We are a little confused about this credit requirement: "For air compressors, install either air cooling or closed-loop cooling, such as a cooling tower or chilled water system." We do not know what this requirement is actually prohibiting.
Do not use open loop (single use) water to provide cooling of the air compressor. That goes back to the credit intent: "To reduce or eliminate the use of potable water for non-potable use in building system equipment."