NIST-HDBK-NISTIR-6806, Project-Oriented Life-Cycle Costing Workshop for Energy Conservation in Buildings

This student manual for the Project-Oriented Life-Cycle Costing Workshop for Energy Conservation in Buildings is a workbook for a two-day course on life-cycle costing developed by the National Institute of Standards and Technology (NIST) for the U.S. Department of Energy (DOE), Federal Energy Management Program (FEMP). The methodology and procedures in this manual are consistent with 10 CFR Part 436A and its amendments, which provide guidelines for the economic analysis of investments in energy and water conservation and renewable energy projects for federal buildings. These guidelines are explained in detail in Life-Cycle Costing Manual for the Federal Energy Management Program, Handbook 135, 1995 edition. The methodology is also consistent with American Society for Testing and Materials (ASTM) Standards on Building Economics, in particular ASTM Standard Practices E917, E964, E1057, E1074, E1121, and E1185. The Project-Oriented LCC Workshop is one of three workshops conducted by NIST to provide energy managers with the knowledge and skills needed to perform quickly and correctly economic analyses required for building-related capital investments. The analytical methodology presented is equally useful for government and private-sector investment decisions. The Basic Life-Cycle Costing Workshop takes the participant through the steps of an LCC analysis, explains in detail the underlying theory of present-value analysis, and integrates it with the FEMP criteria. The ProjectOriented LCC Workshop builds on the basic workshop, focuses on the use of BLCC computer programs, and applies the LCC methodology to more complex issues. The third workshop is a twohour, interactive distance teaching workshop that introduces the elements of LCC analysis to participants at downlink sites across the U.S. This student manual is organized into seven teaching modules. The workshop begins with a thorough review of LCC principles and 10 CFR 436 criteria. Each of the remaining modules is based on a topic that has emerged from past life-cycle costing workshops and the consulting activities of the Office of Applied Economics at NIST deemed of special interest to energy managers. The teaching material is organized around a representative example of an LCC analysis. A group exercise at the end of each module reinforces the students' knowledge gained during the presentation. Visual materials (slides) used in the workshop are printed in the manual in the order they are presented to facilitate note taking. These visual materials are updated annually to reflect changes in the federal discount rate and projected energy price escalation rates used in federal LCC analyses of energy and water conservation projects. Other materials used in the LCC workshop include the following: (1) Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis, Annual Supplement to NIST Handbook 135 and NBS Special Publication 709, National Institute of Standards and Technology, NISTIR 85-3273.