establish procedures under which a local government, or a consortium of local governments within a State, may submit an application to the Secretary to establish a program under this part and directly receive payments for expenditures made to carry out the program (in this section referred to as a local government program application ), if the State in which the local government or consortium is located does not elect to establish a State program under this part. (b) Local government program application requirements Subject to subsection (c), a local government program application shall include a plan that meets the requirements of section 1302 in the same manner as such requirements apply to a State. (c) Program requirements The program requirements specified in this part shall apply to a local government or consortium with a local government program application and plan approved under this section in the same manner as such requirements apply to a State except to the extent that a local government or consortium requests, and the Secretary approves, a waiver or modification of any such requirements. (d) Payments The Secretary shall pay a local government or consortium with a local government program application and plan approved under this section in the same manner as the State in which the local government or consortium is located would have been paid under section 1304 if the State had established a State program under this part. 1309. Pro-worker employers demonstration projects (a) Authority To approve demonstration projects The Secretary may authorize States to conduct demonstration projects pursuant to this section which the Secretary finds are likely to promote 1 or more of the purposes described in section 1301(a) through subsidized employment for eligible individuals working for certified pro-worker employers. (b) Conditions for state eligibility A State may be authorized to conduct such demonstration project only if the State satisfies the following conditions: (1) The State submits an application to