                           that determines the impact of the                       population and sufficient evidence to                 (http://www.grants.gov). The NOFA will
                                           services provided, including whether                    support the theory behind the project                 identify:
                                           the services have resulted in                           using a financial model that includes                   (a) The location for obtaining grant
                                           employment outcomes that meet target                    cost savings by funding the project only              applications and the specific forms that
                                           levels that have been agreed to in                      if it is successful.                                  will be required;


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                                                            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations                                           52777

                                             (b) The date, time, and place for                     eligible entities by the deadline                     agreement will provide that the
                                           submitting completed grant                              established in the NOFA. VA will score                recipient agrees, and will ensure that
                                           applications;                                           applications using the following criteria:            each subcontractor (if applicable)
                                             (c) The total amount and type of funds                   (1) Project description. Applicant                 agrees, to:
                                           available and the maximum amount                        identifies and describes an intervention                 (a) Operate the program in accordance
                                           available to a single applicant;                        that is designed to improve employment                with the provisions of §§ 21.440 through
                                             (d) Information regarding eligibility                 outcomes for Veterans with service-                   21.449, 2 CFR part 200, and the
                                           and the scoring process;                                connected disabilities through a PFS                  applicant’s VEPFS grant application;
                                             (e) Any timeframes and manner for                     agreement and demonstrates with strong                   (b) Comply with such other terms and
                                           payments under the grant; and                           evidence the ability of the intervention              conditions, including recordkeeping
                                             (f) Other information necessary for the               to meet objectives. Project description               and reports for program monitoring and
                                           VEPFS grant application process, as                     should explain and justify the need for               evaluation purposes, as VA may
                                           determined by VA, including contact                     the intervention, and include concept,                establish in the Terms and Conditions of
                                           information for the VA office that will                 size and scope of the project, and the                the grant agreement for purposes of
                                           oversee the VEPFS grant.                                Veteran population to be served.                      carrying out the VEPFS program in an
                                                                                                      (2) Project partnership. Applicant                 effective and efficient manner; and
                                           (Authority: 38 U.S.C. 501(d), 3119)                     provides a description of the                            (c) Provide additional information
                                           § 21.445   Application.                                 partnership and the level of partnership              that VA requests with respect to:
                                             To apply for a VEPFS grant, eligible                  (full, partial, or none) attained at the                 (1) Program effectiveness, as defined
                                           entities must submit to VA a complete                   time of application.                                  in the Terms and Conditions of the grant
                                                                                                      (3) Work plan and budget. Applicant                agreement;
                                           application package in accordance with
                                                                                                   provides a work plan that describes in
                                           the instructions in the NOFA and                                                                                 (2) Compliance with the Terms and
                                                                                                   detail the timeline for the tasks outlined
                                           include the forms specified in the                                                                            Conditions of the grant agreement; and
                                                                                                   in the project description and proposed
                                           NOFA. Applications will be accepted                                                                              (3) Criteria for evaluation, as defined
                                                                                                   milestones. Applicant provides a budget
                                           only through Grants.gov (http://                                                                              in the Terms and Conditions of the grant
                                                                                                   that specifies amount of outcome
                                           www.grants.gov). A complete grant                                                                             agreement.
                                                                                                   payments and indirect and other
                                           application package, as further                         relevant costs.                                       (Authority: 38 U.S.C. 501(d), 3119)
                                           described in the NOFA, includes                            (4) Expertise and capacity. Applicant
                                           standard forms specified in the NOFA                                                                          § 21.448   Recipient reporting requirements.
                                                                                                   provides evidence of its past experience
                                           and the following:                                      with PFS or other social finance                        (a) Recipients must submit to VA a
                                             (a) Project description, including a                  strategies or experience administering                quarterly report 30 days after the close
                                           description of the intervention, the                    programs that serve Veterans with                     of each Federal fiscal quarter of the
                                           Veteran population to be served, and                    disabilities, and of its ability and                  grant period. The report must include
                                           anticipated employment outcomes;                        capacity to successfully administer the               the following information:
                                             (b) Description of anticipated project                project.                                                (1) A detailed record of the time
                                           partnership(s), including the                              (5) Match. Applicant provides                      involved and resources expended
                                           responsibilities of each of the partner                 evidence of secured cash matching (1:1)               administering the VEPFS program.
                                           entities, the experience of any involved                funds or of its ability to secure or                    (2) The number of Veterans served,
                                           entities with serving Veteran                           commitments to receive such funds.                    including demographics of this
                                           populations, and other qualifications of                   (b) Selection of recipients. All                   population.
                                           the involved entities that may be                       complete applications from eligible                     (3) The types of employment
                                           relevant in carrying out responsibilities               entities will be scored using the criteria            assistance provided.
                                           of the project partnership. In procuring                in paragraph (a) of this section and                    (4) A full accounting of VEPFS grant
                                           partners such as the project coordinator                ranked in order from highest to lowest                funds used or unused during the
                                           and investor, procurement standards set                 total score. NOFA announcements may                   quarter.
                                           forth in 2 CFR 200.317 through 200.326                  also clarify the selection criteria in                  (5) A comparison of accomplishments
                                           must be followed;                                       paragraph (a). The relative weight (point             related to the objectives of the award.
                                             (c) A work plan, including a budget                   value) for each selection criterion will                (6) An explanation for any goals not
                                           and timelines;                                          be specified in the NOFA. Point values                met.
                                             (d) Description of applicant’s                        will be assigned according to the                       (7) An analysis and explanation for
                                           expertise or experience with PFS or                     criterion’s importance in ensuring the                any cost overruns.
                                           other social finance strategies or                      successful development and                              (b) VA may request additional reports
                                           experience administering programs that                  implementation of a VEPFS project. VA                 in the Terms and Conditions of the grant
                                           serve Veterans with disabilities;                       will award any VEPFS grant on the                     agreement if necessary to allow VA to
                                             (e) Documentation of applicant’s                      primary basis of scores but will also                 fully and effectively assess program
                                           ability and capacity to administer the                  consider a risk assessment evaluation.                accountability and effectiveness.
                                           project;                                                (Authority: 38 U.S.C. 3119)                           (Authority: 38 U.S.C. 501(d), 3119, 2 CFR
                                             (f) Proof of matching funds already                                                                         200.327–200.328)
                                           secured, ability to secure matching                     § 21.447    VEPFS grant agreement.
                                           funds, or commitments received; and                       After an applicant is selected to                   § 21.449   Recovery of funds.
                                             (g) Any additional information as                     receive a VEPFS grant in accordance                     If a recipient fails to comply with any
                                           deemed appropriate by VA and set forth                  with § 21.446, VA will draft a grant                  Federal statutes or regulations or the
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                                           in the NOFA.                                            agreement to be executed by VA and the                terms and conditions of an award made
                                           (Authority: 38 U.S.C. 3119)                             applicant. Upon execution of the VEPFS                under §§ 21.440 through 21.449, VA
                                                                                                   grant agreement, VA will obligate grant               may impose additional conditions as
                                           § 21.446   Scoring and selection.                       funds to cover the amount of the                      specified in 2 CFR 200.207 or, if non-
                                             (a) Scoring. VA will score only                       approved grant, subject to the                        compliance cannot be remedied, take
                                           complete applications received from                     availability of funding. The VEPFS grant              any appropriate actions specified in 2


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                                           52778            Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

                                           CFR part 200 as remedies for non-                       and the separate document describing                  specified for judicial review) and if such
                                           compliance.                                             the full basis for this action are available          objection is of central relevance to the
                                           (Authority: 38 U.S.C. 501(d), 3119, 2 CFR               in the docket the EPA established under               outcome of the rule.’’ The requirement
                                           200.338 through 200.342)                                Docket ID No. EPA–HQ–OAR–2010–                        to convene a proceeding to reconsider a
                                           [FR Doc. 2016–18721 Filed 8–9–16; 8:45 am]
                                                                                                   0505. In addition, following signature,               rule is, thus, based on the petitioner
                                                                                                   an electronic copy of this final action               demonstrating to the EPA both: (1) That
                                           BILLING CODE 8320–01–P
                                                                                                   and the document will be available on                 it was impracticable to raise the
                                                                                                   the World Wide Web (WWW) at the                       objection during the comment period, or
                                                                                                   following address: https://                           that the grounds for such objection arose
                                           ENVIRONMENTAL PROTECTION                                www3.epa.gov/airquality/oilandgas/                    after the comment period, but within
                                           AGENCY                                                  actions.html.                                         the time specified for judicial review
                                           40 CFR Part 60                                          II. Judicial Review                                   (i.e., within 60 days after publication of
                                                                                                                                                         the final rulemaking notice in the
                                           [EPA–HQ–OAR–2010–0505; FRL–9950–34–                        Section 307(b)(1) of the Clean Air Act             Federal Register, see CAA section
                                           OAR]                                                    (CAA) specifies which Federal Courts of               307(b)(1)); and (2) that the objection is
                                                                                                   Appeal have venue over petitions for                  of central relevance to the outcome of
                                           Reconsideration of the Oil and Natural                  review of final EPA actions. This section             the rule.
                                           Gas Sector: New Source Performance                      provides, in part, that ‘‘a petition for                 The EPA received 18 petitions for
                                           Standards; Final Action                                 review of action of the Administrator in              reconsideration of the new source
                                           AGENCY: Environmental Protection                        promulgating . . . any standard of                    performance standards and subsequent
                                           Agency (EPA).                                           performance or requirement under                      amendments from the following 13
                                                                                                   section [111] of [the CAA],’’ or any other            organizations or groups of organizations:
                                           ACTION: Denial of petitions for
                                                                                                   ‘‘nationally applicable’’ final action,
                                           reconsideration.                                        ‘‘may be filed only in the United States                • America’s Natural Gas Alliance and the
                                                                                                   Court of Appeals for the District of                  American Exploration and Production
                                           SUMMARY:    The U.S. Environmental                                                                            Council (ANGA & AXPC)
                                           Protection Agency (EPA) is providing                    Columbia.’’                                             • American Petroleum Institute (API) (3
                                           notice that it has responded to 11                         The EPA has determined that its                    petitions)
                                           petitions for reconsideration of the final              action denying the petitions for                        • California Communities Against Toxics,
                                           rule titled ‘‘Oil and Natural Gas Sector:               reconsideration is nationally applicable              California Safe Schools, Clean Air Council,
                                           New Source Performance Standards and                    for purposes of CAA section 307(b)(1)                 Coalition For A Safe Environment, Desert
                                           National Emission Standards for                         because the action directly affects the               Citizens Against Pollution, Natural Resources
                                                                                                   Oil and Natural Gas Sector: New Source                Defense Council, and the Sierra Club
                                           Hazardous Air Pollutants Reviews,’’
                                                                                                   Performance Standards and National                    (Earthjustice)
                                           published in the Federal Register on                                                                            • Clean Air Council, Clean Air Task Force,
                                           August 16, 2012, and seven petitions for                Emission Standards for Hazardous Air
                                                                                                   Pollutants Reviews, which are                         Environmental Defense Fund, Group Against
                                           reconsideration of subsequent                                                                                 Smog and Pollution, the Natural Resources
                                           amendments published in the Federal                     nationally applicable CAA section 111                 Defense Council, and the Sierra Club
                                           Register on September 23, 2013, and                     standards. Thus, any petitions for                      • Gas Processors Association (GPA) (2
                                           December 31, 2014. The agency                           review of the EPA’s decision to deny                  petitions)
                                           previously granted reconsideration of                   petitioners’ requests for reconsideration               • Independent Petroleum Association of
                                           several discrete issues and took final                  must be filed in the United States Court              America, Independent Oil and Gas
                                                                                                   of Appeals for the District of Columbia               Association of West Virginia, Inc., Kentucky
                                           action on reconsideration through
                                                                                                   Circuit by October 11, 2016.                          Oil & Gas Association, Inc., Indiana Oil and
                                           documents published in the Federal                                                                            Gas Association, Pennsylvania Independent
                                           Register on September 23, 2013,                         III. Description of Action                            Oil & Gas Association, Ohio Oil and Gas
                                           December 31, 2014, August 12, 2015,                                                                           Association, Illinois Oil & Gas Association
                                                                                                      On August 16, 2012, pursuant to CAA
                                           and June 3, 2016. The Administrator
                                                                                                   section 111(b) of the CAA, the EPA                      • Interstate Natural Gas Association of
                                           denied the remaining requests for                                                                             America
                                                                                                   published the final rule titled ‘‘Oil and               • M-Squared Products & Services, Inc. (M-
                                           reconsideration in separate letters to the
                                                                                                   Natural Gas Sector: New Source                        Squared)
                                           petitioners. The basis for the EPA’s
                                                                                                   Performance Standards and National                      • REM Technology Inc.
                                           action is set out fully in a separate
                                                                                                   Emission Standards for Hazardous Air                    • Texas Commission On Environmental
                                           document available in the rulemaking
                                                                                                   Pollutants Reviews.’’ 77 FR 49490. The                Quality (TCEQ)
                                           docket.                                                                                                         • Texas Oil & Gas Association (TXOGA) (2
                                                                                                   EPA published subsequent amendments
                                           DATES: Effective August 10, 2016.                       to the rule on September 23, 2013 (78                 petitions)
                                           FOR FURTHER INFORMATION CONTACT: Ms.                    FR 58416), and December 31, 2014 (79                    • Texas Pipeline Association
                                           Lisa Thompson, Sector Policies and                      FR 79018). Following publication of                     • Western Energy Alliance (WEA) (2
                                                                                                                                                         petitions)
                                           Programs Division (E143–05), Office of                  these final rules, the Administrator
                                           Air Quality Planning and Standards,                     received petitions for reconsideration of                The EPA previously granted
                                           Environmental Protection Agency,                        certain provisions of the final rules                 reconsideration of all issues in seven of
                                           Research Triangle Park, North Carolina                  pursuant to CAA section 307(d)(7)(B).                 the petitions and on several discrete
                                           27711; telephone number: (919) 541–                        CAA section 307(d)(7)(B) requires the              issues contained in some of the other
                                           9775; fax number: (919) 541–3470;                       EPA to convene a proceeding for                       petitions it received and took final
                                           email address: thompson.lisa@epa.gov.                   reconsideration of a rule if a party                  action on reconsideration through
                                           SUPPLEMENTARY INFORMATION:                              raising an objection to the rule ‘‘can                documents published in the Federal
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                                                                                                   demonstrate to the Administrator that it              Register on September 23, 2013,
                                           I. Where can I get a copy of this                       was impracticable to raise such                       December 31, 2014, August 12, 2015,
                                           document and other related                              objection within [the public comment                  and June 3, 2016. The EPA has now
                                           information?                                            period] or if the grounds for such                    denied the issues in the remaining 11
                                              A copy of this Federal Register                      objection arose after the period for                  petitions as not satisfying one or both of
                                           notice, the petitions for reconsideration,              public comment (but within the time                   the statutory conditions for compelled


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Document Created: 2016-08-10 01:59:15
Document Modified: 2016-08-10 01:59:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
ContactPatrick Littlefield, Director, VA Center for Innovation, Department of Veterans Affairs, (08), 810 Vermont Ave. NW., Washington, DC, (202) 256-7176. (This is not a toll- free number.)
FR Citation81 FR 52770 
RIN Number2900-AP72
CFR AssociatedAdministrative Practice and Procedure; Armed Forces; Civil Rights; Claims; Colleges and Universities; Conflict of Interests; Education; Employment; Grant Programs-Education; Grant Programs-Veterans; Health Care; Loan Programs-Education; Loan Programs-Veterans; Manpower Training Programs; Reporting and Recordkeeping Requirements; Schools; Travel and Transportation Expenses; Veterans; Vocational Education and Vocational Rehabilitation

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