Wells Fargo Environmental Finance Report

March 2012

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.

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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 sustain-able 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 renew-able energy construction financing and cleantech insurance brokerage, and built upon its core traditional banking services tailored toward companies in these sectors. Wells Fargo’s mul-tiple 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.

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Renewable energy projects$3.8 billion

Green businesses$2.1 billion

Green buildings$5.8 billion

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

Wells Fargo’s breadth of services for environmental customers spans multiple business groups

• Wells Fargo Environmental Finance

• Community Lending and Investment

• Real Estate Banking and Real Estate Capital Markets

• Wells Fargo Equipment Finance and Commercial Asset Leasing and Finance

• National Cleantech Group

• Public Finance and Sustainable Public Infrastructure

• Wells Fargo Securities Renewable Energy Group

• Wells Fargo Insurance Services

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

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Green business and renewable energyOver 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 pro-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 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.

Solar industry investments and servicesFor 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 ser-vices, 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 high-profile domestic and foreign solar companies, raising more than $600 million of capital since 2009.7

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 devel-oped 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 pro-grams 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 solu-tions. 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. Enfin-ity 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.

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.

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.

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• SunEdison: In 2011, Wells Fargo saw a significant expan-sion 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 Electron-ic Materials, SunEdison acquired another leading partner of Wells Fargo’s, Fotowatio Renewable Ventures, in Sep-tember 2011. Following the acquisition and the creation of two new funds last year, Wells Fargo is now an inves-tor 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.

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 total-ing 53.5 MW. This was one of the first times that construc-tion financing and tax equity have been provided in tan-dem for a utility scale solar project, and is an example of Wells Fargo’s expanding scope of services to the industry.

• 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, oper-ates 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 facil-ity. 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.

• 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 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 utility-scale 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.

53.5 MW for a more sustainable New MexicoWells Fargo’s first utility-scale solar PV investment

• SunEdison’s five solar PV installations in southeastern New Mexico are collectively the largest solar PV proj-ect 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 pur-chased 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 larg-est owners of solar assets in the country.

• 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.

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• Construction finance: Wells Fargo’s National Cleantech Group began offering construction financing for solar projects in 2010, enabling a more complete and effi-cient 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.

• Municipal finance: Since 2009 Wells Fargo Securi-ties’ Sustainable Public Infrastructure group has served municipalities with public finance solutions to fund envi-ronmental infrastructure projects from wastewater treat-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 bonds for the Morris County Improvement Authority in New Jersey, providing the county with a pioneer-ing financing solution that has become known within the solar finance industry as the “Morris Model.” The proceeds of the Series 2011A Bonds funded the sec-ond 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-effec-tive 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 eco-nomic 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.

• 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 tradi-tional 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 quali-fied 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.

A 1.1 MW system installed for Maxco Packaging in central California was financed by Wells Fargo Commercial Asset Leasing and Finance.

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Enfinity: A profile of shared dedication to environ-mental 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 through-out 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.

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.

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 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.

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Wind industry investments and servicesThe 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-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: In 2011 Wells Fargo expanded its relationship with EDP Renewables North America, a sub-sidiary of leading European utility Energias de Portugal, by providing tax equity to a 99 MW project in Okla-homa. 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.

• 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.

• Enel Green Power: In 2011, Wells Fargo and its partners closed a tax equity partnership agreement for the fund-ing 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 offset-ting 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.

• 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 relation-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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EDP Renewables’ 99 MW Blue Canyon VI project in Oklahoma is owned in part by Wells Fargo and its partner tax equity investors.

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Sustainable infrastructure and transportationBeyond 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 infrastruc-ture 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) ini-tiative, a mechanism meant to expand the grid to prime wind energy areas of Texas in order to mitigate transmis-sion 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 popu-lated metropolitan areas of the state.

• 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 perva-sive water stress conditions.10 Recognizing the impor-tance 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 hydro-electric project.

• 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 infrastruc-ture. 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 bio-refinery 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.

Green buildings and energy efficiencyBuildings in the U.S. account for more than 70% of the nation’s electricity consumption and nearly 40% of the coun-try’s carbon dioxide emissions.11 Much of the energy used by buildings is wasted through inefficient use of lighting, heat-ing 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 con-sumption and greenhouse gas emissions, but such invest-ments 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.

LEED-certified buildingsWells Fargo has provided more than $5.8 billion in financ-ing since January 2005 for building projects designed to qualify for the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certifica-tion.12 Despite a slowdown in new construction in 2009 and 2010, Wells Fargo continued to demonstrate a com-mitment 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.

A cellulosic ethanol biorefinery in Alpena, Mich., financed in part by Wells Fargo, will produce over 695,500 gallons of fuel per year.

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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, reha-bilitate 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 Uni-versity 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 Effi-ciency which recognizes and supports an exceptional member of the energy efficiency faculty at UC Davis.

Energy efficiency retrofits and community projectsWells Fargo has provided or raised nearly $2 billion in financing for government entities, companies, and orga-nizations that support both environmental and commu-nity 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.

• 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 neigh-borhood 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 win-dows. Wells Fargo also provided a $250,000 grant to Glide in December of 2011 to support Glide’s vision-ary health and wellness, youth education, leadership development, and violence prevention programs.

Environmentally responsible lendingBeyond 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 invest-ments. 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 evalu-ation of a company’s environmental track record. By setting these high standards for loans and investments across its business units, Wells Fargo encourages strong environmen-tal practices among its customers in all industries.

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.

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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.

Endnotes1The $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 ad-ditional $1.4 billion for cleantech companies, energy efficiency and environmental infrastructure projects through stock or bond offerings and capital lease structures. The environmental com-mitment 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 ef-ficiency 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 cat-egory includes loans and investments to renewable energy com-panies 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 Institution (2010) “Sizing the Clean Economy”4U.S. Energy Information Administration (2012) “Annual Energy Outlook.” According to EIA data, biomass, geothermal, solar, and wind made up approximately 4% of U.S. electricity produc-tion 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), geother-mal, 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 Equip-ment 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 approxi-mately 95 terawatt-hours of electricity in 2010, and the average U.S. home consumed approximately 11,496 kilowatt-hours of electricity per year.

10Food and Agriculture Organization (2012).11U.S. 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.

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© 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC MC-1627 03/12

Contact information

For questions or comments about this report please visit www.wellsfargo.com/environment or email environmentalfinance@wellsfargo.com.