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U.S. Department of Energy
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Innovative financing plans for privately owned waste-to-energy facilities: Volume 1, Financial options and analyses

Technical Report ·
DOI:https://doi.org/10.2172/5955848· OSTI ID:5955848
The primary objective of this project is to focus on innovative financing for large public purpose projects such as the SANDER facility. The focus of this report is on financing a waste-to-energy project, however the information gathered will be useful to many other types of projects. The concept behind this project is that various financing options and plans are available to local government. Public ownership may be most familiar to local government planners. Today, however, tax law allows cash benefits to tax paying corporations for certain types of projects. These tax benefits are so substantial that private firms are often willing to share a portion of these benefits with project proponents. In the case of public purpose projects this sharing of tax benefits may reduce the cost of the project below that of a publicly owned project. This report examines the variety of factors to be analyzed prior to concluding a financing plan. For instance, a public entity should be concerned with the project risks and their assignment between an agency and a corporation. An agency must understand the tax benefits available in order to understand their impact on project economics. Research in this project focused on the factors relative to structuring and comparing various innovative financing plans. A computer model was designed to aid public agencies in evaluating bonding requirements, construction and operating costs, energy revenue, interest costs, tax benefits and effects of inflation on costs. 8 tabs.
Research Organization:
Urban Consortium for Technology Initiatives (USA). Energy Task Force
DOE Contract Number:
FG02-78IR05106
OSTI ID:
5955848
Report Number(s):
DOE/IR/05106-T86; ON: DE89013850
Country of Publication:
United States
Language:
English