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 3 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 5 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 7 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 9 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 11 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 13 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 15 2024 ANNUAL REPORT GEFA.GEORGIA.GOV O: 404-584-1000 | F: 404-584-1069 47 Trinity Ave S2W0,19FiAftNhNFUlAoLoRr,EAPOtlRaTnta,| GA1630334