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‘‘(I) other entities and organizations, as de-
termined by the Regional Board;
‘‘(J) cooperatives; and
‘‘(K) consortia of entities and organizations
described in subparagraphs (A) through (J);
‘‘(4) represents a region inhabited by—
‘‘(A) more than 25,000 individuals, as de-
termined in the latest available decennial census
conducted under section 141(a) of title 13,
United States Code; or
‘‘(B) in the case of a region with a popu-
lation density of less than 2 individuals per
square mile, at least 10,000 individuals, as de-
termined in that latest available decennial cen-
sus;
‘‘(5) has a membership of which not less than 25
percent, nor more than 40 percent, represents—
‘‘(A) units of local government and Indian
tribes described in subparagraphs (A) and (D) of
paragraph (3);
‘‘(B) nonprofit community and economic
development organizations and institutions of
higher education described in subparagraphs (B)
and (G) of paragraph (3); or
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‘‘(C) private business (including chambers
of commerce and cooperatives) and agricultural,
natural resource, and other asset-based related
industries described in subparagraphs (C) and
(F) of paragraph (3);
‘‘(6) has a membership that may include an offi-
cer or employee of a Federal or State agency, serving
as an ex-officio, nonvoting member of the Regional
Board to represent the agency; and
‘‘(7) has organizational documents that dem-
onstrate that the Regional Board shall—
‘‘(A) create a collaborative, inclusive public-
private strategy process;
‘‘(B) develop, and submit to the Secretary
for approval, a regional investment strategy that
meets the requirements of section 385E, with
benchmarks—
‘‘(i) to promote investment in rural
areas through the use of grants made avail-
able under this subtitle; and
‘‘(ii) to provide financial and technical
assistance to promote a broad-based re-
gional development program aimed at in-
creasing and diversifying economic growth,
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improved community facilities, and im-
proved quality of life;
‘‘(C) implement the approved regional in-
vestment strategy;
‘‘(D) provide annual reports to the Sec-
retary and the National Board on progress made
in achieving the benchmarks of the regional in-
vestment strategy, including an annual financial
statement; and
‘‘(E) select a non-Federal organization
(such as a regional development organization) in
the local area served by the Regional Board that
has previous experience in the management of
Federal funds to serve as fiscal manager of any
funds of the Regional Board.
‘‘(b) URBAN AREAS.—A resident of an urban area
may serve as an ex-officio member of a Regional Board.
‘‘(c) DUTIES.—A Regional Board shall—
‘‘(1) create a collaborative and inclusive plan-
ning process for public-private investment within a
region;
‘‘(2) develop, and submit to the Secretary for ap-
proval, a regional investment strategy;
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‘‘(3) develop approaches that will create perma-
nent resources for philanthropic giving in the region,
to the maximum extent practicable;
‘‘(4) implement an approved strategy; and
‘‘(5) provide annual reports to the Secretary and
the National Board on progress made in achieving the
strategy, including an annual financial statement.
‘‘SEC. 385E. REGIONAL INVESTMENT STRATEGY GRANTS.
‘‘(a) IN GENERAL.—The Secretary shall make regional
investment strategy grants available to Regional Boards for
use in developing, implementing, and maintaining regional
investment strategies.
‘‘(b) REGIONAL INVESTMENT STRATEGY.—A regional
investment strategy shall provide—
‘‘(1) an assessment of the competitive advantage
of a region, including—
‘‘(A) an analysis of the economic conditions
of the region;
‘‘(B) an assessment of the current economic
performance of the region;
‘‘(C) a background overview of the popu-
lation, geography, workforce, transportation sys-
tem, resources, environment, and infrastructure
needs of the region; and
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‘‘(D) such other pertinent information as
the Secretary may request;
‘‘(2) an analysis of regional economic and com-
munity development challenges and opportunities,
including—
‘‘(A) incorporation of relevant material
from other government-sponsored or supported
plans and consistency with applicable State, re-
gional, and local workforce investment strategies
or comprehensive economic development plans;
and
‘‘(B) an identification of past, present, and
projected Federal and State economic and com-
munity development investments in the region;
‘‘(3) a section describing goals and objectives
necessary to solve regional competitiveness challenges
and meet the potential of the region;
‘‘(4) an overview of resources available in the re-
gion for use in—
‘‘(A) establishing regional goals and objec-
tives;
‘‘(B) developing and implementing a re-
gional action strategy;
‘‘(C) identifying investment priorities and
funding sources; and
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‘‘(D) identifying lead organizations to exe-
cute portions of the strategy;
‘‘(5) an analysis of the current state of collabo-
rative public, private, and nonprofit participation
and investment, and of the strategic roles of public,
private, and nonprofit entities in the development
and implementation of the regional investment strat-
egy;
‘‘(6) a section identifying and prioritizing vital
projects, programs, and activities for consideration by
the Secretary, including—
‘‘(A) other potential funding sources; and
‘‘(B) recommendations for leveraging past
and potential investments;
‘‘(7) a plan of action to implement the goals and
objectives of the regional investment strategy;
‘‘(8) a list of performance measures to be used to
evaluate the implementation of the regional invest-
ment strategy, including—
‘‘(A) the number and quality of jobs, includ-
ing self-employment, created during implementa-
tion of the regional rural investment strategy;
‘‘(B) the number and types of investments
made in the region;
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‘‘(C) the growth in public, private, and
nonprofit investment in the human, community,
and economic assets of the region;
‘‘(D) changes in per capita income and the
rate of unemployment; and
‘‘(E) other changes in the economic environ-
ment of the region;
‘‘(9) a section outlining the methodology for use
in integrating the regional investment strategy with
the economic priorities of the State; and
‘‘(10) such other information as the Secretary de-
termines to be appropriate.
‘‘(c) MAXIMUM AMOUNT OF GRANT.—A regional in-
vestment strategy grant shall not exceed $150,000.
‘‘(d) COST SHARING.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), of
the share of the costs of developing, maintaining, eval-
uating, implementing, and reporting with respect to
a regional investment strategy funded by a grant
under this section—
‘‘(A) not more than 40 percent may be paid
using funds from the grant; and
‘‘(B) the remaining share shall be provided
by the applicable Regional Board or other eligi-
ble grantee.
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‘‘(2) FORM.—A Regional Board or other eligible
grantee shall pay the share described in paragraph
(1)(B) in the form of cash, services, materials, or
other in-kind contributions, on the condition that not
more than 50 percent of that share is provided in the
form of services, materials, and other in-kind con-
tributions.
‘‘SEC. 385F. REGIONAL INNOVATION GRANTS PROGRAM.
‘‘(a) GRANTS.—
‘‘(1) IN GENERAL.—The Secretary shall provide,
on a competitive basis, regional innovation grants to
Regional Boards for use in implementing projects and
initiatives that are identified in a regional rural in-
vestment strategy approved under section 385E.
‘‘(2) TIMING.—After October 1, 2008, the Sec-
retary shall provide awards under this section on a
quarterly funding cycle.
‘‘(b) ELIGIBILITY.—For a Regional Board to receive
a regional innovation grant, the Secretary shall determine
that—
‘‘(1) the regional rural investment strategy of a
Regional Board has been reviewed by the National
Board prior to approval by the Secretary;
‘‘(2) the management and organizational struc-
ture of the Regional Board is sufficient to oversee
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grant projects, including management of Federal
funds; and
‘‘(3) the Regional Board has a plan to achieve,
to the maximum extent practicable, the performance-
based benchmarks of the project in the regional rural
investment strategy of the Regional Board.
‘‘(c) LIMITATIONS.—
‘‘(1) AMOUNT
RECEIVED.—A Regional Board
may not receive more than $6,000,000 in regional in-
novation grants under this section during any 5-year
period.
‘‘(2) DETERMINATION
OF
AMOUNT.—The Sec-
retary shall determine the amount of a regional inno-
vation grant based on—
‘‘(A) the needs of the region being addressed
by the applicable regional rural investment
strategy consistent with the purposes described in
subsection (f)(2); and
‘‘(B) the size of the geographical area of the
region.
‘‘(3) GEOGRAPHIC
DIVERSITY.—The Secretary
shall ensure that not more than 10 percent of funding
made available under this section is provided to Re-
gional Boards in any State.
‘‘(d) COST-SHARING.—
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‘‘(1) LIMITATION.—Subject to paragraph (2), the
amount of a grant made under this section shall not
exceed 50 percent of the cost of the project.
‘‘(2) WAIVER
OF
GRANTEE
SHARE.—The Sec-
retary may waive the limitation in paragraph (1)
under special circumstances, as determined by the
Secretary, including—
‘‘(A) a sudden or severe economic disloca-
tion;
‘‘(B) significant chronic unemployment or
poverty;
‘‘(C) a natural disaster; or
‘‘(D) other severe economic, social, or cul-
tural duress.
‘‘(3) OTHER
FEDERAL
ASSISTANCE.—For the
purpose of determining cost-share limitations for any
other Federal program, funds provided under this sec-
tion shall be considered to be non-Federal funds.
‘‘(e) PREFERENCES.—In providing regional innova-
tion grants under this section, the Secretary shall give—
‘‘(1) a high priority to strategies that dem-
onstrate significant leverage of capital and quality
job creation; and
‘‘(2) a preference to an application proposing
projects and initiatives that would—
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‘‘(A) advance the overall regional competi-
tiveness of a region;
‘‘(B) address the priorities of a regional
rural investment strategy, including priorities
that—
‘‘(i) promote cross-sector collaboration,
public-private partnerships, or the provi-
sion of collaborative gap financing or seed
capital for program implementation;
‘‘(ii) exhibit collaborative innovation
and entrepreneurship, particularly within a
public-private partnership; and
‘‘(iii) represent a broad coalition of in-
terests described in section 385D(a);
‘‘(C) include a strategy to leverage public
non-Federal and private funds and existing as-
sets, including agricultural assets, natural assets,
and public infrastructure, with substantial em-
phasis placed on the existence of real financial
commitments to leverage the available funds;
‘‘(D) create quality jobs;
‘‘(E) enhance the role, relevance, and
leveraging potential of community and regional
foundations in support of regional investment
strategies;
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‘‘(F) demonstrate a history, or involve orga-
nizations with a history, of successful leveraging
of capital for economic development and public
purposes;
‘‘(G) address gaps in existing basic services,
including technology, within a region;
‘‘(H) address economic diversification, in-
cluding 
agricultural 
and 
non-agriculturally
based economies, within a regional framework;
‘‘(I) improve the overall quality of life in
the region (including with respect to education,
health care, housing, recreation, and arts and
culture);
‘‘(J) enhance the potential to expand eco-
nomic development successes across diverse stake-
holder groups within the region;
‘‘(K) include an effective working relation-
ship with 1 or more institutions of higher edu-
cation, tribally controlled colleges or universities,
or tribal technical institutions; or
‘‘(L) help to meet the other regional com-
petitiveness needs identified by a Regional
Board.
‘‘(f) USES.—
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‘‘(1) 
LEVERAGE.—A 
Regional 
Board 
shall
prioritize projects and initiatives carried out using
funds from a regional innovation grant provided
under this section, based in part on the degree to
which members of the Regional Board are able to le-
verage additional funds for the implementation of the
projects.
‘‘(2) PURPOSES.—A Regional Board may use a
regional innovation grant—
‘‘(A) to support the development of critical
infrastructure (including technology deployment
and services) necessary to facilitate the competi-
tiveness of a region;
‘‘(B) to provide assistance to entities within
the region that provide essential public and com-
munity services;
‘‘(C) to enhance the value-added production,
marketing, and use of agricultural and natural
resources within the region, including activities
relating to renewable and alternative energy pro-
duction and usage;
‘‘(D) to assist with entrepreneurship, job
training, workforce development, housing, edu-
cational, or other quality of life services or needs,