COMMENTS ON FINANCING OF RAILROAD POLLUTION CONTROL PROJECTS

Restrictions imposed by Environmental Protection Agency on railroads to achieve noise abatement and pollution control have required costly installations at yards and other facilities. While individual projects do not warrant external financing, the total for all such installations on a large system does produce a need for long-term borrowing. Family Lines, for instance, was simultaneously working on such environmental installations at more than 30 yards and shops in six states with a total cost of over $50 million. The author explains how the expenditure of $6 million at three locations in the State of Georgia was funded. Three localities created development authorities as authorized by Georgia legislation for general welfare and industrial development, enabling them to sell tax-exempt bonds and lend the proceeds of such sale to the railroads involved. This municipal borrowing was then guaranteed by modifying the railroad mortgages, although it is suggested that a better legal procedure would be a simple railroad guarantee of the authorities' revenue bonds.

  • Corporate Authors:

    Association Interstate Commerce Comm Practitioner

    1112 ICC Building, 12th Street & Constitution Avenue, NW
    Washington, DC  USA  20423
  • Authors:
    • Cremins, J S
  • Publication Date: 1979-11

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00334288
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 12 1981 12:00AM