Document: 511 U.S. 93114 S.Ct. 1345128 L.Ed.2d 13 OREGON WASTE SYSTEMS, INC., et al., Petitionersv.DEPARTMENT OF ENVIRONMENTAL QUALITY The STATE al. COLUMBIA RESOURCE COMPANY, Petitioner v. COMMISSION OREGON. Nos. 93-70, 93-108. Supreme Court of the United States Argued Jan. 18, 1994. Decided April 4, Syllabus * Oregon imposes a $2.50 per ton surcharge on in-state disposal solid waste generated in other and an $0.85 fee within Oregon. Petitioners sought review out-of-state State Appeals, challenging administrative rule establishing its enabling statutes under, inter alia, Commerce Clause. court upheld rule, affirmed. Despite statutes' explicit reference to waste's geographical location, reasoned, surcharge's express nexus actual costs incurred by state local government rendered it facially constitutional "compensatory fee." Held: Oregon's is invalid under negative Pp. ____. (a) first step analyzing law Clause determine whether discriminates against, or regulates evenhandedly with only incidental effects on, interstate commerce. If restriction discriminatory—i.e., favors economic interests over their counterparts—it virtually se invalid. By contrast, nondiscriminatory regulations are valid unless burden imposed commerce "clearly excessive relation putative benefits." Pike Bruce Church, Inc., 397 137, 142, 90 844, 847, 25 174. obviously discriminatory face. It subjects from almost three times greater than charge waste, statutory determinant for applies not was out state. alleged compensatory aim has no bearing discriminatory. See Chemical Waste Management, Inc. Hunt, 504 ----, 112 2009, 119 121. 1349-1350. (b) Because discriminatory, invalidity—not balancing test —provides proper legal standard these cases. Thus, must be invalidated respondents can show that advances legitimate purpose cannot adequately served reasonable alternatives. Neither respondents' justifications passes strict scrutiny. For justified as tax" necessary make shippers pay "fair share" costs, rough equivalent identifiable substantially similar intrastate However, have failed identify specific equal exceeding surcharge; about one-third challenged surcharge. Even assuming various means general taxation, such income taxes, could serve roughly burden, argument fails because levies events: Taxes earning utilizing landfills entirely different kinds taxes. Nor interest spreading but all Oregonians. scheme necessarily results full less cost, incorporates illegitimate protectionist objective. Wyoming Oklahoma, 502 789, 117 1. Recharacterizing "resource protectionism" discouraging importation order conserve more landfill space waste—hardly cause. A may accord own inhabitants preferred right access consumers natural resources. Philadelphia New Jersey, 437 617, 627, 98 2531, 2537, 57 475. Sporhase Nebraska, 458 941, 102 3456, 73 1254, distinguished. 316 Ore. 99, 849 P.2d 500 (1993), reversed remanded. THOMAS, J., delivered opinion Court, which STEVENS, O'CONNOR, SCALIA, KENNEDY, SOUTER, GINSBURG, JJ., joined. REHNQUIST, C.J., filed dissenting opinion, BLACKMUN, Andrew J. Pincus, Washington, DC, argued petitioners. Thomas A. Balmer, Salem, OR, respondent. Justice THOMAS Court. 1 Two Terms ago, 121 (1992), we held prohibited Alabama imposing higher hazardous identical Alabama. In reaching conclusion, however, left open possibility differential might if based disposing States. Id., at n. 9, S.Ct., 2016, 9. Today, decide purportedly cost-based violates 2 Like States, comprehensively wastes borders.1 Respondent Department Environmental Quality oversees State's regulatory developing executing plans management, reduction, recycling wastes. To fund related activities, wide range fees operators. See, e.g., Ore.Rev.Stat. §§ 459.235(3), 459.310 (1991). 1989, Legislature additional fee, called "surcharge," "every person who disposes site regional site." § 459.297(1) (effective 1, 1991). amount respondent Commission (Commission) through rulemaking, legislature did require resulting "be political subdivisions otherwise paid for" specified statutes. 459.298. At conclusion rulemaking process, set $2.25 ton. Ore.Admin.Rule 340-97-120(7) (Sept.1993). 3 conjunction surcharge, 459A.110(1), (5) capped statute (originally $0.50 ton), considerably lower 459A.110(5) 459A.115. Subsequently, conditionally extended addition 459A.110(6), proviso survived judicial challenge, would again limited waste. 1991 Ore.Laws, ch. 385, 91-92.2 4 anticipated challenge long coming. Petitioners, Systems, (Oregon Waste) Columbia Resource Company (CRC), joined Gilliam County, Oregon, expedited Appeals. owns operates accepts final CRC, pursuant 20-year contract Clark neighboring Washington State, transports via barge County Morrow both Constitution. Appeals rule. Quality, 114 Ore.App. 369, 837 965 (1992). 5 (1993). As Clause, recognized resembled prescribed Nevertheless, viewed similarity superficial only. geographic origin, "[b]ecause [its] [by government]." Ore., 112, P.2d, 508. That distinguished Waste, supra, rendering fee," "prima facie reasonable," say, constitutional. Ibid. read our case invalidating they " 'manifestly disproportionate services rendered.' (quoting Paul Gray, 306 583, 599, 59 744, 753, 83 L.Ed. 1001 (1939)). restricts scope proceedings deciding facial legality rules underlying them, 183.400 (1991), deemed itself precluded factual question disproportionate. 6 We granted certiorari, 509 38, 125 787 decision below conflicted recent Seventh Circuit.3 now reverse. II 7 provides "[t]he Congress shall Power . [t]o regulate among several States." Art. I, 8, cl. 3. Though phrased grant power Congress, been understood "negative" aspect denies unjustifiably discriminate against flow articles 799, (1992); Welton Missouri, 91 275, 23 347 (1876). Framers plenary authority "the conviction succeed, new Union avoid tendencies toward Balkanization had plagued relations Colonies later Articles Confederation." Hughes 441 322, 325-326, 99 1727, 1731, 60 250 (1979). generally Federalist No. 42 (J. Madison). "This principle unit Nation, alone gamut powers control economy, corollary states separable units." H.P. Hood & Sons, Du Mond, 336 525, 537-538, 69 657, 665, 93 865 (1949). 8 Consistent principles, any subject scrutiny "regulates 'incidental' commerce, commerce." Hughes, U.S., 336, 1736. also 2013. use term here, "discrimination" simply treatment benefits former burdens latter. 6, 2015, 6. 624, 2535, 475 (1978). clearly 174 (1970). 9 easily found Alabama's 2013-2014. deem equally obvious here particular shipment "generated out-of-state." well-established, 'tax[es] transaction incident heavily when crosses lines occurs State.' 2014 Armco Hardesty, 467 638, 642, 104 2620, 2622, 81 540 (1984)). American Trucking Assns., Scheiner, 483 266, 286, 107 2829, 2841, 97 226 (1987).4 10 Respondents argue, held, between [otherwise uncompensated] out-of-state," 459.298 precludes finding find narrow focus foreclosed precedents. reiterated of, justification for, Philadelphia, 626, 2536. Consequently, even merely recoups fact remains counterparts handling making distinction, patently III 11 invalidity test. result, "sho[w] alternatives." Energy Co. Indiana Limbach, 486 269, 278, 108 1803, 1810, 100 302 (1988). 2014-2016. Our cases restrictions pass "strictest scrutiny." 337, 1737. so heavy "facial discrimination fatal defect." Westinghouse Elec. Corp. Tully, 466 388, 406-407, 1856, 1867-1868, 80 388 (1984); Maryland Louisiana, 451 725, 759-760, 101 2114, 2135-2136, 68 576 (1981). 12 outset, note two presented. No claim made waste.5 Also, offered safety health reason unique nonhazardous into Cf. Maine Taylor, 477 131, 106 2440, 110 (1986) (upholding ban baitfish were parasites completely foreign baitfish). come forward reasons levied offer reasons, each address below. 14 Respondents' principal defense State. noted justify tax observation, implicitly settled 'pay way.' Complete Auto Transit, Brady, 430 274, 281, 1076, 1080, 51 326 (1977). Maryland, 754, 2133. "It clause relieve those engaged just share burden[s]." Western Live Stock Bureau Revenue, 303 250, 254, 58 546, 548, 82 823 (1938). Henneford Silas Mason Co., 300 577, 524, 814 (1937). one central purposes prevent "exacting Dept. Revenue Association Stevedoring Cos., 435 734, 748, 1388, 1398, 55 682 (1978) (emphasis added). Northwestern Portland Cement Minnesota, 358 450, 462, 79 357, 364, 421 (1959). 15 least since Hinson Lott, Wall. 148, 19 387 (1868), principles expression "compensatory" "complementary" doctrine. sometimes discuss concept doctrine unto itself, way justifying achieving achieved means. 2016 (referring "justif[ication]" tax). Under doctrine, "substantially similar" does offend 758-759, 2135-2136. Tyler Pipe Indus., 232, 242-243, 2810, 2817-2818, 199 (1987); Armco, 643, 2623. 16 tax, must, threshold matter, "identif[y] [intrastate tax] attempting compensate." 758, 2135. Once identified, shown approximate—but exceed —the Alaska Arctic Maid, 366 199, 204-205, 929, 932-933, 227 (1961). Finally, events taxes equivalent"; is, sufficiently substance mutually exclusive "prox[ies]" other. Cardozo explained Henneford, truly stranger afar consequence ownership dweller gates. pays upon activity incident, another, sum same reckoning closed." 584, 527.6 17 Although often mean feat little difficulty concluding tax. impose considered compensatory. fact, analogous ton, approximately 459A.110(5), 459A.115 failure claim. 18 argue that, despite absence taxation.7 Whether true difficult determine, "[general] payments received [government], are, receipt, lost revenues." Flast Cohen, 392 83, 128, 88 1942, 1967, 20 947 (1968) (Harlan, dissenting). assuming, events. prototypical example taxable sale trade. supra. products purchased memory ibid. Typifying reluctance recognize categories where manufacturing wholesaling view, wholesaling. Indeed, very charged though refutes respective equivalent. conclude far being equivalent, "entirely kind[s] tax[es]." 460 536, 11, 103 1344, 1350 75 264 (1983). inclined Scheiner "plunge morass weighing comparative burdens" comparing dissimilar 289, 2843 (internal quotation marks omitted).8 B citizens benefit them bear burden. time, should required result cost-shifting disposal, permit cost. 21 fail perceive distinction contention reducing condemn illegitimate, governmental "unrelated protectionism," Wyoming, 800 regulating give handle domestic cost advantage competitors items produced elsewhere constitutes protectionism. Energy, 1808.9 controlling effect characterization seemingly benign cost-spreading us overlook objective well. Bacchus Imports, Ltd. Dias, 468 263, 273, 3049, 3056, 200 (1984) (rejecting Hawaii's attempt exemption liquor producers conferring opposed burdening producers). 22 counter form protectionism, landfills, conserves resource protectionism hardly cause, however. "natural resource," "a resources located borders." 2537. century "if guise exerting police powers, [impose burden] applicable solely [of commerce] manufactured courts holding legislation conflict Constitution Guy Baltimore, 434, 443, 743 (1880). 1254 (1982), contrary. There "limited preference" utilization ground water. 956, 3464. premised factors tied simple life "water, unlike resources, essential human survival." 952, 3461. therefore support position erect financial barrier landfills. Fort Gratiot, 2027, However serious shortage be, post, ____, "[n]o isolate problem common raising barriers free trade." 2012 IV 24 broad discretion configure systems taxation appropriate. Commonwealth Edison Montana, 453 609, 622-623, 2946, 2955-2956, 884 (1981); Boston Exchange Tax Comm'n, 429 318, 336-337, 610, 50 514 All intimate this regard, others, bounded relevant limitations Federal Constitution, high Accordingly, judgment reversed, remanded further inconsistent opinion. ordered. 26 Chief whom BLACKMUN joins, dissenting. 27 Landfill evaporates accumulates. governments expend capital develop trash efficient, lawful, protective environment. responsibly attempted enactment comprehensive applauded. included directed appropriate "based arrived compared 340-97-110(3) (1993).1 works increase $0.14 week typical producer.2 Brief 26-27, 16. This seems small price deposit your "garbage, rubbish, refuse .; sewage sludge, septic tank cesspool pumpings sludge; manure, dead animals, [and] infectious waste" neighbors. 459.005(27) 28 Nearly years protecting themselves noxious materials brought across borders. ago striking down $72 again, cranks dormant ratchet fees, doing ties hands addressing vexing national disposal. I dissent. 29 Americans nearly 196 million tons municipal 1990, 128 1975. Protection Agency, Characterization Municipal Solid States: 1992 Update, p. ES-3. current projections, will produce 222 garbage year 2000. Generating never problem. Finding environmentally safe sites has. 1991, estimated 45 percent Nation reached capacity. 56 Fed.Reg. 50980 stubbornly refuses acknowledge clean healthy environment, unthreatened improper commodity really issue this, see, ---- (REHNQUIST, dissenting), Gratiot Sanitary Landfill, Michigan Natural Resources, 2019, 139 (1992) 30 Notwithstanding identified notes "little difficulty," ante, operate designed offset loss available caused influx reaches nonchalant "to surcharge." Court's myopic "differential fees" ignores program paying, indirectly, numerous operators dumping 459.005 seq. 31 confirmed Nebraska ex rel. Douglas, enact system environmental threat confines context threatened water depletion, stated "[o]bviously, severe withdrawal discriminating seeks uncontrolled transfer State." 955-956, point "clean environment" cases: ability dispose effort promote environment," preventing 32 availability occur chance. Through scheme, inspects sites, monitors streams, promotes recycling, curb residents harm environment create problems unmonitored Depletion follow accept without sharing costs. abide outcome some indicia good publicly owned favor shortage." Sporhase, 957, us, comes accompanying hazards flowing acknowledged regulation promulgated 533, 662-663, 33 Far neutralizing situation producers, analysis turns head. neighbors competitive reckless abandon paying concomitant up retired sites. While understand article 2534-2535, sold marketplace; rather disposed do buy put landfills; petitioners take compete businesses alter product competing purchasers. anything, disadvantage businesses. They "nondisposal" associated waste: siting, clean-up, insurance cover accidents, transportation improvement shipped once 'the collection continue primarily function regional, agencies,' id., 621, 2534, quoting U.S.C. 6901(a)(4) (1976 Ed.), today leaves options: become dumper ship much possible populated dumpee, stoically densely 34 asserts "any reasons" Ante, disagree. sound strike me justifiable "safety health" rationales fee. back turn century, legitimate, nonarbitrary exercise protect safety. California Reduction Works, 306, 100, 204 (1905) (holding privilege company city county San Francisco void taking property householders public compensation); Gardner Michigan, 325, 106, 212 rights individuals subordinated owner suffers destruction he compensated therefor secured requiring destroyed). 35 exercising "needlessly obstruct[ing] trade attempt[ing] place isolation." 151, 2454, omitted) Maine's live serves indigenous fish population prevalent Quite contrary, part "retains integrity resources." Moreover, effective method consumption contexts. 4681, 4682 (1988 Ed., Supp. IV) (tax ozone-depleting chemicals); 4064 Ed. (gas guzzler excise Nothing change resource—landfill —was created regulated place. 36 sweeping ruling, makes privately rejects "user fee" apply private user "charge[s] state-owned state-provided facilities services." 2955, Rather stopping there, majority goes "it sustained such, given Evansville-Vanderburgh Airport Authority Dist. Delta Airlines, 405 707, 717, 92 1349, 1355-1356, 620 (1972). need dubious assertion. specifically unanswered 37 undoubtedly faced directly future receiving locally owned. Conservation Recovery Act, Subtitle D Study: Phase Report, table 4-2, 4-7 (Oct. 1986). South-Central Timber Development, Wunnicke, 82, 93, 2237, 2243, 71 (1984), acting market participant, regulator, places limitation activities." Similarly, operated park recreational facility, allowed users resource. Baldwin Fish Game Comm'n 436 371, 1852, 354 Montana's nonresident elk hunting license compensate conservation expenditures pay). More recently reasonableness Northwest Kent, 501 855, 127 183 (1994), precisely provided airport. relied Evansville, Evansville: 38 "At toll fair approximation use, neither nor comparison conferred, muster, formula reflect exactly relative individual users." 716-717, 1355. 39 think approximation" concedes precedents demand anything beyond "substantia[l] equivalen[cy]" ____ omitted). qualifies equivalent" Airlines Evansville. 40 begrudgingly "pay way," yet finds nominal exact "just escapes how average producer type "incidental commerce" endorsed majority. Even-handed pale, wonder what possibly contemplated stated: 41 "[I]n conflicting there residuum laws governing matters concern nevertheless measure affect even, extent, it." Hunt Apple Advertising 432 333, 350, 2434, 2445, 53 383 (1977), Southern Pacific Arizona Sullivan, 325 761, 767, 65 1515, 1519, 89 1915 (1945). Surely falls most crabbed definition "affect" "regulate." Today "residuum power" nullity. 43 prohibiting export States; asking see nothing compels low-cost grounds neighbors, suffering attendant risks present. otherwise, limits dwindling options contend environmental, health, safety, challenges posed modern society. 44 foregoing respectfully syllabus prepared Reporter Decisions convenience reader. Detroit Lumber 321, 282, 287, 499. defines "solid wastes" "all putrescible nonputrescible wastes, including garbage, refuse, ashes, paper cardboard; commercial, industrial, demolition construction wastes; discarded abandoned vehicles parts thereof; home industrial appliances; vegetable animal semisolid wastes." Hazardous 459.005(27)(a). currently $3.10 refer hereinafter refunded upheld, 92, here. Government Suppliers Consolidating Servs., Bayh, 975 F.2d 1267 cert. denied, 506 113 977, 122 131 dissent argues minimal expressly Post, reconcile novel understanding precedents, establish degree "measures extent discrimination" "is relevance determination discriminated 796, also, 760, 2136, (1981) ("We know unequal [a] [t]ax before discriminates"). fixed origin Record 665-690, consultant 731-732, 2120-2122, 2127. Of course, recover increased then "reason, apart why coming outside [State] treated differently." 2024, Mullaney Anderson, 342 415, 417, 72 428, 429, 96 (1952); Toomer Witsell, 334 399, 1156, 1163, 1460 (1948). terming 500, 508 (1993) (citing, example, (1972), cited text, cases, latter undisputed entities, plainly somehow 1355; 510 858, (1994) (A "does commerce"). respondents, like dissent, ignore likelihood portion well used reduction activities Furthermore, permitting charges forms "would allow anytime entities involved happened supported funds." F.2d, 1284. decline invitation expansive loophole carefully confined jurisprudence. prohibit action marketplace, description connection Metropolitan Life Ins. Ward, 470 869, 877, 105 1676, 1681, 84 751 (1985). Here, confront connected occasion validly accomplish "market participant" Alexandria Scrap Corp., 426 794, 806-810, 2488, 2496-2498, 49 220 (1976), unrelated commerce.1 composed following costs: $0.58—statewide improving management; $0.66—reimbursements credits subsidies; $0.05 certification plans; $0.72 liability; $0.20—lost capacity; $0.03—publicly infrastructure; $0.01 —nuisance impacts transportation. Pet. Cert. 93-108, 4. exceeds $1.40 One equals 2,000 pounds. Assuming hypothetical generates pounds month (1/10 nonresident's bill month.

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