(1) The department shall maintain a life-cycle cost model on capital assets such that:
(a) Available industry standards are used for estimating the life of an asset, and department-adopted standard life cycles derived from the experience of similar public and private entities are used when industry standards are not available;
(b) Standard estimated life is adjusted for asset condition when inspections are made;
(c) It does not include utilities or other systems that are not replaced on a standard life cycle; and
(d) It does not include assets not yet built.
(2) All assets in the life-cycle cost model must be inspected and updated in the life-cycle cost model for asset condition at least every three years.
(3) The life-cycle cost model shall be used when estimating future terminal and vessel preservation needs.
(4) The life-cycle cost model shall be the basis for developing the budget request for terminal and vessel preservation funding.