A bill for an act
relating to transportation; amending requirements governing pavement life-cycle
cost analyses; requiring a report; amending Minnesota Statutes 2022, section
174.185.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 174.185, is amended to read:


174.185 PAVEMENT LIFE-CYCLE COST ANALYSIS.

Subdivision 1.

Definitions.

For the purposes of this section, the following definitions
apply.

deleted text begin (a) "Life-cycle cost" is the sum of the cost of the initial pavement project and all
anticipated costs for maintenance, repair, and resurfacing over the life of the pavement.
Anticipated costs must be based on Minnesota's actual or reasonably projected maintenance,
repair, and resurfacing schedules, and costs determined by the Department of Transportation
district personnel based upon recently awarded local projects and experience with local
material costs.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end "Life-cycle cost analysis" deleted text begin isdeleted text end new text begin or "analysis" meansnew text end a deleted text begin comparison of life-cycle costs
among competing paving materials using equal design lives and equal comparison periods.
deleted text end new text begin
process for evaluating the total economic worth of a usable project segment by analyzing
initial costs and discounted future costs, such as maintenance, user costs, reconstruction,
rehabilitation, restoring, and resurfacing costs over the life of the project segment.
new text end

new text begin (b) "Minimum requirements" means a combination of pavement, base, and subbase
materials that minimizes the total system cost to achieve the specified design performance
requirements. Design performance requirements are based on design traffic volumes,
reliability, standard deviation, pavement structural characteristics, and various material
properties for structural design.
new text end

new text begin (c) "Pavement" means any material used for paved traffic lanes, typically asphalt or
concrete, including the underlying materials inherent to each pavement alternative considered.
new text end

new text begin (d) "Rounded value" means a measurement that is rounded to the nearest half-inch
increment.
new text end

new text begin (e) "Shoulder" means the portion of the highway that is contiguous with the regularly
traveled portion of the highway, outside of the edge of the pavement, and for accommodation
of stopped vehicles, emergency use, and lateral support of base and surface courses.
new text end

new text begin (f) "Substantial plan development" means the point in time during the plan development
process after which any further activities would preclude any of the feasible alternatives
from being selected or constructed.
new text end

new text begin (g) "Superfluous materials" means materials that are in excess of rounded values and
that are not necessary to meet the minimum requirements for a feasible alternative.
new text end

Subd. 2.

Required analysis.

new text begin (a) new text end For deleted text begin each project in the reconditioning, resurfacing, and
road repair funding categories
deleted text end new text begin any project with 60,000 or more square yards of paving,
including for the shoulder
new text end , the commissioner deleted text begin shalldeleted text end new text begin mustnew text end perform a life-cycle cost analysis
deleted text begin and shall document the lowest life-cycle costs and all alternatives considered. The
commissioner shall document the chosen pavement strategy and, if the lowest life cycle is
not selected, document the justification for the chosen strategy. A life-cycle cost analysis
is required for projects to be constructed after July 1, 2011.
deleted text end new text begin and document the chosen
pavement strategy as provided in this section. The commissioner must perform the life-cycle
cost analysis prior to substantial plan development.
new text end

new text begin (b) When conducting a life-cycle cost analysis, the commissioner must:
new text end

new text begin (1) derive initial and future costs from Minnesota-based historical data of roadways with
similar characteristics, including but not limited to similar geographical location, rural or
urban classification, traffic volumes, construction practices, staging, and vehicle classification
percentages;
new text end

new text begin (2) determine the analysis period based on the longest design life of all feasible
alternatives or 60 years, whichever is longer;
new text end

new text begin (3) compensate for any life added or lost due to rounding if pavement thickness is rounded
up or down;
new text end

new text begin (4) ensure that each feasible alternative being considered in the analysis meets the
minimum requirements for that alternative and must consider only the pavement, base, and
subbase materials that are required to meet the minimum criteria for that alternative;
new text end

new text begin (5) identify all feasible alternatives, including a full range of rehabilitation strategies for
both rigid and flexible pavements;
new text end

new text begin (6) include agency costs, including but not limited to initial pavement, future rehabilitation
and maintenance projects, overhead, design, contract administration, and routine maintenance;
new text end

new text begin (7) include mobilization costs related to construction, maintenance, or rehabilitation;
new text end

new text begin (8) include costs for traffic control to protect workers and the public during each
construction, maintenance, or rehabilitation activity in the analysis;
new text end

new text begin (9) include evaluation of greenhouse gas emissions through the entire analysis period,
including emissions generated during material production and by users of the road;
new text end

new text begin (10) identify and use realistic timing of future maintenance and construction practices
using similar characteristics, including but not limited to similar geographical location, rural
or urban classification, traffic volumes, construction practices, staging, and vehicle
classification percentages;
new text end

new text begin (11) for each feasible alternative with residual service life at the end of the analysis
period, calculate the value of any residual service life and include the value as a credit in
the final year of the analysis period;
new text end

new text begin (12) add the annual excess fuel consumption costs, as calculated in subdivision 2a, as
an annual pavement cost;
new text end

new text begin (13) include an explanation of the methodology used to produce the cost estimate and
why that method was selected; and
new text end

new text begin (14) include an explanation of the timing selected of rehabilitation and maintenance and
why that timing was selected.
new text end

new text begin (c) The commissioner must not include the following in a life-cycle cost analysis:
new text end

new text begin (1) elements that are the same for all alternatives;
new text end

new text begin (2) life-cycle calculations for shoulder pavement, shoulder base, or shoulder subbase;
and
new text end

new text begin (3) any superfluous material that is included as part of the feasible alternative but is not
required to meet the minimum requirements of the feasible alternative, including any material
that may be included due to the designer's preference or recommendation in the department's
Pavement Design Manual. This clause does not preclude the commissioner from selecting
a pavement strategy that uses superfluous materials, but the superfluous materials must not
be a factor in making the selection.
new text end

new text begin Subd. 2a. new text end

new text begin Excess fuel consumption calculation. new text end

new text begin (a) For purposes of this subdivision,
the following terms have the meanings given:
new text end

new text begin (1) "diesel fuel price" means the Midwest nonhighway diesel fuel price effective for the
date the calculation is performed as provided by the federal Energy Information
Administration;
new text end

new text begin (2) "gasoline fuel price" means the Midwest regular gasoline price effective for the date
the calculation is performed as provided by the federal Energy Information Administration;
new text end

new text begin (3) "heavy commercial annual average daily traffic" or "HCAADT" means the heavy
commercial annual average daily traffic provided by the department's data and based on the
traffic forecasting and analysis system;
new text end

new text begin (4) "heavy-duty fuel savings factor" means the percentage of rigid pavement savings
anticipated for heavy commercial vehicles as provided by department research, state or
federal agencies, or relevant academic research projects;
new text end

new text begin (5) "heavy-duty MPG" means the latest fleet average miles per gallon of heavy-duty,
short-wheelbase vehicles as provided by the federal Energy Information Administration;
new text end

new text begin (6) "light-duty fuel savings factor" means the percentage of rigid pavement savings
anticipated for passenger vehicles as provided by department research, state or federal