Proposed Amendment to Act 3 Would Clarify Environmental Liability Protection for Economic Development Agencies

May 16, 2008
Client Alert Newsletter May 2008

Pennsylvania Senate Bill 1427 was recently introduced by State Senator Stuart Greenleaf to amend the Economic Development Agency, Fiduciary and Lender Environmental Liability Protection Act, commonly referred to as Act 3. Act 3, which was enacted in 1995, provides broad environmental liability protection for lenders, fiduciaries, and economic development agencies that provide financing on property in the Commonwealth of Pennsylvania. However, certain economic development agencies have been concerned as to whether the current language of Act 3 is broad enough to protect such agencies against environmental liabilities if the agency were to take title to property solely to act as a conduit to secure public funding for environmental investigation, remediation, or redevelopment of the property, with the objective of transferring the property to a third party after expenditure of any public funding received. The Redevelopment Authority of Montgomery County, on which MGKF partner Jonathan Spergel serves as a board member, has played a significant role in assisting Senator Greenleaf with the development of the language contained in S.B. 1427. Please contact Jonathan Spergel ( if you would like a copy of S.B. 1427.