YouthBuild Program, 52671-52689 [2010-21097]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 75, Number 166 (Friday, August 27, 2010)]
[Proposed Rules]
[Pages 52671-52689]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21097]


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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 672

RIN 1205-AB49


YouthBuild Program

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of proposed rulemaking with request for comments.

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SUMMARY: The Employment and Training Administration (ETA) of the U.S. 
Department of Labor (Department) is issuing this Notice of Proposed 
Rulemaking (NPRM) to implement the YouthBuild Transfer Act of 2006 
(Transfer Act), which establishes the YouthBuild program in the 
Department under subtitle D of Title I of the Workforce Investment Act 
of 1998 (WIA) as amended. The proposed rule clarifies the requirements 
of the Transfer Act for YouthBuild program providers and participants. 
The proposed rule would set standards under which YouthBuild program 
providers would carry out the goals of the program, which are to assist 
at-risk youth in obtaining a High School diploma or GED and acquiring 
occupational skills training that leads to employment through the 
construction/rehabilitation of housing for low-income or homeless 
individuals and families in the community.

DATES: Interested persons are invited to submit comments on this 
proposed rule. To ensure consideration, comments must be received on or 
before October 26, 2010.

ADDRESSES: You may submit comments, identified by Regulatory 
Information Number (RIN) 1205-AB49, by any one of the following 
methods:
    Federal e-Rulemaking Portal: https://www.regulations.gov. Follow the 
Web site instructions for submitting comments.
    Mail and hand delivery/courier: Written comments, disk, and CD-ROM 
submissions may be mailed to Thomas M. Dowd, Administrator, Office of 
Policy Development and Research, U.S. Department of Labor, 200 
Constitution Avenue, NW., Room N-5641, Washington, DC 20210.
    The Department will not accept e-mailed or faxed comments.
    Instructions: Label all submissions with RIN 1205-AB49.
    Please submit your comment by only one method. Please be advised 
that the Department will post all comments received on https://www.regulations.gov without making any change to the comments, or 
redacting any information. The https://www.regulations.gov Web site is 
the Federal e-rulemaking portal and all comments posted there are 
available and accessible to the public. Therefore, the Department 
recommends that commenters safeguard any personal information such as 
Social Security Numbers, personal addresses, telephone numbers, and e-
mail addresses included in their comments as such information may 
become easily available to the public via the https://www.regulations.gov Web site. It is the responsibility of the commenter 
to safeguard any such personal information.
    Also, please note that due to security concerns, postal mail 
delivery in Washington, DC may be delayed. Therefore, the Department 
encourages the public to submit comments on https://www.regulations.gov.
    Docket: All comments on this proposed rule will be available on the 
https://www.regulations.gov Web site and can be found using RIN 1205-
AB49. The Department also will make all the comments it receives 
available for public inspection by appointment during normal business 
hours at the above address. If you need assistance to review the 
comments, the Department will provide you with appropriate aids such as 
readers or print magnifiers. The Department will make copies of the 
rule available, upon request, in large print, Braille and electronic 
file on computer disk. The Department will consider providing the rule 
in other formats upon request. To schedule an appointment to review the 
comments and/or obtain the rule in an alternative format, contact the 
Office of Policy Development and Research at (202) 693-3700 (this is 
not a toll-free number). You may also contact this office at the 
address listed.

FOR FURTHER INFORMATION CONTACT: Thomas M. Dowd, Administrator, Office 
of Policy Development and Research, U.S. Department of Labor, 200 
Constitution Avenue, NW., Room N-5641, Washington, DC 20210; telephone 
(202) 693-3700 (this is not a toll-free number).
    Individuals with hearing or speech impairments may access the 
telephone number above via TTY by calling the toll-free Federal 
Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:
    The Preamble of this proposed rule is organized as follows:

I. Background--provides a brief description of the development of 
the proposed rule
II. Section-by-Section Review of the Proposed Rule--summarizes and 
discusses the structure and requirements of the YouthBuild Program
III. Administrative Section--sets forth the applicable regulatory 
requirements

I. Background

    On September 22, 2006, the YouthBuild Transfer Act, Public Law 109-
281 (Transfer Act) was signed into law. The Transfer Act authorizes 
grants for job training and educational activities for at-risk youth 
who, as part of their training, help construct or rehabilitate housing 
for homeless individuals and families and low-income families in their 
respective communities. Participants receive a combination of classroom 
training, job skills development, and on-site training in the 
construction trades.
    The White House Task Force for Disadvantaged Youth recommended 
transferring the administration of the YouthBuild program, also known 
as ``Hope for Youth'', from the U.S. Department of Housing and Urban 
Development (HUD) to the Department. The White House Task Force for 
Disadvantaged Youth Final Report. Pg. 4, October 2003.
    The transfer allows for greater coordination of the YouthBuild 
program with Job Corps, WIA Youth Programs, the workforce investment 
system, including local workforce investment boards (WIBs), One-Stop 
Career Centers, and their partner programs (for example, Federal, 
State, and local education agencies), while at the same time retaining 
many of the same affordable housing goals as under the HUD program. The 
Transfer Act transfers the authority for the YouthBuild program from 
the Cranston-Gonzalez National Affordable Housing Act (49 U.S.C. 12899 
et seq.) (Cranston-Gonzales Act) to subtitle D of Title I of WIA and it 
makes modifications and changes to the programs that focus on 
increasing the skilled workforce available for the construction trades.
    In addition to transferring the administration of the program from 
HUD to the Department, the Transfer Act expands the activities 
authorized under the YouthBuild program to include many activities 
authorized under the WIA Title I youth formula program. The transfer 
maintains all the goals of the YouthBuild program as

[[Page 52672]]

originally developed under HUD, but shifts the emphasis to education 
and skills training for at-risk youth participants. The Department will 
continue to support the development of affordable housing which was a 
goal of the HUD program. The Transfer Act incorporates technical 
modifications to the YouthBuild program to make it consistent with 
WIA's job training, education, and employment goals. Moreover, the 
Transfer Act authorizes education and workforce investment activities 
such as occupational skills training, internships, and job shadowing, 
as well as community service and peer-centered activities. In addition, 
the Transfer Act authorizes the Department to use performance 
indicators developed for Federal youth employment and training programs 
to enhance the accountability of YouthBuild programs.
    Although the construction and rehabilitation of affordable housing 
continues to be a major component of the YouthBuild training program, 
the Department's main focus is to prepare at-risk youth for employment. 
Therefore, the Department has increased the emphasis on the education 
and occupational skill training provided by YouthBuild programs. 
Specifically, the occupational skill training offered in YouthBuild 
programs must begin upon program enrollment and be tied to the award of 
an industry recognized credential; i.e., what someone receives after 
successful completion of the National Center for Construction Education 
and Research' program, the Home Builder's Institute's (HBI) HPACT 
curriculum, or the Building Trades Multi-Craft Core curriculum.
    The Transfer Act also places emphasis on coordinating training with 
registered apprenticeship programs, which will allow participants to 
enter such programs upon exiting YouthBuild. Additionally, the Transfer 
Act permits the use of some YouthBuild funds to pay for supervision and 
training costs to allow participants to develop skills and obtain work 
experience in the rehabilitation or construction of community buildings 
and other public facilities. The Transfer Act authorizes these and 
other new activities to better assist at-risk youth in preparing for 
employment.
    The Department has administered the YouthBuild program, including 
making grants, for more than three years since the passage of the 
Transfer Act. In drafting these regulations, the Department relies on 
the knowledge gained from administering these grants, along with its 
experience gained in developing the WIA Youth Program.
    The Transfer Act retains the out-of-school and age requirements 
that were in the Cranston-Gonzalez Act for YouthBuild, targeting 
eligible youth who are school dropouts and are between the ages of 16 
and 24 years old. The Transfer Act further provides that at least 75 
percent of participants must be school drop-outs who are members of 
low-income families, youth in foster care, youth offenders, youths with 
a disability, children of an incarcerated parent, or migrant youths. In 
addition, to ensure that other at-risk youths have access to the 
program, the Transfer Act includes a 25 percent eligibility exception. 
This exception permits secondary schools to refer students to a 
YouthBuild program that offers a secondary school diploma if the 
program is determined to be a better fit for the youth. The exception 
also allows youth who have a diploma or General Education Development 
(GED) degree but test as basic skills deficient to participate in a 
YouthBuild program.

II. Section-by-Section Review of the Proposed Rule

Subpart A--Purpose and Definitions

What is YouthBuild? (Sec.  672.100)
    This section describes the YouthBuild program. YouthBuild is a 
workforce development program that provides employment, education, 
leadership development, and training opportunities to disadvantaged 
youth. The program also benefits the larger community because it 
provides new and rehabilitated affordable housing.
    The program recruits youth between the ages of 16 and 24. The youth 
are school dropouts and are either: A member of a low-income family, a 
youth in foster care, a youth offender, a youth who is an individual 
with a disability, a child of an incarcerated parent, or a migrant 
youth. In addition, to ensure that other at-risk youths have access to 
the program, the Transfer Act includes a 25 percent eligibility 
exception. Program participants are given the chance to earn their high 
school diploma or pass their GED tests, to participate in the 
occupational skills training, and are provided with the opportunity to 
pursue post-secondary education and training, including registered 
apprenticeship programs.
    The program creates a sense of self-worth for its participants by 
providing skills training in the construction industry and highlighting 
the important role that each individual can have on community 
development and engagement. In addition, youth can witness their 
success and contributions through the rehabilitation and construction 
of affordable housing for homeless individuals and families and low-
income families.
What are the purposes of the YouthBuild program? (Sec.  672.105)
    This section describes the purposes of the YouthBuild program. The 
overarching goal of the YouthBuild program is to offer disadvantaged 
youth the opportunity to obtain education and useful employment skills 
to enter the labor market. Construction encompasses this goal, and 
serves as a platform to provide skills training and education to 
YouthBuild participants.
    In addition to the goal listed above, another essential element of 
the YouthBuild program is the provision of counseling and assistance in 
obtaining post-secondary education and/or employment and training 
placements that allow youth to further their education and training. 
Further, youth also have the ability to participate in leadership 
development and community service activities. The program seeks to 
increase the number of affordable housing units available to alleviate 
the rate of homelessness in communities with YouthBuild programs. 
Another goal of YouthBuild is to foster the development of leadership 
skills and a commitment to community improvement among youth in low-
income communities. Through these opportunities, youth can contribute 
to their communities both through workforce participation and housing 
development.
What definitions apply to this part? (Sec.  672.110)
    The definitions that are listed in this section are specific to the 
YouthBuild program. As an amendment to the Workforce Investment Act, 
other definitions that apply to the YouthBuild Program are defined 
under sec. 101 of WIA, 29 U.S.C. 2801 and at 20 CFR part 660.
    Alternative School: To determine the educational status and 
therefore eligibility of a youth to participate in YouthBuild, the term 
``alternative school'' means a school or program that is set up by a 
State, school district, or other community-based entity to serve young 
people who are not succeeding in a traditional public school 
environment. An ``alternative school'' must be recognized by the 
authorizing entity designated by the State. The school must award a 
high school diploma. ``Alternative schools'' must be affiliated with 
YouthBuild programs in order to qualify as part of a ``sequential 
service strategy.''

[[Page 52673]]

    Community or Other Public Facility: The term ``community or other 
public facility'' means those facilities which are publicly owned and 
publicly used for the benefit of the community. Examples include public 
use buildings such as recreation centers, libraries, public park 
shelters, or public schools. This term may also encompass facilities 
used by the program but only if the facility is available for public 
entry and use.
    Core Construction: The term ``core construction'' means activities 
that are directly related to the construction or rehabilitation of 
residential, community, or other public facilities. These activities 
include, but are not limited to, job skills that can be found under the 
Standard Occupational Classification System (SOC) major group 47, 
Construction and Extraction Occupations, in codes 47-1011 through 47-
4099. These activities may also include, but are not limited to 
construction skills that may be required by green building and 
weatherization industries but are not yet standardized. A full list of 
the SOC's can be found at the Department Bureau of Labor Statistics 
(BLS) Web site, https://www.bls.gov/soc.
    Eligible Entity: The term ``eligible entity'' describes the types 
of organizations that are permitted to apply for a YouthBuild grant. 
The definition of ``eligible entity'' was provided in the YouthBuild 
Transfer Act.
    Homeless Individual: The definition of ``homeless individual'' 
comes from the McKinney-Vento Homeless Assistance Act. 42 U.S.C. 11302. 
This term is defined in the YouthBuild Transfer Act.
    Housing Development Agency: The term ``housing development agency'' 
is defined in the YouthBuild Transfer Act.
    Income: The definition of ``income'' comes from the United States 
Housing Act of 1937. 42 U.S.C. 1437a(b). Under Sec.  3(b) of the 
YouthBuild Transfer Act (29 U.S.C. 2918(a)), the determination of 
income is made in accordance with guidance provided by the Secretary of 
Labor (Secretary), in consultation with the Secretary of Agriculture.
    Indian; Indian Tribe: The definitions of ``Indian'' and ``Indian 
tribe'' are taken from the Indian Self-Determination and Education 
Assistance Act. 25 U.S.C. 450b. These terms are defined in the 
YouthBuild Transfer Act.
    Individual of Limited English Proficiency: The definition of an 
``individual of limited English proficiency'' means an eligible 
participant who meets the criteria derived from the Adult Education and 
Family Literacy Act. 20 U.S.C. 9202(10). This term is defined in the 
YouthBuild Transfer Act.
    Low-Income Family: The definition of the term ``low-income family'' 
is taken from the United States Housing Act of 1937. 42 U.S.C. 
1437a(b)(2). As defined, a ``low-income family'' is: A family whose 
income does not exceed 80 percent of the median income for the area 
unless the Secretary determines that a higher or lower ceiling is 
warranted. This term is defined in the YouthBuild Transfer Act. Under 
HUD's YouthBuild program, one of the eligibility criteria for 
participants was that the individual must be a very low-income 
individual or a member of a ``very low-income family.'' However, the 
YouthBuild Transfer Act requires only that an individual be a member of 
a ``low-income family'' or fall into one of the new categories 
prescribed by the Transfer Act. The definition of ``low-income family'' 
in the proposed rule subsumes the definition of ``very low-income 
family'' in HUD's YouthBuild regulations and broadens the pool of 
eligible participants. This definition applies not only to the 
eligibility of participants but also to the requirement that any 
residential units constructed or rehabilitated using YouthBuild funds 
must be used to house homeless individuals and families or low-income 
families. Further, as defined by 42 U.S.C. 1437a(b)(2)(3), the term 
families includes families consisting of one person.
    Migrant Youth: The term ``migrant youth'' means a youth who, or a 
youth who is the dependent of someone who, during the previous 12 
months has:
    (a) Worked at least 25 days in agricultural labor that is 
characterized by chronic unemployment or underemployment;
    (b) Made at least $800 from agricultural labor that is 
characterized by chronic unemployment or underemployment, if at least 
50 percent of his or her income came from such agricultural labor;
    (c) Was employed at least 50 percent of his or her total employment 
in agricultural labor that is characterized by chronic unemployment or 
underemployment; or
    (d) Was employed in agricultural labor that requires travel to a 
jobsite such that the worker is unable to return to a permanent place 
of residence within the same day.
    This definition is adapted from guidance for determining 
eligibility of migrant and seasonal farmworkers for the National 
Farmworker Jobs Program in Department of Labor, Farmworker Bulletin 00-
02, NFJP Eligibility Policy Guidance (2000).
    Needs-Based Stipend: ``needs-based stipends'' are additional 
payments (beyond regular stipends for program participation) that are 
based on defined needs that enable a youth to participate in the 
program. To provide ``needs-based stipends'', the grantee must have a 
written policy in place, which defines: (a) Eligibility; (b) the 
amounts; and (c) the required documentation and criteria for payments. 
This policy must be applied consistently to all program participants.
    Occupational Skills Training: ``Occupational skills training'' 
means an organized program of study that provides specific vocational 
skills that lead to proficiency in performing actual tasks and 
technical functions required by certain occupational fields at entry, 
intermediate, or advanced levels. The occupational skills training 
offered in YouthBuild programs must begin upon program enrollment and 
tied to the award of an industry-recognized credential.
    Partnership: The term ``partnership'' means an agreement that 
involves a Memorandum of Understanding (MOU) or letter of commitment 
submitted by each organization and applicant, as defined in the 
YouthBuild Transfer Act, that plan on working together as partners in a 
YouthBuild program. Each partner must have a clearly defined role. 
These roles must be verified through a letter of commitment, not just a 
letter of support, or MOU submitted by each partner. The letter of 
commitment or MOU must detail the role the partner will play in the 
YouthBuild Program, including specific responsibilities and resources 
committed, if appropriate. These letters or MOU's must clearly indicate 
the partnering organization's unique contribution and commitment to the 
YouthBuild Program. This term is not in the YouthBuild Transfer Act but 
was added to the regulations. An applicant's ability to enter into 
partnerships with education and training providers, employers, the 
workforce investment system, the juvenile justice system and faith-
based and community organizations will be a criteria in selecting 
grantees.
    Registered Apprenticeship Program: The term ``registered 
apprenticeship program'' is defined in the YouthBuild Transfer Act and 
means a plan containing all terms and conditions for the qualification, 
recruitment, selection, employment and training of apprentices, as 
required under 29 CFR parts 29 and 30, including such matters as the 
requirement for a written apprenticeship agreement. To the extent that 
29 CFR part 30 is amended, such amendments shall apply to the

[[Page 52674]]

determination of what is a ``registered apprenticeship program''.
    Sequential Service Strategy: The term ``sequential service 
strategy'' defines the educational and occupational skills training 
plan developed for individuals who have dropped out of high school and 
want to enroll in a YouthBuild program. The plan is designed so that 
the individual first enrolls in an alternative school, and, after 
receiving a year or more of educational services, enrolls in a 
YouthBuild program. A youth will only be eligible for the YouthBuild 
program under the sequential service strategy if the alternative school 
is affiliated with a YouthBuild program.
    The Office of Inspector General suggested that a definition be 
provided for ``sequential service strategy'' either through guidance or 
in the regulations after its Audit of the YouthBuild Recovery grants. 
The reason for their suggestion was that grantees should be provided 
guidance on the meaning of provisions in both the American Recovery and 
Reinvestment Act, Public Law 111-5 (2009) and the 2009 Omnibus 
Appropriations Act, Public Law 111-8 (2009) that broaden the WIA 
YouthBuild school dropout provision for Program Years 2008 and 2009. We 
agree and, therefore, have added definitions to clarify the terms 
``alternative school'' and ``sequential service strategy'' as used in 
those statutory provisions.
    Transitional Housing: The term ``transitional housing'' is defined 
in the YouthBuild Transfer Act.
    Youth in Foster Care: The term ``youth in foster care'' means youth 
currently in foster care or youth who have ever been in foster care. 
The YouthBuild Transfer Act uses the term ``youth in foster care 
(including youth aging out of foster care).'' The U.S. Department of 
Health and Human Services (HHS) has recommended that the term be 
changed to youth who have ever been in foster care. We accept this new 
definition as we believe it is consistent with the statutory definition 
and is clearer and explains how the program uses the term.
    Youth Who is an Individual with a Disability: The term Youth who is 
an Individual with a Disability means an individual between the ages 
16-24 who is an individual with a disability as defined by Section 101 
of the Workforce Investment Act or a student receiving special 
education and related services under the Individuals with Disabilities 
Education Act (IDEA).

Subpart B--Funding and Grant Applications

How are YouthBuild grants funded and administered? (Sec.  672.200)
    This section describes how YouthBuild grants are funded and 
administered. The YouthBuild program is funded through appropriations 
authorized under 29 U.S.C. 2918a(h). YouthBuild will be administered as 
a national program with grants awarded through a competitive selection 
process, similar to the YouthBuild ``implementation grants'' formerly 
administered by HUD. It is noteworthy that the authority to issue 
``planning grants,'' which was formerly authorized under the Cranston-
Gonzalez Act, was not retained in the Transfer Act as Congress 
considered planning grants no longer necessary to administer the 
current program.
How does an eligible entity apply for grant funds to operate a 
YouthBuild program? (Sec.  672.205)
    This section describes in general terms the process the Department 
will use to select grantees. We propose to select grantees through a 
competitive process. The directions for applying for grants will be 
issued in a Solicitation for Grant Applications (SGA) which will 
describe the eligibility requirements and rating criteria for the 
competition.
    Essentially, all of the grant application requirements to operate a 
YouthBuild program have been retained, but several new requirements are 
now added by the Transfer Act and these regulations. Among the new 
requirements, an applicant is required to provide labor market 
information for the local market area where the grant will be used and 
to provide projections on career opportunities in local industries, 
such as the construction industry. In addition, an applicant's 
statement of qualifications must describe its relationships with the 
workforce investment system and with employers. HUD required a 
description of the manner in which eligible youth will be recruited and 
selected as YouthBuild participants, including arrangements with 
required partners. Newly added to the list as a requirement, is a 
description of the arrangements that will be made with the local 
workforce board, One-Stop operators, and faith-based organizations to 
recruit YouthBuild participants. HUD only required such a description 
for community-based organizations. Other new requirements are that 
applicants describe how they will meet common performance measures for 
youth programs, identify the role of employers in the program, and 
describe their ability to grant industry-recognized skills-based 
certifications. All of these requirements will be described in the SGA 
through which grantees are selected.
How are eligible entities selected to receive grant funds? (Sec.  
672.210)
    This section describes the selection criteria for selecting 
grantees. The selection criteria that the Secretary may use to make 
grant determinations have been expanded from HUD's selection criteria. 
The new factors, which are specified in the Transfer Act and are in 
addition to existing criteria, include the applicant's focus on 
preparing youth for postsecondary education or careers in demand 
occupations; the extent to which the applicant will coordinate with the 
workforce investment system, employers, and educational institutions in 
conducting their YouthBuild activities; the applicant's ability to 
serve different regions, including rural areas and States without prior 
YouthBuild programs. The weights given to these criteria will be 
specified in the SGA. Additionally, in the event additional funds 
become available, ETA reserves the right to use such funds to select 
additional grantees from applications submitted in response to a SGA.
    The Department has added to the selection criteria one factor not 
listed in the Transfer Act. Applicants will be evaluated on their 
ability to attract partners. Examples of partners are educational and 
training providers, employers, the workforce investment system, the 
juvenile justice system, disability service providers, and faith-based 
organizations as partners. While the selection criteria already 
emphasize the applicants' ability to coordinate with these groups, a 
partnership is a more formal commitment in which the applicant and its 
partner agree to work together, signified by a memorandum of 
understanding or letter of commitment indicating the partnering 
organization's unique contribution and commitment to the YouthBuild 
Program. The complexity of the YouthBuild program requires that 
entities engage in meaningful partnerships throughout their community 
to ensure the success of the participants as they transition from the 
program into post-secondary employment or education as well as ensure 
the successful construction or rehabilitation of affordable housing.
How are eligible entities notified of approval for grant funds? (Sec.  
672.215)
    The Secretary, to the extent practicable, must notify each 
applicant of the approval or disapproval of its

[[Page 52675]]

grant application not later than 5 months after the date of the receipt 
of the application. This is a change from the 4-month notification 
timeframe under the HUD program and reflects differences in the grant 
award process at the Department.
    Grants will be awarded for a 3-year period of performance. This 
includes 2 years of core program operations (education, workforce 
investment skills training, and other activities such as youth 
leadership development) plus at least 9 months of follow-up support 
services and tracking of participant outcomes. In the event additional 
funds become available, ETA reserves the right to use such funds to 
select additional grantees from applications submitted in response to 
the SGA.

Subpart C--Program Requirements

Who is an eligible participant? (Sec.  672.300)
    This section sets out the participant eligibility requirements. The 
requirements that at least 75 percent of participants must be between 
the ages of 16 and 24 years on the date of enrollment and must be 
school dropouts are continued under the YouthBuild Transfer Act. Later 
statutes provided that a YouthBuild program may serve an individual who 
has dropped out of school and reenrolled in an alternative school, if 
that reenrollment is part of a sequential service strategy.
    Previously, under the HUD regulations, an eligible participant was 
also required to be a very low-income individual or a member of a very 
low-income family using the definition of income, adjusted for certain 
exclusions as determined by the United States Housing Act of 1937. The 
Department proposes to revise the previous requirement by now requiring 
that a participant be a member of a low-income family using the 
definition of income, adjusted for certain exclusions as determined by 
the United States Housing Act of 1937. As specified in the Transfer 
Act, an eligible participant may also be a youth in foster care, a 
youth offender (including any youth between the ages of 16 and 24 who 
has been convicted through either a juvenile or adult criminal justice 
system), a youth who is an individual with a disability, a child of an 
incarcerated parent, or a migrant youth.
    Also continuing under the YouthBuild Transfer Act is the exception 
provision that no more than 25 percent of the participants may be 
individuals who do not meet the general income or educational needs 
requirement, providing that they are academically deficient in one of 
two areas. The first area is that high school graduates or those who 
already have a GED but who are ``basic skills deficient'' may 
participate in the program under this exception. The term basic skills 
deficient has the same definition as it does in section 101 of WIA. It 
is ``an individual that has English reading, writing, or computing 
skills at or below the 8th grade level on a generally accepted 
standardized test or a comparable score on a criterion-referenced 
test.'' The second area of the exception refers to youth who are still 
enrolled in a secondary school and are referred by that school to 
participate in a YouthBuild program that leads to the attainment of a 
secondary school diploma.
Are there special rules that apply to veterans? (Sec.  672.305)
    The priority of service provisions for qualified persons under 
Department of Labor regulations at 20 CFR part 1010 apply to the 
YouthBuild program as a Department of Labor job training program. 
Accordingly, youth who are eligible participants for the YouthBuild 
programs, and are also covered persons under 20 CFR part 1010, must 
receive priority of service. The special rule for determining low-
income status for veterans which is found at 20 CFR 667.225 also 
applies.
What eligible activities may be funded under the YouthBuild program? 
(Sec.  672.310)
    The HUD regulations included provisions for education and job 
training activities, including work experience and skills training, as 
eligible activities under YouthBuild grants. The Transfer Act outlines 
new education and workforce investment activities permitted under the 
YouthBuild program such as postsecondary education services and 
activities, including tutoring, study skills training and dropout 
prevention activities; other paid and unpaid work experiences, 
including internships and job shadowing; and alternative secondary 
school services, occupational skills training, and counseling services 
and related activities, such as comprehensive guidance and counseling 
on drug and alcohol abuse and referral. Grantees have discretion on 
which of these activities to offer and may also offer additional 
activities. However, as explained in Sec.  672.320, the Department 
requires that every grantee offer as part of its program the activities 
listed in Sec.  672.310(b)(1): Work experience and skills training in 
housing rehabilitation and construction.
    With the transfer of the YouthBuild program to the Department, 
there is wider access to workforce-related programs administered by the 
Department. Therefore, the Department proposes to place an emphasis on 
coordinating training with registered apprenticeship programs, which 
will allow participants to enter such programs after exiting 
YouthBuild. YouthBuild programs are permitted to use some funds to pay 
for supervision and training costs to allow participants to develop 
skills and obtain work experience through the rehabilitation or 
construction of community or other public facilities. As a result, by 
expanding the use of funds for participant services related to the 
rehabilitation or construction of community or public facilities, job 
training and career opportunities for YouthBuild participants will be 
enhanced.
What timeframes apply to participation? (Sec.  672.315)
    The participation parameters for individuals participating in a 
YouthBuild program are unchanged under the Transfer Act. Participants 
must be offered full-time participation for a period of at least 6 
months and not more than 24 months.
What timeframes must be devoted to education and workforce investment 
or other activities? (Sec.  672.320)
    The Department proposes to require YouthBuild grantees to structure 
programs so that participants in the program are offered specific 
educational and related services and activities during at least 50 
percent of their participation time and workforce investment activities 
during at least 40 percent of the remaining time. The latter is a new 
requirement under the Transfer Act. Only the requirement that 50 
percent of participant time be for educational activities had existed 
under the HUD program.
    The remaining 10 percent can be used for educational, construction-
related occupational skills training, and/or leadership development as 
well as community service activities. Grantees should establish a 
program structure that is used consistently throughout the program 
cycle.
    Within these timeframes, YouthBuild grantees can generally 
determine which educational, workforce or other activities to offer 
participants. However, the Department has determined that the work 
experience and skills training in rehabilitation and construction set 
out in Sec.  672.310(b)(1) are an essential part of the YouthBuild 
program and that every

[[Page 52676]]

YouthBuild grantee must include such activities as part of its 
workforce activities. YouthBuild was designed as a program that 
provides disadvantaged youth with both education and skills in 
occupations in demand while fostering a commitment to community 
development and expanding the supply of affordable housing to homeless 
individuals or families or low-income families. The White House Task 
Force for Disadvantaged Youth Final Report emphasized that, at its 
core, YouthBuild is an employment and training program and, as the 
Report recommended, the Transfer Act transferred authority for 
YouthBuild to the Department of Labor to provide greater coordination 
with existing workforce programs.
    To fully achieve the intent of the Transfer Act, the Department has 
interpreted the Act to require that work experience and skills training 
in housing construction and rehabilitation be part of every YouthBuild 
program. However, this may present a challenge for YouthBuild programs 
in placing participants in the construction industry when demand for 
construction workers in a local area is low, as it is in the current 
economic landscape. In addition, many youth can benefit from the 
YouthBuild program, but are not interested ultimately in entering 
construction careers. Many current grantees have expressed an interest 
in expanding their program training beyond construction for these 
reasons. Therefore, we are seeking comments on whether YouthBuild 
should continue to focus on construction skills training or if the 
skills training should be expanded to other industry areas.
What timeframes apply for follow-up services? (Sec.  672.325)
    The Department proposes to require YouthBuild grantees to provide 
follow-up services for a period of not less than 3 quarters after exit 
(nine months) and not to exceed 12 months after exit. Follow-up 
services are services that help YouthBuild participants transition 
successfully from the program into education and/or employment. This 
specificity is added to the regulations because of the recognition that 
youth exiting the program may require additional services in order to 
maintain the positive gains they achieved while enrolled. Follow-up 
services include supportive services and may also include, but are not 
limited, activities such as counseling services, job search assistance, 
and checking-in on participants after they have left the program. 
Additionally, programs are required to report on participants who have 
exited the program for 3 quarters after exit to ensure their successful 
transition into employment or education and to collect data on the 
performance indicators required by the Department. In accordance with 
the Department's instructions, individual YouthBuild programs determine 
participant exit dates based on participant completion of the program 
requirements for educational and workforce investment activities or 
other activities.

Subpart D--Performance Indicators

What are the performance indicators for YouthBuild grants? (Sec.  
672.400)
    All YouthBuild grantees must report on the three youth common 
performance indicators currently used to assess performance in the WIA 
Formula Youth Program. These indicators as described in Departmental 
guidance (TEGL No. 17-05) are placement in employment or education, 
attainment of a degree or certificate, and literacy and numeracy gains. 
These performance indicators will help the Department to identify early 
potential for successful outcomes from grantees and sets forth one set 
of indicators to be used for both reporting purposes and WIA section 
136 performance accountability purposes. They will also allow grantees 
to better serve the eligible populations under this program.
    The Secretary may require grantees to track other performance 
indicators, including short-term performance indicators such as 
enrollment rate, number of initial job placements, number obtained 
High-School Diploma or GED, and provide this data to the Department in 
quarterly performance reports required under Sec.  672.410. The 
Department will provide the details of the performance indicators in 
administrative guidance.
What are the required levels of performance for the performance 
indicators? (Sec.  672.405)
    Each YouthBuild grantee must meet certain levels of performance 
established by the Department for each of the common performance 
measures described in Sec.  672.400. In determining annual performance 
levels for the YouthBuild program, the Department reviews previous 
year's performance and also compares performance levels with similar 
WIA youth workforce development programs.
    The levels of performance established must, at a minimum:
    (a) Be expressed in an objective, quantifiable, and measurable 
form; and
    (b) Lead to continuous improvement in performance.
    Expected national levels of performance for each of the common 
performance indicators, and any other performance indicators, will be 
established at a later date and provided in separately issued guidance. 
Generally, these other performance indicators are established, short-
term indicators specified in the SGA or individual grant agreement and 
comprised of individual YouthBuild program data used by the Department 
to gauge individual program progress toward performance outcomes. 
Performance level expectations are based on available YouthBuild data 
and data from similar WIA Youth programs. The expected national levels 
of performance will take into account the extent to which the levels 
promote continuous improvement in performance.
What are the reporting requirements for YouthBuild grantees? (Sec.  
672.410)
    The Department proposes to require that each grantee receiving 
funds under this program must provide three quarterly reports to the 
Department:
    (a) The Quarterly Performance Report (QPR);
    (b) The quarterly narrative progress report; and
    (c) The financial report.
    Also, the Department may require a grantee to provide additional 
reports, as part of a grant agreement. These additional reports will 
assist the Department in the effective administration of YouthBuild.
    The QPR will be generated by a Web-based system programmed 
exclusively for YouthBuild grantees to use. This Web-based system is a 
tool used to capture agency-specific processes and data that occur 
throughout the grant's lifecycle and helps the Department and the 
grantee with the various reporting requirements specified in Sec.  
672.410. This system will be the main system of data entry for all 
grantees, including all case management information, which the grantee 
will use to produce the QPR for submission to the Department. The QPR 
and narrative reports must be submitted electronically each quarter via 
this Web-based system. The financial report also will be submitted 
electronically via the Web-based system in accordance with reporting 
instructions issued by ETA. Grantees will be trained in all necessary 
reporting systems during the initial award phase.
What are the due dates for quarterly reporting? (Sec.  672.415)
    The QPR and narrative reports are due no later than 45 days after 
the end of each quarter unless otherwise specified in reporting 
instructions. A final financial report is required 90 days after

[[Page 52677]]

the expiration of a funding period or the termination of grant support.

Subpart E--Administrative Rules, Costs and Limitations

What administrative regulations apply to the YouthBuild program? (Sec.  
672.500)
    This proposed section incorporates the administrative requirements 
of WIA that are applicable to YouthBuild grants, which include 
requirements relating to fiscal and administrative rules, audit, 
allowable costs/cost principles, debarment and suspension, a drug-free 
workplace, restrictions on lobbying, treatment of individuals with 
disabilities, and nondiscrimination.
    The nondiscrimination regulations incorporated by this section, 29 
CFR part 37, broadly prohibit all forms of discrimination for WIA Title 
I programs, which include YouthBuild. 29 CFR 37.5 states that ``[n]o 
individual in the United States may, on the grounds of race, color, 
religion, sex, national origin, age, disability, political affiliation 
or belief, and for beneficiaries only, citizenship or participation in 
any WIA Title I-financially assisted program or activity, be excluded 
from participation in, denied the benefits of, subjected to 
discrimination under, or denied employment in the administration of or 
in connection with any WIA Title I-funded program or activity.'' The 
regulations also require that grantees provide reasonable 
accommodations to youth who are individuals with disabilities. 29 CFR 
37.8. For grantees unsure of how to best accommodate youth who are 
individuals with disabilities in their program, the Department 
recommends that the grantees consult with the Job Accommodation 
Network, a free service of the Department's Office of Disability 
Employment Policy that provides employers with technical assistance on 
accommodating different disabilities.
    In addition to prohibiting discrimination, YouthBuild grantees have 
positive requirements to ensure equal opportunity and prevent 
discrimination in their programs. YouthBuild grantees are required by 
29 CFR 37.29 through 37.32 to disseminate an equal opportunity policy. 
YouthBuild grantees must also ensure that they provide universal access 
to their programs, including advertising the program in a manner that 
targets various populations, sending notices about openings in programs 
to community service groups that serve various populations, and 
consulting with community service groups on ways to improve outreach 
and service to various populations. 29 CFR 39.42.
    YouthBuild grantees are also required to comply with all generally 
applicable laws and implementing regulations that apply to the grantees 
or their participants, including, for example, for participants who are 
Youth Who are Individuals with Disabilities and participate in 
secondary education programs, the administrative provisions of the 
Individuals with Disabilities Improvement Act, 34 CFR 300.320 through 
34 CFR 300.324, which require that grantees provide Youth Who are 
Individuals with Disabilities who enter the program with an appropriate 
transition plan corresponding to their individual needs.
How may grantees provide services under the YouthBuild program? (Sec.  
672.505)
    This proposed section restates the provisions of the Transfer Act 
which authorize grantees to provide services directly or to enter into 
sub-grants, contracts, or other arrangements with various public and 
private entities to provide services under the YouthBuild program.
What cost limits apply to the use of YouthBuild program funds? (Sec.  
672.510)
    This proposed section restates the provisions of the YouthBuild 
Transfer Act which set the administrative cost limit at 15 percent of 
the grant award and the cost of supervision and training for 
participants in the rehabilitation or construction of community and 
other public facilities to no more than 10 percent of the grant award. 
29 U.S.C. 2918a(c)(2)(C) and (D).
What are the cost-sharing or matching requirements of the YouthBuild 
program? (Sec.  672.515)
    The YouthBuild Transfer Act authorizes the Department to require 
the grantee to make available to the program additional resources from 
its own resources or from other sources such as businesses, non-profit 
organizations, or non-Federal public entities that can provide funds or 
in-kind services. Cost-sharing or match requirements will be addressed 
in the grant agreement, and described in the SGA. However, a few match 
requirements are addressed in particular in this section.
    Construction materials may be counted toward meeting the required 
non-Federal match share under the YouthBuild program. The value of 
buildings acquired for the YouthBuild is an allowable cost-share or 
match cost to the extent that the building is used for training. The 
value of land acquired for the YouthBuild program is not an allowable 
cost-sharing or match cost.
    This proposed section also incorporates the cost-sharing and 
matching provisions set forth in the Uniform Administrative 
Requirements, which define composition, use, and valuation of required 
match contributions. Although it is addressed in the Uniform 
Administrative requirements, because it is such a common question, the 
regulations restate the prohibition at 29 CFR 95.23(a)(5) and 97.24(b), 
against Federal funds being used as part of the cost-sharing or match 
amount proposed by a prospective applicant.
What are considered to be leveraged funds? (Sec.  672.520)
    This proposed section addresses the use of additional monies, known 
as leveraged funds, to support grant activities. Leveraged funds 
include costs that could be an allowable match but are in excess of the 
match requirement or costs that do not meet the cost-sharing and match 
requirements set forth in the Uniform Administrative Requirements. To 
be considered leveraged funds, they must be otherwise allowable costs 
under the cost principles which have been used by the grantee to 
support grant activity. For example, another Federal grant used by the 
grantee or sub-grantee to support otherwise allowable activities under 
the YouthBuild program could not be counted toward the match 
requirement but would be considered a leveraged fund.
    The amount, commitment, nature and quality of the leveraged funds 
described in the grant application will be a factor in evaluating 
grants in the SGA. Grantees will also be required to report the use of 
such funds through their financial report and quarterly narrative 
report.
How are the costs associated with real property treated in the 
YouthBuild program? (Sec.  672.525)
    This proposed section specifies which costs associated with real 
property are allowable and unallowable under the YouthBuild program. 
The costs associated with the acquisition of buildings to be 
rehabilitated for training purposes are allowable under the same 
proportionate share conditions that apply under the match provision at 
Sec.  672.515, but only with prior grant officer approval. The costs 
related to construction and/or rehabilitation associated with the 
training of participants are allowable. The costs associated with the 
acquisition of land are not allowable.

[[Page 52678]]

What participant costs are allowable under the YouthBuild program? 
(Sec.  672.530)
    Payments to participants for work-related and non-work-related 
YouthBuild Activities, supportive services, needs-based stipends, and 
additional benefits are allowable participant costs. A needs-based 
stipend is not a regular stipend, which is paid to participants in lieu 
of wages while they are in training. Needs-based stipends are 
additional payments (beyond regular stipends for program participation) 
that are based on defined needs to enable youth to participate in the 
YouthBuild program. To provide ``needs-based stipends'', the grantee 
must have a written policy in place, which defines: (a) Eligibility; 
(b) the amounts; and (c) the required documentation and criteria for 
payments. This policy must be applied consistently to all program 
participants.
What effect do payments to YouthBuild participants have on eligibility 
for other Federal needs-based benefits? (Sec.  672.535)
    Under WIA regulations at 20 CFR 667.272(c), allowances, earnings, 
and payments to individuals participating in programs under Title I of 
WIA are not considered as income for purposes of determining 
eligibility for and the amount of income transfer and in-kind aid 
furnished under any Federal or Federally-assisted program based on need 
other than as provided under the Social Security Act (42 U.S.C. 301). 
The Department wants to assure grantees and participants that their 
participation in the YouthBuild program should not disqualify them from 
participating in other Federally-sponsored needs-based programs that 
are available to them.
What program income requirements apply to the YouthBuild program? 
(Sec.  672.540)
    This proposed section provides that the program income provisions 
of the Uniform Administrative Requirements apply to the YouthBuild 
program. In addition, this proposed section specifies that the revenue 
from the sale or rental of buildings rehabilitated or constructed under 
the YouthBuild program to homeless individuals and families or low-
income families, as specified in section 672.615, is not considered 
program income. Grantees are encouraged to use such revenue for the 
long-term sustainability of the YouthBuild effort.
Are YouthBuild programs subject to the Davis-Bacon Act labor standards? 
(Sec.  672.545)
    Davis-Bacon labor standards apply to Federal construction contracts 
and many Federally-assisted construction projects under the provisions 
of the Davis-Bacon Act and numerous related Acts that authorize Federal 
assistance for construction. YouthBuild programs and grantees are 
subject to Davis-Bacon labor standards in certain circumstances. The 
Department has determined that YouthBuild participants are subject to 
Davis-Bacon labor standards when they perform Davis-Bacon-covered 
laborer or mechanic work on Federal or Federally-assisted projects that 
are subject to Davis-Bacon labor standards. When a YouthBuild 
participant works on a project subject to Davis-Bacon labor standards, 
the Davis-Bacon labor standards, including prevailing wage 
requirements, apply to the hours worked on the site of the work.
    This may present a challenge to YouthBuild programs that view these 
types of construction projects as valuable training sites for their 
youth since many contractors may be reluctant to pay prevailing wage 
rates for youth trainees who are in the process of learning and 
developing their skill set. The regulations implementing the Davis-
Bacon Act contain a provision that allows for Department-certified 
training programs to pay less than the applicable prevailing wage rate 
to trainees. As stipulated by 29 CFR 5.5(a)(4)(ii), ``trainees'' are 
not permitted to be paid less than the predetermined rate for the work 
performed unless they are employed under and individually registered in 
a program which has received prior approval, evidenced by a formal 
certification by the U.S. Department of Labor, Employment and Training 
Administration.
What are the recordkeeping requirements for YouthBuild programs? (Sec.  
672.550)
    This proposed section sets forth the requirements for maintaining 
records under the YouthBuild program, including requirements for 
records related to the use of buildings constructed or rehabilitated 
with YouthBuild funds which will be specified in the grant agreement. 
Grantees must follow the recordkeeping requirements in the Uniform 
Administrative Regulations, codified at 29 CFR 95.53 and 29 CFR 97.42, 
as appropriate.
    Grantees must maintain such additional records as specified in the 
grant agreement related to the use of buildings constructed or 
rehabilitated with YouthBuild funds. Recordkeeping requirements vary 
for different classes of records.

Subpart F--Additional Agency Requirements

What are the safety requirements for the YouthBuild program? (Sec.  
672.600)
    On November 14, 2006, the Department published, at 71 FR 66349, a 
Federal Register notice requesting public comments and announcing 
public meetings on the design of YouthBuild grants. The notice sought 
public input and observations on the optimum number of years and amount 
of grant awards, ways to ensure grantees meet educational and 
employment outcomes, how capacity building grants can be strengthened, 
and ways to improve any other aspect of the program. The Department 
received four comments relating to safety issues in response to the 
Federal Register notice, including comments from the National Institute 
for Occupational Safety and Health (NIOSH), the Department's 
Occupational Safety and Health Administration (OSHA), the University of 
California at Berkeley Labor Occupational Health Program, and the 
University of North Carolina Injury Prevention Research Center. The 
NIOSH comments emphasized the dangers of youth working in construction 
and noted that youth fatalities in construction are related to 
noncompliance with child labor laws and occupational safety and health 
regulations. The NIOSH comments referenced a review of OSHA 
investigations of fatally injured teenage construction workers between 
1984 and 1998 which found that approximately half of the 76 
investigations of deaths to youth under 18 involved apparent violations 
of child labor laws.\1\ The NIOSH comments also referenced a survey in 
North Carolina of youth ages 16 and 17 working in construction that 
found that 84 percent of the youth had performed at least one task 
clearly prohibited by child labor laws, while 47 percent had performed 
three or more tasks prohibited by child labor laws.\2\
---------------------------------------------------------------------------

    \1\ Sarua A, Philips P, Lillquist D, Sesek R, ``Fatal Injuries 
to Construction Workers in the U.S.,'' American Journal of 
Industrial Medicine, 2003.
    \2\ Runyon CW, Dal Santo J, Schulman M, Lipscomb HJ, Harris TA, 
``Work Hazards and Workplace Safety Violations Experienced by 
Adolescent Construction Workers,'' Archives of Pediatric and 
Adolescent Medicine, 2006.
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    NIOSH recommended that the Department comprehensively integrate 
worker safety and associated training into the YouthBuild program by

[[Page 52679]]

incorporating the following requirements in the program:
    (a) Comprehensive, documented training on construction safety for 
youth working on YouthBuild projects, including requirements for youth 
to demonstrate knowledge and proficiency in hazard identification, 
abatement, and safe work practices;
    (b) Compliance with Federal and State child labor laws and 
occupational safety and health regulations;
    (c) Written, jobsite specific, safety plans overseen by an on-site 
supervisor with the knowledge, skills, and authority to correct safety 
and health hazards and enforce the site-specific safety plan;
    (d) Provision of necessary personal protective equipment to youth 
working on YouthBuild projects; and
    (e) Reporting of all injuries and illnesses to youth working on 
YouthBuild projects, along with documentation on remedial measures to 
prevent future similar injuries and help ensure that YouthBuild is a 
model program that takes active steps for participant safety and 
health.
    The comments from OSHA similarly stressed the importance of safety 
training and identification of worksite hazards. OSHA's comments 
recommended that YouthBuild grantees should demonstrate an effective, 
comprehensive occupational safety and health management system that 
includes four basic elements:
    (a) Management leads the way in emphasizing safety;
    (b) The worksite is continuously analyzed to identify existing and 
potential hazards;
    (c) Methods to prevent or control existing hazards are put in 
place; and
    (d) Managers, supervisors, and participants are trained in safety 
practices, including new-hire training and ongoing weekly or daily 
safety training.
    The comments from the University of California and the University 
of North Carolina both strongly recommended that YouthBuild grantees be 
subject to the hazardous orders in the child labor regulations.
    Based upon the concerns raised by these commenters, the Department 
is proposing to require that YouthBuild grantees not only comply with 
Federal and State health and safety standards, including the hazardous 
orders in the child labor regulations, but also provide: comprehensive 
safety training for youth working on YouthBuild construction projects; 
have written, jobsite specific, safety plans overseen by an on-site 
supervisor with authority to enforce safety procedure; provide 
necessary personal protective equipment to youth working on YouthBuild 
projects; and submit injury incident reports to the Department. The 
intent of these proposed regulations is to protect the health and 
safety of YouthBuild participants on YouthBuild work sites, and to 
ensure that YouthBuild grantees comply with child labor laws.
    YouthBuild grantees must adhere to all safety guidelines, laws and 
regulations required by all Federal, State and local laws which include 
the Department's OSHA regulations, as well as the Department's Wage and 
Hour Division's (WHD) child labor regulations. Among other things, 
these provisions prohibit youth ages 16 and 17 from working in 
identified hazardous occupations. Occupations prohibited for 16 and 17 
year-olds under these ``hazardous orders'' relating to construction 
include, but are not limited to, operating circular saws, working on or 
about roofs, performing demolition work, excavating and trenching, 
operating a fork lift or a hoist, and driving a motor vehicle on the 
job.
What are the reporting requirements for youth safety? (Sec.  672.605)
    The Department places high priority on the safety of YouthBuild 
participants. The comments by NIOSH about the design of the YouthBuild 
program specifically recommend that the Department require the 
``reporting of all injuries and illnesses to youth working on 
YouthBuild projects, along with documentation on remedial measures to 
prevent future similar injuries and help ensure that YouthBuild is a 
model program that takes active steps for participant safety and 
health.''
    By requiring grantees to complete and file injury incident reports 
for accidents incurred by youth while working on YouthBuild projects, 
the Department will be able to determine whether youth are being 
properly trained under safe conditions while participating in the 
YouthBuild program.
    The working conditions of YouthBuild participants are subject to 
Federal and State health and safety standards under 20 CFR 667.274. 
Such standards include requirements under 29 CFR part 1904 that 
employers in the construction industry and other non-exempt industries 
record occupational injuries and illnesses and keep these reports on 
file for 5 years. These reports include individual incident reports, a 
log of injuries, and an annual summary of incidents. In addition, 
YouthBuild grantees must send a copy of the incident reports to the 
Department within 7 days of the incident. Requiring YouthBuild grantees 
to submit incident reports of occupational injuries and illnesses to 
the Department will serve to emphasize to grantees and their staff the 
importance of safety. The Department will be able to use the incident 
reports to respond in a timely manner to require corrective actions at 
particular sites. Corrective actions may include any of the following: 
requiring grantees to modify or improve safety training; alert all 
YouthBuild sites of hazards identified in incident reports; and, in 
some cases, to sanction or close sites in which a flagrant safety 
violation or pattern of violations has resulted in a serious accident.
What environmental protection laws apply to the YouthBuild program? 
(Sec.  672.610)
    All YouthBuild worksites are expected to be in compliance with all 
applicable Federal, State, and local environmental protection laws, as 
YouthBuild participants spend a large portion of their training time on 
YouthBuild worksites.
    It should be noted that the regulations implementing HUD's 
YouthBuild program contained environmental procedures which governed 
HUD's determination of whether any environmental thresholds in the 
agency's National Environmental Policy Act (NEPA) regulations would be 
exceeded as a result of funding the ``lease, acquisition, 
rehabilitation, or new construction of real property that is proposed 
for housing project development.'' 24 CFR 585.307(a). However, HUD's 
environmental procedures expressly did not apply to ``HUD's approval of 
grants where the applicant proposes to use YouthBuild funds solely to 
cover any costs for classroom and/or on-the-job construction t