GEFA news quarterly, Vol. 1, 4th. Qtr. 2008

GEFA News

Georgia Environmental Facilities Authority

QUARTERLY

233 Peachtree Street, NE Harris Tower - Suite 900

WATER ENERGY LAND FUEL VOLUME 1, FOURTH QUARTER 2008

Atlanta, Georgia 30303-1506

Tel: 404.584.1000

www.gefa.org

Letter From The Executive Director





















































As Georgians, we are lucky to live in a state with abundant natural resources. However, as our battle against the drought illustrates, Georgia's natural resources are not unlimited.
e drought not only highlights the need to conserve water but also the interrelationship between land, water and energy conservation. In addition, Georgia's population growth has put increasing demands on Georgia's land, water and energy resources. Georgia's growth is not expected to slow down anytime soon -- in 2030, the state's population is projected to be more than 12 million. It is important that we all start protecting our natural resources for future generations by adopting and promoting energy efficiency and water conservation, protecting our land through land conservation, encouraging litter prevention and recycling, and by using locally produced biofuels and bioenergy.
Governor Perdue recently created two new initiatives in Georgia Conserve Georgia and the Governor's Energy Challenge. Conserve Georgia seeks to instill in all Georgians an ethic of

stewardship and conservation, and inform Georgia's citizens about state programs that can assist them in creating a culture of conservation. e Governor's Energy Challenge focuses on reducing energy usage through conservation and efficiency.
e Governor's Energy Challenge is a realization of the commitment Governor
Perdue made in the State Energy Strategy. By holding state government accountable and by leading by example, Georgia can move towards reaching our energy goals. One of the main aspects of the Governor's Energy Challenge is Governor Perdue's commitment to reduce energy consumption in state facilities 15 percent by 2020.

Such a reduction will save the state 1,588,841,958,662 BTUs of energy by 2020 (which is the equivalent of powering 33,511 Georgia households for a year) and save state taxpayers more than $9 million annually. e Governor is challenging Georgia's citizens, businesses and local governments to match the
state's efforts. Meeting this goal will reduce Georgia's dependence on traditional energy sources, support local economies, promote energy independence, grow the state's alternative fuel and energy efforts, and improve the environment. If anyone or any organization wants to know how
Cont'd on page 6

GEFA News Quarterly
Division Reports

WATER RESOURCES
GEFA's Environment Division recently changed its name to the Water Resources Division to better reflect its growing role in supporting water supply projects in Georgia. e Water Resources Division will continue to provide financing for solid waste and sewer projects.
e GEFA Board recently approved nearly $81 million in water resources loans and grants to 18 communities during the fourth quarter. is successful final quarter brings the Division's infrastructure financing total to $281 million for 64 projects for FY2008.
In addition, Water Resources announced a new grant funding opportunity for local governments and water and sewer authorities interested in developing reservoir and water supply projects. e Georgia Water Supply Competitive Grant Program will provide $40 million in grant funding throughout the state to assist local governments and eligible authorities in their efforts to improve water supply and in making their water supply more resistant to periods of droughts. Eligible projects include system interconnections, drilling of new wells, inactive well reopening, lowering of intakestructure/pipes, expansion of existing water supply or flood control reservoirs, conversion of flood control or recreational reservoirs to water supply reservoirs or the establishment of new water supply reservoirs. GEFA also plans to fund innovative projects including state-ofthe-art water conservation initiatives, advanced leak detection projects, storm water treatment and recycling for water supply and grey water reuse. e application and program guidelines for this grant program can be found on GEFA's website at www.gefa.org.
ENERGY
As part of the Conserve Georgia cam-
paign announced by Governor Perdue in April, the Division of Energy Resources unveiled a new Conserve Georgia

initiative called the Governor's Energy Challenge (GEC). Under the Governor's Energy Challenge, Governor Perdue committed state facilities to reducing energy consumption 15 percent below 2007 consumption levels by 2020 and challenged Georgia's residents, businesses and local governments to reduce their energy consumption by 15 percent. On the GEFA website, www.gefa. org, energy consumers in all sectors can find tips for reducing energy consumption, links to helpful websites, case studies and other helpful information. Consumers can also "Take the Governor's Energy Challenge" online by committing to measure and track their energy saving actions and results. As the program grows, more assistance and resources will be available to those who decide to take the challenge.
rough the ongoing evaluation of state utility bills using EnergyCAP software, the State Utilities Program is able to identify significant saving opportunities for various state departments and programs. Going forward, the Division will continue to work with these agencies to explore saving
opportunities.
FST
e Fuel Storage Tank Division issued a bid package for written qualifications and proposals from fuel service industry contractors to provide inspection and maintenance services for all state-owned fuel storage tanks. e new contract, which took effect on July 1, 2008, will introduce a more comprehensive and longer-term program. is new program will help GEFA maintain and improve on its already high level of significant operational compliance (92%).
During the fourth quarter, approximately 84 underground storage tanks were removed from locations in 27 different counties. All required tank removals are expected to be completed by late summer. Remediation activities continued on multiple sites around the state.
FINANCE
NLS, the new loan servicing system, is now up and fully functioning with the completion of the final account conversion

on June 28. e final steps of report automation and general ledger system integration will be completed by end of July.
Beginning with the 2008 fiscal year, GEFA will fall under new auditing standards (SAS No. 112) which provide for increased scrutiny of internal controls over financial reporting. e Accounting Department has taken various measures over the past two years through continuous process improvement, education and by raising internal control awareness to management and staff in response to the new standards.
LAND CONSERVATION
At its April meeting in Bainbridge, the Land Conservation Council approved funding for projects in Decatur, Dougherty, Grady and Harris Counties and the City of Sandy Springs.
ese five projects will permanently protect a combined 5,680 acres of land using $3.3 million in grant funds and $5 million in loan funds.
rough its Landowner Legacy initiative, the GLCP contacted every large landowner in the state (1,000 acres or more) about participating in land conservation. GLCP Director Curt Soper remained busy giving numerous presentations to key audiences, including tax assessors, accountants and local government officials as well during this past quarter.
Program staff has also undertaken the revision of GLCP rules to comply with HB 1176 and HB 1274. e revisions will allow more state agencies to apply for GLCP grants and make loan funds available to both state agencies and non-government organizations. e Tax Credit Program will also now cover less-than-full, or "bargain", sales of property and conservation easements.

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GEFA News Quarterly
Miscellaneous

Tips and Facts

Southeast Bioenergy Conference
e 2008 Southeast Bioenergy Conference will be held at the University of Georgia Tifton Campus Conference Center, August 12 14. e 2007 Southeastern Bioenergy Conference was a tremendous success with nearly 600 attendees and this year promises to be even better.
e 2008 conference will be hosted by the University of Georgia in collaboration with the Georgia Centers of Innovation. Industry leaders will discuss such topics as waste to energy, carbon markets, future farmstead, managing financial risk, green cities, Brazil's fuel independence, fuel quality and distribution challenges, water and weather, legislative and regulatory updates, forestry fuel resources, and much more.
Featured speakers at the 2008 Conference include Ron Fagan, president and CEO of Fagen, Inc. (one of America's leading green energy design-builder companies,) Dr. Gale Buchanan, Under Secretary of the U.S. Department of Agriculture, and Georgia Governor Sonny Purdue.
For more information and online registration visit: www.sebioenergy.org

GEFA Wins the SCCP Award!

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Gas Saving Tips:
With record high crude oil and gasoline prices, Georgians
are looking for more wasys to save at the pump. Below are
some money-saving gas tips from the National Association
of State Energy Officials (NASEO) and the Alliance to Save
Energy.
Fuel e ciency tips for drivers include:
Drive sensibly: Speeding, rapid acceleration (jackrabbit starts), and rapid braking can lower gas mileage by 33 percent at highway speeds. Drivers can save up to 80 gallons of gasoline ($302) by driving sensibly on the highway. Around town, sensible driving can save five percent, up to 30 gallons of gasoline ($113). Choose the right vehicle: If you own more than one vehicle, drive the one that gets better gas mileage whenever possible. Reduce trunk loads: An extra 100 pounds in the trunk cuts a typical vehicle's fuel economy by up to two percent. Removing an extra 100 pounds of unneeded items from your trunk can save up to 12 gallons of gasoline per year ($45). Decrease speed: Gas mileage usually decreases rapidly over 60 miles-per-hour (mph). Each five mph over 60 equates to paying an additional 20 cents per gallon for gas. Avoid idling: Idling gets zero miles per gallon. Cars with larger engines typically waste more gas while idling than cars with smaller engines. Inflate your tires: Keeping tires properly inflated improves gas mileage by approximately three percent, saving up to 20 gallons of gasoline ($75). Tune up: Fixing a car that is noticeably out of tune or has failed an emissions test can improve its gas mileage by an average of four percent, saving up to 25 gallons of gasoline ($94). Fixing a faulty oxygen sensor can improve mileage by as much as 40 percent (saving up to 250 gallons or $945) Select the right oil: Using the manufacturers recommended gradeofmotoroil,includingrefinedmotoroil,improvesgasmileage by one to two percent, an annual savings of more than $40.

Commute alternatives are also a useful way to conserve fuel, including telework, carpool and transit options, and flexible work schedules. More information is available about com-
mute alternatives at www.cleanaircampaign.com.

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GEFA News Quarterly
Program Profile

State Water Plan and Water Supply Grant Program
Against the backdrop of one of the state's worst droughts on record, the Georgia General Assembly and Governor Sonny Perdue took important steps this year toward improving Georgia's water supply. In February, just three weeks into the 2008 legislative session, the General Assembly passed and Governor Sonny Perdue signed House Resolution 1022, ratifying Georgia's first-ever comprehensive state-wide water management plan. Later in the session, the General Assembly and the Governor authorized GEFA to provide $40 million in grants and $30 million in loans to Georgia communities looking to develop reservoirs, wells and other water supply projects. In addition to these budget provisions, the General Assembly and the Governor approved Senate Bill 342, the Water Conservation and Drought Relief Act.
Comprehensive State-wide Water Management Plan
e passage of Georgia's state water plan represents a critical step toward a new water future for Georgia marked by coordinated and comprehensive management of the state's water resources.
e 2004 legislation that initiated the water planning process called for the resulting plan to manage Georgia's water resources in a sustainable manner that would also support the state's economy, protect public health and natural systems, and enhance the quality of life for all citizens. is vision guided the development of the plan and continues to guide the plan's implementation.
e Comprehensive State-wide Water Management Plan recognizes the need to develop a better scientific understanding of the availability and resilience of the state's water resources and to produce projections of the demands for those water resources (both for supply and waste elimination) into the future. e assessment of the state's water resources

must be balanced against the demand

forecasts in order to understand what

Georgia needs to do to ensure the

long-term sustainability of our water re-

sources. But, this balancing act will look

different in each region in the state. In

recognition of the various regions of the

state, the Comprehensive State-wide Water

Management Plan avoids a one-size-fits-

all approach and, instead, establishes a

regional water planning process that will

culminate in ten regional Water Devel-

opment and Conservation plans.

Initial implementation of the Com-

prehensive State-wide Water Management

Plan involves work in three main areas:

Water resource assessments will

provide the scientific basis for under-

standing how much water is available

from each river basin and aquifer in the

state and how much waste communi-

ties can discharge into rivers without

compromising water quality. Over the

next 18 to 24 months, Georgia's Envi-

ronmental Protection Division (EPD)

will develop the Water Resource Assess-

ments using both EPD staff and contract

resources.

Economic and population forecast-

ing will help us better understand the

future water supply and waste elimina-

tion needs of Georgia's communities. In

coordination with other agencies, EPD

will develop a forecast of population

and economic activity for all the regions

of the state. e development of the

forecast will begin this summer and last

into late 2009.

Regional planning serves as the

engine of the State Water Plan. e Plan

defines ten new water planning regions

in the state but provides an opportunity

for counties at the border of the regions

to seek reassignment to another water

planning region. e process for final-

izing these boundaries was completed in

July 2008. e state is now embarking

on the process of establishing the re-

gional Water Planning Councils for each

region. e Water Planning Councils

will direct the planning efforts for their

respective planning regions and develop

regional Water Development and Con-

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servation Plans. Currently, the appointing authorities, the Governor, Lieutenant Governor and Speaker of the House, expect to announce the final council appointments by the end of 2008.
Georgia Water Supply Program at GEFA
In response to the passage of Senate Bill 342 and the amended FY2008 and FY2009 appropriations acts, GEFA made several important changes that will allow GEFA to better support local governments with their efforts to make local water supplies more resistant to periods of drought. In May, the GEFA Board established the Georgia Reservoir and Water Supply Fund. is fund, as legislated in SB342, will fund the water supply grants and loans that GEFA offers to local communities for reservoirs, wells and other water supply projects. Additionally, GEFA developed and launched the Georgia Water Supply Competitive Grants program and has already begun receiving grant applications. GEFA expects to award the full $40 million of available grant funds by November of this year. In tandem with these grants, GEFA will make low-interest loans to communities for water supply projects. In the near future, GEFA will collaborate with EPD and other state agencies to develop a "one stop shop" to assist communities in their efforts to develop new water supply projects.

GEFA News Quarterly
Event Highlights

New Silver Lake Wildlife Manage- Eleven E85 Pumps Open in

ment Area

Metro Atlanta

On April 24, 2008, Governor Perdue joined a crowd of wellwishers in Decatur County to celebrate the creation of the new Silver Lake Wildlife Management Area and the launch of the Conserve Georgia initiative. Introduced by GEFA Executive Director Chris Clark as Georgia's "Conservation Governor" and speaking to an audience of local residents, county officials, member of the media and conservationists on the shore of Silver Lake, Perdue extolled the project as "a giant step towards a cleaner, more sustainable Georgia." He also made a call for all Georgians "to spread the word about conservation" through the Conserve Georgia program an education and outreach campaign aimed at supporting a "cultural change" towards more responsible environmental stewardship.
e Governor's press conference closely followed the quarterly meeting of the Georgia Land Conservation Council in nearby Bainbridge. At this meeting, the Council approved a $3 million loan to Decatur County for the preservation of the Silver Lake tracts.
e Silver Lake project area contains more than 8,400 acres of longleaf pine forest, red-cockaded woodpecker habitat and pristine fishing waters adjoining the existing Lake Seminole Wildlife Management Area in southwest Georgia. e project was facilitated and funded in partnership with the Georgia Department of Natural Resources, Decatur County and e Conservation Fund as well as many other public agencies and private foundations.

Owners of flex fuel vehicles (FFVs) now have more fuel choices in Metro Atlanta. Eleven gas stations throughout the metro area opened new E85 pumps in early June. e stations are located in Atlanta, Buford, Doraville, Dunwoody, Lawrenceville, Conyers, Fayetteville, Jonesboro, Rex, Stone Mountain and Union City.
E85 is a mixture of 85 percent ethanol and 15 percent gasoline and can be used in FFVs. Record gas prices highlight the nation's dependence on foreign energy sources, but E85 is a cleaner fuel that can be produced in Georgia. Ethanol and the availability of E85 will play a central role in Georgia meeting its goal to produce 15 percent of the state's transportation fuels by 2020 from locally produced alternative fuels.
GEFA assisted with the financing of the pumps through the competitive E85 Retail Infrastructure Grant program.
e pumps were installed through a collaborative effort between GEFA, the Atlanta Clean Cities Coalition, Protec Fuel Management and CleanFUEL Distribution, the Ethanol Promotion and Information Council (EPIC), Enterprise Renta-Car, Chrysler, SAFA Express, and Indore Oil.
Ethanol is not only a cleanerburning fuel, but it will also provide an economic stimulus to rural areas of Georgia. Rural Georgia is recognized for its tremendous biomass production potential and it is that biomass that can be used to create ethanol. e second round of applications begins on July 21, 2008, with plans to address areas currently underserved, such as Augusta, Athens, the I-75 corridor in Marietta, the I-95 corridor, and others.

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GEFA News Quarterly

Letter from the Executive
Director (Cont'd)
they can help conserve the state's natural resources, they can visit www.conservegeorgia.org to access information about conservation and Georgia's conservation programs.
Georgia is already recognized for our bioenergy efforts, our conservation initiatives, and our incentive based vs. mandate approach to dealing with our energy needs. e research and commercialization of alternative energy is at the forefront of Georgia's strategic goals. To further develop the state's focus on alternative energy, Governor Perdue created the Energy Innovation Center (EIC). e EIC's goal is to recruit and promote industries focused on producing energy from clean and renewable sources. Companies concentrating on every aspect of energy development will be able to find a streamlined and pro-active business environment in Georgia. Due to the Governor's foresight and leadership, Georgia is planning ahead and taking the necessary steps to balance today's needs with tomorrow's obligations by fostering the wise use and

conservation of our state's natural resources. While the state is making great progress in energy
conservation, government alone is not the answer. As the citizens of Georgia, it is our actions the many individual and seemingly unrelated steps - that lead to a big impact rather than one "silver bullet." If every home in Georgia replaced one incandescent light bulb with an ENERGY STAR qualified CFL, it would save enough energy to light more than 67,300 homes for a year. If one household in 10 were to improve its energy efficiency by 30 percent nationwide, U.S. homeowners would save $4 billion and keep 69 billion pounds of greenhouse gases out of the air each year.
Conserve Georgia is about creating a culture of conservation. It is about changing how we live our lives at home, the office and in other areas, changes that are not regulated by the government, that can really make a difference.

New U.S. Citizen Regina Jones
On June 5, 2008, GEFA employee Regina Jones took the oath of allegiance and became a U.S. citizen. Regina is an Accountant III in the Accounting and Finance Division and joined GEFA in February 2002. To become a U.S. citizen, an applicant must not only establish permanent residence in the U.S. but must meet several other requirements such as showing he or she is a person of
good moral character and demonstrate a "knowledge and understanding of the fundamentals of the history of the principles and form of government of the United States."
e entire citizenship application and review process took almost one year for Regina to complete. At the ceremony more than 42 countries were represented. GEFA congratualtes Regina Jones on this major accomplishment!

Summer Intern Matt Berry
Matt Berry has been hired as our summer intern through the Governor's Internship Program. Matt has worked on
several projects and visited a few work sites to further expose him to the various projects GEFA helps to fund. He has proven to be a very valuable asset to GEFA the past two months. Matt started with GEFA on May 14, 2008.
Matt is a student at University of Georgia majoring in political science. He received the Presidential Scholar Award in the Spring of 2006. He expects to graduate in May 2009.

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GEFA News Quarterly
New Employees
Alfreda Reynolds recently joined GEFA as the data management associate for the Energy Division. Alfreda originally started at GEFA as a temporary from employment firm Staffing Resources. Alfreda is in charge of maintaining the EnergyCap database. She currently generates regular and ad hoc reports for management, staff, and outside customers. Prior to GEFA, Alfreda was employed with Federated Department Stores working at Macy's headquarters for the Southeast Division. She was the executive assistant to the vice president of marketing and merchandising for six years. Alfreda started with GEFA on May 12, 2008 as a full-time employee.
David Dunagan started with GEFA on April 1, 2008 as the renewable energy program manager for the Georgia Energy Innovation Center. His current focus is the expansion of production and use of renewable biofuels in the state. For six years, David served as project officer for the transportation and biomass programs for the Southeast Regional Office of the U.S. Department of Energy (DOE), prior to its closure in an agency reorganization. David graduated from Mississippi State University with a bachelor's degree in forest resources in 1977, and worked for nine years with the U.S. Department of Agriculture's Forest Service. David received a master's degree in public policy (with an environmental concentration) from the Georgia Institute of Technology in March 1998.
John Martin has been hired as the information technology director. John previously worked for Earthlink, Inc. as the director of IT service management prior to joining GEFA. John has more than nineteen years experience leading professionals in the design, implementation, quality, operation and maintenance of information technology products, services, processes and systems. He successfully managed several enterprise-critical projects including the largest ever credit card portfolio conversion (more than 12 million accounts.) John holds a master's degree in business administration from Wesley College and earned his bachelor's degree in information systems management with a concentration in executive leadership from the University of Maryland.
Andrew Szwak joined GEFA on April 21, 2008 as the land conservation program manager. He recently relocated to Georgia from New Jersey where he spent more than five years working for the Morris Land Conservancy. Andrew studied environmental sciences at the University of Notre Dame and recently completed his master's degree in city and regional planning at Rutgers University. He brings a passion for conserving our natural resources to his role.

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GEFA News Quarterly
Success Stories/Awards and Recognitions

For the 22nd year in a row, GEFA is being nationally recognized for the quality of its financial reporting.

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GEFA Board of Directors
Commissioner J. C. Warren, Chairman
Screven County Board of Commissioners
Mayor Matt Beasley, Vice Chairman
City of Hartwell
Russell Hinton, Secretary
State Auditor
Mayor Jimmy Andrews
City of Sandersville
Mike Beatty
Commissioner, Department of Community Affairs
Commissioner Harold W. Carlisle
Monroe County Board of Commissioners
Commissioner Eugene Dyal
Bacon 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
Chris Clark
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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