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Life Cycle Cost and Procurement Act Summary

Reference Number: MTAS-2041
Reviewed Date: 07/31/2020

The state chief procurement officer will determine which commodities and products may be bought according to energy efficiency standards. The state must adopt rules and regulations relative to energy efficiency standards for major energy-consuming products. Life cycle costs are to be used in contracting for major energy-consuming products. In determining life cycle costs, the state may consider:

  • Acquisition cost of the product,
  • Energy consumption and projected cost of energy over the useful life of the product, and
  • The expected re-sale or salvage value of the product.

Except where prohibited by private act or state law, the municipality must adopt the energy efficiency standards and life cycle costing employed by the state. The municipality may develop and adopt its own energy efficiency standards, provided they are more stringent than the state standards.

The T.C.A. citation for this topic is T.C.A. §§ 12-3-901 et. seq.