Exhibit 23.1


                          INDEPENDENT AUDITORS' CONSENT


We consent to the incorporation by reference in Registration Statement No.
333-39144 of Danielson Holding Corporation on Form S-3 of our report dated March
26, 2004, relating to the consolidated financial statements of Covanta Energy
Corporation (Debtor in Possession) and its subsidiaries (the "Company") (which
report expresses an unqualified opinion and includes explanatory paragraphs
relating to Covanta Energy Corporation and various domestic subsidiaries having
filed voluntary petitions for reorganization under Chapter 11 of the Federal
Bankruptcy Code, the Bankruptcy Court having entered an order confirming the
Company's plan of reorganization which became effective after the close of
business on March 10, 2004, substantial doubt about the Company's ability to
continue as a going concern, and the Company's adoption of Statement of
Financial Accounting Standards ("SFAS") No. 143, "Accounting for Asset
Retirement Obligations" in 2003, SFAS No. 142, "Goodwill and Other Intangible
Assets", and SFAS No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets" in 2002, and SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended, in 2001) appearing in and
incorporated by reference in the Current Report on Form 8-K/A of Danielson
Holding Corporation dated May 10, 2004.

/s/ Deloitte & Touche LLP

Parsippany, New Jersey
May 17, 2004