(a) States must use a portion of the funds reserved for Statewide
workforce investment activities under WIA sections 128(a) and 133(a)(1)
to provide Incentive Grants to local areas for regional cooperation
among local boards (including local boards for a designated region as
described in WIA section 116(c)), for local coordination of activities
carried out under this Act, and for exemplary performance on the local
performance measures established under subpart C of this part.
(b) The amount of funds used for Incentive Grants under paragraph
(a) of this section and the criteria used for determining exemplary
local performance levels to qualify for the incentive grants are
determined by the Governor. (WIA sec. 134(a)(2)(B)(iii).)