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NIST Handbook 135 1995 Edition LIFE-CYCLE COSTING MANUAL for the Federal Energy Management Program Sieglinde K. Fuller Stephen R. Petersen Building and Fire Research Laboratory Office of Applied Economics Gaithersburg, MD 20899 February 1996 Supersedes 1987 Revision Prepared for: U.S. Department of Energy Office of the Assistant Secretary for Conservation and Renewable Energy Federal Energy Management Program Washington, DC 20585. a, Staves of © ' en * 0 > 4 "Wen ey U.S. DEPARTMENT OF COMMERCE, Ronald H. Brown, Secretary Technology Administration, Mary L. Good, Under Secretary for Technology National Institute of Standards and Technology, Arati Prabhakar, Director National Institute of Standards and Technology Handbook 135, 1996 Edition Natl. Inst. Stand. Technol. Handb. 135, 1996 Ed., 210 pages (Feb. 1996) CODEN: NIHAE2 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1996 For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402-9325 Bibliographic Information Abstract Handbook 135 is a guide to understanding the life-cycle cost (LCC) methodology and criteria established by the Federal Energy Management Program (FEMP) for the economic evaluation of energy and water conservation projects and renewable energy projects in all federal buildings. It expands on the life-cycle cost methods and criteria contained in the FEMP rules published in 10 CFR 436, Subpart A, which applies to all federal agencies. The purpose of this handbook is to facilitate the implementation of the FEMP rules by explaining the LCC method, defining the measures of economic performance used, describing the assumptions and procedures to follow in performing evaluations, giving examples, and noting NIST computer software available for computation and reporting purposes. An annual supplement to Handbook 135, Energy Price Indices and Discount Factors for LCC Analysis, NISTIR 85-3273-X is also published by NIST to provide the current discount rate and discount factors needed for conducting an LCC analysis in accordance with the FEMP rules. This annual supplement is required when using Handbook 135. This new edition of Handbook 135 replaces the 1987 version. The new edition is extensively revised and organized around the key steps in an LCC analysis. There are no longer separate sections for new and existing buildings and for solar programs, as the methodology no longer distinguishes between these projects. Keywords benefit-cost analysis; building economics; building technology; capital investment decisions; cost effectiveness; economic analysis; energy conservation; energy economics; life-cycle cost analysis; public buildings; renewable energy; water conservation, Ordering Copies of this document are available from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161, at (800) 553-6847 or (703) 487-4650. The document contains 212 pages, cover to cover. Life-Cycle Costing Manual for the Federal Energy Management Program / National Institute of Standards and Technology