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Permits & Compliance8 min read

BC Energy Step Code: What It Means for Your Custom Home

The BC Energy Step Code is the part of the BC Building Code that sets how energy-efficient a new house has to be. It measures the whole house, not individual parts. For a custom home outside Vancouver, Step 3 is the provincial minimum. An energy advisor models the design before the permit and tests the finished house for airtightness before occupancy.

Key takeaway. Since 1 May 2023, Step 3 has been the minimum for new Part 9 homes across BC. Steps 1 and 2 are reserved and no longer apply. Municipalities can require Step 4 or Step 5. A separate Zero Carbon Step Code caps emissions from heating and hot water, with EL-1 required province-wide since 10 March 2025. Surrey lists Step 3 and EL-1 for single-family homes. Vancouver has its own Building By-law. Confirm your city's rules before design starts.

How the Step Code Works

Before the Step Code, a house met the energy rules by ticking off individual parts: this much insulation in the walls, windows of a certain rating, a furnace of a certain efficiency. The Step Code replaced that with a performance target. The Province describes it as setting a performance outcome and leaving the design and building team to decide how to reach it.

In practice, that means three pieces of work on every Step Code home:

  1. An energy model before the permit. An energy advisor builds a digital model of the house from the drawings and shows it meets the target for the required step. That report goes in with the permit application.
  2. Airtightness testing. A blower door test measures how much air the house leaks. Some municipalities require one partway through construction. A final test is part of the as-built report.
  3. An as-built report before occupancy. The energy advisor confirms the finished house matches the model and hits its targets, and the city needs that report before it will grant occupancy.

The Province's BC Energy Step Code pages set out the path: every few years the minimum step rises, heading toward net-zero energy ready new buildings by 2032.

The Steps for Part 9 Homes

Part 9 of the BC Building Code covers houses and small buildings: generally up to three storeys and no more than 600 square metres of building area. A custom home almost always falls under Part 9.

StepStatus for a new Part 9 homeWhat it asks for
Steps 1 and 2Reserved since 1 May 2023 and no longer apply to new constructionNot applicable
Step 3Provincial minimum. Applies everywhere the BC Building Code applies, with no local bylaw neededEnergy model and airtightness test showing the house meets the Step 3 targets in the Code's energy performance tables
Step 4Optional. Local governments may require it by bylawTighter energy and airtightness targets than Step 3. Energy modelling and testing become mandatory, with no prescriptive alternative
Step 5Optional. Local governments may require it by bylawThe highest step, generally described as net-zero energy ready

The status column comes from the Province's Bulletin B23-01. It says Step 3 became the province-wide minimum on 1 May 2023 and that local authorities can still adopt Step 4 or higher. The 2024 BC Building Code sets the actual targets in Table 9.36.6.3.-G. It measures performance with two targets, a percentage reduction in heat loss and a percentage improvement in energy performance, and a house has to meet both. The 2024 Code also added new airtightness measures. The exact numbers depend on the size of the house and the climate zone, so your energy advisor reads them from the Code for your project rather than from a summary table.

One more point from the bulletin is worth knowing. A municipality can, by bylaw, let some Part 9 homes use the older prescriptive approach in place of modelling, mostly for rural areas without access to energy advisors. Where a city requires Step 4 or Step 5, that option is gone.

The Zero Carbon Step Code

The Zero Carbon Step Code was added in May 2023. It deals with emissions rather than efficiency, mainly from space heating, hot water and, in some cases, other gas appliances. The Province's Zero Carbon Step Code page and Bulletin B23-01 describe four levels:

LevelNameWhat it means in practice
EL-1Measure-onlyThe building's emissions are calculated and reported. Required for most new buildings since 10 March 2025
EL-2Moderate carbon performanceLikely to require decarbonizing either space heating or hot water
EL-3Strong carbon performanceRequires decarbonizing both space heating and hot water
EL-4Zero carbon performanceOperation as close to zero emissions as possible

For a custom home, the Zero Carbon Step Code level mostly decides one question: whether the heating and hot water can be gas. At EL-1 they can. At higher levels the answer is usually a heat pump. The Province notes that builders can work with energy advisors to see whether items like gas fireplaces, cooktops or dryers can still be included.

What Step Is Required in My City?

The Province sets the minimum and lets local governments require more, so the answer depends on your address and your permit application date. Here is what we could confirm from each city's own website.

Surrey. The City of Surrey's Step Code page lists Step 3 of the Energy Step Code and EL-1 of the Zero Carbon Step Code for Part 9 single-family homes. Surrey also requires a mid-construction blower door test for all Part 9 buildings before they can proceed to insulation inspection.

White Rock. The City of White Rock's Step Code page says new Part 9 building permit applications accepted after 1 May 2023 require an energy advisor. It also says three reports are needed: a pre-construction report with the permit application, a mid-construction airtightness report, and an as-built report. The page does not name a step above the provincial minimum. Unless the city tells you otherwise, plan for Step 3 and confirm with White Rock's building department before design is finalized.

Vancouver. The City of Vancouver issues permits under its own Vancouver Building By-law, not the BC Building Code. The by-law sets its own energy and emissions requirements for houses, and those are not simply a Step Code number. Confirm the current requirements with the city or your designer at the start of design.

For anywhere else, start with the municipality's building department. Ask which Energy Step Code step and which Zero Carbon level apply to a new single-family home at your permit date, and whether a mid-construction test is required.

What It Changes in the Design and Build

On a custom or high-finish home, most of what the Step Code asks for is specification you would have chosen anyway. That is why it tends to matter less here than on a budget build. It still changes how the house is put together:

Our luxury residential construction and custom home building teams bring the energy advisor in at design stage for this reason. A model run after the drawings are finished can only tell you what has to change.

Conclusion

The BC Energy Step Code sets how a new home performs, not how it is built. Step 3 is the provincial minimum, cities can require more, and the Zero Carbon Step Code decides how far the heating and hot water have to move away from gas. Surrey publishes Step 3 and EL-1 for single-family homes. White Rock requires an energy advisor and a mid-construction test. Vancouver runs its own by-law.

Bring the energy advisor in during design, confirm your city's requirements at your permit date, and treat airtightness as part of the build rather than a test at the end. If you are planning a custom home and want the energy requirements built into the design from the first drawing, Book a Consultation.

Frequently asked questions

What is the BC Energy Step Code?

It is the performance-based energy efficiency standard in the BC Building Code. Instead of prescribing insulation values for each part of the house, it sets a target for how the whole house performs. Compliance is shown through an energy model before the permit and an airtightness test on the finished house. Part 9 houses have five steps, and the province's stated path is to net-zero energy ready new buildings by 2032.

What step of the Step Code is required for a new house in BC?

Step 3 is the provincial minimum for Part 9 homes. Since 1 May 2023, Steps 1 and 2 have been marked reserved in the BC Building Code, and the Province's Bulletin B23-01 says Step 3 applies province-wide without any local bylaw. Local governments can require Step 4 or Step 5, so check your municipality.

What Step Code level does Surrey require?

The City of Surrey's Step Code page lists Step 3 of the Energy Step Code and Step 1 (EL-1) of the Zero Carbon Step Code for Part 9 single-family homes. Surrey also requires a mid-construction blower door test before a house can proceed to insulation inspection. Confirm with the city at application, because requirements are set by the permit date.

What is the Zero Carbon Step Code?

A companion standard added to the BC Building Code in May 2023 that limits greenhouse gas emissions from a building's heating and hot water systems. It has four levels, EL-1 to EL-4. The Province has required most new buildings to meet at least EL-1, which is measure-only, since 10 March 2025. Local governments can require higher levels.

Do I need an energy advisor to build a custom home?

Where the house is built to the performance requirements of the Step Code, which is the default for new Part 9 homes, yes in practice. An energy advisor models the design before the permit, runs the airtightness tests, and produces the as-built report the city needs before occupancy. Hire them during design, not after the drawings are done.

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