Roadmap to 2030 –Buildings PathwayStakeholder Engagement

August 4th, 2021

Land acknowledgment

Welcome

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Today’s Session

Purpose• Solicit your feedback on broad policy

levers under consideration for the buildings sector in the Roadmap to 2030

• Roadmap is expected to be released in Fall 2021, with a deadline for feedback mid-August

• Additional opportunities for engagement on the Existing Buildings Renewal Strategy will be held in Fall 2021

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Agenda

Time Agenda1:00 p.m. Welcome and orientation

1:10 p.m. Overview of BC buildings landscape and policy tools

1:40 p.m. Stakeholder feedback via World Café

2:40 p.m. Report Back2:55 p.m. Wrap Up3:00 p.m. Close

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How to Participate

• Right away!• Please show your first/last name and organization in the participant window

• During presentations/Q&A• Use the “Raise Hand” function to ask to unmute and speak• Feel free to use the “Chat” to add comments/questions

• During breakout groups• Keep your video on, if possible, we like to see you• Share your ideas via discussion and the MURAL platform• Allow everyone their fair share of airtime; use the “Raise Hand” function to speak

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Questions?

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Overview

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Regulation of the Building Sector

Federal Government

Academia/NGOs

Utilities, BC Housing

Industry, Housing

Providers and Managers

Local Governments

• Building regulation

• Equipment standards

• Programs

Province

Feedback

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CleanBC Refresh

Building energy efficiency requirements

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9 Proposed Pathways

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Current Commitments and Progress

Status Building Codes Equipment Standards Supporting Measures

Complete • BC Energy Step Code • New energy efficiency standards for residential windows, residential gas boilers and commercial gas boilers

• CleanBC incentives• BC Housing Design

Guidelines and Construction Standards

• Residential Tenancy Act provisions for additional capital expenditures

In Development • Voluntary carbon pollution standards for new construction (NC)

• 20% improvement in energy efficiency for NC (2022), 40% (2027), 80% (2032)

• Energy code for existing buildings (2024)

• New energy efficiency standards for water heaters (2025)

• Public sector leadership• Home energy labelling• Depreciation report

regulatory amendments

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Three Affordability Considerations

Direct impacts on construction (owners/developers)• Incremental capital cost of construction

• Cost recovery options for owners• Real estate valuation of higher quality construction may command higher price

Life-cycle impacts (owners/occupants)• Energy efficiency = lower energy bills & carbon tax = payback period

• “Split-incentive” prevents owners who pay for upgrades to benefit from lower bills

Risk-mitigation impacts (owners)• Adaptability of design (e.g., repurposing to reflect future market conditions)• Resilient design to mitigate acute events (e.g., preventing insurance claims from natural

hazards)• Adaptation to future chronic conditions (e.g., overheating)

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(1) Policy Lever – New Construction

BC Building Code (BCBC) Regulation of Carbon

• BCBC carbon pollution standard for new construction• Tiers of regulated maximum emission levels

• Build upon BC Energy Step Code – increasingly stringent requirements

• Designed with cost-justified energy efficiency standards• National Reconciliation Agreement on Construction Codes (RACC) applies

• Highest standard mandatory for new public sector buildings by 2027 and all new buildings by 2030

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(1) Policy Lever – New Construction (Cont’d)

Step TEDI TEUI GHGi (kg/m2)1: Learning Modelling + WBAT

ESC 2ModellingESC 2

Modelling

2: Cost-effective ESC 2 ESC 2 C1*3: Mid-level ESC 3 ESC 3 C2*4: Net-zero carbon A* B* Ultra-low carbon

• WBAT: whole-building airtightness testing• A: Optimized envelope efficiency, validated with financial analysis, 50 years, social DR%• B: Optimized total energy use intensity, validated with financial analysis, 30 years, social DR%• C1&C2: Based on techno-economic-market analysis – pathway to net-zero• Ultra-low carbon: maximized emission reductions within BC > 80% reduction

Example Carbon Pollution Standards – Part 3 MURB

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(1) Policy Lever – New Construction (Cont’d)

Carbon Emission Factors

• Electricity• Natural Gas• Blue Hydrogen• Green Hydrogen• Renewable Natural Gas• District Energy

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(2) Policy Lever – Existing Buildings

BCBC Regulation of Carbon

• Building Code triggered at time of repair, alteration, or tenant improvement• CleanBC 2024 commitment to align with emerging national codes• Improvements specific to areas of alteration; infrequently conducive to whole-

building standards• Equipment standards suitable for BCBC• Significant administrative considerations

• Energy efficiency, carbon pollution, adaptation and seismic complementary

• Alternative approach – WA-State Clean Buildings Act

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(2) Policy Lever – Existing Buildings (Cont’d)

Highest Efficiency Heating Equipment Standards - Energy Efficiency Standards Regulation (EESR) and BCBC

• Replacement* space and water heating meet energy efficiency level 100+% by 2035.

• Allow heat pumps (electric and gas), hybrid heat pump systems, electric resistance in some applications.

• In alignment with the Energy and Mines Ministers’ Conference aspirational target for energy efficient equipment in the building sector

• Regulatory mechanism may vary between ground-oriented residential and commercial/multi-unit residential buildings

*EESR will also apply to heating equipment purchased for new homes

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(3) Policy Lever – Energy Efficiency Programs

• Province responsible for the CleanBC Better Homes and Better Buildings program and regulatory framework for utility demand-side measures (DSM) programs

• EMLI Mandate: “Enhance energy efficiency programs and incentives for residential and commercial buildings…”

• CleanBC and utility DSM programs are designed to help households and businesses save energy, increase energy affordability, while driving GHG emission reductions and market transformation in advance of future codes and standards

• There are limited program dollars available to achieve these program objectives. What is the optimal mix of measures to put program expenditures to their highest and best use?

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(3) Policy Lever – Energy Efficiency Programs (Cont’d)

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Measures Energy Savings Energy Affordability GHG Reductions Market Transformation

Envelope improvements

Moderate-High Moderate-High Moderate-High High

Smart controls & energy management

Low-Moderate High Low-Moderate Moderate-High

Heat pumps (electric)

High Moderate High High

Heat pumps (gas) Moderate High Moderate High

Gas furnaces Low High Low Low

Gas boilers Low High Low Low

Gas water heaters

Moderate High Moderate Low-Moderate

Questions?

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Feedback

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We Want to Hear Your Thoughts

• We’ll break into three groups to discuss each of the policy levers:

New construction

Existing buildings

Energy efficiency programs

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(1) Key Questions – New Construction (BCBC Regulation of Carbon)

If such a policy were to be adopted:

Who would it impact and how? Think about specific building types, stakeholder groups, and vulnerable populations

• What are some of the benefits that it brings?

• What are some risks that you foresee?

• What are some key implementation considerations?

• How can we reconcile BC leadership and harmonization with national codes?

• Where does this policy allow for local government and Indigenous leadership?

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(2) Key Questions – Existing Buildings (Codes and Standards)

What is the optimal approach to decarbonizing existing buildings?

1. What are the trade-offs between the different approaches for existing buildings?• Regulating carbon in the BCBC at time of permit• Regulating highest efficiency heating equipment standards• Other regulatory approaches

2. Who would each option impact and how? Think about specific building types, stakeholder groups, and vulnerable populations• What are some of the benefits that it brings?• What are some risks that you foresee?• What are some key implementation considerations?• Where does this policy allow for local government and Indigenous leadership?

3. How can we consolidate multiple objectives of energy efficiency, carbon pollution and resilience?

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(3) Key Questions – Enhance Energy Efficiency Programs

What is the optimal mix of CleanBC and Utility DSM measures to achieve energy efficiency and climate goals?

• What are some of the benefits that this mix may bring?

• What are some risks that you foresee?

• What are some key implementation considerations?

• Are there some measures that should be prioritized over others?

• Where do these changes allow for local government and Indigenous leadership?

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For All Three Policy Levers

Consider the following risks/benefits: Emissions reduction outcomes Addressing issues of equity and affordability Administrative ease/burden for compliance Technologies and technical considerations Economic considerations Climate resilience Other goals (e.g. seismic resilience)

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How to Participate

• Take a moment to think and add your thoughts to the MURALo Facilitators will help guide you through the exerciseo Province of BC reps will answer any questions they cano Make sure to capture your idea on a sticky note!

• You’ll cycle through each of the 3 topics• Start on the topic that corresponds to your group number• Stay with your group, a new facilitator will join you for each topic

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How to Participate

• Using MURAL• Open in the Google Chrome browser for best functionality• Select your “zoom” preference in the bottom right-hand corner• Zoom in or out as needed; your view is your own• Add sticky notes by double clicking on the board

• During breakout groups• Keep your video on, if possible, we like to see you• Allow everyone their fair share of airtime; use the “Raise Hand” function to speak

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Summary

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Summary

• What were some of the main themes that came out of the discussion on this policy lever?

• What were some of the key opportunities and concerns highlighted?

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Further Opportunities for Engagement

Additional opportunities to provide feedback:

• The Province will accept related feedback until Monday August 9th, 2021

• Written comments can be sent by email to Nicole.Vukosavljevic@gov.bc.ca orusing the MURAL link that will be distributed following this session

• Additional opportunities for engagement on the Existing Building Renewal Strategy will be held in the fall

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Roadmap to 2030 –Buildings PathwayStakeholder Engagement

August 4th, 2021