Net Zero Without Glitches or Hitches: Putting the B.C. Energy Step Code into Practice May 18, 2017 Good afternoon. My name is _________ and I am the _________________ with _______________. It’s my pleasure to introduce you today to the BC Energy Step Code. The BC Energy Step Code is a provincial standard enacted in April that provides a consistent approach to building that go beyond the energy-efficient requirements of the BC Building Code. In addition to supporting energy efficiency, this new standard also serves as a policy pathway to meeting the province’s target that all new construction should be net-zero ready by 2032. Today I’m going to walk you through how it came to be, how it works, how a local government might use it, and also share a few examples of real-world projects that would meet the various levels of performance. Zachary May Province of British Columbia Bob Deeks Canadian Homebuilders Assoc Rory Tooke City of Surrey Robyn Wark BC Hydro

Renewable Cities: Terms of Engagement 1. Chatham House Rule: Participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. 2. The focus is on dialogue not debate. 3. Hats off: Each participant is here as an individual and is not speaking on behalf of their business or organization. 4. Step up or step back. 5. Cell phones off (or muted). 6. Photography disclaimer: Event will be photographed and videoed for the purposes of reporting out. 7. Social media: Sharing is encouraged under the principle of Chatham House Rule. Two provincial initiatives gave rise to the BC Energy Step Code. Over the past decade many local governments have adopted policies, bylaws, and incentive programs that target building energy efficiency. Each of them measures energy efficiency in a different way, which created headaches for the development industry. To improve consistency across the province, Section 5 of the Building Act will make bylaws that reference technical building requirements — including energy efficiency standards — unenforceable, effective December 15, 2017. The BC Energy Step Code provides an alternative method of enforcing energy efficiency standards.British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017. That said, but will not be required to do so. The exception to this is the City of Vancouver, which has its own high performance building strategy, which is closely aligned with the BC Energy Step Code. So the new requirements of the Building Act was a prime driver. The other was the Climate Leadership Plan. That plan, released last summer, set a target that all new construction in the province will need to be “net zero ready” by 2032. Similarly, the federal Pan-Canadian Framework on Clean Growth & Climate Change references model net zero energy codes will be available to provinces by 2030. The BC Energy Step Code is really our roadmap to a future in which all construction is built to the highest possible level of performance. It charts a course to that net zero target.

Neighbour Curtis 1929 bungalow – bought it in 2011 No insulation Winter – super-drafty and chilly. Bundle up in warm sweaters 2013 – added insulation Much more comfy This story isn’t to illustrate how building practices have changed, or to talk about how expensive and uncomfortable it is to live in a drafty house (although it is) – but rather it is to tell you how important it is to BUILD IT RIGHT the first time. The houses we build have staying power! The inside of that house certainly has had tonnes of renovations since 1928, as kitchen designs evolved, bathroom trends changed, shag carpet was seen as fabulous … then hideous – but the one thing that didn’t get changed was the building envelope. And as consumers, when we look to buy houses, and we notice how much the builder has spent on granite countertops, or hardwood flooring, or nice skylights. The one thing we find it difficult to evaluate is whether the envelope was built properly. Was the insulation all sealed in properly. And it’s tough for a housing inspector to work this out too. ----- So when did we start caring about the energy efficiency in our buildings? Builders started caring about insulation because of costs of heating homes went up, and insulation became more commonplace. But consumers weren’t easily able to tell the difference between a “well-built, energy efficient home” and one that was not.

Energy Efficient buildings … a niche product Different Builder programs … But until recently the BC Building Code was silent on this. Left - Kent: 75 houses built to Step 3. Right – Passivehouse, Victoria, bc

Over the past decade, significant advances in building science have yielded new approaches that allow for more energy efficient and low emission buildings that remain cost-effective to build. The BC Energy Step Code is designed to bring these new practices into the broader market, reducing energy demand across the board. Local governments can choose to require or incentivize builders to meet one or more steps of the BC Energy Step Code, as an alternative to the prescriptive requirements set out in the BC Building Code. Over time, the building industry will integrate these techniques into all new buildings, and high performance materials and products will become increasingly available and cost-effective. The BC Energy Step Code is performance based. It establishes measurable performance-based energy-efficiency requirements for new construction. To demonstrate compliance, a builder must prove to building officials that his or her building meets or exceeds a set of defined metrics. The standard uses the same metrics for each step, with progressively more demanding targets all the way up to the highest step, which represents a net zero ready level of performance.

Energy Step Code – Overview Net Zero without Hitches or Glitches: Agenda Energy Step Code – Overview Zachary May: Introduction to the BC Energy Step Code Bob Deeks: Market Transformation - Perspective of a high performance builder Rory Tooke: Market Transformation - Perspective of a local government staff member Clarifying questions 3pm Dialogue . In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Dialogue questions Energy Step Code – Overview The Goldilocks Dilemma: What is the right pace of roll-out, not “too fast,” not “too slow” to ensure affordability is protected? Replicating Success: Energy Step Code Council. How can we take this multi-stakeholder success and spin it out at a local and regional level? Thinking Strategically: What needs to happen for local governments to undertake Strategic Step Code Plans? Change Management: How to raise the industry and building official quality of energy efficiency work across the entire spectrum of experience and skillsets? Costs Versus Benefits: How do we tackle the enduring challenge of costs vs. benefits? In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Presentations Energy Step Code – Overview In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Dialogue Energy Step Code – Overview 3:00 pm  Set-up (Select a recorder) Name, affiliation/community 1 hope or 1 concern about the Energy Step Code 3:05 Dialogue questions 3: 40 Proposal: Draft a solution that addresses the major hurdles and takes up the best opportunities and recognizes the biggest unknown   3:55 pm    Report back Each table shares that final statement/proposal with the larger group 4:15 pm    Closing Round - What will you tell others about the BC Energy Step Code? 4:25 pm    Fill out evaluation forms 4:30 pm    Adjourn  In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Dialogue questions Energy Step Code – Overview The Goldilocks Dilemma: How can the BC Energy Step Code Council best advise local governments on the right pace of roll-out, not “too fast,” not “too slow” to ensure affordability is protected? How do we secure success from incentives to mandated requirements. (Germany mandated Passivhaus with four years notice vs. “stepping stone approach” concerns around risks and capacity here.)  Replicating Success: Energy Step Code Council. How can we take this multi-stakeholder success and spin it out at a local and regional level? (eg is a distributed model a stronger model? Energy Step Code Regional Chapters?). What other supports have been effective to support dialogue? In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Dialogue questions Energy Step Code – Overview Thinking Strategically: What needs to happen for local governments to undertake Strategic Step Code Plans with builder engagement, multi-stage roll-out, with different policy tools, and building typologies? (eg peer network?) How should a government integrate the step code with existing low carbon investments (such as District energy systems) and policies. Change Management: How to raise the industry and building official quality of energy efficiency work across the entire spectrum of experience and skillsets? How to deal with the learning curve costs? In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Energy Step Code – Overview Dialogue questions Energy Step Code – Overview Costs Versus Benefits: How do we tackle the enduring challenge of costs vs. benefits? How do we shift thinking towards intangible benefits such as comfort, quiet, health, and attach real monetary value to them? In 2007 or in the years that followed, almost all B.C. local governments signed on to the Climate Action Charter. Signatory governments commit to a range of actions, including “creating more energy efficient communities.” Many of them subsequently adopted policies, bylaws, and incentive programs that target building energy efficiency. You can see a few of them represented here. These programs each define efficiency using different metrics, which created a patchwork of compliance requirements. This was especially challenging in areas such as Metro Vancouver and the Capital Regional District, where adjacent municipalities often had different rules and requirements. The development industry struggled to keep track of the various standards, and where they apply. The Energy Step Code provides an alternative method of enforcing energy efficiency standards under the Building Act. British Columbia local governments interested in better-than-code building energy efficiency may reference the BC Energy Step Code in their policies and bylaws as of December 15, 2017, but will not be required to do so. Builders may be required to build to a given “step” if a local government has adopted step code requirements. In communities and regions where the BC Energy Step Code is not required outright, local governments may offer incentives to encourage builders to build to a given step.

Thank you from the Energy Step Code Council … | PROVINCIAL GOV. | BUILDERS & DEVELOPERS | LOCAL GOVERNMENTS | TRADES & PROFESSIONALS In response, in 2014 the province convened an Energy Efficiency Working Group, comprised of builders, developers, governments, utilities, professional associations, and others. Government asked the group to develop recommendations for a consistent way to measure energy performance in new buildings. While some net zero buildings are already being constructed in BC, the practice is not widespread. Over the course of three years, the working group came up with a “high performance staircase” that would get everyone on the same page with a set of measurable performance benchmarks, that builders must meet in communities that adopt it The idea is that communities would gradually increase the ambition, and climb the staircase, and along the way move the building industry towards net zero. Eventually, they named the mechanism the BC Energy Step Code. | NGOs | UTILITIES

Over the past decade, significant advances in building science have yielded new approaches that allow for more energy efficient and low emission buildings that remain cost-effective to build. The BC Energy Step Code is designed to bring these new practices into the broader market, reducing energy demand across the board. Local governments can choose to require or incentivize builders to meet one or more steps of the BC Energy Step Code, as an alternative to the prescriptive requirements set out in the BC Building Code. Over time, the building industry will integrate these techniques into all new buildings, and high performance materials and products will become increasingly available and cost-effective. The BC Energy Step Code is performance based. It establishes measurable performance-based energy-efficiency requirements for new construction. To demonstrate compliance, a builder must prove to building officials that his or her building meets or exceeds a set of defined metrics. The standard uses the same metrics for each step, with progressively more demanding targets all the way up to the highest step, which represents a net zero ready level of performance.