To establish a grant program to support cluster-based economic development efforts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cluster-Based Economy Enhancement 
Act of 2009''.

SEC. 2. GRANTS FOR CLUSTER-BASED ECONOMIC DEVELOPMENT.

    (a) In General.--Title II of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3141 et seq.) is amended by adding 
at the end the following:

``SEC. 219. GRANTS FOR CLUSTER-BASED ECONOMIC DEVELOPMENT.

    ``(a) Definitions.--In this section, the following definitions 
apply:
            ``(1) Cluster.--The term `cluster' means a geographic 
        concentration of business entities that--
                    ``(A) are in competing, complementary, or 
                interdependent firms and industries;
                    ``(B) do business with one another; and
                    ``(C) have common needs for talent, technology, and 
                infrastructure.
            ``(2) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) a State or local government;
                    ``(B) an institution of higher education; or
                    ``(C) a nonprofit economic development 
                organization.
            ``(3) Region.--The term `region' means an area that on the 
        date of submission of an application for a grant under this 
        section, meets 1 or more of the criteria described in section 
        301(a), and--
                    ``(A) is determined by the Secretary to qualify for 
                a grant under this section; or
                    ``(B) has been designated by the Consolidated Farm 
                and Rural Development Act and the Food, Conservation, 
                and Energy Act of 2008, as an area in which a regional 
                development commission has been established, including:
                            ``(i) The delta region.--The term `Delta 
                        Region' means the region defined in section 
                        382A(2) of the Consolidated Farm and Rural 
                        Development Act (7 U.S.C. 2009aa(2)).
                            ``(ii) The northern great plains region.--
                        The term `Northern Great Plains Region' means 
                        the region defined in section 383A(4) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 2009bb(4)).
                            ``(iii) The southeast crescent region.--The 
                        term `Southeast Crescent Region' means the 
                        region defined in section 15731 of title 40, 
                        United States Code (as amended by the Food, 
                        Conservation, and Energy Act of 2008 (Public 
                        Law 110-234)).
                            ``(iv) The southwest border region.--The 
                        term `Southwest Border Region' means the region 
                        defined in section 15732 of title 40, United 
                        States Code (as amended by the Food, 
                        Conservation, and Energy Act of 2008 (Public 
                        Law 110-234)).
                            ``(v) The northern border region.--The term 
                        `Northern Border Region' means the region 
                        defined in section 15733 of title 40, United 
                        States Code (as amended by the Food, 
                        Conservation, and Energy Act of 2008 (Public 
                        Law 110-234)).
    ``(b) Grants.--On the application of an eligible applicant, the 
Secretary may make a grant--
            ``(1) to assess the potential for the development of 
        clusters and the enhancement of existing clusters;
            ``(2) to establish cluster development programs in a 
        region; and
            ``(3) to promote cluster development programs in a region 
        and support the staff who operate such programs.
    ``(c) Cost Sharing.--
            ``(1) In general.--The Federal share of the cost of a 
        project carried out using funds made available under this 
        section shall be 50 percent.
            ``(2) In-kind contributions.--Not more than 50 percent of 
        the non-Federal share of the cost of a project carried out 
        using funds made available under this section may be provided 
        through in-kind contributions.
            ``(3) Inapplicability of certain section.--Section 204 
        shall not apply to this section.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000, to remain available 
until expended.''.
    (b) Conforming Amendment.--The table of contents contained in 
section 1(b) of the Public Works and Economic Development Act of 1965 
(42 U.S.C. 3121 note) is amended by inserting after the item relating 
to section 218 the following:

``Sec. 219. Grants for cluster-based economic development.''.

Summary: Cluster-Based Economy Enhancement Act of 2009 - Amends the Public Works and Economic Development Act of 1965 to authorize the Secretary of Commerce to make grants to a state or local government, an institution of higher education, or a nonprofit economic development organization to: (1) assess the potential for the development or enhancement of business clusters (geographic concentrations of business entities that are in competing, complementary, or interdependent firms and industries, that do business with one another, and that have common needs for talent, technology, and infrastructure); (2) establish cluster development programs in regions determined by the Secretary to qualify for a grant or which have been designated by the Consolidated Farm and Rural Development Act and the Food, Conservation, and Energy Act of 2008 as areas in which regional development commissions have been established; and (3) promote cluster development programs in such regions and support the staff who operate such programs.

Limits: (1) the federal share of the cost of projects carried out using funds authorized by this Act to 50%; and (2) the portion of the non-federal share of project costs that may be provided through in-kind contributions to 50%.