Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Happy Thanksgiving to everyone! I’m thankful that you all continue to find this weekly update useful and as always thankful for the support of CITGO as our roundup sponsor. A few topics to read over as you prep your turkey day celebration.
*Government Affairs Roundup brought to you by CITGO*
Storm Relief Deadline Extended for Illinois: Don’t Miss Out on a Low-Interest SBA Loan
The U.S. Small Business Administration (SBA) announced that those impacted by the severe storms, tornadoes, straight-line winds and flooding that occurred on July 13-16, now have more time to apply for SBA’s low-interest physical disaster loans. Businesses and residents who have been damaged from the storms now have until Dec. 13, to apply and see how SBA can help.
The disaster declaration covers Cook, Fulton, Henry, St. Clair, Washinton, Will and Winnebago counties, which are eligible for both physical damage and Economic Injury Disaster Loans (EIDLs) from the SBA.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Corporate Projects in Illinois Rise by 15%
Illinois saw a significant increase in corporate relocations and expansions last fiscal year, with a 15% jump in new projects. Intersect Illinois, the state’s public-private economic development partnership, reported 440 projects for the fiscal year ending June 30, up from 382 the previous year.
The most notable project announced was Gotion’s planned $2 billion battery assembly plant in Manteno, marking one of the largest economic development deals in Illinois history. The project is expected to create 2,600 jobs, though the timeline allows until 2029 for the company to hire its initial workforce of 1,651 under its agreement with the state.
The total number of jobs tied to last year’s expansions and relocations is nearly 13,000, although these roles may take years to materialize. “Fiscal year 2024 represented a period of significant growth for both Intersect Illinois and economic development across our great state,” said John Atkinson, chairman of Intersect Illinois, in a written statement.
This marks the third consecutive year of growth in corporate relocations and expansions for Illinois. As Illinois builds on its recent success, the focus will remain on executing major projects like Gotion’s battery plant while addressing the fiscal challenges that could constrain future economic development.
Judge Dismisses Biometric Privacy Lawsuit Under Amended Illinois Law
A federal judge recently dismissed a biometric privacy lawsuit, citing amendments to Illinois’ Biometric Information Privacy Act (BIPA) made earlier this year. The updated law, signed by Gov. JB Pritzker in August, limits the damages that can be claimed in such cases, signaling a shift in how courts may handle ongoing lawsuits under the revised statute.
The lawsuit, filed by Gregg against Central Transport in March, sought more than $75,000 in damages for alleged violations of BIPA. Gregg claimed the company improperly collected his biometric data—specifically fingerprints used to clock in at work—without providing information on how it would be stored or used.
Under the prior interpretation of BIPA, damages could accrue for each instance biometric data was improperly obtained. This interpretation led to massive settlements, such as the $9.4 million White Castle settlement, which originally faced potential damages of $17 billion.
However, the recent amendment clarified that violations occur just once per individual, rather than each time biometric data is collected or used. Applying this new standard, U.S. District Judge Elaine Bucklo ruled that potential damages in Gregg’s case would not exceed $15,000, disqualifying it from federal court jurisdiction due to the lower amount.
The Illinois Supreme Court, in its White Castle decision earlier this year, prompted state lawmakers to clarify BIPA’s language. The court noted ambiguity in whether violations should accrue for each biometric scan or only once per person. In response, lawmakers revised BIPA to define violations as single occurrences per individual. “The Illinois Supreme Court expressly invited the legislature to ‘make clear its intent regarding the assessment of damages under the act,’” Judge Bucklo wrote in her opinion. She further stated that the amendment must be applied retroactively, as if it had been part of the original law enacted in 2008.
This ruling is considered a significant victory for businesses facing BIPA lawsuits. Chicago attorney Danielle Kays, who represents companies in such cases, highlighted the shift:
“We haven’t seen this trend of single plaintiffs filing and seeking damages on behalf of one individual any longer,” Kays said. The amendment has reduced the frequency of large-scale claims, she added, noting that many lawsuits fail to demonstrate tangible harm from BIPA violations, such as data breaches.
While business groups welcomed the clarification, some argued the amendments didn’t go far enough. They sought broader retroactive protections and questioned the practical impact of BIPA violations, given the absence of demonstrated harm. Despite the changes, the revised law remains unique in the U.S., with Illinois being the only state with such stringent biometric data protections. As courts begin applying the updated BIPA language, its long-term effects on both plaintiffs and businesses will become clearer.
The dismissal of Gregg’s case reflects a turning point in the interpretation of Illinois’ biometric privacy law. By limiting damages and clarifying the scope of violations, the amended BIPA seeks to balance protecting individuals’ biometric data with mitigating excessive financial penalties for businesses.
Illinois Hydrogen Project Secures Initial Federal Funding
The Department of Energy (DOE) has taken a significant step in advancing clean energy with a $22.2 million initial investment for the Midwest Alliance for Clean Hydrogen (MachH2). This funding will kickstart planning for a Midwest hydrogen hub, a project expected to span 12 years, involve a $1 billion investment, and create over 12,000 jobs.
The MachH2 initiative aims to demonstrate the commercial-scale viability of hydrogen fuel cells, a promising technology for reducing reliance on fossil fuels in transportation and industry. Hydrogen, like batteries, is being explored for its potential to decarbonize hard-to-reach sectors. However, a key challenge lies in the energy-intensive process of extracting hydrogen from water.
Illinois plays a central role in the multistate project, which also involves Iowa, Indiana, and Michigan:
- Constellation Energy’s LaSalle Generating Facilities in Illinois will provide the electricity needed to produce hydrogen.
- BP’s Whiting Refinery in Indiana will serve as another hydrogen production site.
- Invenergy, based in Chicago, will produce hydrogen using a solar facility in Clinton, Iowa.
- Michigan will establish a hydrogen production facility and develop fueling infrastructure for trucks and buses.
“Federal investment in hydrogen hubs represents a once-in-a-lifetime opportunity to significantly reduce emissions, create new clean-energy jobs, and invest in historically overburdened communities,” said Dorothy Davidson, CEO of MachH2. Announced a year ago, the hydrogen hub is part of a broader clean-energy agenda championed by Gov. JB Pritzker, which also includes electric vehicle (EV) production and EV charging infrastructure.
MachH2 is one of seven hydrogen projects funded nationwide through the Biden administration’s infrastructure legislation passed in 2021. Despite bipartisan support, there are concerns about potential opposition from Donald Trump if he returns to office. “We’re still excited about moving forward and believe this has bipartisan support,” Davidson added.
More pressing than political uncertainty are the Treasury Department’s preliminary rules, which state that only “new” hydrogen sources qualify for the program’s tax breaks. This restriction could exclude Constellation’s LaSalle nuclear plants, which date back to the 1980s. “While the signing of a cooperative agreement with the DOE is a welcome milestone, Constellation’s plans remain on hold because Treasury guidelines don’t allow existing clean-energy resources to receive the hydrogen-production tax credit,” Constellation said in a statement.
The company and other stakeholders are awaiting clarification from the Treasury Department, which is expected to release final rules by the end of the year. “Without workable rules for existing clean energy to qualify, the U.S. clean-hydrogen economy as a whole will struggle to get off the ground,” the statement warned.
The MachH2 project represents a bold vision for clean energy in the Midwest, but its success depends on resolving regulatory challenges and ensuring a stable policy environment. If successful, it could mark a transformative step in decarbonizing energy-intensive industries while driving economic growth across the region.
Corporate Transparency Act Reminder
Under the Corporate Transparency Act, U.S. small businesses need to file beneficial ownership information reports (BOIR) with the Department of the Treasury by January 1, 2025. Not filing by the deadline puts small business owners at risk of fines and criminal penalties.
The law was enacted in 2021 to combat illicit activity, including tax fraud, money laundering, and terrorism financing, by capturing more ownership information for specific U.S. businesses. Businesses must provide their legal name and trademarks, as well as their current U.S. address. They’ll also need to provide a taxpayer identification number and specify the jurisdiction where they were formed or registered.
To help our members, we are sharing information from our partnership with the US Chamber of Commerce, providing a free step-by-step guide to help complete the reports.
– Download the U.S. Chamber’s Guide to Complying with the Corporate Transparency Act
– What Every Business Needs to Know About the Corporate Transparency Act
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
815.727.5371 main
815.727.5373 direct