1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force As of:1 AF M&V Template K. Quinn Hart, P.E Air Force Facilities Energy Program Manager HQ AFCESA

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of:9 Example - VSD Variable Speed Drive Retrofit M&V Plan Outline Details

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e As of: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