STATEHOUSE UPDATE NEWSLETTER

News from Springfield

Session Update

Veto session begins today, October 14th, through Thursday, October 16th, and again October 28^th-30^th. You can view the calendar here. If you have any pressing legislative needs or specific items you would like to discuss, please don’t hesitate to reach out.

This summer, Governor Pritzker vetoed just four pieces of legislation. Two bills received a “total veto,” while the others received an amendatory and reduction veto. SB 246, which allows the Treasurer to establish a non-profit investment pool for Section 501(c)(c) or 501(c)(5) non-profit organizations, was the only vetoed bill with any impact on business.

It's unlikely, but remains unclear, if there is any desire for the General Assembly to take action to override any of these vetoes.

View this week's committee House schedule here and Senate schedule here.

Joint Employers Statement on IL AFL-CIO’s Withdrawal from the Agreed Bill Process 

Recently, the Joint Employers released the following statement after the IL AFL-CIO announced it would withdraw from the agreed bill process:

“For nearly four decades, the agreed bill process has set the standard in Illinois for collaboration on difficult and complex policy issues impacting the unemployment insurance and workers’ compensation systems. Regardless of which political party held power, the process ensured business groups and organized labor negotiated in good faith to find common ground to protect workers, employers, and grow the economy.

Whether Democrat or Republican, every administration since 1982 has joined legislative leaders in both chambers in supporting the agreed bill process, recognizing it is a balanced approach that has served Illinois well. Indeed, this process has resulted in sound policies that have led to a healthy unemployment trust fund with good benefits for unemployed workers, and a workers compensation system that justly provides for injured workers at an average cost for employers. For Illinois to succeed, businesses need an economic climate that encourages growth, which includes investing in employees. This process is working, with state leaders touting Illinois’ recent economic resurgence.

During a time of increasing political polarization, policymakers should be looking for ways to maintain collaboration instead of further deepening divides. While we are disappointed organized labor has chosen to lean into the politics of division, we encourage the Governor’s office, legislative leaders and rank and file members to embrace compromise and communication and stand by the agreed bill process as a way for stakeholders to work through their differences and drive progress for all. Illinois – and our nation – needs leadership, civility and bipartisan cooperation.”

The Joint Employers representing Illinois companies and their workers are comprised of the Associated General Contractors of Illinois, Chicagoland Chamber of Commerce, Illinois Chamber of Commerce, Illinois Manufacturers’ Association, Illinois Retail Merchants Association, and the National Federation of Independent Business. 

Word to lawmakers: Slow down, consider the impact of energy legislation

In a recent op-ed in the Daily Herald, President & CEO Lou Sandoval discussed energy legislation and thoughts he’d like to share with the General Assembly.

Illinois stands at a critical crossroads when it comes to our energy future. Businesses across the state are eager to see policies that support a reliable, affordable, and modern energy system — one that strengthens our economy and keeps Illinois competitive in the race for jobs and investment. Unfortunately, the proposed energy omnibus bill moving through Springfield threatens to do the opposite.

The Illinois Chamber of Commerce represents employers of every size and sector across the state, from small businesses to global corporations. We advocate for pro-growth, pro-business policies that support a competitive environment where businesses can thrive. And our message is simple: Illinois cannot afford an energy policy that drives up costs and puts economic growth on the back burner. Yet that is exactly what the current version of the omnibus energy legislation would do, while doing little to address the uncertainty of our energy supply as the state seeks to attract new businesses to Illinois.

Rising energy costs are a top concern for businesses in every corner of the state.

Companies considering expansions, relocations or new investments are watching Illinois closely. If we become known as a high-cost state with unpredictable energy policy, we risk losing out on job creation and economic development to more business-friendly neighbors. At a time when Illinois is trying to attract new industry, this bill sends the wrong message.

Read the full op-ed here.

Chamber Tribune Op-Ed: Illinois’ Economy Relies on Safe, Reliable Transit. But We Need to Get it Right

In a recent Chicago Tribune op-ed, Illinois Chamber President & CEO Lou Sandoval weighed in on mass transit governance reform and the fiscal cliff impacting the Chicagoland area and numerous downstate communities.

In April, the Illinois Chamber of Commerce published its “10 business principles to mass transit reform” that we shared with our elected leaders to consider as they evaluated solutions to address the looming $770 million mass transit funding cliff (a sum that has recently been partially reduced) and worked to create a more accountable, safe, and reliable mass transit system. These ten guiding principles have been the lens by which the Chamber has evaluated mass transit proposals, including House Bill 3438.

As Sandoval clarified, real, sustainable reform needs to look at increased transparency and accountability, public safety, service reliability, and coordination at all levels of government. A successful reform package will also include answers to many outstanding questions transit riders need answered.

We urge our elected leaders to continue identifying reasonable cost efficiencies and spending reforms, true governance reform, and a fiscally responsible approach to revenue.

Read the editorial here.

Energy Policy Update

Energy has been an incredibly lively discussion both in Illinois and nationally. With capacity auctions resulting in significant increases in both the PJM and MISO regions in Illinois, and energy prices reflecting rate increases this summer, legislators have been seeking to thoroughly discuss the energy omnibus discussion going back to 2024 and the Lame Duck session in January 2025, when a “skinny” energy bill was passed.

Back in early 2025, when the then-skinny bill passed, you will recall several of the issues being discussed today were similarly negotiated. The lame duck legislation contained changes related to transmission development standards, new HIB designations for battery energy storage solution facilities, made changes to the Solar for All Program, renewable resource procurement, adjusted the RECs, and limited other changes. Many of the issues, at the time, were punted to the 2025 Spring session, with the ICC, IPA, and IEPA being directed to take on several “workshop” efforts regarding procurement processes. The 2025 Session allowed for several of these discussions to continue, however, session adjourned without any meaningful resolution on many of the larger outstanding items.

This summer, negotiations continued and several public hearing were held to allow interested parties to opine on the merits of several of the provisions that were included in SB 40 (Preston/Hoffman) that failed to pass. Now, the legislature, again, is gearing up for an opportunity to tackle the seemingly never-ending energy debate. To continue discussions, Leader Jay Hoffman in the House introduced an amendment to SB 25 (Hastings/Hoffman). The new legislation contained many provisions that have been advocated for by my environmental community, industry, and other interested stakeholders. Among these discussions that are being considered for the Veto Session include the following:

• Battery Energy Storage procurements and development support
• Focus on geothermal energy systems
• Interconnectivity and transmission development
• Changes to the Renewable Portfolio Standard (RPS)
• Increased focus on data center regulations, including increased water and resource usage regulation
• Renewed focus on energy efficiency standards
• Additional utility data accountability
• Integrated Resource Planning (IRPs) requirements
• Focus on additional clean energy procurements

In discussions with key legislators leading on the issue, there appears to be some doubt as to whether or not an energy omnibus bill will pass (either as is or in a different version). With a light first week of Veto Session from a committee standpoint, and the second week of Veto only two weeks away, it remains unclear if a larger energy omnibus will have the support and agreement necessary to pass. We will continue to monitor this legislation and other developments on the issue as we go into the Veto Session. Two major issues on the energy and environment front that will likely be tackled next year, in addition to any unresolved issues from the Veto Session will likely be (i) the future of natural gas and (ii) nuclear. These issues will likely be tackled in 2026.

If you have any interest in the energy proposal, or if you may have any questions, please contact Ramiro Hernandez.