; and (II) for the second such subsequent year, an amount equal to 50 percent of the amount received in the such previous year. (2) Supplemental grants (A) In general The Secretary shall disburse the remainder of amounts not disbursed under paragraph (1) for such fiscal year for the purpose of making grants to cities and counties whose application under section 3404— (i) contains a report concerning the dissemination of emergency relief funds under paragraph (1) and the plan for utilization of such funds, if applicable; (ii) demonstrates the need in such local area, on an objective and quantified basis, for supplemental financial assistance to combat substance use disorder; (iii) demonstrates the existing commitment of local resources of the area, both financial and in-kind, to combating substance use disorder; (iv) demonstrates the ability of the area to utilize such supplemental financial resources in a manner that is immediately responsive and cost effective; (v) demonstrates that resources will be allocated in accordance with the local demographic incidence of substance use disorders and drug overdose mortality; (vi) demonstrates the inclusiveness of affected communities and individuals with substance use disorders, including those communities and individuals that are disproportionately affected or historically underserved; (vii) demonstrates the manner in which the proposed services are consistent with the local needs assessment and the statewide coordinated statement of need required in section 3413(e); (viii) demonstrates success in identifying individuals with substance use disorders