GEFA news quarterly, Jan. 2011

GEFA News Quarterly

Energy Performance Contracting Effective January 2011
On Election Day, Georgia voters overwhelmingly approved a constitutional amendment (Amendment 4) allowing guaranteed energy savings performance contracts, permitting the state to use funds normally spent on utility bills to finance building improvements designed to lower energy consumption. In a guaranteed energy savings performance contract, the state goes through an open, competitive process to choose an energy services company (ESCO) to implement energy efficiency measures. The ESCO selected must guarantee that the state will save a certain amount of money with the installation of modern, energy-efficient equipment and systems. Rather than having to appropriate all the funds in one year, the state uses the guaranteed savings to repay the ESCO for its work over a period of years.
Upon completion, the state enjoys both immediate and future savings. After installation, the state will no longer have to provide for the costs associated with repairing aged and outdated energy equipment and systems. And after the contract with the ESCO has been fulfilled, the state enjoys lower utility bills for years to come. Amendment 4 will create much needed private-sector jobs in the state, cut government waste and preserve the state's culture of conservation.
State agencies will be able to finance necessary energy and water improvement projects, generating much-needed private sector jobs in key industries such as engineering, electrical, construction and HVAC. These areas have been deeply affected by the construction slowdown and contribute to the state's high unemployment rate and lagging revenues.
Energy performance contracting will also help the state meet its commitment to the Governor's Energy Challenge and reduce energy consumption by 15 percent in state facilities below FY2007 levels by 2020.

Table of Contents

Performance Contracting

1

SWEET Center Grand Opening

2

Water Resources Highlights

2

Energy Resources Highlights

3

Land Resources Highlights

3

Volume II

January 2011

2

Protection and Stewardship of Water Resources and Infrastructure Projects

GEFA Executive Director Kevin Clark
The SWEET Center Grand Opening
The Southeast Weatherization and Energy Efficiency Training (SWEET) Center, the newest addition to the Southface campus, held its official opening on October 26. Once an abandoned diaper laundry facility, the green jobs training initiative will provide practical, hands-on learning opportunities in weatherization techniques and testing protocols including blower door testing, duct blaster testing and installing insulation.
Hosted by Southface Executive Director Dennis Creech, Kevin Clark, executive director for GEFA, Atlanta Mayor Kasim Reed, Congressman John Lewis and Bob Adams, supervisor for the Office of Weatherization and Intergovernmental Programs with the U.S. Department of Energy, all spoke at the event. GEFA provided $200,000 in American Recovery and Reinvestment Act (ARRA) funds toward the construction of the SWEET Center. The SWEET Center has already trained more than 700 weatherization professionals in weatherization, home retrofitting and energy-efficiency techniques, which have helped more than 4,000 low-income families across Georgia save up to 50 percent on their energy bills. The SWEET Center will continue these efforts and work toward DOE and national goals of reducing energy consumption and conserving energy.

GEFA approved financing for environmental infrastructure projects totaling $25.1 million for 15 communities throughout the state. The GEFA board of directors approved Drinking Water State Revolving Fund (DWSRF), Clean Water State Revolving Fund (CWSRF) and Georgia Fund loans and grants to help finance water, sewer and storm water system infrastructure improvements. Key projects approved in the last quarter include the city of Thomasville, which secured a DWSRF loan of $2,250,000 to finance replacing water meters and a GIS asset and work management system. This green project qualifies for 50 percent of the principal drawn to be forgiven, a guideline for projects that address water or energy efficiency improvements and other environmentallyinnovative activities. The city of Nashville obtained a CWSRF loan of $6.3 million to construct a new wastewater treatment facility and 15 percent of the first $5 million drawn in principal forgiveness.
In May 2010, Governor Perdue signed into law the Water System Interconnection, Redundancy and Reliability Act. The Act directs the Georgia Environmental Finance Authority (GEFA) to complete a detailed engineering study that develops an emergency water supply plan for all qualified water systems within the Metropolitan North Georgia Water Planning District. Over the past seven months, GEFA has worked closely with local water systems, the Metro District and the Georgia Environmental Protection Division to define the scope of the study and to conduct a competitive procurement to select a contractor to undertake the work. On December 1, 2010, GEFA signed a contract with CH2M HILL, which will lead a team of consulting engineers to develop an emergency water supply plan for the Metro District.
GEFA also continues to work with state legislators and environmental experts on a solution to the state's water supply issue. GEFA has an active role with the Joint Committee on Water Supply, which consists of five state representatives and five state senators currently studying the current status of the state's water supply systems and infrastructure GEFA worked with the Environmental Protection Division (EPD) and other agencies to prepare a report, which was presented to the committee on December 8.

Southface is a 32-year-old nonprofit organization that promotes energy-, water- and resource-efficient homes, workplaces and communities throughout the Southeast.

Lake Lanier, Georgia

3

More than 200,000 Acres in Georgia Now Protected Through Land Conservation Program
Seven new recent conservation easement donations of more than 6,000 acres of natural and working lands from private landowners to the state of Georgia brought the total acreage conserved through the Georgia Land Conservation Program (GLCP) to 211,176. Conservation easements are voluntary agreements that permanently restrict how land can be used. Landowners maintain ownership of their property and qualify for income tax credits, federal tax incentives and other financial benefits, but forfeit some development rights, allowing the land to be permanently conserved. The easements are held by qualified state agencies, local governments or nonprofit land trusts.
Governor Perdue introduced the Georgia Land Conservation Act, which created the GLCP, during the 2005 session of the General Assembly to encourage the long-term conservation and protection of the state's natural, cultural and historic resources. Since the program's inception, the GLCP has participated in 312 land conservation transactions that have permanently protected 211,176 acres.
The recently donated easements, totaling 6,060 acres, include: 1,008 acres at Diamond Drake Farms in Meriweather County; 2,774 acres at Alligator Creek in Wheeler County; 628 acres at Kirkland Creek in Early County; 454 acres at Red Hawk Farms in Pulaski County; 1,055 acres at Tucker Turf Farm in Houston County; 133 acres at Buckhead Creek in Jenkins County; and 58 acres in Burke County that adjoin the Yuchi Wildlife Management Area.
Diamond Drake Farms, Meriweather County, Georgia
Georgia Environmental Finance Authority 233 Peachtree Street NE Harris Tower, Suite 900 Atlanta, Georgia 30303 Phone: 404-584-1000 Fax: 404-584-1069 Providing energy, land, and water resources resulting in an improved quality of life for today and future generations. Find us on the Web: www.gefa.org
If you wish to add or remove yourself from this newsletter distribution, please contact Nicole V. Linton at nicole@gefa.ga.gov.

Haven Farms, Calhoun, Georgia
Innovation and Performance Define Success for the Energy Division
Haven Farms in Calhoun, Georgia, recently completed construction on a 100 KW solar energy-generating facility, installed by Hannah Solar, which will produce 148,000 kWh annually to power operations at the farm. Haven Farms received $205,000 through the Clean Energy Property Rebate Program for the project. Established in 2009 as a result of the ARRA, the program offsets up to 35 percent of the cost of installing renewable energy property, implementing lighting retrofits or building efficiency upgrades.
An event held in September at the farm was attended by the media and local government officials, including Public Service Commissioner Lauren "Bubba" MacDonald, U.S. Representative Phil Gingrey, Michael Snow from the Georgia Department of Agriculture and District 2 Public Service Commissioner Tim Echols.
Georgia residents were again given the opportunity to apply for rebates on ENERGY-STAR rated appliances in November. Approximately $800,000 in ARRA funds were still available for rebates on ENERGY STAR appliances such as clothes washers, dishwashers, air conditioners, heat pumps, furnaces, water heaters, refrigerators and freezers. The funding for the program was exhausted in less than three weeks, and currently waitlist applications are being accepted in the event additional funds become available due to ineligible applications or applications that are not submitted within the required 30 days. During the first phase of the program, 104,971 rebates were approved totaling more than $8.7 million.