GEFA news quarterly, Vol. 2, 3rd Qtr. 2009

GEFA News

Georgia Environmental Facilities Authority

QUARTERLY

233 Peachtree Street, NE Harris Tower - Suite 900

WATER ENERGY LAND FUEL VOLUME 2, THIRD QUARTER 2009

Atlanta, Georgia 30303-1506

Tel: 404.584.1000

www.gefa.org

Letter From The Executive Director



















































As the new executive director of the Georgia Environmental Facilities Authority (GEFA), I want to express my appreciation to the entire staff for the warm welcome they have given me since Governor Perdue announced my appointment in January. e entire GEFA team has worked hard to make my transition as smooth as possible. I also want to thank former Executive Director Chris Clark for his past leadership of GEFA and for his encouragement over the last several months.
During my time at the Georgia Department of Community Affairs, I worked with various GEFA employees and learned firsthand that this agency is one of the most respected in state government. GEFA earned that respect by getting the job done effectively and efficiently while providing excellent customer service.
GEFA's contribution to Georgia's economy and the environment is substantial. Our water and sewer loan

programs help many communities grow and prosper throughout the state while improving the quality of life for millions of Georgians. In addition, the land conservation program, which began three years ago, reached 100,000 acres conserved this January.
e state energy office promotes energy efficiency and conservation and educates Georgians about how they can increase the energy efficiency of their homes and businesses. e weatherization program improves the lives of low-income and elderly Georgians by making their homes more energy efficient and consequently reducing their energy bills.
Several years ago many people would have never associated the state of Georgia with alternative fuels and renewable energy. Today, thanks to the energy innovation team, our state is quickly becoming a national leader in this growing industry. GEFA also manages the state's fuel tank resources and the remediation efforts of old and outdated fuel tanks.
e success of GEFA's programs is incumbent on strong administrative, IT and fiscal teams. e administrative and IT teams keep this agency running on a daily basis, and without them, all of our great work would not be possible. GEFA's finance divi-

sion is responsible for managing millions of dollars in loans and assets. e finance division's reputation throughout state and local government has made them a model for others to follow.
It is definitely a challenging and exciting time for GEFA and I look forward to the work that we will accomplish together. Coming into this position during a tough budget and legislative environment was an interesting experience. We are now preparing to administer the largest influx of federal dollars in the history of GEFA due to the American Recovery and Reinvestment Act (ARRA). We will continue to rise to the challenges we face. is is how we have operated since 1985 and it is how we will tackle the challenge of the ARRA funds. is is the expectation of GEFA and it is an expectation that we will meet and exceed.
It is an honor to have been selected to lead an agency that accomplishes so much for the people of our state. I look forward to working with the staff, local governments, associations and other stakeholders as we work together to promote economic growth in Georgia in an environmentally responsible manner.

GEFA News Quarterly
Division Reports

WATER RESOURCES
During the third quarter of FY2009, the water resources division worked diligently to implement the American Recovery and Reinvestment Act (ARRA), while continuing to manage its regular programs - the Georgia Fund, State Water Plan funding and the Water Supply Technical Assistance Program. The ARRA allocated an additional $121 million to the Clean Water and Drinking Water State Revolving Fund (SRF) programs, two federally-funded, low interest water infrastructure loan programs managed by the water resources division. Over the course of the third quarter, the water resource division issued two SRF project solicitations, reviewed more than 1,600 SRF project submissions, published a draft of the 2009 Clean Water and Drinking Water Intended Use Plans, put out the plans for public review and submitted a formal application to the U.S. Environmental Protection Agency for ARRA funding.
During this timeframe, the water resources division also presented $14,462,213 million in loans to the GEFA Board for approval. Additionally, the division supported the GEFA Executive Director in presenting the Georgia Inventory & Survey of Feasible Sites for Water Supply Reservoirs to the joint Legislative Oversight Committee, in keeping with the Water Supply Act of 2008.
ENERGY
e State Energy Program cosponsored the annual Greenprints Conference and Tradeshow, which was held March 25-26. e conference attracted more than 415 attendees with an interest in sustainable planning, architecture, construction and use of natural resources.
ere were 65 speakers at the conference, including GEFA team members PJ Newcomb and Rich Ross, who offered attendees an overview of state government initiatives to reduce energy consumption and encourage the adoption

of renewable energy. GEFA was also among the 41 exhibitors distributing information at the tradeshow.
In March, GEFA partnered with the National Energy Education Development Project (NEED) to develop and provide energy curriculum, training, and materials for K-12 teachers in Georgia. NEED will host at least five workshops in Georgia with a goal of training 160 teachers and providing classroom materials for their students as well. e teachers will also be introduced to the Governor's Energy Challenge, and will be encouraged to pass along information about the Governor's energy saving initiative to their schools and pupils.
The State Utilities Program prepared a formal request to all state agency heads requesting that they submit their FY2007 energy use and cost baselines to GEFA as the first step toward meeting the Governor's Energy Challenge. e baselines are due June 30. GEFA is also providing an Excel-based data collection tool along with guidance on our web site to assist agencies in collecting and providing this data. The letter will also request that all agencies put in place Sustainable Energy Management Plans by December 31, 2009.
Utilities Analysis Inc. was chosen as the consultant for the Phase II evaluation of electricity rates for state agencies. e previous effort conducted in FY04 has resulted in annual cost-avoidance savings of almost $3 million annually. e SUP team believes additional savings in the range of $500,000 - $1,000,000 may be available.
Also in March, Georgia Power Company submitted contract renewals for the Multiple Load Management Real Time Pricing accounts. e revised contract is estimated to save the state $1,840,134, an increase of $176,196 compared to last year.
FST
EPA Region 4 released a training video that will be distributed to city and county governments throughout Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee. e video features several GEFA managed sites as well as our own Ted Larrabee.

FST hosted the inaugural meeting of the Fuel Management Council at the end of February.
We discussed the need to develop a statewide approach to addressing fuel quality issues primarily for storing diesel fuel for emergency generators. The council will work to develop baseline quality statistics on existing fuel inventories and create guidelines appropriate for each department as well as individual facilities.
Bids were received for Project No. GEFA-E462, Aboveground Fuel Tank Removals and Installations, Georgia State College & University, Baldwin State Prison, Bostick State Prison, Men's State Prison, Scott State Prison, and Georgia Correctional Industries, Baldwin County, Georgia.
Remediation activities continued on multiple sites around the state.
LAND CONSERVATION
In January, the Land ConservaIn January, the Land Conservation Program conserved its 100,000th acre of land by completing a $10,000 grant to the Georgia Forestry Commission. GFC utilized these funds to pay expenses that were incurred while accepting a donated conservation easement on the Gillis Forest a 1,500-acre timber tract in Treutlen and Laurens Counties. e Land Council appropriated an additional $200,000 to continue supporting easement donations to state agencies, such as the Gillis Forest. GLCP staff is conducting numerous outreach efforts to promote easement donations, including presentations to farming and forestry groups, Landowner Workshops in Guyton and Augusta and easement training for state agency personnel.
FINANCE
GEFA experienced a low point in cash reserves in its Georgia Fund prior to the receipt of new bond funds

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GEFA News Quarterly
Division Reports
(Cont'd)
the first part of February. Demand for loans continues to lag behind our last three years; primarily due to reduced revenues for local communities and some of those communities delaying project funding to take advantage of the federal Stimulus funding which, if their project is approved, reduces the amount of loan which will be required to be repaid. As a consequence of reduced cash reserves, the Office of Treasury and Fiscal Services has proposed that GEFA convert its investible balance to the shorter term Fund 1 account inasmuch as short to intermediate investment rates continue at historical lows. GEFA will study their proposal.
EIC
e Georgia Center of Innovation for Energy hosted two One Stop Shops during the third quarter of FY09 with a total of 10 companies participating. is brings the total of current projects to 31. One of these, Americas Waste to Energy, Corp. (AW2E) announced that it will be deploying the first Biosphere Gasification System in Georgia at a project site in Toombs County. When completed, this facility, which represents $34 million in new capital investment, will produce 24 MW of renewable electricity and create 30 new "green collar" jobs.

Conservation Tips
Energy and Water Conservation Tips:
Set your thermostat to 78 degrees when you are home and 85 degrees or off when you are away. Using ceiling or room fans allows you to set the thermostat higher because the air movement will cool the room. Be sure to make sure that your ceiling fans rotate counter-clockwise during summer and clockwise during the cooler months. When you need to use the dryer, run full loads, use the moisture-sensing setting, and clean the clothes dryer lint trap after each use. Reduce the operating time of your swimming pool filter and automatic cleaning sweep to four to five hours, and only during off-peak time. Unplug electronic devices and chargers when they aren't in use-most new electronics use electricity even when switched "off." Turn computers and printers off at the power strip. Dirty filters restrict airflow and can cause the system to run longer, increasing energy use. Replace filters monthly for maximum benefit. Weather-strip, seal, and caulk leaky doors and windows and install foam gaskets behind outlet covers. Install patio covers, awnings, and solar window screens to shade your home from the sun. For additional future savings, use strategically planted trees, shrubs and vines to shade your home.

Land Conservation Program Tops 100,000 Acres

In January, the Georgia Land Conservation Program (GLCP) surpassed 100,000 acres of land preserved since its inception in 2005. " anks to the state's efforts and contributions by landowners and other partners, valuable conservation lands and historic sites are conserved for future generations to use and enjoy," said Governor Sonny Perdue. "As Georgians we are blessed to live in a state that is rich with natural beauty and we will continue to be good stewards of the land."
e GLCP accomplished the 100,000-acre mark with an investment of $66 million in state dollars that leveraged more than $175 million in non-state grants and donations, a ratio of better than two-to-one.
e project responsible for the program reaching the 100,000-acre mark was the Jim L. Gillis Forest Legacy Easement. Jim L. Gillis is a long-time board member of the GFC and major advocate of Georgia's forestry industry. e property contains 1,453 acres of working forest, waterways, wildlife habitat and farmland in Treutlen and Laurens Counties, which will be permanently protected by a conservation easement. e conservation easement also ensures that the Gillis family, and any future owners

of the property, will be able to continue harvesting forest and agricultural crops in perpetuity.
e GLCP provided a $10,000 grant to the Georgia Forestry Commission's Forest Legacy Program to cover expenses associated with accepting the donated easement from Mr. Gillis. "Mr. Jim L. Gillis is a true icon of Georgia forestry," said Robert Farris, director of the Georgia Forestry Commission. "It is especially fitting that he is the landowner to take us to this outstanding milestone."
rough direct land purchases, conservation easements and tax incentives, the GLCP has completed 133 projects in 71 counties resulting in the permanent protection of 100,344 acres of Georgia's most important natural lands and historic sites. Fifty-four state-funded projects have conserved 69,664 acres and 79 tax credit projects have conserved 30,680 acres.

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GEFA News Quarterly

Issue Profile
ARRA Funding
On February 17, 2009, the American Recovery and Reinvestment Act of 2009 (ARRA) was enacted. As a result of the ARRA, GEFA will be receiving new or expanded funding for the Clean Water and Drinking Water State Revolving Fund (SRF) loan programs, the State Energy Program and the Weatherization Assistance Program.
GEFA's total 2009 capitalization funding for the SRF for the following year, including the ARRA funds, totals approximately $144 million. is funding will be administered in conjunction with GEFA's annual SRF appropriations. Many communities responded to a potential SRF project solicitation issued by GEFA. GEFA received potential project requests containing more than 1,600 clean water and drinking water projects with a total cost of more than $6 billion. While $144 million represents an unprecedented level of funding for the GEFA SRF, it clearly does not equal the total infrastructure needs of all the communities in Georgia. In addition, the ARRA directs states to reserve 20 percent of the ARRA SRF funding for "projects to address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities." Eligible applicants for the SRF funding are county and city governments and water/sewer authorities in the state of Georgia.
e Division of Energy Resources received $82.5 mil-

lion in stimulus funds for its State Energy Program (SEP). GEFA intends to create several funding opportunities for state agencies, local govenrments, and private sector entities. Opportunities for the private sector will be awarded through an open application process. Applications will be evaluated according to a series of criteria still under development and pending approval from the U.S. Department of Energy (DOE). Approval of the comprehensive application and the award of SEP funds to GEFA are expected no sooner than July 12, 2009. Once GEFA receives DOE approval for its SEP plan, GEFA will release guidance and application forms for the SEP.
e ARRA provides $124.8 million for the Weatherization Assistance Program, a significant increase in funding.
e ARRA also increased the maximum amount that may be spent per household to $6,500. Families whose annual income is at least 200 percent above the federal poverty level are eligible for weatherization assistance. Families of four with an annual income of $40,000 or less are also eligible. GEFA administers the Weatherization program but does not provide weatherization services. Weatherization services are provided throughout Georgia by 22 local providers. e 22 local providers include local community action agencies, city and county government entities, as well as other non-profit agencies.
To receive GEFA stimulus email updates, please visit GEFA's web site at www.gefa.org to sign up.

Regional Water Planning Underway

Earlier this year the Governor, the Lieutant Governor, and the Speaker of the House appointed 300 Georgians to serve as members of ten regional water planning councils. In mid-March, at the regional water planning kickoff meeting at the Georgia Aquarium, Governor Perdue gave the council members their charge. By June 2011, each council will prepare a regional water plan to be approved and adopted by the Georgia Environmental Protection Division (EPD).
e plan will guide each region in managing water resources in a sustainable manner to support the state's economy, to protect public health and natural systems, and to enhance the quality of life for all citizens. After the regional water plans are adopted, EPD permits and Georgia Environmental Facilities Authority (GEFA) grants and loans for water projects will be guided by the plans. e State Water Plan, which was adopted by the General Assembly and signed by Governor Perdue in 2008, provided for the formation of the regional water planning councils.
In May, the regional water planning councils conducted their first meetings. Each council will elect a chair and vice-chair and determine the operating procedures it will

follow. During the second meeting in June, each council will begin its review of regional water resource and regional water use data.
Water resource assessments along with forecasts that describe each region's water needs form the scientific basis for regional water planning. Each council will be provided three resource assessments based on the boundaries of the resource, not the water planning region. e three resource assessments are: ground water availability; surface water availability; and, surface water quality.
Each council will also receive three different forecasts: population and employment; agricultural needs; and, land cover. Regional water plans will include management practices determined by each council to meet the future water needs of its region.
For more information on regional water planning, visit www.georgiawaterplanning.org.

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GEFA News Quarterly
New Employees
In January 2009, Jennifer Wilson joined GEFA in the Energy Division as a program manager 2. Her responsibilities are focused on managing the E85 Infrastructure Grants Program, managing the Recycling and Waste Reduction Grants Program, helping manage and coordinate outreach efforts related to the Governor's Energy Challenge, approving and publishing requested changes to the GEFA Web site and assisting in implementing energy-related ARRA programs.
Prior to coming to GEFA, Jennifer worked for over two and a half years at CIFAL Atlanta, a division of the United Nations Institute for Training and Research. (CIFAL signifies "International Training Centre for Local Authorities/Actors" [in French: Centre International de Formation des Autorits/Acteurs Locaux.]) At CIFAL Atlanta, she served as the program director of environmental sustainability. She implemented programs to train regional and international government officials on energy efficiency, green buildings, land-use, methane recovery, solid waste and water resource management.
Jennifer earned her bachelor's degree in Spanish with a minor in history from University of Georgia.
Kevin ompson joined GEFA in February 2009 as the finance manager. His responsibilities focus on daily operations management of the GEFA loan servicing system. Kevin's duties include loan analysis and management, new loan underwriting, annual reviews of current portfolio loans, credit analysis of communities, and overseeing compliance of current loans. Kevin also manages the daily activities of the finance staff.
Before coming to GEFA, Kevin worked as the vice president of commercial lending at NorthWest Bank and Trust and at Fidelity Bank. While at NorthWest and Fidelity, Kevin was responsible for the largest portfolio of secured loans in the bank. He underwrote, negotiated and closed large complex loans for commercial lending units. He implemented business plans to achieve strategic goals of the bank and diversified the lending portfolio. He also developed and implemented new underwriting standards and guidelines for the bank's commercial and industry portfolio while maintaining strong credit quality standards set forth by senior management.
Kevin earned his bachelor's degree in accounting from St. John's University and earned his master's of business administration degree in finance from Brenau University.
Garry Schoolcraft joined GEFA in February 2009 as a financial analyst 1. His responsibilities focus on performing financial analysis, analyzing financial statements and interpreting financial data in connection with all GEFA loan programs, preparing specialized reports and queries to ensure financial data integrity, quality loan processing/servicing for clients, and assisting in the preparation of loan contracts. Garry also performs periodic operational/financial reviews.
Prior to joining GEFA, Garry worked for Del-Jen Logistics at Tyndall Air Force Base in Florida as a logistic superintendent. While at Del-Jen Logistics, Garry prepared diverse financial reports on current and proposed spending/budget issues, identified deviations from projected spending to preclude long run capital issues, tracked expenditures and post disbursements to various expense reports, and performed trend analysis on multiple initiatives to support program performance reviews. He also led a team of supply chain management personnel responsible for a wide range of logistics services, and negotiated logistics contracts.
Garry earned his bachelor's degree in finance and business administration from Florida State University.

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GEFA News Quarterly Budget and Legislative Update

Due to record decreases in state revenues, Governor Perdue asked state agencies to make substantial reductions in program funds for the FY2009 and the FY2010 budgets. All programs were reduced to accommodate the final one percent revenue shortfall reduction. In addition, both the water and sewer grant funds and the state utilties program experienced large reductions in their funding. In the FY2009 budget, the water and sewer grant funds were reduced $140,059 from the original allocation of $500,000 to $359,941 and in the FY2010 budget, the water and sewer grant funds were reduced from $500,000 to $139,930 during the session but were then later reduced to $119,317. e state utilities program funding was reduced from $500,000 to $23,384 in the FY2009 budget and from $500,000 to $43,844 in the FY2010 budget. Funding for the Georgia Land Conservation Program was cut completely in both the FY2009 and the FY2010 budgets.

In addition, for FY2010 bond funding was authorized to support GEFA's loan programs -- the Georgia Fund loan program received $37 million, and the clean water and drinking water state revolving funds received $3.5 million and $4.5 million respectively.
Several bills of interest to GEFA passed the General Assembly this past legislative session: HB120 which scheduled the Energy Star/WaterSense sales tax holiday for the first week of October 2009; HB473 which authorizes GEFA to adminster and disburse clean energy grants for solar, wind, geothermal and energy efficiency projects; and SB55 which defines and changes the factors used to determine fair market value of property to include its conservation use.

GEFA Board of Directors
Mayor Matt Beasley, Chairman
City of Hartwell
Commissioner J. C. Warren, Vice Chairman
Screven County Board of Commissioners
Russell Hinton, Secretary
State Auditor
Mayor Jimmy Andrews
City of Sandersville
Mike Beatty
Commissioner, Department of Community Affairs
Commissioner Elmo Richardson
Bibb County Board of Commissioners
Commissioner Grady Thompson, Jr.
Tift County Board of Commissioners
Dennis Love
At-Large Member
Doug Mitchell
At-Large Member
Ken Stewart
Commissioner, Department of Economic Development
Mayor Gerald Thompson
City of Fitzgerald

GEFA Senior Sta
Phil Foil
Executive Director
Greg Mason
Chief Operations Officer
Tom Steinmetz
Chief Financial Officer
Glendale Jones
Chief Administrative Officer
Shane Hix
Director, Public Affairs
Beverly McElroy
Director, Water Resources
Curt Soper
Director, Land Conservation
David Gipson
Director, Energy
John Martin
Director, Information Technology
Jill Stuckey
Director, Alternative Fuels
Bob Wiggins
Director, Fuel Storage Tank Division

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