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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- OREGON WASTE SYSTEMS, INC. v. DEPARTMENT
- OF ENVIRONMENTAL QUALITY OF THE
- STATE OF OREGON et al.
- certiorari to the supreme court of oregon
- No. 93-70. Argued January 18, 1994-Decided April 4, 1994
-
- Oregon imposes a $2.50 per ton surcharge on the in-state disposal of
- solid waste generated in other States and an $0.85 per ton fee on
- the disposal of waste generated within Oregon. Petitioners sought
- review of the out-of-state surcharge in the State Court of Appeals,
- challenging the administrative rule establishing the surcharge and
- its enabling statutes under, inter alia, the Commerce Clause. The
- court upheld the statutes and rule, and the State Supreme Court
- affirmed. Despite the Oregon statutes' explicit reference to out-of-
- state waste's geographical location, the court reasoned, the sur-
- charge's express nexus to actual costs incurred by state and local
- government rendered it a facially constitutional ``compensatory
- fee.''
- Held: Oregon's surcharge is facially invalid under the negative
- Commerce Clause. Pp. 5-16.
- (a) The first step in analyzing a law under the negative Com-
- merce Clause is to determine whether it discriminates against, or
- regulates evenhandedly with only incidental effects on, interstate
- commerce. If the restriction is discriminatory-i.e., favors in-state
- economic interests over their out-of-state counterparts-it is virtu-
- ally per se invalid. By contrast, nondiscriminatory regulations are
- valid unless the burden imposed on interstate commerce is ``clearly
- excessive in relation to the putative local benefits.'' Pike v. Bruce
- Church, Inc., 397 U. S. 137, 142. Oregon's surcharge is obviously
- discriminatory on its face. It subjects waste from other States to
- a fee almost three times greater than the charge imposed on in-
- state waste, and the statutory determinant for whether the fee
- applies is whether or not the waste was generated out of state.
- The alleged compensatory aim of the surcharge has no bearing on
- whether it is facially discriminatory. See Chemical Waste Manage-
- ment, Inc. v. Hunt, 504 U. S. ___, ___. Pp. 5-7.
- (b) Because the surcharge is discriminatory, the virtually per se
- rule of invalidity-not the Pike balancing test-provides the proper
- legal standard for these cases. Thus, the surcharge must be
- invalidated unless respondents can show that it advances a legiti-
- mate local purpose that cannot be adequately served by reasonable
- nondiscriminatory alternatives. Neither of respondents' justifica-
- tions passes strict scrutiny. For the surcharge to be justified as a
- ``compensatory tax'' necessary to make shippers of out-of-state
- waste pay their ``fair share'' of disposal costs, it must be the rough
- equivalent of an identifiable and substantially similar surcharge on
- intrastate commerce. However, respondents have failed to identify
- a specific charge on intrastate commerce equal to or exceeding the
- surcharge; the $0.85 per ton fee on in-state waste is only about
- one-third of the challenged surcharge. Even assuming that vari-
- ous other means of general taxation, such as state income taxes,
- could serve as a roughly equivalent intrastate burden, respondents'
- argument fails because the levies are not imposed on substantially
- equivalent events: Taxes on earning income and utilizing Oregon
- landfills are entirely different kinds of taxes. Nor can the sur-
- charge be justified by respondents' argument that Oregon has a
- valid interest in spreading the costs of the disposal of Oregon
- waste, but not out-of-state waste, to all Oregonians. Because
- Oregon's scheme necessarily results in shippers of out-of-state
- waste bearing the full costs of disposal with shippers of Oregon
- waste bearing less than the full cost, it necessarily incorporates an
- illegitimate protectionist objective. Wyoming v. Oklahoma, 502
- U. S. ___, ___. Recharacterizing the surcharge as ``resource pro-
- tectionism''-discouraging the importation of out-of-state waste in
- order to conserve more landfill space for in-state waste-hardly
- advances respondents' cause. A State may not accord its own
- inhabitants a preferred right of access over consumers in other
- States to its natural resources. Philadelphia v. New Jersey, 437
- U. S. 617, 627. Sporhase v. Nebraska, 458 U. S. 941, distin-
- guished. Pp. 7-15.
- 316 Ore. 99, 849 P. 2d 500, reversed and remanded.
- Thomas, J., delivered the opinion of the Court, in which Stevens,
- O'Connor, Scalia, Kennedy, Souter, and Ginsburg, JJ., joined.
- Rehnquist, C. J., filed a dissenting opinion, in which Blackmun, J.,
- joined.
-