University of Colorado Colorado Springs
OP-16: Life Cycle Cost Analysis

Life Cycle Costing is required by a number of Colorado State statues and bills. In practice there is a line item added to new state building projects for high performance building. LCC is accomplished mainly through use of energy modeling, analysis of different HVAC and water systems, all with a goal of LEED Gold for all of our new buildings and major renovations. CCHE College and university campus facility master plans and facility program plans are reviewed and approved by CCHE, with the technical assistance of the State Buildings Program on matters of construction standards compliance, appropriation compliance, and operating/life cycle cost studies, including timing and funding sources for future controlled maintenance requirements. Last Revised Approved Policy III-E-2 April 5, 2001 As a Colorado state institution we are bound by state statutes: This statute is from 2004. Colorado Statutes : : PART 13 STATE BUILDINGS : 24-30-1304. Life-cycle cost - legislative findings and declaration. 24-30-1304. Life-cycle cost - legislative findings and declaration. (1) The general assembly hereby finds: (a) That state-owned and state-assisted facilities have a significant impact on the state's consumption of energy; (b) That energy conservation practices adopted for the design, construction, and utilization of these facilities will have a beneficial effect on the state's overall supply of energy; (c) That the cost of the energy consumed by these facilities over the life of the facilities must be considered, in addition to the initial cost of constructing such facilities; and (d) That the cost of energy is significant, and facility designs must take into consideration the total life-cycle cost, including the initial construction cost, the cost, over the economic life of the facility, of the energy consumed, replacement costs, and the cost of operation and maintenance of the facility, including energy consumption. (2) The general assembly declares that it is the policy of this state to insure that energy conservation practices are employed in the design of state-owned and state-assisted facilities. To this end the general assembly requires all state agencies to analyze the life-cycle cost of each facility constructed, or each major facility constructed or renovated, over its economic life, in addition to the initial construction or renovation cost. Source: L. 79: Entire part added, p. 884, § 1, effective July 1. 24-30-1305. Life-cycle cost - application. (1) The general assembly authorizes and directs that state agencies shall employ design and construction methods for state facilities and design and construction methods for state-assisted facilities under their jurisdiction, in such a manner as to further the policy declared in section 24-30-1304, insuring that life-cycle cost analyses and energy conservation practices are employed in new state-owned and state-assisted facilities and in new or renovated major state-owned and state-assisted facilities. (2) The life-cycle cost analysis shall include but not be limited to such elements as: (a) The coordination, orientation, and positioning of the facility on its physical site; (b) The amount and type of fenestration employed in the facility; (c) Thermal performance and efficiency characteristics of materials incorporated into the facility design; (d) The variable occupancy and operating conditions of the facility, including illumination levels; (e) Architectural features which affect energy consumption; and (f) An energy consumption analysis of a major facility's heating, ventilating, and air conditioning system, lighting system, and all other energy-consuming systems. The energy consumption analysis of the operation of energy-consuming systems in the major facility should include but not be limited to: (I) The comparison of two or more system alternatives; (II) The simulation or engineering evaluation of each system over the entire range of operation of the major facility for a year's operating period; and (III) The engineering evaluation of the energy consumption of component equipment in each system considering the operation of such components at other than full or rated outputs. (3) The life-cycle cost analysis performed for each major facility shall provide but not be limited to the following information: (a) The initial estimated cost of each energy-consuming system being compared and evaluated; (b) The estimated annual operating cost of all utility requirements, including consideration of possible escalating costs of energy; (c) The estimated annual cost of maintaining each energy-consuming system; and (d) The average estimated replacement cost for each system expressed in annual terms for the economic life of the major facility. (4) The life-cycle cost analysis shall be certified by a licensed architect or professional engineer, or by both architect and engineer, particularly qualified by training and experience for the type of work involved. (6) Selection of the optimum system or combination of systems to be incorporated into the design of state facilities and state-assisted facilities shall be based on the life-cycle cost analysis over the economic life of the facility, unless a request for an alternative system is made and approved by the department prior to beginning construction.

Information about High Performance Building Standard for the state of Colorado that include life-cycle analysis can be found at following site: https://stars.aashe.org/media/secure/326/2/33/255/High%20Performance%20Buildings.pdf Senate Bill 007-51 also includes life cycle cost accounting as required for new building and renovation projects that receive 25% state funding. http://www.leg.state.co.us/clics/clics2007a/csl.nsf/fsbillcont3/8EFE2CB5022F6CF687257251007C22D3?open&file=051_enr.pdf