BACKGROUND:

The BC Energy Step Code is an optional compliance path in the BC Building Code that local
governments may use to incentivize or require a level of energy efficiency in new construction
that goes above and beyond the requirements of the BC Building Code. Builders may voluntarily
use the BC Energy Step Code as a new compliance path for meeting the energy-efficiency
requirements of the BC Building Code. As of 2022, the Province is making it mandatory that all
Part 9 residential buildings meet Step 3, which equates to 20% better energy efficiency than the
2018 BCBC. The province is also making it mandatory at this time that all Part 3 buildings meet
Step 2 which is 10% more efficiency. In 2032 it will be mandatory that all Part 9 residential
buildings meet Step 5, which is net zero ready and that all Part 3 buildings meet Step 4 which is
80% better than the 2018 BCBC.

To prepare contractors for the impending changes, Staff are recommending that Council adopt
a new building bylaw which implements Step 1 of the BC Energy Step Code for all buildings on
July 1, 2021. This will enable contractors to be familiarized with the process prior to the
mandatory implementation in 2022. Step 1 requires performance testing of the building during
construction to ensure that the building envelope is well sealed. This includes hiring an energy
advisor to review the drawings and prepare a report, as well as to conduct two blower door
tests to test air tightness and the preparation of a final report. The costs of this work is
approximately $1,500 to the applicant. Many of the Town’s builders are voluntarily going above
and beyond what is required at this time, achieving Step 4 in some cases.
There are significant rebates currently offered by Fortis which are attached to this report. This
includes $3,000 – $10,000 in rebates for reaching Step 2 to 5, plus additional rebates for hiring
energy advisors and installing energy efficient appliances. There are also additional design
rebates up to $7,000 per detached home and up to $50,000 for multi-family projects. Given
that Fortis is providing generous rebates, it is not recommended that the Town provide any
additional rebates at this time.

The majority of neighbouring municipalities have began consulting with their builders about the
new Step Code, with several implementing various levels of the Step Code. For example,
Penticton required that all Part 9 residential buildings achieve Step 1 on March 15, 2019 and
Step 3 on January 1st, 2021.

The impending implementation of Step 3 of the BC Energy Step Code has encouraged Staff to conduct a full review of existing Building Bylaw 1140 which been in effect since 2006. Staff reached out to MIABC who provided a draft core building bylaw that is recommended to be used by all municipalities in BC. This core bylaw was created over several years by lawyers with a focus on reducing claims against municipalities. Staff reviewed the core bylaw and made minor changes to make it specific for Oliver.

The major changes between the current bylaw and the proposed bylaw are as follows:

• The new bylaw will see the implementation of Level 1 of the BC Energy Step Code for all buildings on July 1st, with the implementation of the mandatory Level 2 and 3 by the Province in 2022.

• The new bylaw will see two (6-months) extensions, rather than three (4-month) extensions for building permits. This will reduce administrative steps.

• The new bylaw will allow for provisional occupancy in some cases where all health and safety items have been addressed and the owner is wishing to move in early.

• The new bylaw will have a significantly lower permit fee reduction for the hiring of an registered professional. This includes a 5%reduction vs the 30% discount offered under the current bylaw.

Overall, Staff consider that the proposed bylaw will not only help to improve energy efficiency in local buildings but the bylaw will also be updated to best practices in the Province for limiting
liability and risk to the Town.

PUBLIC PROCESS:

In November of 2020, the Town held a Builder’s Breakfast Meeting, sponsored by Fortis BC.
Fourteen contractors attended the breakfast with a total of eleven surveys being completed. Of
the responses, the majority wanted future training for marketing energy efficient homes, new
technologies, hands-on training (eg blower door demonstrations, demonstration wall
assemblies) and new construction techniques. The majority of builders feel that reaching Step 1
is feasible. The summary report completed by the Community Energy Association has been
attached to this report.