FAQs

The BC Energy Step Code is a provincial standard that sets energy efficiency requirements for new buildings, grouped into 5 “steps” towards a net zero ready construction standard by 2032. (Net-zero ready means a building designed and built to be very energy efficient; the building is “ready” to be net-zero when an owner decides to install solar panels that can produce as much energy as the building consumes in a year). As of May 1, 2023, most new buildings in B.C. must meet Step 3 in accordance with the BC Building Code.

The Zero Carbon Step Code is a provincial BC Building Code standard which sets greenhouse gas emissions targets for new buildings. Local governments can reference it in their building or zoning bylaws and may apply different carbon performance levels, with increasing requirements. In short, the BC Energy Step Code targets higher levels of energy efficiency and the Zero Carbon Step Code directly targets GHG emissions. The four carbon performance or “emissions levels” (EL) of the Zero Carbon Step code are:

1. Measure-only (EL-1): requires measurement of a building’s emissions without reductions and is intended to build knowledge and capacity.
2. Moderate Carbon Performance (EL-2): in most cases, will require decarbonization of either space heating or domestic hot water systems.
3. Strong Carbon Performance (EL-3): in most cases, will require decarbonization of both space heating and domestic hot water systems; and
4. Zero Carbon Performance (EL-4): in most cases, will require the full electrification of a building.

The Zero Carbon Step Code applies only to carbon pollution from space and water heating and cooking. It does not apply to wood stoves or decorative fireplaces and, is not concerned with the emissions associated with construction materials (i.e. “embodied carbon”).

 In general, it requires more advanced skills to meet the higher steps of the Energy Step Code (ESC) than the ZCSC. This is because high efficiency homes require extra design and construction attention to ensure heat loss is minimized while also ensuring required levels of ventilation are met and overheating is prevented.

Building to zero-carbon standards requires making a choice about what kind of equipment will be used in a building for space and water heating and cooking. In turn, this will dictate what kind of energy will be used - gas or electricity.

Many local developers, engineers, and architects are already using electric technologies, including air source heat pumps, ground source heat pumps, electric hot water heating systems, heat recovery ventilators, induction stoves, and even baseboards for high-efficiency homes. Thousands of buildings are built every year across B.C. with these kinds of technologies.

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.

A 2022 energy modeling study by the Province of B.C. explored the impact on construction costs of different building types complying with Zero Carbon Performance (EL- 4) of the Zero Carbon Step Code. Cost increases were typically below one percent and reflect the change in capital costs of building a house (materials, labor) as opposed to the total property value which includes land value and developer profit. (Ref: Draft carbon pollution standards for Part 9 buildings in British Columbia (gov.bc.ca) )

The study found that cost impacts of installing a heat pump system (as a percentage) will be higher for smaller buildings; this is because smaller homes have lower total construction costs compared to larger homes. As a result, installing a heat pump system in smaller homes will be a larger proportion of total cost. However, operating costs will be significantly lower for smaller dwellings.

 A 2021 analysis of construction costs of several buildings across southern B.C. found that in some cases, all-electric residential buildings have even been built for less than the cost of those built to minimum building code requirements. Costs will vary depending on design and experience of the team. In residential applications where cooling is desired, installation of a heat pump, a single system that does both heating and cooling, will usually cost less than two separate units for air conditioning and gas furnace.(Ref: Cost-Analysis-of-High-performance-MURBBs.pdf (zebx.org) )

 Furthermore, federal and provincial government carbon tax policies means that the cost of natural gas will continue to rise over the coming decade, up to $170/tonne by 2030. The cost of B.C.’s renewable electricity, meanwhile, will be unaffected by the carbon tax.

Approximately 80 percent of new buildings constructed today will still be standing in 50 years time. Every new building, therefore, represents a once in a lifetime opportunity to construct a building properly from the get go and to ensure that that building will not contribute to a community’s carbon pollution emissions.

The Government of B.C. is pursuing a policy that will effectively require every space and water heating system installed after 2030 to include a heat pump. Requiring a new building to be zero carbon today will help to ensure that these buildings will be compliant with this requirement when it comes time to replace their heating systems and avoids the additional future cost and time it would take to retrofit a fossil fuel system to one with a heat pump. 

It is considerably more straightforward to design and build a new building to be zero carbon than it is to retrofit to zero carbon requirements one after it is built. So, requiring a building to be zero carbon now can save higher costs down the road.

The ZCSC is designed to allow local governments to implement it seamlessly alongside existing permitting practices.

For homes and buildings that follow the performance based modeling approach to demonstrate compliance with the Energy Step Code, the same model can be used to demonstrate compliance with the ZCSC.

For homes that follow the prescriptive pathway to demonstrate compliance, an inspector only needs to check that the installed equipment is electric to verify compliance with the ZCSC.

For homes that are all electric, the absence of natural gas means no gas permitting/inspection is required, potentially reducing permitting times.

Electricity demand is expected to increase by 15% between now and 2030. This is due to population growth and housing construction, increased industrial development, including in the mining sector, and more homes and businesses switching from fossil fuels to clean electricity, among other factors. (Ref: Province updates act to prioritize affordability, clean energy | BC Gov News)

The idea that electricity can “run out” is a misunderstanding. Unlike fossil fuels, electricity is a type of energy that can be generated and is not a limited resource. The real concern is not the depletion of electricity itself, but rather the sources and related carbon emissions used to produce and use it.

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 needed for achieving the provincial government’s climate targets. The utility continuously updates these plans and projections in response to changing conditions (i.e. government policy and regulation, and market conditions). BC Hydro continues to improve and make upgrades to its transmission and distribution systems, so electricity can be transferred consistently from where it is generated to where it is needed across the province.

The provincial government and BC Hydro are working to accelerate electrification across B.C. in order to meet the goals of CleanBC, the province’s climate plan. Projects are expected to be built over the coming years and will be timed to ensure that they align with growing demand.

Energy efficiency is also a critical resource for reducing energy use wherever possible, and for getting more out of every unit of electricity generated in the province. For example, an electric heat pump uses 2 to 3 times less energy than a high efficiency natural gas furnace or electric baseboard. So only 33 percent to 50 percent of the energy is needed to heat a home with an electric heat pump as it would take to heat it with conventional gas or electric equipment. This means less total energy is needed to do the same level of work.