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ARTICLE · 15 JULY 2013

Eligibility For Reimbursement From The Underground Storage Tank Indemnification Fund Cannot Be Determined On A Per Tank Basis

In Young's Sales and Service v. Underground Storage Tank Indemnification Board, the Pennsylvania Supreme Court held that eligibility for indemnification from the fund cannot be determined on a per tank basis.

United StatesEnvironment

On June 17, 2013, the Pennsylvania Supreme Court in Young's Sales and Service v. Underground Storage Tank Indemnification Board,1 reversed a decision of the Commonwealth Court and held that eligibility for indemnification for clean-up costs from the Underground Storage Tank Indemnification Fund ("Fund") cannot be determined on a per tank basis.2, 3 The Court found that Section 706(2) of the Act, which states that "[t]he current fee required under Section 705 has been paid" is ambiguous requiring the Court to apply the rules of statutory construction to ascertain legislative intent. In doing so, the Court concluded that adopting the Commonwealth Court's decision, which would have allowed eligibility for indemnification to be determined on a per tank basis4 would pose, "a threat to the Fund's long-term solvency."5 This case is of particular importance to both owners and prospective purchasers of sites with multiple underground storage tanks. Unless such owners

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