On November 21st, 2023, Council gave First, Second, and Third Readings to bylaw amendments to reduce Energy Step Code (ESC) requirements by one level for multifamily applications proposing to meet Zero Carbon Step Code (ZCSC) EL-4 (full building electrification).

The proposal was in response to the spike in construction and financing costs over the last three years, exacerbated by the added cost of ESC Step 4 requirements. UDI submitted a letter to District staff on September 15th requesting that the District relax its requirement for new buildings to meet Step 4 of the ESC, and instead provide a “step-down” option to permit builders to meet Step 3 of the ESC if they also meet EL-2 of the ZCSC (in which space heating or domestic hot water system would be zero-carbon). The District currently has regulations in place through its density bonusing system and rezoning practices that already require full electrification of new housing projects in line with EL-4 of the ZCSC. Therefore, going down to EL-2 was recognized as a step back for the District in terms of its climate policies, and would not be supported under the Climate Action Plan.

District staff do understand that temporarily aligning the Step 3 option of the ESC with the EL-4 requirement of the ZCSC will provide relief to the industry associated with Step 4 construction costs. They are proposing to make this step-down option available for a two-year period ending in January of 2026 when energy efficiency Step 4 would once again become the only standard, one year ahead of the expected change to the BC Building Code to mandate Step 4.

More information can be found in the report by District staff.