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Review of Life Cycle Cost Analysis Tools

Life cycle costing (LCC) is a vital aspect of decision-making in building retrofitting. It allows stakeholders to thoroughly assess all expenses involved throughout the lifespan of these retrofits, covering initial costs; ongoing operation, maintenance, and repair costs; and disposal costs of the system. The Federal Energy Management Program of the US Department of Energy has established clear guidelines for conducting LCC analysis, particularly for investments aimed at energy and water conservation, as well as renewable energy projects. These guidelines are detailed in the Code of Federal Regulations, 10 CFR 436, Subpart A, which outlines the methodology and procedure for LCC analysis (Department of Energy 1990). The National Institute of Standards and Technology (NIST) has developed the NIST Handbook 135 (Joshua Kneifel 2022) to standardize the process of LCC analysis within the building industry. Whereas the handbook is tailored to the needs of federal agencies, its principles and methodologies can be valuable for other organizations and industries interested in conducting life cycle costing analyses for their building projects.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Water and Wastewater Annual Price Escalation Rates for Selected Cities Across the United States: 2023 Edition

This report builds on the 2016 Water and Wastewater Annual Price Escalation Rates for Selected Cities across the United States report prepared by Pacific Northwest National Laboratory (PNNL) for the U.S. Department of Energy’s (DOE) Federal Energy Management Program (FEMP). The 2017 report examined annual water and wastewater price escalation rate trends across the U.S. Annual water and wastewater price escalation rates are an important factor when conducting life-cycle cost analyses (LCCA) of water efficiency measures, which is required for Federal agencies. Following the framework of the 2017 report, PNNL used the American Water Works Association (AWWA) water and wastewater rate surveys to gather historical rate data for water and wastewater utilities in the US, which were used to calculate a sample set of water and wastewater annual price escalation rates (Figure E.1). An annual price escalation rate was calculated for 113 water utilities and 76 wastewater utilities that reported at least two AWWA surveys across the past 13 years (i.e., 2008 to 2021) and at least a five-year range between those two surveys. Statistical trends in the annual price escalation rates are also provided by the seven regions identified in Figure E.1. In the 2017 report, the average annual price escalation for the surveyed sample of water and wastewater rates were 3.0% and 3.2%, respectively. This report also calculated aggregate average annual price escalation rates for the surveyed sample of water and wastewater utilities to be 3.1% and 2.7%, respectively. These escalation rates were based on 87 water utilities and 46 wastewater utilities that reported data in at least two AWWA surveys with at least a five-year range between those two surveys and reported at least one AWWA survey in 2019 or 2021. Among water utilities, the highest average annual price escalation rate was 8.8%, and the highest average annual water de-escalation rate was -2.0%. And for wastewater utilities, the highest average annual wastewater price escalation rate was 10.2%, and the highest average annual wastewater de-escalation rate was -2.3%.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Redefining Net-Zero Water for Resilient Aquifers

Groundwater has long been a critical source of potable water, supplying one-third of all global water withdrawals and providing strategic reserves in times of drought (Konikow, 2012; Famiglietti, 2014). The risk in relying on groundwater is that it is often pumped at rates far greater than it can be naturally replenished. With increasing population and a changing climate, the depletion of potable water supplies has become an ever-growing concern (Srinivasan et al., 2012). Recently, the concept of “resilience” has been applied to groundwater, leaving many questions to be explored in terms of what resilience should mean for aquifers (Foster and MacDonald, 2014; Grönwall and Oduro-Kwarteng, 2017). The term is commonly used to indicate resilience to impacts of climate change specifically, but here we consider resilience in the context of more general water insecurity. Relatedly, the concept of “sustainable yield” has emerged in an attempt to determine a metric that can ensure the long-term resilience of groundwater systems, but the definition is fraught with inherent uncertainties and its quantification poses challenges (Rudestam and Langridge, 2014; Grönwall and Oduro-Kwarteng, 2017). At the heart of these concepts is a focus on sustainable management of aquifers. A sustainable approach to managing groundwater resources usually involves balancing long-term abstraction with the long-term recharge taking into account the needs for environmental flows and implementing drought-preparedness measures (Robins et al. 2006; Foster and MacDonald, 2014). At a high level, a sustainable balance of groundwater abstraction versus aquifer recharge may be considered “Net Zero” (NZ) or “Net Positive” (NP) in cases where recharge is equal to or in excess of abstraction, respectively. However, NZ/NP water management programs that address these concerns have varied definitions of compliance, which include considerations for the application at hand (ILFI, 2020; USGBC, 2020). Locations with high risk of low or poor water supply may be particularly interested in pursuing NZ/NP water. The AQUEDUCT Water Risk Atlas (World Resources Institute, 2019) indicates long-term availability, providing risk levels for quantity and quality of water at specific locations across the globe, for existing and predicted future conditions. This paper follows the U.S. Department of Energy (DOE) Federal Energy Management Program (FEMP) NZ water definition adopted by the U.S. Army for use at their installations, including Army Reserve Centers (ARCs). This definition also relates to the U.S. Army’s current focus on water resilience, which includes short-term and long-term availability of water resources.

net zero water, HUC12, Saipan, American Samoa, Mau↗

PV System Owner's Guide to Identifying, Assessing, and Addressing Weather Vulnerabilities, Risks, and Impacts

The report is designed to help federal facility managers, engineers, contractors, and consultants identify the most common PV system vulnerabilities that could lead from mild to catastrophic loss of PV systems during severe weather events. The guide helps users understand the type and severity of severe weather that can occur at any given location, and provides pre- and post-storm operations and maintenance (O&M) measures that can reduce the potential for damage to a PV system during a severe weather event and help speed the recovery of a PV system damaged during a storm. The guide emphasizes safety in responding to damage from severe weather events.

14 SOLAR ENERGY↗

Empower Wall: Active insulation system leveraging additive manufacturing and model predictive control

Buildings are one of the largest energy consumers worldwide, using large amounts of energy during their construction and for climate control during operation. Active insulation systems (AIS) have been shown to reduce the energy needed for climate control in buildings by dynamically regulating the heat transferred between a building’s interior and exterior. Infrastructure-scale additive manufacturing (AM) has the potential to reduce the resources needed for building construction. Combining these two technologies into a single building envelope would create a path towards more sustainable buildings. A test was conducted for the Federal Energy Management Program (FEMP) Energy Exchange training and trade show, in August 2021, to investigate a new building envelope design, termed the Empower Wall, that utilized an AIS and was constructed using AM. Model predictive control was implemented to manage operation of the Empower Wall in concert with the existing HVAC system. Finally, the prototype system demonstrated that the Empower Wall lowered total energy consumption and reduced the cost of energy used.

36 MATERIALS SCIENCE↗

Guidance and Recommendations for Streamlining Reporting for Federal Energy and Water Efficiency Projects

Federal agencies are required to report on their progress in meeting various energy and water management requirements. These reporting requirements encompass energy and water projects at federal facilities, including projects that are alternatively financed, e.g., conducted through energy savings performance contracts (ESPCs) or utility energy service contracts (UESCs). The purpose of this guidance is to provide recommendations to streamline federal agency reporting. The guidance recommends the use of eProject Builder (ePB), a project development and archiving tool for energy projects. ePB carries additional value in its simplification of federal agency reporting by dovetailing with the Federal Energy Management Program’s (FEMP’s) EISA 432 Compliance Tracking System (CTS).

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

The Technical Resilience Navigator: Risk-Informed Decision Making to Support Resilience Planning

The Technical Resilience Navigator (TRN) helps organizations manage the risk to critical functions at a site from disruptions in energy and water services. Developed in partnership by the Pacific Northwest National Laboratory and the National Renewable Energy Laboratory, under direction and funding from the Department of Energy’s Federal Energy Management Program, the TRN helps organizations enhance their resilience to a variety of disruptive events, both natural and human-caused, that could interrupt normal operations for an unknown period of time. This report provides an overview of the TRN’s risk-informed approach to resilience planning and formally describes how it uses a streamlined risk model to identify effective strategies for improving resilience.

99 GENERAL AND MISCELLANEOUS↗

Life-Cycle Cost Analysis Framework for Water Efficiency Measures

Life-Cycle Cost Analysis Framework for Water Efficiency Measures: Guidance Designed for Federal Agencies (hereafter referred to as “this report”) provides a technical framework for federal agencies to conduct a life-cycle cost analysis (LCCA) for water efficiency projects in accordance with 42 U.S.C. § 8253. This report leverages insights from the 2023 report, PNNL-34006, Water and Wastewater Annual Price Escalation Rates for Selected Cities Across the United States: 2023 Edition (Unger et al. 2023). The primary objective of this report is to provide a framework to assist federal agencies with evaluating the full economic impact of water efficiency projects by assessing both initial investments and long-term operational benefits. An LCCA can provide a comprehensive view of all costs associated with a water efficiency project, including initial investment, ongoing operations and maintenance (O&M), and eventual disposal or replacement, ensuring the most cost-effective solution is selected. The LCCA methodology outlined in this report enables users to compare base case scenarios with potential alternatives using a standardized present value approach. It incorporates key cost components such as energy, water and wastewater, installation, O&M, and equipment replacement. Additionally, the framework introduces relevant evaluation metrics, such as the net savings and the savings-to-investment ratio, to ensure that water efficiency measures are economically justified over the lifespan of the project. To support practical application, this report also describes various water efficiency strategies that may be analyzed using an LCCA, including plumbing retrofits, irrigation upgrades, alternative water use, and cooling system improvements. By applying this framework, federal agencies can ensure compliance with regulatory mandates while maximizing the return on investment and contributing to resilient water management practices. The information provided in this report is aligned with the Federal Energy Management Program (FEMP) life-cycle cost (LCC) methodology, as conveyed in National Institute of Standards and Technology (NIST) Handbook 135 (Kneifel and Webb 2022). This report is intended to provide relatively high-level guidance, acting as a complement to, rather than a substitute for, that resource.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

ESPC ESA Training Series: Site-Specific/Stand-Alone Contract Vehicle

This webinar provides instructions and resources for financing distributed energy projects (e.g., on–site renewable energy, storage, and combined heat and power) using an energy savings performance contract (ESPC) energy sales agreement (ESA) through the site–specific/stand–alone contract vehicle. The site–specific/stand–alone contract vehicle is a procurement process using a request for proposal (RFP). Topics covered during the webinar include forming a strong project team, validating the feasibility of the distributed energy project at a site, acquisition planning, RFP development, procurement, proposal evaluation and contract award, and the construction and performance period. This webinar also provides an overview of the resources available in the ESPC ESA Toolkit, such as checklists and templates.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

The Distributed Energy Resource Cybersecurity Framework

For facilities with distributed energy resources (DERs), cybersecurity must be considered holistically, across system architectures and down to individual components. It's hard to know where to start. That's why the National Renewable Energy Laboratory (NREL) has developed an assessment tool for organizations with DERs to understand and improve their cybersecurity. With support from the U.S. Department of Energy's Federal Energy Management Program, the Distributed Energy Resource Cybersecurity Framework (DER-CF) provides a holistic evaluation of a facility's DER cybersecurity and makes customized recommendations that follow widely recognized best practices for cybersecurity. The DER-CF is available at no cost as an interactive web tool (dercf.nrel.gov).

cybersecurity↗

Work Smarter, Not Harder: Improving Energy Efficiency and Safety through Smarter Ventilation: Preprint

Ventilation is a key component to maintaining healthy, safe indoor air quality. Especially important in laboratories, ventilation is the first line of defense against airborne hazards produced during research activities. Though a vital component, laboratory ventilation systems are often victim to ineffective operation, posing a risk to the most important asset - the researchers. Furthermore, system inefficiencies can lead to up to 50% wasted energy. To improve both energy efficiency and safety in laboratories, we present the Smart Labs Toolkit - a resource developed by the U.S. Department of Energy Federal Energy Management Program and the International Institute for Sustainable Laboratories that guides laboratory stakeholders through a straight-forward, holistic approach to achieve dynamic, high-performance laboratories. Smart Labs enable safe and efficient world class science to occur in laboratories through high-performance methods. A Smart Labs program employs a combination of physical, administrative, and management techniques to assess, optimize, and manage high performance laboratories. We will focus on a central component of the Smart Labs approach - the Laboratory Ventilation Risk Assessment, a systematic process for identifying risk due to airborne hazards to inform the operation of dynamic ventilation that optimizes safety and efficiency. Case studies of organizations who have successfully implemented Smart Labs ventilation management programs will also be shared. In learning ventilation strategies successful in critical laboratory environments, learn the tools and resources needed to successfully manage energy in any building through smarter, safer ventilation.

buildings↗

Advancing Federal Infrastructure Through Innovation: Customer Damage Function Calculator

Provides an overview of the National Renewable Energy Laboratory (NREL) Customer Damage Function (CDF) Calculator web tool, developed with funding and support from the Federal Energy Management Program (FEMP). The CDF Calculator is a screening tool that provides justification to site and/or headquarters leadership for resilience investments. It generates monetary values to justify investments in resilience solutions to prevent or lessen the impact of a grid outage at a facility.

CDF calculator↗

Incorporating climate change into risk-informed resilience planning

In response to the development of portfolio-wide Climate Action Plans by federal agencies, federal sites are working to incorporate the impacts of climate change into their resilience assessments. However, it can be challenging to incorporate climate change scenarios into resilience assessments given the uncertainty inherent in climate change modeling. Incorporating these factors into a resilience plan requires an understanding of what the different climate scenarios mean, as well as how to estimate potential impacts of climate change on hazard occurrence on a regional, or even local, scale under different scenarios. We discuss approaches to incorporating this data into risk-informed resilience assessment processes, such as those implemented in the Department of Energy’s (DOE) Federal Energy Management Program’s (FEMP) Technical Resilience Navigator (TRN) and the Sustainability Performance Division’s (SPD) Vulnerability Assessment and Resilience Plan (VARP) Risk Assessment Tool. We also describe the climate scenarios and the availability of hazard data for site resilience planning, based on modeling included in the International Panel on Climate Change (IPCC), the National Climate Assessment (NCA), and state-level reports. We present examples from the TRN risk assessment and the VARP Risk Assessment Tool to illustrate how sensitivity analysis can be used to incorporate climate change projections into the resilience planning process.

Rabinowitz, Hannah S.↗

Grid-Interactive Efficient Buildings Support Federal Facility Decarbonization

The Federal Energy Management Program (FEMP) plays a key role in helping agencies understand and meet energy-related goals, including those surrounding smart buildings technologies and grid-interactive efficient buildings (GEBs), which can support decarbonization. GEB enables demand flexibility that has the potential to reduce electrical infrastructure costs and transform the grid edge, where buildings connect to the power grid.

decarbonization↗

Decarbonization Technology Snapshot: Heat Pump Water Heaters

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. In many cases they replace gas-fired water heaters and are significantly more energy efficient, reducing on-site Scope 1 emissions and often resulting in reduced total emissions.

building decarbonization↗

Energy Efficiency Requirements for Acquisition Professionals

Federal agencies are required to purchase products as certified by EPA or designated by DOE’s Federal Energy Management Program (FEMP). The two programs cover different products, sizes and applications. These requirements also have an associated FAR clause, FAR 52.223-15. They apply to both energy-consuming products and services that use energy-consuming products.

Ackerman, Allison↗