Goldman Sachs-Owned Synagro Pushes Congress for Protection from Lawsuits

Synagro, a waste recycling company owned by Goldman Sachs, is lobbying Congress to shield itself from lawsuits over per- and polyfluoroalkyl substances (PFAS) contamination stemming from its sludge-based fertilizers. The lobbying efforts are part of an industry-wide push to avoid liability for synthetic chemicals that have polluted farmland and residential areas.

In 2022, Synagro established the Coalition of Recyclers of Residual Organics by Practitioners of Sustainability to advocate for its interests in Washington, D.C. Led by Synagro CEO Bob Preston, the nonprofit group has spent $220,000 on federal lobbying, according to disclosure forms.

Synagro’s lobbyists argue that the company should not be held liable for PFAS contamination because it does not manufacture the chemicals. PFAS, known for their durability and resistance to degradation, are widely used in industrial applications but are harmful to humans, animals, and the environment.

Sludge, a byproduct of sewage treatment, is marketed as an inexpensive fertilizer. However, Synagro has faced multiple lawsuits alleging its PFAS-laden sludge has contaminated farmlands and residential areas. In one high-profile case, ranchers in Johnson County, Texas, sued Synagro after investigators found 32 types of PFAS in their soil and water, allegedly from a neighboring farm’s use of sludge fertilizer.

In May, Senators John Boozman (R-AR) and Cynthia Lummis (R-WY) introduced a bill to protect “passive receivers” of PFAS, such as water utilities, from lawsuits. The legislation has drawn support from members of Congress sympathetic to Synagro’s position.

The contamination of sewage sludge with PFAS has been documented since the 1990s. Despite this, the U.S. government has continued to promote sludge as a fertilizer, allowing its use on nearly 70 million acres of agricultural land — roughly one-fifth of America’s farmland. The Environmental Protection Agency (EPA) has stated that there is no safe level of PFAS exposure.

Critics argue that companies like Synagro are aware of the risks but continue to sell contaminated products. Laura Dumais, an attorney with Public Employees for Environmental Responsibility, likened the situation to selling tainted medicine: “It seems crazy to be able to say they’re a passive receiver and they shouldn’t be liable, that they know it’s harmful but they’re going to continue to sell it.”

Water treatment facilities have also expressed concerns about PFAS, reporting difficulties in finding landfills willing to accept sludge due to contamination fears.

The regulatory landscape is expected to shift under the incoming Trump administration. While President-elect Donald Trump has signaled a rollback of certain environmental regulations, his EPA pick, former Rep. Lee Zeldin, previously supported PFAS regulations. However, Sen. Shelley Moore Capito (R-WV), the incoming chair of the Senate Environment and Public Works Committee, has indicated plans to overturn recent PFAS rules implemented last year.

The ongoing debate highlights tensions between environmental concerns, industry practices, and regulatory priorities. As the use of sludge fertilizer continues, the push for legal protections for companies like Synagro is expected to remain a contentious issue.