A Pennsylvania Tenant's Guide to Stormwater Permits, Storage Tanks, Contamination History, and the Lease Language That Decides Who's Responsible
You found a building that works. The loading docks are right, the power is there, and the landlord wants a signature by the end of the month. Environmental questions usually get about ten minutes. The trouble is that the day you start operating, you're the operator of whatever happens on that site. If your operations need a stormwater permit, a tank registration, an air permit, or a sewer approval, that obligation is yours from day one, whether or not anyone mentioned it during the walkthrough.
Before you sign, find out whether the site already has a stormwater permit and whose name is on it, which permits you'll need for your own operations, who owns any storage tanks, whether the property has a spill or contamination history, what air and sewer approvals are tied to the building, and what the lease says about environmental compliance and indemnity. You can check a good chunk of this yourself in PA DEP's eFACTS database. This article focuses mostly on stormwater, since multi-tenant buildings trip tenants up there most often, but we also cover the other DEP programs that come with industrial space. If you'd like a second set of eyes on a building before you commit, reach out to RMA.
Table of Contents
TL;DR
Before you sign an industrial lease, ask whether the site has a stormwater permit and whose name it's in, who owns any storage tanks, what spill or contamination history the property has, what air and sewer approvals exist, and what the lease says about environmental compliance and indemnity, and look the property up in DEP's eFACTS. Stormwater coverage usually follows whoever runs the industrial activity, not the building, so you may need your own PAG-03 coverage or No Exposure Certification even if the landlord has none. Many warehouse tenants won't need a stormwater permit at all, but you want to know that before you sign.
Why Environmental Questions Belong in a Pennsylvania Industrial Lease Negotiation
The best time to sort out environmental responsibility is before the lease is signed, because that's when you have leverage. Before you sign, a missing permit or an old tank is a negotiating point. You can ask for a rent concession, a repair, a cleanup, or a clause that puts the cost where it belongs.
Buyers of industrial property almost always order a Phase I Environmental Site Assessment. Tenants usually skip it, which is riskier in a building with decades of manufacturing behind it. If you don't document conditions when you move in, you may have a hard time proving that the oil staining in the back corner came from the tenant before you. Some activities also can't start until a permit is in place, so a late surprise can push back your opening.
Who's Responsible for Environmental Permits in Leased Industrial Space?
Whoever conducts a regulated activity usually needs the permit for it, so permits tied to your forklifts, parts washer, paint booth, and storage yard typically belong in your name. The landlord usually handles what they own and control, like a building-wide boiler or a tank they installed. A lease can shift who pays for compliance, but it doesn't change who DEP holds responsible.
| Requirement |
Usually Whose Responsibility |
| Industrial stormwater (PAG-03, individual permit, or No Exposure Certification) |
The operator of the industrial activity |
| Storage tank registration |
The tank owner |
| Air plan approvals and operating permits |
The owner or operator of the emission source |
| SPCC Plan for oil storage |
The owner or operator of the facility |
| Hazardous and residual waste |
The business generating the waste |
| Sewer or industrial wastewater approval |
The business discharging, under local sewer authority rules |
| Tier II chemical inventory reporting |
The owner or operator of the facility |
Existing permits in a previous tenant's name don't automatically become yours. Pennsylvania's NPDES rules at 25 Pa. Code § 92a.71 adopt the federal permit transfer provisions and add a condition: a new permittee has to be in compliance with its existing DEP permits, or show that any noncompliance has been resolved.
Does Leased Industrial Space Need Its Own Stormwater Permit?
An NPDES permit is the Clean Water Act permit for discharges to streams and rivers, and DEP runs the program under the Clean Streams Law and 25 Pa. Code Chapter 92a. For runoff from industrial sites, most facilities get covered under the PAG-03 General Permit, a standard permit facilities file into. PAG-03 coverage requires a PPC Plan (Preparedness, Prevention and Contingency Plan), Pennsylvania's version of a stormwater pollution prevention plan, plus inspections, sampling, and reporting. The current PAG-03 took effect March 24, 2023, for a five-year term. Whether you need it depends on what you do (coverage is tied to industrial categories identified by SIC code), whether your materials and activities are exposed to rain and snow, and where the runoff goes. See our articles on who needs an NPDES stormwater permit and stormwater associated with industrial activity.
How Stormwater Coverage Works in Multi-Tenant Industrial Buildings
In multi-tenant buildings, stormwater coverage usually follows the operator of the industrial activity, not the building. The landlord of a flex park often has no coverage at all, because the landlord isn't running an industrial operation. If you're a covered manufacturer moving into unit 4, you may need your own PAG-03 coverage or No Exposure Certification even though nobody else in the building has one. A landlord's or prior tenant's coverage also won't stretch to cover your activities.
Shared drainage complicates things. Two tenants may discharge through the same inlet or outfall,. Get a site plan and the landlord's permission to inspect and sample those points, since your PPC Plan has to describe them. In older cities with combined sewers, like Philadelphia and Pittsburgh, runoff may go to a treatment plant, and the sewer authority's rules may apply instead of, or alongside, a DEP permit. Local rules and fees vary, so confirm your site with the sewer authority. If you do need coverage, build the approval time into your move-in plan. Our article on how long it takes to get PAG-03 coverage lays out a realistic timeline.
When a Tenant Probably Doesn't Need a Stormwater Permit
Plenty of tenants don't need industrial stormwater coverage. General warehousing is often outside the covered categories, and body shops, dealerships, quick-lubes, and most contractors usually aren't covered either. Trucking and bus operations are covered only for their vehicle maintenance, equipment cleaning, and fueling-related areas,. Steel service centers are often classified as wholesale and fall outside coverage. On the other hand, a covered manufacturer that keeps everything indoors usually still files a No Exposure Certification rather than nothing at all. That certification must be renewed every five years and isn't available for discharges to High Quality or Exceptional Value waters.
How to Check a Property in PA DEP's eFACTS Before You Sign a Lease
eFACTS is DEP's public database of permits, inspections, violations, and enforcement. Start with name searches for the landlord's company, the building or park name, and any previous tenants you know of. eFACTS organizes records around clients (companies), sites (locations), and facilities (regulated things at a location),. If that fails, search sites by county and municipality and scan for the address.
Once you find a site record, look through the authorizations, inspections, and any violations or enforcement. Look for NPDES or PAG-03 authorizations and whose name they're in, storage tank records and tank status, air permits, waste program activity, Land Recycling (Act 2) cleanup records, and recent violations that haven't been resolved. DEP's Environmental Site Assessment Search Tool adds a map view of records for a property and its neighbors. eFACTS only holds DEP records, so it won't show sewer authority or township issues. A clean search is a good sign, not a guarantee.
Storage Tanks, Spills, and Contamination History at a Leased Industrial Site
Storage tanks are a common surprise in older industrial buildings. Under the Storage Tank and Spill Prevention Act, Pennsylvania regulates aboveground tanks over 250 gallons and underground tanks over 110 gallons that hold regulated substances, with some exemptions. The tank owner has to register each regulated tank with DEP, pay an annual fee, and keep the registration current, and using an unregistered regulated tank is illegal. Ask the landlord for a list of every tank, who owns it, whether it's registered, and whether any were closed or removed. If you'll bring your own oil, the federal SPCC rule generally applies to facilities with more than 1,320 gallons of aboveground oil storage capacity (counting containers of 55 gallons or more) where a spill could reach a waterway. Our article on SPCC Plans versus stormwater plans explains how the two fit together.
For contamination history, ask whether the landlord has a Phase I or Phase II report, any Act 2 cleanup records, or environmental covenants on the deed. Covenants can restrict how a property is used, such as banning groundwater wells or requiring a cap to stay in place. If the building has a long industrial history and no recent reports, consider ordering your own Phase I Environmental Site Assessment. A Phase I doesn't check whether current operations are in compliance, so if that's your concern, see our comparison of an environmental audit versus a Phase I. Either way, photos and a written record of conditions at move-in give you a baseline for when the lease ends.
Air Permits, Sewer Discharges, and Other DEP Programs That Come With an Industrial Lease
Stormwater is only one piece of what DEP regulates. On air, many emission sources need a plan approval before they're installed and then an operating permit under 25 Pa. Code Chapter 127, though plenty of small sources qualify for exemptions. Philadelphia and Allegheny County run their own air programs. Air permits are tied to specific equipment and operators, so the landlord's boiler permit won't cover your spray booth or dust collector.
Sending process wastewater to the sanitary sewer usually needs approval from the local sewer authority, and many have pretreatment rules or industrial discharge permits. Ask whether the connection can take your wastewater, and find out where every floor drain goes, since a floor drain to a storm sewer or dry well is a problem for whoever uses it. Our guide on stormwater versus process water helps sort out which is which. Hazardous waste generator ID numbers are tied to the site, so a new operator typically files its own notification, and Pennsylvania also regulates residual waste from industrial operations. Chemical storage above federal thresholds can bring annual Tier II reporting, and some manufacturers have TRI reporting too.
If your plans include paving, an addition, or other earth disturbance, Chapter 102 erosion and sediment control rules may apply, and disturbing one acre or more generally triggers construction stormwater coverage such as PAG-02. RMA doesn't prepare construction-phase permits or approvals, and most tenants handle that piece with their engineer, contractor, or an erosion control specialist. Where we help is the operational side once you're running, like PAG-03 coverage or a No Exposure Certification, a PPC Plan, inspections and sampling, and often SPCC or Tier II. We can also help you figure out what the construction phase needs and point you to the right people.
What Your Industrial Lease Should Say About Environmental Compliance and Indemnity
Most commercial leases include a clause saying the tenant will "comply with all environmental laws." The lease should say you aren't responsible for contamination or violations that existed before you took possession, ideally tied to a baseline report. Each side should indemnify the other for environmental problems it causes, so watch for one-sided language that makes you responsible for anything found during your term. If a permit application needs site owner information or a signature, the lease should require the landlord to cooperate.
Spell out who maintains inlets, oil-water separators, and other stormwater controls, and give yourself access to inspect and sample the outfalls your permit relies on. Define what "clean" means at surrender so you aren't asked to clean up conditions you didn't create, and check the insurance terms, since general liability policies often exclude pollution. We're not attorneys, and lease language is legal work. An environmental or real estate attorney should review these provisions before you sign, especially if the site has known contamination, open violations, or a consent order.
Environmental Questions to Ask Your Landlord Before Signing an Industrial Lease
Here's a checklist you can send to the landlord or broker before the lease is final. Ask for answers in writing, along with copies of any documents they mention.
| Question for the Landlord |
Why You're Asking |
| Is there a stormwater permit or No Exposure Certification, and whose name is it in? |
Coverage follows the operator, so it may not apply to you. |
| Where does runoff from my unit drain, and do I share outfalls? |
Shared drainage affects sampling and your PPC Plan. |
| What did previous tenants do here? |
Past uses predict contamination and leftover permit issues. |
| Are there storage tanks, who owns them, and are they registered? |
Unregistered or abandoned tanks become someone's problem. |
| Any spills, cleanups, environmental covenants, or Phase I reports? |
This sets your move-in baseline and flags use restrictions. |
| Are any air permits tied to the building? |
They rarely cover a tenant's own equipment. |
| Can the sewer take process wastewater, and where do floor drains go? |
You may need sewer authority approval. |
| Any DEP inspections, violations, or orders at the site? |
Open issues can complicate permit transfers. |
| Who maintains stormwater controls, and will you support my permit applications? |
Your compliance may depend on things the landlord controls. |
Vague answers aren't necessarily a deal breaker, since plenty of landlords don't know their building's history. But "I don't know" is a reason to do more of your own homework, not less.
What a Pre-Lease Environmental Review and Stormwater Permitting Cost
An eFACTS search and a good conversation with the landlord cost nothing. A formal review costs more, but it's small next to inheriting a cleanup or delaying your opening.
| Item |
Typical Cost |
| Phase I Environmental Site Assessment |
About $4,000 to $6,500 |
| Environmental compliance audit |
About $3,000 to $7,500 |
| PAG-03 DEP fees |
$500 application fee and $500 annual fee |
| Help with a straightforward PAG-03 application and PPC Plan |
About $5,000 to $10,000 |
| Ongoing PAG-03 compliance support |
About $3,000 to $6,000 per year |
Those PAG-03 figures assume a simple site, and multiple outfalls or shared drainage push them up. Our article on PAG-03 permit costs in Pennsylvania breaks this down further. For a number specific to your new space, our free calculator below estimates what RMA's help with stormwater permitting would cost, with no email or sales call required.
How RMA Helps Tenants Leasing Industrial Space in Pennsylvania
We're a family-run environmental consulting firm based in New Jersey, and we work with facilities across Pennsylvania. When you're weighing a lease, we can review the property's DEP records, help you figure out whether your operations need PAG-03 coverage, a No Exposure Certification, or nothing at all, and flag tank, air, sewer, and waste questions for the landlord. After you sign, we can prepare your stormwater application and PPC Plan, set up inspections and sampling, and help with SPCC, Tier II, and the other operational requirements. Senior staff do the work, and if you don't need us, we'll tell you.
There's no pressure and no obligation. Call us, send an email, or fill out the form on our website. If you're about to sign and want a quick read on what you're walking into, get in touch with RMA.
