CEED FUND PROPOSAL QUESTIONNAIRE. Vehicle Fleet Energy Efficiency Program
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1 CEED FUND PROPOSAL QUESTIONNAIRE Vehicle Fleet Energy Efficiency Program Organization Name: EnSave, Inc. Mailing Address: 65 Millet Street, Suite 105, Richmond, VT Contact Name: Craig Metz, President Primary Phone #: Cell Phone #: Address: 1. Proposal Narrative Program Summary Most diesel vehicles need to have warm engine blocks in order to operate correctly. Diesel vehicles typically come equipped with engine block heaters that are plugged in each night to ensure the engine block is warm upon early morning start up during cold weather. Engine block heaters typically use electric resistance heat drawing about 1.5 kw. They typically do not run with any control devices and are simply plugged in at the end of the day, running throughout the night, and unplugged the next morning. By incorporating the use of a timer to control the engine block heater, diesel fleet owners can cut back on their electricity consumption by operating the engine block heaters for only 2 hours each day immediately before first use, rather than throughout the night every night. This program will reduce the run time of these engine block heaters through the use of manually operated and hard-wired timers. EnSave will promote the use of timers on engine block heaters for commercial diesel truck fleets (construction vehicles, delivery trucks, service vehicles, school buses, etc.). Use of timers on engine block heaters allows the heaters to run for just a few hours each morning prior to use of the vehicles, rather than using electricity throughout the night. We anticipate delivering serving approximately 155 fleet owners over a one-year period, and will save 1,062,400 kwh at a cost of $242,392. Customer Segments Targeted We will serve fleet owners within the commercial customer segment. Potential customers include construction vehicles, delivery trucks, service vehicles, school buses, and others. We will target the entire legacy CVPS territory. Page 1 of 7
2 Implementation Plan Marketing Plan EnSave will promote the timer program through a combination of phone outreach, direct mail, field representative site visits, and advertisements. To reach the commercial fleets, a Field Representative will conduct direct outreach to fleet owners to enroll them in the program, and will then travel to the site to install the timers. While the Field Representative is on-site explaining the fleet timer program, they will provide information about other CEED funding projects for which they may be eligible, as well as incentives through Efficiency Vermont. Thus, the program will function as a lead generation vehicle to help increase overall energy efficiency implementation throughout the commercial sector. We will develop an application form for fleet timers requesting data about the diesel engine specifications, type of business, GMP account number, number of vehicles, schedule of vehicles, number of units requested well as a marketing flyer that can be distributed throughout the territory. We will begin our process of marketing the program in January/February Customer Application/ Enrollment Process Customer learns of engine block heater timer offer via direct mail, , advertisement, trade show, or field representative visit. Customer submits timer application via mail, fax, or delivery to the program s Field Representative. Information to be collected at the time of request includes: o Type of vehicle using the engine block heater o Wattage of engine block heater o Typical number of hours the engine block heater is in use o Typical annual start and end dates for using the engine block heater o Number of vehicles requesting a timer o Schedule of vehicles If the customer is ineligible we will provide information about other CEED programs or Efficiency Vermont programs as applicable. Timers will be installed directly on the site by the Program Field Representative. The instructions specify that each timer should be set to turn on the engine block heater 2 hours prior to daily intended first use Option: hard-wired installations For fleets running on different schedules, we will install one free timer for each vehicle, up to a maximum amount to be determined by EnSave and Green Mountain Power. For the purpose of this proposal, we have assumed an average of 10 timers per fleet. For fleets with vehicles that all run on the same schedule, hard-wiring a single timer to all fleets may make more sense. In these scenarios, EnSave will work with applicants to schedule hard wired timer installation through their electrician. We Page 2 of 7
3 propose incentivizing the hard wired timer installation at 80% of the cost, up to a maximum of $2,000. Customers choosing this option must save at least 10,000 kwh annually through use of the timer, in order for the incentive to be cost effective. Program Implementer The program will be implemented by EnSave, Inc., a Richmond, VT-based firm with a national presence as the nation s 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 company s origins began in 1991 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 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, as well as in the statewide delivery of the Agriculture Energy Efficiency Program delivered for the New York State Energy Research & Development Authority (NYSERDA). Our experience with running engine block heater timer programs not only covers Vermont but also prior programs for utilities in New York, Minnesota and Wisconsin. Both the agricultural sector and the commercial sector are often underserved due to being hard-toreach, widely dispersed, and lack a key account representative or an energy efficiency program devoted to their needs. We understand how to reach out to the small business sector and generate energy savings that would otherwise not be realized. Costs and Benefits The project will cost $242,392 to deliver approximately 1,062,400 kwh savings among 155 customers. The customers who will receive individual timers free of charge will reap the program energy saving benefits immediately. The remaining customers who receive the incentive for hard-wiring the timer will still receive nearly all program benefits within one year, as the technology will pay for itself in slightly more than one year. Page 3 of 7
4 Measurement and Quantification of Benefits Both Efficiency Vermont and the Vermont Public Service board have accepted a deemed net kwh savings value of 664 kwh per timer for EnSave s prior administration of the Farm Engine Block Heater Timer Program, operated for Efficiency Vermont in winter and winter We also operated the farm timer promotion for customers of New York State Electric and Gas and Rochester Gas & Electric in , and the New York Public Service Board has accepted those savings values. We have used the 664 kwh per timer savings value stated in the Technical Reference Manual to develop the savings estimates for this program, and will use this program to determine actual savings. All actual kwh savings will be run through the Vermont Department of Public Service s net societal benefits tool, which we will use to determine the final NSB once the program is complete. EnSave has used a 5 year measure life because the 3 year measure life in the Technical Reference Manual is based on a deemed savings program delivering timers through the mail to the farm sector. This program is a direct install program targeting small to medium sized commercial facilities who will most likely have fleet managers. By direct installing the measure we have more control over the proper installation of the measure and the dedicated manager ensures the timers will be well taken care of. Therefore EnSave recommends a 5 year measure life. EnSave s 2011 study of energy savings for fleet timers completed for Efficiency Vermont assumed a 5 year measure life for individual timers and 10 years for hard wired timers. Logistics of Data Collection, Tracking and Results Reporting We will capture data about each participating vehicle during the application phase, and will track the number of timers provided to each site and the corresponding energy savings. Additionally, we will track all outreach we have made to the commercial customers so GMP is aware of our activities. Once customers are enrolled within the program, we will record their name, address, type of business, GMP account number, number of vehicles, schedule of vehicles, number of units installed and total energy savings per site. This tracking system will be shared with GMP on a monthly basis or as requested. Metrics for success include number of sites reached and total energy saved. We will report progress to GMP on a monthly basis through the tracking system. 2. Proposal Questionnaire Program and Customer Information 1. What type of project is being proposed? We propose installing engine block heater timers on Vermont commercial diesel fleets. We project saving 1,062,400 kwh from this technology over a one year period, with an NSB between 27.7 and 4.2 depending on whether the timers are directly plugged in to the engine block heater or hard wired. Page 4 of 7
5 2. Which customer segment is targeted? We will target commercial customers who own and maintain a diesel fleet. Possible commercial customers can include construction vehicles, delivery trucks, service vehicles, and school buses. 3. How many customers will participate? We anticipate one hundred and fifty five customers will participate over the one-year period. We anticipate five of them will install hard-wired timers, with the remainder installing individual timers. 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 free timers to commercial vehicle fleets who plan to install one timer for each vehicle. The retail cost of the timer is approximately $15. Customers saving at least 10,000 kwh through the timers and having a fleet with common start and end times can receive an incentive for a hard-wired timer. We will provide an incentive of 80% of the installation cost, not to exceed $2,000. This incentive is based on an anticipated installation cost of approximately $2, When are customer benefits first achieved? Since the direct-install timers are provided free of charge, the customer will receive benefits immediately. Hard-wired timer recipients will still receive benefits within the first year of operation. Since some timer installs will take place outside of timer season, we will send a reminder letter later in the fall to customers who received timers in the warmer months reminding them to begin using the timer. 7. What are the Net Societal Benefits (NSB) that will be achieved per dollar invested? The NSB for the individual timers is 27.7 and the NSB for the hard-wired timers is 4.2. The overall NSB for the program is How will the NSB be calculated? The NSB will be calculated using the Vermont Statewide Field Screening Tool, provided by Green Mountain Power through 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. Page 5 of 7
6 10. What are other non-electric benefits? While all energy savings will be electric, this program will result in generating leads for other energy efficiency programs and involving fleet owners who may not have previously participated in any energy efficiency offerings. Per the U.S. Environmental Protection Agency s egrid 2007 database, the energy savings will also yield the following emission reductions: USEPA egrid 2007 CO 2 N 2 O CH 4 SO 2 NO x Emission reductions in pounds 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. While this program will operate year round, we anticipate the greatest interest will come during the cold weather months when fleet owners are actively dealing with their engine block heaters. A multiyear program cycle allows us to capture savings over at least one full cold-weather period. Funding in this year is only for calendar year 2014, although we plan to approach Green Mountain Power to continue this program past its original deadline. 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 fleet owners through Efficiency Vermont, the utilities, or any other means. While the engine block heater timer is a simple technology, it is not widely established within the commercial fleet sector. The success of the EnSave-administered Farm Engine Block Heater timer programs speak to the willingness of the small commercial or agricultural sector to adopt this technology readily if it is presented to them. 14. What are the expected costs of the program? The expected cost to serve 155 fleet owners is $242, When is the proposed start date of the program? The proposed start date of the program is January How long will customer benefits persist after the initial benefit is achieved (in years)? The engine block heater timers have a useful life of approximately 5 years. 17. How will the program results be measured and evaluated? Page 6 of 7
7 Program results will be measured and evaluated by doing phone and on-site spot checks to confirm that the timer is in use for the time predicted. 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 Start-Up Costs Total Program Costs Planning & Reporting $ N/A $49,546 Admin $ N/A $31,356 Tech Assistance $ N/A $75,960 Incentives $ N/A $10,250 Marketing $ N/A $75,280 Information Technology $ N/A $0 Participant Share of Costs $ N/A $2,000 Total Costs $ N/A $244,392 Note: This budget is different than the total budget referenced elsewhere in the proposal due to the $2,000 participant costs not requested from the CEED fund. Page 7 of 7
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