§8254 Establishment and use of life cycle cost methods and procedures

Summary

The Secretary, working with the Director of the Office of Management and Budget, the Secretary of Defense, the Director of the National Institute of Standards and Technology, and the Administrator of the General Services Administration, must create practical methods to estimate and compare life cycle costs for Federal buildings. The methods must add up all capital and operating costs for a building’s energy system over the system’s expected life or 40 years, whichever is shorter. They must use average fuel prices and a discount rate set by the Secretary, and the Secretary must write the procedures for using these methods. New Federal buildings and energy upgrades to existing ones must be planned using these life cycle cost methods. After January 1, 1994, agencies must fully consider the energy efficiency of all possible leased space when they renew or enter a new lease. The Secretary must also make information about these life cycle cost methods available to the public for building projects across the economy.