AF M&V Template

1. AF M&V Template K. Quinn Hart, P.E Air Force Facilities Energy Program Manager HQ AFCESA

2. M&V for the USAF • Cost Effective • Designed to Acquire and Maintain Savings for Installations • Designed to Accelerate Implementation • AFCESA introducing standard M&V Plans to address 80% of the needs • Common Sense Solutions • Boil M&V down to the Essence and monitor/measure only what is essential to guarantee the savings

3. AFCESA Assists Installations & ESCOs • Standard M&V methods being introduced to accelerate growth • Less review required • Faster turnaround and approval • Targeted for the “80% solution” • Growing pains being experienced as the USAF and ESCOs learn monitoring methods • Bring our collective expertise to the table • Define expectations up front • Refocus from short term to long term solutions • M&V cost goal--- use only 5% to 10% of savings for M&V

4. ESCO Contract History • In the past, many Task Orders utilized stipulated savings • How does this insure savings over task order term • The USAF then assumed all risk for achieving savings • If savings were not met, no budget existed to make up short-fall

5. Cost Effective M&V • Focus on cost-effective measurement and long term solutions • This means that the USAF Installation and the ESCO share the risk of energy and savings performance • The USAF will typically assume the operational “amount of use” risk • The ESCO will typically have the equipment performance risk

6. Example - VSD • Variable Speed Drive Retrofit • Can save substantial energy and maintain comfort • For a VSD Retrofit with 10 motors at 50 HP • Savings estimated at $114,000 at 8760 hours per year • M&V target cost in the range of $6,000 to $12,000 per year (5% to 10%)

7. Example - VSD • Variable Speed Drive Retrofit • Lost saving often accumulate at 10%-20% / year • For a VSD Retrofit with 10 motors at 50 HP • Losses from not performing M&V could exceed $600,000 in first 10 years • M&V Costs at 10% are $114,000 over the 10 years • Automating M&V can further reduce cost of M&V

8. Example - VSD • Variable Speed Drive Retrofit • Key risks are: • Disabling the VSD control and operating at 100% • Not repairing a dysfunctional control element • VSD Inverter Failure • Results in $0 savings for that motor application • M&V Plan designed to prevent these risks from eroding savings

9. Example - VSD • Variable Speed Drive Retrofit • M&V Plan Outline Details

10. Summary • Cost Effective M&V Solutions Being Introduced • Performance Risk Shared • USAF / ESCO • Designed to Maintain Performance Over Contract Life • USAF Needs $ 1 Billion Infrastructure • M&V Designed to Accelerate Implementation