Yes, Penn State does has water quality standards and guidelines for water discharges that follow EPA Clean Water Act standards. In addition, the university has Pennsylvania Department of Environmental Protection National Pollutant Discharge Elimination System permitting for all discharges to the environment. 

There is a university policy to not discharge any wastewater to any surface water body.

Since 1983, spray application of all University Park wastewater goes onto a Living Filter to recharge the groundwater.