HAZARDOUS WASTE FACILITY FINANCING OPTIONS: CHOICES, LIMITATIONS ON USE.

It is apparent that federal regulation of hazardous waste disposal is not likely to diminish, even under a new Washington administration that is commited to less regulation. Thus the need for new capital is the critical issue now. The options available to both generators and waste disposal companies for financing new hazardous waste disposal facilities include the use of operating cash, issuance of bonds, tax-exempt industrial bonds, and project financing. Project financing was an innovative technique developed about a decade ago to meet the need for large scale energy-related projects requiring vast capital outlays and prolonged construction periods. Because a large-scale regional waste disposal facility is comparable in scope to these energy resource projects, this type of financing becomes possible. If the participants can meet the basic credit criteria, the next test is the credibility to investors of three aspects of the project: the facility, the users or customers and the relationship between the facility and the users. Considerations pertaining to each of these aspects are discussed in the article.