The 2026 BC Step Code: What Homeowners & Builders Need to Know
British Columbia's building code now operates on two parallel compliance tracks: an energy efficiency track and a carbon emissions track. If you are building, renovating, or specifying mechanical systems in BC in 2026, both tracks affect which heating equipment is compliant — and increasingly, both tracks point to the same answer.
Two Codes, One Building
BC Energy Step Code (BCESC): Measures how efficiently a building uses energy. Steps 1–5, where Step 5 is net-zero energy ready. The primary metric is TEDI — Thermal Energy Demand Intensity.
Zero Carbon Step Code (ZCSC): Measures how much carbon a building emits from its mechanical systems. Four Emission Levels (EL-1 through EL-4), where EL-4 prohibits fossil fuel combustion for space heating. The primary metric is GHGI — Greenhouse Gas Intensity.
These are additive requirements. A new build must meet both the energy step and the emission level mandated by its local authority (AHJ — Authority Having Jurisdiction).
The Zero Carbon Step Code: 4 Emission Levels
EL-1 — Measure and Report (Baseline)
The provincial default for municipalities that have not adopted a higher level. Buildings must measure and report their GHG intensity (kgCO₂e/m²/year) but are not capped on emissions. Gas furnaces and boilers are fully permitted.
Who is here: Most smaller BC municipalities and rural jurisdictions in 2026.
EL-2 — Moderate Limits
A cap on GHGI is introduced. Gas heating is still permitted but must be offset or limited in scope. Some high-use gas equipment (e.g., large boilers without condensing recovery) begins to fail compliance. Dual-fuel hybrid systems are typically compliant at EL-2.
Mechanical implication: Designers begin favouring heat-pump-primary systems with minimal gas backup.
EL-3 — Strong GHG Limits
The GHGI cap is tight enough that most gas-dominant systems fail. Heat pump systems with a minor gas or propane backup stage can still comply if the backup is sized to operate below the emission threshold. All-electric heat pumps comply comfortably.
Mechanical implication: Heat pump is effectively required as the primary heating source. Gas can remain as peak-load backup only if GHGI stays under the cap.
EL-4 — Near-Zero Carbon (Zero Combustion for Heating)
No fossil fuel combustion is permitted for space heating or domestic hot water in most residential and commercial building types. An all-electric heat pump (air source, ground source, or air-to-water) is the only compliant mechanical path for space heating.
Who is here: City of Vancouver (all new construction since 2022), District of Saanich, City of North Vancouver, and a growing list of Metro Vancouver municipalities. Confirm current EL adoption with your AHJ before designing mechanical systems.
Pro Tip: Confirm with Your AHJ
Municipal adoption of ZCSC levels is not static. Vancouver and Saanich are at EL-4 today, but other municipalities are escalating their requirements annually. Always confirm the current EL requirement with your AHJ (local building department) before finalizing mechanical specifications. A permit submission designed for EL-2 will be rejected in an EL-4 jurisdiction.
What TEDI Actually Means for Your Heat Pump
TEDI — Thermal Energy Demand Intensity — measures how many kilowatt-hours of heating energy a building demands per square metre per year (kWh/m²/year). A well-insulated, airtight building has a low TEDI.
Why it matters for heat pump sizing: A building with a low TEDI loses heat slowly. That means the peak heating load (the coldest night scenario used to size the mechanical system) is lower than an equivalent building with poor insulation. A lower peak load means a smaller — and less expensive — heat pump can meet the design requirement.
| BCESC Step | Typical TEDI Range | Heat Pump Sizing Impact |
|---|---|---|
| Step 1–2 (baseline) | 50–80 kWh/m²/year | Heat pump sized for full design load |
| Step 3 | 25–45 kWh/m²/year | HP can be 15–25% smaller |
| Step 4–5 | 10–25 kWh/m²/year | HP significantly smaller; may allow single-zone coverage of multi-zone home |
The practical result: A Passive House–adjacent Step 5 build in Vancouver may need only a 9,000 BTU ductless unit to heat 1,800 square feet. The same floor area in an older 2×4 construction at Step 1 might need 36,000 BTU. The envelope investment comes back through mechanical cost reduction.
Municipal Step Code Requirements in BC (2026 Reference)
| Municipality | BCESC | ZCSC (EL) | Gas Heating Permitted? |
|---|---|---|---|
| City of Vancouver | Step 3+ | EL-4 | No — space heating must be all-electric |
| District of Saanich | Step 3 | EL-4 | No — space heating must be all-electric |
| City of North Vancouver | Step 3 | EL-3/EL-4 | Limited — confirm with AHJ |
| Burnaby | Step 2+ | EL-2/EL-3 | Partially — dual-fuel may comply |
| Surrey | Step 2 | EL-1/EL-2 | Generally yes |
| Kelowna | Step 2 | EL-1 | Yes |
| Kamloops | Step 1/2 | EL-1 | Yes |
| Victoria (City) | Step 3 | EL-3 | Limited |
Confirm all requirements directly with the applicable building department. Requirements change frequently.
What This Means for Homeowners
New builds in EL-4 municipalities (Vancouver, Saanich): Your builder is legally required to install an all-electric heat pump for space heating. You do not have the option to specify gas. This is the single largest driver of heat pump adoption in Metro Vancouver right now.
Retrofits and existing buildings: Step Code requirements apply at permit issuance for new construction or major renovation. A standard retrofit heat pump installation on an existing building is not directly governed by ZCSC — but the EPR deadline for Metro Vancouver stratas (Dec 31, 2026) pushes strata buildings toward Step Code compatibility regardless.
Rebate intersection: CleanBC Better Homes rebates are designed to accelerate exactly the EL-3/EL-4 transition. OHPA (for oil-heated homes) and the CleanBC incentives are both most generous for full-electric heat pump conversions — aligning financial incentives with regulatory direction.
What This Means for Builders
Mechanical compliance is now a design-stage decision, not a last-minute specification. In EL-4 jurisdictions, your mechanical engineer must certify that no combustion appliance is used for space heating. This means:
- Heat pump confirmed at design stage — typically air-source or ground-source
- TEDI target drives envelope design — insulation and air sealing specified to achieve the Step required
- GHGI must be modelled — not just designed; actual compliance documentation required for permit
- Dual-fuel hybrids require careful analysis — the gas backup stage must not push GHGI over the EL cap
Compliance Is Not Optional in EL-4 Jurisdictions
A building permit application in Vancouver that specifies a gas furnace for space heating will be rejected. The City of Vancouver's Zero Emissions Building Plan (ZEBP) has been in effect since 2022. Mechanical designs that ignore ZCSC create permit delays, redesign costs, and potential occupancy holds. Model compliance before drawing the mechanical plan.
Is Your Project Step Code Compliant?
The most common compliance error is designing a mechanical system in isolation from the envelope performance target. If your TEDI is higher than the Step requires, your heat pump is oversized and expensive. If your GHGI model assumed EL-2 and the AHJ requires EL-4, your permit will fail.
Both types of error are avoidable with early mechanical consultation.
Next Steps
- BC Step Code City Tracker — Municipality-by-Municipality Adoption Table
- Strata Approval Roadmap — EPR, Duty to Accommodate, and the EL-4 Timeline
- Dual-Fuel vs. All-Electric — When EL-3 Allows a Gas Backup Stage
- Heat Pump Installation Costs in BC — Step Code Premium Explained
- Connect with a Technical Specialist for Compliance Review
- Browse Verified BC Heat Pump Installers
Disclaimer
This guide provides a general educational overview of the BC Energy Step Code and Zero Carbon Step Code as of early 2026. Building code requirements vary by municipality and are updated regularly. Confirm all energy step and emission level requirements with the applicable Authority Having Jurisdiction (AHJ) before finalizing any building or mechanical design. This guide does not constitute engineering advice, legal advice, or a compliance determination. Always engage a qualified mechanical engineer and energy modeller for Step Code compliance documentation.