Just over 24 hours after announcing that all “non-life-sustaining” business must close their physical locations, Gov. Tom Wolf delayed the enforcement of his Executive Order until 8:00 a.m., Monday, March 23. The Governor said in a press release that the Order for “non-life-sustaining businesses” to close physical locations still stands and that businesses applying for a waiver must remain closed until a decision is made about their application.  The administration’s decision to delay the enforcement of the Order was due to the high volume of inquiries and requests for waivers submitted by concerned and impacted businesses across the Commonwealth. Many of whom are either life sustaining businesses themselves or are in the supply chain for a life sustaining business.  It is expected that the Commonwealth will begin enforcing the Order, as warned
Continue Reading **Update 3/22 on Governor Wolf’s Order to Close Businesses**

**UPDATED 3/21/2020**

Governor Tom Wolf ordered all “non-life-sustaining” businesses throughout Pennsylvania to physically close their operations by 8 p.m. on March 19, 2020 in response to the COVID-19 pandemic.  Enforcement begins at 8:00 a.m., Monday, March 23.  With the Order, the Commonwealth issued a list of life-sustaining and non-life-sustaining businesses.  Residential and commercial construction were on the list of businesses that must close, absent a waiver from the Order.  The Commonwealth’s list is intended to be consistent with the federal Cybersecurity and Infrastructure Security Agency (CISA) Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response, also released March 19, 2020.  For developers and builders who may be in critical stages of construction or who have environmental responsibilities under permits (such as the PAG-02 or individual permit for discharges of stormwater associated with construction activities), an immediate shutdown simply cannot be achieved.  So what are you to do?
Continue Reading UPDATE – 3/21/2020: The Governor’s COVID-19 Order: Compliance with Environmental Permit Requirements

Overview of Force Majeure
With COVID-19 headlines dominating the news cycle, and with no end in sight to the uncertainty that the virus brings, affected businesses are wise to consider whether the current pandemic qualifies as a “force majeure.”  In the last few weeks, the Chinese government has issued “force majeure certificates” to domestic businesses as a way of shielding companies from breach of contract claims, American businesses are sending mass e-mails to customers explaining that the virus prevents the company’s performance or operations, and businesses in an array of industries have sent formal inquiries to their service providers seeking confirmation of continued performance.

What is “Force Majeure”
The defense of force majeure will excuse a party’s performance under a contract if
Continue Reading Force Majeure Provisions and the Impacts of COVID-19

Please see below regarding the Governor’s order from our Government Relations and Labor & Employment Groups.  Do not hesitate to contact anyone at McNees with questions, including how this order might apply to your job site, project approvals or your office.  McNees is a full service law firm that remains operational, remotely and in compliance with the Governor’s order.  We are ready and able to continue to support our clients’ needs during this trying time.

UPDATE: Latest on Gov. Wolf’s Closure Order amid COVID-19 Outbreak

 As detailed in a special edition of Capitol Buzz sent on Thursday evening, Gov. Tom Wolf ordered all “non-life-sustaining” businesses throughout Pennsylvania to physically close their operations in response to the COVID-19 coronavirus outbreak. The new directive, which went into effect at 8 p.m. on Thursday evening, contains the threat of enforcement action
Continue Reading Governor Wolf’s Closure Order

The Pennsylvania Turnpike Commission, in consultation with the Pennsylvania Department of Transportation (PennDOT), is currently studying the viability of building a hyperloop tube that would transverse Pennsylvania from Pittsburgh to Harrisburg to Philadelphia and then northeast toward Scranton/Wilkes-Barre.  Pennsylvania House of Representatives Resolution 1057 authorized the Commonwealth to conduct a study for a hyperloop system that would facilitate the transportation of passengers and freight at speeds approaching 700 miles per hour in pods that move through low-pressure tubes.

House Resolution 1057 found that the concept of the hyperloop, first described by Elon Musk in 2012-2013, may no longer be a hypothetical notion, given the recent work of states and firms to study and develop the necessary technologies.  In 2018, transportation agencies in Ohio and Illinois announced a study involving a hyperloop that would connect Columbus, Ohio to Chicago, Illinois.  House Resolution 1057 explains that Elon Musk desires to build a hyperloop connecting New York City to Washington, D.C. with a projected travel time of 29 minutes with planned stops in Philadelphia and Baltimore.
Continue Reading A Hyperloop in Pennsylvania: More Than Just a Futuristic Notion?

Real estate developers, construction businesses, engineers, and others involved in development projects are subject to numerous permitting and approval requirements under local, state, and federal regulatory programs.  For example, development projects in Pennsylvania involving earthmoving of more than one acre (i.e. most projects) must obtain a National Pollutant Discharge Elimination System (“NPDES”) permit for construction-related stormwater discharges, also known as PAG-02.  The current PAG-02 expires on December 7, 2019.  Recently, the Pennsylvania Department of Environmental Protection (“PADEP”) announced the availability of supporting documents, such as an updated Fact Sheet, and a comment period on the draft revised PAG-02.  The comment period is open until only September 16, 2019.

Anyone engaged in construction, real estate development, or similar operations should review the draft revised PAG-02 permit and supporting documents, and should consider submitting comments to PADEP.   PADEP anticipates the revised PAG-02 having an effective date of December 8, 2019.
Continue Reading Attention Developers! Construction Stormwater Permitting Changes Imminent

In January of this year, Governor Wolf put forth a series of Legislative Proposals meant to address critical infrastructure problems in Pennsylvania, including blight, particularly in rural Pennsylvania.  He called this series of proposals Restore Pennsylvania.  Governor Wolf simultaneously proposed paying for these initiatives through the imposition of a tax on the extraction of shale gas in the Commonwealth.  While many of the proposals to address the infrastructure problems were well received, the funding of the programs through a shale gas tax has been more controversial.  More information on the entire Restore Pennsylvania initiative can be found HERE.

Of interest to municipalities in the Commonwealth dealing with the problem of blighted properties is the section of the Governor’s proposal that deals specifically with that issue.  The Governor’s proposal acknowledged that nearly all communities within the state have some level of blight.  The cost of dealing with the problem varies, with small municipalities needing funding of perhaps $1 million dollars to address the issue, while larger municipalities, such as Altoona, having concluded that they need tens of millions of dollars to effectively combat the problem.    
Continue Reading Governor’s Wolf’s Plan for Addressing Blight in Pennsylvania

Late last spring we discussed how the 2017 Tax Cuts and Jobs Act (“TCJA”) negatively affected development by increasing the costs incurred by developers to install water and wastewater infrastructure (Part I and Part II). Effective January 1, 2018, the TCJA required that water companies include advances for construction (“Advances”) and Contributions in Aid of Construction (“CIAC”) in taxable income. Of course, water companies do not want to incur the tax directly, so it is passed on to developers thereby making their cost to install water and wastewater infrastructure even higher.

On February 28, 2019 the Pennsylvania Public Utility Commission (“PUC”) granted Pennsylvania American Water’s (“PAW”) Petition for Reconsideration of its order in Docket Nos. R-2018-3002502/R-2018-3002504. The order requires developers or builders to pay for the TCJA-imposed tax on CIAC and Advances. As a result of the PUC’s grant of reconsideration, there was a cautiously optimistic sigh of relief that the PUC might take a broader and deeper look at the positive impact of new development on the entire base of customers and spread the tax to all customers, not just the developer that installed the improvements.
Continue Reading UPDATE! Developers Beware! Water lines may cost more thanks to the Tax Cut and Jobs Act – Part 3 (Potentially good news for developers!)

When you order something online, you can immediately begin tracking the package and continue to track it until it arrives at your doorstep. Imagine if the same process was possible with all state permit applications. That is what House Bill No. 1959 (the “Bill”) intends to do. The Bill, also known as the Permit Administration Act, would implement a tracking system for state permit applications. It would create an accessible tracking system for state permit applications that would allow applicants to see the status of their applications during each step of the process. The main goal of the Bill is to make the permit application process more transparent and to provide for more timely action on state permit applications.
Continue Reading Reducing Red Tape: The Permit Administration Act