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Canadian Heat Pump Hub Team
HVAC Research & Analysis
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Last Updated
February 16, 2026
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Read Time
9 min read

BC Step Code City Tracker: Municipal Adoption Levels (2026)

British Columbia gives individual municipalities the authority to adopt energy and carbon requirements above the provincial baseline. The result is a fragmented regulatory landscape: a new-construction project in Vancouver faces entirely different mechanical compliance obligations than the same project in Kamloops — even though both are governed by the BC Building Code.

This tracker documents current Step Code adoption levels for key BC municipalities as of early 2026. Always confirm the current requirements with your Authority Having Jurisdiction (AHJ) before finalizing any design. Requirements change frequently and without provincial announcement.


The Two-Track Audit Framework

Before reading the table, understand that BC's building compliance system targets two separate — but related — outcomes:

Track 1: Envelope Performance (BC Energy Step Code / BCESC) The BCESC measures how efficiently a building holds heat. The key metric is TEDI — Thermal Energy Demand Intensity (kWh/m²/year): a lower TEDI means the building envelope does more work, reducing the load on mechanical systems.

Steps 1–5 represent progressively tighter TEDI limits. Step 5 is "net-zero energy ready" — the envelope is so efficient that a modest mechanical system can handle the entire heating load.

Track 2: Fuel Source (Zero Carbon Step Code / ZCSC) The ZCSC targets what fuel the mechanical system burns. The key metric is GHGI — Greenhouse Gas Intensity (kgCO₂e/m²/year): a lower GHGI means less carbon emitted per unit of floor area heated.

The four Emission Levels (EL-1 through EL-4) set progressively tighter GHGI caps:

  • EL-1: Measure and report only. No cap. Gas equipment fully permitted.
  • EL-2: Moderate GHGI cap. Gas heating permitted but must be limited.
  • EL-3: Tight GHGI cap. Heat pump required as primary; minimal gas backup only.
  • EL-4: Near-zero GHGI. No fossil fuel combustion for space heating. Heat pump mandatory.

The third metric — MEUI (Mechanical Energy Use Intensity) — bridges both tracks. MEUI measures the total energy consumed by all mechanical systems (heating, cooling, domestic hot water, ventilation) per square metre per year. A building with a great envelope (low TEDI) but an inefficient boiler (high MEUI) still fails BCESC. MEUI captures the efficiency of the equipment itself, not just the heat demand it serves.

The Core Insight for Mechanical Designers

TEDI tells you how big the heat pump needs to be. GHGI tells you what fuel it can use. MEUI tells you how efficiently it has to run. A project that optimizes all three — with a high-performance envelope, an all-electric heat pump, and a high-COP unit — clears every compliance threshold in every BC municipality, including EL-4.


Municipal Adoption Tracker

Last updated: February 2026. Requirements change without notice — verify with the applicable AHJ.

MunicipalityBC Energy Step CodeZCSC Emission LevelGas Heating Permitted?Notes
City of VancouverStep 5EL-4 (Zero Carbon)NoZero Emissions Building Plan (ZEBP). Combustion prohibited for space heating and DHW in new builds.
District of SaanichStep 3EL-4 (Zero Carbon)NoEarly EL-4 adopter on Vancouver Island. All-electric mechanical required.
City of VictoriaStep 3+EL-4 (Zero Carbon)NoCity of Victoria Climate Leadership Plan. Confirm current Step with AHJ.
City of North VancouverStep 3EL-3LimitedEL-3 allows heat-pump-primary with minimal gas backup if GHGI cap is met. Escalating — confirm current level.
BurnabyStep 3EL-2 (Moderate)LimitedDual-fuel hybrid may comply at EL-2. Gas must be secondary and GHGI-modelled.
RichmondStep 2EL-2 (Moderate)LimitedLower BCESC step than Burnaby, same EL-2 ZCSC cap. Gas backup typically viable.
SurreyStep 3EL-1 (Measure Only)YesBCESC Step 3 required. No GHGI cap enforced — gas heating fully permitted with reporting.
KelownaStep 3EL-2 (Moderate)LimitedInterior municipality at EL-2. Heat-pump-primary systems strongly preferred.
KamloopsStep 2EL-1 (Measure Only)YesNo GHGI cap. Gas heating fully permitted. Cold-climate HP specification still advisable.
Prince GeorgeStep 1–2EL-1 (Measure Only)YesNorthern BC baseline. No GHGI constraint. Heat pump adoption driven by operating economics, not regulation.
Penticton / VernonStep 2EL-1 (Measure Only)YesInterior Okanagan baseline. Voluntary adoption ahead of likely escalation.
NanaimoStep 2EL-1 (Measure Only)YesVancouver Island; has not adopted ZCSC above provincial baseline as of early 2026.

Reading the Table: What Each Column Actually Means

BC Energy Step Code — This drives your envelope specification. Step 3 requires better insulation and air sealing than Step 2. Step 5 requires near-Passive House envelope performance. The step required by your AHJ sets your TEDI target, which in turn determines how large your heat pump needs to be.

ZCSC Emission Level — This drives your mechanical fuel choice. EL-1 imposes no GHGI cap — a gas furnace is unrestricted. EL-4 caps GHGI at near-zero, prohibiting combustion for space heating. EL-2 and EL-3 fall in between, allowing gas only if a GHGI model demonstrates compliance.

Gas Heating Permitted — A practical summary of the mechanical implication. "Limited" means gas may be used as a minor peak-load backup if a GHGI model confirms the cap is not exceeded with the as-designed system. This is not a blanket permission — it requires engineering documentation.


The Compliance Gap: Step Code vs. Retrofit Reality

A critical nuance: Step Code requirements apply to new construction permits, not typically to retrofits of existing buildings.

A homeowner in Vancouver retrofitting an oil furnace to a heat pump is not legally required to comply with ZCSC EL-4 — they are responding to operating economics, CleanBC rebates, and OHPA incentive structure.

However, the direction of travel is clear:

  • New builds in EL-4 cities are already all-electric — no choice.
  • Strata buildings in Metro Vancouver face the EPR deadline (Dec 31, 2026) which pushes collective electrical capacity planning regardless of retrofit mandate.
  • As EL levels escalate across more municipalities, voluntary early adoption becomes increasingly financially rational — rebate programs are most generous while equipment costs are still declining.

The retrofit market and the new construction market are converging. Heat pump contractors who understand Step Code compliance — even for retrofit work — are positioning for the commercial and multi-family work that follows.


How This Affects Heat Pump Sizing in Practice

The relationship between BCESC step and heat pump tonnage is not linear — it depends on your specific building. But the directional relationship is consistent:

BCESC StepTEDI RangePeak Load at -5°C (1,500 sf example)Heat Pump Sizing
Step 1 (baseline)60–80 kWh/m²/yr~25,000–30,000 BTU/hr2.5-ton system
Step 330–45 kWh/m²/yr~15,000–20,000 BTU/hr1.5-ton system
Step 5 (NZE-ready)10–20 kWh/m²/yr~6,000–10,000 BTU/hrSingle 9,000 BTU head

A Step 5 build in Vancouver that requires only a 9,000 BTU unit has a lower capital cost for the heat pump than a Step 1 build requiring 30,000 BTU — partially offsetting the premium paid for the better envelope.


MEUI: The Metric That Ties Both Tracks Together

MEUI (Mechanical Energy Use Intensity, kWh/m²/year) captures total mechanical system energy consumption. It is the bridge between TEDI and GHGI:

  • TEDI → MEUI: A building with lower TEDI demands less heating energy from the mechanical system. This reduces MEUI directly.
  • MEUI → GHGI: A building heating with a heat pump at COP 3.0 converts 1 kWh of electricity into 3 kWh of heat. A gas furnace at 80% efficiency converts 1 kWh of gas into 0.8 kWh of heat — and emits carbon. The same MEUI value results in a dramatically different GHGI depending on whether the fuel is electricity or gas.

This is why the BCESC and ZCSC are complementary, not duplicative: the BCESC minimizes how much energy you need; the ZCSC ensures that energy is clean.

For Step Code compliance modelling, your energy consultant will build a whole-building energy model (typically using EnergyPlus or HOT2000) that calculates TEDI, MEUI, and GHGI simultaneously against the applicable targets.


Next Steps

Disclaimer

Municipal Step Code adoption levels change frequently and without provincial announcement. The data in this tracker represents our best understanding as of early 2026 and is provided for educational purposes only. Always confirm current BC Energy Step Code and Zero Carbon Step Code requirements directly with the applicable Authority Having Jurisdiction (AHJ) before finalizing any building design or permit application. This guide does not constitute engineering advice, legal advice, or a compliance determination.