2024 Annual report / Georgia Environmental Finance Authority.

2024
Annual Report
G E O R G I A E N V I R O N M E N T A L F I N A N C E A U T20H19 OANNRUIALTRYEPORT | 1

2023 ANNUAL REPORT

Our Mission
Conserve and Improve Georgia's Energy, Land, and Water Resources.
Founded in 1986, the Georgia Environmental Finance Authority (GEFA) directs programs that improve Georgia's environment, protect natural resources, and promote economic development. GEFA provides loans for water, wastewater, and solid waste infrastructure; manages energy efficiency and renewable energy programs; administers land conservation loans; and monitors state-owned fuel storage tanks.

Table of Contents
3 Executive Director's Report 4 Accomplishments 6 Energy Resources 8 Water Resources 10 Financial Highlights 11 Net Position 12 Statement of Net Position 13 Statement of Activities 14 Revenues and Expenses 15 Division Summaries 15 Board of Directors 15 Senior Staff

2024 ANNUAL REPORT

EXECUTIVE DIRECTOR'S REPORT
To the Governor, Members of the General Assembly, and Georgia Citizens:
I am pleased to present the fiscal year 2024 (FY2024) annual report. GEFA continues to work hard with our local partners around the state to provide resources that build Georgia's water and energy infrastructure.
In the last five years, our Water Resources Division (WRD) executed $1.9 billion in loans and grants, and our Energy Resources Division (ERD) delivered $139.3 million in grants and technical assistance to communities throughout Georgia.
In FY2024, GEFA executed $316.7 million in Clean Water State Revolving Fund (CWSRF) loans, $97.3 million in Drinking Water State Revolving Fund loans, and $27.5 million in Georgia Fund loans. The Lead Service Line Replacement (LSLR) Program executed $9.5 million in loan funding and $8 million in grant funding. The ERD executed $31 million through the State Energy Program.
Here are a few of our notable projects and accomplishments from FY2024:
The Banks County Board of Commissioners was awarded a $5 million CWSRF loan to finance sewer infrastructure to service a new industrial site. This project will extend the sewer system to the new development, providing for economic growth.
Dalton Utilities was awarded a $1.6 million grant to perform an emerging contaminants pilot study, which will generate data for a range of PFAS treatment options and evaluate PFAS removal and waste destruction technologies. Dalton Utilities treats approximately 22 million gallons of wastewater per day. The size of the treatment facility, the PFAS levels detected in wastewater, and the positive impact to a sizeable watershed make it an ideal facility for a pilot study.
GEFA is pleased to note that we partnered with 49 new borrowers this year through the LSLR Program. This means that 49 additional communities will now know how GEFA can help them with their water infrastructure needs. GEFA will continue to provide as much financing as possible to communities to assist them in the replacement of lead service lines.
GEFA also promotes energy efficiency and the use of renewable energy sources through several energy programs. Due to an influx in federal funding, GEFA is working hard to funnel those resources to communities and individuals to help them lower their energy bills.
Georgia is the first state in the Southeast to launch the U.S. Department of Energy's (DOE) Home Energy Rebate Programs. These programs will provide rebates to Georgians for home energy efficiency retrofits and home electrification and appliance projects.
GEFA, Oglethorpe Power, Georgia Transmission, Georgia Systems Operators, and Green Power EMC received a grid resilience and innovation grant from DOE. The projects funded by the grant will enhance grid flexibility, improve the resilience of the power system, and ensure communities have access to more reliable and affordable electricity.
GEFA is proud of the work we have accomplished this year. We are grateful for the leadership of the Governor's Office and the Georgia General Assembly, who ensure that we have the necessary funding to continue to invest in Georgia's vital infrastructure.
Sincerely,

Hunter Hill, Executive Director

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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2023 ANNUAL REPORT
ACCOMPLISHMENTS
Fiscal Year 2024

Conserving Georgia's Energy Resources

Eighty-seven K-12 and higher education building operators received Level 1 and Level 2 Building Operator Certification training and 30 building operators completed the advanced Level 3 courses.
The Weatherization Assistance Program weatherized 961 homes positively impacting 1,611 Georgians with an estimated energy savings of 28,157 MBtu.
The Bipartisan Infrastructure Law (BIL) provided $31 million in funding for the State Energy Office.
GEFA directed Emergency Support Function #12 (ESF-12) during activities of the State Operations Center for Hurricane Idalia and the 2024 General Primary Election.

GEFA hosted Energy 101 Training for all emergency support coordinators in partnership with Georgia Emergency Management and Homeland Security Agency.
The Fuel Storage Tank Program provided maintenance and compliance assistance for 633 fuel storage tanks at 22 state agencies and departments.
GEFA helped its agency partners pass 41 fuel storage tank site compliance inspections.
GEFA completed the annual registration for 321 state-owned underground fuel storage tanks.

2024 ANNUAL REPORT

GEFA increases the capacity and quality of Georgia's water supply, supports the protection and preservation of Georgia's land resources, and promotes conservation and advancement of Georgia's energy resources. GEFA continues to build on this success through its commitment to protecting Georgia's natural resources and supporting economic development.

Improving Georgia's Water Resources

Projects financed by GEFA provided reliable water, wastewater, and solid waste service to more than 1.2 million Georgians.
The Clean Water State Revolving Fund executed 30 loans totaling $316.7 million with $20.3 million in principal forgiveness.
The Drinking Water State Revolving Fund executed 22 loans totaling $97.3 million with $19.8 million in principal forgiveness.
The Lead Service Line Replacement Program executed 95 loans totaling $9.5 million with $9.3 million in principal forgiveness.
The Lead Service Line Replacement Program executed 80 grants totaling $8 million.

The Emerging Contaminants Program executed five drinking water grants totaling $37.1 million and one clean water grant totaling $1.6 million.
The Georgia Fund executed eight loans totaling $27.5 million.
GEFA provided financing to 135 communities with $128.5 million in debt service savings.
GEFA provided financing to 49 new borrowers.
The city of Thomasville was awarded the WaterFirst designation.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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Energy Resources

The Energy Resources Division promotes energy efficiency, renewable energy, and energy assurance programs to improve environmental quality and stimulate sustainable economic development.

The State Energy Program
provides financial assistance and technical support for energy efficiency and renewable energy programs.
The Weatherization Assistance Program
provides energy efficiency measures to lowincome households.
Energy Performance Contracting
allows the state to finance building improvements guaranteed to lower energy and water consumption.

The Energy Assurance Program
promotes energy security planning and preparedness and serves as the Emergency Support Function #12 (ESF-12) lead coordinator with the Georgia Emergency Management and Homeland Security Agency.
The Fuel Storage Tank Program
serves as the central management office for state agencies and institutions with fuel storage tanks.

$31M
Bipartisan Infrastructure Law (BIL) Funding for State Energy Office

961
Homes Weatherized throughout Georgia

87
New Level 1 and Level 2 Building Operator Certifications completed

2024 ANNUAL REPORT

The Weatherization Assistance Program
Investing in energy efficiency and conservation statewide

Coming home after a long day, people want to relax and enjoy time with their family. GEFA's Weatherization Assistance Program (WAP) makes this possible for many people across the state of Georgia. WAP aims to improve energy efficiency, reduce utility bills, and enhance health and safety through better living conditions. This program focuses on serving low-income households, people with disabilities, families with children, and the elderly. Single-family homes, manufactured homes, and multifamily buildings are eligible.
Services provided by the 14 Community Action Agencies across the state include comprehensive energy audits to identify inefficiencies in homes. Following the audit, various weatherization measures are taken.

This program provides the homeowner with lower energy bills and contributes to a healthier living environment. Improved insulation and air quality reduce the risk of respiratory problems and other health issues linked to inadequate housing conditions. WAP also generates economic benefits by creating jobs and fostering workforce development within communities in the state of Georgia.
By investing in weatherization, the state of Georgia can ensure that vulnerable families have access to safe, comfortable homes while contributing to energy efficiency and conservation efforts statewide.

Heating, Ventilation, and Air Conditioning System Improvements Energy-Efficient Improvements for Lighting Water Conservation Devices Air and Duct Sealing Insulation

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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Water Resources
The Water Resources Division supports the development of water, wastewater, and solid waste infrastructure projects, which help protect the environment, facilitate economic development, accommodate population growth, and safeguard public health.

The Georgia Fund
is a state loan program for water, wastewater, and solid waste infrastructure.
The Georgia Reservoir Fund
is a state loan program for reservoir and water supply infrastructure.
The Clean Water State Revolving Fund
is a federal loan program for water quality and wastewater treatment infrastructure.

The Drinking Water State Revolving Fund
is a federal loan program for drinking water infrastructure.
The WaterFirst Program
recognizes a local government's commitment to responsible water stewardship for environmental and economic benefits.

1.2M
Georgians provided reliable water services through GEFA financing

$497.7M
Awarded to communities for water and wastewater projects

135
Communities received GEFA financing

2024 ANNUAL REPORT

The WaterFirst Program
Thomasville becomes 39th community to receive designation

Having access to a clean and reliable source of water is essential for the health and economy of every community. The WaterFirst Program is one way the state of Georgia recognizes communities for proactive water stewardship.

In April 2024, the city of Thomasville, Georgia, became the 39th community in the state and the first city in southwest Georgia to receive the designation. Thomasville's notable accomplishments include:

The WaterFirst Program is a voluntary partnership between local governments, state agencies, and other organizations working together to increase quality of life in communities through the wise management and protection of water resources. The program was launched in 2002 by the Georgia Department of Community Affairs (DCA). In 2018, it moved to GEFA.
Becoming a WaterFirst Community is no small task. Each community that receives the designation must demonstrate its commitment to responsible watershed assessment, stormwater master planning, wastewater treatment and management, water supply planning and protection, water conservation, water reclamation and reuse, educational outreach, and regional water planning.

Leadership in smart technology: The city incorporates smart monitoring technology in its advanced metering infrastructure system and supervisory control and data acquisition system.
Community engagement and education: The city, in collaboration with Keep Thomas County Beautiful and Golden Triangle RC&D, educates the community about water conservation efforts.
Exemplary stormwater management: Thomasville adheres to rigorous best management practices and encourages these practices in all new developments, ensuring sustainable growth and environmental preservation.

The program is recognized statewide, and WaterFirst Communities are eligible for financial and other benefits from the state. The benefits include a 1 percent interest rate reduction on GEFA loans, eligibility for water-related Community Development Block Grants administered by DCA, and priority status for the 319 Grant Program administered by the Georgia Environmental Protection Division.

When you enter the city of Thomasville, you will see a sign that says "WaterFirst Caring for our Water Resources." This is a reminder of the important steps the city took to protect its valuable water resources for both environmental and economic benefit.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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Financial Highlights
The narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2024, provides additional detail on GEFA's financial performance.

Total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by more than $3.3 billion (net position). Of this amount, $57.8 million was from governmental activities and $3.3 billion was from business-type activities.
GEFA's total net position increased by $461.5 million. The net position in governmental activities increased by $326,766 while the net position of business-type activities increased by $461.1 million.

Total governmental revenues increased by $16.5 million from 2023. The increase in revenue is mostly attributable to an increase in administrative operations to ramp up for program expenses associated with the Bipartisan Infrastructure Law (BIL), an increase in administrative fees for loan programs, and an increase in funding provided for the purpose of matching federal loan programs.
Operating grants and contributions within business-type activities increased by $310.3 million. This increase is mostly due to a significant capitalization of $250 million from the state for the Georgia Fund and additional revenue from funding provided under BIL.

2024 ANNUAL REPORT

FINANCIAL HIGHLIGHTS
FY2024 Net Position

Current and other assets Capital assets
Total assets Deferred outflows of resources Long-term liabilities outstanding Other liabilities
Total liabilities Deferred inflows of resources Net position:
Investment in capital assets Restricted Unrestricted Total net position

PRIMARY GOVERNMENT

GOVERNMENTAL ACTIVITIES

2024

2023

$ 66,488,115 1,234,495
67,722,610

55,116,798 1,416,292
56,533,090

2,140,697

3,266,538

6,526,531

7,356,396

5,198,652

4,288,255

11,725,183

11,644,651

286,420

630,036

BUSINESS-TYPE ACTIVITIES

2024

2023

3,255,538,835 -
3,255,538,835

2,790,548,092 -
2,790,548,092

-

-

-

-

8,972,867

5,121,834

8,972,867

5,121,834

-

-

TOTAL

2024

2023

3,322,026,950 1,234,495
3,323,261,445

2,845,664,890 1,416,292
2,847,081,182

2,140,697

3,266,538

6,526,531

7,356,396

14,171,519

9,410,089

20,698,050

16,766,485

286,420

630,036

1,234,495 48,831,805
7,785,404 $ 57,851,704

1,416,292 47,919,147
8,189,499 57,524,938

2,368,345,390
878,220,578 3,246,565,968

2,176,359,032
609,067,196 2,785,426,228

1,234,495 2,417,177,195
886,005,982 3,304,417,672

1,416,292 2,224,278,179
617,256,695 2,842,951,166

INCREASE (DECREASE)
% 16.7% (12.8%) 16.7% (34.5%) (11.3%) 50.6% 23.4% 100.0%
(12.8%) 8.7%
43.5% 16.2%

The completed audited financial statements are available at gefa.georgia.gov.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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2023 ANNUAL REPORT

FINANCIAL HIGHLIGHTS

FY2024 Statement of Net Position

ASSETS Cash Investments Due from other governments Internal balances Accrued interest receivable Loans receivable Other assets Net OPEB asset
Capital assets, net of accumulated depreciation Total assets

PRIMARY GOVERNMENT

GOVERNMENTAL ACTIVITIES
1,268,114 56,821,116
8,860,188 (1,038,520)
-- -- 3,037 574,180 1,234,495 67,722,610

BUSINESS-TYPE ACTIVITIES
14,402,071 1,297,188,401
16,843,313 1,038,520 3,121,413
1,922,944,622 495 -- --
3,255,538,835

DEFERRED OUTFLOWS OF RESOURCES Related to other postemployment benefits Related to pensions Total deferred outflows of resources

588,985

--

1,551,712

--

2,140,697

--

LIABILITIES Accounts payable and accrued liabilities Accrued payroll Due to other governments Unearned revenue Compensated absences, current Long-term liabilities:
Compensated absences, net of current portion Net OPEB liability Net pension liability Total liabilities

4,599,274 11,638 --
495,215 92,525
370,100 220,311 5,936,120 11,725,183

8,972,661 --
206 -- --
-- -- -- 8,972,867

DEFERRED INFLOWS OF RESOURCES Related to other postemployment benefits Related to pensions Total deferred inflows of resources

248,831

--

37,589

--

286,420

--

NET POSITION Investment in capital assets Restricted for:

1,234,495

Grant programs

2,892,466

Loan programs

45,332,151

OPEB items

607,188

Unrestricted

7,785,404

Total net position

57,851,704

57,851,704 The completed audited financial statements are available at gefa.georgia.gov.

--
-- 2,368,345,390
-- 878,220,578 3,246,565,968

2024 ANNUAL REPORT

TOTAL
15,670,185 1,354,009,517
25,703,501 --
3,121,413 1,922,944,622
3,532 574,180 1,234,495 3,323,261,445

COMPONENT UNIT
GA. ENVIRON. LOAN ACQ. CORP
782 80,265,652
156,157 --
34,154 10,112,219
-- -- -- 90,568,964

588,985

--

1,551,712

--

2,140,697

--

13,571,935 11,638 206
495,215 92,525
370,100 220,311 5,936,120 20,698,050

10,000 -- -- -- --
-- -- -- 10,000

248,831

--

37,589

--

286,420

--

1,234,495
2,892,466 2,413,677,541
607,188 886,005,982 3,304,417,672

--
-- -- -- 90,558,964 90,558,964

FINANCIAL HIGHLIGHTS

FY2024 Statement of Activities

FUNCTIONS/PROGRAMS: GOVERNMENTAL ACTIVITIES:
General government Water and wastewater Energy and environment Total governmental activities

EXPENSES

PROGRAM REVENUES

NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION

CHARGES FOR SERVICE

OPERATING

CAPITAL

GRANTS AND GRANTS AND

CONTRIBUTIONS CONTRIBUTIONS

GOVERNMENTAL ACTIVITIES

BUSINESS-TYPE ACTIVITIES

TOTAL

COMPONENT UNIT

10,979,411 9,308,284
16,399,347 36,687,042

-- 5,357,524
-- 5,357,524

6,507,536 17,527,913 16,546,188 40,581,637

-- (4,471,875)

-- 13,577,153

--

146,841

--

9,252,119

--

(4,471,875)

--

13,577,153

--

146,841

--

9,252,119

BUSINESS-TYPE ACTIVITIES:

Water and wastewater

24,969,516

-- 24,969,516

--

--

--

--

Storage tank maintenance

785,015 1,520,150

47,715

--

--

782,850

782,850

Outdoor stewardship and land conservation

22,593,543

--

32,599,797

--

--

10,006,254

10,006,254

General and administrative

151,808 30,298,628 406,964,348

--

-- 437,111,168 437,111,168

Total business-type activities

48,499,882 31,818,778 464,581,376

--

-- 447,900,272 447,900,272

Total primary government

85,186,924 37,176,302 505,163,013

--

9,252,119 447,900,272 457,152,391

COMPONENT UNIT:
Georgia Environmental Loan Acquisition Corporation
Total component units

16,235

428,002

4,100,990

--

16,235

428,002

4,100,990

--

--

4,512,757

--

GENERAL REVENUES: Unrestricted investment earnings Miscellaneous
Transfers Total general revenues and transfers Change in net position
Net position July 1 Net position June 30

3,255,957 1,040,428 (13,221,738)

-- 17,730 13,221,738

3,255,957 1,058,158
--

(8,925,353)

13,239,468

4,314,115

326,766 57,524,938 57,851,704

461,139,740 2,785,426,228 3,246,565,968

461,466,506 2,842,951,166 3,304,417,672

-- 11,845
--
4,524,602
4,524,602 86,034,362 90,558,964

The completed audited financial statements are available at gefa.georgia.gov.

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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2 002234 AANNNNU AULA LR ERP EOPR OT R T

FINANCIAL HIGHLIGHTS
2024 Revenues and Expenses

7%
92%

Fiscal Year 2024 Revenues
Operating Grants and Contributions Charges for Services and Other Revenue* Investment Earnings, Unrestricted
Total Revenues

$505,163,013 92%

$38,234,460

7%

$3,255,957

1%

$546,653,430 100%

* Includes restricted investment earnings

13%
19%

40%

27%

Fiscal Year 2024 Expenses
Water and Wastewater Outdoor Stewardship and Land Conservation Energy and Environment General Government Storage Tank Maintenance General and Administrative Total Expenses

$34,277,800 40%

$22,593,543 27%

$16,399,347 19%

$10,979,411 13%

$785,015

1%

$151,808

0%

$85,186,924 100%

2024 ANNUAL REPORT

ADMINISTRATION

HUMAN RESOURCES

LEGAL SERVICES

The Administration Division provides administrative support to staff, customers, and the board of directors; oversees office operations; and maintains the file management system for GEFA.

The Human Resources Division supports GEFA's workforce development, maintaining and communicating office policies, employee benefits and compensation, and training and awards programs.

The Legal Services Division functions as legal advisor to GEFA's business and personnel matters, including contracts, agreements, environmental and job safety standards, litigation, open records requests, and tax code requirements.

FINANCIAL SERVICES

INFORMATION TECHNOLOGY PUBLIC AFFAIRS

The Financial Services Division provides financial underwriting and loan servicing for Georgia communities. The division also ensures compliance with state and federal accounting policies by preparing and submitting financial reports, monitoring division accounts, and managing GEFA's budget.

The Information Technology Division develops GEFA's internal and external technical architecture, facilitates secure electronic access to information and services, and protects information systems and data.

The Public Affairs Division educates internal and external stakeholders about GEFA's infrastructure and financing programs, and state energy, land, and water conservation initiatives and policies.

BOARD OF DIRECTORS

Commissioner Scott Orenstein Chairman Lowndes County
Mayor Mike Young Vice Chairman City of McRae-Helena
Greg Griffin Secretary State Auditor
Mayor Jimmy Andrews City of Sandersville
Commissioner Eugene Cason Dooly County
Councilmember Christopher Hightower City of Barnesville

Commissioner Christopher Nunn Georgia Department of Community Affairs
Chairman Ted Rumley Dade County Board of Commissioners
Rick Story At-Large Member
Travis Turner At-Large Member
Commissioner Pat Wilson Georgia Department of Economic Development

SENIOR STAFF
Hunter Hill Executive Director
Judy Adler Director of Water Resources
Kristofor Anderson Director of Energy Resources
Tammi Fuller Director of Legal Services

Jammie Harden Director of Financial Services
Shane Hix Director of Public Affairs and Information Technology
Glendale Jones Director of Human Resources
Susan Lucki Director of Administration

*As of June 2024

GEORGIA ENVIRONMENTAL FINANCE AUTHORITY

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2024
ANNUAL REPORT
GEFA.GEORGIA.GOV O: 404-584-1000 | F: 404-584-1069 47 Trinity Ave S2W0,19FiAftNhNFUlAoLoRr,EAPOtlRaTnta,| GA1630334