OCTOBER TERM 2006 · DECIDED APRIL 30, 2007 · 6–3

550 U.S. ___ · No. 05-1345 · Argued January 8, 2007

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United Haulers Ass'n v. Oneida-Herkimer Solid Waste Management Authority

AffirmedFinal ruling
waste managementinterstate commercelocal government powerpublic utilitiescommerce clause

Opinion of the Court by Justice Roberts, joined by Justices Souter, Ginsburg, and Breyer

The Supreme Court upheld local "flow control" laws requiring trash haulers to deliver waste to a publicly owned processing facility, ruling that laws favoring a government facility over all private companies equally do not discriminate against interstate commerce.

The decision distinguishes a 1994 ruling that struck down a similar law favoring a private facility, meaning local governments can now steer trash — and the fees that come with it — toward their own public operations without running afoul of the Constitution's limits on state interference with interstate trade.

How it got here: A federal trial court ruled for the haulers; the Second Circuit reversed and later affirmed for the counties after remand; the haulers appealed to the Supreme Court, which took the case to resolve a circuit split.

The Case in Depth

What happened

Facing a garbage crisis marked by unpermitted landfills, price gouging, and organized crime influence, two New York counties created a public authority to handle waste disposal. The counties required private haulers to deliver all collected trash to the authority's facilities and pay fees there, ensuring the authority could cover its costs. A trade association of haulers sued, arguing the requirement improperly blocked cheaper out-of-state disposal options.

The question before the Court

Could two New York counties require trash haulers to bring all garbage to a government-run waste facility, even though that made disposal more expensive than out-of-state options?

The Court's answer

Yes — the Court ruled that the counties could require trash haulers to bring waste to the publicly owned processing facility, even though this meant higher costs than out-of-state disposal. The key move was distinguishing this from the Court's 1994 Carbone decision, which struck down a similar law favoring a privately owned facility. The Court held that laws favoring a government facility over all private competitors equally are different from laws favoring one private business over another, because government carries special public responsibilities and its favoritism is less likely driven by pure economic protectionism.

Because the ordinances treated every private hauler the same regardless of location, the Court found no discrimination against interstate commerce and did not need to strike them down under the strictest constitutional test. The Court also found any incidental burden on trade was outweighed by the ordinances' financing and recycling benefits.

Curious how the Court got there? See the step-by-step legal reasoning →

Why it matters

Local governments across the country that run their own waste, recycling, or similar public utilities can now require residents and haulers to use those government facilities, even if it costs more than private out-of-state alternatives. Private trash companies lose a constitutional tool to challenge these arrangements, while counties gain more certainty in financing public services through mandatory fees.

What changes now

This is a final merits decision affirming the Second Circuit, so the flow control ordinances remain in effect and the litigation is over. The ruling resolves a circuit split with the Sixth Circuit's contrary decision, giving other local governments a clearer path to structure public waste (or similar) monopolies. Future disputes will likely focus on whether particular arrangements truly treat all private competitors equally.

What this does not decide

The Court did not decide whether laws favoring private facilities over other private competitors are treated differently \u2014 that remains governed by Carbone. It also did not resolve the incidental-burden Pike-balancing question with full Court agreement, since Justice Scalia did not join that part, and it left open how far the public-facility exception reaches beyond waste disposal.

Concurrences and dissents

Concurrence in part — Justice Scalia

Justice Scalia joined the parts of the opinion holding that the ordinances do not discriminate against interstate commerce, reaffirming his broader view that the dormant Commerce Clause is not grounded in the Constitution's text and should not be expanded. He declined to join the portion applying Pike balancing, reasoning that weighing burdens against benefits of legislation is a job for Congress, not courts.

Concurrence — Justice Thomas

Justice Thomas agreed with the outcome but argued the entire dormant Commerce Clause doctrine has no constitutional basis and should be discarded rather than merely narrowed. He contended that deciding these cases inevitably turns on policy preferences rather than legal text, and criticized the majority for tweaking rather than abandoning what he views as an illegitimate doctrine, similar to Lochner.

Dissent — Justice Alito

The public-private distinction drawn by the Court is both illusory and without precedent.The dissent's central objection that the majority's line between public and private facilities is unfounded.

Justice Alito argued the case was indistinguishable from Carbone because the facility there was functionally municipal despite nominal private ownership, so the public-private line the majority drew is illusory. He contended that discrimination favoring government-owned enterprises can be just as protectionist as discrimination favoring private ones, and would have struck down the ordinances as unconstitutional discrimination against interstate commerce.

How the Court got there

The legal reasoning, step by step

  1. The Court asked whether the ordinances discriminate on their face against interstate commerce, meaning whether they give an advantage to in-state economic interests at the expense of out-of-state ones — the threshold test under the Constitution's unwritten limit on state interference with interstate trade, known as the dormant Commerce Clause.
  2. The Court distinguished its 1994 ruling in Carbone, which struck down a similar law favoring a privately owned facility, by concluding that Carbone never actually decided whether laws favoring a publicly owned facility should be treated the same way; the majority in that case simply never reached the public-versus-private question.
  3. The Court reasoned that government facilities are not "similarly situated" to private businesses for discrimination purposes, because government carries special responsibilities for public health and safety that private companies do not share, so treating public and private favoritism identically was not required.
  4. Because laws favoring in-state private businesses are typically driven by economic protectionism while laws favoring local government can serve many legitimate, non-protectionist goals, the Court applied a more lenient standard, deferring to the choice to have government handle a traditional local function like waste disposal.
  5. Applying that lenient standard, the Court found the ordinances treated every private hauler — in-state or out-of-state — exactly the same, so they did not discriminate against interstate commerce, and any burden on trade fell mainly on the counties' own residents rather than outsiders.
  6. For the portions of the opinion addressing whether the incidental burden on commerce outweighed the ordinances' benefits (the Pike balancing test), the Court found the financing, recycling, and enforcement benefits of the ordinances outweighed any burden on interstate commerce.

Doctrinal impact

Laws and provisions at issue

Commerce Clause (dormant/negative aspect)

Unwritten constitutional limit stopping states from unfairly favoring in-state business over out-of-state competitors.

Cases affected by this decision

Distinguishes C & A Carbone, Inc. v. Clarkstown (511 U. S. 383)

The Court said Carbone struck down favoritism toward a private facility but never decided the public-facility question at issue here.

Supreme Court Opinion

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United Haulers Ass'n v. Oneida-Herkimer Solid Waste Management Authority | SCOTUS Reporter