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Solar arrays at 14 sites expected to generate 75 per cent of annual power needs and lower carbon emissions by 23,600 metric tons

MILPITAS, Calif., June 25, 2008 - Milpitas Unified School District, in collaboration with Chevron Energy Solutions and Bank of America, today announced it has begun construction on a 14-site, districtwide solar power and energy efficiency program designed to supply 75 percent of the district's total annual electricity needs through solar energy.

The 3.4-megawatt solar installation will generate what is believed to be the highest percentage of solar power for any K-12 school district in the United States and will supply 100 percent of the district's power during the peak-demand summer months, when California's electricity needs are greatest.

The program benefits the district and school community in several ways:

  • Cost Savings - The program is designed to reduce the district's energy costs by more than 22 percent and will result in $12 million in savings for the district's general fund over the life of the solar power system, while providing positive cash flow and budget predictability through known energy costs.
  • Clean Energy - By lowering the district's purchase of utility power, the solar project will reduce carbon emissions by an estimated 23,600 metric tons - equivalent to planting 270 acres of trees.
  • Education - The program provides an on-site laboratory for alternative energy and opportunities for providing energy science education.
  • Comfort - The new solar-paneled structures will provide shade for cars and people.

"We are proud to do our part to contribute toward the state of California's goal of using renewable and ultraclean power generation to achieve grid-neutral school facilities," said Dr. Karl Black, superintendent of Milpitas Unified School District. "We appreciate the support that David Thorman, state architect of California, and his team provided and the partnership with Chevron Energy Solutions and Bank of America to make this program a reality."

Chevron Energy Solutions (CES), a unit of Chevron (NYSE: CVX), will construct parking canopies and shade structures mounted with solar photovoltaic arrays at 13 schools and one district site. CES will provide maintenance for the solar power system as well as measure and guarantee its performance. CES will also install energy management software on the district's computers to improve energy efficiency. Chevron Energy Solutions has developed more than 900 projects involving energy efficiency or renewable power for education, government and business customers in the U.S. since 2000.

Bank of America, through Banc of America Leasing Energy Services team, structured and provided financing for the project as part of its $20 billion environmental initiative. The California Solar Initiative and other incentives offset the overall cost of the program by $4.2 million.

The start of construction was celebrated today at a Rancho Milpitas Middle School event attended by government, business and district officials. The project is scheduled to be completed by the end of the year.

"Milpitas Unified School District, along with other education institutions, is using solar power to benefit the community and reduce their carbon footprint while achieving cost savings," said Jim Davis, president of Chevron Energy Solutions. "We are delighted to be part of this growing trend through partnership programs such as this that are delivering effective energy solutions to communities."

"Bank of America provides strategic and cost-effective financing solutions for renewable energy and energy efficiency projects for our clients throughout the public and private sectors," said Doug Bowers, president of Banc of America Leasing. "This exciting effort with the Milpitas Unified School District and Chevron Energy Solutions demonstrates that school districts large and small can go solar, save money and reduce their carbon footprint."

About Milpitas Unified School District

The Milpitas Unified School District is a high-achieving and growing K-12 district located in the heart of Silicon Valley. The student population, which is just under 10,000, is rich in ethnic and cultural diversity. The district serves the academic needs of over 95 per cent of the children living in the city of Milpitas. The district has nine elementary schools, two middle schools, one comprehensive high school, one alternative high school and a community day school. In addition to the K-12 program, the district also provides the community with day care, preschool and adult education programs. The district is fortunate to have dedicated and caring teachers, administrators, support staff and Board of Education. In addition, the district enjoys the support of the city of Milpitas, business and the local community. The district exemplifies its vision of "Every Student Valued, Every Student Challenged, and Every Student Successful."

About Chevron Energy Solutions

Chevron Energy Solutions provides public institutions and businesses with environmentally sound programs that increase energy efficiency, reduce energy costs and ensure reliable, high-quality power for critical operations. The company employs proven technologies to meet customers' specific needs. Its parent, Chevron Corporation, is investing across the energy spectrum to develop energy sources for future generations by expanding the capabilities of alternative and renewable energy technologies. Chevron spent approximately $2 billion on alternative and renewable energy development between 2002 and 2006, and expects to spend more than $2.5 billion between 2007 and 2009. For more information, please visit www.chevronenergy.com and www.chevron.com.

About Bank of America

Bank of America (NYSE: BAC) is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial products and services. The company's Global Corporate and Investment Banking group (GCIB) focuses on companies with annual revenues of more than $25 million, middle-market and large corporations, institutional investors, financial institutions, and government entities. GCIB provides innovative services in mergers and acquisitions, equity and debt capital raising, lending, trading, risk management, treasury management and research. Bank of America serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Global Fortune 500. Many of the bank's services to corporate and institutional clients are provided through its U.S. and U.K. subsidiaries, Banc of America Securities LLC and Banc of America Securities Limited. For additional information, visit www.bankofamerica.com.