Pollution Control Financing Authority v. County of Somerset

735 A.2d 633, 324 N.J. Super. 391
CourtNew Jersey Superior Court Appellate Division
DecidedAugust 27, 1999
StatusPublished
Cited by1 cases

This text of 735 A.2d 633 (Pollution Control Financing Authority v. County of Somerset) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pollution Control Financing Authority v. County of Somerset, 735 A.2d 633, 324 N.J. Super. 391 (N.J. Ct. App. 1999).

Opinion

The opinion of the court was delivered by

BROCHIN, J.A.D.

Plaintiff Pollution Control Financing Authority of Warren County (PCFA) is an agency established by Warren County pursuant to the New Jersey Pollution Control Financing Law, N.J.S.A. 40:37C-1 to -18. PCFA financed, arranged for the construction of, and now owns a waste incinerator and landfill in Warren County, New Jersey. Plaintiff Warren Energy Resource Co. (WERC) is a private corporation which operates the incinerator under contract with PCFA. Defendant Bridgewater Resources, Inc. (BRI) is a licensed operator of a solid waste transfer station [396]*396and a waste hauler which delivered Somerset County solid waste to the PCFA incinerator. PCFA and WERC appeal from a final judgment entered May 27, 1998, which incorporates prior orders for summary judgment and an order denying reconsideration. These orders were entered in favor of Somerset County and BRI relieving those defendants from any further obligation to deliver solid waste to the PCFA incinerator or pay for failing to deliver it.

By an “Interdistrict Agreement” dated January 17, 1990, between PCFA and Somerset County, Somerset County promised to cause 1,400 tons a week of solid waste generated within the county to be delivered to PFCA’s incinerator and to pay for the processing of that quantity of solid waste, whether delivered or not. The summary judgment in favor of Somerset County declares that this agreement is “void and unenforceable as a matter of law” and that Somerset County is excused from its further performance as of November 10,1997.

BRI was not a party to the 1990 Interdistrict Agreement, although it was a party to 1992 and 19942 supplements to that agreement. Those supplements provided for the delivery of additional quantities of solid waste in excess of 1,400 tons a week to the PCFA incinerator to make up for failures to satisfy the delivery quota during prior years. The parties have disagreed about whether those supplements made BRI a party to the 1990 agreement. But whether or not BRI was a party to the inter-district agreement, it was subject to the Somerset County solid waste management plan, reflected in DEP regulation N.J.A.C. 7:26 — 6.5(s)(3) (repealed), because BRI was a regulated waste hauler and transfer station operator. The terms of that regulation obligated it to transport “[u]p to 1,400 tons per week of processi-ble solid waste generated within Somerset County ... from the Bridgewater Resources, Inc. Transfer Station to the Warren County Resource Recovery Facility....” The order for summary [397]*397judgment entered in favor of BRI declares that BRI “has no further obligation to deliver waste” to PCFA and WERC. The final judgment also makes it clear that BRI is not liable for failure to comply with the provision of an agreement for partial settlement which declares that a prior court order requiring BRI to continue delivery of solid waste “will remain in effect unless and until vacated or modified by the Court,” and the court declined to hold BRI in contempt of the subsequently vacated order.

The orders for summary judgment which are the subject of this appeal are based on the Commerce Clause jurisprudence enunciated by the United States Supreme Court in C & A Carbone, Inc. v. Town of Clarkstown, 511 U.S. 383, 114 S.Ct. 1677, 128 L.Ed.2d 399 (1994) (“Carbone”). The Third Circuit Court of Appeals interpreted Carbone and applied it to the New Jersey solid waste management system in Atlantic Coast Demolition & Recycling, Inc. v. Board of Chosen Freeholders of Atlantic County, 48 F.3d 701 (3d Cir.1995) (“Atlantic Coast 1”), and Atlantic Coast Demolition & Recycling, Inc. v. Board of Chosen Freeholders of Atlantic County, 112 F.3d 652 (3d Cir.1997) (“Atlantic Coast II”), cert. denied, - U.S. -, 118 S.Ct. 412, 413, 139 L.Ed.2d 316 (1997), amended, 135 F.2d 891 (3d Cir.1998). The United States District Court for the District of New Jersey interpreted and applied the Atlantic Coast cases in Union County Utilities Authority v. Bergen County Utilities Authority, 995 F.Supp. 506 (D.N.J.1998). In order to explain our decision in the present case, we need to review the opinions in those cases.

These are the facts of Carbone. Pursuant to a consent decree entered into by the town of Clarkstown and the New York State Department of Environmental Conservation, Clarkstown agreed to close its landfill and to build a new solid waste transfer station on the site that had been occupied by the landfill. The transfer station would receive bulk solid waste and would separate recyclable from non-recyclable waste. Non-recyclable waste would be shipped from the transfer station to a landfill or incinerator. A local contractor agreed to construct the transfer station, to oper[398]*398ate it for five years, and then to sell it to the town for one dollar. The contractor would recover the costs of construction and operation of the transfer station by charging a “tipping fee” of $81 a ton to be paid by haulers of delivered waste. To ensure that the contractor would collect tipping fees sufficient to pay the costs they were planned to cover, the town guaranteed that 120,000 tons a year of solid waste would be delivered to the transfer station. To implement that guaranty, the town adopted a “flow control” ordinance which required all solid waste collected within the town to be taken to that particular transfer station. Refuse collectors other than the town’s contractor could collect waste within the town, but they had to deliver it to that transfer station and to pay the $81 a ton tipping fee, even though their waste was already sorted, and they were prohibited from shipping waste out of the town. Carbone, a refuse collector that had a competing transfer station in the municipality, challenged the flow control ordinance.

The Supreme Court held that Clarkstown’s flow control ordinance burdened interstate commerce and impeded its free flow. However, “[t]he real question,” according to the Court, was “whether the flow control ordinance is valid despite its undoubted effect on interstate commerce,” 511 U.S. at 389, 114 S.Ct. at 1682, 128 L.Ed.2d at 407, either because “the ordinance discriminates against interstate commerce [citing City of Philadelphia v. New Jersey, 437 U.S. 617, 624, 98 S.Ct. 2531, 2535, 57 L.Ed.2d 475, 481-82 (1978) ]” or because it “imposes a burden on interstate commerce that is ‘clearly excessive in relation to the putative local benefits’ [citing Pike v. Bruce Church, Inc., 397 U.S. 137, 142, 90 S.Ct. 844, 847, 25 L.Ed.2d 174, 178 (1970) ].” 511 U.S. at 390, 114 S.Ct. at 1682, 128 L.Ed.2d at 407. The Court ruled that, like any other law that sought to permit only local processors to process locally produced materials, the ordinance discriminated against interstate commerce because it “allows only the favored operator to process waste that is within the limits of the town.” Ibid. Such “[discrimination against interstate commerce in favor of local business or investment is per se invalid, save in a narrow class of cases in which the municipality can demonstrate, under [399]*399rigorous scrutiny, that it has no other means to advance a legitimate local interest.” Id.

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Bluebook (online)
735 A.2d 633, 324 N.J. Super. 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pollution-control-financing-authority-v-county-of-somerset-njsuperctappdiv-1999.