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Flow Control Update . Dormant Commerce Clause Challenges May 13, 2014. Presented by Andrew Foster. Topics for Today:. Historical “Big Picture” C&A Carbone (1994) & United Haulers (2007) Post- United Haulers Cases C&A Carbone/Rockland County (2014)

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flow control update

Flow Control Update

Dormant Commerce Clause Challenges

May 13, 2014

Presented by Andrew Foster

topics for today
Topics for Today:
  • Historical “Big Picture”
  • C&A Carbone (1994) & United Haulers (2007)
  • Post-United Haulers Cases
  • C&A Carbone/Rockland County (2014)
          • Implications/What’s Next?
topics not for today
Topics NOT for Today:
  • Economic Flow Control
  • Other Legal Challenges:
    • Void for Vagueness (JWJ Industries)
    • Impairment of Contracts (City of Dallas)
    • Due Process Violations
    • Takings
c a carbone v clarkstown 1994
C & A Carbone v. Clarkstown (1994)
  • Town ordinance imposed “Flow Control”
  • Directed all solid waste to a favored private facility
  • HELD: Violates the dormant Commerce Clause:
    • “hoards solid waste” for “favored local operator”
    • “squelches competition”
    • “discriminates” against interstate commerce
    • “economic effects are interstate in reach”
united haulers v oneida herkimer 2008
United Haulers v. Oneida-Herkimer (2008)
  • County ordinances imposed “Flow Control”
  • Directed all solid waste to publicly owned and operated facilities
  • HELD: No dormant Commerce Clause Violation:
    • Exception for “publicly owned and operated” facilities
    • Flow Control laws that benefit “a clearly public facility” . . . are not “discriminatory”
underlying second circuit opinions
Underlying Second Circuit Opinions:
  • United Haulers (2d Cir., 2001)
    • No “discrimination,” because publicly owned facilities
    • Remanded for Pike balancing
  • United Haulers (2d Cir., 2006)
    • Pike balancing challenge rejected
    • If any “burden,” far outweighed by benefits
post united haulers developments
Post-United Haulers Developments:
  • Quality Compliance (2008, M.D. GA.)
  • Lebanon Farms (2008, 3d Cir.)
  • Construction Materials (2009, D.N.H.)
  • Southern Waste (2010, S.D. Fl.)
  • Active Disposal (2010, N.D. IL.)
  • Sandlands C&D (Horry County) (2013, 4th Cir.)
c a carbone v rockland county 2014
C&A Carbone v. Rockland County (2014)
  • County ordinance imposed waste “Flow Control”
  • Directed all solid waste AND recyclables to publicly owned, but (arguably) privately operated facilities
  • HELD:
    • No “discrimination” under UH (2d Cir., 2001)
    • Pike balancing rejected per UH (2d Cir. 2006)
c a carbone v rockland county 20141
C&A Carbone v. Rockland County (2014)
  • Subholdings:
    • Mere public ownership of building is determinative
    • Unprecedented scope → recyclables!
    • “Market participation” doctrine protects “outsourcing” of operations
    • Evidence of law’s “ultimate efficacy” → irrelevant
slide25
Undermines narrowness of United Haulers publicly “owned and operated”/“clearly public” exception
  • Encourages adoption of new flow control laws using publicly-owned, but privately-operated facilities
  • Invites flow control laws encompassing recyclables
  • Sanctions “nominal” public ownership of buildings to insulate flow control laws from challenge
  • Invites local governments to favor local firms via the “market participation” exception).
slide26

Thank You & Questions?

Andrew P. Foster

Drinker Biddle & Reath LLP

One Logan Square, Ste. 2000

Philadelphia, PA 19103-6996

(215) 988-2512 phone

(215) 988-2757 fax

Andrew.Foster@dbr.com

www.drinkerbiddle.com