Bank of America issues $500 million "Green Bond"

In November 2013, Bank of America issued the first ever corporate “Green Bond.” The funds of this senior debenture will be used specifically to finance renewable energy projects such as wind, solar and geothermal energy. Funds will also be used to finance energy efficiency projects that help reduce energy consumption per unit of output and include projects such as lighting retrofits, district heating, co-generation, and building insulation in residential, commercial and public properties. The proceeds from this offering will be used to support a subset of assets that qualify for Bank of America’s 10-year, $50 billion environmental business initiative to help address climate change, reduce demands on natural resources and advance lower-carbon economic solutions. For more information, view our press release and our Management Assertion.

Here are some examples:

Energy efficiency finance
City of Los Angeles Streetlights Project. More Details
Antioch Unified School District. More Details
City of Oakland Streetlights Project. More Details

Renewable energy finance
Silicon Ranch, Simon Solar. More Details
Atlantic Power, Canadian Hills. More Details
NextEra, Pioneer Plains. More Details
NextEra, Steele Flats. More Details
Invenergy, Prairie Breeze. More Details

 

City of Los Angeles Streetlights Project

$40MM financing for the City of Los Angeles, California to finance the largest LED streetlight retrofit project in the world.

Under the LED Street Lighting Energy Efficiency Program, the City of Los Angeles retrofitted 141,089 street lights with LED bulbs.

Before the program, LA’s street lights consumed 168 gigawatt hours of electricity at an annual cost of $15MM, while emitting 110,000 metric tons of carbon dioxide. The new lights reduce energy use by 63.1 percent and reduce carbon emissions by 47,583 metric tons a year.

LED lights on average lower energy consumption, delivering between 44 and 53 percent annual savings in energy costs when compared with high pressure sodium lights. In addition, they have a longer lifespan of up to 20 years, reducing maintenance costs while providing greater functionality.

Estimated annual environmental benefits:

  • Water use avoided (thousands of liters): 1,407,000
  • Non-hazardous waste avoided (metric tons): 700
  • MWh reduced from efficiency projects: 71,000

 

      Antioch Unified School District

      $30MM Qualified Zone Academy Bonds (QZABs) with the Antioch Unified School District in California for solar and energy efficiency equipment.

      The financing will provide funds for the District to purchase solar panels for installation at 24 school sites as well as energy efficiency equipment for lighting and HVAC upgrades. The systems will be used to produce electricity and offset utility costs, generating additional revenue and energy savings.

      The solar project will be integrated into the Pathway to Engineering program of study at Antioch High School. Students in the Pathway to Engineering Academy will be provided a “living solar laboratory”, where clean renewable energy is not only generated for the benefit of the District’s electrical energy consumption, but also monitored, measured and integrated into the core engineering curriculum. 
                              
      The entire energy project is expected to save the District $34.3MM over the 25-year useful life of the project.

      Estimated annual environmental benefits:

      • Global Warming metric tons CO2e avoided: 7,700
      • Water Use avoided (thousands of liters): 206,000
      • Non-hazardous waste avoided (metric tons): 103
      • MWh reduced from efficiency projects: 1,700
      • MWh produced from renewable project: 8,700

       

          City of Oakland Streetlights Project

          $16MM structured financing for City Of Oakland, California to finance the conversion of of 30,000 high pressure sodium (HPS) cobra head streetlights to Light-Emitting-Diode (LED) streetlights.
           
          Oakland is one of the first municipalities in the U.S. to implement wide-scale street lighting LED conversion. About 10% of the municipalities in the United States have converted, or are in the process of converting to LED lights.
           
          LED lights on average lower energy consumption, delivering between 44 and 53% annual savings in energy costs when compared with HPS. The enhanced lighting will provide better vision on Oakland streets, resulting in crime mitigation and improved community safety. Since a portion of the project will be completed by local personnel, it will spur job growth in the City.

          Estimated annual environmental benefits:

          • Energy cost savings: $1,472,000
          • Global Warming metric tons CO2e avoided: 11,048
          • Water Use avoided (thousands of liters): 1,119,975
          • Non-hazardous waste avoided (metric tons): 147
          • MWh reduced from efficiency project: 14,869

           

            Silicon Ranch, Simon Solar

            $88.8MM True Lease financing of a 30MW utility scale solar farm for Silicon Ranch Corporation

            Silicon Ranch Corporation is a developer, owner and operator of commercial and utility scale solar facilities.

            Simon Solar, located on a 200-acre site in Social Circle, Georgia, features a total of 129,390 ground-mounted solar modules and produces approximately 58MM kilowatt hours annually, or enough to power approximately 6,500 homes.

            The solar installation generates renewable energy to the electric grid through a 20-year Power Purchase Agreement with the Georgia Power Company.

            Estimated annual environmental benefits:

            • Global warming metric tons CO2e avoided: 46,000
            • Water use avoided (thousands of liters): 1,228,000
            • Non-hazardous waste avoided (metric tons): 600

             

              Atlantic Power, Canadian Hills

              $42MM structured transaction with Canadian Hills Wind, a wind power equity partnership investment developed, constructed, operated and managed by Atlantic Power.

              Atlantic Power owns and operates a diverse fleet of power generation assets in the U.S. and Canada. The company’s projects sell electricity to utilities and other large commercial customers, largely under long-term power purchase agreements, which seek to minimize exposure to changes in commodity prices.

              Canadian Hills is an approximately 300MW wind power project located near El Reno, Oklahoma, 20 miles west of Oklahoma City, Oklahoma. The wind farm consists of 135 wind turbines, with a combined capacity to generate 298.5 MW of electricity.

              The project is expected to generate enough clean, renewable energy to power the equivalent of over 100,000 homes, with the power sold to a number of regional utilities, including Southwest Electric Power Company, Oklahoma Municipal Power Authority, and Grand River Dam Authority.

              Estimated annual environmental benefits:

              • Global Warming metric tons CO2e avoided: 75,000
              • Water Use avoided (thousands of liters): 7,600,000
              • Non-hazardous waste avoided (metric tons): 1,000

               

                  NextEra, Pioneer Plains

                  $170MM tax equity investment in a wind power partnership with NextEra Energy Resources.

                  NextEra Energy Resources is the largest operator of wind and solar power assets in the United States.

                  The partnership finances the Blackwell and Minco III wind farms, in central and eastern Oklahoma, respectively, for a total of 160 MW of power generation. The facilities have been in operation since December 2012 and have enough installed capacity to generate power for more than 42,000 average homes.

                  Additionally, the facilities deliver clean, renewable power to the citizens of Oklahoma City and surrounding areas.

                  Estimated annual environmental benefits:

                  • Global Warming metric tons CO2e avoided: 157,000
                  • Water Use avoided (thousands of liters): 4,209,000
                  • Non-hazardous waste avoided (metric tons): 2,000

                   

                      NextEra, Steele Flats

                      $86.8MM tax equity investment in a wind power partnership with NextEra Energy Resources

                      NextEra Energy Resources is the largest operator of wind and solar power assets in the United States.

                      The partnership finances Steele Flats, a 75MW clean power generation facility, located in Jefferson and Gage counties in southeast Nebraska, comprised of 44 wind turbines.

                      The facility broke ground in June and achieved commercial operation in October 2013. The electricity generated from the facility is being sold to the Nebraska Public Power District under a 20-year power purchase agreement. The facility delivers clean, renewable power to the citizens of Jefferson and Gage counties, producing enough electricity to power 19,000 homes.

                      Estimated annual environmental benefits:

                      • Global Warming metric tons CO2e avoided: 114,000
                      • Water Use avoided (thousands of liters): 3,050,000
                      • Non-hazardous waste avoided (metric tons): 1,500

                       

                            Invenergy, Prairie Breeze

                            $58MM tax equity investment in a wind power partnership with Invenergy

                            Invenergy is a developer, owner, and operator of power generation facilities in North America and Europe. The partnership finances Prairie Breeze, a 200.6MW clean power generation facility composed of 100 wind turbines located in Antelope and Boone counties in Nebraska.

                            The facility broke ground in May 2013 and achieved commercial operation in January 2014. The electricity generated from the facility is being sold to the Omaha Public Power District under a 25-year power purchase agreement. The facility delivers clean, renewable power to the citizens of Antelope and Boone counties, producing enough electricity to power 100,000 homes.

                            Estimated annual environmental benefits:

                            • Global Warming metric tons CO2e avoided: 141,000
                            • Water Use avoided (thousands of liters): 3,786,000
                            • Non-hazardous waste avoided (metric tons): 1,900

                             

                             

                            *Estimated annual environmental benefits are calculated by a top 4 public accounting firm, using Bank of America financial inputs and the Comprehensive Environmental Data Archive (CEDA).

                            *Images are not representative of projects described on this page.