# Appendix — National Solid Waste Management Ass'n v. Pine Belt Regional Solid Waste Management Authority

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386007_0718%3A2

## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 2005
- **Citation:** 546 U.S. 812

## Text

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APPENDIX A

UNITED STATES COURT OF APPEALS,
FIFTH CIRCUIT.

NATIONAL SOLID WASTE MANAGEMENT
ASSOCIATION; ET AL., PLAINTIFFS,

NATIONAL SOLID WASTE MANAGEMENT ASSOCIA-
TION; BF WASTE SYSTEMS, BFI WASTE SYSTEMS
OF MISSISSIPPI LLC; WASTE MANAGEMENT OF
MISSISSIPPI INC., PLAINTIFFS-APPELLEES,

Vv.

PINE BELT REGIONAL SOLID WASTE
MANAGEMENT AUTHORITY AND ITS BOARD OF
COMMISSIONERS; COVINGTON COUNTY; JONES

COUNTY; PERRY COUNTY; CITY OF PETAL; CITY OF
LAUREL; CITY OF HATTIESBURG, MISSISSIPPI;
DEFENDANTS-APPELLANTS,

MIKE MOORE, INTERVENOR-DEFENDANT-
APPELLANT.

NO. 03-60470.
OCT. 29, 2004.

Before GARWOOD, WIENER and DeMOSS, Circuit
Judges.

GARWOOD, Circuit Judge:

The Mississippi cities and counties that belong to the
Pine Belt Regional Solid Waste Management Authority (the
Authority) enacted solid waste flow control ordinances re-
quiring that all solid waste collected within those cities and
counties be disposed of at facilities owned by the Authority.
Plaintiffs-appellees, National Solid Wastes Management As-
sociation (NSWMA), BFI Waste Systems of Mississippi,
LLC (BFI), and Waste Management of Mississippi, Inc.
(Waste Management) (collectively, plaintiffs), filed this suit

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against defendants-appellants, the Authority and its member
cities and counties, claiming that the flow control ordinances
violated the dormant Commerce Clause. Defendants-
appellants now timely appeal the judgment, rendered after a
bench trial, declaring the flow control ordinance invalid un-
der the dormant Commerce Clause and enjoining their en-
forcement. We dismiss plaintiffs’ complaint in part for want
of standing and with respect to the remainder we reverse and
render judgment for defendants-appellants.

Facts and Proceedings Below

In 1989 and 1990, several cities and counties in South
Mississippi developed a master plan for the management of
the solid waste in the region. The goal of the plan was to de-
velop an environmentally-sensitive and cost-effective pro-
gram for the disposal of the region’s solid waste. Among
other things, the master plan recommended the creation of a
regional solid waste management authority and the construc-
tion of a regional landfill. In 1992, the Authority was formed
and the plan was adopted. At that time, the Authority was
made up of five counties (Covington, Jones, Perry, Forrest,
and Lamar) and three cities (Petal, Laurel, and Hattiesburg)
in Mississippi (collectively, the Members). By the time this
suit was filed, Forrest and Lamar Counties had withdrawn
from the Authority.

In 1992, the Authority issued a request for proposals
(RFP) to interested parties, including plaintiffs BFI and
Waste Management, regarding the regional landfill. Propos-
als were to be given for two options: 1) to own, design, per-
mit, build, and operate the landfill for thirty years or 2) to
equip and operate the landfill for seven years, with the Au-
thority building and owning the landfill. The RFP included
an estimated volume of disposable solid waste that would be

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generated in the geographic area comprised by the Members!
and a statement that “[u]pon request, the Authority will re-
quire each [Member] ... to adopt and enforce a flow control
ordinance in order to assure that the entirety of the ... waste
stream generated within the [geographic area comprised by
the Members] will be managed and disposed of at the [Au-
thority’s landfill].” Five proposals were received, including
from BFI and Waste Management. Enviro, a company head-
quartered in Laurel, Mississippi, submitted the lowest bid for
Option 2, but did not submit a bid for Option 1. The Author-
ity analyzed the bids, decided to own the landfill, and began
implementation discussions with Enviro prior to actual con-
tract negotiations.

In 1996, the Authority issued revenue bonds to finance
the construction of the landfill and three transfer stations.
Also in 1996, Enviro signed a contract with the Authority to

1

The 1992 RFP estimated the annual volume of disposable waste
in the Region to be 153,000 tons. That estimate, however, was
derived before Forrest and Lamar Counties withdrew from the Au-
thority. After these two counties withdrew (which was prior to
July 2002), the projected volume of waste for the Authority’s Re-
gion would have been about 129,000-130,000 tons per year.

When creating the master plan and issuing the RFP, the Author-
ity contemplated, at least implicitly, that all solid waste generated
within the Region would be disposed of at the landfill that was the
subject of the RFP. The Authority’s landfill is, and always has
been, the only “Subtitle D” landfill within the Region. A Subtitle
D landfill is one that is compliant with federal regulations, issued
pursuant to Subtitle D of the Resource Conservation and Recovery
Act of 1976 (RCRA), 42 U.S.C. § 6941, et. Seq., setting the criteria
for sanitary landfills.

* Waste collecting trucks often unload waste locally at a transfer
station until the waste is transported to a landfill for final disposal.

|

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operate the Authority’s landfill,’ located in Perry County and
completed in 1997, and transfer stations. The initial term of
the contract was for the life of the first landfill cell or seven
years, whichever was less, and was to be automatically ex-
tended for one-year terms so long as both parties mutually
agreed. In 2000, the Authority refinanced the 1996 bonds
and issued additional bonds to finance the construction of a
second cell at the landfill.

The Authority generates revenue by collecting fees for
the disposal of waste at its landfill and transfer stations.
Thus the Authority’s generation of revenue is based on the
amount of garbage that it receives at its facilities. To the ex-
tent that the Authority is unable to generate sufficient income
to meet its debt payments, the Members are obligated to
make up the shortfall.

From the time the landfill opened, the volume of refuse
that passed through and to the Authority’s facilities was sig-
nificantly less than the total amount of potential waste gener-
ated in the area comprised by its Members. Although the
Authority’s issuance of bonds was based on a projected vol-
ume of 140,000 tons per year, in fiscal year 1998 the land-
fill’s volume had reached only 105,305 tons and in fiscal
year 1999, the volume dropped to 96,032 tons. In 1999, in
an attempt to increase its trash collection, and therefore its
revenue generation, the Authority extended the service area
of the landfill to include a total of 22 counties, which allowed
the Authority to receive waste at its landfill from the addi-
tional counties which were not Members.* While the volume

> Enviro provides the labor, management, supplies, equipment,

and insurance for the landfill and operates the scales and performs
all maintenance at the landfill.

* According to its contract with the Authority, Enviro was ot’>-

gated to bring to the Authority’s landfill all the waste it collecte.”
within a 75-mile radius of the landfill. The area comprised by the
22 counties roughly corresponds to this 75-mile radius. The flow

Sa

of trash deposited at the landfill increased with the expanded
service area, it reached a high of only 129,017 tons in fiscal
year 2000, with the tonnage decreasing thereafter (to 108,625
in 2001 and to 95,205 in 2002).

Due to an insufficient flow of rubbish through and to its
facilities, the Authority realized that, at the current volume of
waste, it would not be able to make its July 1, 2004 bond
payment. Believing that its facilities needed more garbage to
remain viable, the Authority adopted a resolution on July 10,
2002, directing its Members to adopt flow control ordinances
requiring that all municipal solid waste generated within the
then Member counties (Covington, Jones and Perry) and cit-
ies (Petral [sic], Laurel and Hattiesburg) respectively [collec-
tively, the Pegion] be transported to its landfill or one of its
transfer stations.” Each Member enacted identical ordi-
nances, each applicable only within the geographic area of
the particular enacting Member, with September 1, 2002, as
the effective date.° Each ordinance provided that noncompli-
ance therewith would constitute a misdemeanor.

Following the enactment of the ordinances, plaintiffs on
August 29, 2002 filed this suit against the Authority and its

control ordinances, however, apply only to the three counties and
three cities that are Members of the Authority. When the Author-
ity first created its plan for the landfill, the service area included
only the five original member counties (Covington, Jones, Perry,
Forrest, and Lamar); the expanded service area added an additional
17 counties.

. According to testimony at trial, the amount of trash currently

leaving the Region is between 50,000 to 70,0000 tons per year; if
this trash were directed to the Authority’s landfill, the tonnage dis-
posed of at the landfill would likely be over 140,000, roughly the
amount needed to meet the Authority’s debt obligations.

© The flow control ordinances were subsequently reenacted in

September, October, and November of 2002.

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Members, seeking declaratory, injunctive, and monetary re-
lief under 42 U.S.C. § 1983.’ Plaintiffs BFI and Waste Man-
agement collect, process, and dispose of commercial and
residential solid waste and currently ship the trash they col-
lect within the Region to landfills and transfer stations that
they either own and operate or that are owned and operated
by affiliated companies. At the time of the suit, solid waste
collected by BFI and Waste Management within the Region
was and had been eventually transported to landfills outside
of the Region, but within Mississippi; none of such waste
was (or had been) transported outside of Mississippi (nor did
any of it originate as waste outside of Mississippi).® The
flow control ordinances would require that BFI and Waste
Management dispose of waste they collect within the Region
only at the Authority’s landfill in Perry County.

After the filing of the complaint, the parties agreed that
the enforcement of the ordinances would await the outcome
of the case. In October 2002, the Mississippi State Attorney
General intervened on behalf of Mississippi to defend a po-
tential constitutional challenge to the Mississippi statute pur-
suant to which the Authority was authorized to direct its
Members to enact the flow control ordinances. See
Miss.Code. Ann. § 17-17-319(2).

7 Pine Belt Waste Systems, LLC, also joined with plaintiffs in

bringing this suit. Pine Belt Waste, however, was voluntarily dis-
missed as a plaintiff on November 25, 2002, prior to trial.

® Although the Authority’s landfill is the only Subtitle D landfill
within the Region, see supra note 1, the landfills to which BFI and
Waste Management currently haul garbage generated within the
Region are Subtitle D landfills. BFI currently hauls waste col-
lected within the Region to its landfill in Madison County, Missis-
sippi, and Waste Management hauls its waste to a landfill owned
and operated by an affiliated company in Scott County, Missis-

sippl.

Ta

Tial was held in December 2002 before the district judge
withat a jury. After the trial, but before a decision was ren-
derec Perry County filed a motion to dismiss for lack of ju-
risdition based on the “adequate state grounds” doctrine.
Alsofollowing the trial, the district judge recused himself on
his wn motion, and the matter was subsequently properly
assiged, with consent of the parties, to a magistrate judge
for decision. On April 23, 2003, the magistrate judge denied
the notion to dismiss and issued findings of fact and conclu-
sionsof law and an accompanying judgment, deciding that
the »rdinances were unconstitutional under the dormant
Commerce Clause and enjoining their enforcement.’ Defen-
dant on May 22, 2003, timely filed their notice of appeal.

Discussion

Jefendants contend that the flow control ordinances do
not iolate the dormant Commerce Clause.!° We dismiss the

* }) damages were awarded. While the judgment purports to

geneally award “attorneys fees,” no amount thereof is stated in the
judgnent (or in the findings and conclusions) and we are informed
by te parties that plaintiffs have in substance waived attorneys
feesunder this judgment by failing to file any evidence of the
amont of attorneys fees or any motion in connection therewith as
contmplated in Fed.R.Civ.P. 54(d)(92) and the local rules.

'0 [efendants also contend that the district court lacked jurisdic-
tion ecause plaintiffs did not appeal the Member counties’ and
citie’ adoption of the ordinances to a state circuit court as author-
izeddy Miss.Code Ann. 11-51-75. See Benedict v. City of Hat-
tiesurg, 693 So.2d 377, 380 (Miss.1997); Falco Lime Inc. v.
Mayr & Aldermen of City of Vicksburg, 836 So.2d 711, 716
(Mis.2002). We reject that contention. The instant suit is one un-
der 2 U.S.C. § 1983 seeking declaratory and injunctive relief
agaist local government ordinances adopted under color of state
law »n the ground that the ordinances are invalid under and con-
traryto the United States Constitution. See Dennis v. Higgins, 498
U.S.439, 111 S.Ct. 865, 112 L.Ed.2d 969 (1991); National Pri-
vateTruck Council v. Oklahoma Tax Comm’n, 515 U.S. 582, 115

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dormant Commerce Clause claim in part for lack of standing
and reverse with respect to the remainder of the claim.

A. Standard of Review

Review of questions of constitutional law is de novo.
United States v. Hemmingson, 157 F.3d 347, 355 (Sth
Cir.1998). The magistrate judge’s findings of fact, however,
are reviewed for clear error. City of New Orleans v. Mun.
Admin. Servs., Inc., 376 F.3d 501, 506 (Sth Cir.2004).

B. Dormant Commerce Clause Analysis

Although the Commerce Clause is an affirmative grant of
power to Congress, U.S. CONST. art I, § 8, cl. 3, the Su-
preme Court has interpreted the clause to contain a negative
aspect, the so-called “dormant” Commerce Clause.
Dickerson v. Bailey, 336 F.3d 388, 395 (Sth Cir.2003). The
dormant Commerce Clause “prohibits economic protection-
ism--that is, regulatory measures designed to benefit in-state
economic interests by burdening out-of-state competitors.’”
Id. (quoting Wyoming v. Oklahoma, 502 U.S. 437, 112 S.Ct.
789, 800, 117 L.Ed.2d 1 (1992)).

We begin our dormant Commerce Clause analysis by
asking whether the ordinances “(1) facially discriminate
against out-of-state economic interests, or (2) regulate even-
handedly and thereby evince only an indirect burden on in-
terstate commerce.” Dickerson, 336 F.3d at 396. In other
words, we ask whether the ordinances “reflect[] a discrimina-
tory purpose or merely a discriminatory effect.” Jd. “Al-
though ... there is no clear line of separation between these

S.Ct. 2351, 2353-54, 132 L.Ed.2d 509 (1995). “When federal
claims are premised on 42 U.S.C. § 1983 ... we have not required
exhaustion of state judicial or administrative remedies.” Steffel v.
Thompson, 415 U.S. 452, 94 S.Ct. 1209, 1222, 39 L.Ed.2d 505
(1974). See also Self-Ins. Inst. of America, Inc. v. Korioth, 993
F.2d 479, 482 (Sth Cir.1993).

9a

two” classifications, “the threshold determination is signifi-
cant if only because it establishes the constitutional standard
of review.” Jd. (internal quotations and citations omitted).

Regarding the first category, “[s]tate laws discriminating
against interstate commerce on their face are virtually per se
invalid.” Jd. (internal quotations and citations omitted). The
ordinance will be unconstitutional unless the state actor “can
demonstrate, under rigorous scrutiny, that it has no other
means to advance a legitimate local interest.” Jd. (internal
quotations and citations omitted). “At a minimum such fa-
cial discrimination invokes the strictest scrutiny of any pur-
ported legitimate local purpose and of the absence of
nondiscriminatory alternatives.” Hughes v. Oklahoma, 441
U.S. 322, 99 S.Ct. 1727, 1737, 60 L.Ed.2d 250 (1979). “Un-
der this strict scrutiny, ... the state bears the heavy burden to
rescue its statutes.” Dickerson, 336 F.3d at 396 (internal
quotations and citations omitted). “This burden is stringent”
and the statute at issue is “generally struck down ... without
further inquiry.” Jd. (internal quotations and citations omit-
ted).

With the second category-the “evenhanded statutes” that
effectuate a legitimate local interest and that only incidentally
affect interstate commerce—we apply the “Pike balancing
test.” The statute will be upheld unless the burden it imposes
on interstate commerce is “clearly excessive in relation to
the putative local benefits.’”” Jd. (quoting Pike v. Bruce
Church, Inc., 397 U.S. 137, 90 S.Ct. 844, 847, 25 L.Ed.2d
174 (1970)).

The magistrate judge struck down the flow control ordi-
nances, finding them to be to be facially discriminatory
against interstate commerce. The magistrate judge also de-
termined that the ordinances would not pass the Pike test,
assuming arguendo, as defendants argued, that the ordi-
nances were not facially discriminatory.

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C. Plaintiffs’ Standing

Before we consider the merits, we must first determine
whether plaintiffs BFI and Waste Management have standing
to challenge the flow control ordinances.'' Although defen-
dants have not explicitly raised the issue of standing, we may
consider it sua sponte. Bauer v. Texas, 341 F.3d 352, 357
(Sth Cir. 2003). Our standing analysis consists of constitu-
tional and prudential components.

I. Constitutional Standing

“To meet the constitutional standing requirement, a plain-
tiff must show (1) an injury in fact (2) that is fairly traceable
to the actions of the defendant and (3) that likely will be re-
dressed by a favorable decision.” Procter & Gamble Co. v.
Amway Corp., 242 F.3d 539, 560 (Sth Cir.2001) (citing
Bennett v. Spear, 520 U.S. 154, 117 S.Ct. 1154, 1161, 137
L.Ed.2d 281 (1997); Lujan v. Defenders of Wildlife, 504 U.S.
555, 112 S.Ct. 2130, 2136, 119 L.Ed.2d 351 (1992)).

Plaintiffs meet the constitutional, or Article III, standing
requirements. Because of the flow control ordinances, plain-
tiffs will not be able to ship the garbage they collect within
the Region to the landfills of their choice and, as a result, will
be forced to pay a “tipping”’” fee at the Authority’s landfill.

'' As a not-for-profit trade association that represents the interests
of the private waste services industry and of which BFI and Waste
Management are members, plaintiff NSWMA’s standing is on this
record entirely dependent upon whether BFI and Waste Manage-
ment having standing. See Public Citizen, Inc. v. Bomer, 274 F.3d
212, 219 n. 5 (Sth Cir.2001) (stating that “organizational standing
requires, ... that individuals have standing to sue in their own
right”). NSWMaA took absolutely no active role in this litigation
and has not submitted anything to establish its standing independ-
ent of that of BFI and Waste Management.

'2 In garbage parlance, “tipping” is used in place of the less-
refined “dumping.”

lla

Testimony at trial indicates that plaintiffs’ cost to dispose of
waste at the Authority’s landfill, including the tipping fee and
the transportation cost, would be higher than their current
cost.'> Thus, plaintiffs have an injury (higher operating
costs) that is traceable to the ordinances enacted by defen-
dants and which would be remedied if we rule that the ordi-
nances are unconstitutional.

2. Prudential Standing

The more difficult question is whether plaintiffs meet the
prudential standing requirements. The goal of the prudential
standing requirements is to “determine whether the plaintiff
‘is a proper party to invoke judicial resolution of the dispute
and the exercise of the court’s remedial powers.’” Procter
& Gamble, 242 F.3d at 560 (quoting Bender v. Williamsport
Area Sch. Dist., 475 U.S. 534, 106 S.Ct. 1326, 1334 n. 8, 89
L.Ed.2d 501 (1986)).

“These judicially created limits concern whether a
plaintiff's grievance arguably falls within the zone
of interests protected by the statutory provision in-
voked in the suit, whether the complaint raises ab-
stract questions or a generalized grievance more

'? In addition to a simple comparison of current costs against the
costs under the flow control ordinances, other testimony supports
plaintiffs’ claim of higher costs. The ordinances preclude plain-
tiffs from operating an “internalized” business--meaning that they
collect, transport, and dispose of the waste using their own facili-
ties. Testimony at trial suggests that such a method of operation
achieves the best economy of scale for a waste collector. Further,
BFI and Waste Management would face a reduced volume of
waste at the transfer stations to which they currently haul waste
from the Region, because they most likely cannot economically
segregate at the transfer station the waste that comes from within
the Region from that which comes from outside the Region. The
result of the reduced volume at the transfer stations would be an
increased operating cost per ton.

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properly addressed by the legislative branch, and
whether the plaintiff is asserting his or her own legal
rights and interests rather than the legal nghts and
interests of third, parties.” Procter & Gamble, 242
F.3d at 560.

The key inquiry for prudential standing in this case is
whether the injury of which plaintiffs complain is “arguably
within the zone of interests to be protected” by the dormant
Commerce Clause, the “constitutional guarantee in question”
here. Ass’n of Data Processing Serv. Orgs., Inc. v. Camp,
397 U.S. 150, 90 S.Ct. 827, 830, 25 L.Ed.2d 184 (1970). See
also Boston Stock Exch. v. State Tax Comm’n, 429 U.S. 318,
97 S.Ct. 599, 603 n. 3, 50 L.Ed.2d 514 (1977) (applying the
zone of interests test in the context of the dormant Commerce
Clause). The facts of this case require that we analyze the
zone of interest question in two parts: We must determine
whether plaintiffs have standing to challenge the flow control
ordinances as being facially discriminatory against out-of-
state economic interests or whether they can merely chal-
lenge the ordinances as being excessively burdensome to in-
terstate commerce.

a. Facially Discriminatory

The two-staged analysis for dormant Commerce Clause
claims is instructive as to the relevant zone of interests to be
protected. First, with respect to laws that facially discrimi-
nate against out-of-state economic interests, the dormant
Commerce Clauses [sic] seeks to protect against local eco-
nomic protectionism and retaliation among the states. C & A
Carbone, Inc. v. Town of Clarkstown, N.Y., 511 U.S. 383,
114 S.Ct. 1677, 1682, 128 L.Ed.2d 399 (1994) (“The central
rationale for the rule against discrimination is to prohibit
state or municipal laws whose object is local economic pro-
tectionism, laws that would excite those jealousies and re-
taliatory measures the Constitution was designed to
prevent.”). In this context, discrimination “simply means

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differential treatment of in-state and out-of-state economic
interests that benefits the former and burdens the latter.”
Oregon Waste Sys., Inc. v. Dep’t of Envtl. Quality of the State
of Or., 511 U.S. 93, 114 S.Ct. 1345, 1350, 128 L.Ed.2d 13
(1994).

We conclude that plaintiffs’ injury does not fall within
the zone of interests to be protected by the dormant Com-
merce Clause with respect to ordinances that are alleged to
facially discriminate against out-of-state economic interests.
The flow control ordinances mandate that any waste gener-
ated within the Region be transported to the Authority’s land-
fill or transfer stations. In effect, the ordinances prohibit the
export of any waste outside of the Region, including out of
state. However, these plaintiffs do not ship (and, so far as the
record shows, have never shipped) any waste they collect
within the Region to any location outside of Mississippi, nor
do they ship (and, so far as the record shows, have never
shipped) any waste from outside of Mississippi to the Re-
gion. Plaintiffs also have not even alleged that they have any
plans to do so,'* and have not suggested that some other
party currently ships waste from the Region outside of Mis-
sissippi. or has plans to do so, or that any out-of-state waste
processor receives (or has plans to receive) any of the Re-
gion’s waste out of state. In sum, plaintiffs’ injury is not re-

'4 Stone County, a Mississippi county that is now within the Au-
thority’s expanded service area, see supra note 4, has voted to join
the Authority, and the Authority has agreed in principle; however,
the required ultimate contract between the two had not been final-
ized by the time of the trial. Waste collected in Stone County by
BFI is currently shipped to a landfill in Alabama. As Stone
County has not enacted any flow control ordinance and is not a
party to this suit (and as none of the here challenged ordinances is.
applicable to waste collected in Stone County), we will not con-
sider the fact that waste from Stone County is actually shipped out
of state.

l4a
lated to any out-of-state characteristic of their business.'*
Thus, plaintiffs do not have standing to challenge the ordi-
nances on the basis of a claim that they are facially discrimi-
natory against out-of-state interests.'© As such, we express

'S We also observe that both BFI and Waste Management have
their principal place of business in Mississippi. Nothing in the
flow control ordinances turns on the principal place of business or
the place of incorporation or the citizenship of any generator, dis-
poser or handler of waste (or otherwise).

'© We note that our conclusion that plaintiffs do not meet the pru-
dential standing requirement differs from that in two opinions from
our sister circuits. See On the Green Apartments LLC v. City of
Tacoma, 241 F.3d 1235 (9th Cir.2001); Houlton Citizens’ Coali-
tion v. Town of Houlton, 175 F.3d 178 (ist Cir.1999). In On the
Green and Houlton, the plaintiffs did not allege that they disposed
of their waste out of state or that they had plans to do so. On the
Green, 241 F.3d at 1241-40; Houlton, 175 F.3d at 183. Neverthe-
less, both the Ninth Circuit and the First Circuit concluded that the
plaintiffs met the prudential standing requirements.

We disagree with the analysis in this aspect of On the Green
and Houlton. In On the Green, the Ninth Circuit concluded that
because the plaintiff alleged only an intrastate burden, the “Com-
merce Clause [was] not at all implicated.” On the Green, 241 F.3d
at 1242. We fail to see how the plaintiff's alleged injury could
even arguably fall within the zone of interests to be protected by
the dormant Commerce Clause when the court concluded that the
case did not even implicate the Commerce Clause. See id. at 1242
(Reavley, J., dissenting). Further, the Ninth Circuit seems to have
confused the redressability requirement for constitutional standing
with the zone of interests test. The Ninth Circuit concluded that
the plaintiff's injury was “related to the purposes underlying the
Commerce Clause” because the “injury would be remedied if [the
plaintiff] could take its garbage outside the city.” Jd. at 1241 (em-
phasis added). The fact that an injury would be remedied if the
ordinance was struck down does not mean that the grievance falls
within the zone of interests to be protected by the dormant Com-
merce Clause, particularly when there was no allegation of any

——— Ee ae Oe ae Y a 1

ea ae

1Sa

no opinion about whether the ordinances would pass the fa-
cially discriminatory test if challenged by a proper plaintiff.

b. Burdens Interstate Commerce

We next consider whether plaintiffs nonetheless have
standing to challenge the flow control ordinances on the basis
of the claim that they excessively burden interstate com-
merce. We conclude that plaintiffs do meet the zone of inter-
ests test in this regard and thus have standing to challenge the
ordinances as to their burden on interstate commerce.

The protected against injury is an excessive burden on in-
terstate commerce. An allegation that the plaintiff is in-
volved in interstate commerce and that the plaintiff's
interstate commerce is burdened by the ordinance in question
is sufficient to satisfy the zone of interests test with respect to
ordinances that assertedly impose an excessive burden on
interstate commerce.

Even though plaintiffs do not ship any garbage collected
in the Region out of state, they are engaged in interstate com-
merce, and their interstate commerce is allegedly burdened
by the ordinances. A representative of BFI testified at trial
that BFI had some contracts that are negotiated on a national

interstate burden. Under the Ninth Circuit’s rationale in On the
Green, the zone of interest test and the redressability requirement
would essentially be the same.

In Houlton, the First Circuit concluded that the plaintiff met the
zone of interests requirement because the plaintiff had “assert[ed]
his own economic interests under the Commerce Clause — a consti-
tutional provision specifically targeted to pro[t]ect those interests.”
Houlton, 175 F.3d at 183. However, the rationale behind the dor-
mant Commerce Clause is to protect against local economic pro-
tectionism at the expense of out-of-state interests, Carbone, 114
S.Ct. at 1682, not to protect any economic interests. In our opin-
ion, the Houlton court simply viewed too broadly the zone of in-
terests protected by the dormant Commerce Clause.

l6a

or an interstate basis and that such contracts were common.
The BFI representative testified that an effect on the Missis-
sippi portion of such a contract would ripple to the portion of
the contract in other states.'’ Plaintiffs argue that, because
the flow control ordinances will raise their costs to service
these national and regional contracts which include customer
locations within the Region, they will be relatively less com-
petitive within the Region and that this impact on these con-
tracts will extend to the portion of the contracts covering
customer locations outside of Mississippi. The ordinances
thus allegedly burden plaintiffs’ interstate commerce. Plain-
tiffs therefore are arguably within the appropriate zone of
interests and, therefore, have standing to challenge whether
the ordinances excessively burden interstate commerce. ”

'7 It is not claimed that anything in the contracts requires that any

waste collected within the Region be disposed of outside of the
Region. Nor do the ordinances make any requirement that any
waste collected outside the Region (though under a contract also
covering waste collected within the Region) be disposed of within
the Region.

'8 A Waste Management representative gave testimony similar to
that given by the BFI representative. He testified that the parent
company, Waste Management, Inc., operated in 48 states and that
because of the interrelated nature of the business, savings achieved
on a transaction in one state would eventually be shared in another
stated. Although the representative did not testify that increased
costs in one area would be similarly shared, we assume arguendo
that they would be.

In any event, when one of multiple co-parties raising the same
claims and issues properly has standing, we do not need to verify
the independent standing of the other co-plaintiffs. See Clinton v.
City of New York, 524 U.S. 417, 118 S.Ct. 2091, 2100 n. 19, 141
L.Ed.2d 393 (1998); Bowsher v. Synar, 478 U.S. 714, 106 S.Ct.
3181, 3185, 92 L.Ed.2d 583 (1986). Therefore, because we find
that BFI has standing to challenge whether the flow control ordi-

17a

D. Pike Balancing Test

We now turn to the Pike balancing test to determine

whether the flow control ordinances excessively burden in-
19 . . oe

terstate commerce.” For this analysis, because plaintiffs do
not have standing to challenge the ordinances as facially dis-
criminatory against out-of-state interests, we ignore the fact
that the ordinances would not permit them to ship waste gen-
erated within the Region out of state.

An “evenhanded” ordinance, i.e., one that does not fa-
cially discriminate against out-of-state interests and only in-
cidentally affects interstate commerce, will be upheld unless
the burden it imposes on interstate commerce is “clearly ex-
cessive in relation to the putative local benefits” of the ordi-
nance. Pike, 90 S.Ct. at 847. To make this assessment, we
consider the nature of the local interest and whether alterna-
tive means could achieve that interest with less impact on
interstate commerce:

“If a legitimate local purpose is found, then the
question becomes one of degree. And the extent of
the burden that will be tolerated will of course de-
pend on the nature of the local interest involved, and
on whether it could be promoted as well with a
lesser impact on interstate activities.” Jd.

We first look for a legitimate public purpose that defen-
dants intended to advance by implementing flow control.
Defendants indeed have a legitimate local purpose: to ensure
the economic viability of their landfill. See U & J Sanitation

nances excessively burden interstate commerce, we need not fur-
ther analyze Waste Management’s independent standing.

'9 Because the magistrate judge alternatively held that the ordi-
nances would not pass even the less rigorous Pike test, we need not
remand the case for the court below to consider the Pike test in the
first instance.

18a

v. City of Columbus, 205 F.3d 1063, 1070 (8th Cir.2000)
(recognizing economic viability as a legitimate local purpose
in the context of a waste flow control ordinance).

Next, we identify the burden imposed on interstate com-
merce. To succeed in a challenge to a regulation under the
Pike balancing test, the challenging party must show that the
regulation has “a disparate impact on interstate commerce.”
Automated Salvage Transp., Inc. v. Wheelabrator Envtl. Sys.,
Inc., 155 F.3d 59, 75 (2d Cir.1998). The “incidental burdens
to which Pike refers are the burdens on interstate commerce
that exceed the burdens on intrastate commerce.” /d. (inter-
nal quotation and citation omitted). “Where a regulation does
not have this disparate impact on interstate commerce, then
we must conclude that ... [it] has not imposed any incidental
burdens on interstate commerce” and, therefore, that it passes
the Pike test. Jd. (internal quotation and citation omitted).

The flow control ordinances here do not have a disparate
impact on interstate commerce; consequently, plaintiffs fail
in their attempt to show that the ordinances do not pass the
Pike test. The only evidence of an interstate burden is the
effect on plaintiffs’ interstate contracts: the flow control or-
dinances, because they will raise plaintiffs’ costs within the
Region and will make plaintiffs relatively less competitive,
impose a burden on plaintiffs’ interstate commerce by affect-
ing the portion of plaintiffs’ interstate contracts that involve
areas beyond Mississippi. The burdens imposed by the ordi-
nances on interstate commerce, however, are no greater than
those imposed on intrastate commerce. Plaintiffs’ contracts
that are wholly within Mississippi, and even wholly within
the Region itself, will also be affected as plaintiffs’ costs in-
crease within the Region and plaintiffs, thereby, become rela-
tively less competitive. In fact, the burden imposed on
wholly intrastate contracts, particularly those that are con-
tained wholly within the Region, will likely be greater than
that imposed by the flow control ordinances on plaintiffs’
interstate contracts. The interstate contracts—which are pre-

ee ee

19a

sumably larger than plaintiffs’ contracts that are contained
entirely within Mississippi or the Region—will likely be more
able to spread the increased costs over a wider base of busi-
ness than will plaintiffs’ smaller contracts. We fail to see
how the ordinances will in this respect impose a greater bur-
den on interstate commerce than they will on intrastate
commerce.

Moreover, so far as they affect BFI and Waste Manage-
ment, the ordinances do not inhibit the flow of goods (or
waste) interstate. Int'l Truck & Engine Corp. v. Bray, 372
F.3d 717, 727 (Sth Cir.2004) (“A statute imposes a burden
when it inhibits the flow of goods interstate.”). Furthermore,
while the ordinances may have the effect of shifting some
business away from plaintiffs, as the ordinances increase
their costs and make them relatively less competitive, this
result does not mean that the ordinances burden interstate
commerce: “[T]he dormant Commerce Clause ‘protects the
interstate market, not particular interstate firms.’” Jd. (quot-
ing Exxon Corp. v. Governor of Md., 437 U.S. 117, 98 S.Ct.
2207, 2215, 57 L.Ed.2d 91 (1978)) (stating that the fact that a
regulation might cause truck purchasers to turn to other com-
peting truck manufacturers did not burden interstate com-
merce). If plaintiffs lose some of their interstate contracts
because of their higher costs within the Region, the ordi-
nances would not prohibit another garbage collector from
entering into a similar interstate contract, whether that gar-
bage collector was from Mississippi or some other state.

Because plaintiffs have not shown that the ordinances
disparately impact interstate commerce relative to intrastate
commerce, their Pike challenge that the ordinances exces-
sively burden interstate commerce fails.

20a

Conclusion

Accordingly, (a) we DISMISS for want of standing plain-
tiffs’ claim with respect to whether the ordinances facially
discriminate against interstate commerce or out-of-state in-
terests, and (b) with respect to whether the ordinances other-
wise excessively burden interstate commerce, we REVERSE
and RENDER judgment for defendants.”°

_

20 In his opinion the magistrate judge did not reach any conclu-
sion regarding Mississippi Code § 17-17-319(2), the law pursuant
to which the Authority directed its Members to enact flow control
ordinances, the judgment does not speak to § 17-17-319(2) and
the parties do not argue that this court need address its constitu-
tionality. Moreover, as we hold that as to the particular flow con-
trol ordinances here the suit must be dismissed for want of
standing with respect to whether the ordinances are facially dis-
criminatory against interstate commerce contrary to the dormant
Commerce Clause and that those ordinances do not violate the
dormant Commerce Clause with respect to whether they otherwise
excessively burden interstate commerce compared to their putative
local benefits, we need not further address the constitutionality of
§ 17-17-319.

2la

APPENDIX B

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF MISSISSIPPI
HATTIESBURG DIVISION

NATIONAL SOLID WASTE MANAGEMENT
ASSOC., et al., PLAINTIFFS

versus

PINE BELT SOLID WASTE MANAGEMENT AU-
THORITY, et al., DEFENDANTS

CIVIL ACTION NO. 2:02CV723Gu
[April 23, 2003]

FINDINGS OF FACT AND CONCLUSIONS OF
LAW PURSUANT TO FED. R. CIV. P. 52(A)

The question before this Court is whether certain munici-
pal ordinances restricting the disposal of solid waste col-
leced within a specific geographic area constitutes a
vidation of the Commere Clause of the United States Consti-
tuton. The plaintiffs, Waste Management of Mississippi,
Inc (“Waste Management”) and Browning Ferris Waste Sys-
tens of Mississippi, LLC (“BFT’”), are in the business of col-
lecion and disposal of solid waste. The, defendant, Pine Belt
Soid Waste Management Authority (“Authority”), caused its
menber governmental entities to enact solid waste flow con-
tro ordinances. Pursuant to these flow control ordinances,
all solid waste collected within the Authority boundaries
mut be directed to the Authority landfill and transfer sta-
tiois. Plaintiffs filed this action contending that the flow
cortrol ordinances discriminate against interstate commence.
Deendants counter that these flow control ordinances are
vald regulations for the collection and disposal of solid
waite. According to defendants, any effect upon interstate
commerce is merely incidental and any burden upon inter-
stae commerce is outweighed by the putative local benefits.

22a

FACTS

The facts in this case are largely undisputed.' In an effort
to address the public necessity for the safe and efficient col-
lection and disposal of solid waste, Mississippi enacted the
“Mississippi Regional Solid Waste Management Authority
Act.” Among other things, the Act permits local govern-
mental bodies to form regional waste management authori-
ties. In 1992, the Pine Belt Regional Waste Management
Authority was created. Its local governmental members in-
cluded the Cities of Hattiesburg, Laurel and Petal, as well as
the Counties of Covington, Jones, Perry, and Lamar.’ The
Authority generates revenue by collecting fees for solid
waste transfer and disposal at its facilities. In 1996, the Au-
thority issued revenue bonds to finance capital expenditures,
land acquisition, construction and maintenance of a regional
landfill and three transfer stations. In the event that the Au-
thority was unable to generate sufficient income to meet its
bonded indebtedness, the Authority members would be obli-
gated to make up the shortfall. While it is stipulated that the
Authority owns the landfill and transfer stations, these facili-
ties are operated under contract by a private entity, to wit:
Enviro Inc. (“Enviro”). The Authority expanded its service
area in 1999 to include approximately 22 Mississippi coun-
ties. Although the membership of the Authority did not
change, the expanded service area permits the Authority to
increase its income stream by receiving additional solid
waste from the municipalities within the expanded area. At
this time, the Authority is in the process of completing a
fourth transfer station.

' Throughout these findings and conclusions, the critical testi-
mony and exhibits will be discussed. However, all of the evidence
has been considered.

2 MIss. CODE ANN. § 17-17-301 through § 17-17-349.
> Lamar County later withdrew from the Authority.

23a

Due primarily to a reduction in the amount of solid waste
received at its facilities, the Authority realized that it would
be unable to meet its financial obligations in fiscal year 2004.
In an effort to increase the volume of solid waste received at
its facilities and consequently increase revenue, the Authority
decided to direct its members to initiate solid waste flow con-
trol ordinances. In July and August of 2002, each member of
the Authority enacted identical flow control ordinances
which require disposal of all solid waste generated within the
geographic boundaries of the Authority at one of its facili-
ties.* A violation of the flow control ordinance constitutes a
misdemeanor offense punishable by fine and/or imprison-
ment.

The plaintiffs collect, process and dispose of commercial
and residential solid waste throughout Mississippi. In addi-
tion, plaintiffs own and operate private landfills and transfer
stations. Significantly, plaintiffs have numerous private con-
tracts for the collection and disposal of commercial solid
waste within the geographic boundaries of the Authority. As
a result of the solid waste flow control ordinances enacted by
the Authority members, plaintiffs will be prohibited from
disposing of solid waste collected within the Authority
boundary at their own facilities or any other public or private
facility outside of the Authority. According to plaintiffs, the
flow control ordinances will increase their operating costs,
place in jeopardy private contracts with commercial solid
waste producers, and result in an unfair economic advantage

* The flow control ordinances were subsequently reenacted in

September, October and November of 2002. They each provide in
part that all “solid waste generated within the geographic bounda-
ries ... that is placed in the waste stream shall be transported to,
stored and managed at the Pine Belt Regional Solid Waste Man-
agement Authorities landfill in Perry County, Mississippi, or at a
transfer station owned by the Pine Belt Regional Solid Waste
Management Authority.”

24a

for their competitors. Consequently, plaintiffs filed a com-
plaint seeking declaratory, injunctive and monetary relief un-
der 42 U.S.C. § 1983. After the plaintiffs filed their
complaint, the parties reached an agreement in which the
municipalities would forego enforcement of the flow control
ordinances, thus maintaining the status quo pending trial and
disposition of this matter on the merits. The matter was tried
without a jury. Subsequent to tral, the parties consented to
trial and entry of a final judgment by a U.S. Magistrate
Judge. The case has been referred pursuant to 28 U.S.C.
§ 636(c)(1) and by the agreement of the parties has been ad-
judicated upon the trial record, exhibits and stipulations.

DISCUSSION

The Authority has undertaken an arduous task. Disposal
of ever increasing amounts of solid waste has created a na-
tional problem that has produced complex environmental,
technical and political issues. The Court must determine
whether the solid waste flow control ordinances enacted by
the defendants affects interstate commerce and if so, whether
these flow control ordinances constitute discrimination
against interstate commerce or whether they regulate in an
evenhanded manner with only incidental effects on interstate
commerce which are outweighed by the putative local bene-
fits.

The Dormant Commerce Clause

The United States Constitution provides that “(t]he Con-
gress shall have Power ... [t]o regulate Commerce ... among
the several States.” U.S. CONST. art. [, § 8, cl. 3. Although
the Commerce Clause is an affirmative grant to Congress, the
Commerce Clause has been interpreted by the courts to con-
tain a “negative” aspect. This doctrine, called the “negative”
or “dormant” Commerce Clause, is a judicially created limit
on a Sstate’s power to regulate interstate commerce in the ab-
sence of authority from the Congress. It denies the States the
power to unjustifiably discriminate against or burden the in-

25a

terstate flow of articles of commerce. Ore. Waste Sys., Inc.
v. Dep't of Envtl. Quality, 511 U.S. 93, 98,114 S. Ct. 1345,
1349, 128 L. Ed. 2d 13 (1994).

The courts have developed two lines of analysis to de-
termine if a law violates the dormant Commerce Clause.
First, the court considers whether the law is facially discrimi-
natory, in its practical effect or purpose. City of Philadelphia
v. New Jersey, 437 U.S. 617, 98 S. Ct. 2531, 57 L. Ed. 2d
475 (1978). Laws that discriminate against interstate com-
merce are virtually per se invalid unless the municipality can
demonstrate, under rigorous scrutiny, that the discriminatory
law is justified by a valid factor unrelated to economic pro-
tectionism and that no nondiscriminatory alternatives exist
which will preserve the local interests at stake. Hynt [sic] v.
Wash. State Apple Adver. Comm ‘n, 432 U.S. 333, 353, 97 S.
Ct. 2424, 2446, 53 L. Ed. 2d 383 (1977); see also Chem.
Waste Mgmt., Inc. v. Hunt, 504 U.S. 334, 342-45,112 S. Ct.
2009, 2013-16,119 L. Ed. 2d 121 (1992). Second, if the law
does not discriminate against interstate commerce, the court
considers whether the law regulates evenhandedly, having
only incidental effects on interstate commerce. “Where the
Statute regulates even-handedly to effectuate a legitimate lo-
cal public interest, and its effects on interstate commerce are
only incidental, it will be upheld unless the burden imposed
on such commerce is clearly excessive in relation to the puta-
tive local benefits.” Pike v. Bruce Church, Inc., 397 U.S.137,
142, 90 S. Ct. 844, 847, 25 L. Ed. 2d 174 (1970). Under
Pike, the court applies a “balancing test” to determine
whether the putative local interests outweigh the burden im-
posed by the law.

C & A Carbone, Inc. v. Town of Clarkstown

The seminal decision in regard to solid waste flow con-
trol ordinances and their impact on the dormant Commerce
Clause is C & A Carbone, Inc. v. Town of Clarkstown, 511
U.S. 383,114 S. Ct.1677,128 L. Ed. 2d 399 (1994). In Car-

26a

bone, the Town of Clarkstown, New Jersey, wanted to build
a transfer station in order to process non-recyclable solid
waste. A private contractor agreed to build the facility and
run it for five years. During the five year period, the transfer
station would be financed by a “tipping fee” collected by the
contractor. In addition, the Town of Clarkstown agreed to
guarantee a minimum tonnage of solid waste and to pay for
any deficiencies between the actual and guaranteed minimum
tonnage. Upon expiration of the five-year operating agree-
ment, the contractor agreed to convey the facility to the
Town of Clarkstown for one dollar. In an effort to avoid the
potential that local taxpayers would be required to pay addi-
tional fees to the private operator for solid waste that was
never actually delivered, the Town of Clarkstown enacted a
flow control ordinance. The flow control ordinance required
that all acceptable solid waste generated within the Town of
Clarkstown be processed at the new transfer station. C. & A.
Carbone, Inc. was cited for violation of the flow control ordi-
nance by exporting solid waste that had been generated
within the town’s geographic boundaries.

The Supreme Court held that the flow control ordinance
enacted by the Town of Clarkstown discriminated against
interstate commerce because it permitted only the favored
local operator to process waste. The Court reasoned as fol-
lows:

[T]he article of commerce is not so much the solid
waste itself, but rather the service of processing and
disposing of it.

With respect to this stream of commerce, the
flow control ordinance discriminates, for it allows
only the favored operator to process waste that is
within the limits of the town. The ordinance is no
less discriminatory because in-state or in-town proc-
essors are also covered by the prohibition ... .

27a

. . . The essential vice in laws of this sort is
that they bar the import of the processing service

Put another way, the offending local laws
hoard a local resource — be it meat, shrimp, or milk
— for the benefit of local businesses that treat it.

The flow control ordinance has the same de-
sign and effect. It hoards solid waste, and the de-
mand to get rid of it, for the benefit of the preferred
processing facility.

Carbone, 511 U.S. at 391-92 (citations omitted). Applying
strict scrutiny, the Court further held that the discriminatory
flow control ordinance was per se invalid since the town
could have protected its local interests through nondiscrimi-
natory alternatives. In so holding, the Court reasoned as fol-

lows:

The flow control ordinance does serve a cen-
tral purpose that a nonprotectionist regulation would
not: It ensures that the town-sponsored facility will
be profitable, so that the local contractor can build it
and Clarkstown can buy it back at nominal cost in
five years. In other words, as the most candid of
amici and even Clarkstown admit, the flow control
ordinance is a financing measure. By itself, of
course, revenue generation is not a local interest that
can justify discrimination against interstate com-
merce ....

Clarkstown maintains that special financing is
necessary to ensure the long-term survival of the
designated facility. If so, the town may subsidize
the facility through general taxes or municipal
bonds. But having elected to use the open market to
earn revenues for its project, the town may not em-
ploy discriminatory regulation to give that project
an advantage over rival businesses from out of
State.

28a

Carbone, 511 U.S. at 393-94 (citations omitted).
The Public/Private Distinction

In United Haulers Ass'n, Inc. v. Oneida-Herkimer Solid
Waste Mgmt. Auth., 261 F.3d 245 (2d Cir. 2001) cert. denied
534 U.S. 1082 (2002), the district court, applying Carbone,
held that the counties’ flow control laws discriminated
against interstate commerce in favor of the authority’s desig-
nated facilities. The Second Circuit reversed. It found the
facts in Carbone were distinguishable in that the Clarkstown
transfer station was owned by a private contractor while the
counties’ transfers stations were publicly owned. The court
held that:

[A] flow control ordinance governing the processing
of waste is not discriminatory under the Commerce
Clause unless it favors local private business inter-
ests over out-of-state interests. Flow control regula-
tions . . ., which negatively impact all private
businesses alike, regardless of whether in-state or
out-of-state, in favor of a publicly owned facility,
are not discriminatory under the dormant Commerce
Clause.

United Haulers, 261 F.3d at 263.° The case was remanded to
the district court for a determination of whether the counties’
flow control ordinances passed constitutional muster under
the Pike balancing test.

The majority in Carbone did not draw a distinction be-
tween publicly and privately owned facilities for purposes of
its analysis of the Clarkstown flow control ordinance under
the dormant Commerce Clause. Neither has the Fifth Circuit
had an occasion to consider the issue. Nonetheless, defen-

* See also East Coast Recycling, Inc. v. City of Port St. Lucie,
234 F. Supp. 2d 1259 (S.D. Fla. 2002) (recognizing the distinction
between public and private ownership and applying the Pike test).

29a

dants invite the Court to embrace the public/private distinc-
tion in United Haulers and evaluate their flow control ordi-
nances under the less demanding Pike test. In the absence of
clear and binding precedent supporting the public/private dis-
tinction in evaluating the impact of defendants’ flow control
ordinances on interstate commerce, the majority opinion in
Carbone controls. It is the opinion of this Court, that the
July 2002 flow control ordinances enacted by the Authority,
like the flow control ordinance in Carbone, discriminate
against interstate commerce. The Authority has drawn a ring
around itself. Solid waste collected within that ring must be
processed at its preferred transfer stations and landfill. These
flow control ordinances prevent everyone except the favored
local operator from processing solid waste collected within
its boundaries and deprives outside access to the local waste
disposal market. Consequently, these flow control ordi-
nances hoard “solid waste, and the demand to get rid of it, for
the benefit of the preferred processing facility.” Carbone,
511 U.S. at 392. It is also the opinion of this Court that the
defendants have failed to demonstrate that they had no other
means to advance their admitted objective: the generation of
adequate revenue to meet their financial obligations. In fact,
the trial evidence showed that defendants could have pro-
moted financial viability through i increases in taxes, through
the imposition of franchise fees® or by increasing the amount
of solid waste processed at its facilities by accepting solid
waste from municipalities outside of the Authority. Thus,
like the flow control ordinance in Carbone, these flow con-
trol ordinances are pre se [sic] invalid.

Moreover, while the parties have stipulated that the Au-
thority owns the landfill and transfer stations, the relationship

* During trial, the Authority admitted that an alternative means of
generating revenue was the collection of a “franchise fee” granting
private solid waste collectors a license to collect solid waste within
the Authority’s geographic boundaries.

30a

between the Authority and Enviro (the contract operator)
makes it difficult to characterize the Authority landfill and
transfer stations as a purely public endeavor. Jn United
Haulers, the waste management authority owned and oper-
ated all of its facilities save one transfer station. United
Haulers, 261 F.3d at 250. The court was also careful to point
out that the “current out-sourcing of the transfer station’s op-
eration is a temporary measure.” United Haulers, at 251. In
contrast, the Authority has given no indication that it intends
to assume the operation of its facilities or that the current sys-
tem of private operation of its facilities is other than perma-
nent. Enviro’s contract with the Authority essentially gives
Enviro complete control over the operation and maintenance
of the landfill and transfer stations. Enviro provides all of the
equipment and personnel. It controls access to the facilities,
and operates and maintains the weight scales and records.
While the operating contract does not guarantee a minimum
amount of solid waste, payments to Enviro are based upon
the amount of solid waste delivered to each facility. Deten-
dants’ flow control ordinances not only increase the amount
of solid waste processed at its facilities, but they insure En-
viro an increased stream of solid waste and the ultimate reve-
nue that it generates. When these factors are considered in
combination with the fact that Enviro is also in the solid
waste collection and disposal business and that its primary
competitors are plaintiffs, the economic advantages associ-
ated with the flow control ordinances cannot be categorized
as purely public. In sum, the nature of the relationship be-
tween the Authority and Enviro is clearly distinguishable
from the United Haulers case.

Finally, this Court notes that defendants’ reliance on the
Pike balancing test to vindicate these flow control ordinances
is misplaced. Assuming arguendo that defendants are entitled
to rely on the public/private distinction announced in United
Haulers and that the Pike balancing test applies, under the
facts in this case, the flow control ordinances would fail to

2.20

3la

pass constitutional muster. The concurring opinion in Car-
bone is instructive. Justice O’Connor reasoned that the
Town of Clarkstown’s ordinance did not discriminate against
interstate commerce. Carbone, 511 U.S. at 404-05
(O’Connor, J., concurring). However, applying the Pike test,
Justice O’Connor determined that Clarkstown’s flow control
ordinance imposed an excessive burden in relation to the pu-
tative local benefits. Justice O’Connor concluded:

That the ordinance does not discriminate
against interstate commerce does not, however, end
the Commerce Clause inquiry. Even a nondiscrimi-
natory regulation may nonetheless impose an exces-
sive burden on interstate trade when considered in
relation to the local benefits conferred. ... More-
over, “the extent of the burden that will be tolerated
will of course depend on the nature of the local in-
terest involved, and on whether it could be pro-
moted as well with a lesser impact on interstate
activities.” Pike, 397 U.S., at 142, 90 S.Ct., at 847.
Judged against these standards, Local Law 9 fails.

The local interest in proper disposal of waste
is obviously significant. But this interest could be
achieved by simply requiring that all waste disposed
of in the town be properly processed somewhere.
For example, the town could ensure proper process-
ing by setting specific standards with which all town
processors must comply.

In fact, however, the town’s purpose is nar-
rower than merely ensuring proper disposal. Local
Law 9 is intended to ensure the financial viability of
the transfer facility. I agree with the majority that
this purpose can be achieved by other means that
would have a less dramatic impact on the flow of
goods. For example, the town could finance the
project by imposing taxes, by issuing municipal

32a

bonds, or even by lowering its price for processing
to a level competitive with other waste processing
facilities. But by requiring that all waste be proc-
essed at the town’s facility, the ordinance
“squelches competition in the waste-processing ser-
vice altogether, leaving no room for investment
from outside.”

Carbone, at 405-07 (O’Connor, J., concurring) (citations
omitted).

Likewise, defendants’ solid waste flow control ordi-
nances were enacted out of the need to generate additional
income in order to meet future financial obligations. The
Court recognizes that the Authority’s need to generate suffi-
cient income to maintain economic viability constitutes a le-
gitimate public purpose, but it is not a permissible basis for
interference with interstate commerce. As noted by the Court
in Carbone, “[b]y itself, . . . revenue generation is not a local
interest that can justify discrimination against interstate
commerce.” Carbone, at 393. As noted above, the Authority
could have undertaken alternative steps to insure its eco-
nomic interests without resorting to solid waste flow control.
In addition, defendants introduced no evidence at trial which
tended to demonstrate that environmental or public health
concerns were the motivating force behind enactment of
these flow control ordinances. Thus, even under the less rig-
orous Pike test, defendants’ solid waste flow control ordi-
nances fail.

CONCLUSION

It is the opinion of the Court that the solid waste flow
control ordinances enacted by the members of the Pine Belt
Regional Waste Management Authority affect interstate
commerce. It is also the opinion of the Court that these flow
control ordinances, like the flow control ordinance in Car-
bone, discriminate aga’nst interstate commerce and are pre se
[sic] invalid. It is also the opinion of the Court that the de-

33a

fendants have failed to demonstrate that they had no other
means to advance the local governmental interest.

IT IS THEREFORE ORDERED AND ADJUDGED,
that plaintiffs are entitled to Declaratory Relief as stated
herein above and that plaintiffs are entitled to a permanent
injunction prohibiting the enforcement of the solid waste
flow control ordinances enacted by the defendants in July
and August of 2002 and subsequently reenacted in Septem-
ber, October and November of 2002.

IT IS FURTHER ORDERED AND ADJUDGED, that
all further relief should be, and is hereby denied. The Court
shall enter a separate judgement pursuant to Fed. R. Civ. P.
58.

SO ORDERED AND ADJUDGED, this the 23 day of
April, 2003.

ltl
LOUIS GUIROLA, JR.
U.S. MAGISTRATE JUDGE

34a

APPENDIX C

IN THE UNITED STATES COURT OF APPEALS,
FOR THE FIFTH CIRCUIT

No. 03-60470

NATIONAL SOLID WASTE MANAGEMENT ASSOCIA-
TION; ET AL

Plaintiffs

NATIONAL SOLID WASTE MANAGEMENT ASSOCIA-
TION; BFI WASTE SYSTEMS, BFI Waste systems of Mis-
sissippi LLC; WASTE MANAGEMENT OF MISSISSIPPI
INC

Plaintiffs — Appellees
V.

PINE BELT REGIONAL SOLID WASTE MANAGEMENT
AUTHORITY AND ITS BOARD OF COMMISSIONERS;
COVINGTON COUNTY; JONES COUNTY; PERRY
COUNTY, CITY OF PETAL; CITY OF LAUREL; CITY
OF HATTIESBURG, MISSISSIPPI

Defendants — Appellants
MIKE MOORE
Intervenor-Defendant-Appellant

Appeals from the United States District Court for the
Southern District of Mississippi, Hattiesburg

ON PETITIONS FOR REHEARING EN BANC

(Opinion 10/29/04, 5 Cir., , F.3d )

35a

Before GARWOOD, WIENER and DeMOSS, Circuit
Judges.

PER CURIAM:

( ~ ) Treating the Petitions for Rehearing En Banc as Peti-
tions for Panel Rehearing, the Petitions for Panel Rehearing
are DENIED. No member of the panel nor judge in regular
active service of the court having requested that the court be
polled on Rehearing En Banc (Fed. R. App. P. and 5" Cir. R.
35), the Petitions for Rehearing En Banc are DENIED.

( ) Treating the Petitions for Rehearing En Banc as Peti-
tions for Panel Rehearing, the Petitions for Panel Rehearing
are DENIED. The court having been polled at the request of
one of the members of the court and a majority of the judges
who are in regular active service not having voted in favor
(Fed. R. App. P. and 5" Cir. R. 35), the Petitions for Rehear-
ing En Banc are DENIED.

ENTERED FOR THE COURT:

[s]

United States Circuit Judge

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386007_0718%3A2. Public record. Not legal advice.
