The pollution control bond

THE COMPARATIVELY RECENT ENTRANCE OF THE POLLUTION CONTROL BOND (PCB) AS AN INDUSTRIAL DEBT INSTRUMENT TO FINANCE POLLUTION HAS CAUSED IN THE INVESTMENT COMMUNITY, ITS MARKETING PROBLEMS, AND THE IRS RESTRICTIONS ON ITS TAX EXEMPT STATUS, ARE DISCUSSED. FOR THE LARGER COMPANY, WITH EST MASSIVE CLEANUP JOB, THE PCB IS THE CHEAPEST MONEY AROUND. THE WIDELY OFFERED INCENTIVES OF STATE PROPERTY EXEMPTIONS CAN ALSO GENERATE SUBSTANTIAL SAVINGS. THE ADVANTAGES OF A REGIONAL TREATMENT FACILITY, AS EXEMPLIFIED BY THE GULF COAST WASTE DISPOSAL AUTHORITY, SERVICING 140 PLANTS ON THE HOUSTON SHIP CHANNEL, ARE THAT THEY CAN SHIFT POLLUTION CONTROL RESPONSIBILITY TO A PUBLIC AGENCY RESULTING IN IMMUNITY FROM PROSECUTION; COMPANIES CAN ALSO ENJOY A 10 TO 25% COST SAVING ACCRUING FROM ECONOMIES OF SCALE AS WELL AS TAX EXEMPT FINANCING AND EXCLUSION FROM PROPERTY TAXES ON THE FACILITY. THE OHIO WATER DEVELOPMENT AUTHORITY IS CITED AS AN EXAMPLE OF COMPREHENSIVE AND WELL DESIGNED LEGISLATION TO PROVIDE HELP TO BOTH INDUSTRIAL AND LOCAL GOVERNMENTAL AGENCY PROGRAMS. AMONG OTHER ASPECTS OF PCB FINANCING DISCUSSED, IS THE DICHOTOMY BETWEEN THE IRS POINT OF VIEW OF THE PCB TAX STATUS REGARDING RECYCLING OR RECLAIMING BYPRODUCTS AND EPA'S CONSERVATION OBJECTIVE. (SEE ALSO W76-09766) (AUEN-WISCONSIN)