Waste Management 2007 Annual Report Download - page 47

waste may seek to regulate movement of hazardous materials in areas not otherwise preempted by federal
law.
There are also various state or provincial and local regulations that affect our operations. Sometimes states’
regulations are stricter than federal laws and regulations when not otherwise preempted by federal law. Addi-
tionally, our collection and landfill operations could be affected by legislative and regulatory measures requiring or
encouraging waste reduction at the source and waste recycling.
Various states have enacted, or are considering enacting, laws that restrict the disposal within the state of solid
waste generated outside the state. While laws that overtly discriminate against out-of-state waste have been found to
be unconstitutional, some laws that are less overtly discriminatory have been upheld in court. Additionally, certain
state and local governments have enacted “flow control” regulations, which attempt to require that all waste
generated within the state or local jurisdiction be deposited at specific sites. In 1994, the United States Supreme
Court ruled that a flow control ordinance that gave preference to a local facility that was privately owned was
unconstitutional, but in 2007 the Court ruled that an ordinance directing waste to a facility owned by the local
government was constitutional. In addition, from time to time, the United States Congress has considered
legislation authorizing states to adopt regulations, restrictions, or taxes on the importation of out-of-state or
out-of-jurisdiction waste. The United States Congress’ adoption of legislation allowing restrictions on interstate
transportation of out-of-state or out-of-jurisdiction waste or certain types of flow control or the adoption of
legislation affecting interstate transportation of waste at the state level could adversely affect our operations.
Courts’ interpretation of flow control legislation or the Supreme Court decisions also could adversely affect our
solid waste management services.
Many states, provinces and local jurisdictions have enacted “fitness” laws that allow the agencies that have
jurisdiction over waste services contracts or permits to deny or revoke these contracts or permits based on the
applicant or permit holder’s compliance history. Some states, provinces and local jurisdictions go further and
consider the compliance history of the parent, subsidiaries or affiliated companies, in addition to the applicant or
permit holder. These laws authorize the agencies to make determinations of an applicant or permit holder’s fitness to
be awarded a contract to operate, and to deny or revoke a contract or permit because of unfitness, unless there is a
showing that the applicant or permit holder has been rehabilitated through the adoption of various operating policies
and procedures put in place to assure future compliance with applicable laws and regulations.
See Notes 3 and 10 to the Consolidated Financial Statements for disclosures relating to our current assessments
of the impact of regulations on our current and future operations.
Item 1A. Risk Factors.
In an effort to keep our shareholders and the public informed about our business, we may make “forward-
looking statements.” Forward-looking statements usually relate to future events and anticipated revenues, earnings,
cash flows or other aspects of our operations or operating results. Forward-looking statements generally include
statements containing:
• projections about accounting and finances;
• plans and objectives for the future;
• projections or estimates about assumptions relating to our performance; and
• our opinions, views or beliefs about the effects of current or future events, circumstances or performance.
You should view these statements with caution. These statements are not guarantees of future performance,
circumstances or events. They are based on facts and circumstances known to us as of the date the statements are
made. All phases of our business are subject to uncertainties, risks and other influences, many of which we do not
control. Any of these factors, either alone or taken together, could have a material adverse effect on us and could
change whether any forward-looking statement ultimately turns out to be true. Additionally, we assume no
obligation to update any forward-looking statement as a result of future events, circumstances or developments. The
following discussion should be read together with the Consolidated Financial Statements and the notes thereto.
Outlined below are some of the risks that we believe could affect our business and financial statements for 2008 and
beyond. These are not the only risks that we face. There may be other risks that we do not presently know or that we
currently believe are immaterial that could also impair our business and financial position.
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