BC Energy Step Code and Zero Carbon Code

In 2019, Nanaimo City Council declared a Climate Emergency and set community wide emissions targets to be 50% to 58% below 2010 levels by 2030, and 94% to 107% below 2010 levels by 2050.

Buildings and Infrastructure accounted for 31% of the city’s community greenhouse gas emissions (GHG) in 2017, second only to the mobility sector. The burning of fossil fuels, like natural gas and oil, for space heating and hot water is a primary contributor of building emissions. Reducing building emissions through new construction standards and supporting low carbon (electric) systems is recognized as an important part of the City’s strategy to reduce community GHG emissions. 

The construction, operation, and maintenance of buildings produce emissions through energy use for heating, cooling, and lighting, as well as the production of building materials and waste. One approach to reducing energy and emissions in the building sector is to encourage the construction of energy-efficient and low-carbon new buildings. This contributes to a more sustainable future but also offers long-term cost savings for building owners and occupants.

Using low emission/energy efficient design at the time of initial construction avoids the high cost of having to renovate the home for better efficiency or a different energy system later. The buildings we build today will last past our own lifetimes, meaning that the decisions made about them now will impact their energy and emissions far into the future.

What is the difference between the BC Energy Step Code and the Zero Carbon Step Code?

The BC Energy Step Code is a provincial standard that sets energy efficiency requirements for new buildings, while the BC Zero Carbon Step Code sets greenhouse gas emissions targets for new buildings.

The BC Energy Step Code is a provincial standard that sets energy efficiency requirements for new buildings, while the BC Zero Carbon Step Code sets greenhouse gas emissions targets for new buildings.

A high energy efficiency home is viewed as increasingly desirable by potential home buyers. In a 2020 survey by the Canadian Home Builders Association (CHBA), 9 out of 10 respondents said they either “really want” or “must have” an energy-efficient home. An “overall energy efficient home” was listed as the third most desirable feature prospective homeowners look for in a new home.  High-efficiency windows come in at number four. A high-efficiency, low-carbon heating system has also made it onto buyers’ top-ten list of priorities, at number nine.

Zero Carbon Step Code only applies to certain types of new buildings and will not affect existing buildings. New buildings constructed under the current building code are generally much more energy efficient than older existing buildings. This means these new buildings can maintain comfortable indoor temperatures for longer periods of time in the case of power outages. 

A common misconception is that relying solely on electricity puts residents at greater risk in the case of a power outage (compared to having both natural gas and electricity). In general, gas heating systems such as a furnace will not operate during a power outage as they use components that require electricity to operate, including circuit boards, relays, and blower motors and fans.  However, most gas or wood fireplaces generally could still be used to produce heat for a small area when power is out. For single-family homes, duplexes and townhomes, backup or redundant heating systems such as wood and gas fireplaces are not within the scope of the Zero Carbon Step Code and can still be installed.   

Despite that the Zero Carbon Code was only introduced on 2023-MAY-01, a number of local governments in BC have already taken action to restrict carbon emissions from new buildings. The District of Saanich and City of Victoria worked collaboratively to become the first municipalities to enact regulations referencing the Zero Carbon Step Code. As of 2023-MAY-01, both Saanich and Victoria require all new buildings to meet the Measure Only tier of the Zero Carbon Step Code. Part 9 buildings in both cities will need to meet the top level - Zero Carbon Performance Level (EL-4) on and after 2023-NOV-01, Part 3 residential buildings (4-6 storey) will need to meet EL-4 after on and after 2024-JUL-01, and the remaining Part 3 buildings will need to meet EL-4 on and after 2024-NOV-01.

The Resort Municipality of Whistler quickly followed Saanich and Victoria in implementing the Zero Carbon Code.   Starting on 2024-JAN-01, Whistler will require Step 4 of the BC Energy Step Code (one step above minimum code) plus Strong Carbon Performance for all Part 9 homes; and Step 3 (one step above minimum code) with Strong Carbon Performance for Part 3 residential buildings.  Whistler will then progress to a Zero Carbon Performance by 2026.

On 2023-MAY-23, District of Central Saanich Council supported the move to implement Zero Carbon Performance for Part 9 buildings by 2023-NOV-01. They also already require Step 3 (one step above minimum code) for Part 3 residential buildings (4-6 story).

Prior to the Province announcing their intent to introduce the Zero Carbon Code, a number of Lower Mainland municipalities developed low carbon energy system requirements generally to be in lieu of advanced Step Code steps.   The Cities of Richmond, North Vancouver, and West Vancouver have developed a policy that allows developers to choose to either meet the top Step Code requirement or meet a lower Step Code requirement and a set emissions standard.  

As of 2023-OCT-01, the City of Richmond will require Part 9 builders to either meet Step 5 of the BC Energy Step Code or meet Step 3 plus a low carbon energy standard equivalent to the Strong Carbon Standard.  Richmond has indicated they will increase the minimum step code requirement in conjunction with a LCES to Step 4 by 2025 and Step 5 by 2027.   They plan to follow a similar step up approach for Part 3 buildings. 

The BC Zero Carbon Step Code is a provincial BC Building Code standard that local governments can choose to implement in their jurisdiction, starting May 1, 2023. The Zero Carbon Step Code sets a maximum annual amount of greenhouse gas emissions that each new building is allowed to emit.

Local governments may reference the Zero Carbon Step Code in their building or zoning bylaws and may also apply different carbon performance levels, where each higher performance level further reduces building emissions. This allows local governments to find a carbon performance level that is feasible for their local context.

No. Zero Carbon Step Code sets a maximum annual amount of greenhouse gas emissions that a new building is allowed to emit. Development projects have the option to specify low emissions energy sources* (such as electricity) for space and hot water heating and cooking equipment, or include equipment powered by an energy source with a higher carbon emissions factor (such as natural gas) as long as the projects can demonstrate the anticipated carbon emissions are under the required threshold.

For most building types, including single-family homes, back up or redundant heating systems such as woodstoves and natural gas fireplaces will continue to be permitted. Depending on building design, ancillary uses and appliances may still use an energy source with a higher emissions factor and be Zero Carbon Step Code compliant.

In practice, there are a variety of ways to meet the top level of the Zero Carbon Step Code. It is entirely at the designer or architect’s discretion to choose how the building will meet a target Emission Level (EL). Decisions on energy sources and equipment may affect requirements for other building systems and components (such as insulation, windows, etc.).

Homes and small residential buildings (Part 9) have both performance and prescriptive compliance options available. Large complex buildings (Part 3) only have a performance pathway available, where compliance is determined by following the City of Vancouver Energy Modelling Guidelines.

Under the performance pathway for Part 9, the EL is determined by modelling the building and its systems to meet certain metrics. These metrics are the same for all buildings that fall under the Zero Carbon Step Code, independent of the energy source chosen for building systems and equipment. This means that some trade-offs – such as a higher performing envelope – may have to be included in the building design if energy sources with a higher emissions factor* are used. The greenhouse gas emissions of ancillary equipment such as cooktops, fireplaces, and laundry drying equipment are not included in the modelling of a Part 9 building’s EL for determining compliance with the performance path. As it is a performance based compliance pathway, there is no simple archetype of an EL-4 building, as one can be different from the next depending on design decisions made for each building.

The prescriptive pathway for Part 9 is a simplified option to meet an EL which may require energy sources with a low emission factor (≤0.011 kg CO2e/kWh) for building heating systems, service hot water systems, equipment, and/or appliances. An EL-4 prescriptive building uses low-carbon energy sources for all building systems, equipment, and appliances. Cooktops and laundry drying equipment are included in the prescriptive path compliance, and must use energy sources with a lower carbon emissions factor to meet EL-4 under this pathway.

For Part 3 buildings the performance pathway is similar to Part 9, however building’s greenhouse gas emissions are calculated based on the use of all energy utilities on site regardless of what equipment/appliances are being served. This would include all building systems, equipment, and appliances in the performance model. Like Part 9, there may be design trade-offs required if energy sources with a higher emissions factor are predominantly used throughout the building. As it is performance based compliance there is no simple archetype of an EL-4 building, as one can be different than the next depending on design decisions made for each building.

*The emissions factors associated with the use of energy utilities consumed by the building’s systems are published in the BC Building Code as follows:

1) 0.011 kg CO2e/kWh for electricity, and

2) 0.180 kg CO2e/kWh for natural gas.

Further detailed information on the Zero Carbon Step Code can be found in Technical Bulletin No. B23-03 from the provincial Building and Safety Standards Branch, including emissions factors for other energy sources.

BC Hydro is planning for the rapid scale up of building, vehicle, and industry electrification and has developed near- and long-term actions to meet the scale of electrification required for achieving the provincial government’s climate targets.

BC Hydro Staff attended the May 1, 2023 Council meeting as a delegation, and confirmed BC Hydro is currently in an energy surplus and have the capacity to meet projected demand.   BC Hydro were partners in the development of the BC Energy Step Code and are aware of, and supportive of, the Zero Carbon Code.  Click here to watch the BC Hydro Council presentation.

The Zero Carbon Step Code applies to buildings that fall under the “performance” path of the Energy Step Code, namely residential (Group C), business and personal services (Group D), and mercantile (Group E) occupancies as defined in the BC Building Code. These primarily include – but are not limited to – small and large residential buildings, retail stores, hotels, and offices. Both restaurants and daycares would be considered a Group A, Division 2 occupancy, but Group A occupancies are not currently under the scope of the Zero Carbon Step Code. Please refer to Section 9.37. and 10.3. of the BC Building Code for more information.

While heating a home with a natural gas furnace is generally more affordable than using electric baseboards, homes heated with a heat pump generally have similar or lower utility bills than those heated with natural gas.  A recent study of Vancouver Island and the Lower Mainland heat pump users who recently switched from natural gas noted “at current utility costs and carbon tax rates, heat pumps resulted in the same or lower costs in the majority (70%) of participating homes. With only 12% of homes experiencing a utility cost increase of more than 10%.”

Like capital costs, utility costs can vary widely, primary due to the type of equipment installed, fluctuating energy costs, and user preferences.  Due to efficiency of electric systems for large buildings, modeling suggests utility costs would decrease between 9% to 24% (depending on Step Code levels and the size of the building) for multiple-family dwellings built to the Zero Carbon Step Code standard. For single-family dwellings, utility costs for a Zero Carbon Performance home range from a decrease of 12% to an increase of 7% compared to a baseline gas heated home. 

Costing studies estimate the incremental cost increase for implementing the Zero Carbon Performance standard are between 0 to 2% for both single-family homes and multiple-family residential buildings compared to a Step 3 building heated with gas.

The BC Energy Step Code is a provincial standard for energy efficiency requirements for new buildings. It was first introduced in 2017 as an optional compliance pathway for local governments to encourage or require a certain level of energy efficiency in new construction. As of May 1, 2023, Part 9 buildings (homes and small buildings) must meet Step 3 of the Energy Step Code, while Part 3 buildings (larger, complex buildings) must meet Step 2.

The Province has announced anticipated dates for the implementation of both the BC Energy Step Code and the Zero Carbon Step Code. 

		2023-May-01	2024	2027	2030	2032
BC Energy Step Code	Part 9	Step 3		Step 4		Step 5
	Part 3	Step 2		Step 3		Step 4
Zero Carbon Step Code			TBD*	TBD*	Zero Carbon Performance

The cost of complying with energy efficiency and low carbon regulations will vary from building to building and project to project, depending on the project type, goals of the project, product availability and cost, and the decisions made during design.

As noted in the 2018 and 2022 Provincial BC Energy Step Code Metrics reports, historically, the cost premiums of high-performance building components have gone down over time, as the technology develops and as the market matures.  

Overall, the expected cost increase from the baseline National Energy Code of Canada for Buildings (NECB 2017) standard ranges from 1 to 8% for single-family homes constructed to Step 5 and 1 to 6% for multiple-family dwellings constructed to Step 4 of BC Energy Step Code.  As currently in BC, single-family homes are required to meet Step 3 and large multi-family dwellings Step 2, the cost increase will likely be less than the above noted ranges. The cost increase for single-family homes is greater in small homes (less than 200m2) than large or medium sized homes over 200m2.  For large and medium sized homes, the cost increase ranged from 1 to 3%.  

More costing studies can be found in the Documents section of the project page.

The BC Energy Step Code and Zero Carbon Step Code have very specific scope and generally apply to residential use and retail but with certain exemptions.  In the case of manufactured and mobile homes, neither the BC Energy Step nor the Zero Carbon Code apply.

No, both the BC Energy Step Code and the Zero Carbon Step Code only apply to new buildings and will not impact homeowners renovating their home or replacing their heating, cooling or hot water systems.  While a number of programs, including rebates, exist to help existing homeowners improve their energy efficiency and reduce emissions within their own homes, no regulations exist that will impact existing homeowner energy choices.

Renewable Natural Gas (RNG) refers to biomethane derived from captured and cleaned biogas. Biogas is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. RNG has a lower emission factor than the conventional natural gas on a life cycle basis. However, there is currently no mechanism to ensure RNG will be used for the life of the building. Also, the amount of RNG that can be produced from landfills, agricultural waste and wastewater treatment facilities in BC is limited and is best reserved for hard-to-decarbonize sectors (e.g. heavy industry) and not used in buildings where alternative solutions are readily available. In the BC Building Code, RNG is not listed with an emission factor. For these reasons, RNG is currently not considered an option for Zero Carbon Step Code compliance.