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