The report must include a cost-benefit analysis, return on investment, and long-term payback for the following building design standards:. The exercise provided important feedback for the potential application of the economic efficiency evaluation process for DOD military and construction going forward. Based on feedback from you, our users, we’ve made some improvements that make it easier than ever to read thousands of publications on our website. These were based on an average of sampled flow rates for showers in hotels throughout the U. Those results were then used to approximate the first costs for Standards
The first step in this process was to estimate the energy savings for both of the building types in all five cities relative to the baseline Standard Savings for Offices in all locations are higher than those for the Hotels. Multiple reports have been previously completed which contain energy saving results in some form, either for individual cities and building types or weighted averages by climate zone or a national average, see Table 2. For instance, the original energy models can be rerun with actual occupancy loads and schedules, as opposed to the expected levels, to recalibrate the projected energy usage under current conditions. The report must include a cost-benefit analysis, return on investment, and long-term payback for the following building design standards:. There are also differences by location; the office buildings in climate zones represented by Baltimore, MD and Helena, MT were more likely to have extremely high construction costs that overshadowed the benefits from energy and water savings for those buildings. The economic efficiency analysis, and the related data collection, can be also used to track actual performance relative to the expected benefits.
Formwhich is used to initiate the authorization process for military construction projects, requires a life cycle cost analysis. The primary objective is to ensure the usefulness of the approach to aid decision-making for strategic investments in DOD capital facility assets. The differences in local prices determine the relative savings stydy each location; for instance, Miami has highest water and wastewater disposal costs, and Baltimore has the highest energy costs, and these relative factor unit prices increase the value of those reductions for those locations.
OMB Circular A Appendix C is updated annually with the nominal and real discount rates to be used for cost-effectiveness studies of federal capital investments. As noted in the Methodology section of this report, the initial investment costs for these energy generation units were included in the construction costs, and the on-site energy was used to offset the energy used by the building. Example of Sensitivity Analysis for Price Escalation For this report, the variations in both the discount rates and prices escalations are combined in the scenarios and represented as the feasible range of Net Savings for a specific alternative under a range of wi Figure 3.
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At the moment, the authorization and appropriation processes for DOD military construction and renovation tend stuxy focus more on individual projects than on a strategic level portfolio management approach. Hazardous Waste—hazardous waste material handling and disposal e. Plumbing Fixtures To calculate the saving for plumbing fixture related measures WMI uses a model that considers multiple factors.
Recent research has started to explore the potential trends in economies of scale vase the production of energy efficient equipment.
Cleaning and landscaping costs were also estimated based on cost per building area i. Evaluation of the final standard is a very time consuming process and consequently follows publication of the standard by a significant time lag. Also, you can type in a page number and press Enter to go directly to that page in the book. Three projects have initial investment costs that are less than the baseline prototype buildings, and therefore provide benefits without additional costs Table In particular, this data should be grounded in the local market, incorporating local construction costs and available skill levels and local factor unit prices e.
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A simplified linear approach was used to determine the results since no reports have been published that contain the required data. Page 95 Share Cite. The Results section of this report provides the Net Savings for the Long-Term Cost-Benefit with the sensitivity analysis, as well as the Rate of Return on Investment and Casr, for each specified standard and rating systems using the two building types i.
For this study, the Long-term cost-benefit used throughout this report is defined as:. As can be clearly seen, the water savings in many locations is more than half of the total Annual Casw Savings.
Achieving High-Performance Federal Facilities: Therefore, this study will use the construction costs provided for these LEED stkdy, with the caveat that this data has not been independently verified and may include costs related to specific technical or special function requirements that are not related to this study.
ASHRAE agreed to provide energy and water usage data generated using building models, since the recent release of these standards precludes the possibility of obtaining. No data was provided for expected solid bgi municipal or.
Further, several of the locations were predicting a rapid increase in water and wastewater rates. Timing of Economic Efficiency Analysis for Decision Support As mentioned previously, the DOD requires an economic efficiency analysis with Form for the initiation of the military construction authorization process.
Simple Payback is the time when the summation of the expected annual savings equals the original investment; Discounted payback is the time when the summation of the time-adjusted annual savings equals the original investment. The data in Tables 3 and 4 formed the basis for all of the first cost calculations used in this study. Gbj evidence indicates that the capabilities and capacities across the industries that support high performance facilities have developed rapidly over the last ten years.
Multiple reports have been previously completed which contain energy saving results in some form, either for individual cities and building types or weighted averages by studh zone or a national average, see Table 2.
Means cost-estimating system is an industry standard, vase is often viewed as generally over-estimating construction costs. This study provides the results of the economic evaluation of the specified building standards and rating systems, and the applicability of the analytical approach, as input into the development of the DOD comprehensive strategy going forward. Section of the National Defense Authorization Act for fiscal year requires the Secretary of Defense to submit a report to the congressional defense committees on the energy-efficiency and sustainability standards used by DOD for military construction and major renovations of buildings.
While EIA provides energy xtudy rates for each year, this study uses the annual equivalent escalation rate of 0. It also required the DOD to provide a policy prescribing a comprehensive strategy for the cost-effective pursuit of design and building standards that include specific energy-efficient standards and sustainable design attributes based on those findings. For instance, if energy and water prices increase in future years, an office building may see its additional energy and water costs which could have been avoided under ASHRAE