Last update: 05/27/2010

Introduction

The State of Washington encourages energy-efficient building designs for public agencies. The Washington State Department of General Administration (GA), Division of Engineering and Architectural Services (E&AS) supports this goal by identifying advances in building technology and sharing this information with the design community and public administrators responsible for major construction projects. 

Many proven technologies can reduce operating costs-use less energy-to an extent that justifies the increases in construction costs. The Energy Life Cycle Cost Analysis process provides a method for evaluating energy considerations in new construction and major modernization projects. 

These Energy Life Cycle Cost Analysis (ELCCA) guidelines are prepared for use by the individuals responsible for preparing ELCCA submittals for public buildings. Key terms and abbreviations are provided in Appendix A. 

Chapters 1 and 2 serve as an overview-providing background, defining energy life cycle cost analysis, explaining which agencies and projects are affected by the ELCCA requirements, and identifying changes to the guidelines since March 1995. They explain "what needs to happen" and "why it needs to happen." Chapters 3 through 7 provide the "how to", the instructions and forms needed to prepare the ELCCA submittals. Chapter 8 is the ELCCA submittal evaluation that addresses the timing and completeness of each ELCCA submittal. 

chart of HVAC cost over 30 yearsWhy Do Life Cycle Cost Analysis?

The 1994 Non-Residential Energy Code (NREC) provides basic requirements for building an energy-efficient facility. There are many systems (mechanical, controls, envelope, etc.) and configurations (e.g. daylighting) that can meet all the code requirements. Options can be found that result in life cycle cost benefits to the owner. These options may have significant differences in first cost, energy cost, and maintenance cost. The life cycle cost analysis provides a method to evaluate these various options so that the owner can select the best system for the building.

Background

In 1975, the Washington State Legislature enacted into law "Energy Conservation in Design of Public Facilities." The intent of this law is to ensure that energy conservation practices are incorporated into the design of major public facilities-both new construction and extensive renovations. The law requires preparation of a life cycle cost analysis that covers the design of energy systems. The law applies to state agencies, including colleges and universities, and political subdivisions of the state, such as cities, counties, school districts, and other special taxing districts. 

In 1978, the State Superintendent of Public Instruction (SPI) authorized the Washington State Energy Office (WSEO) to review public schools' energy life cycle cost analyses, commonly referred to as Energy Conservation Reports (ECRs). 

WSEO developed ECR guidelines for school projects in 1980 and revised them in 1990. In 1991, revisions to the legislation authorized the recovery of the costs of reviewing ELCCA submittals. 

In 1996, the legislature closed WSEO and transferred the ELCCA program and functions to the Washington State Department of General Administration (GA), Division of Engineering and Architectural Services (E&AS). 

These guidelines adapt the earlier versions of the guidelines so they can be used by all public agencies. The terms "energy life cycle cost analysis" and "ELCCA" are used throughout this publication; however, documents provided to the Superintendent of Public Instruction continue to use the terms "Energy Conservation Report" and "ECR". 

Requirements pertaining to energy life cycle cost analyses are based on the Revised Code of Washington (RCW) 39.35 and the Washington Administrative Code (WAC) 180-27-075. Relevant sections of the RCW and WAC are provided in Appendix B. 

What Is an Energy Life Cycle Cost Analysis?

Life cycle cost analysis is a decision-making tool for building design. The analysis accounts for initial costs associated with constructing or renovating a facility as well as the cost of owning and operating a facility over its useful life. Energy life cycle cost analysis specifically considers these costs for energy systems (heating, cooling, lighting, building envelope, kitchen and domestic hot water). It takes into account the initial cost of each alternate energy system as well as other predictable costs over the expected system life: operation and maintenance, energy, system or component replacement, and the time value of money. 

The completed ELCCA report recommends alternatives that make the most economic sense while providing for the comfort, health, and productivity of the building occupants. 

What Is the Purpose of the ELCCA Guidelines?

The purpose of the guidelines is to define a procedure and method for performing energy life cycle cost analyses, promote the selection of low life cycle cost alternatives, and provide a standard reporting format. 

The guidelines are presented in the form of practical instructions to help ELCCA analysts prepare their submittals. 

Some of the specific objectives of the guidelines are to: 

  • Explain the ELCCA submittal requirements and format. 
  • Identify the phases of the design process when the ELCCA needs to be prepared, reviewed, and approved. 
  • Provide the economic assumptions to be used for fuel escalation rates, inflation rates, equipment service lives, building lives, and maintenance costs.
  • Encourage ELCCA analysts to incorporate renewable resources into their designs when it is cost-effective and feasible to do so. 

Which Public Agencies Must Prepare ELCCAs?

State agencies (including colleges and universities, and political subdivisions of the state, such as cities, counties, school districts, and other special taxing districts) are required by law to prepare ELCCAs for major projects. It is the public agency's responsibility for ensuring that the life cycle cost analysis is prepared by a qualified analyst. 

When Must an ELCCA Report Be Prepared?

  • Major Facilities/New Construction 
    An ELCCA report must be prepared when a project will result in a major facility that is or will be owned or leased by a public facility and has 25,000 square feet or more of usable floor space.
  • Renovations/Modernizations 
    An ELCCA is required when additions, alterations, or repairs of a major facility (25,000 square feet or more) within any 12-month period exceed 50 percent of the value of the original facility and affect energy-using system(s). 

Who Reviews and Approves ELCCAs?

E&AS will provide for review of all ELCCAs produced to satisfy RCW 39.35. E&AS will accomplish this through its own technical staff or through designated reviewers from other public entities identified as having sufficient technical training and experience to conduct an adequate and independent review. 

With the exception of public school districts, actual final approval of the work is the responsibility of the public agency commissioning the work. For public school projects, E&AS will continue to act as the designated reviewer of ELCCAs as specified in WAC 180-27-075. It is the belief of E&AS that maximum value from the ELCCA process can only be achieved through thorough analysis and independent review. 

Appendix C provides a Review Process Checklist that can be used to check for format and technical accuracy in ELCC submittals. 

Who Is a Qualified ELCCA Analyst?

A qualified analyst should develop the ELCCA. The analyst must be a registered architect or professional engineer and have experience with an approved computer energy simulation model. The analyst should have public building design experience and be familiar with energy system options and energy modeling techniques. 

How Much Have These Guidelines Changed?

  • Transfer of Responsibilities. This version of the guidelines reflects the transfer of WSEO's responsibilities to E&AS. 
  • Economic Update. This version of the guidelines updates economic factors. These updates were based on data provided by the Northwest Power Council. 
  • The building useful life has been extended from 25 to 30 years. 
  • Forms have been up dated. 
  • The maintenance cost spreadsheet has been removed and replaced with a reference to MEANS Facilities Maintenance and Repair Cost Data and/or The Whitestone Building Maintenance and Repair Cost Reference. 
  • This version of the guidelines adds the ELCCA Submittal Evaluation.