Covanta Holding (CVA) 8-K Covanta Announces Recapitalization Plan

EXHIBIT 12.1

COVANTA HOLDING CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)

	PRO FORMA (1)				HISTORICAL (2)
	Nine Months Ended		Year Ended		Nine Months Ended		Year Ended December 31,
	September 30, 2006		December 31, 2005		September 30, 2006		2005		2004		2003			2002			2001
Earnings:
Income before income tax expense, minority interests and equity in net income from unconsolidated investments	$	141,616	$	132,349	$	102,043	$	77,565	$	35,474	$	(14,330	)	$	(27,000	)	$	(14,261	)
Fixed Charges		106,858		102,532		146,430		157,315		85,698		1,424			38,735			—
Capitalized Interest		—		—		—		—		—		—			—			—
Total Earnings	$	248,473	$	234,880	$	248,473	$	234,880	$	121,172	$	(12,906	)	$	11,735		$	(14,261	)
Fixed Charges:
Interest Expense	$	93,705	$	87,620	$	133,278	$	142,404	$	76,325	$	1,424		$	38,735		$	—
Imputed Interest on Operating Leases		13,152		14,911		13,152		14,911		9,373		—			—			—
Total Fixed Charges	$	106,858	$	102,532	$	146,430	$	157,315	$	85,698	$	1,424		$	38,735		$	—
Ratio of earnings to fixed charges		2.33		2.29		1.70		1.49		1.41		—			—			—

(1)	The pro forma ratio of earnings to fixed charges assumes, as of January 1, 2005, the issuance of the Debentures, the closing of the New Credit Facilities and the repurchase of all of the Outstanding Notes.
(2)	Earnings for the fiscal years ended December 31, 2003 and 2002 were insufficient to cover fixed charges by $14.3 million and $27.0 million, respectively. There were no fixed charges for the fiscal year ended December 31, 2001.