BC Energy Step Code Timeline: 2017 to 2027

Key takeaway: Step 3 became mandatory for all new Part 9 buildings in 2023. Step 4 is expected 2027. Builders who have not built to Step 4 yet should start now. The performance jump from Step 3 to Step 4 is significant, and the learning curve on air sealing alone takes a few projects.

The BC Energy Step Code is a performance-based framework that incrementally raises energy efficiency requirements for new buildings. Understanding the timeline helps builders plan ahead rather than scramble when new requirements take effect.

The Full Timeline

2017: Step Code Introduced (Voluntary)

The Province of BC introduced the Energy Step Code as a voluntary compliance pathway in the BC Building Code. Municipalities could adopt individual step levels as local requirements, but no step level was mandatory province-wide.

Key details:

• Five step levels for Part 9 residential (Step 1 through Step 5)
• Step 1 was equivalent to the existing code baseline
• Step 5 represented net-zero-ready performance
• Performance targets included TEDI, MEUI, and airtightness (ACH50)
• Municipalities given authority to adopt higher steps locally

The intent was clear: give the industry time to build capacity before making higher performance mandatory. Early adopters got a head start.

2018-2022: Early Municipal Adoption

Several municipalities moved ahead of the province and adopted Step Code requirements before any provincial mandate:

Vancouver (2018):

• First major city to adopt Step Code requirements
• Required Step 2 for Part 9, escalating annually
• Reached Step 3 by 2022
• Vancouver’s early adoption made it the testing ground for Step Code construction

Whistler (2018):

• Adopted aggressive Step Code targets early
• Mountain climate (CZ7) made high-performance building a practical necessity
• Required Step 3 by 2020, pushing toward Step 4 ahead of most municipalities

City of North Vancouver (2019):

• Step 3 requirement implemented
• Coastal climate (CZ4) made compliance relatively achievable

Victoria (2020):

• Required Step 3 for new residential construction
• Mild CZ4 climate supported rapid adoption

Kelowna (2021):

• Adopted Step Code requirements ahead of provincial mandate
• CZ5 climate presented different challenges than coastal municipalities
• Local builders began learning about heat pump systems and improved air sealing

During this period, builders in non-adopting municipalities could still build to code baseline (effectively Step 1). The performance gap between a baseline home in Kamloops and a Step 3 home in Vancouver was growing wider.

2023: Step 3 Becomes Mandatory Province-Wide

The Province updated the BC Building Code to require Step 3 as the minimum for all new Part 9 residential buildings across BC. This was the first province-wide mandate.

What Step 3 requires:

• ACH50: 2.5 (airtightness testing mandatory)
• TEDI: Approximately 50 kWh/m²/yr in CZ5
• MEUI: Approximately 55 kWh/m²/yr in CZ5
• Blower door test: Required for every unit
• Energy model: Required (HOT2000 by a registered energy advisor)

For builders who had already been working in municipalities with Step Code requirements, this was not a significant change. For builders in smaller communities and rural areas who had been building to baseline code, the jump was substantial:

• First time engaging an energy advisor
• First time paying for blower door testing
• First time being held to an ACH target
• HRV installation became standard practice
• Basic air sealing attention required (sealing plates, penetrations, transitions)

At 2.5 ACH50, Step 3 is achievable with careful manual air sealing. Most builders can hit this target with caulking, foam, and tape if the crew is attentive and the building is not overly complex.

2024-2026: Step 3 Normalization and Step 4 Preparation

The current period. Step 3 is now the norm, and the industry is building toward the next jump.

What is happening now:

• Builders are getting comfortable with energy advisors, blower door tests, and HRVs
• Material suppliers have standardized Step 3 insulation packages
• Heat pump adoption is increasing, driven by FortisBC rebates and falling equipment costs
• Municipalities like Vancouver and Whistler have already pushed to Step 4 or equivalent
• Builders working on Step 4 projects are developing air sealing workflows

The biggest difference between Step 3 and Step 4:

Metric	Step 3	Step 4	The Gap
ACH50	2.5	1.5	40% tighter
TEDI (CZ5)	~50 kWh/m²/yr	~35 kWh/m²/yr	30% lower
MEUI (CZ5)	~55 kWh/m²/yr	~40 kWh/m²/yr	27% lower

The ACH target drop from 2.5 to 1.5 is the most challenging aspect. At 2.5, you can get there with attention to detail. At 1.5, you need a robust air sealing strategy, and for most builders, that means considering aerosol sealing.

Expected 2027: Step 4 Province-Wide

Step 4 is expected to become the provincial minimum in 2027. The Province has signaled this timeline through policy documents and industry consultations. While the exact date and implementation details may shift, the direction is clear.

What Step 4 will require:

• ACH50: 1.5 (a significant jump from 2.5)
• TEDI: Approximately 35 kWh/m²/yr in CZ5
• MEUI: Approximately 40 kWh/m²/yr in CZ5
• Heat pump: Effectively required to meet MEUI in most climate zones
• HRV: 75%+ SRE (higher efficiency than Step 3 minimum)
• Continuous exterior insulation: Required in most wall assemblies to meet TEDI

The air sealing requirement at 1.5 ACH50 is where most builders will feel the biggest impact. This target requires:

• Meticulous attention to every penetration, joint, and transition
• Pre-drywall testing recommended (catch problems before they are buried)
• Aerosol sealing becoming the standard approach for consistent results
• Energy advisor engagement at the design stage, not after framing

Beyond 2027: The Path to Step 5

The Province has indicated that the Step Code will continue to escalate toward Step 5 (net-zero-ready) performance, though no specific date has been set for a Step 5 mandate.

Step 5 targets:

• ACH50: 1.0
• TEDI: Approximately 15 kWh/m²/yr in CZ5
• MEUI: Approximately 25 kWh/m²/yr in CZ5

At Step 5, buildings approach Passive House-level performance. Triple-pane windows, R-32 to R-40+ walls, high-efficiency HRVs (85%+), and heat pump systems are standard. Air sealing at 1.0 ACH50 or below requires aerosol sealing on virtually every project.

The timeline for Step 5 will depend on industry readiness, cost trajectories, and political will. Most industry observers expect a 2030-2032 timeframe, but this is speculative.

What This Means for Project Planning

If you are planning a project today, here is how the timeline affects your decisions:

Projects breaking ground in 2026:

• Must meet Step 3 minimum
• Should seriously consider building to Step 4 voluntarily to capture FortisBC rebates ($9,000 to $15,000 at Step 4 vs $3,000 to $5,000 at Step 3)
• Step 4 builds now reduce risk of future compliance requirements affecting marketability

Projects breaking ground in 2027:

• Will likely need to meet Step 4
• Permit timing matters: a permit pulled in late 2026 might be grandfathered at Step 3, but check with your local building department
• Do not count on grandfathering. Plan for Step 4.

Long-term development planning:

• Multi-phase developments should plan for Step 4 on all phases
• Consider Step 5 readiness in mechanical and structural design for projects with 3+ year horizons
• Land acquisitions should factor in the cost of compliance at the step level expected at build time

The Learning Curve

Each step level has a learning curve. Builders who went through the Step 3 learning curve in 2022-2023 will remember the first few projects where blower door tests were a new experience and energy advisor coordination felt unfamiliar.

The Step 4 learning curve is steeper:

• Air sealing at 1.5 ACH50 is fundamentally different from 2.5 ACH50
• Heat pump system design requires new HVAC partnerships
• Energy models become more sensitive to details (window specs, thermal bridging, HRV efficiency)
• Pre-drywall testing becomes important for catching problems early

Builders who start Step 4 projects now, before the mandate, have the advantage of time. If a blower door test fails, there is time to adjust and retest. Once Step 4 is mandatory, every failed test is a schedule delay and a budget hit.

Use the rebate calculator to see how Step 4 rebates offset the incremental cost. For many builds, the math already works today.