Step Code

The BC Energy Step Code is a provincial standard established under the BC Building Code that sets out a tiered, performance-based framework for energy efficiency in new construction, with the ultimate goal of achieving net-zero-energy-ready buildings. It was introduced through amendments to the BC Building Code, which is enacted under the Safety Standards Act and administered by the Office of the BC Safety Authority and the Province. The Code defines multiple 'steps,' each representing progressively higher energy performance requirements measured against a reference building model. Local governments in BC may adopt specific steps through their own zoning or building bylaws.

Yes, local governments in British Columbia have the authority under the Local Government Act and the Vancouver Charter (for the City of Vancouver) to pass bylaws requiring new construction to meet a Step Code level above the provincial baseline. This means a buyer purchasing a newly built home in one municipality may face different energy-efficiency construction standards than in a neighbouring jurisdiction. Prospective purchasers and builders should confirm the specific Step Code requirement with the relevant local government's building or planning department before commencing a project.

When purchasing a newly built home, the applicable Step Code level will influence the building's insulation, airtightness, ventilation, and overall energy performance, which can affect ongoing utility costs and the home's long-term value. The Step Code level achieved must be confirmed through third-party testing and verified by an energy advisor, and this information may appear in the home's building permit documentation. Buyers should request confirmation of the Step Code level attained from the builder and review any related documentation provided at completion. For questions about how Step Code compliance intersects with new-home warranties, buyers may also consult BC Housing's Homeowner Protection Office.

The BC Energy Step Code applies to the construction of new strata buildings as a whole, since it is a building-permit-stage requirement governed by the BC Building Code rather than a strata-governance instrument. Individual strata lots within a newly built strata building will benefit from the energy-efficiency measures built into the entire structure at the time of construction. The Strata Property Act (SBC 1998, c. 43) governs the ongoing management of strata corporations and common property but does not itself set energy-efficiency construction standards. A strata corporation's bylaws under the Strata Property Act could, however, address energy-related renovations or alterations to common property after construction.

Under the Real Estate Services Act (RESA) and BCFSA guidelines, licensees are required to disclose known material latent defects — meaning defects that are not apparent on a reasonable inspection and that could affect the property's value or safety. A building's failure to obtain required Step Code compliance at the permitting stage could constitute a material issue if it affects the building's legal occupancy status, though this is a fact-specific determination. Licensees acting for sellers should encourage their clients to confirm that all building permits, including Step Code performance verification, were properly closed and documented. Buyers' agents should advise clients to request copies of the energy advisor's report and final building permit sign-off as part of their due diligence.

The BC Property Transfer Tax Act provides a Newly Built Home Exemption for eligible buyers of newly constructed homes, with a full exemption available up to a fair market value threshold — consult the current BC Ministry of Finance guidance for the exact current threshold, as it is subject to legislative change. The exemption is tied to the property being a newly built residential property and the purchaser's eligibility, rather than directly to the Step Code level achieved. Step Code compliance does not itself independently trigger or enhance a PTT exemption, but a newly built home meeting Step Code requirements would still need to satisfy all other Newly Built Home Exemption criteria. Buyers should consult the BC Ministry of Finance or a qualified tax professional for confirmation of their specific eligibility.

Compliance with the BC Energy Step Code is verified through a combination of energy modelling and on-site testing, typically conducted by a registered energy advisor certified under Natural Resources Canada's EnerGuide program. For most steps, builders must demonstrate compliance through a blower door test that measures airtightness, as well as an as-built energy model confirming the building meets the required energy use intensity or airtightness targets. The energy advisor submits a compliance report to the local authority having jurisdiction, which is required before a building permit can be finalized. Buyers of newly built homes should request a copy of the energy advisor's compliance report as part of their purchase due diligence.

The BC Energy Step Code is primarily applied to new construction through the building permit process under the BC Building Code; however, local governments may choose to apply Step Code requirements to substantial additions or major renovations through their own bylaws. Whether a particular renovation triggers Step Code obligations depends on the scope of work, the local government's bylaws, and the building official's assessment of the permit application. Homeowners planning significant additions or renovations should confirm with their local building department whether Step Code compliance will be required before commencing work. This is a planning-stage consideration distinct from the ongoing strata governance obligations under the Strata Property Act.

The BC Energy Step Code is structured as a multi-step ladder of progressively higher energy-performance requirements, with the highest steps representing net-zero-energy-ready construction — meaning the building is so efficient that it could theoretically produce as much energy as it consumes with the addition of a renewable energy system. The Province of British Columbia has signalled an intention to require higher steps over time, effectively raising the baseline of the BC Building Code toward net-zero-energy-ready performance for all new buildings. This incremental approach is designed to give the construction industry time to develop skills, supply chains, and cost efficiencies before mandatory higher steps take effect. Buyers, developers, and builders should monitor BC Building Code updates and local government bylaws for the current mandatory step levels applicable in their jurisdiction.

BC real estate licensees regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) are expected to be knowledgeable about factors that materially affect the properties they represent, which can include energy-efficiency standards applicable to new construction such as the BC Energy Step Code. While licensees are not required to be energy advisors or building code experts, they should be able to explain the concept of Step Code to clients, identify relevant documentation, and refer clients to qualified professionals — such as energy advisors or building officials — for technical confirmation. Misrepresenting a property's Step Code status or omitting known material information about building permit compliance could constitute a breach of a licensee's duties under RESA. BCFSA's published guidelines on professional conduct and disclosure obligations should be reviewed by all active licensees.