Life-Cycle Cost Analysis Framework for Water Efficiency Measures

Report provides a technical overview of a life-cycle cost analysis for water conservation and efficiency projects.

Federal Energy Management Program

November 24, 2025
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Report provides a technical overview of a life-cycle cost analysis (LCCA) for water conservation and efficiency projects completed by federal agencies. 

As codified in 42 U.S.C. § 8253, federal agencies are required to implement water efficiency measures and conduct an LCCA for said water efficiency project(s). The LCCA guideline will help agencies assess the costs and benefits of implementing water efficiency projects through a description of metrics, equations, and examples.

In this report, water efficiency refers to the reduction of water consumption through monitoring, improving operations and maintenance (O&M), and installing efficient equipment, thereby reducing cost and protecting source water.