Waste Industries USA, Inc. v. State

725 S.E.2d 875, 220 N.C. App. 163, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20094, 2012 WL 1512508, 2012 N.C. App. LEXIS 592
CourtCourt of Appeals of North Carolina
DecidedMay 1, 2012
DocketCOA11-246
StatusPublished
Cited by5 cases

This text of 725 S.E.2d 875 (Waste Industries USA, Inc. v. State) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waste Industries USA, Inc. v. State, 725 S.E.2d 875, 220 N.C. App. 163, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20094, 2012 WL 1512508, 2012 N.C. App. LEXIS 592 (N.C. Ct. App. 2012).

Opinion

GEER, Judge.

Plaintiffs Waste Industries USA, Inc. and Black Bear Disposal, LLC appeal the trial court’s grant of summary judgment in favor of defendants and defendant-intervenors. Plaintiffs primarily argue that N.C. Gen. Stat. § 130A-295.6 (2011), which placed limitations on the size and location of solid waste landfills, violates the Commerce Clause by discriminating against out-of-state waste.

It is undisputed that the legislation does not facially discriminate. In addition, the General Assembly, in the session law, set out in detail the purposes of the legislation, none of which in any way suggest an intent to discriminate against out-of-state waste. In the face of (1) these articulated objectives, (2) the State’s long-time policy against expansion of landfills, (3) the State’s failure, a year prior to enactment of the challenged legislation, to meet the State’s statutorily-mandated goal for reduction of landfill use, and (4) the General Assembly’s receipt, after that failure, of extensive information regarding the importance of size and location restrictions on landfills to public health, the environment, environmental justice, and financial security, plaintiffs presented only sparse evidence that the General Assembly actually had a hidden purpose of blocking out-of-state waste. Plaintiffs point to a single remark by one legislator, the presence of senators at a meeting where out-of-state waste was men *165 tioned, and few comments by unnamed legislators in unknown contexts and by mid-level State employees, most of which comments did not specifically relate to the challenged restrictions.

We hold that plaintiffs have failed to forecast sufficient evidence to override the General Assembly’s articulated objectives and that plaintiffs’ evidence of discriminatory effect shows effects on solid waste generally and not out-of-state waste in particular. Because plaintiffs have also failed to show that any incidental effects on out-of-state waste outweigh the benefits to the State, the trial court properly granted summary judgment to defendants and defendantintervenors on the Commerce Clause claim. Since we find plaintiffs’ arguments as to the other claims also unpersuasive, we affirm.

Facts

In 2002, Waste Industries was approached by developers from Virginia who owned land in Camden County, North Carolina. The developers were interested in locating a municipal solid waste landfill on their property. In September 2002, Waste Industries and Camden County entered into negotiations over a franchise agreement for a solid waste landfill. In October 2002, Waste Industries formed Black Bear Disposal, LLC (“Black Bear”), a wholly-owned subsidiary of Waste Industries, to build and operate the landfill.

N.C. Gen. Stat. § 130A-294(b) (2001) required plaintiffs to obtain a franchise agreement from the County prior to applying for a permit to operate a solid waste facility in North Carolina. On 21 October 2002, the Camden County Commissioners passed an ordinance awarding a franchise to Black Bear. The franchise agreement (1) required Black Bear to accept only waste as “allowed by the permit issued” by the State, (2) incorporated by reference the State’s solid waste management regulations, and (3) expressly allowed termination of the agreement upon failure of the State to issue a permit or upon changes in the statutes or regulations.

N.C. Gen. Stat. § 130A-294(a)(4)(a) required the North Carolina Department of Environmental and Natural Resources (“DENR”) to “[d]evelop a permit system governing the establishment and operation of solid waste management facilities.” A solid waste management facility permit has two parts: (1) a permit to construct the facility issued after “site and construction plans have been approved and it has been determined that the facility can be operated in accordance with the applicable rules set forth in this Subchapter”; and (2) a permit to operate the facility issued after demonstrated compliance with *166 the construction permit. N.C. Admin. Code tit. 15A, r. 13B.0201(b)(l), (2) (Sept. 2001).

In August 2004, Black Bear submitted a site study to DENR as required by N.C. Admin. Code tit. 15A, r. 13B.1618 (Sept. 2001), in order to obtain the necessary permit. Between August 2004 and April 2005, Black Bear made repeated additional submissions regarding the site study. DENR responded to the submissions by pointing out continued inadequacies and inconsistencies in the documentation of existing topography, surface water drainage patterns, high water table values, groundwater flow, drinking water wells, porosity values, facility acreage, landfill acreage, landfill height, and floodplain existence. According to DENR, issues still remained with the site study as of May 2005.

In addition, on 5 April 2005, DENR notified Waste Industries that Black Bear did not meet the financial assurance and responsibility requirements of N.C. Gen. Stat. § 130A-294(b2) (2005). On 3 February 2006, Waste Industries asked to be added as a co-applicant with Black Bear. DENR then requested additional information from Waste Industries and Black Bear on 16 March 2006 and on 25 May 2006.

On 27 July 2006, the General Assembly passed a one-year moratorium on new landfills:

There is hereby established a moratorium on consideration of applications for a permit and on the issuance of permits for new landfills in the State. The purposes of this moratorium are to allow the State to study solid waste disposal issues in order to protect public health and the environment. The Department of Environment and Natural Resources shall not consider a permit application nor issue a permit for a new landfill for the disposal of construction or demolition waste, municipal solid waste, or industrial solid waste for a period beginning on 1 August 2006 and ending on 1 August 2007.

2006 N.C. Sess. Laws ch. 244, § 2 (“the Moratorium”). The Moratorium did not affect landfills that had permits issued prior to 1 August 2006. Id. In the Moratorium legislation, the General Assembly noted eight areas requiring more study in order to update North Carolina’s solid waste laws. Id. at § 4(a).

On 16 April 2007, the Camden County Commissioners passed an ordinance that extended the required commencement date of landfill operation under plaintiffs’ franchise agreement from 4 November *167 2007 to 4 November 2012. The record does not indicate that any activity took place on plaintiffs’ application for a permit during the Moratorium.

At the end of the Moratorium, the General Assembly enacted legislation governing approval of solid-waste landfills, which included additional restrictions for landfills relating to buffers, height, capacity, and size. 2007 N.C. Sess. Laws ch. 550, § 9(a), as amended by 2007 N.C. Sess. Laws ch. 543, § 1(a). This legislation, codified in N.C. Gen. Stat. § 130A-295.6, provided in pertinent part:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Town of Beech Mountain v. Genesis Wildlife Sanctuary, Inc.
786 S.E.2d 335 (Court of Appeals of North Carolina, 2016)
Town of Beech Mountain v. Genesis Wildlife Sanctuary
Court of Appeals of North Carolina, 2016
PBK Holdings, LLC v. County of Rockingham
756 S.E.2d 821 (Court of Appeals of North Carolina, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
725 S.E.2d 875, 220 N.C. App. 163, 42 Envtl. L. Rep. (Envtl. Law Inst.) 20094, 2012 WL 1512508, 2012 N.C. App. LEXIS 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waste-industries-usa-inc-v-state-ncctapp-2012.