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IV. The Hauling Industry and Public Policy . Industry Consolidation Since 1993, the solid waste management landscape has undergone major changes. U.S. Supreme Court decision in 1992 and 19941imited the ability of governments to regulate the management of waste, in particular, the regulation of where the waste would go. The result was an increase in the amount of Minnesota waste that went to less-expensive, out of state landfills. States, counties and local city governments began to see an erosion of slow, hard-won progress toward their goals of increased recycling, conservation and resource recovery. During the 1990s there was a major consolidation in the waste hauling industry, both nationally and in Minnesota. In Ranlsey and Washington County, mergers and acquisitions reduced the number of active licensed waste businesses operation in the two counties from 58 in 1995 to 45 in 1999. At the same time the industry sought "vertical integration," that is, ownership and control of all phases of waste flow, through the acquisition of landfills, transfer stations, and materials recovery facilities (recycling centers). This allowed large companies to internalize revenues and gain an even bigger advantage over smaller competitors. (I) In 1995, most hauling companies were locally owned and operated. But now, according to the Ranlsey/Washington County 2002 report, over 65% of the waste in the two counties is picked up by BFI, Waste Management and Onyx (Vivendi), three large international companies. (2) This means that the decisions about waste management, which used to be made locally, are now increasingly geared toward corporate goals. . In Falcon Heights the number of residential haulers is the same now as it was in 1990. Then, the most popular hauler by far was Woodlake, which was later bought out by BFL Of the remaining five, Waste Management and Gene's are still in operation. Walters was in operation, but it was an earlier incarnation of the company that was also sold to one of the large national companies. The present Walter's Refuse and Recycling was started up five years later by members of the same family. Poor Richard's and Wiley's, both local companies, were gone by 1995. (3) There is no reason to snppose this consolidation process will not continue, with or without organized collection. "It should be noted that small waste collection companies, as with nearly any small business, consolidate, go out of business, or buy and sell without the impetus of organized collection." ("Organized Collection Study," City of Eagan, February, 1988, prepared by Pope-Reid Associates) Many residents of Falcon Heights have expressed concern about the dominance of the industry by large corporations that have no local accountability. Concern for local companies has been given as a reason not to implement organized collection. But keeping an open system will not save these companies from going out of business, or dissuade them ii'om selling out to a competitor when they choose to. On the other hand, . City of Falcon Heights Final Report on Organized Collection October 13, 2004 24