GEFA news quarterly, Oct. 2013

GEFA NEWS QUARTERLY OCTOBER 2013 VOLUME XII

TABLE OF CONTENTS

Financing Energy Efficiency and

Renewable Energy Projects

1

The Fuel Storage Tank Program Protects Georgia's Land and Water 2

The Governor's Water Supply

Program Awards Funding

3

First State Agency Energy Performance

Contract Project Underway

4

FINANCING ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECTS
Communities interested in saving money and energy at their water, sewer and solid waste facilities have options in financing energy efficiency and renewable energy projects. GEFA, working to preserve a culture of conservation through its programs and initiatives, offers low-interest loans to local governments and authorities for energy efficiency and renewable energy projects at water and wastewater treatment plants, and municipal solid waste facilities.
Projects eligible for this funding include landfill gas reclamation projects, solar photovoltaic (PV) and thin film solar geo-membrane covers, wind and biomass projects, variable frequency drives and energy-efficiency measures, energy management systems and controls, biogas heat and power recovery systems, and infiltration and inflow projects that reduce pumping costs.
In March 2011, GEFA provided the city of Atlanta with a Clean Water State Revolving Fund loan for a project at the R.M. Clayton Water Reclamation Center, which provides wastewater treatment services for the city of Atlanta, part of Fulton County and north DeKalb County. The city added a combined heat and power recovery system for the anaerobic digester gas produced on site. The recovery system is designed to produce 11 million kilowatt hours (kWh) of renewable electricity per year, or approximately 16 percent of the electricity consumption of the plant, and is estimated to save as much as $1.2 million per year in energy cost savings.
Projects such as the upgrades at the R.M. Clayton Water Reclamation Center illustrate some of GEFA's work in protecting our state's water resources, as well as assisting with energy conservation. For more information, visit www.gefa.org.

The Flint River, Albany, Ga.

R.M. Clayton Water Reclamation Center, Atlanta, Ga. WWW.GEFA.ORG

GEFA NEWS QUARTERLY OCTOBER 2013 VOLUME XII

2

PROTECTING LAND AND WATER
THE FUEL STORAGE TANK PROGRAM
GEFA's Fuel Storage Tank Program (FSTP) supports a cleaner and healthier environment for all Georgians by inspecting stateowned underground fuel storage tanks (USTs) and providing training to tank operators. The FSTP also provides maintenance services for USTs and above ground fuel storage tanks (ASTs). The fuel storage tanks provide vehicle fueling, heating oil and emergency generator support at state facilities.
Malfunctioning fuel storage tanks pose a significant danger to the state's land and water resources. It's important to ensure that the tanks are working properly, and facility staff and fuel delivery companies are taking proper precautions.
Margie Walker-White, FSTP manager, has a key role in ensuring the safety and functioning of fuel storage tanks throughout the state. There are more than 300 underground storage tanks at more than 200 state-owned sites. The Georgia Environmental Protection Division (EPD) requires that facilities must adhere to certain rules, regulations and compliance issues. If violations are noted during EPD inspections, penalties can be assessed, including fines and facility shutdowns.
In early July, Walker-White inspected the USTs at Macon State Prison in Oglethorpe, Ga. to prepare for an upcoming EPD inspection. All USTs at state facilities are inspected by EPD every three years and the prison's tanks were last inspected in 2010.
In preparation for the visit, Walker-White reviewed the tank information provided by GEFA's tank monitoring system. All regulated tanks and piping must have release detection systems, which allow leaks to be quickly discovered before any contamination spreads. GEFA has installed tank monitoring system equipment at state facilities to assist with this task. The monitoring system compiles technical data on product levels and temperature, and performs weekly leak detection tests. She also reviewed the annual tank inspections, and the tank regulatory report that indicates if any leaks occurred or if any water or fuel was found in the tank sumps during the last three years.
When on a site visit, Walker-White logs into the tank monitoring system. She prints several reports to ensure that the system is working properly, and that it's connected to a working phone line. Sites must have a dedicated phone line in order to connect to the monitoring system.
Tanks are registered annually and a copy of the current certificate must be displayed at the site by January 1 of each year. WalkerWhite checks each site to ensure the certificate verifying current registration is clearly displayed on the dispenser for fuel delivery companies. Facilities aren't allowed to provide fuel if the site

isn't registered and the certificate displayed. Facilities must also have 36 months of compliance documents and testing reports on file at all times.

Walker-White also

checks to see the

Margie Walker-White examines fuel storage facility's UST operator

equipment at Macon State Prison,

is A/B certified and if the

Oglethorpe, Ga.

certified UST operator

has developed and

conducted C operator training for individuals that are responsible for

fueling vehicles or other equipment. She also checks the signature

forms verifying when the training was conducted and who received it.

Each location must maintain a written copy of the C operator training

and signature form for EPD review. GEFA provides individualized

onsite UST operator and regulatory compliance training, study

materials, compliance documents and testing, access to free A/B

operator certification and resources for UST operators. Currently,

there are more than 300 UST operators at state facilities.

At this point of the visit, Walker-White inspects the fuel tanks and equipment. She examines the dispensers and checks for leaks or malfunctioning pipes and equipment. She inspects the leak detection system and sensors in the tank sump, ensures there isn't water or fuel in the tank sump, and checks the sump walls for cracks. WalkerWhite also checks access ports and the vent lines and caps. The spill bucket, which prevents fuel from seeping into the ground, provides protection while fuel is being loaded into the tank and is examined for cracks and to ensure the overfill protection is in place and working. She looks for any needed repairs, contamination such as debris and water, and possible tampering with the equipment.

Walker-White can perform small repairs such as removing water from tank sumps, and clearing alarms and adjusting sensors, which can save a facility hundreds of dollars. She also assists the facility to ensure they remain in compliance. Before leaving a site, WalkerWhite identifies the steps needed to ensure deficiencies noted in the inspection are corrected.

The FSTP was established in 1995 in response to federal construction and maintenance standards for fuel storage tanks and serves as the central management office for state agencies and institutions owning fuel storage tanks. The FSTP's role was expanded in 2004 to include operation oversight and maintenance of all state-owned ASTs and USTs. For more information on tank maintenance, regulatory inspections, operator training, environmental monitoring, remediation

and tank closures, visit www.gefa.org.

WWW.GEFA.ORG

3

GEFA NEWS QUARTERLY OCTOBER 2013 VOLUME XII
THE GOVERNOR'S WATER SUPPLY PROGRAM AWARDS FUNDS TO FOUR COMMUNITIES
The GEFA board of directors awarded four communities $39 million in Georgia Reservoir and Water Supply Fund loans through the Governor's Water Supply Program in August. The Governor's Water Supply Program, an initiative launched by Gov. Nathan Deal in January 2011, helps local governments finance water supply infrastructure. Adequate water supply is critical to the state's economic growth and prosperity, as well as the public's health and safety. Georgia has proactively sought solutions to the water supply issue, including developing new water sources and promoting water conservation. By ensuring adequate supply through both new water sources and conservation, Georgia's water needs can be met. The city of Auburn obtained a $7,348,100 loan, which will finance converting an existing rock quarry to a pumped-storage drinking water reservoir, and constructing a water treatment plant, associated pump stations, pipelines and storage tank. This project, located on the Mulberry River, will provide 1 million gallons of drinking water per day to the city, and an additional 1.5 million gallons per day of drought protection capacity. The Carroll County Water Authority obtained a $9,070,000 loan to finance land acquisition costs associated with the Indian Creek Reservoir project, which includes expanding the storage of an existing flood control dam on Indian Creek in the Tallapoosa River Basin. The reservoir will be filled initially with water pumped from Indian Creek, then Little Tallapoosa River in the future, and will yield 18 million gallons per day when complete. Forsyth County obtained an $800,000 loan to finance testing, permitting and developing groundwater wells for water supply infrastructure, with an estimated yield of 1 million gallons per day. Paulding County obtained a $21,600,000 loan to finance constructing a 305-acre pumped-storage reservoir on Richland Creek in northern Paulding County, with a pump intake on the Etowah River. The reservoir will have a projected yield of 35 million gallons per day.
Hickory Log Creek Reservoir, Canton, Ga
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GEFA NEWS QUARTERLY OCTOBER 2013 VOLUME XII

4

STATE'S FIRST STATE AGENCY ENERGY PERFORMANCE CONTRACT UNDERWAY

In August 2013, the Georgia Department of Corrections contracted with Johnson Controls to implement energy and water conservation measures at Phillips State Prison in Buford, Ga. The measures were identified during the Investment Grade Energy Audit conducted earlier in the year. An Investment Grade Energy Audit is a comprehensive analysis tool that determines the practicality of implementing energy and water conservation measures at a facility, as well as the financial feasibility of entering into an energy performance contract. This project is the first energy performance contract at a state agency.
Phillips State Prison in Gwinnett County was constructed in 1988, and houses more than 900 inmates. Johnson Controls, through a number of analysis methods at the facility, recommended electronic controls to reduce water consumption and monitor use; new heating and domestic hot water boilers; a new chiller and other improvements to the HVAC systems such as a new building automation system; improved interior lighting; new ice machines in the kitchens to replace existing equipment; and updates to the laundry systems.
Phillips State Prison and Johnson Controls are expecting substantial energy and water savings. The energy conservation measures are projected to save 621,129 kWh of electricity and 149,411 therms of natural gas. Electricity consumption will be reduced by 15.5 percent and natural gas use will be reduced by 43.4 percent. The total amount of energy that will be saved (kWh of electricity and BTU of natural gas) is equal to the amount of energy that 190 typical Georgia homes use in a year. The water conservation measures are projected to save the facility 27,945,000 gallons of water annually (a 38.7 percent reduction), which is enough water to fill approximately 42 Olympic-size swimming pools. Guaranteed savings are estimated to be $445,579 in the first year. Over the 15year term of the contract, the guaranteed savings will exceed $7.3 million. The total project cost is $4.5 million.
In November 2010, Georgia voters overwhelmingly approved a constitutional amendment allowing energy performance contracting, permitting the state to use funds normally spent on utility bills to finance building improvements designed to lower energy consumption. The state goes through an open, competitive process to choose an energy services company to implement energy efficiency measures at state facilities that choose to participate. The energy services company selected must guarantee that the state will save a certain amount of money with the installation of modern,

Phillips State Prison, Buford, Ga.
energy- and water-efficient equipment and systems. Rather than having to appropriate all the funds in one year, the state uses the guaranteed savings to repay the energy services company for its work over a period of years. As a result, state agencies will be able to finance necessary energy and water improvement projects Energy performance contracting will also help the state meet its commitment to the Georgia Energy Challenge and reduce energy consumption by 15 percent in state facilities. For more information on energy performance contracting, visit www.gefa.org.
233 Peachtree Street NE Harris Tower, Suite 900 Atlanta, Georgia 30303
404-584-1000 (Main) 404-584-1069 (Fax)
www.gefa.org
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