By Ted Fischer and Judy Sheahan
May 7, 2007

The U.S. Supreme Court on April 30 by a 6-3 vote ruled that local municipalities can now guide garbage to their own facilities. In United Haulers v. Oneida-Herkimer, the justices upheld a “flow control” plan adopted by New York’s Oneida and Herkimer counties to reduce environmental hazards and encourage county-wide recycling. The court rejected the hauler argument that the rules unconstitutionally discriminate against interstate commerce by barring shipments to sites that charge significantly lower fees. “There is no reason to step in and hand local businesses a victory they could not obtain through the political process,” Chief Justice John Roberts wrote for the majority. “Unlike private enterprise, government is vested with the responsibility of protecting the health, safety and welfare of its citizens,” he wrote.

The ruling may encourage other local governments to adopt similar rules, potentially bolstering the viability of local waste facilities. This ruling nullifies the impact of a victory trash haulers won in 1994 (C & A Carbone, Inc. v. Clarkstown, 511 U. S. 383), when the Supreme Court barred laws funneling all trash to a designated private facility. The “Dormant Commerce Clause” limits the authority of state and local government to enact laws that affect interstate commerce.

Flow control is a recurring issue for the $47 billion waste-removal industry, which fought the Oneida and Herkimer rules through various trade organizations. The Supreme Court decision according to waste hauler representatives is likely to lead to higher disposal costs for hauling companies and higher trash costs for some businesses and residents. Waste removal companies say flow control rules now leave them subject to excessive charges, or “tipping” fees, at public facilities. Oneida-Herkimer charges $72.15 per ton of solid waste, almost three times the $26 the haulers say an out-of-state facility charged. Local municipalities defended flow control regulations as crucial components of environmentally friendly waste-disposal plans, ensuring a steady flow of waste into local facilities. The Oneida-Herkimer Solid Waste Management Authority said its flow control rules are part of a comprehensive plan set up two decades ago, replacing a system of city-by-city disposal that produced a host of environmental problems and $74 million in cleanup costs. The high court ruling “allows governments to put together comprehensive, integrated systems,” said the authority’s lawyer Michael Cahill.

The court’s ruling means governments can pay for recycling efforts by charging higher fees for non-recyclable waste, rather than through property or sales taxes which is a benefit to all city and county residents. In 1994, the Supreme Court barred a New York town from requiring that all local trash be taken to a privately owned facility that had been built at the city’s urging. One member of the 6-3 majority in that 1994 ruling, Justice Clarence Thomas, said he no longer agreed with that decision.

The U.S. Conference of Mayors and its environmental affiliate, Municipal Waste Management Association, filed an amicus briefing supporting the local government’s position.