Proposal for:

Compressed Air Leak Abatement Program

Submitted to:

Green Mountain Power Corporation CEED Fund 67 Merchants Row, Suite 104 Rutland, VT 05701

September 13, 2013

Submitted by: EnSave, Inc. 65 Millet Street, Suite 105 Richmond, VT 05477 (802) 434-3792 www.ensave.com

CEED FUND PROPOSAL QUESTIONNAIRE Compressed Air Leak Abatement Program

Organization Name: Mailing Address: Contact Name: Primary Phone #: Cell Phone #: Email Address: EnSave, Inc. 65 Millet Street, Suite 105, Richmond, VT 05477 Craig Metz, President 802-434-1822 802-578-8807 craigm@ensave.com

1. Proposal Narrative
Program Summary Like many states across the country, Vermont is home to numerous machine shops, auto body shops, tire stores, and manufacturing facilities. One common denominator for these diverse businesses is their use of compressed air for production and tools. Air compressors are an integral part of their business, yet many operators unwittingly waste energy by leaving compressors running when they are not in use. The Compressed Air Leak Abatement Program will significantly reduce energy wasted through leaks and maintain required air pressure for these operations by utilizing a programmable isolation valve that will automatically open and close based on the facilitys operating hours. EnSave proposes a program to market the use of this technology to legacy CVPS commercial customers who operate compressors 15 horsepower or larger. We will provide the programmable isolation valvecalled the EnSaver-- as a direct install measure provided at no charge to customers. The simple payback for the installation of the device is under one year with a EUL of 5 years. EnSave is seeking $390,407 in non-incentive funds for this one-year program, resulting in a NSB ratio of 2.1 Customer Segments Targeted EnSave will target the commercial sector throughout the entire legacy CVPS territory.

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Implementation Plan Marketing Plan EnSave will promote the program through a combination of phone outreach, direct mail, field representative site visits, and advertisements. The EnSave representatives making phone and site visit outreach will explain the technology to potential customers, answer questions, discuss how to participate in the program and set up appointments for the Compressed Air Technician to install the technology. Customer Application/ Enrollment Process Customer learns of the program via direct mail, advertisement, trade show, field representative site visit or call. To enroll in the program, they will fill out an application with the following information, which will enable EnSave to calculate energy savings for the project: o Motor horsepower o Number of compressors o Type of compressor (e.g. reciprocating, screw) o Number and length of shifts per day o Number of days off o Photograph of compressor configuration including piping o Location of closest power outlet o Type of piping to compressor (e.g. copper, galvanized) o Size (diameter) of pipe A Compressed Air Technician will travel to each site to install the technology, provide the equipment specifications, and provide a brief tutorial on its operation. The visit to install the equipment and educate owners and staff will take about 2 hours per site. EnSaves Field Representative will visit each site to verify installation, and will also follow up with each customer to discuss future compressed air or energy efficiency projects. This followup process will identify possible lost opportunities for energy savings within the commercial sector, and will help support the goals of other CEED or Efficiency Vermont programs. Program Implementer The program will be implemented by EnSave, Inc., a Richmond, VT-based firm with a national presence as the nations leading designer and implementer of energy efficiency programs for the agricultural and food processing sectors. In addition to running turn-key agricultural incentive programs for utilities and state agencies throughout the country, EnSave is also a technical service provider with USDA Natural Resources Conservation Service across the United States to provide farm energy audits. The companys origins in 1991 began with providing energy audits, measure implementation, and onbill financing to Vermont electric utilities and rural electric cooperatives prior to the organization of Efficiency Vermont. Since then, we have worked closely with Efficiency Vermont on several agricultural projects including the delivery of a geo-targeting project for agriculture, specialized agricultural market Page 2 of 7

consulting, delivery of a farm engine block heater timer program, and delivery of the Farm Direct Install program through the 2013 CEED funding. We have extensive experience managing energy efficiency programs, and have successfully implemented strategies to encourage a hard-to-reach sector to install energy efficiency measures. Our methods of direct phone outreach, coordination with the trade community, and personal visits will build trust in the program and provide results. We also have a track record of utilizing a field representative to market a program and provide technical services while on site. This program will utilize a similar approach to the one EnSave uses in the CEED-funded Farm Direct Install program and the Agriculture Energy Efficiency Program delivered for the New York State Energy Research & Development Authority. Both the agricultural sector and the commercial sector are often underserved because they can be hard-to-reach, widely dispersed, and lack a key account representative or an energy efficiency program devoted to their needs. We understand how to affect a hard-to-reach small to medium business sector and generate energy savings that would otherwise not be realized. EnSave has partnered with Vermont Energy Investment Corporation to assist with the reporting and measurement & verification of this project. As the implementer of Efficiency Vermont, Vermont Energy Investment Corporation has a wealth of experience in reporting to the public service board, and their role in the M&V will ensure our verification process is completed by a neutral third party rather than EnSave staff. Costs and Benefits The cost of the program is $390,407, resulting in annual energy savings of 1,324,000 kWh and generating a NSB ratio of 2.1. Additionally, this program will introduce a new measure to Vermonts commercial sector and generate energy savings that would not otherwise be realized. Measurement and Quantification of Benefits We have made assumptions about the total program energy savings based on a likely mix of motor sizes and production schedules. The data we capture during the application phase and checking the motor horsepower while performing the site installation will enable us to refine estimated energy savings for each project. This program will utilize a measurement & verification process to monitor actual energy used in a sample of sites. We will use Vermont Energy Investment Corporation as a subcontractor to perform this real-time data logging. We will develop a measurement & verification plan in consultation with this subcontractor and plan to complete monitoring on 10% of installed projects. The M&V process will follow this plan: 1. VEIC develops M&V plan in consultation with EnSave Page 3 of 7

2. A customer enters the program, at which point the site is flagged for M&V 3. VEIC clamps on a current transformer (CT) to the power supply of the compressor and plugs it into a data logger on site, set for two weeks @ 5 minute intervals. 4. After two weeks, EnSaves technician installing the shutoff valve unplugs the data logger from the CT and plugs in a new data logger in its place, set for another 2 weeks @ 5 minute intervals; starts logger; sends old logger to VEIC. 5. After another two weeks, VEIC goes to site to unclamp CT and collect logging equipment. 6. VEIC completes analysis and verification report. All actual kWh savings will be run through the Vermont Department of Public Services net societal benefits tool, which we will use to determine actual savings resulting from the program. Logistics of Data Collection, Tracking, and Results Reporting EnSave will collect baseline data about each compressed air system during the application and direct installation phase. We will calculate energy savings based on the power measurement, a leak load test and the number of shifts per day. We will perform measurement & verification on a sample of sites to document actual verified savings. EnSave will record each customers name, address, type of business, GMP account number, compressor horsepower, number of shifts, and number of units installed, and additional energy saving projects recommended. We will provide reports to GMP on a monthly basis.

2. Proposal Questionnaire
Program and Customer Information 1. What type of project is being proposed? We propose installing an automatically controlled shutoff valve for compressed air systems. We plan to install this device within the commercial sector in Vermont. We project saving 1,324,000 kWh from this technology over a one year period, with an NSB of 2.1. 2. Which customer segment is targeted? We will target commercial/industrial customers who use compressed air to operate production with rotary screw compressors 15 horsepower or larger. Customers who use compressed air represent a diverse range of commercial customers and include auto body shops, tire shops, metal fabricators, machine tool shops, production, and manufacturing facilities.

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3. How many customers will participate? We anticipate approximately one hundred customers will participate over the one-year period, based on most customers needing one device installed. 4. Which geographic areas of the legacy CVPS service territory will be served? We will target customers throughout the entire legacy CVPS service territory. Investment and Benefits Information 5. What is the investment schedule being proposed? We will provide the device on a direct install basis. We propose costs that will vary between three tiers based on compressor size for a total of $56,050:
Compressor Designation Small Medium Large Compressor Size 15-50 HP 550-850 HP >100 HP Installed Cost per Unit $425 $550 $875 Number of Units 28 58 14

Installation cost includes the equipment, labor, miscellaneous parts and travel costs for the installer. 6. When are customer benefits first achieved? Since payback is within one year, the customer benefits are achieved within the first year of ownership and will continue for the EUL of the technology. 7. What are the Net Societal Benefits (NSB) that will be achieved per dollar invested? The NSB achieved per dollar invested are $2.10. 8. How will the NSB be calculated? The NSB will be calculated using the Vermont Statewide Field Screening Tool, provided by Green Mountain Power via the CEED website. 9. What % of the NSB will the program achieve in electric benefits? 100% of the NSB will be achieved in electric benefits.

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10. What are other non-electric benefits? Other benefits include decreased compressor maintenance and life cycle costs due to reduced runtimes. Per the U.S. Environmental Protection Agencys eGRID 2007 database, the energy savings will also yield the following emission reductions:
USEPA eGRID 2007 Emission reductions in pounds CO2 6,156.6 N2O 15.7 CH4 117.3 SO2 22.51 NOx 269.3

11. If this is a multi-year program, describe the importance of having recurring funding for this program and the implications of achieving NSB in each period. This program is presented as a one-year program. It is a pilot project using a technology that not yet been widely implemented. Neither Green Mountain Power nor Efficiency Vermont has utilized this technology before in an energy efficiency program. Because of these factors, this program works best as a relatively small pilot project that can be scaled up in later years to affect more of the Vermont marketplace. Start-Up Information 12. Is this is a new or established program? This is a new program. 13. How does this program meet the But/For test? There is currently no provision to provide this technology to Vermont customers through Efficiency Vermont, the utilities, or any other means. Presently the device is bundled with valves and is used in large industrial applications to automatically shut off compressed air lines in portions of a plant that have different operating schedules. However, the technology has not yet been deployed for small to medium commercial compressed air users. This program would be the first utilization of this product for Vermont commercial compressed air users. 14. What are the expected costs of the program? The expected cost is $390,407. 15. When is the proposed start date of the program? The proposed start date of the program is January 2014. 16. How long will customer benefits persist after the initial benefit is achieved (in years)? Page 6 of 7

The device has an estimated useful life of five years. With payback achieved in less than one year, we anticipate the customer benefit will persist for at least ten years. 17. How will the program results be measured and evaluated? Since we are providing the measure to customers as a direct-install, we will ensure devices are in use by having a Field Representative verify each installation after the Compressed Air Technician has installed the device. Since this is a new application of technology, we will measure the program results through measurement & verification on 10% of the installed projects. We have partnered with Vermont Energy Investment Corporation to provide this service. 18. How will program costs and benefits be reported to GMP? EnSave will report program costs and benefits to GMP on a monthly basis. 19. How often will reports be provided to GMP? EnSave will report program progress on a monthly basis for the duration of the program.

Direct Cost Breakdown

Cost Element
Planning & Reporting Admin Tech Assistance Incentives Marketing Information Technology (M&V) Participant Share of Costs Total Costs

Start-Up Costs
$ N/A $ N/A $ N/A $ N/A $ N/A $ N/A $ N/A $ N/A

Total Program Costs

$67,411 $37,076 $81,110 $56,050 $128,760 $20,000 $0 $390,407

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