Amendment to Pennsylvania's Act 3

September 8, 2009
by JONATHAN SPERGEL
Client Alert Newsletter September 2009

On July 27, 2009, Governor Rendell signed into law Act 26, which amends the Economic Development Agency, Fiduciary and Lender Environmental Liability Protection Act, which is commonly referred to as Act 3. This amendment, which becomes effective on September 24, 2009, clarifies and expands the liability protections afforded to economic development agencies, their officers, and directors for environmental investigation, remediation, or infrastructure improvements in connection with the property, when such agencies take fee title to property to secure public funding. Specifically, Act 26 amends Act 3 to clearly provide that economic development agencies, their officers and directors are not liable under Pennsylvania environmental laws, including common law, for contaminants present at the property merely by taking fee title to facilitate securing public funding for the property. Act 26, which was sponsored by Senator Greenleaf and strongly supported by the Redevelopment Authority of Montgomery County, should assist in the redevelopment of brownfield sites by encouraging economic development agencies to take a more proactive role in brownfields redevelopment projects. For further information regarding Act 26 or Act 3 generally, please contact Jonathan Spergel at (484) 430-2309 or jspergel@mgkflaw.com.