Commerce Clause Challenge To Maine Town's Waste Management Scheme
 
September 1, 1999
 

On April 26, in a case of first impression in the First Circuit, the Court of Appeals in Houlton Citizens' Coalition v. Town of Houlton, rejected a Commerce Clause challenge to the Maine town of Houlton's waste management plan. The town by contract designated a single firm as the exclusive hauler of residential waste within its borders and enacted a flow-control ordinance directing all such waste either to be collected by that firm or to be brought to its transfer station. The town's plan was challenged as violative of the Commerce Clause, the Takings Clause and the Contract Clause of the United States Constitution, as well as the town charter. The Federal District Court of Maine rejected these arguments, and the Court of Appeals affirmed.

In affirming, the appellate court focused upon the Commerce Clause challenge and the application of the so-called "dormant" Commerce Clause. The dormant Commerce Clause prevents state and local authorities from regulating areas in which Congress has the constitutional power to legislate "to regulate commerce," but has not affirmatively acted. As a result, if a state or locality enacts a law or other ordinance that unduly favors in-state commercial interests over their out-of-state counterparts, such law or ordinance will be struck down unless the "discrimination" can be shown to be unrelated to economic protectionism.

The court noted that similar ordinances had been struck down elsewhere as in violation of the dormant Commerce Clause. However, the Houlton ordinance was different than those found to be impermissible, because the Houlton ordinance gave all comers equal access to the local market. Because both in-state and out-of-state bidders are allowed to compete freely on a level playing field, there is no constitutional violation. The court noted that the town awarded the trash-hauling contract to the lowest bidder and did not restrict access to the bidding process to any particular class of bidders. In conclusion, the court held that the town ordinance's almost "invisible" burden on interstate commerce was outweighed by the strong local interest in efficient waste management.