Good and Bad News for Clean Water in Pennsylvania as State Budget Passes

Guidelines Around Food Processing Residuals is a Policy Win, But Requirements for Data Centers Fall Short

HARRISBURG—Pennsylvania legislators passed a state budget over the weekend that proposed stronger requirements for applying noxious food waste to farm fields and required data centers to report water and energy use.

Governor Josh Shapiro signed the Commonwealth’s $50.8 billion General Fund budget for fiscal year 2026-2027 on Sunday.

Included in the budget were proposed new guidelines for food processing waste management, as well as required environmental reporting for data centers.

There is growing controversy in Pennsylvania around applying food waste as fertilizer to farm fields. This mixture of blood, meat scraps, fat, and other food waste is commonly called Food Processing Residuals (FPRs). When not properly handled, it leads to pollution and an overpowering stench. This substance is currently not regulated and does not require certain setbacks from streams and timely applications the way that traditional fertilizer does.

The budget included guidance for regulators to establish best management practices for the storage, processing and land application of food waste on agricultural lands, a set of guidelines that was last updated in 2001.

It also requires the State Conservation Commission, in collaboration with the Department of Agriculture and Department of Environmental Protection to create regulations to reduce harm from improper storage and use of this waste, which can create increased nutrient pollution to our local waters and harmful odors.

Data centers are already affecting Pennsylvanians by using significant quantities of public water resources, increasing electricity bills, and filling communities with noise and harmful air pollution from diesel generators.

The budget included a provision that requires data centers to report their energy and water use annually. Reports are to be filed annually to the Department of Environmental Protection and made public.

There were four other bills and provisions that the Chesapeake Bay Foundation supports regarding various guardrails on data centers that have passed the House. None of these were passed in the budget, and they still await action on the Senate floor, as CBF advocates to get them passed.

CBF Pennsylvania Executive Director Julia Krall issued the following statement:

“Guidance and regulations around applying noxious food waste to farm fields is long overdue.

“This provision helps farmers know what they are applying on their lands and adds guardrails to protect the soil, water, and health of the local communities.

“Required reporting on data centers is a step in the right direction, but we must move further. Pennsylvania needs more guardrails to ensure data centers are not an environmental and community threat. Creating reasonable rules for the responsible use of water and energy must be a priority for the General Assembly.

“Tracking and limiting water use for data centers is critical to ensuring the water in our state stays clean and available to the communities that need it. Without monitoring, risks go undetected, and our leaders cannot make informed policy decisions.

“We look forward to working with the General Assembly in the future to ensure that everyone in Pennsylvania can enjoy clean water and thriving communities, and the Commonwealth of Pennsylvania stays on track to meet our commitments in the revised Chesapeake Bay Watershed Agreement.”