Overview

Project Overview:

The City of Nelson is considering updates to its Building Bylaw to improve the energy efficiency and reduce greenhouse gas emissions from new buildings.

These proposed changes align with provincial frameworks such as the BC Energy Step Code and the BC Zero Carbon Step Code. Together, these programs help communities gradually increase building performance so that new buildings use less energy and produce fewer emissions over time.

Why this project is happening?

Why this project is happening?

Buildings are one of the largest sources of energy use and greenhouse gas emissions in many communities. Improving the efficiency of new buildings helps:

  • Lower long-term energy costs for residents
  • Reduce greenhouse gas emissions
  • Support the City’s climate commitments
  • Ensure new construction keeps pace with evolving provincial standards

Since the Step Code was introduced in 2017, the City of Nelson has been an early adopter of higher building performance requirements.

What is proposed?

What is being proposed?

Updates to the Building Bylaw that would gradually increase performance requirements for Part 9 buildings. These typically include low-rise residential buildings such as single-family homes, duplexes, townhouses, and small apartment buildings.

The proposed timeline is:

December 31, 2026

  • New Part 9 buildings must meet Energy Step Code Step 4
  • New buildings must also meet Zero Carbon Step Code Emissions Level 3 (EL-3)

December 31, 2028

  • New Part 9 buildings must meet Zero Carbon Step Code Emissions Level 4 (EL-4)
  • Energy Step Code Step 4 would remain in place.

This phased approach gives builders, designers, and homeowners time to adapt to higher performance standards.

What is not changing right now

The proposed bylaw amendments do not currently change requirements for larger buildings (Part 3 buildings) such as larger apartment buildings or commercial structures.

Because these buildings are more complex and use different compliance pathways, City staff plan to return in 2027 with potential options after additional local data and engagement.

Provincial context

The Province of British Columbia has already set minimum performance requirements for new buildings through the BC Building Code. Currently:

  • New Part 9 residential buildings must meet at least Energy Step Code Step 3.
  • New Part 3 residential buildings must meet at least Step 2.
  • Since March 10, 2025, most new buildings must also comply with Zero Carbon Step Code Emissions Level 1, which requires modelling and reporting of operational greenhouse gas emissions.

Municipalities can choose to adopt higher steps over time to meet local climate goals.

Why Nelson?

Why Nelson?

Nelson has consistently been a leader in advancing building performance requirements since the introduction of the Step Code and has climate commitments that support reducing operational emissions from new buildings. City of Nelson Bylaw current bylaw requirements for Part 9 are:

current nelson

What We Heard

What local builders and designers told us

To make sure the proposed changes reflect local realities, City staff spoke directly with members of the Nelson building community, including builders, designers, and energy advisors. These conversations provided practical insights into:

  • How ready the local market is for higher building performance
  • What challenges might come up during implementation
  • Ways the City can simplify processes and reduce confusion

Key themes from these discussions include:

  • Support for better-performing buildings: Most participants agreed that improving energy efficiency and reducing emissions is important. They also emphasized the need for clear timelines and predictable rules so projects can be designed correctly from the start.
  • Clarity on the “stepped” approach: While the stepped approach helped the building community transition when the Step Code was first introduced, some participants said it has caused confusion with multiple options.
  • Familiarity with standards: Local builders are generally comfortable with Step 4 of the Energy Step Code, but fewer are familiar with the Zero Carbon Step Code. The City held a workshop to answer questions about Zero Carbon requirements.
  • Electricity capacity: Builders raised concerns about the local electrical system under an electrification pathway. Nelson Hydro confirmed there is enough capacity through at least 2030. Stakeholders also noted that energy-efficient homes, with better insulation and airtightness, help reduce future electricity demand and peak loads.
  • Support for moving forward: Overall, the building community supports advancing both the Energy Step Code and the Zero Carbon Step Code, especially if the City provides a clear implementation schedule and simple processes.

What this means for building costs

A common concern when increasing building performance is the potential impact on construction costs and housing affordability. While Nelson does not yet have a local cost study for Step 4 or Zero Carbon requirements, provincial studies provide useful insights:

  • For low-rise residential buildings (single-family homes, duplexes, townhouses, small multi-unit buildings), moving to higher energy performance usually results in modest costs, especially if energy efficiency is considered early in design and builders can choose the most cost-effective solutions.
  • Case studies across BC show that energy-efficient homes do not have to cost more than standard code-compliant homes, particularly when projects use integrated design and avoid last-minute changes.
  • For Zero Carbon EL-4 requirements, provincial modelling found construction cost impacts ranging from a small cost savings (0.1%) to a modest increase (2.2%), depending on building design and systems.

Overall: For local Part 9 residential construction, higher energy efficiency and zero-carbon requirements are generally cost-neutral or modest in impact, and in some cases may even reduce costs—particularly when electric systems and energy-efficient design are used from the start.

Learn about the BC Energy Step Code

The BC Energy Step Code is a provincial regulation introduced in 2017 to improve energy efficiency in new buildings across British Columbia. Its goal is to support more comfortable, healthier, and energy‑efficient homes and buildings, while helping communities reduce energy use and greenhouse gas emissions over time.

The Step Code is made up of a series of “steps”. Each step represents a higher level of energy performance. Together, these steps provide a clear pathway toward net‑zero energy‑ready buildings.

Local governments, including the City of Nelson, can choose which step to apply in their community based on local priorities, climate, and housing needs. As long as they meet the code minimum or higher at any given time.

Before construction, a qualified energy advisor completes a ‘pre-construction energy compliance report’ that evaluates the building envelope, mechanical systems, and overall energy demand. This model demonstrates how the proposed design meets the required Step Code level.

During construction, the building is constructed in accordance with the pre-construction compliance report to achieve the modelled performance targets.

Before occupancy, an on-site airtightness test is completed to verify that the building performs as intended; windows and mechanical systems are checked to confirm energy efficiency, comfort, and compliance with the Step Code.

Before occupancy is granted on the building, an “as built energy compliance report” is produced by the energy advisor demonstrating compliance.

The BC Energy Step Code is valuable for our community by creating energy-efficient, comfortable buildings that will serve residents well today and into the future, while reducing building-related operational emissions and further aligning with Nelson Next targets.

Learn about BC Zero Carbon Step Code

The Zero Carbon Step Code is a provincial requirement designed to reduce or eliminate carbon emissions from new buildings by addressing emissions associated with energy sources used for heating, cooling, and hot water. It encourages the use of low-carbon mechanical systems and energy sources to support building decarbonization.

The Zero Carbon Step Code uses a four‑step, tiered approach, called Emission Levels (ELs):

  • EL‑1: Measure Only
    Buildings must calculate and report their greenhouse gas emissions. No reductions are required at this step.
    (Provincial requirement since 2024)
  • EL‑2 & EL‑3: Moderate and Strong Performance
    Emissions limits are introduced, encouraging the use of lower‑carbon heating and hot water systems.

  • EL‑4: Zero Carbon
    Very low operational emissions, aligned with BC’s clean electricity system and long‑term climate goals.
    (Target by 2030)

Proposed new buildings must submit a pre‑construction compliance report prepared by a qualified Energy Advisor prior to the start of construction. The report identifies the required Emissions Level (EL) for the project’s location. After all building systems are installed, the Energy Advisor reviews the completed work and prepares an as‑built compliance report to confirm compliance and support building occupancy.

The Zero Carbon Step Code advances Nelson Next climate goals by reducing operational emissions from new buildings while continuing to support the construction of homes and buildings our community needs.

Where is Nelson in the Step Codes?

As of August 2023, the City of Nelson provides multiple compliance options to meet the BC Energy Step Code and Zero Carbon Step Code. Requirements vary by building type and are designed to offer flexibility while supporting energy efficiency and emissions reduction goals.

Part 3 vs. Part 9 - What's the Differences?
Part 9 -Simple Buildings Part 9 – Complex BuildingsPart 3 Buildings
Typical examples:
  • Single-family dwellings
  • Small residential buildings

These are smaller, straightforward buildings covered under Part 9 of the BC Building Code.

Typical examples:
  • Multi‑unit residential buildings
  • Small offices
  • Mixed‑use buildings

These buildings still fall under Part 9 but involve more complex layouts, systems, or uses.



Part 3 applies to larger or more complex buildings, including:
  • Residential, business and personal services, mercantile, and medium and low‑hazard industrial buildings over 600 m² or more than 3 storeys
  • All assembly occupancies
  • All care, treatment, and detention occupancies
  • All high‑hazard industrial occupancies

These buildings require more advanced design, typically by qualified professionals

  • Part 9 Buildings-Simple

    Option 1

    • BC Energy Step Code Step 4
    • Zero Carbon Step Code EL‑1

    Option 2 (Step‑Back Option)

    • BC Energy Step Code Step 3
    • Zero Carbon Step Code EL‑3

  • Part 9 Buildings-Complex

    Option 1

    • BC Energy Step Code Step 4
    • Zero Carbon Step Code EL‑2

    Option 2 (Step‑Back Option)

    • BC Energy Step Code Step 3
    • Zero Carbon Step Code EL‑3

  • Part 3 Buildings

    • Group A (Public Buildings):
      BC Energy Step Code Step 1
    • Group D & E (Business and Mercantile):
      BC Energy Step Code Step 3
      Zero Carbon Step Code EL‑2
    • Group C (Residential):
      BC Energy Step Code Step 3
      Zero Carbon Step Code EL‑2

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Mike Coen

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