; (2) by inserting after clause (i) the following: (ii) Greater reservation of funds The local board may reserve and use more than 20 percent of the funds so allocated, to pay for the Federal share of the cost described in clause (i), if the Secretary determines that the local board has demonstrated that— (I) there is a need and demand in the local area for additional incumbent worker training program positions (beyond the positions that could be offered through the reservation described in clause (i)), including specifying the number of employers and workers that could be served through the additional program positions; (II) training through an incumbent worker training program that is in existence on the day on which information is submitted for the demonstration (referred to in this clause as an existing incumbent worker training program ) has resulted in an incumbent worker of an employer acquiring new skills that allow the worker to obtain a position with such employer requiring higher skills or a higher-paid position than the pre-training position of the incumbent worker, and the employer intends to hire an additional worker to fill the pre-training position of the incumbent worker; and (III) the effectiveness of the existing incumbent worker training program of the employer referred to in subclause (II), as evaluated on local performance measures based on the primary indicators of performance specified in section 116(b)(2)(A)(i). ; and (3) in clause (iii), as redesignated by paragraph (1) of this subsection, by striking clause (i) and inserting clause (i) or (ii) .