10 CFR §436.13

1. (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.
2. (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. (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. (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. (3)Scheduled to be demolished or retired from service within one year or less.