                                 CODE OF VIRGINIA

LITHIUM-ION BATTERY SEPARATOR MANUFACTURING GRANT FUND (§ 59.1-284.45)

A. As used in this chapter, unless the context requires a different meaning:
			&#8220;Capital investment&#8221; means an expenditure by or on behalf of a
qualified company on or after July 1, 2024, on or for real property, taxable
tangible personal property, or both, at a facility in an eligible locality that
is properly chargeable to a capital account or would be so chargeable with a
proper election under Virginia law. Such term shall include (i) the purchase or
lease of furniture, fixtures, business personal property, machinery, and tools,
including under an operating lease, and (ii) expected building construction and
up-fit by or on behalf of a qualified company.
			&#8220;Eligible locality&#8221; means Pittsylvania County.
			&#8220;Facility&#8221; means the building, group of buildings, or corporate
campus, including any related machinery and tools, furniture, fixtures, and
business personal property, that is located at or near a qualified
company&#8217;s operations in an eligible locality and is owned, leased,
licensed, occupied, or otherwise operated by a qualified company.
			&#8220;Fund&#8221; means the Lithium-Ion Battery Separator Manufacturing
Grant Fund.
			&#8220;Grants&#8221; means the grant payments from the Fund that are awarded
to a qualified company in an aggregate amount not to exceed $60,597,000. The
proceeds of any grants may be used by the qualified company for costs of
construction and development of the facility, or any other lawful purpose.
			&#8220;Memorandum of understanding&#8221; means a performance agreement or
related document to be entered into by a qualified company, the Commonwealth,
and VEDP that sets forth the requirements for capital investment and the
creation of new full-time jobs by a qualified company to be eligible for grants
from the Fund.
			&#8220;New full-time job&#8221; means a job position for an employee of a
qualified company (i) that is principally located at a facility; (ii) for which
the average annual wage is at least $45,896, subject to an escalation factor for
each year as set forth in the memorandum of understanding; (iii) for which the
qualified company provides standard fringe benefits; and (iv) that requires a
minimum of either (a) 35 hours of an employee&#8217;s time per week for the
entire normal year of the qualified company&#8217;s operations, which
&#8220;normal year&#8221; shall consist of at least 48 weeks, or (b) 1,680 hours
per year. Seasonal or temporary positions and positions with construction
contractors, vendors, suppliers, and similar multiplier or spin-off jobs shall
not qualify as new full-time jobs. The Commonwealth may assess compliance with
the new full-time job requirements for a qualified company by reference to the
new payroll generated by a qualified company if provided for in the memorandum
of understanding.
			&#8220;Qualified company&#8221; means a company, including its affiliates,
that engages in the manufacture of lithium-ion battery separators and that on
and after July 1, 2024, but before July 1, 2045, is expected to (i) make a
capital investment of at least $1.3506 billion and (ii) create and maintain at
least 2,015 new full-time jobs.
			&#8220;Secretary&#8221; means the Secretary of Commerce and Trade or his
designee.
			&#8220;VEDP&#8221; means the Virginia Economic Development Partnership
Authority.

B. There is hereby created in the state treasury a special nonreverting fund to
be known as the Lithium-Ion Battery Separator Manufacturing Grant Fund. The Fund
shall be established on the books of the Comptroller. All funds appropriated to
the Fund shall be paid into the state treasury and credited to the Fund.
Interest earned on moneys in the Fund shall remain in the Fund and be credited
to it. Any moneys remaining in the Fund, including interest thereon, at the end
of each fiscal year shall not revert to the general fund but shall remain in the
Fund. Moneys in the Fund shall be used to pay grants pursuant to this chapter.
Expenditures and disbursements from the Fund shall be made by the State
Treasurer on warrants issued by the Comptroller pursuant to subsection F.

C. A qualified company shall be eligible to receive grants each fiscal year
expected to begin with the Commonwealth&#8217;s fiscal year starting on July 1,
2026, and ending with the Commonwealth&#8217;s fiscal year starting on July 1,
2045, unless such timeframe is extended in accordance with a memorandum of
understanding. Grants awarded pursuant to this section shall be subject to
appropriation by the General Assembly during each such fiscal year and are
contingent on a qualified company meeting the requirements set forth in this
chapter and in the memorandum of understanding for the number of new full-time
jobs created and maintained and the amount of capital investment made.

D. The aggregate amount of grants payable under this section shall not exceed
$60,597,000. Grants are anticipated to be paid in 20 annual fiscal year
installments, calculated in accordance with a memorandum of understanding, as
follows:

   1. $691,545, for the Commonwealth&#8217;s fiscal year beginning July 1, 2026;

   2. $1,558,800, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2027;

   3. $3,423,813, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2028;

   4. $4,553,857, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2029;

   5. $6,928,781, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2030;

   6. $11,147,397, less the total amount of grants previously awarded pursuant to
   this subsection, for the Commonwealth&#8217;s fiscal year beginning July 1,
   2031;

   7. $15,084,768, less the total amount of grants previously awarded pursuant to
   this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2032;

   8. $19,253,760, less the total amount of grants previously awarded pursuant to
   this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2033;

   9. $22,699,410, less the total amount of grants previously awarded pursuant to
   this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2034;

   10. $26,145,060, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2035;

   11. $29,590,710, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2036;

   12. $33,036,360, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2037;

   13. $36,482,010, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2038;

   14. $39,927,660, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2039;

   15. $43,373,310, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2040;

   16. $46,818,960, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2041;

   17. $50,264,610, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2042;

   18. $53,710,260, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2043;

   19. $57,155,910, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2044; and

   20. $60,597,000, less the total amount of grants previously awarded pursuant
   to this subsection for the Commonwealth&#8217;s fiscal year beginning July 1,
   2045.
   				In accordance with the memorandum of understanding, actual grant payment
   amounts and fiscal years may differ from the schedule in this subsection and
   may be extended beyond the fiscal year beginning July 1, 2045, but in no event
   shall the aggregate amount of grant payments across all fiscal years exceed
   $60,597,000. In addition, in no event shall grants be paid from the Fund for
   more than 20 consecutive years. Any grants not earned by the end of a 20-year
   payment period shall be forfeited.

E. A qualified company applying for a grant installment under this section shall
provide verifiable documentation satisfactory to the Secretary evidencing (i)
the aggregate number of new full-time jobs created and maintained as of the last
day of the calendar year preceding the application and (ii) the amount of
capital investment made in the calendar year preceding the application. The
application and evidence shall be filed with the Secretary in person, by mail,
or as otherwise agreed upon in the memorandum of understanding no later than
April 1 each year reflecting performance through the last day of the prior
calendar year. Failure to meet the filing deadline shall result in a deferral of
any scheduled grant installment payment pursuant to subsection D. For such
filings made by mail, the postmark cancellation shall govern for purposes of the
date of the filing determination.

F. Within 60 days of receiving an application and satisfactory evidence pursuant
to subsection E, the Secretary shall certify to the Comptroller and the
qualified company the amount of grants to which such qualified company is
entitled for payment. Payment of such grants shall be made by check issued by
the State Treasurer on warrant of the Comptroller in the Commonwealth&#8217;s
fiscal year following the submission of an application. The Comptroller shall
not draw any warrant to issue checks for grants without a specific appropriation
for the same.

G. As a condition of receipt of grants under this section, a qualified company
shall make available to the Secretary for inspection, upon request, all
documents that are relevant or applicable to determining whether the qualified
company has met the requirements for receipt of a grant pursuant to this section
and subject to the memorandum of understanding. Any such documents appropriately
identified by a qualified company shall be considered confidential and
proprietary.

HISTORY: 2025, cc. 93, 110.