Wells Fargo Environmental Finance Report

March 2012
Wells Fargo Environmental Finance Report
2011 highlights:
• Provided a record $2.8 billion in environmental loans and investments, surpassing $11.7 billion in capital deployed to green buildings,
green businesses, and renewable energy projects since 2005.
• Provided more than $1.5 billion to LEED® commercial buildings and community development projects.
• Invested more than $450 million in solar photovoltaic projects, doubling total investment to more than $900 million.
• Invested more than $200 million in wind projects, increasing total wind investment to more than $1.6 billion.
• Expanded options for customers to install renewable energy by providing more than $250 million through new construction finance, direct
lease and loan financing, and municipal financing programs.
• Loaned more than $150 million to commercial banking and community banking cleantech customers.
One of five Wells Fargo-owned tracking photovoltaic solar projects developed by SunEdison in southeastern New Mexico, among the largest in the United States.
Wells Fargo has deployed more than $11.7 billion in environmental loans and investments since 2005.1
This includes more than $3.8 billion in debt and equity commitments to renewable energy projects across
the U.S., nearly $2.1 billion to support customers who have made environmentally beneficial products and
services a core part of their businesses, and more than $5.8 billion in construction or term financing for
buildings that have received or are designed to receive LEED certification.2
Environmental Loans & Investments by Sector
Over $11.7 billion invested through 2011
Cumulative Environmental Loans and Investments
Investment increased by over $2.8 billion in 2011
$12
$10
$8
Billions
Green buildings
$5.8 billion
Renewable energy
projects
$3.8 billion
$6
$4
Green businesses
$2.1 billion
$2
$0
2005 2006 2007 2008 2009 2010 2011
Year
Environmental finance represents an opportunity for the
entire global economy – an opportunity to stimulate growth,
employ eager minds and address some of the world’s most
pressing problems. For Wells Fargo, the opportunity lies in
building strong relationships to serve its customers that are
leading the charge toward creating a better, more sustainable future.
As Wells Fargo’s customers and other market participants
are well aware, this opportunity does not come without
challenges. Many clean technology industries are starting
from scratch, and face up-hill battles against established
industries and volatile markets. Such a dramatic shift in the
way the world thinks, operates, and consumes will require
capital and support from a financial institution with a deep
understanding and dedication to environmental markets as
well as the tools and team members capable of executing on
this commitment.
This report highlights some of the ways that Wells Fargo
serves its customers in environmental markets. Wells Fargo’s
holistic, relationship-driven approach and its commitment
to green business that began in 2005 catalyzed more than
$2.8 billion in loans and investments for renewable energy
projects, green buildings, and green businesses in 2011. This
constitutes more capital deployed into these industries than
in any previous year.
In addition to these financial commitments, Wells Fargo
continued to expand new product offerings such as renewable energy construction financing and cleantech insurance
brokerage, and built upon its core traditional banking services
tailored toward companies in these sectors. Wells Fargo’s multiple dedicated clean technology-focused groups and regional
teams throughout the country continue to work together to
expand the ways in which Wells Fargo supports enterprises
that fuel the development of a cleaner economy.
Wells Fargo’s breadth of services for environmental customers spans multiple business groups
2
• Wells Fargo Environmental Finance
• National Cleantech Group
• Community Lending and Investment
• Public Finance and Sustainable Public Infrastructure
• Real Estate Banking and Real Estate Capital Markets
• Wells Fargo Securities Renewable Energy Group
• Wells Fargo Equipment Finance and Commercial Asset Leasing
and Finance
• Wells Fargo Insurance Services
Green business and renewable energy
These young industries rely heavily on capital and support
from banks to fund their rapid growth. Wells Fargo is a leading provider of commercial banking products and services
to a wide array of clean technology companies and environmental organizations, and invests in greener infrastructure
projects throughout the U.S. Of Wells Fargo’s $2.8 billion
in environmental commitments in 2011, over $400 million
was provided to green businesses and over $900 million
was deployed to fund wind and solar projects. These loans
and investments support companies both large and small,
domestic and foreign, as they help to diversify the country’s
energy supply, create new jobs, and transition to a more
sustainable economy.
Since 2006, Wells Fargo has deployed more than $3.8 billion
in project capital, including $2.7 billion of tax equity, to more
than 300 renewable energy projects in 27 states.
Solar industry investments and services
For the global solar industry, 2011 was a year of tremendous
growth, rapid change, and some high profile challenges.
Rapidly declining cost curves and rising demand for energy
cost management as well as intense global competition and
economic challenges are all forcing young companies to
grow up quickly in order to keep pace with the industry’s
needs. While the U.S. solar market has traditionally trailed
that of Europe, solar companies increasingly view the U.S.
as their primary market: annual solar photovoltaic (PV)
installations in the U.S. increased more than 100% in 2011,
and the U.S share of the global solar market is expected to
grow from 5% in 2010 to 14% in 2015.5
Wells Fargo contributes to the development of the solar
industry through direct investments in projects, loans and
services to companies across the supply chain, and by
providing financing for customers to procure clean and
affordable energy. Wells Fargo provided tax equity to enable
the installation of more than 4% of the solar power installed
in the U.S. in 2011, and provides banking services and other
specialized services such as insurance brokerage, trust services, and foreign exchange to half of the top 10 global solar
cell manufacturers.6 Wells Fargo Securities has also acted as
underwriter for debt and equity offerings for several highprofile domestic and foreign solar companies, raising more
than $600 million of capital since 2009.7
Photo provided courtesy of Enel Green Power North America.
©2012 Tim Nauman Photography
Over the last decade, the clean technology industry has
proven resilient in spite of serious economic headwinds.
Between 2003 and 2010, green business sectors such as
solar, wind, biofuels, carbon management and smartgrid all
experienced employment growth rates more than double
the national average of 4.2%.3 And while renewable energy
sources currently make up only 4% of U.S. electricity production, they are projected to be the fastest-growing source
of domestic electricity generation over the next 25 years.4
Three wind turbines at Enel Green Power’s Caney River Wind project in Kansas. Wells Fargo
invested in the 200 MW project in December 2011.
Since making its first solar investment in 2007, Wells Fargo
has provided more than $900 million of tax equity and
more than $200 million of construction financing for solar
projects, including more than 240 commercial-scale
solar PV projects, five utility-scale solar PV projects and a
utility-scale concentrating solar thermal power plant. More
than half of this capital was deployed in 2011 alone, when
Wells Fargo provided both tax equity and construction
finance for its first large-scale solar PV project investments,
which were five projects in southeast New Mexico developed by Wells Fargo’s long-standing solar development
partner SunEdison. Wells Fargo also expanded upon its
commitment to the distributed generation solar market by
initiating a program with Enfinity America Corporation
and continuing to invest in its already established programs with developers such as GCL Solar and SunPower.
Throughout 2011 Wells Fargo continued to expand its
offerings to customers through its direct lease and loan
program and leveraging its public finance capabilities to
support innovative and cost effective solar financing solutions. Wells Fargo’s contributions to the solar industry in
2011 include:
• Enfinity America: In late 2011 Wells Fargo implemented
a new financing program designed to fund $100 million
in commercial and utility-scale solar systems developed
by Enfinity America Corporation, a subsidiary of leading
Belgian solar developer Enfinity NV. Under the program,
Wells Fargo invests equity capital in a number of solar
power systems developed or sponsored by Enfinity. Enfinity enters into power purchase agreements (PPAs) to sell
electricity to qualified customers such as corporations,
schools, universities, and municipalities. These customers
purchase the electricity at pre-determined prices that are
competitive with retail utility rates, providing them with
long-term protection against rising power prices. The first
project funded under the program was a 9.8 megawatt
(MW) facility providing electrical power to Campbell
Soup Company’s largest global manufacturing plant in
Napoleon, Ohio.
3
• SunEdison: In 2011, Wells Fargo saw a significant expansion of its relationship with one of its longest-established
partners in the solar industry, SunEdison. A pioneer of
the solar PPA model and a subsidiary of leading solar
and semiconductor wafer manufacturer MEMC Electronic Materials, SunEdison acquired another leading partner
of Wells Fargo’s, Fotowatio Renewable Ventures, in September 2011. Following the acquisition and the creation
of two new funds last year, Wells Fargo is now an investor in five SunEdison funds established between 2007
and 2011. The tax equity financing structures developed
through these programs pool multiple solar systems into
a single investment fund in order to simplify the project
development process and mobilize capital efficiently.
53.5 MW for a more sustainable New Mexico
Wells Fargo’s first utility-scale solar PV investment
• SunEdison’s five solar PV installations in southeastern
New Mexico are collectively the largest solar PV project in the state and among the largest ever developed
in the U.S.
• The more than 190,000 solar panels provide
110 gigawatt-hours (GWh) of electricity per year
to Southwestern Public Service Co., a subsidiary of
Wells Fargo customer Xcel Energy, Inc. This is enough
to power more than 8,000 homes.8
• Wells Fargo provided over $200 million in loans to
fund the construction of the five projects, and purchased each one following completion. Wells Fargo is
the sole owner of the PV systems for the term of the
power purchase agreements, making it one of the largest owners of solar assets in the country.
Wells Fargo has now funded solar systems developed and
operated by SunEdison in ten states, including 5.3 MW at
Colorado State University, 3 MW for the City of Lakeland,
FL and more than 30 MW of projects for three major U.S.
retail chains. Wells Fargo also expanded its relationship
with SunEdison in 2011 by financing Wells Fargo’s first
utility scale solar PV project, a five-site installation totaling 53.5 MW. This was one of the first times that construction financing and tax equity have been provided in tandem for a utility scale solar project, and is an example of
Wells Fargo’s expanding scope of services to the industry.
Photo provided courtesy of SunPower Corporation
• The construction and tax equity financings were
made possible through a partnership among
Wells Fargo’s National Cleantech Group, Commercial
Asset Leasing and Finance, Wells Fargo Securities,
Wells Fargo Equipment Finance, and Wells Fargo
Environmental Finance.
SunPower® T0 trackers and modules at the 1 MW City of Tucson site.
• SunPower: In 2009 Wells Fargo launched its tax equity
financing program with SunPower Corporation, one of
the world’s most advanced module manufacturers and
solar project developers. SunPower designs, builds, operates and maintains customer-sited solar systems using
its own high efficiency modules and sells power to its
customers through long-term PPAs. Among the projects
funded by Wells Fargo in 2011 were a 2.1 MW parking
canopy project for the Santa Clara Valley Transportation
Authority and a 1 MW system for the City of Tucson’s
municipal underground water storage and recovery facility. SunPower is a long-time customer of Wells Fargo and
this program has served as an anchor to this important
relationship over the past three years.
4
• GCL Solar: Since 2010, Wells Fargo has financed more
than 10 MW of projects through an investment program
with GCL Solar Inc., the U.S.-based solar development
subsidiary of GCL-Poly Energy Holdings Ltd., which
is China’s largest polysilicon refiner and independent
power producer. Through the program, Wells Fargo and
GCL Solar have helped multiple schools across California procure low-cost electricity with no upfront capital
investment. Among the projects funded to date are multiple parking canopies, and roof-top and ground-mount
installations at the University of San Diego and Antelope
Valley Joint Union High School District in Southern
California. Wells Fargo’s National Cleantech Group has
supported GCL Solar since its first entry into the U.S.
market by providing various products and services,
including treasury management and letters of credit to
support GCL Solar’s distributed generation and utilityscale project development business.
• Nevada Solar One: Wells Fargo is one of three tax
equity investors in Acciona’s Nevada Solar One, a
64 MW concentrating solar thermal power plant located
in the desert south of Las Vegas. The plant features more
than 192,000 parabolic trough-shaped mirrors that
concentrate solar radiation on receiver tubes filled with a
special heat transfer fluid used to produce steam to drive
a conventional steam turbine generator. The utility NV
Energy purchases approximately 140 gigawatt-hours
(GWh) of electricity generated annually by the project.
• Construction finance: Wells Fargo’s National Cleantech
Group began offering construction financing for solar
projects in 2010, enabling a more complete and efficient financing solution for Wells Fargo’s partner solar
developers. The group’s first construction loan closed
in December 2010, and in 2011 Wells Fargo expanded
its footprint by providing construction financing
together with tax equity financing for both commercial
and utility scale solar projects for multiple partners.
• Direct lease and loan program: Wells Fargo Commercial
Asset Leasing and Finance partners with Wells Fargo
Equipment Finance to offer a program that provides
direct financing for solar PV installations on Wells Fargo
customers’ premises. Product offerings include traditional loan financing as well as tax lease financing for
terms of up to ten years in states with attractive solar
economics including California, Arizona, New Jersey,
Massachusetts, Maryland, and North Carolina. The
direct financing products allow a broad group of qualified customers to benefit from cleaner electricity and
lower, more predictable utility bills. Since its inception in
late 2010, the program has provided financing for
approximately 13 MW of solar installations.
• Municipal finance: Since 2009 Wells Fargo Securities’ Sustainable Public Infrastructure group has served
municipalities with public finance solutions to fund environmental infrastructure projects from wastewater treatment to energy efficiency retrofits to solar installations.
In December 2011, the group served as senior managing
underwriter for $33.1 million of taxable lease revenue
bonds for the Morris County Improvement Authority
in New Jersey, providing the county with a pioneering financing solution that has become known within
the solar finance industry as the “Morris Model.” The
proceeds of the Series 2011A Bonds funded the second phase of the county’s Renewable Energy Program,
comprised of 9.2 MW of distributed solar photovoltaic
projects and electrical upgrades on the roofs, adjacent
land and parking lots of 10 local governmental units.
The innovative transaction structure achieves cost-effective financing terms by pairing the low cost of municipal
bonds with the value of various government incentives.
The developer of the solar projects sells renewable
energy through the Improvement Authority to each
governmental offtaker under a 15-year PPA, makes lease
payments to the Authority and pledges certain revenues
to secure its performance. In spite of a challenging economic environment, Wells Fargo was able to successfully
market the bonds at a significantly lower interest rate
than was achieved under the first phase of the county’s
solar program.
Enfinity: A profile of shared dedication to environmental progress and true relationship banking
Founded in Belgium in 2005, Enfinity has quickly grown
to become one of the largest solar developers in the
world, with more than $3 billion in solar projects under
management. Having initially built a footprint throughout Europe and Asia, Enfinity opened its North American
headquarters in Atlanta in March, 2010 as part of its
global expansion strategy. In need of a sophisticated
financial services provider with a deep understanding of
the solar market, Enfinity chose Wells Fargo’s National
Cleantech Group as its primary banking relationship.
Photo provided courtesy of Maxco Packaging
As its business expanded, Enfinity leveraged many of
Wells Fargo’s specialized products to meet its needs in
addition to utilizing Wells Fargo’s core suite of treasury
management and credit card services. In 2010, Enfinity
chose U.S.-manufactured modules for use in a 33 MW
solar farm in Ontario, Canada; Wells Fargo’s foreign
exchange group hedged Enfinity's currency exposure,
allowing it to effectively plan and finance its projects.
A 1.1 MW system installed for Maxco Packaging in central California was financed by
Wells Fargo Commercial Asset Leasing and Finance.
Wells Fargo further supported Enfinity’s growth in late
2011 with an agreement to deploy up to $100 million of
tax equity capital into U.S. solar projects developed and
managed by Enfinity. The first of these projects is a
9.8 MW solar plant at a manufacturing facility in
Napoleon, Ohio owned by Campbell Soup Company, a
long time Wells Fargo customer. Commencing operation
in December 2011, it became one of the largest distributed generation solar facilities in North America. The
Enfinity team collaborated with another of Wells Fargo’s
customers, SunPower, by utilizing SunPower’s highefficiency module technology and construction services
on the project.
Through its holistic approach to the renewable energy
industry, strong relationship focus and breadth of experience and services, Wells Fargo strives to support customers like Enfinity, SunPower and Campbell Soup Company
as they continue to grow, navigate business challenges,
and improve their operations.
5
Photo provided courtesy of EDP Renewables North America, LLC
Wind industry investments and services
The dynamic wind industry has endured many changes
over the last ten years due to competitive markets, natural gas price fluctuations and subsidy regime changes.
Although today wind power accounts for about 2.3% of electricity production in the U.S. it has rapidly gained market
share over the last ten years and currently provides enough
electricity for 8.2 million homes.9 Wells Fargo has consistently been among the most active players in providing tax
equity capital to wind projects, and also serves the commercial banking needs of a number of wind power technology
companies and developers.
Since entering the market in 2006 Wells Fargo has
invested over $1.6 billion of tax equity and facilitated
more than $700 million in debt financing for utilityscale wind projects. With ownership stakes in 38 projects located in 16 states, Wells Fargo’s investments
have supported the significant growth of the U.S. wind
industry. These projects were developed by 10 of the
world’s leading wind project development companies.
Select relationship developments in 2011 include:
EDP Renewables’ 99 MW Blue Canyon VI project in Oklahoma is owned in part by
Wells Fargo and its partner tax equity investors.
• EDP Renewables: In 2011 Wells Fargo expanded its
relationship with EDP Renewables North America, a subsidiary of leading European utility Energias de Portugal,
by providing tax equity to a 99 MW project in Oklahoma. The wind farm has a competitive levelized cost of
energy given its low installed cost, strong wind resource
and high production efficiency. This is the eighth EDP
Renewables project in which Wells Fargo has invested.
• Enel Green Power: In 2011, Wells Fargo and its partners
closed a tax equity partnership agreement for the funding of two wind projects totaling 350 MW. The projects
were developed by Enel Green Power North America, the
renewable energy division of Italy's largest utility. The
first of these two projects, totaling 200 MW in Kansas, is
expected to produce approximately 765 gigawatt-hours
per year, enough to serve the annual consumption of
approximately 70,000 American households and offsetting more than 580,000 metric tons of carbon dioxide
emissions each year, according to estimates by Enel. As
a part of this project, Enel also committed $8.5 million
to protect 18,000 hectares of Kansas tallgrass prairie in
the region, restore another 6,000 hectares, and conduct
research on the local habitat’s wind patterns and wildlife
that can contribute to a sustainable balance of renewable
energy development and environmental conservation.
Photo provided courtesy of E.ON Climate & Renewables
• E.ON: In December 2011, Wells Fargo invested in E.ON
Climate & Renewables North America’s 150 MW Settlers
Trail wind project, the first ever wind farm in Iroquois
County, Illinois. The project consists of 94 GE turbines
and according to E.ON provides enough electricity
to power more than 45,000 households in the central
Illinois region. E.ON brought more than 200 jobs to the
region at the height of construction and estimates that
over time the project will pay approximately $8 million in
local salaries. E.ON was one of Wells Fargo’s earliest tax
equity customers and Wells Fargo is also an investor in
423 MW of wind projects developed by E.ON in Texas.
E.ON’s 150 MW Settlers Trails wind farm in Illinois.
6
• NextEra: One of the world’s leading energy companies
with approximately 41 gigawatts of generating capacity,
NextEra Energy, Inc. has been a customer of Wells Fargo
since 1984. In 2011, Wells Fargo expanded its relationship with NextEra as a tax equity investor in Penta Wind,
a portfolio of wind projects developed by the company’s
subsidiary, NextEra Energy Resources. The projects
are located in five states and total more than 483 MW
of capacity. The investment utilizes a structure under
which Wells Fargo and its partner made initial up-front
payments in 2011 and have committed to additional
investments over time as electricity is produced. This
innovative financing is characteristic of NextEra’s extensive corporate banking relationship with Wells Fargo
of many years and across several financial products.
• Clean transportation: Wells Fargo provides banking
products and services to a number of major automotive,
infrastructure and fuel technology companies working to
develop a more sustainable transportation system, and is
also active in providing funding to municipalities across
the country for efficient public transportation infrastructure. In October 2011, Wells Fargo’s Community Lending
and Investment group provided more than $10 million
in equity as part of a $35 million New Market Tax Credit
financing for American Process, Inc. to finance its biorefinery in Alpena, Michigan. The refinery, scheduled to
begin operation in mid-2012, is among the first cellulosic
ethanol plants in the country and will convert waste
stream from an existing hardboard plant to ethanol fuel
using the company’s GreenPower+™ technology.
Sustainable infrastructure and transportation
Beyond renewable energy, Wells Fargo is a leading financier
of companies and projects focused on implementing
technologies and services to address key environmental
issues including electricity transmission, water infrastructure and clean transportation. Wells Fargo’s corporate,
commercial, and community banking teams have all played
an active role in financing green businesses in these sectors
and others. So, too, has Wells Fargo Securities’ Public
Finance team, which has raised more than $1.4 billion
for public sector environmental infrastructure projects
since 2005.
• Transmission grid projects: In 2011, Wells Fargo’s Power
and Utility group provided $44 million to a subsidiary
of Electric Infrastructure Alliance of America, a first of
its kind real estate investment trust that plans to invest
up to $2.1 billion to acquire, develop and provide electric
transmission from wind farms in northwest Texas to key
markets of Austin and San Antonio. This project is part
of the Competitive Renewable Energy Zone (CREZ) initiative, a mechanism meant to expand the grid to prime
wind energy areas of Texas in order to mitigate transmission constraints and enable further growth of the wind
industry in the region. CREZ will eventually transmit
more than 17 gigawatts of wind power to highly populated metropolitan areas of the state.
Green buildings and energy efficiency
Buildings in the U.S. account for more than 70% of the
nation’s electricity consumption and nearly 40% of the country’s carbon dioxide emissions.11 Much of the energy used by
buildings is wasted through inefficient use of lighting, heating and air conditioning, appliances, windows and ducts.
Making buildings more efficient, sustainable and healthy is
one of the most cost-efficient ways to reduce energy consumption and greenhouse gas emissions, but such investments still require large upfront capital outlays. Since 2005,
Wells Fargo has committed or arranged financing for more
than 150 LEED buildings, environmentally friendly housing
projects, and energy efficiency retrofits.
Photo provided courtesy of American Process, Inc.
• Water infrastructure: Water is perhaps the world’s most
precious and powerful resource, and yet by 2025, two
thirds of the world’s population could experience pervasive water stress conditions.10 Recognizing the importance of water issues, Wells Fargo has provided capital to
numerous companies and projects in sectors including
water treatment and purification, water use management,
and efficient irrigation. In 2011, Wells Fargo Securities’
Public Finance team helped municipalities to finance
more than $300 million of water infrastructure projects
and an additional $685 million for a run-of-river hydroelectric project.
A cellulosic ethanol biorefinery in Alpena, Mich., financed in part by Wells Fargo, will produce
over 695,500 gallons of fuel per year.
LEED-certified buildings
Wells Fargo has provided more than $5.8 billion in financing since January 2005 for building projects designed to
qualify for the U.S. Green Building Council’s Leadership
in Energy and Environmental Design (LEED) certification.12 Despite a slowdown in new construction in 2009
and 2010, Wells Fargo continued to demonstrate a commitment to expanding the green building market and in
2011 loaned more for LEED-certified buildings than in any
year since 2007. Green buildings for which Wells Fargo
has provided real estate loans incorporate qualities such
as energy and water efficiency, on-site renewable energy,
material and resource conservation, and improved indoor
air quality. Examples of projects financed by Wells Fargo in
2011 include:
• Mercy Housing Northwest: In June of 2011 Wells Fargo’s
Community Lending and Investment group provided
a construction loan to Mercy Housing Northwest to
construct an affordable housing complex in Boise,
Idaho. The project includes a rooftop solar installation
and is anticipated to be LEED Platinum-certified once
completed. Since 2005, Wells Fargo has provided
approximately $450 million for green businesses,
organizations, and projects in low income or distressed
communities, including more than $140 million to
LEED-certified community projects in 2011 alone.
7
Since 2010, the Wells Fargo Housing Foundation has also
provided $250,000 in grants to Mercy Housing Northwest
Idaho to support the organization’s efforts to rejuvenate
neighborhoods hit hard by foreclosure. The grants, along
with funds from the Neighborhood Stabilization Program,
allow Mercy Housing to purchase foreclosed homes, rehabilitate the properties to make them habitable and more
energy efficient, and sell them to low income families.
• UC Davis West Village project: The largest Zero Net
Energy development of its kind in the nation, the University of California Davis West Village is a dynamic
mixed-use community where students, faculty and
staff can live locally and participate fully in campus
life. By implementing energy efficiency measures and
meeting the community’s energy demands through
on-site solar power generation, UC Davis West Village
essentially eliminates its energy footprint. In 2010 and
2011, Wells Fargo financed two phases of the project,
which consists of over 500 student housing units as
well as retail space. Wells Fargo is also a donor to the
university’s Arthur H. Rosenfeld Chair in Energy Efficiency which recognizes and supports an exceptional
member of the energy efficiency faculty at UC Davis.
• Glide Foundation facility greening: In September
of 2011, Wells Fargo provided $200,000 in Green
EQ2 financing to Glide Foundation, a non-profit
organization in San Francisco’s Tenderloin neighborhood focused on alleviating suffering, poverty
and marginalization. Improvements to the facilities
facilitated by the financing include a new boiler, new
swamp cooler, new elevator doors, and new windows. Wells Fargo also provided a $250,000 grant to
Glide in December of 2011 to support Glide’s visionary health and wellness, youth education, leadership
development, and violence prevention programs.
Environmentally responsible lending
Beyond providing capital to customers and projects with a
primary focus on the environment, Wells Fargo manages the
environmental impacts of its portfolio of loans and investments. Wells Fargo seeks relationships with companies that
are managing their businesses in a responsible manner,
and has strengthened its responsible lending practices for
industries such as coal and metal mining. These lending
practices include enhanced credit approval requirements
and thorough due diligence processes that require an evaluation of a company’s environmental track record. By setting
these high standards for loans and investments across its
business units, Wells Fargo encourages strong environmental practices among its customers in all industries.
Rendering provided courtesy of Carmel Partners
Energy efficiency retrofits and community projects
Wells Fargo has provided or raised nearly $2 billion in
financing for government entities, companies, and organizations that support both environmental and community development goals. Through financing structures
such as Low Income Housing Tax Credits (LIHTCs), New
Markets Tax Credits (NMTCs), Green Equity Equivalent
Investments (Green EQ2s), New Clean Renewable Energy
Bonds (CREBs) and Qualified Energy Conservation Bonds
(QECBs), Wells Fargo has enabled energy retrofits, housing
projects, and public services in communities across the U.S.
that support environmentally friendly development and
rehabilitation.
• Gallaudet University energy efficiency upgrades: In
2011, Wells Fargo Securities’ Public Finance team served
as the senior manager for a $40 million bond offering
for Gallaudet University in Washington, DC, the only
independent higher education institution in the world
specifically designed to meet the unique educational
and communication needs of deaf people. A part of the
proceeds from the offering was used for energy efficiency
retrofits on the campus, which are expected to save up to
22% of the buildings’ energy consumption per year.
An artist’s rendering of the UC Davis West Village student housing and retail development project, the largest Zero Net Energy development of its kind in the U.S.
8
Photo provided courtesy of Wells Fargo
The Wells Fargo team is proud to be a supporter of numerous pioneering environmental organizations including GRID Alternatives, a Bay Area-based nonprofit with a mission to empower communities in need
by providing renewable energy and energy efficiency services, equipment and training.
Endnotes
1The
$11.7 billion environmental commitment total from 2005
through 2011 does not include capital raised by Wells Fargo
Securities in an advisory or syndicator role to municipalities or
private companies. Wells Fargo Securities has raised an additional $1.4 billion for cleantech companies, energy efficiency
and environmental infrastructure projects through stock or bond
offerings and capital lease structures. The environmental commitment total also excludes donations to environmental causes,
purchase, sale, or trading of publicly listed securities of green
businesses, and investments to improve the sustainability or efficiency of Wells Fargo’s own facilities and operations.
2Renewable
energy commitments include only investments and
debt financing for projects, and do not include capital allocations
to renewable energy companies. Green business commitments
include loans and investments to companies, organizations, and
community development projects for which environmentally
beneficial products and services are a central focus. This category includes loans and investments to renewable energy companies and green community development projects, but excludes
commitments to entities which are active in green business but
not as a primary endeavor. Green building commitments include
financing for real estate projects that are LEED-certified or are
designed and intended to become LEED-certified. Buildings
meeting other environmental certifications are excluded.
3Brookings
4U.S.
Institution (2010) “Sizing the Clean Economy”
Energy Information Administration (2012) “Annual Energy
Outlook.” According to EIA data, biomass, geothermal, solar,
and wind made up approximately 4% of U.S. electricity production in 2010. Hydropower made up another 6%. The definition
of renewable energy used by Wells Fargo in this report conforms
to the EIA’s definition as an energy source that is regenerative or
virtually inexhaustible and includes biomass (wood/wood waste,
municipal solid waste, landfill gas, biogas, and biofuels), geothermal, solar, wind, wave and tidal power, but excludes hydropower,
natural gas, and nuclear.
5GTM
Research/SEIA (2012) “U.S. Solar Market Insight.”
6Manufacturer
ranking based upon 2011 solar cell manufacturing
capacity data from Solarbuzz (2012) “NPD Solarbuzz PV Equipment Quarterly.” U.S. market share data based upon market
size estimates from GTM Research/SEIA (2012) “U.S. Solar
Market Insight.”
7Wells
Fargo Securities is the trade name for certain capital
markets and investment banking services of Wells Fargo &
Company and its subsidiaries, including Wells Fargo Securities,
LLC, member NYSE, FINRA, and SIPC and Wells Fargo Bank,
National Association.
88,000
homes is a conservative estimate by Wells Fargo based
upon an average annual U.S household energy consumption
(from all energy sources) of 13,500 kWh. Average household
electricity consumption in the U.S in 2010 was 11,496 kWh and
in New Mexico was 7,908 kWh. Thus the projects may serve the
electricity needs of up to 14,000 homes. Energy Information
Administration (2011) “Frequently Asked Questions.”
9U.S.
Energy Information Administration (2012) “Annual Energy
Outlook.” EIA data estimates that wind power produced approximately 95 terawatt-hours of electricity in 2010, and the average
U.S. home consumed approximately 11,496 kilowatt-hours of
electricity per year.
10Food
11U.S.
and Agriculture Organization (2012).
Green Building Council (2012).
12Of
the $3.7 billion in financing for LEED-certified buildings
since 2005, $110 million was lent in the first six months of
2005 prior to the establishment of Wells Fargo’s environmental
commitment in July 2005. LEED is a voluntary green building
rating system developed by the U.S. Green Building Council for
constructing high-performance, sustainable buildings.
9
Contact information
For questions or comments about this report please visit
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environmentalfinance@wellsfargo.com.
© 2012 Wells Fargo Bank, N.A.
All rights reserved. Member FDIC
MC-1627 03/12
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