Billings, Mont.-based First Interstate BancSystem is working to offset its energy usage in Iowa and Oregon by subscribing to two community solar gardens.
In July, the $31.5 billion bank announced its subscriptions to a 4.5-megawatt project being developed by Alliant Energy in Cedar Rapids, Iowa, and a 2.1-megawatt garden being developed by GreenKey Development near the western Oregon city of Brownsville. First Interstate was the first bank subscriber in each solar garden, signing up for 15 and 22 percent of the Iowa and Oregon projects, respectively.
Community solar gardens are undertaken in partnership with utility providers to generate solar power near where it is consumed. The subscriptions fulfill First Interstate’s geographic and capacity needs while being the right matches for the bank’s broader environmental and social governance initiatives, said Director of Corporate Real Estate Brian Bergler.
The Iowa solar garden will offset 100 percent of First Interstate’s Scope 2 emissions — those created by indirect sources, such as power plants that generate electricity — associated with the bank’s current electricity consumption in 19 of its 45 Iowa branches. The Oregon project is expected to allow First Interstate to offset approximately 80 percent of its Scope 2 emissions associated with electricity consumption in 22 of its 32 in-state locations.
The Iowa solar garden was under construction as of July, with energy production slated to start early next year. The Oregon solar garden is expected to begin producing energy in the third quarter of 2024. First Interstate has made a 20-year commitment to both projects, which will both utilize renewable energy certificates issued when one megawatt hour is achieved and delivered to the power grid from a renewable energy source. The bank is evaluating several additional solar projects.
“We’ve been searching for impactful ways to increase our sustainability efforts while continuing to demonstrate our commitment to the communities we serve,” said First Interstate President and CEO Kevin Riley. “Participating in these community solar gardens helps us achieve both these goals.”
The solar energy initiatives are part of the work of First Interstate’s ESG Steering Committee, which was established four years ago to guide the bank through environmental and sustainability considerations. A number of First Interstate branches are Leadership in Energy and Environmental Design certified as the bank focuses on using sustainable materials in new construction.
First Interstate BancSystem has not yet adopted specific carbon reduction targets as it establishes its electricity usage across its more than 300 branches in 14 states — Arizona, Colorado, Iowa, Idaho, Kansas, Minnesota, Missouri, Montana, North Dakota, Nebraska, Oregon, South Dakota, Washington and Wyoming. Despite completing its acquisition of regional bank Great Western Bancorp last year, First Interstate reduced its overall square footage by nearly 55,000 square feet in 2022.
“When designing and building new branches, we consider how to right-size the facility — one that surrounds our employees and clients with a comfortable environment while providing the energy efficiency associated with smaller spaces,” the bank stated in its 2023 annual ESG report. “We also evaluate how we may incorporate renewable energy into our new builds when practical, such as installing solar panels to reduce energy costs.”