August 2, 2007

San Jose Unified, Chevron, Bank of American unite
for K-12 Solar power energy efficiency program

San Jose Unified School District has entered into a partnership with Chevron Energy Solutions and Bank of America to establish a solar power and energy-efficient facilities program for the district schools.

The program, according to officials from each of the three groups, is believed to be the largest solar power, energy efficiency program in kindergarten through grade 12 education in the United States.

The program, which includes installation of 5 megawatts of solar power, is expected to offer more than $25 million in energy cost savings to the district over the life of the solar power system; district budget stability and predictability through known energy costs; no district capital investment is required; a 25 percent reduction in district demand for utility power; and reduction of 37,500 tons of carbon dioxide emissions equivalent to planting 400 acres of trees.

“This program is the result of years of research and commitment on the part of San Jose Unified’s board and is living proof that schools can improve their facilities and help the environment without tapping their capital budgets,” said Jorge Gonzalez, president of the district board of education. “It’s also an educational opportunity, it can help teach our school communities about energy efficiency and renewable power.”

Under the program, Chevron Energy Solutions will design, build, operate and maintain a total of 5 megawatts of solar photovoltaic arrays at the district’s schools and will measure, verify, and guarantee the solar energy system’s performance. Chevron Energy Solutions has developed more than 800 projects, since the year 2000, that involve energy efficiency or renewable power for U.S. education, government and business customers.

As part of its equipment finance and management business, Bank of America will own the solar equipment and through the company’s Energy Services Financing Solutions team, will sell power to the district under a service contract at rates significantly below market utility rates.

The first phase of the program will include a total of 2 megawatts of solar arrays to be installed on roofs at Gunderson High School and San Jose High Academy and parking lot shade canopies at Gunderson, Pioneer and Leland high schools as well as San Jose High. Construction will begin this summer and is expected to be complete in early 2008.

The programs subsequent phases will also include energy efficiency measures that will further reduce the district’s energy purchases and operating costs.

“To meet the world’s growing demand for energy, economic new sources of clean energy are needed, including solar power and energy efficiency,” said Jim Davis, president of Chevron Energy Solutions. “This innovative program demonstrates that school districts can play an important role in this new energy equation. We’re delighted to be a partner in this collaboration that clearly benefits the community and the environment.”

The first phase solar equipment costs will be offset by $4.2 million in incentives obtained through the California Solar Initiative in addition to federal investment tax credits. The first phase is expected to save the district $15 million, or about one-third of current energy costs at the four high schools, over the 25-year life of the power system.

“We are proud to partner with San Jose Unified School District and Chevron Energy Solutions by providing a creative and cost-effective financing solution for this renewable energy program.” Said Doug Bowers, president of Bank of America Leasing. “Through programs like this one, Bank of America continues to demonstrate its commitment to supporting environmentally sustainable energy initiatives.”

Bank of America recently committed $20 billion to support the growth of environmentally sustainable business activity to address global climate change. A 10-year initiative, it encourages development of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services.

San Jose Unified serves about 31,000 students from kindergarten through grade12 in San Jose. The district covers more than 100 square miles and includes 27 elementary schools, six middle schools and six comprehensive high schools.