Vehicle Acquisition Total Cost of Ownership (TCO) Assessment Requirement

Something Missing?

Email the Technical Response Service or call 800-254-6735.

By October 1, 2022, the Virginia Department of General Services (DGS) must identify a publicly available TCO calculator to assess and compare the total lifetime cost of purchasing, owning or leasing, and operating light-duty internal combustion engine (ICE) vehicles and EVs. The calculator must consider vehicle make, model, age, annual mileage, lifespan, depreciation, and capital, maintenance, repair, and infrastructure costs. The TCO calculator must be updated on an annual basis to reflect current prices and vehicle models. Beginning January 1, 2023, DGS and all other state agencies must purchase or lease EVs instead of ICE vehicles if the calculator indicates EVs have a lower TCO. Beginning January 1, 2026, and triennially thereafter, DGS must report estimated cost savings and emissions reductions as a result of purchasing EVs instead of ICE vehicles. Emergency and law-enforcement vehicles are exempt from this requirement.

(Reference Senate Bill 575, 2022)