Lead Opinion
delivered the opinion of the Court.
Alabama imposes a hazardous waste disposal fee on hazardous wastes generated outside the State and disposed of at a commercial facility in Alabama. The fee does not apply to such waste having a source in Alabama. The Alabama
I
Petitioner, Chemical Waste Management, Inc., a Delaware corporation with its principal place of business in Oak Brook, Illinois, owns and operates one of the Nation’s oldest commercial hazardous waste land disposal facilities, located in Emelle, Alabama. Opened in 1977 and acquired by petitioner in 1978, the Emelle facility is a hazardous waste treatment, storage, and disposal facility operating pursuant to permits issued by the Environmental Protection Agency (EPA) under the Resource Conservation and Recovery Act of 1976 (RCRA), 90 Stat. 2795, as amended, 42 U. S. C. §6901 et seq., and the Toxic Substances Control Act, 90 Stat. 2003, as amended, 15 U. S. C. § 2601 et seq. (1988 ed. and Supp. II), and by the State of Alabama under Ala. Code § 22 — 30—12(i) (1990). Alabama is 1 of only 16 States that have commercial hazardous waste landfills, and the Emelle facility is the largest of the 21 landfills of this kind located in these 16 States. Brief for National Governors’ Assn, et al. as Amici Curiae 3, citing E. Smith, El Digest 26-27 (Mar. 1992).
The parties do not dispute that the wastes and substances being landfilled at the Emelle facility “include substances that are inherently dangerous to human health and safety and to the environment. Such waste consists of ignitable, corrosive, toxic and reactive wastes which contain poisonous and cancer causing chemicals and which can cause birth defects, genetic damage, blindness, crippling and death.”
Against this backdrop Alabama enacted Act No. 90-326 (Act). Ala. Code §§22-30B-1 to 22-30B-18 (1990 and Supp. 1991). Among other provisions, the Act includes a “cap” that generally limits the amount of hazardous wastes or substances
“For waste and substances which are generated outside of Alabama and disposed of at a commercial site forthe disposal of hazardous waste or hazardous substances in Alabama, an additional fee shall be levied at the rate of $72.00 per ton.” § 22-30B-2(b).
Petitioner filed suit in state court requesting declaratory relief against respondents and seeking to enjoin enforcement of the Act. In addition to state-law claims, petitioner contended that the Act violated the Commerce, Due Process, and Equal Protection Clauses of the United States Constitution, and was pre-empted by various federal statutes. The trial court declared the base fee and the cap provisions of the Act to be valid and constitutional; but, finding the only basis for the additional fee to be the origin of the waste, the trial court declared it to be in violation of the Commerce Clause. App. to Pet. for Cert. 83a-88a. Both sides appealed. The Alabama Supreme Court affirmed the rulings concerning the base fee and cap provisions but reversed the decision regarding the additional fee. The court held that the fee at issue advanced legitimate local purposes that could not be adequately served by reasonable nondiscriminatory alternatives and was therefore valid under the Commerce Clause.
Chemical Waste Management, Inc., petitioned for writ of certiorari, challenging all aspects of the Act. Because of the importance of the federal question and the likelihood that it had been decided in a way conflicting with applicable decisions of this Court, this Court’s Rule 10.1(c), we granted certiorari limited to petitioner’s Commerce Clause challenge to the additional fee.
II
No State may attempt to isolate itself from a problem common to the several States by raising barriers to the free flow
“‘[T]he evil of protectionism can reside in legislative means as well as legislative ends. Thus, it does not matter whether the ultimate aim of ch. 363 is to réduce the waste disposal costs of New Jersey residents or to save remaining open lands from pollution, for we assume New Jersey has every right to protect its residents’pocketbooks as well as their environment. And it may be assumed as well that New Jersey may pursue those ends by slowing the flow of all waste into the State’s remaining landfills, even though interstate commerce may incidentally be affected. But whatever New Jersey’s ultimate purpose, it may not be accompanied by discriminating against articles of commerce coming from outside the State unless there is some reason, apart from their origin, to treat them differently. Both on its face and in its plain effect, ch. 363 violates this principle of nondiscrimination.
“ ‘The Court has consistently found parochial legislation of this kind to be constitutionally invalid, whether. the ultimate aim of the legislation was to assure a steady supply of milk by erecting barriers to allegedly ruinous outside competition, Baldwin v. G. A. F. Seelig, Inc., 294 U. S. [511,] 522-524 [(1935)]; or to create jobs by keeping industry within the State, Foster-Fountain Packing Co. v. Haydel,278 U. S. 1 , 10 [(1928)]; Johnson v. Haydel,278 U. S. 16 [(1928)]; Toomer v. Witsell, 334 U. S. [385,] 403-404 [(1948)]; or to preserve the State’s financial resources from depletion by fencing out indigent immigrants, Edwards v. California,314 U. S. 160 , 173-174 [(1941)].’ ” Fort Gratiot Sanitary Landfill, post, at 360 (quoting Philadelphia v. New Jersey, supra, at 626-627).
To this list may be added cases striking down a tax discriminating against interstate commerce, even where such tax was designed to encourage the use of ethanol and thereby reduce harmful exhaust emissions, New Energy Co. of Ind. v. Limbach,
The Act’s additional fee facially discriminates against hazardous waste generated in States other than Alabama, and the Act overall has plainly discouraged the full operation of petitioner’s Emelle facility.
The State, however, argues that the additional fee imposed on out-of-state hazardous waste serves legitimate local purposes related to its citizens’ health and safety. Because the additional fee discriminates both on its face and in practical effect, the burden falls on the State “to justify it both in terms of the local benefits flowing from the statute and the unavailability of nondiscriminatory alternatives adequate to preserve the local interests at stake.” Hunt v. Washington State Apple Advertising Comm’n,
The State’s argument here does not significantly differ from the Alabama Supreme Court’s conclusions on the legitimate local purposes of the additional fee imposed, which were:
“The Additional Fee serves these legitimate local purposes that cannot be adequately served by reasonable nondiscriminatory alternatives: (1) protection of the health and safety of the citizens of Alabama from toxic substances; (2) conservation of the environment and the state’s natural resources; (3) provision for compensatory revenue for the costs and burdens that out-of-state waste generators impose by dumping their hazardous waste in Alabama; (4) reduction of the overall flow of wastes traveling on the state’s highways, which flow creates a great risk to the health and safety of the state’s citizens.”584 So. 2d, at 1389 .
These may all be legitimate local interests, and petitioner has not attacked them. But only rhetoric, and not explanation, emerges as to why Alabama targets only interstate hazardous waste to meet these goals. As found by the trial court, “[although the Legislature imposed an additional fee of $72.00 per ton on waste generated outside Alabama, there
Ultimately, the State’s concern focuses on the volume of the waste entering the Emelle facility.
Our decisions regarding quarantine laws do not counsel a different conclusion.
“In the exercise of its police powers, a State may exclude from its territory, or prohibit the sale therein of any articles which, in its judgment, fairly exercised, are prejudicial to the health or which would endanger the lives or property of its people. But if the State, under the guise of exerting its police powers, should make such exclusion or prohibition applicable solely to articles, of that kind, that may be produced or manufactured in other States, the courts would find no difficulty in holding such legislation to be in conflict with the Constitution of the United States.”
See also Reid v. Colorado,
Maine v. Taylor,
Ill
The decision of the Alabama Supreme Court is reversed, and the cause is remanded for proceedings not inconsistent with this opinion, including consideration of the appropriate relief to petitioner. See McKesson Corp. v. Division of Alcoholic Beverages and Tobacco, Fla. Dept. of Business Regu
So ordered.
Notes
As used in RCRA, 42 U. S. C. § 6903(5), the term “hazardous waste” means:
“a solid waste, or combination of solid wastes, which because of its quantity, concentration, or physical, chemical, or infectious characteristics may—
“(A) cause, or significantly contribute to an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; or
“(B) pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed.”
RCRA directs the EPA to establish a comprehensive “cradle to grave” system regulating the generation, transport, storage, treatment, and disposal of hazardous wastes, §§6921-6939b, which includes identification and listing of hazardous wastes, § 6921. At present, there are more than 600 such listed wastes. See 40 CFR pt. 261, subpt. D (1991).
“Hazardous substance(s)” and “hazardous waste(s)” are defined terms in the Act, §§ 22-30B-1(3) and 22-30B-1(4), but these definitions largely parallel the meanings given under federal law.
The Alabama Supreme Court assumed that the disposal of hazardous waste constituted an article of commerce, and the State does not explicitly argue here to the contrary. In Fort Gratiot Sanitary Landfill, Inc. v. Michigan Dept. of Natural Resources, post, at 359, we have reaffirmed the idea that “[s]olid waste, even if it has no value, is an article of commerce.” As stated in Philadelphia v. New Jersey,
The Act went into effect July 15, 1990. The volume of hazardous waste buried at the Emelle facility fell dramatically from 791,000 tons in 1989 to 290,000 tons in 1991.
To some extent the State attempts to avail itself of the more flexible approach outlined in, e. g., Brown-Forman Distillers Corp. v. New York State Liquor Authority,
The Alabama Supreme Court found no “economic protectionism” here, and thus purported to distinguish Philadelphia v. New Jersey, based on its conclusions that the legislature was motivated by public health and environmental concerns.
“The risk created by hazardous waste and other similarly dangerous waste materials is proportional to the volume of such waste materials present, and may be controlled by controlling that volume.” Brief for Respondents 38 (citation omitted; emphasis in original).
The State asserts: “An equal fee, at any level, would necessarily fail to serve the State’s purpose. An equal fee high enough to provide any significant deterrent to the importation of hazardous waste for landfilling in the State would amount to an attempt by the State to avoid its responsibility to deal with its own problems, by tending to cause in-state waste to be exported for disposal. An equal fee not so high as to amount to an attempt to force Alabama’s own problems to be borne by citizens of other states would fail to provide any significant reduction in the enormous volumes of imported hazardous waste being dumped in the State. At the point where an equal fee would become effective to serve the State’s purpose in protecting public health and the environment from uncontrolled volumes of imported waste, that equal fee would also become an avoidance of the State’s responsibility to deal with its own waste problems.” Id., at 46. These assertions are without record support and in any event do not suffice to validate plain discrimination against interstate commerce. See New Energy Co. of Ind. v. Limbach,
The State presents no argument here, as it did below, that the additional fee makes out-of-state generators pay their “fair share” of the costs of Alabama waste disposal facilities, or that the additional fee is justified as a “compensatory tax.” The trial court rejected these arguments, App. to Pet. for Cert. 88a, n. 6., finding the former foreclosed by American Trucking Assns., Inc. v. Scheiner,
The State collects and refers to the following decisions, inter alia, as “quarantine cases”: Clason v. Indiana,
“The hostility is to the thing itself, not to merely interstate shipments of the thing; and an undiscriminating hostility is at least nondiscriminatory. But that is not the case here. The State of Illinois is quite willing to allow the storage and even the shipment for storage of spent nuclear fuel in Illinois, provided only that its origin is intrastate.” Illinois v. General Elec. Co.,
Dissenting Opinion
dissenting.
I have already had occasion to set out my view that States need not ban all waste disposal as a precondition to protecting themselves from hazardous or noxious materials brought across the State’s borders. See Philadelphia v. New Jersey,
Taxes are a recognized and effective means for discouraging the consumption of scarce commodities — in this case the safe environment that attends appropriate disposal of hazardous wastes. Cf. 26 U. S. C. §§4681, 4682 (1988 ed., Supp. Ill) (tax on ozone-depleting chemicals); 26 U. S. C. § 4064 (gas guzzler excise tax). I therefore see nothing unconstitutional in Alabama’s use of a tax to discourage the export of this commodity to other States, when the commodity is a public good that Alabama has helped to produce. Cf. Fort Gratiot, post, at 372 (Rehnquist, C. J., dissenting). Nor do I see any significance in the fact that Alabama has chosen to adopt a differential tax rather than an outright ban. Nothing in the Commerce Clause requires Alabama to adopt an “all or nothing” regulatory approach to noxious materials coming
In short, the Court continues to err by its failure to recognize that waste — in this case admittedly hazardous waste— presents risks to the public health and environment that a State may legitimately wish to avoid, and that the State may pursue such an objective by means less Draconian than an outright ban. Under force of this Court’s precedent, though, it increasingly appears that the only avenue by which a State may avoid the importation of hazardous wastes is to ban such waste disposal altogether, regardless of the waste’s source of origin. I see little logic in creating, and nothing in the Commerce Clause that requires us to create, such perverse regulatory incentives. The Court errs in substantial measure because it refuses to acknowledge that a safe and attractive environment is the commodity really at issue in cases such as this. See Fort Gratiot, post, at 369, n. (Rehnquist, C. J., dissenting). The result is that the Court today gets it exactly backward when it suggests that Alabama is attempting to “isolate itself from a problem common to the several States.” Ante, at 339. To the contrary, it is the 34 States that have no hazardous waste facility whatsoever, not to mention the remaining 15 States with facilities all smaller than Emelle, that have isolated themselves.
There is some solace to be taken in the Court’s conclusion, ante, at 344-345, that Alabama may impose a substantial fee on the disposal of all hazardous waste, or a per-mile fee on all vehicles transporting such waste, or a cap on total disposals at the Emelle facility. None of these approaches provide Alabama the ability to tailor its regulations in a way that the State will be solving only that portion of the problem that it has created. See Fort Gratiot, post, at 370-371 (Rehnquist, C. J., dissenting). But they do at least give Alabama some mechanisms for requiring waste-generating States to compensate Alabama for the risks the Court declares Alabama must run.
Other mechanisms also appear open to Alabama to achieve results similar to those that are seemingly foreclosed today. There seems to be nothing, for example, that would prevent Alabama from providing subsidies or other tax breaks to domestic industries that generate hazardous wastes. Or Alabama may, under the market participant doctrine, open its own facility catering only to Alabama customers. See, e. g., White v. Massachusetts Council of Constr. Employers, Inc.,
For the foregoing reasons, I respectfully dissent.
