State of Georgia Clean Water State Revolving Fund Program 2011 annual report

STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM
2011 ANNUAL REPORT
Prepared by the GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
For the U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IV
September 30, 2011
PLEASE NOTE that this report does not constitute nor is it suitable for use as an official financial statement. This report is not prepared by an independent auditor or accountant, and is provided for informational purposes only.

CLEAN WATER STATE REVOLVING FUND ANNUAL REPORT TABLE OF CONTENTS STATE FY 2011
INTRODUCTION ........................................................................................ 1
EXECUTIVE SUMMARY ............................................................................ 1
ADDITIONAL SUBSIDIZATION PROJECTS ............................................... 2
ATLANTA (CWSRF 10-002) ...................................................................................................................................... 2 COBB COUNTY (CWSRF 07-001(4)) ......................................................................................................................... 3 CORNELIA (CWSRF 09-039) ..................................................................................................................................... 3 DUBLIN (CWSRF 09-084) ......................................................................................................................................... 3 FORSYTH COUNTY (CWSRF 10-005) ........................................................................................................................ 3 HINESVILLE (CWSRF 10-006)................................................................................................................................... 3 LAFAYETTE (CWSRF 09-087)................................................................................................................................... 4 NASHVILLE (CWSRF 10-001) ................................................................................................................................... 4 OCONEE COUNTY (CWSRF 09-062).......................................................................................................................... 4
GREEN PROJECTS ..................................................................................... 4
ATLANTA (CWSRF 09-092) ...................................................................................................................................... 4 PINE LAKE (CWSRF 09-021)..................................................................................................................................... 5
BASE CWSRF PROJECTS ........................................................................... 5
AUGUSTA-RICHMOND COUNTY (CWSRF 09-096) .................................................................................................... 5 MEIGS (CWSRF 05-001) ........................................................................................................................................... 5
AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) PROJECTS . 5
VALDOSTA (CWSRF 08-003(2)) ............................................................................................................................... 5
LAND CONSERVATION PROJECTS ........................................................... 6
EUHARLEE (LC2010009) ........................................................................................................................................... 6
MEETING IUP GOALS AND OBJECTIVES.................................................. 6
PROGRAM ADMINISTRATION (4 PERCENT) ............................................ 7
CWSRF NON-PROGRAM INCOME ............................................................. 7
DBE PARTICIPATION ................................................................................ 7
CWSRF LOAN DISBURSEMENTS .............................................................. 8
CWSRF STATE MATCH ............................................................................. 8
CWSRF LOAN REPAYMENT ...................................................................... 9
ASSURANCES AND SPECIFIC PROPOSALS............................................... 9

LIST OF ATTACHMENTS
ATTACHMENT 1: SOURCES AND USES OF FUNDS BY QUARTER .................................................................................... 11 ATTACHMENT 2: CWSRF REPAYMENT ACCOUNTS ..................................................................................................... 11 ATTACHMENT 3: COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE ........................................................... 12 ATTACHMENT 4: BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE ...................................... 13 ATTACHMENT 5: ADMINISTRATIVE EXPENSES BY CATEGORY ..................................................................................... 14 ATTACHMENT 6: DBE UTILIZATION ............................................................................................................................ 15 ATTACHMENT 7: DISBURSEMENT OF CWSRF FUNDS BY QUARTER ............................................................................ 16 ATTACHMENT 8: COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS ..................................................... 17 ATTACHMENT 9: PROJECTS INITIATING OPERATION .................................................................................................... 18 ATTACHMENT 10: PERFORMANCE RESULTS OF CWSRF PROJECTS FUNDED ............................................................... 19

STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM
STATE FY 2011 ANNUAL REPORT

INTRODUCTION
The Clean Water State Revolving Fund (CWSRF) program provides assistance to wastewater, nonpoint source, and estuary projects for the improvement of water quality in Georgia as aligned with the objectives of the Federal Clean Water Act of 1972, as amended. A broad range of water quality and wastewater treatment projects are covered by this program such as projects for the construction or expansion of wastewater treatment facilities and installation of sewer lines and sewer rehabilitation. As required by Chapter 40 of the Code of Federal Register, Part 31.3165, Subpart K, Section 606(d), and Chapter 6 of the CWSRF Management Manual of December 1988, the Georgia Environmental Finance Authority (GEFA) submits this annual report for the state fiscal year ending June 30, 2011. This report provides detailed information concerning the management and fiscal integrity of this program along with any changes to the program, or updates to the program's goals and objectives in relation to the 2010 Intended Use Plan (IUP) submitted in June 2010 and the 2010 capitalization grant awarded in September 2010. This report also discusses aspects of the Procedures for Implementing Certain Provisions of EPA's Fiscal Year 2010 Appropriations Affecting the CWSRF Program and the related requirements.
The Georgia Environmental Finance Authority was created by the Georgia General Assembly in 1986 as the successor agency to the Georgia Development Authority Environmental Facilities Program. GEFA serves as the central state agency for assisting local governments in financing the construction, extension, rehabilitation and replacement and securitization of public works facilities. The governor of Georgia appoints eight members to the GEFA board of directors and three ex-officio members are designated by the Authority's enabling legislation. The Georgia Environmental Protection Division (EPD) provides certain construction management and professional services for the CWSRF Program. These services include: project reviews and approvals; planning; project development; information tracking; information gathering and development of the National Needs Survey; project ranking; issuing Notices of No Significant Impacts (NONSI) and Categorical Exclusions (CE); construction management; Disadvantaged Business Enterprise (DBE) requirement; compliance project inspections; and assistance with the National Information Management System (NIMS) as well as the Clean Water Benefits reporting database.

EXECUTIVE SUMMARY

In June of 2010, GEFA submitted an IUP and application for the 2010 CWSRF grant. The 2010 grant was awarded in September 2010 for $34,449,000. The state also provided the required 20 percent match of $6,889,800. Funds received to date by Georgia's CWSRF Program from EPA total $627,067,370 with an additional $33,177,870 in funds transferred from the DWSRF Program. Georgia's required state match to date totals $111,877,309 for a grand total of $772,122,549.
Attachment 1 displays the total sources of funds by quarter during state FY 2011 such as Federal grant funds, state match contributions, repayments from direct Federal loans, repayments from state match loans, and interest earnings generated from these accounts. Attachment 1 also shows the

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closing fees collected by quarter identified as Program Income and Non-Program Income. Georgia reports the collection of Program Income and Non-Program Income separately in accordance with the EPA Fee Guidance released in October 2005. Currently, some Non-Program Income is used to fund EPA-approved portions of the Comprehensive Statewide Water Management Plan implementation effort. Attachment 1 also displays the use of funds by quarter. Attachment 2 displays the balances within these accounts as of June 30, 2011.
The CWSRF Program executed 13 new loans in state FY 2011 and provided increases to three existing loans. One of the increases entailed an additional $1,200,000 in ARRA funds. The CWSRFARRA administrative funds were not drawn down as fast as CWSRF-ARRA project funds so GEFA reclassified exactly $1,200,000 in CWSRF administrative funds to Project Funds and provided these dollars to an existing ARRA project for the city of Valdosta. Attachment 3 provides a list of all loans executed in state FY 2011. Several of these loans were made consistent with the requirements of the 2010 grant by providing additional subsidization funds in the form of principal forgiveness and well as funds to meet the Green Project Reserve requirement. The 2010 additional subsidization minimum for the CWSRF program was $5,159,367. Attachment 3 shows that the CWSRF program provided $6,340,286.15 in principal forgiveness and has met this requirement as of June 30, 2011. The 2010 Green Project Reserve minimum for the CWSRF program was $6,889,800. Attachment 3 shows that the CWSRF program provided $8,375,000 to Green projects and has met the Green Project Reserve requirement as of June 30, 2011. Attachment 4 displays information about these 15 projects in the format of the National Information Management System (NIMS). Lastly, GEFA and EPD have collectively entered all necessary information into the Clean Water Benefits reporting database for all projects funded through state FY 2011.
All commitments were made to qualified local governments or water and sewerage authorities according to the requirements of the Georgia Department of Community Affairs (DCA) and all possess a verified Service Delivery Strategy approved by DCA. Additionally, all loan recipients have the technical, managerial, and financial capability to operate a sewer system. Each project was also reviewed in accordance with the EPA-approved State Environmental Review Process (SERP) and was issued a Notice of No Significant Impact (NONSI) or Categorical Exclusion (CE). All CWSRF projects completed a 4700-4 Certification Form and subsequently had that form approved by EPA. Below is a short write-up for each of the projects funded in state FY 2011. Additionally, Attachment 10 provides some environmental outcomes of each of the projects funded over and above the info provided in the Clean Water Benefits Reporting Database.

ADDITIONAL SUBSIDIZATION PROJECTS
Atlanta (CWSRF 10-002) On March 1, 2011, Atlanta signed a $40,000,000 loan agreement including $750,000 in principal forgiveness to: 1) Replace the East Point Trunk line with approximately 14,615 LF of new sewer ranging from 8" to 42"; 2) Rehabilitate the sanitary sewer in Sewer Group 3; 3) Provide sewer capacity relief in portions of the South River Basin North with approximately 12,600 LF of gravity sewer pipe; and 4) Provide sewer capacity relief in portions of the South River Basin South with approximately 9,300 LF of gravity sewer pipe. This project will assist the city of Atlanta comply with its outstanding consent order to provide water quality improvements to the Chattahoochee River. As of the end of state FY11, Atlanta has yet to draw any of the funds.

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Cobb County (CWSRF 07-001(4)) On February 23, 2011, Cobb County signed a $25,000,000 loan agreement including $750,000 in principal forgiveness for phase 4 of a 30,000 foot long, deep rock tunnel with a 27' excavated diameter, several connecting tunnels 6-10' in diameter ranging in length from 50' to 3,200' and a 130 MGD lift station at the South Cobb Water Reclamation Facility. This project will serve to assist Cobb County with combined sewer overflow compliance-related issues. As of the end of state FY11, Cobb County has drawn $25,000,000 of this commitment.
Cornelia (CWSRF 09-039) On December 2, 2010, Cornelia signed a $985,241 loan agreement including $147,786.15 in principal forgiveness for its share of a joint project with the Habersham County Board of Education to construct additions to its wastewater collection system east of the City of Cornelia. The project consists of approximately 19,949 linear feet of 8-12" gravity sewer line, 11,120 linear feet of 6-10" force main and the Camp Creek Pump Station, Wilson Road Pump Station and High School Pump Station. This project will connect a new county school onto the Cornelia sewer system and eliminate several private septic tanks and a private treatment facility which have the potential to deteriorate water quality. As of the end of state FY11, Cornelia has drawn $905,034 of this commitment.
Dublin (CWSRF 09-084) On October 15, 2010, Dublin signed a $2,400,000 loan agreement including $360,000 in principal forgiveness to clean and televise approximately 36,000 linear feet of sanitary sewer line, cast in place lining of approximately 36,000 linear feet of sanitary sewer, perform over 500 linear feet of sewer point repairs, and rehabilitate, repair and replace approximately 50 manholes. This project will reduce inflow and infiltration problems and repair leaking sewer lines while allowing the Dublin sewer system to maintain compliance. As of the end of state FY11, Dublin has drawn $56,399 of this commitment.
Forsyth County (CWSRF 10-005) On June 6, 2011, Forsyth County signed a $7,800,000 loan agreement including $750,000 in principal forgiveness to improve the efficiency and pumping capacity of the high service pumps at the water treatment plant. The five existing pumps with various design points and valve configurations have been installed over the ten year life of the plant. Reconfiguration and optimization of the bowls and valves will reduce energy consumption. This project will include re-bowling of certain pumps, inspection and evaluation of certain control valves, and the modification and replacement of certain control valves. It is estimated that the retrofit will result in a reduction in pump discharge pressure, energy costs and pump wear. As of the end of state FY11, Forsyth County has not drawn any of the funds.
Hinesville (CWSRF 10-006) On March 15, 2011, Hinesville signed a $2,000,000 loan agreement including $300,000 in principal forgiveness to make Bryant Commons Pond and canal improvements. This project will provide a larger detention pond for sediment collection and re-grade canals to reduce side slope erosion. This project will reduced approximately 4.6 million gallons of storm water flow while providing water quality improvements to Peacock Creek. As of the end of state FY11, Hinesville has not drawn any of the funds.

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LaFayette (CWSRF 09-087) On November 1, 2010, LaFayette signed a $500,000 loan agreement including $75,000 in principal forgiveness. On June 2, 2011, LaFayette signed a contract for an additional $48,000 to construct a concrete post aeration basin, a diffused air system, blower building, new outfall piping and concrete flume. The project will also include modifications to the chlorination basins, de-chlorination system modifications, an effluent sampling station, along with related piping, valves, electrical work, controls and site work. This project is slated to save approximately 2.684 mega watts of electricity at the LaFayette Water Pollution Control Plant. As of the end of state FY11, LaFayette has drawn $399,893.73 of this commitment.
Nashville (CWSRF 10-001) On January 24, 2011, Nashville signed a $6,348,000 loan agreement including $750,000 in principal forgiveness to construct a new advanced wastewater treatment facility to treat and discharge a maximum of 1.0 million gallons per day (MGD) of flow. Since the existing land application system (LAS) will be available to handle flows in excess of 1.0 MGD, the facility will be designed on an average-peak equal basis. Upgrades to the LAS will include: removing accumulated sludge in the aeration lagoon, rehabilitation of the spray fields, replacing the floating baffle in the aerated lagoon, repairing or replacing defective aerators, rerouting piping to maximize storage capacity and screening and grit removal of the influent. This project will create approximately 1 MGD of treatment capacity and achieve compliance in the Withlacoochee River. As of the end of state FY11, Nashville has not drawn any of the funds.
Oconee County (CWSRF 09-062) On December 10, 2010, Oconee County signed a $1,800,000 loan agreement including $270,000 in principal forgiveness to replace 9,300 LF of 10" and 12" gravity sewer with new 18" and 24" pipe to eliminate leaks due to pipe and manhole deterioration, to correct insufficient slopes, to eliminate several aerial stream crossings, and to better accommodate peak flows due to inflow and infiltration. The project also involves replacement of the aging influent pump station for the county's Calls Creek Water Reclamation Facility (WRF) with new facilities using up-to-date technologies for better hydraulic control of influent flows to the WRF and to incorporate flow measurement and pretreatment screening to enhance the efficiency of the plant's treatment processes and reliability. This project will allow Oconee County to maintain compliance in Calls Creek. As of the end of state FY11, Oconee County has drawn $598,820.71 of this commitment.
GREEN PROJECTS
Atlanta (CWSRF 09-092) On March 1, 2011, Atlanta signed a $7,000,000 loan agreement including $1,500,000 in principal forgiveness to upgrade the R.M. Clayton Wastewater Treatment Plant with the addition of a combined heat and power recovery system for the anaerobic digester gas that is produced on-site. This collection system will be able to produce 11 million kWh of renewable electricity per year, which is approximately 16 percent of the electricity consumption of the wastewater treatment plant. This project will yield as much as $1.2 million per year in energy cost savings. As of the end of state FY11, Atlanta has yet to draw any of the funds.

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Pine Lake (CWSRF 09-021) On May 23, 2011, Pine Lake signed a $1,375,000 loan agreement including $687,500 in principal forgiveness to construct three related nonpoint source projects in the Snapfinger Creek and Ocmulgee Watershed Basin in DeKalb County. The project includes improvements for sedimentation, nutrient loading, fecal coliform impairment and biomacroinvertebrate impairment. The projects identified are all aimed at reducing the amounts of pollutants in Snapfinger Creek. This project will restore approximately 1,180 feet of impaired stream banks. As of the end of state FY11, Pine Lake has not drawn any of the funds.

BASE CWSRF PROJECTS
Augusta-Richmond County (CWSRF 09-096) On August 6, 2010, Augusta-Richmond County signed a $10,570,003 loan agreement for the Butler Creek Interceptor East project. The project will begin at the JB Masserly WPCP and extend to the existing sanitary sewer trunk main along Butler Creek. The project will consist of 26,000 linear feet of 48-inch ductile iron sanitary sewer pipe. This project will improve the water quality levels in Butler Creek. As of the end of state FY11, Augusta-Richmond County has drawn $5,924,281.95 of this commitment.
Meigs (CWSRF 05-001) On July 22, 2010, Meigs signed a $437,881 loan agreement to improve its wastewater treatment facility and the sanitary sewer collection system as required by the Georgia Environmental Protection Division (EPD) Consent Order Decree #EPD-WQ-4385. This project will include the restoration of the sand filters, and outlet control structure gates, the inspection and mapping of the collection system to search for inflow and infiltration problems. This project will help Meigs to achieve compliance with an existing consent order. As of the end of state FY11, Meigs has drawn $327,754.49 of this commitment.

AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) PROJECTS

During state FY 2010 all 38 CWSRF-ARRA projects were signed and began construction. As GEFA began to draw against the CWSRF-ARRA grant, the Authority realized that the project funds were being disbursed at a rate that exceeded the administrative funds. In state FY 2011, GEFA moved $1,200,000 in CWSRF-ARRA administrative funds to the project fund and provided this $1,200,000 to the city of Valdosta as a phase II commitment to an existing ARRA project.
Valdosta (CWSRF 08-003(2)) On June 6, 2011, Valdosta signed a $18,500,000 contract including $1,200,000 in ARRA funds and $17,300,000 in base CWSRF funds to increase the capacity of the Mud Creek Water Pollution Control Plant from 3.2 million gallons per day (MGD) to 5.7 MGD. Additionally, Valdosta plans to make improvements and modifications to the plant, including work on the raw wastewater pump station, plant headworks, flow equalization basin and blower building, activated sludge system, tertiary filters, disinfection system, solids handling and maintenance and administrative areas. The City will also design a new solids treatment system to provide redundancy and operational flexibility to meet existing and future biosolids regulations. As of

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the end of state FY11, Valdosta has drawn $3,407,430.08.

LAND CONSERVATION PROJECTS
Listed below is a narrative describing a project that received CWSRF funding in state FY 2011 under Georgia's Land Conservation Program. This program provides low interest loans to local governments for the purchase of land for the purpose of conservation. All projects using CWSRF funds are certified as providing a water quality benefit in accordance with the EPA-approved NonPoint Source Management Plan.
Euharlee (LC2010009) On December 27, 2011, Euharlee signed a $180,000 loan agreement to acquire 16 acres along the Etowah River within the city limits. The property fronts the confluence of the Etowah River and Euharlee Creek an impaired waterway. Most of the tract lies within the floodplain of these waterways, sloping towards them at grades exceeding 20 percent in some spots. The City intends to develop a passive recreational area on the site to serve residents in the growing subdivisions nearby. The new park will be improved with pervious walking paths, picnic areas, a boat launch and public river access. As of the end of state FY11, Euharlee has drawn all $180,000 in funds provided.

MEETING IUP GOALS AND OBJECTIVES

The 2010 CWSRF IUP listed three goals for the program.
The first goal listed in the 2010 IUP was:
The program will work toward increasing its pace in comparison to the national average.
According to the 2010 CWSRF National Information Management System, Georgia's CWSRF pace indicator for "CWSRF Assistance as a % of Funds Available" was 96 percent and 82 percent for the pace indicator of "Disbursements as a % of Funds Available." These pace indicators are up from 88 percent and 78 percent in 2009, respectively.
The second goal listed in the 2010 IUP was:
The CWSRF program hopes to fund a greater number of Non-Point Source (NPS) projects. Using CWSRF loan funds as supplemental financing for many of the 319 grant applications may help to fund more non-point source projects across the state.
In 2011, Georgia funded two NPS projects in the Hinesville loan and the Pine Lake loan. Both projects address sedimentation issues as well as improvements to local waterways. Additionally, GEFA continued to fund project from the Land Conservation program with the loan to Euharlee. EPD and GEFA continue to collaborate in ways to increase the number of NPS projects funded within the CWSRF program.

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The third goal listed in the 2010 IUP was:
The CWSRF will meet the two new objectives of the 2010 Appropriations language with respect to the 20 percent Green Project Reserve requirement and minimum additional subsidization requirement.
Within the first ten months of receiving the 2010 grant, Georgia's CWSRF program met both the Green Project Reserve and additional subsidization requirement. See Attachment 3 for a summary of the dollars provided to these projects.
PROGRAM ADMINISTRATION (4 PERCENT)
In state FY 2011 GEFA spent $637,296.59 on program administration of the CWSRF Program while EPD charged $885,400 to the program operations contract with GEFA. Attachment 5 displays expenditures associated with program administration broken down by object category and broken out by ARRA and non-ARRA spending.
During state FY 2011, the Construction Management Unit (CMU) of EPD processed 59 CWSRF project draw requests and 192 CWSRF-ARRA project draw requests. Additionally, the CMU staff completed 183 CWSRF inspections as well as 337 CWSRF-ARRA inspections.

CWSRF NON-PROGRAM INCOME
In state FY 2011 GEFA spent $2,349,621.60 of CWSRF Non-Program Income on the implementation and goals of the Comprehensive Statewide Water Management Plan. Funding specifically relates to surface water quality modeling and water quality standards review in support of the development of Regional Water Development and Conservation Plans (Regional Plans) as called for by the Comprehensive Statewide Water Management Plan. Attachment 5 shows the breakout of these dollars.

DBE PARTICIPATION
As a part of GEFA's loan agreement, all loan recipients are required to encourage the participation of small, minority and women owned businesses in all project subcontracts. The state's CWSRF Program percentage goal through September 30, 2010 was 13.70 percent for Minority Business Enterprises (MBE) and 7.00 percent for Women Business Enterprises (WBE). The new goals for the period October 1, 2010 through September 30, 2013 are 4.0 percent for MBE and 4.0 percent for WBE. A summary of the DBE utilization is displayed in Attachment 6. Due to the reporting change of the DBE numbers to EPA from quarterly reporting to semi-annually reporting, the data provided in Attachment 6 is for the reporting period of April 1, 2010 March 31, 2011.
There been a tremendous effort of the part on the Environmental Protection Division (EPD) to

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comply with the EPA's Six Good Faith Efforts. Telephone calls and emails are regularly made to DBE subcontractors to encourage their participation in both the Clean Water and Drinking Water SRF programs. DBE's are alerted of GEFA's approved projects as soon as they appear in the transmittal log so that subcontractors can inquire about and prepare for these projects prior to bid date. Subcontractors are additionally urged to pursue EPA/DOT/SBA certification and EPD has made themselves available to answer questions and assist subcontractors in the application process. EPD also keeps an in-house bidders list of certified DBE subcontractors who have worked on previous projects to be supplied to and utilized by prime contractors that are seeking qualified DBEs. In considering whether firms could subcontract with DBEs, EPD encourages prime contractors to follow the Six Good Faith efforts to solicit the services of minority and women-owned businesses and will withhold approval for a project if there is insufficient documentation that the efforts were met. Prime contractors are also provided with an example of an EPA approved newspaper advertisement and an example of a solicitation letter in efforts to eliminate generic newspaper advertisements and poorly written letters. Prime contractors are further supplied with a link for the available DBEs on the Georgia DOT website and the Bidders list that is kept-in house, as well as names/addresses/numbers of contacts in the Small Business Administration, the Minority Business Development Agency, the Department of Commerce and other related agencies and associations throughout the state. Guidance is also provided in all related construction contracts to encourage prime contractors to divide work when feasible.
CWSRF LOAN DISBURSEMENTS
The CWSRF Program disbursed funds to 53 active projects during state FY 2011. Attachment 7 shows the projects which received funds by quarter in state FY 2011. The CWSRF Program disbursed a total of $132,761,530.93 in state FY 2011. Many of these projects received a mix of ARRA funds, base CWSRF funds and state match funds. Attachment 8 compares the projected disbursement schedules indicated within the 2009 and 2010 IUPs for state FY 2011 against the actual disbursements made in state FY 2011. The CWSRF Program disbursed 66 percent of what it projected it would disburse in FY 2011. During the development of the 2009 IUP there was a tremendous amount of buzz surrounding the stimulus package and nearly every water and sewer system in the state was developing a project in the hopes of receiving grant dollars. When the levels of principal forgiveness were determined by GEFA and GEFA began to approve projects, many potential borrowers did not receive the amount of grant dollars originally anticipated and delayed or abandoned the project. While the amount of funds disbursed to projects in the state FY 2011 was very high, it was still much lower than originally anticipated.

CWSRF STATE MATCH

During state FY 2011 all projects which received direct capitalization grant dollars, from any grant other than the ARRA grant, were funded with 80 percent federal dollars and 20 percent state match dollars. Each dollar disbursed to projects funded by the CWSRF program which receive direct grant funds received 80 percent of each disbursement in federal CWSRF funds and 20 percent of each disbursement in state match funds. This disbursement scenario will inevitable result in an "undermatched" situation as the 80 percent/20 percent match split does not account for the 4 percent administrative dollars which also require state match. At the end of each state fiscal year, GEFA

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calculates the "under-matched" amount and makes a one-time state match deposit into the federal Clean Water SRF account. This one-time deposit will account for the additional 4 percent in administrative dollars that require state match. This process guarantees that the Clean Water SRF program is appropriately matched at the end of each state fiscal year. GEFA received sufficient general obligation bond funds from the state to match the CWSRF program at 20 percent. Attachment 1 shows the amount of state match funds provided during state FY 2011 by quarter.
CWSRF LOAN REPAYMENT
Eleven CWSRF projects initiated operation during state FY 2011 (Attachment 9). The total dollar value awarded to these eleven projects equaled $30,056,000 of which $29,948,559.96, or virtually 100 percent, was disbursed. The total amount of repayments credited to the CWSRF fund during state FY 2011 from all sources was $65,401,906.72 and can be found within Attachment 1. These sources of repayment include principal and interest payments and late fee payments. To maintain the self-perpetuating nature of the CWSRF fund, all repayments including the principal, interest and fees are credited to the CWSRF Program. Attachment 1 also shows that $1,998,663.05 in closing fees were collected during the state fiscal year. GEFA directed these fees into the Program Income and Non-Program Income accounts according to EPA policy. Non-Program Income was used to fund water quality portions of the Comprehensive Statewide Water Management Plan during state FY 2011.

ASSURANCES AND SPECIFIC PROPOSALS

The CWSRF Program will adhere to all the certifications covered in the Act as well as those within Georgia's Operating Agreement with the Regional EPA office. The specific certifications are:
A. Introduction and General Program Management Assurances B. Clean Water State Revolving Loan Fund - An Instrumentality of the State
a. State Law b. Interagency Agreements C. Capitalization Grant Acceptance D. Payment Schedule E. State Matching Funds F. Commitment of 120 percent in One Year G. All Funds - Timely Expenditure H. Enforceable Requirements of the Act I. Cross Cutting Issues J. State Law and Procedures K. State Accounting and Auditing Procedures L. Recipient Accounting and Auditing Procedures M. Annual Report N. Limitations on Eligibility O. Maintain the Fund P. Perpetuity Q. Types of Assistance R. Limitation of Double Benefits

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S. Consistency with Planning Requirements T. Priority List U. Annual Audit V. Annual Federal Oversight Review and Technical Assistance W. Dispute Resolution X. Transfer of Funds between SRF Programs
A draft copy of the state FY 2011 audit of the Georgia Environmental Finance Authority will be provided immediately upon publication.

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Sources
Direct Capitalization Grant Funds State Match Funds Repayments
CWSRF Federal Repayments CWSRF State-Match Repayments Fees Closing fee payments (program) Closing fee payments (non-program) Investment Earnings (Short & Long-term) CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund Closing fee payments (program) Closing fee payments (non-program)
Total Sources
Uses
CWSRF Disbursements - Cap grant CWSRF Disbursements - State Match CWSRF Disbursements - Repayments CWSRF Administration (4%) CWSRF Non-Program Income
Total Uses

ATTACHMENT 1 SOURCES AND USES OF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING FUND

FY2011

July 1, 2010 - June 30, 2011

Quarter 1

Quarter 2

7/2010 - 9/2010

10/2010 - 12/2010

Quarter 3 1/2011 - 3/2011

2,856,117.59 720,563.97

3,244,601.74 826,825.27

4,372,767.14 838,169.22

14,329,602.00 1,089,576.43

17,085,899.71 1,138,053.97

14,798,473.55 1,064,811.30

410,107.71 286,809.05

327,618.02 367,136.76

87,801.34 323,497.24

7,185.31 78,664.26 12,580.16
3,093.14 19,794,299.62

7,398.19 74,139.66 11,976.24
2,882.22 23,086,531.78

6,146.92 63,556.22 10,324.42
2,206.38 21,567,753.73

4,798,769.11 722,161.65
12,146,413.68 72,998.08 32,701.12
17,773,043.64

4,604,545.96 811,147.88
19,684,815.18 119,333.64 -
25,219,842.66

5,669,125.47 13,963,789.15 11,280,136.60
218,580.46 61,256.06
31,192,887.74

ATTACHMENT 2 CWSRF REPAYMENT ACCOUNTS CLEAN WATER STATE REVOLVING FUND
FY2011 July 1, 2010 - June 30, 2011

Quarter 4 4/2011 - 6/2011
2,300,868.67 971,848.30
14,772,310.93 1,123,178.83
53,666.78 142,026.15
2,684.70 45,771.90
8,756.97 1,527.06 19,422,640.29
3,986,627.85 14,946,332.63
7,749,527.16 329,427.78 38,328.06
27,050,243.48

Account CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund CWSRF Closing Fee (Non-prog. Income) CWSRF Closing Fee (Program Income)
*Balance as of 06/30/2011

Total

Balance*
13,172,362.27 103,269,314.95
3,233,348.24 20,888,319.73 140,563,345.19

Investment Earnings Expected Uses of Funds
23,415.12 Project Funding 262,132.13 Project Funding
9,708.80 Water Quality Related Activities 43,637.79 CWSRF Activities 338,893.84

Total
12,774,355.14 3,357,406.76
60,986,286.19 4,415,620.53
879,193.85 1,119,469.20
23,415.12 262,132.04
43,637.79 9,708.80
83,871,225.42
19,059,068.39 30,443,431.31 50,860,892.62
740,339.96 132,285.24 101,236,017.52

FY 2011 CWSRF Annual Report

11

Community ATLANTA ATLANTA AUGUSTA-RICHMOND COUNTY COBB COUNTY* CORNELIA DUBLIN EUHARLEE FORSYTH COUNTY HINESVILLE LAFAYETTE LAFAYETTE* MEIGS NASHVILLE OCONEE COUNTY PINE LAKE VALDOSTA* VALDOSTA*
*Increases to exsiting projects

ATTACHMENT 3 COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE
CLEAN WATER STATE REVOLVING FUND
FY2011 July 1, 2010 - June 30, 2011

Project Number CWSRF 09-092 CWSRF 10-002 CWSRF 09-096 CWSRF 07-001(4) CWSRF 09-039 CWSRF 09-084 LC2010009 CWSRF 10-005 CWSRF 10-006 CWSRF 09-087 CWSRF 09-087 CWSRF 05-001 CWSRF 10-001 CWSRF 09-062 CWSRF 09-021 CWSRF 08-003(2) CWSRF 08-003(2)ARRA

Population 416,474 416,474 199,755 607,751 3,674 15,857 3,208 98,407 30,392 23,093 23,093 1,090 4,697 26,225 621 43,727 43,727

Zip Code 30318 30303 30901 30090 30531 31040 30145 30040 31313 30728 30728 31765 30639 30677 30072 31603 31603

Project Type
FY 2010-Green FY 2010 Base FY 2010 FY 2010 FY 2010 LC FY 2010 FY 2010 FY 2010 Base Base FY 2010 FY 2010
FY 2010-Green Base ARRA

Total Project Amount

Loan Amount

Principal Forgiveness
Amount

Projected

Loan

Binding

Initiate

Interest

Commitment Date Operation Date Rate

$

7,000,000.00 $

5,500,000.00 $ 1,500,000.00

3/1/2011

1/31/2011

3%

40,000,000.00

39,250,000.00

750,000.00

3/1/2011

12/1/2010

3%

10,570,003.00

10,570,003.00

8/6/2010

6/1/2010

3%

25,000,000.00

24,250,000.00

750,000.00

2/23/2011

7/1/2008

3%

985,241.00

837,454.85

147,786.15

12/2/2010

10/1/2009

3%

2,400,000.00

2,040,000.00

360,000.00

10/15/2010

12/1/2010

3%

180,000.00

180,000.00

12/27/2010

12/27/2010

2%

7,800,000.00

7,050,000.00

750,000.00

6/6/2011

3/31/2011

3%

2,000,000.00

1,700,000.00

300,000.00

3/15/2011

1/1/2011

3%

500,000.00

425,000.00

75,000.00

11/1/2010

9/15/2010

3%

48,000.00

48,000.00

6/2/2011

9/15/2010

3%

437,881.00

437,881.00

7/22/2010

8/15/2010

3%

6,348,000.00

5,598,000.00

750,000.00

1/24/2011

3/1/2010

3%

1,800,000.00

1,530,000.00

270,000.00

12/10/2010

12/8/2010

3%

1,375,000.00

687,500.00

687,500.00

5/23/2011

5/1/2011

3%

17,300,000.00

17,300,000.00

6/6/2011

12/1/2009

3%

1,200,000.00

1,200,000.00

6/6/2011

12/1/2009

3%

$124,944,125.00

$118,603,838.85

$6,340,286.15

Total Additional Subsidization Provided

$6,340,286.15

Total Green Projects

$8,375,000.00

Total ARRA Funds

$1,200,000.00

Projected Maturity
Date 2/1/2032 3/1/2033
10/1/2031 7/1/2031 4/1/2031 1/1/2032 1/1/2021 7/1/2033 1/1/2032 7/1/2031 7/1/2031 1/1/2031 4/1/2033 9/1/2031 1/1/2031 6/1/2032 6/1/2032

FY 2011 CWSRF Annual Report

12

ATTACHMENT 4 BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE
CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

Project Type
Secondary Treatment (I) Advanced Treatment (II) Infiltration/Inflow (IIIA) Sewer System Rehab (IIIB) New Collecter Sewers (IVA) New Interceptors (IVB) CSO Correction (V) Storm Sewers (VI) Recycled Water Distribution (X) Agricultural Cropland (VII-A) Agricultural Animals (VII-B) Silviculture (VII-C) Urban, Excluding Decentralized Systems (VII-D) Groundwater, Unknown Source (VII-E) Marinas (VII-F) Resource Extraction (VII-G) Brownfields (VII-H) Storage Tank (VII-I) Sanitary Landfills (VII-J) Hydromodification (VII-K) Individual/Decentralized Systems (VII-L) Unclassified

Number of Projects
3 4 1 3 1 1 1

Dollar Value ($)
1,833,241 31,848,000
2,400,000 12,507,884
7,800,000 25,000,000 40,000,000

Assistance by Population Size
Less than 3,500: 3,500 to 9,999: 10,000 to 99,999: 1000,000 & above:
Total

Dollar Value ($)

Number of New Assistance Agreements

1,992,881

3

15,681,241

4

24,700,000

5

82,570,003

4

$ 124,944,125

16

Total

1

3,375,000

1

180,000

16 $ 124,944,125

FY 2011 CWSRF Annual Report

13

ATTACHMENT 5 ADMINISTRATIVE EXPENSES BY CATEGORY
CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

4% - GEFA

Object Category

Non-ARRA

Personnel Fringe Benefits Travel Contractual Operating Expenses Computers Indirect Costs

227,790.08 71,052.66 3,271.04 7,861.52 30,179.76 2,455.54
160,519.36

Total $ 503,129.96

4% - GEFA
ARRA
48,234.59 19,334.32
488.48 9,525.00 9,072.47
216.45 47,295.32 $ 134,166.63

4% - EPD
Non-ARRA
237,210.00 $ 237,210.00

4% - EPD
ARRA
648,190.00 $ 648,190.00

Program
Income-EPD
333,369.60 8,310.19 $ 341,679.79

Non-Program Income-EPD
2,349,621.60 -
$ 2,349,621.60

Total
Expenditures
276,024.67 90,386.98 3,759.52
3,585,777.72 47,562.42 2,671.99
207,814.68 $ 4,213,997.98

FY 2011 CWSRF Annual Report

14

ATTACHMENT 6 DBE UTILIZATION CLEAN WATER STATE REVOLVING FUND
April 1, 2010 - March 31, 2011**

Summaries

Semi-Annual Dates

MBE ($)

WBE ($)

Non-ARRA

(April 1, 2010 - September 30, 2010) (October 1, 2010 - March 31, 2011)

535,615.71 540,863.64

924,292.59 $ 1,064,698.95 $ ARRA

(April 1, 2010 - September 30, 2010) (October 1, 2010 - March 31, 2011)

1,182,310.14 767,003.89

803,305.06 $ 211,316.52 $

TOTAL

$

PERCENTAGE GOAL (through September 1, 2010)

PERCENTAGE GOAL (starting October 1, 2010)

PERCENTAGE ACTUAL*

3,025,793.38 $ 3,003,613.12 $

13.70%

7.00%

4.00%

4.00%

2.28%

2.26%

*DBE information is provided on a semi-annual basis to EPA

**Percentage Actual is calculated by dividing the DBE funds disbursed by the total CWSRF funds disbursed.

TOTAL ($)
1,459,908.30 1,605,562.59
1,985,615.20 978,320.41
6,029,406.50 20.70% 8.00% 4.54%

FY 2011 CWSRF Annual Report

15

ATTAHMENT 7 DISBURSEMENT OF CWSRF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Community

Projet Number

7/2010 - 9/2010

10/2010 - 12/2010

1/2011 - 3/2011

4/2011 - 6/2011

Athens Clarke Co. (CW) Athens Clarke Co. (Green) Augusta-Richmond Augusta-Richmond Blairsville Blakely Bryan County Byron
Camilla Clarkesville Cobb Co. College Park Colquitt Commerce
Cornelia Darien Demorest Donalsonville Douglasville - Douglas WSA
Dublin Euharlee Gwinnett Co. Gwinnett Co. Gwinnett County Hall County
Hampton Helen Henry County WSA Hiawassee
Hinesville Jefferson

CWSRF06-004 CWSRF09-064 CWSRF09-058 CWSRF09-096 CWSRF09-022 CWSRF09-046 CWSRF06-005 CWSRF09-003 CWSRF08-004 CWSRF09-012 CWSRF07-001 CWSRF09-025 CWSRF09-028 CWSRF09-037 CWSRF09-039 CWSRF09-033 CWSRF09-017 CWSRF09-015 CWSRF09-072 CWSRF09-084 LC2010009 CWSRF04-005 CWSRF09-055 CWSRF03-002 CWSRF06-006 CWSRF04-004 CWSRF09-006 CWSRF08-001 CWSRF09-008 CWSRF09-001 CWSRF09-030

2,483,876.07 118,737.06
4,575,601.67
634,884.56 639,816.11
521,628.62
110,334.43
1,809,639.21 620,481.44 434,911.37
234,713.59 98,146.91 23,705.78 28,000.00
1,486,748.83 344,507.50 240,091.55
1,675,959.98
131,956.00 5,167,956.57
121,117.77
41,981.51

898,688.44 2,347,350.35
97,689.99 171,358.54
302,549.60 1,393,195.30
367,678.26
612,455.66 248,994.00
38,319.03
131,746.01 27,854.69
22,578.00 26,512.00
1,065,117.50
1,336,080.52 391,115.62 28,161.35
3,917,620.25 28,287.00
816,162.32

1,145,010.53 2,012,173.59
97,689.99 171,358.54
302,549.60 1,175,074.16
367,678.26 12,870,608.93
612,455.66 248,994.00
38,319.03 905,034.00 131,746.01
27,854.69
22,578.00 29,887.00 180,000.00
1,065,117.50 39,984.31
90,568.44 28,161.35 2,332,569.64 28,287.00

$
$
402,017.27 $ 1,565,197.11 $
$
$
32,261.75 $ 117,873.57 $ 2,783,288.62 $ 187,463.62 $ 12,129,391.07 $ 248,375.87 $
37,301.70 $ $
$
15,197.97 $ - $ - $
30,948.00 $ $
$
$
488,900.00 $ $
485,904.98 $ $
170,619.80 $ 1,577,290.74 $
$
$
$

Lafayette LaGrange
Lake Lanier Island Dev. Auth. Lula Macon WA Maysville Meigs Moultrie Moultrie
Oconee County Paulding County Port Wentworth Sardis Sparks Summerville Tennille Tifton Toccoa Union Point Valdosta Warrenton Waycross

CWSRF09-087 CWSRF09-009 CWSRF08-002 CWSRF09-014 CWSRF09-032 CWSRF09-011 CWSRF05-001 CWSRF09-035 CWSRF09-036 CWSRF09-062 CWSRF09-093 CWSRF09-031 CWSRF09-060 CWSRF09-007 CWSRF09-081 CWSRF09-040 CWSRF09-051 CWSRF09-054 CWSRF09-004 CWSRF08-003 CWSRF09-056 CWSRF09-071

911,470.69
2,607,428.96 347,356.31 65,751.84
690,952.53 1,513,154.85
392,931.19 2,854,203.00
267,826.88 60,560.29 43,992.00 38,078.68
1,491,442.10
3,399,764.99 98,088.67 6,358.00

271,724.29 828,046.87 1,307,360.70 1,026,532.49
29,672.05
170,184.28 204,228.79
1,847,552.81 73,528.03
166,409.83
22,855.00 425,415.98 9,060,375.62
80,185.52

162,499.92 271,724.29
1,307,360.70 1,026,532.49
29,672.05 63,164.66 170,184.28 204,228.79 208,986.47
1,847,552.81 73,528.03
166,409.83
22,855.00 425,415.98 9,060,375.62
80,185.52

237,393.79 $ 214,380.00 $
$
15,502.00 $ 410,256.21 $
5,338.75 $ 264,589.83 $ 253,845.13 $ 715,740.64 $ 389,834.24 $
$
566,777.93 $ 160,661.23 $
8,947.15 $ $
$
$
$
$
4,050,214.09 $ 33,897.00 $ $

Total Disbursements $ 36,334,157.51 $

29,783,586.69 $

39,044,376.67 $

27,599,410.06 $

Total 2,483,876.07
118,737.06 7,021,317.91 5,924,721.05
830,264.54 982,533.19
32,261.75 1,244,601.39 5,351,558.08 1,033,154.57 25,000,000.00 3,282,926.40 1,155,771.14
511,549.43 905,034.00 513,403.58 153,856.29
23,705.78 104,104.00
56,399.00 180,000.00 1,486,748.83 2,963,642.50 280,075.86 3,497,945.48 481,684.06 358,898.50 12,995,437.20 177,691.77 816,162.32
41,981.51 399,893.71 1,669,299.27 828,046.87 5,237,652.36 2,810,677.50 130,434.69 327,754.49 1,285,166.22 2,637,353.07 598,820.71 392,931.19 7,116,086.55 575,544.17
69,507.44 376,811.66
38,078.68 1,491,442.10
45,710.00 850,831.96 25,570,730.32 292,356.71
6,358.00 132,761,530.93

FY 2011 CWSRF Annual Report

16

ATTACHMENT 8 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS
CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

Projected Disbursements Projected FY2011 CW Disbursements from 2009 IUP Projected FY2011 CW Disbursements from 2010 IUP
Total Projected Disbursements for FY2011

Quarter 1 7/2010 - 9/2010
64,878,883.00 7,862,500.00
$72,741,383.00

Quarter 2 10/2010 - 12/2010
35,723,864.00 20,915,458.00 $56,639,322.00

Quarter 3 1/2011 - 3/2011
23,181,746.00 23,617,958.00 $46,799,704.00

Quarter 4 4/2011 - 6/2011
0.00 23,617,958.00 $23,617,958.00

Actual FY2011 CWSRF Disbursements Percent Disbursed of Projected

$36,334,157.51 50%

$29,783,586.69 53%

$39,044,376.67 83%

$27,599,410.06 117%

Total $123,784,493.00
$76,013,874.00 $199,798,367.00
$132,761,530.93 66%

FY 2011 CWSRF Annual Report

17

ATTACHMENT 9 PROJECTS INITIATING OPERATION CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

Community
Commerce Donalsonville Euharlee Gwinnett County Heard County WA Henry County WSA Lagrange Summerville Tennile Toccoa Waycross

CWSRF

Assistance

Project Number

Amount

CWSRF 09-037 CWSRF 09-015

1,100,000.00 512,000.00

LC2010009 CWSRF 03-002 CWSRF 09-038 CWSRF 06-001 CWSRF 09-009 CWSRF 09-081 CWSRF 09-040 CWSRF09-054 CWSRF09-071

180,000.00 5,000,000.00
100,000.00 16,900,000.00
4,350,000.00 480,000.00 300,000.00
1,000,000.00 134,000.00

Total $ 30,056,000.00

Assistance Amount Used
1,100,000.00 509,074.44 180,000.00
5,000,000.00 98,667.51
16,894,402.84 4,307,273.12 431,999.05 300,000.00 1,000,000.00 127,143.00
$ 29,948,559.96

Percentage Used
100% 99% 100% 100% 99% 100% 99% 90% 100% 100% 95% 100%

Binding Commitment Date
9/21/2009 11/19/2009 12/27/2010 12/9/2004 1/15/2010 6/28/2007 & 1/17/2008 9/21/2009 1/14/2010 11/12/2009 10/21/2009 1/21/2010

Initiate Operation
Date
12/1/2010 6/1/2011 12/27/2010 4/1/2011 8/1/2010 7/1/2010 6/1/2011 4/1/2011 9/1/2010 1/1/2011 12/1/2010

Loan Interest
Rate 3% 3% 2% 3% 3% 3% 3% 3% 3% 3% 3%

FY 2011 CWSRF Annual Report

18

Community
ATLANTA ATLANTA AUGUSTA-RICHMOND COUNTY CORNELIA DUBLIN EUHARLEE FORSYTH COUNTY HINESVILLE LAFAYETTE MEIGS NASHVILLE OCONEE COUNTY PINE LAKE VALDOSTA
VALDOSTA

ATTACHMENT 10 PERFORMANCE RESULTS OF CWSRF PROJECTS FUNDED
CLEAN WATER STATE REVOLVING FUND

FY2011 July 1, 2010 - June 30, 2011

212 Results

Green Project Results

Project Number
CWSRF 09-092 CWSRF 10-002 CWSRF 09-096 CWSRF 09-039 CWSRF 09-084 LC2010009 CWSRF 10-005 CWSRF 10-006 CWSRF 09-087 CWSRF 05-001 CWSRF 10-001 CWSRF 09-062 CWSRF 09-021 CWSRF 08-003(2) CWSRF 08003(2)ARRA
TOTALS

Gallons of Treatment Capacity Created
1,000,000 5,700,000 5,700,000 12,400,000

Linear Feet of New Sewer Line Constructed
26,000 11,840 3,600 2,300
2,400

Linear Feet of New Force Main Constructed
25,100 34,500
525

Linear Feet of Sewer Line Upgraded/ Rehabilitated 64,500 26,000 29,000
8,130 10,230

Acres of Land Conserved

Energy

Reduced/Stored/Recharged of

Conservation Stormwater Management

(MWh) Savings

(flow)

36

16 2.684

600,000 4,600,000

46,140

60,125

3,200,000
3,200,000 6,537,860

16

38.684

5,200,000

Linear Feet of Streambank Restoration
100
1,180 1,280

FY 2011 CWSRF Annual Report

19