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Covanta Energy Extends Partnership With Bristol Municipalities for Sustainable Waste Disposal
20 Year Agreement for Waste Disposal and Services Including Recycling, e-Waste and Organics

BRISTOL, CT -- (Marketwire) -- 12/26/12 -- Covanta Energy Corporation (NYSE: CVA), a world leader in sustainable waste management and renewable energy, today announced a new 20 year agreement with municipalities in the Bristol, CT area. Covanta will provide sustainable waste disposal at the Bristol Resource Recovery Facility, in addition the agreement provides for bundled services including recycling, bulky waste disposal, e-waste recycling and the management of organics/composting.

The new agreement continues a long-term partnership between Covanta and the municipalities that make up the Bristol Resource Recovery Facility Operating Committee (BRRFOC) that began with the development and construction of the Bristol Resource Recovery Facility in 1988. The existing "service fee" agreement will end June 30, 2014 at which time the new "tip fee" agreement will commence. Under the new agreement, the BRRFOC municipalities will supply approximately half of the facility's waste disposal capacity.

The Bristol Resource Recovery Facility processes approximately 650 tons of municipal solid waste per day into 16 megawatts of clean, renewable electricity -- enough to power approximately 10,000 homes. Energy-from-Waste facilities like Covanta Bristol complement recycling efforts and reduce greenhouse gases by avoiding methane from landfills, offsetting greenhouse gases from fossil fuel electrical production and recycling metals.

Below are comments and reactions to the new agreement and long-term partnership by BRRFOC members.

Bristol Mayor Art Ward
"This partnership with Covanta continues the long-established collaborative effort to efficiently provide environmentally-responsible services to the communities belonging to the present BRRFOC -- Bristol Resource Recovery Facility Operating Committee. Covanta has been a tremendous community partner and the City of Bristol looks forward to continuing our long term relationship."

New Britain Mayor Timothy O'Brien
"The people of New Britain and the region will see long-term benefits from this partnership with Covanta and the other municipalities. I'm particularly pleased that we will continue to manage our waste sustainably and look forward to future enhancements of the system."

Southington Town Manager Garry Brumback
"As a founding member of the BRRFOC and with the best interest of our citizens at the forefront, Southington, behind the leadership of John Weichsel, is proud to continue this relationship for the next 20 years with these other great communities and Covanta."

Berlin Town Manager Denise McNair
"The last 25 years have been an excellent example of various and diverse communities working together for the betterment of their towns. The fact that most people are completely unaware of what happens to their trash once it leaves their front yard is a testament to how well things are run by Covanta. It makes our jobs that much easier to have a large issue like waste management handled so well."

Wolcott Mayor Tom Dunn
"It's rare that this many entities can work so well together and for this long on an important issue like sustainable waste disposal. Wolcott is proud to continue our successful partnership with the other BRRFOC communities and Covanta."

By including all facets of sustainable waste management in the bundled services agreement -- not just waste disposal -- the municipalities will save money with stable, predictable rates over the 20 year life of the agreement. Covanta will also provide educational outreach funds to the municipalities to be used for a variety of projects including hazardous household waste collections and energy-from-waste and recycling education programs.

"When considering their options for the future, the communities performed a considerable amount of due diligence and we're very pleased they selected Covanta to provide the sustainable waste management services they seek. Everyone involved in this project has enjoyed the benefits of our long standing relationship and we look forward to continuing and expanding our win-win partnership over the next twenty years," said Stephen Diaz, Covanta Energy vice president and regional business manager.

For more information on Covanta Bristol, please visit, http://www.covantaenergy.com/facilities/facility-by-location/bristol.aspx.

About Covanta
Covanta Energy Corporation is an internationally recognized owner and operator of Energy-from-Waste and renewable energy projects and a recipient of the Energy Innovator Award from the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy. Covanta's 44 Energy-from-Waste facilities provide communities with an environmentally sound solution to their solid waste disposal needs by using that municipal solid waste to generate clean, renewable energy. Annually, Covanta's modern Energy-from-Waste facilities safely and securely convert approximately 20 million tons of waste into 9 million megawatt hours of clean renewable electricity and approximately 9 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaenergy.com.

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