10 CFR § 436.13 - Presuming cost-effectiveness results.

---
identifier: "/us/cfr/t10/s436.13"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "10 CFR § 436.13 - Presuming cost-effectiveness results."
title_number: 10
title_name: "Energy"
section_number: "436.13"
section_name: "Presuming cost-effectiveness results."
chapter_name: "DEPARTMENT OF ENERGY"
subchapter_number: "D"
subchapter_name: "ENERGY CONSERVATION"
part_number: "436"
part_name: "FEDERAL ENERGY MANAGEMENT AND PLANNING PROGRAMS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 7101  42 U.S.C. 8254; 42 U.S.C. 8258; 42 U.S.C. 8259b; 42 U.S.C. 8287,"
regulatory_source: "44 FR 60669, Oct. 19, 1979, unless otherwise noted."
cfr_part: "436"
---


# 436.13 Presuming cost-effectiveness results.

(a) If the investment and other costs for an energy or water conservation measure considered for retrofit to an existing Federal building or a building energy system or building water system considered for incorporation into a new building design are insignificant, a Federal agency may presume that such a system is life cycle cost-effective without further analysis.

(b) A Federal agency may presume that an investment in an energy or water conservation measure retrofit to an existing Federal building is not life cycle cost-effective for Federal investment if the Federal building is—

(1) Occupied under a short-term lease with a remaining term of one year or less, and without a renewal option or with a renewal option which is not likely to be exercised;

(2) Occupied under a lease which includes the cost of utilities in the rent and does not provide a pass-through of energy or water savings to the government; or

(3) Scheduled to be demolished or retired from service within one year or less.

[55 FR 48220, Nov. 20, 1990, as amended at 61 FR 32650, June 25, 1996]