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2024-05-28 Council Workshop Agenda and Reports.pdf
1.CALL TO ORDER 1.1 Territory Acknowledgement The City of Maple Ridge carries out its business on the traditional and unceded territories of the Katzie (q̓ic̓әy̓) First Nation and the Kwantlen (qʼʷa:n̓ƛʼәn̓) First Nation. 2.APPROVAL OF THE AGENDA 3.MINUTES 3.1 Adoption of Minutes – May 14, 2024 4.PRESENTATIONS AT THE REQUEST OF COUNCIL 5.UNFINISHED AND NEW BUSINESS 5.1 Zero Carbon Step Code Staff report dated May 28, 2024, providing an overview of both BC Energy Step Code and Zero Carbon Step Code, and a proposed implementation pathway. RECOMMENDATION: That Council direct staff to bring forward an amendment to the Maple Ridge Building Bylaw No. 69252012 for adoption of the EL3 of the Zero Carbon Step Code for all residential buildings to be in effect on July 1, 2025. 5.2 Climate Lens Assesment Framework Staff report dated May 28, 2024, outlining approach and timeline for implementing a Climate Lens Assessment Framework, designed to provide a preliminary, qualitative assessment of whether a municipal decision will affect climate or be affected by climate. RECOMMENDATION: For information. 5.3 Lumon Window Presentation Staff presentation 6.CORRESPONDENCE 7.BRIEFING ON OTHER ITEMS OF INTEREST / QUESTIONS FROM COUNCIL 8.MATTERS DEEMED EXPEDIENT 9.ADJOURNMENT Cit\oI0DSOHRidge C28NC,L W2RKS+2P A*EN'AMAY 28, 2024 at 11:00 AMBLANEY ROOM With Virtual 2nline Participation The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. The meeting is live streamed and recorded by the City of Maple Ridge City of Maple RidgeCOUNCIL WORKSHOP AGENDAMay 28, 202411:00 AMVirtual Online Meeting including Council ChambersThe purpose of the Council Workshop is to review and discuss policies and other items of interest toCouncil. Although resolutions may be passed at this meeting, the intent is to make a consensus decisionto send an item to Council for debate and vote or refer the item back to staff for more information orclarification. The meeting is live streamed and recorded by the City of Maple Ridge1.CALL TO ORDER1.1 Territory AcknowledgementThe City of Maple Ridge carries out its business on the traditional andunceded territories of the Katzie (q̓ic̓әy̓) First Nation and the Kwantlen(qʼʷa:n̓ƛʼәn̓) First Nation.2.APPROVAL OF THE AGENDA3.MINUTES3.1 Adoption of Minutes – May 14, 20244.PRESENTATIONS AT THE REQUEST OF COUNCIL5.UNFINISHED AND NEW BUSINESS5.1 Zero Carbon Step CodeStaff report dated May 28, 2024, providing an overview of both BC Energy StepCode and Zero Carbon Step Code, and a proposed implementation pathway.RECOMMENDATION: That Council direct staff to bring forward an amendment to the Maple Ridge Building Bylaw No. 69252012 for adoption of the EL3 of the Zero Carbon Step Code for all residential buildings to be in effect on July 1, 2025. 5.2 Climate Lens Assesment Framework Staff report dated May 28, 2024, outlining approach and timeline for implementing a Climate Lens Assessment Framework, designed to provide a preliminary, qualitative assessment of whether a municipal decision will affect climate or be affected by climate. RECOMMENDATION: For information. 5.3 Lumon Window Presentation Staff presentation 6.CORRESPONDENCE 7.BRIEFING ON OTHER ITEMS OF INTEREST / QUESTIONS FROM COUNCIL 8.MATTERS DEEMED EXPEDIENT 9.ADJOURNMENT Document:3802864 CITY OF MAPLE RIDGE COUNCIL WORKSHOP MINUTES MAY 14, 2024 The Minutes of the Council Workshop Meeting held virtually and hosted in the Blaney Room on May 14, 2024 at 11:00 am at City Hall, 11995 Haney Place, Maple Ridge, British Columbia for the purpose of transacting regular City business. PRESENT Elected Officials Mayor D. Ruimy Councillor K. Carreras Councillor O. Dozie (Virtual) Councillor J. Dueck Councillor S. Schiller Councillor J. Tan Councillor A. Yousef ABSENT Appointed Staff S. Hartman, Chief Administrative Officer C. Mushata, Corporate Officer, Director of Legislative Services Other Staff as Required M. Best, Interim Director of Planning C. Bevacqua, Clerk 3 S. Faltas, Director of Engineering A. Grochowich, Manager of Community Planning Z. Lifshiz, Director, Strategic Development, Communications and Public Engagement M. McMullen, Manager of Development & Environmental Planning R. Ollenberger, Manager of Development Engineering V. Richmond, Director of Parks & Facilities J. Roosen, Business Transformation Manager T. Thompson, Director of Finance Note: These Minutes and a video of the meeting are posted on the City’s Web Site at https://mapleridge.primegov.com/public/portal Note: Councillor Dozie joined the meeting virtually. 1. CALL TO ORDER – 11:00 am 1.1 Territorial Acknowledgement The Mayor provided the territory acknowledgement. Council Workshop Meeting Minutes May 14, 2024 Page 2 of 4 Document:3802864 2. APPROVAL OF THE AGENDA 2.1 Approval of Agenda R/2024-WS-018 Moved and seconded THAT the agenda of the May 14,2024, Council Workshop Meeting be approved as circulated. CARRIED 3. MINUTES 3.1 Minutes R/2024-WS-019 Moved and seconded That the minutes of the Council Workshop Meeting of April 23, 2024, be adopted. CARRIED 4. PRESENTATIONS AT THE REQUEST OF COUNCIL - Nil 5. UNFINISHED AND NEW BUSINESS 5.1 Small Scale Multi Unit Housing (SSMUH) Update and Policy Manual Considerations Staff report dated May 14, 2024, to provide Council with an update on the implementation of the Provincial housing legislation, an overview of the Policy manual considerations and to outline timelines associated with implementation. The Manager of Community Planning gave a presentation and answered questions of Council. R/2024-WS-020 Moved and seconded That staff prepare amendments to the Zoning Bylaw to enable Small Scale Multi Unit Housing to an upcoming Committee of the Whole meeting; and That staff prepare amendments to the Zoning Bylaw to remove the Temporary Residential Use. Council Workshop Meeting Minutes May 14, 2024 Page 3 of 4 Document:3802864 ********************************************************************************** Councillor Yousef left the meeting at 11:41 am and was not present for the vote on items 5.1 and 9.1; he returned at 1:15 pm *********************************************************************************** 6. CORRESPONDENCE – Nil 7. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL – Nil 8. MATTERS DEEMED EXPEDIENT – Nil 9. NOTICE OF CLOSED MEETING R/2024-WS-021 Moved and seconded The meeting will be closed to the public pursuant to Sections 90(1) and 90(2) of the Community Charter as the subject matter being considered is related to the following: • Section 90(1)(c) – labour relations or other employee relations; • Section 90(1)(e) – the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure could reasonably be expected to harm the interests of the municipality; • Section 90(1)(j) – information that is prohibited, or information that if it were presented in a document would be prohibited, from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; • Section 90(1)(k) – negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; • Section 90(1)(l) – discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report]; • Council Workshop Meeting Minutes May 14, 2024 Page 4 of 4 Document:3802864 • Section 90(2)(b) – the consideration of information received and held in confidence relating to negotiations between the municipality and a provincial government or the federal government or both, or between a provincial government or the federal government or both and a third party; Any other matter that may be brought before the Council that meets the requirements for a meeting closed to the public pursuant to Sections 90(1) and 90(2) of the Community Charter or Freedom of Information and Protection of Privacy Act. 10. ADJOURNMENT – 5:12 pm ___________________________________ D. Ruimy, Mayor ___________________________________ C. Mushata, Corporate Officer ~ Maple Ridee - TO: FROM: His Worship Mayor Dan Ruimy and Members of Council Chief Administrative Officer SUBJECT: Zero Carbon Step Code EXECUTIVE SUMMARY: MEETING DATE: FILE NO: MEETING: May 28, 2024 01-0690-02 Council Workshop Zero Carbon Step Code (ZCSC) is an opt-in program available to local governments to reduce carbon emissions from new building stock. The Mayor's Taskforce on Climate Action proposed that the City implement the ZCSC commencing with Strong Carbon requirements by Q1 2025. Based on engagement with the local development community and utility providers, staff are proposing that ZCSC requirements come into effect in Q3 2025 at the Strong Carbon level and Q4 2026 at Zero Carbon for residential buildings. RECOMMENDATION: That Council direct staff to bring forward an amendment to the Maple Ridge Building Bylaw No. 6925-2012 for the adoption of EL-3 of the Zero Carbon Step Code for all residential buildings to be in effect on July 1, 2025. DISCUSSION: a) Background Context: The Mayor's Taskforce on Climate Action (MTCA) was in effect from July 2023 to April 2024. The MTCA's objective was to rapidly advance priority climate actions in anticipation of completing the City's Low-Carbon Resilience Climate Action Plan. Terms of reference for the MTCA are included as Attachment A of this report for reference. Five priority focus areas were identified by the MTCA, as identified in Attachment B. One of which was the BC Energy and Zero Carbon step codes. The MTCA was provided an overview of the components of the BC Energy Step Code and the Zero Carbon Step Code (ZCSC) and examples of implementation and introduction from municipalities in the Metro Vancouver Region and the interior of British Columbia. As a result of the discussion, the MTCA supported two resolutions: 1. Staff bring forward to Council a roadmap for the implementation of the Zero Carbon Step Code for Part 3 Residential and Part 9 at these timelines: o Level "Strong" by Q1 2025 o Level "Zero" by Q1 2026 2. Staff undertake community engagement on the implementation of the BC Energy Step Code and Zero Carbon Step Code The following report provides an overview of both BC Energy Step Code and ZCSC, actions taken since direction was provided by the MTCA, and a proposed implementation pathway. 3812081 Page 1 of 5 The BC Energy Step Code and ZCSC are provincial regulations enacted through the BC Building Code to decarbonize new buildings. Both models follow an incremental approach to introducing higher building performance requirements to achieve net-zero energy-ready buildings by 2032 (Energy Step Code) and zero carbon buildings (Zero Carbon Step Code) by 2030. Complete backgrounders on Energy and Zero Carbon step codes are provided as attachments C and D, respectively. At the direction of the MTCA, the City undertook engagement and education activities with the local development community, utility providers and building industry organizations to understand the impacts of Energy Step Code and ZCSC. A summary of findings is provided in Attachment E. A comprehensive analysis of the engagement initiative is included as Attachment F and a formal letter from Fortis BC is included as Attachment G. Enacting Zero Carbon Step Code Requirements For a municipality to enact Zero Carbon Step Code earlier than Provincial timelines, the local government must adopt amendments to their Building Bylaw. Amendments must reference performance standards for ZCSC as defined in the BC Building Code and a timeframe for the standards to be in effect. A bylaw amendment will be required in early 2025 as the Province's best-practice guide on BC Energy Step Code, which also includes ZCSC, identifies that the bylaw enacting Step Code requirements be adopted no more than 6 months prior to coming into effect. Cost Impacts A common question that arose from the engagement activities was a need to better understand the cost implications of implementing ZCSC. The most comprehensive resource to understand the capital (one-time) and operating (ongoing) costs of implementing Zero Carbon Step Code standards comes from the City of Nanaimo report: "Net Zero Code Adoption: Report and Recommendations," Attachment H. It is important to note that Nanaimo is currently exceeding the BC Building Code with regard to Energy Step Code. If Maple Ridge were to maintain the provincial timeline for Energy Step Code, the base building code would be reflective of the costs in the report by 2027. The report identifies that the additional capital costs to achieve upper steps of the Energy Step Code range from 0%-6% from base building code. Implementing ZCSC ranges from and additional 0% to 3%. At the top end of the range a single-family home would cost 9% more to construct to Zero Step Code and net-zero energy standards On the operating side, utility costs vary from an increase of 7% annually to a reduction of 12% for single family residential buildings. Larger, more complex buildings operate with utility cost reductions ranging from -9% to -25%. 3812081 Page 2 of 5 Mandatory Space Cooling Though ZCSC is intended to achieve climate-related goals, implementation of EL-2 or Strong Carbon requirements also meet a new mandatory requirement under the March 2024 BC Building Code update. As a result of the 2021 heat dome that resulted in 619 heat-related deaths, the Province has enacted the following requirement in the most recent Building Code to limit risks associated with overheating in new homes: "At the outside summer design temperature, required cooling facilities shall be capable of maintaining an indoor air temperature of not more than 26C in at least one living space in each dwelling unit." Homes that are equipped with heat pumps, as would be required under the second step of the ZCSC or EL-2, would have central cooling throughout the dwelling thereby meeting the requirement. Therefore, ZCSC both mitigates Greenhouse Gas emissions while also providing adaptive benefits for climate change. Proposed Approach The MTCA recommended that the City adopt EL-3 Strong Carbon by 01 2025 and EL-4 Zero Carbon by 01 2026 for residential buildings only. Given the feedback from the development community, it is recommended by staff that the timeframe be shifted to early 03 2025 for EL-3 and 04 2026 for EL-4, as noted in Attachment I. The adjusted timeframe will enable the City to join the next provincial implementation cohort while still maintaining the six-month period from bylaw adoption to regulation enforcement, as recommended by the Province's best practice guide. Additionally, it has been noted by municipalities that have already implemented Zero Carbon Step Code that staff and developer training is a critical component of effective implementation. To allow both sets of interest-holders sufficient time to understand the new regulatory requirements and adjust to a new way of doing business, an additional period of six months is required. In the near term, the City has been invited to participate with a cohort of municipalities for a 6- month program to prepare for ZCSC implementation. The initiative is led by the Community Energy Association, a key partner that has support the City throughout ZCSC discussions and builder engagement, in partnership with the Province. The program will culminate with a staff report in early 2025 to enact ZCSC in the Building Bylaw. b} Desired Outcome: That Council provide direction to staff on timeframes for implementing Steps 2-4 of the Zero Carbon Step Code. These timeframes will inform updates to the Building Bylaw, communication to the public and interest-holders, and planned training with the development community. c} Strategic Alignment: Adopting Zero Carbon Step Code is aligned with the City's Strategic Priority of Climate Leadership and Environmental Stewardship. The policy will mitigate and adapt the City to the impacts of climate change and reduce the community's greenhouse gas emissions. 3812081 Page 3 of 5 d) Interdepartmental Implications: Implementing the Zero Carbon Step Code requires an interdepartmental approach. Development Services departments, including the Building Services and Planning, have been engaged in advancing the project and influencing the proposed timelines. e) Business Plan/Financial Implications: No funding is being requested at this time. The City is seeking funding from BC Hydro to support builder and staff training for the implementation of Zero Carbon Step Code. A separate funding request will be presented to Council if additional funding is required. f) Policy Implications: The Zero Carbon Step Code represents a major climate policy that will reduce operational emissions from the City's building stock. Through the development of the City's Climate Action Plan, the emissions impacts of ZCSC will be modeled and can inform amendments to the policy direction. As the results of the modelling exercise come available over the summer, additional information will be provided to Council if adjustments are required. g) Alternatives: Two alternatives are available to Council as it pertains to Zero Carbon Step Code: Await Direction: Though guidance from the Province on ZCSC is anticipated before the end of the year, there is no certainty around when it will be available. Additionally, it is possible that EL-2 gets enacted in the base building code as of this year. If that were to happen, moving to EL-3 would remain feasible by Q3 2025 as industry would have nearly a full year to prepare. Maintain MTCA Recommendation: In light of Maple Ridge having housing targets mandated by the Province and pending implementation of Bills 44 and 47, there remains uncertainty within the development industry. Simultaneous implementation of multiple policy levers with divergent impacts may challenge both the City and the building and development industry. 3812081 Page 4 of 5 CONCLUSION: The Zero Carbon Step Code is a significant initiative to reduce carbon emissions from new building stock which aligns with the City's climate action direction. Prepared by: Approved by: Concurrence: Attachments: ----· ., .... --··-·-- Dan Olivieri Corporate Planning & Consultation iz Director of Strategic Development, Communications & Pu~.:...-------- Scott Hartman ~ Chief Administrative Officer (A) Mayor's Taskforce on Climate Action -Terms of Reference (B) Mayor's Taskforce on Climate Action -Priorities (C) BC Energy Step Code Backgrounder (D) BC Zero Carbon Step Code Backgrounder (E) Zero Carbon Step Code Engagement Summary (F) Zero Carbon Step Code Engagement -What We Heard (G) Fortis BC -Zero Carbon Step Code Communication (H) City of Nanaimo Net Zero Code Adoption: Report and Recommendations (I) City of Maple Ridge -Proposed Implementation Timelines 3812081 Page 5 of 5 Attachment A-MTCA Terms of Reference Terms of Reference -City of Maple Ridge: Mayor's Task Force on Climate Action MANDATE The mandate of the Mayor's Taskforce on Climate Action (MTCA) is to serve as an advisory role to City Council with respect to high value and high priority climate mitigation and adaptation actions that will have the greatest impact on advancing Council's Strategic Priority of "Climate Leadership and Environmental Stewardship" and its accompanying goals. FUNCTIONS The Council of the City of Maple Ridge has the MTCA to: • ldenitfy and make actionable recommendations and proposals for Council's consideration regarding high value and high priority policies, bylaw updates, and implementation actions related to reduction of emissions and enhancement of resilience related to Climate Change. As part of making recommendations, the MTCA will: o Apply a "Low Carbon Resilience" lens to all proposed actions to ensure that recommendations do not negatively impact related adaptation, mitigation and other co- benefit priorities, and seek opportunities to maximize these outcomes concurrently. o Balance and adjust the priority of each recommendation with the anticipated implementation time line, viability, and the organization's/community's capacity and state of readiness to proceed with each recommendation. o Include implementation process and phasing recommendations where appropriate. • Engage with indigenous peoples and with the community and other interested and affected parties, with the support of City staff, regarding actions and policy directions that are proposed to be recommended to Council. This is to ensure that recommendations are evaluated with consideration of community and stakeholder input and perspectives. • Advise Council and make recommendations on innovative actions that will establish Maple Ridge as a leader among local governments in addressing climate change. • Participate in climate action workshops with staff and/or consultants, where possible, to: o Co-evaluate and prioritize risk and vulnerability and emissions data. o Support alignment between the development of the City's comprehensive Climate Action Plan and the actions directed by Council through the recommendations of the MTCA. • Provide the City's cross departmental Climate Action staff team with expert insights and comments on the City's Climate Action Plan's phases, deliverables and outcomes during the development of the plan by providing analysis of best practices and consultant recommendations. MEMBERSHIP COMPOSITION The MTCA will be comprised of up to eight (8) voting members approved by a Council, consisting of: • City of Maple Ridge Mayor (Taskforce Chair) • Two (2) City of Maple Ridge Councillors Attachment A-MTCA Terms of Reference • Four (4) members with experience in key areas of climate action. Membership in this group is not restricted to members of Maple Ridge community, due to the focus on each member's expertise in one or more of the following identified areas: o Building energy efficiency and renewable energy o Community-focused climate action policy o Zero emission and active transportation o Zero waste o Climate adaptation and resilience o Natural habitat and ecosystems o Green infrastructure o Urban agriculture o Low Carbon Resilience • One (1) youth (age 15-24) member Additionally, a City staff member will be appointed by the CAO as a staff liaison, as well as a Committee Clerk will provide support to the Taskforce, including preparing and distributing agendas, attending the meetings, and preparing minutes of the meetings. The membership composition of the Taskforce may be changed by Council resolution . Any vacancy occurring in the membership of the Committee shall be filled forthwith by the Council for the unexpired term of vacancy. The Taskforce Chair has the authority to invite individuals and/or groups to Committee meeting for the purpose of making presentations or addressing specific questions that the Taskforce may have . QUORUM Quorum will consist of 50% of appointed members plus one. DELEGATED AUTHORITY The MTCA is established as a Select Committee. The Taskforce and its members will be approved by Council. The MTCA does not have any delegated authority and has no authority to direct staff. Any recommendations requiring implementation must first be considered and Carried by a vote of City Council. TIME FRAME OF TASKFORCE The MTCA will remain active for a period of six (6) months from the date of the Taskforce's first meeting. The term may be extended beyond the initial period by Council resolution. TERM OF MEMBERSHIP Members will serve for the duration of the six (6) month term. An extension to the term of the Taskforce will automatically result in the extension of existing members. Attachment A-MTCA Terms of Reference Any vacancy occurring in the membership of the Taskforce, either during the initial term or as a result of an extension, shall be filled by Council at Council's discretion for the unexpired term of vacancy. MEETINGS Meetings will be held at City Hall generally on a monthly basis, or as required at the call of the Chair. The agenda will be distributed the week prior to the meeting. MEMBERSHIP REMUNERATION No Taskforce member will receive any remuneration for services, however, a member shall be reimbursed for any reasonable out of pocket expenses incurred on behalf of and previously approved by the Taskforce. Attachment B -Mayor's Taskforce on Climate Action Priorities 1. BC Energy Step Code/Zero Carbon Step Code 2. Building Retrofits 3. Green Infrastructure & Nature-based Solutions 4. Accelerate Implementation of Strategic Transportation Plan -Active Transportation 5. Climate Lens for Policy Development Attachment C -BC Energy Step Code Backgrounder BC Energy Step Code The BC Energy Step Code is a progressive regulation implemented by the Province of BC through the provincial building code, aimed at enhancing the energy efficiency of new buildings. It serves as a voluntary standard that provides a clear pathway towards more sustainable building practices, ultimately leading to net-zero energy ready buildings by 2032. The code outlines a series of incremental performance steps, focusing on energy conservation and efficiency, which local governments can adopt into their building policies to encourage or require higher levels of energy performance, as noted in Figure 1. Figure 7 -BC Energy Step Code Regulatory Pathway 2032 2023 * 2022* *NEW TARGET DEADLINES STEP 5 STEP4 STEP4 STEP3 STEP 3 STEP 2 Energy~efficiency improvement above 2018 BC Building Code requirements ENERGY STEPCODE 3U1LO!MG BF.YONO THC ST,\ND,'\!m Each step of the code specifies a set of measurable performance requirements that builders must meet to demonstrate their building 's energy efficiency level. Attaining incremental progress toward each performance tier requires analysis and improvement in how all building system components-such as windows, insulation, and mechanical systems -interact. Figure 2 illustrates several basic strategies identified by the Province to incrementally enhance building performance. Page 1 of 2 Attachment C -BC Energy Step Code Backgrounder Six Basic Strategies that cost-effectively boost performance BOOST INSULATION The progressive nature of each step in the Code is designed to allow builders and communities to gradually adapt to the new standards, promoting innovation and the development of new construction technologies. By implementing the BC Energy Step Code, the province aims to reduce greenhouse gas emissions significantly while fostering a future where energy-efficient buildings are the norm. Page 1 of 2 Attachment D -BC Zero Carbon Step Code Backgrounder BC Zero Carbon Step Code The BC Zero Carbon Step Code is a new opt-in regulation introduced in the 2023 update of the BC Building Code. It aims to limit greenhouse gas (GHG) emissions from new construction. The code complements the BC Energy Step Code by targeting zero emissions from new buildings by 2030, adding a layer to improve energy efficiency and reduce operational carbon emissions. The adoption pathway for the Zero Carbon Step Code involves various compliance tools and options for builders. Local governments can incentivize or mandate compliance to four levels of carbon performance, ranging from 'Measure-Only' to 'Zero Carbon Performance', as noted in Table 1. There are prescriptive and performance paths available, with specific guidelines for different types of buildings, such as Part 9 (small buildings) and Part 3 (large or complex buildings). Table 7 -Zero-Carbon Step Code Emissions Leve ls & Compliance /Vlethods Step Emission Level Compliance Method EL-1 NA No targets, reporting only EL-2 Moderate Carbon Generally, electrification of space heating EL-3 Strong Carbon Generally, electrification of space heating & domestic hot water EL-4 Zero Carbon Electrification of space heating, domestic hot water, and other appliances including cook tops Though the ZCSC focuses on fuel -switching, the current BC Building Code permits for back-up systems fueled by natural gas. This measure aligns with the City's approach to climate action, which requires consideration for the climate resilience impacts of policy decisions. Ensuring that residential buildings have secondary sources of heat is a resilience feature as it ensures that occupants have a heat source during extreme weather events. An updated Building Code is projected to be enacted before the end of the year. The update is anticipated to identify which step will be in effect for 2025, the timeframe for upper steps to be enacted, and address back-up systems that are permissible under the current building code. Page 1 of 1 Attachment E -Zero Carbon Step Code Engagement Summary Development Industry Engagement As directed by the MTCA, the development industry was engaged over a three-week period to provide input and guidance on the proposed implementation of Zero Carbon Step Code (ZCSC). Developers and builders were hosted at an in-person forum where leaders in green buildings provided an overview of how implementation of ZCSC has transpired in other jurisdictions. Comments and feedback were received by way of an online survey over a three-week period. Engagement and survey results are provided in Attachment E. More than 100 letters were mailed to builders and developers in the City's land management system inviting them to the in-person session and to participate in the survey. Invitations were also sent to the Urban Development Institute and Homebuilders Association of Vancouver, inviting their members to participate. Generally, the commentary from the eight survey participants is that the additional cost, including those associated with additional electrical service and access, are the most significant barriers to implementing Zero Carbon Step Code. Participants also identified that the proposed timeframe for implementing ZCSC was too quick, with a single respondent suggesting that the City wait on the Province's mandated timeframe. Furthermore, it was identified that a one-year gap for moving from EL-3 Strong Carbon Performance to EL-4 Zero Carbon Performance was too short of a timeframe. Additionally, survey participants identified that a performance pathway or having the flexibility of a performance and prescriptive pathway is preferred. Finally, when asked what the development community needs to better prepare for the implementation of ZCSC, respondents indicated that more education and training as well as incentives and rebates were the two highest priority items. Utility Provider Engagement Both BC Hydro and Fortis BC were engaged throughout the process of building out the ZCSC approach. Communication from Fortis BC is provided in Attachment F of the Council report. Feedback from BC Hydro identified the following considerations for the City moving forward on ZCSC: Grid capacity to absorb the additional load is included in ongoing forecasting initiatives. The demand forecasts factor in the adoption of ZCSC at intervals proposed by local governments. BC Hydro capital projects will meet the energy demand targets identified in the analysis. A policy update is being proposed to the BC Utility Commission in June that will apply a more equitable framework for distributing the cost of new electrical connections for development. The Distribution Extension Policy update takes a unitized approach -distributing cost of new infrastructure across all forecasted units across the grid based on project load -to better balance the costs between higher-and lower-density development. Further, BC Hydro is proposing an increase to its assist factor for infrastructure. Page 1 of 2 Attachment E -Zero Carbon Step Code Engagement Summary Both energy utilities will continue to be engaged in discussions throughout the implementation ZCSC to ensure that any regulatory changes and impacts to development are communicated to all interested parties. Page 2 of 2 Attachment F -Zero Carbon Step Code Engagement -What We Heard Maple Ridge Zero Carbon Step Code Engagement and Survey Results The City of Maple Ridge undertook an information and engagement of builders and developers on the introduction of Zero Carbon Step Code (ZCSC) from April 10th to April 24th, 2024. ZCSC was introduced to the BC Building Code on May 1, 2023, and allows for local governments to encourage or require lower operational carbon emissions in new buildings by transitioning to lower emission systems for space heating, water heating, and indoor cooking. The introduction of ZCSC and engagement of the local building and development community was identified as a priority climate action by the Mayor's Taskforce on Climate Action recommending an accelerated implementation timeline of the zcsc. The intent of the engagement and communication with local builders and developers was to inform and educate them on the introduction of ZCSC and to provide feedback and gain understanding of their needs and concerns about introduction of ZCSC to Maple Ridge. Engagement and communication with the building and development community occurred from March 25, 2024, to April 25, 2024, and included: • Letters to 101 local builders and developers on March 22, 2024, and April 12, 2024, regarding ZCSC, an invitation to the April 10 information forum, and follow up letter and survey. • Email Information and invitations sent out to UDI and HAVAN on March 25, 2024, and April 17, 2024, regarding ZCSC, an invitation to the April 10 information forum, and follow up letter and survey. • An information forum and engagement evening on ZCSC on April 10, 2024, with 20 attendees. • An information meeting with FortisBC on April 15, 2024. • An information and engagement meeting with UDI on April 17, 2024. • An Engage Maple Ridge page with information on ZCSC that launched on April 10, 2024. • A survey for builders and developers requesting feedback on ZCSC that ran from April 10, 2024, to April 24, 2024, on the Engage Maple Ridge Page with hard copies available at Maple Ridge City Hall. The Engage Maple Ridge page saw 62 total visits with 41 direct visitors, 13 directed by a search engine and 8 responses to the online survey. Survey Responses A survey to engage builders and developers on ZCSC and to provide feedback was posted on the Engage Maple Ridge Page from April 10, 2024, to April 24, 2024. Hardcopies were provided at the April 10, 2024, Building forum and at City Hall for submission. 8 responses to the survey were recorded. Background and Knowledge of ZCSC 4 responses were provided by a property owner or developer, 3 were provided by a general contractor and 1 was provided by a design professional (architect/engineer/energy advisor). No responses were provided by Other (builder association, technical support, energy utility representative). Page 1 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard Which of the following best describes you? 0 (0.0%) I (1 2.5%) •• • 3 (37.5%) -4 (50.0%) • Property Ol;';r er or developer e General contractor @ Desig n professional (architect .:eng inee r : energy advisor} Other (e.g., builder asscciation, tecl nical suppcrt, energy utility representat ive). Please specify. What types of new developments are you/your firm working on in Maple Ridge? When asked about the type of new developments respondents are working on in Maple Ridge, 7 respondents said Part 9 -houses and small residential buildings and 3 respondents indicated Part 3 -large and complex residential buildings. No institutional/commercial or industrial buildings were said in responses. 0 0 0%0% r- Page 2 of 11 ■ Part 9-houses and small residential buildings Part 3 -large and complex residential buildings ci Institutional/Commercial a lndustria I Attachment F -Zero Carbon Step Code Engagement -What We Heard How well-informed are you about BC Zero Carbon Step Code? When asked about how aware or informed respondents are about the BC Zero Carbon Step Code (ZCSC), 3 respondents were very well-informed, 3 respondents were moderately informed, and 2 respondents have heard of ZCSC but do not know much about it. 0 (0.~ 2 (25.0%) --. . ..--3 (37.5%) Identifying barriers • Very 'Nell-informed e Moderately informed Don't know much about it (but have heard of it } Not at all dc n't kno•:,, any hing about it Survey respondents were asked about and to identify ba rriers they could see for the implementation of ZCSC through implementing zero carbon ready electric space heating and zero carbon ready electric domestic hot water systems in new Part 9 residential buildings or Part 3 residential buildings. Barriers to electric space heating: Do you feel there are barriers to implementing zero carbon ready electric space heating systems in new Part 9 residential buildings or Part 3 residential buildings? Respondents indicated that there were barriers with 7 respondents said there are barriers while 1 response said there are no barriers. Page 3 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard 0 (0.0%) - e Ne • Yes @ I don't know What do you feel are the top three (3) barriers to implementing zero carbon ready electric space heating systems in new Part 9 residential buildings or Part 3 residential buildings? The top 3 responses showed concerns regarding incremental costs (5 responses) and costs associated with electrical service and access and interconnections fees for electricity (4 and 3 responses). Page 4 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard 6 5 4 3 2 1 0 IJ Incremental cost increase Unexpected costs of BC Hydro interconnection fees □ Electrical service and access ■ Operating costs □ Lack of incentives Insufficient information on new practices/ equipment ■ Market demand for heat pumps ■ Delays in permitting Change in requirements coming part way through existing projects. Client perception/expectation of high- performance homes Operating costs (2 responses) and lack of incentives for building to net-zero (2 responses) were also identified as barriers Barriers to electric hot water: Do you feel there are barriers to implementing zero carbon ready electric domestic hot water systems in new Part 9 residential buildings or Part 3 residential buildings? Respondents indicated that there are barriers with 6 respondents said there are barriers while 1 response said there are no barriers, and 1 response did not know. Page S of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard 6 (75.0%) e No e Yes ® I dcn't know What do you feel are the top three (3) barriers to implementing zero carbon ready electric domestic hot water systems in new Part 9 residential buildings or Part 3 residential buildings? The top 3 responses showed concerns regarding incremental costs (5 responses) and costs associated interconnections fees for electricity (4 responses) and operational costs (4 responses). Page 6 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard 6 5 4 3 2 1 0 ■ Incremental cost increase Ill Unexpected costs of BC Hydro interconnection fees Operating costs ■ Electrical service and access ■ Market demand for gas boilers II Allowable space for equipment (interior and exterior) Electrical service and access (2 responses) was also indicated as a barrier. Implementing ZCSC in Maple Ridge Respondents were asked to provide feedback on a proposed implementation timeline and levels of ZCSC that were recommended by the Mayor's Taskforce on Climate Action. The City of Maple Ridge is considering implementing the Zero Carbon Step Code (ZCSC) for Part 3 residential and Part 9 residential buildings to prepare our community for the future of electrification, and to lower carbon emissions in the development and operation of new buildings. A proposed timeline is: • Strong Carbon Performance (EL-3) by January 1, 2025 • Zero Carbon Performance (EL-4) by January 1, 2026 Do you feel the proposed introduction and implementation path of Zero Carbon Step Code in Maple Ridge is .... Page 7 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard Should wait for Province to mandate - is too long is about right is too quick 0 1 2 3 4 5 6 7 The majority of respondents felt that the proposed implementation of ZCSC to Maple Ridge was too quick (7 responses) with 1 response indicated that Maple Ridge should wait until the Province mandates ZCSC in the Building Code. One response elaborated by saying that moving from EL-3 Strong Carbon Performance to EL-4 Zero Carbon Performance in 1 year is way too quick. Which compliance choice do you prefer for Part 9 residential buildings? Implementation of ZCSC in Part 9 buildings can follow two pathways: prescriptive or performance. The prescriptive path requires builders to decarbonize energy-intensive appliances like space heating, water heating and cooking equipment. The performance path sets overall greenhouse gas emission targets for each Carbon Step. Builders may choose from different metrics optimized for small, medium, and large-sized homes. Builders who choose this route can ask their Energy Advisor to calculate the impact of their mechanical system choices on the overall carbon performance of the home. Under the performance path, builders could include some combustion equipment like fireplaces, cooktops, or clothes dryers and still comply with the top Carbon Step ("Zero Carbon Performance"). Part 3 large residential buildings, the Zero Carbon Step Code requires builders to follow the performance pathway that sets emissions targets. There is no prescriptive pathway for Part 3 residential buildings. When respondents were asked their preference for Part 9 buildings compliance pathway either performance or prescriptive to meet ZCSC, there was a split between 4 stating performance and 4 preferring the flexibility of both options. Page 8 of 11 8 Attachment F -Zero Carbon Step Code Engagement -What We Heard Both (flexibility) Performance Prescriptive 0 1 2 3 4 5 What top three (3) things do you need to be better prepared for the implementation of Zero Carbon Step Code in Maple Ridge? The survey enquired what things builders and developers would need to be better informed and prepared for the implementation of ZCSC in Maple Ridge. This question was asked to inform and understand what was needed to assist local builders and developers to introduce and build Part 9 residential and Part 3 residential buildings that would meet the steps of ZCSC in Maple Ridge. Requests for more information, education and training for builders, developers, building trades and building inspectors on ZCSC and new equipment/practices were indicated as the highest need and interest from respondents (13 responses) followed by incentives and rebates and streamlining the approvals and permit process (6 responses), and educating homeowners of gas vs. electric for heating and working with BC Hydro to help facilitate connections and upgrades (4 responses). Page 9 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard 6 4 3 2 0 El Education and infonnation about Zero Carbon Step Code □ Incentives and rebates □ Education and infonnation about new practices/equipment El Construction and building trade training El Streamline approvals and permitting process ~ Building inspectors training ■ Education of home buyers and homeowners (gas vs. electric) ■ Work with BC Hydro to help facilitate connections and upgrades Ill Hands on technical training Energy modeller training/ Access to energy modellers Specific requests for further information were requested on upgrading electricity hookups, and the need for backup power such as generators or natural gas. Education and engagement suggestions included hosting more information forums on topics of BC Energy Step Code and the builders in the community to get a tour of an EL-4 zero carbon home to see the planning and building science that has went into the home and or project. Specific comments provided by respondents: Upgrades and backup power information: • What I'd like to get more information on and seems like other builders/contractors have noted is will hydro have to upgrade from 200-400 Amp systems. Can power grid handle this with new builds and or upgrading old systems? • What happens when rolling blackouts happen. Should we make rough in for generators mandatory and really this will all come down to the clients/homeowners in the end. • Also like to get more info on Gas as a secondary backup be nice to have systems that run on electric first and a backup for gas just in case. Costs Page 10 of 11 Attachment F -Zero Carbon Step Code Engagement -What We Heard • Avoid timing these new and expensive requirements while interest rates are high, wait until they come down, otherwise you'll make building affordable housing impossible. • Cost of implementing effective/efficient electrical equipment is not insignificant in the real world. • While implementing the Zero Carbon Step Code faster than the Building Code requires may be a praiseworthy goal, it will make housing less affordable in Maple Ridge. This will happen directly by increasing construction costs and indirectly by making projects less feasible, thus reducing the quantity of new housing built. When the cost of housing is increased, the people who are hurt the most are those on the lower end of affordability: seniors, single parents, young people, new Canadians, etc. Not all praiseworthy goals are simultaneously possible. We can't make housing more environmentally friendly while also making it more abundant and affordable. For now, we should focus on providing more housing, especially for the people who need it most, rather than making it less available and more expensive. Page 11 of 11 Attachment G -Fortis BC -Zero Carbon Step Code Communication Email correspondence dated April 26, 2024 Thank you again for meeting with us last week and providing us with an opportunity to offer feedback on the proposed plans for Zero Carbon Step Code policy in Maple Ridge. Throughout the engagement phase, I hope the points highlighted below can provide additional insight into some of the significance that this decision has the potential to carry. I would like to add that the opinions and recommendations that I have highlighted below have been considered through a triple bottom-line -environmental, social and economic -lens in support of current and future residents, businesses and institutions of Maple Ridge. Increased Home Costs • In the February 21 Metro Vancouver Caucus of Committee Chairs, Mayor Hurley of Burnaby indicated that the newest Zero Carbon Step Code has increased the cost of homes by 12% and expressed concerns about the practical realities of limited, and sometimes interrupted electric capacity. • Mayor Hurley's concerns were in direct response to the 'Climate 2050: Priority Actions to Accelerate Toward our Regional Targets' report that was presented to the Metro Vancouver board on January 26, in which BC Hydro CEO, Chris O'Riley recognized that the solution to achieving regional climate goals cannot be full electrification; and that it is not practical nor feasible for BC Hydro to replace the gas system. • Links to both meetings can be found here: Link Relevant Timestamp htti;1s:LLmetrovancouver.orgLmedia-First 55 minutes comprised of BC Hydro CEO, roo mLvi d eoL9068682 58 Chris O'Riley presenting and answering key questions Caucus of Committee Chairs Meeting Feb 21 2024 First 1 hour, 8 minutes comprises the agenda I Metro Vancouver item with Mayor Hurley's comments beginning around the 20:00 minute mark. As part of the StrongerBC plan, the Minister of Housing has announced that the Province is taking action to reduce bureaucracy to prioritize building homes in communities with the greatest housing needs, while addressing affordability. As the City of Maple Ridge is among the 47 municipalities on the Province's list, it will be important to consider how the accelerated implementation of ZCSC could impact the City's ability to meet the targets. Especially as the government has since said it will monitor the progress of the 20 communities (Maple Ridge included) and set out targets this summer for housing growth. htt12s:LLwww.biv.comLnewsLreal-estateLbc-government-to-set-out-housing-targets-for-20-more- communities-8643379. Capacity Limitations/Constraints • On April 13th, at the Association of Vancouver Island & Coastal Communities Convention (AVICC) Diana Stephenson, Senior Vice-President of Customer & Corporate Affairs, BC Hydro and Doug Slater, Vice-President External Relations & Regulatory Affairs, Fortis BC presented on the Future of Energy. • The intent of this presentation was to help municipalities as they grapple with the challenges of rapid population growth, critical economic development, and ambitious climate targets. Topics covered by Diana Stephenson and Doug Slater included: o The need for reliable decarbonized energy Attachment G -Fortis BC -Zero Carbon Step Code Communication o BC Hydro's and FortisBC's shared commitments to delivering low carbon, affordable energy to achieve the Province's CleanBC Roadmap to 2030 • During the presentation, Diana Stephenson placed strong emphasis on the rationale for rolling out zero carbon step code by 2030 specifically, as it provides BC Hydro with the much needed room it requires to ensure that consumer's needs can be met. • Ms. Stephenson was also emphatic that municipalities seeking to implement zero carbon step code more aggressively than the province's 2030 timeline need to consult BC Hydro first. Capacity limitations/constraints are top of mind and being able to provide consumers with reliable service is paramount. Additional Considerations The Port Moody Climate Action Committee met on April 22 and Sustainability and Energy Coordinator - Mariana Berlanga and Senior Sustainability and Energy Coordinator -Chris Brown had a Zero Carbon Step Code Presentation which has very similar graphics to those in Maple Ridge Zero Carbon Step Code webpage. The team was seeking feedback from the Committee before presenting to council. They understand that the Tri-Cities, Coquitlam and Port Coquitlam, are prioritizing housing policy and affordability above step code policy but Port Moody would like to align more with New Westminster and Burnaby. These four recent meetings provide a good snapshot of the discussions that are currently being had around step code. If not done already, we strongly suggest engaging with senior BC Hydro staff ahead of report conclusion to discuss available capacity and whether it can support Maple Ridge's step code aspirations. It would also be worthwhile to engage with Homebuilders Association of Vancouver (HAVAN) to seek broader feedback from builders that have experience building to varying degrees of Step Code environments and its implications, as well as engage with the Maple Ridge Climate Hub. FortisBC and Maple Ridge have recently engaged in discussions to conduct an 'Emissions Reduction Pathway Study' to explore various pathways for the City to achieve it's Municipal emissions reductions targets (45% reduction by 2030, net-zero by 2050 from 2010 levels). It would be advisable to allow this study to conclude in order to leverage insights into the capital costs and economics associated with decarbonizing a group of buildings. Our suggestion would be that the City ensure a broad and detailed consultation is conducted and a concerted effort made to solicit feedback from builders, businesses, residents, etc. The forum for Builders represents a good starting point, but with only 12 participating the results may inadequate given the small sample size in contrast with the city-wide implications of any proposed policy. It is worth noting that Port Moody is seeking to have some speakers come in and talk about the barriers and challenges and are looking to create more of a brainstorm with City Staff and Builders. In the Climate Action Meeting they mentioned partnering with other municipalities on this and we would be happy to connect you if that's helpful. We feel it's important to also provide you with the link to the electrification study that was filed with the BCUC as part of the proceedings for the FortisBC Energy Inc Long-Term Resource Plan. The preliminary study demonstrates that moving away from reliable fuel sources such as natural gas too quickly will raise capital costs and rates for customers. The gas system paired with smart electrification helps ensure our energy network has the capacity required to maintain energy security and reliability, especially during times of peak demand. Both systems are critical and neither can handle the growing need for energy on its own. Attachment G -Fortis BC -Zero Carbon Step Code Communication We commend Maple Ridge's desire to be a leader in this space and for the work being undertaken. We also recognize that affordability and resiliency are equally critical for ensuring the community's needs are being addressed. As we navigate an economic climate in which citizens are struggling to afford basic necessities as well as homes to live in, we hope that these are also considerations being taken into account. The Province understands that we all need to take action, and has thoughtfully provided a timeline that can still be interpreted as ambitious. However, we are concerned that moving even faster while in pursuit of it may seem a noble cause, in reality such an approach can have unintended affordability consequences as experienced in other Lower Mainland communities, in addition to further exacerbating existing electric capacity issues. Implementing the top levels of the ZCSC now would accelerate the province's proposed timeline by 6 years, which in turn would have extensive implications for the provincial electric utility's plans to upgrade its own infrastructure to meet today's needs. Governments and energy utilities, FortisBC included, have a common goal to decarbonize our energy system and I look forward to continuing to work with you to help meet Maple Ridge's targets in a way that allows your City to thrive! If you have any questions or seek further information regarding anything mentioned above, please don't hesitate to reach out to me directly. In Kindness, Amber Amber Sadgrove (she/her) COMMUNITY RELATIONS MANAGER 1 REPORT Net Zero Code Adoption: Report and Recommendations for the City of Nanaimo CITY OF NANAIMO JUNE 8, 2023 introba.com Attachment H 2 Contents Introduction ............................................................................................................................................................................................ 3 Background ............................................................................................................................................................................................. 4 Voluntary Implementation ....................................................................................................................................................... 6 Low-carbon Energy System Pathways................................................................................................................................. 7 Local Government Adoption of Zero Carbon Step Code ............................................................................................ 7 Benefits and Risks of Higher Steps ............................................................................................................................................. 10 Benefits of High Performance Buildings .............................................................................................................................. 10 Potential Risks of High Performance Buildings ................................................................................................................. 13 Exploring Policy Options for the City of Nanaimo ............................................................................................................... 16 What We Heard: Summary of Staff and Industry Feedback ........................................................................................ 17 Summary of Industry Workshop, Survey, and Interviews ......................................................................................... 18 Summary of Staff Workshop ................................................................................................................................................ 19 Importance of Alignment Between Local Governments ........................................................................................... 20 Modelling Potential Emissions Reductions ......................................................................................................................... 20 Recommendations for Step Code Adoption .......................................................................................................................... 24 Recommended Approach – Accelerate Zero Carbon Step Code and BC Energy Step Code Adoption 24 Alternate Approach- Accelerate Zero Carbon Step Code Adoption ................................................................... 25 Important Next Steps .................................................................................................................................................................. 26 Appendix A: Modelling Methodology....................................................................................................................................... 27 Appendix B: Industry Workshop Summary ............................................................................................................................. 29 Appendix C: Staff Workshop Summary ..................................................................................................................................... 39 Appendix D: Industry Workshop Presentation ...................................................................................................................... 41 3 Introduction The City of Nanaimo (CoN) has committed to reducing community-wide emissions by 50-58% below 2010 levels by 2030 and between 94-107% by 2050. As buildings accounted for 31% of community emissions in 2017, reducing emissions from space heating and hot water is a key step in meeting this commitment. Local governments with similar goals have all begun to address emissions from the building sector by leveraging the BC Energy Step Code to establish requirements for new construction to ensure homes and buildings are designed and constructed properly from the start. The CoN is among those who have implemented the BC Energy Step Code ahead of the provincially mandated baseline, and currently requires Step 3 (of 5) for single family homes and townhouses (i.e. Part 9 buildings) and Step 2 (of 3 or 4) for commercial and multi-unit residential buildings (i.e. Part 3 buildings). The City’s rezoning bylaw also requires applicants to either achieve one step higher than municipal requirements, or else achieve the current step but with a low-carbon energy system, and the density bonusing provides an incentive for builders and developers to build beyond base BC Energy Step Code requirements. 1,2 However, it is evident that adoption of the BC Energy Step Code alone is insufficient to drive the emissions reductions necessary to meet Nanaimo’s climate goals. As such, Nanaimo’s City Plan: Nanaimo Reimagined adopted in July 2022, and the DRAFT Integrated Action Plan gives direction to: • Accelerate zero carbon and energy efficient building design and practices for all new construction before 2030, and require this for all new construction after 20303 • Support, prioritize, and advocate for low carbon energy systems in all new construction.4 • Confirm final steps with respect to Nanaimo’s Energy Step Code implementation strategy, to ensure higher Step Code compliance requirements come into effect before the Provincial mandated implementation timelines5 On May 1, 2023, the Province of British Columbia amended the BC Building Code to increase base Energy Step Code requirements and introduce the Zero Carbon Step Code. These recent changes in the base code provide a key opportunity for the City of Nanaimo to revisit its current approach to regulating the energy and carbon performance of new construction. The purpose of this report is to help inform this effort by drawing from multiple sources of information, including: • A background review of Nanaimo’s current approach to the regulation of energy efficiency and renewable energy in new construction 1 City of Nanaimo. BC Energy Step Code Rezoning Policy. 2021. https://www.nanaimo.ca/docs/property-development/community-planning-and-zoning/bc-energy-step-code-rezoning-policy.pdf 2 City of Nanaimo. Zoning Bylaw No. 4500. 2021. https://www.nanaimo.ca/bylaws/ViewBylaw/4500.pdf 3 City of Nanaimo. City Plan – Nanaimo ReImagined. 2022. https://www.nanaimo.ca/property-development/community-planning-land-use/city-plan 4 Ibid. 5 City of Nanaimo. DRAFT Integrated Action Plan. 2023. https://www.nanaimo.ca/docs/city-plan-documents/iap-draft.pdf 4 • A survey of current practices that other local governments in BC have taken with respect to the Energy Step Code, as well as past and current methods of encouraging or requiring lower carbon performance • Quantitative modelling of different potential implementation pathways to estimate their emissions reduction potential and contribution towards Nanaimo’s climate targets • A survey issued to members of the local building industry in the RDN to gauge experience and support for constructing to higher levels of performance • A 2-hour online workshop with local industry members held on May 9th, 2023, and • A second 2-hour industry workshop held with local planning, permitting and/or building inspections staff of local governments within the RDN, held on May 18th, 2023. • Three interviews with social housing providers in May 2023. This report provides a summary of the results of this work and draws on these various sources of insight to provide the City of Nanaimo with a recommended pathway for further Step Code adoption. Background The BC Energy Step Code has been in effect since 2017. Introduced to help provide consistency in the regulation of new construction across the province, this “stretch code” increases minimum levels of energy efficiency for new homes and buildings every 5 years (see Figure 1). While the Province mandates a base level of performance via the BC Building Code, local governments may require higher levels of the BC Energy Step Code provided they consult with their local building industries. Figure 1. Provincial Timeline for BC Energy Step Code Implementation On May 1st, 2023, the Province increased the minimum building code to Step 3 for Part 9 buildings, and Step 2 for Part 3, which now aligns with the City of Nanaimo’s current implementation of the BC Energy Step Code. Alongside this increase, the Province also introduced the Zero Carbon Step Code, which local governments may now also opt into to require a reduction in greenhouse gas (GHG) emissions. The introduction of the Zero Carbon Step Code marks an important milestone for local governments interested in pursuing emissions reductions in the building sector, as homes and buildings designed even 5 to the highest steps of the BC Energy Step Code can emit significant greenhouse gas emissions when designed using fossil fuel-based mechanical systems. The Zero Carbon Step Code has different targets and compliance pathways for different building types. For Part 3 buildings, a greenhouse gas intensity (GHGI)6 target is used that varies based on building type (see Table 1). These targets can be achieved by electrifying an increasing number of building systems (e.g. space heating and hot water). Table 1: Zero Carbon Step Code requirements (Part 3) Building Type Moderate kgCO2e/m2/year Strong kgCO2e/m2/year Zero kgCO2e/m2/year MURB 7 3 1.8 Office 5 3 1.5 Retail 6 3 2 Hotel 9 4 2 Implications Zero carbon space heating Zero carbon space and water heating Zero carbon energy systems For Part 9 buildings, the Zero Carbon Step Code offers three different compliance pathways (see Table 2): 1) Quantity of carbon pollution. Intended for smaller homes, this compliance path establishes a maximum GHG emissions cap that the whole home can emit. 2) Intensity of carbon pollution. Similar to the Part 3 pathway, this compliance option establishes a maximum GHGI per home, but also introduces a total GHG emissions cap. 3) Prescriptive approach: This pathway requires emissions reductions from different uses, starting with space heating only, moving to include domestic hot water and ultimately, cooking equipment. Table 2: Zero Carbon Step Code requirements (Part 9) Compliance Pathway Moderate Strong Zero Carbon Path 1 –Quantity of carbon pollution GHG Base Allowance (kg CO2e/unit) 1050 440 265 Path 2 –Intensity of carbon pollution Building GHG Intensity (kgCO2e/m2/year) 6 2.5 1.5 GHG Maximum Cap (kg CO2e/unit) 2400 800 500 Path 3 – Prescriptive Approach 6 Greenhouse gas intensity (GHGI) is the amount of carbon produced by a building normalized for building size. The measures of GHGI is kgCO2e/m2/year 6 Prescriptive Approach Space heating must be zero carbon Space and water heating systems must be zero carbon Space and water heating and cooking must be zero carbon The introduction of the Zero Carbon Step Code enables local governments to directly regulate the emissions from new construction, rather than through energy efficiency requirements alone. Carbon regulations are essential for achieving climate targets; focusing on energy efficiency alone can still result in significant emissions from the new building sector – even at higher steps of the BC Energy Step Code (see Figure 2). Figure 2. Greenhouse gas emissions by heating type and energy step (source: Metro Vancouver Climate 2050 Buildings Discussion Paper ) Voluntary Implementation Many local governments are using incentives to drive voluntary uptake of the Energy Step Code and Zero Carbon Step Code. These voluntary measures can be used on their own, or in conjunction with Step Code adoption to encourage higher levels of performance to increase industry readiness before phasing in more stringent requirements. The key tools used to promote voluntary adoption are as follows: • Building permit fee rebates for homes meeting the upper steps of the BC Energy Step Code. Local Governments who have used this approach include the City of Richmond7, Comox Valley Regional District, Township of Langley, City of Kimberley. 7 Richmond provides a 50% building permit fee refund for Step 4, and 100% building permit fee refund for achieving Step 5 or passive house. These incentives will only be in place until the incentivized level becomes the base code. 7 • Home energy evaluations or airtightness testing rebates. Local Governments who have used this approach include the City of North Vancouver, Township of Langley, New Westminster. • Permit Fast Tracking: “Front of the line” status for all-electric/highest step project. Local Governments who have used this approach include West Vancouver and Port Coquitlam. • Density Bonusing: Additional density granted to higher performing designs. Local Governments who have used this approach include the City of Duncan, and City of Nanaimo Low-carbon Energy System Pathways. It is also worth noting that prior to the release of the Zero Carbon Step Code, many local governments throughout the lower mainland and Vancouver Island sought to address the gap in emissions regulations by introducing Low Carbon Energy System (LCES) pathways into building bylaws. The LCES pathway is effectively an incentive, which allows builders and developers to choose to either (1) achieve a GHGI target, or (2) build to a higher level of the BC Energy Step Code. These requirements have increased industries’ understanding of and experience with emissions targets. Local Government Adoption of Zero Carbon Step Code Local governments have been anticipating the implementation of the Zero Carbon Step Code, and as a result have been quick to adopt it alongside the BC Energy Step Code. Although the implementation details vary from one local government to another, at a high-level, there are two approaches that are being used: • Prioritize Carbon. With this approach, local governments prioritize building decarbonization through the rapid implementation of the Zero Carbon Step Code, without advancing Energy Step Code beyond the provincial backstop. Saanich and the City of Victoria are using this approach and will be implementing the highest level of the Zero Carbon Step Code in 2023/2024 (see Table 3 and Table 4). • Prioritize Energy and Carbon. With this approach, local governments prioritize energy and carbon by incrementally implementing Energy Step Code and Zero Carbon Step Code on roughly the same timeline. The Resort Municipality of Whistler and the City of Richmond are using this approach to get to the top level of the Zero Carbon Step Code and top or upper steps of the Energy Step Code by 2026/2027 (see Table 5 and Table 6). The tables below outline the detailed implementation timelines for each local government. The variation in the approaches reflects differing community priorities, and feedback from industry on local readiness. Source: City of Richmond. Incentives for New High-Performance Single-Family and Duplex Dwellings. 2021. https://www.richmond.ca/__shared/assets/building4657805.pdf 8 City of Victoria Table 3. City of Victoria Energy Step Code and Zero Carbon Step Code Implementation Timeline8 Part 9 Buildings Implementation Timeline May 1, 2023 November 1, 2023 N/A Single Family Dwelling, duplex, or townhomes Base Code (Energy Step 3) Base Code (Energy Step 3) + Zero Carbon Performance N/A Part 3 Buildings May 1, 2023 July 1, 2024 November 1, 2024 Residential (4-6 storey) Energy Step 3 Energy Step 3 + Zero Carbon Performance Energy Step 3 + Zero Carbon Performance Residential (+6 storey) Base Code (Energy Step 2) Base Code (Energy Step 2) Base Code (Energy Step 2) +Zero Carbon Performance Commercial Base Code (Energy Step 2) Base Code (Energy Step 2) Base Code (Energy Step 2) +Zero Carbon Performance Saanich Table 4. Saanich Energy Step Code and Zero Carbon Step Code Implementation Timeline9 Part 9 Buildings Implementation Timeline May 1, 2023 November 1, 2023 N/A Single Family Dwelling, duplex, or townhomes Base Code (Energy Step 3) + Measure only Carbon Base Code (Energy Step 3) + Zero Carbon Performance N/A Part 3 Buildings May 1, 2023 July 1, 2024 November 1, 2024 Residential (4-6 storeys) Base Code (Energy Step 2) + Measure Only Carbon Base Code (Energy Step 2) + Zero Carbon Performance Base Code (Energy Step 2) + Zero Carbon Performance Residential (+6 storey) Base Code (Energy Step 2) +Measure Only Carbon Base Code (Energy Step 2) Base Code (Energy Step 2) + Zero Carbon Performance Commercial Base Code (Energy Step 2) + Measure Only - Carbon Base Code (Energy Step 2) Base Code (Energy Step 2) + Zero Carbon Performance 8 City of Victoria. BC Energy Step Code. https://www.victoria.ca/EN/main/residents/planning-development/development-services/green-buildings.html#:~:text=When%20and%20how%20are%20these,buildings%20by%20November%201%2C%202024. 9 Saanich. BC Energy Step Code and Zero Carbon Step Code. https://www.saanich.ca/EN/main/community/sustainable-saanich/bc-energy-step-code-and-carbon-pollution-standard.html 9 City of Richmond Table 5. City of Richmond Energy Step Code and Zero Carbon Step Code Implementation Timeline10,11 Building type Implementation Timeline Oct 1, 2023 January 1, 2025 to December 31, 2026 After January 1, 2027 Part 9 Single Family Dwelling, duplex, or townhomes Step 5 + Moderate Carbon or Step 4 + Strong Carbon or Step 3 + Zero Carbon Step 5 + Strong Carbon or Step 4 + Zero Carbon Step 5 + Zero Carbon Part 3 Residential concrete towers Step 3 + TBD ZCSC level or Step 2 TBD ZCSC level Step 4 + TBD Carbon Level or Step 3 Carbon Level Step 4 + TBD Carbon Level Residential low/mid-rise Step 4 + TBD ZCSC level or Step 3 TBD ZCSC level Step 4 + TBD Carbon Level Step 4 + TBD Carbon Level Office & retail buildings Step 3 + TBD ZCSC level or Step 2 TBD ZCSC level Step 3 + TBD Carbon Level Step 3 + TBD Carbon Level Hotels and Motels Step 4 + TBD ZCSC level or Step 3 TBD ZCSC level Step 4 + TBD Carbon Level or Step 3 TBD Carbon Level Step 4 + TBD Carbon Level Resort Municipality of Whistler Table 6. Resort Municipality of Whistler Energy Step Code and Zero Carbon Step Code Implementation Timeline12 Building type Implementation Timeline January 2024 2026 onward Part 9 Single Family Dwelling, duplex, or townhomes Step 4 + Strong Carbon Performance Step 4 + Zero Carbon Performance SFD or duplex with in-ground basement floor area exclusion Step 5 + Strong Carbon Performance Step 5 + Zero Carbon Performance Part 3 Residential Step 3 + Strong Carbon Performance Step 3 + Zero Carbon Performance Commercial Step 2 + Strong Carbon Performance Step 3 + Zero Carbon Performance 10 City of Richmond. Energy Step Code. Part 3 Buildings. 2023. https://www.richmond.ca/__shared/assets/building4051958.pdf 11 City of Richmond. Energy Step Code: Part 9 Buildings Overview. 2023. https://www.richmond.ca/__shared/assets/building3751347.pdf 12 Resort Municipality of Whistler. BC Energy Step Code. 2023. https://www.whistler.ca/business/land-use-and-development/building/bc-energy-step-code/#:~:text=Working%20towards%20the%20top%20level,only%20low%20carbon%20heating%20systems. 10 Benefits and Risks of Higher Steps The following section summarizes the benefits and challenges of adopting higher levels of the BC Energy Step Code and Zero Carbon Step Code. Benefits of High Performance Buildings There are several documented benefits of improved energy efficiency and zero carbon emissions, which are explained below: 1. Potential to lower energy bills for residents and tenants. Energy efficient buildings have lower overall demand for energy, which lowers utility costs for building occupants (both tenants and owners). All electric buildings have also been shown to result in utility savings when high performance electric equipment such as a heat pump is installed. Table 7 outlines the modelled range of utility cost savings associated with Zero carbon performance and the upper steps of the BC energy Step Code, which indicates that in most cases, utility costs decrease with electrifications and efficiency measures. The exceptions that can be noted in this table are the potential increases in costs for singe family homes, which are driven primarily by smaller home archetypes (i.e., under 1100 ft2). Such costs can be avoided through the careful selection of higher efficiency mechanical systems. 2. More durable envelopes with lower replacement needs. Higher levels of energy efficiency (and thermal energy demand intensity in particular) require higher quality, thicker and better sealed building envelopes. This means lower potential for moisture ingress that can cause building exteriors to fail prematurely, lowering the potential for costly repairs or replacements. 3. Avoided cost of future retrofits. Accelerated adoption of both energy efficiency and zero carbon standards will help protect home and building owners from the need to replace or upgrade their building systems and components under incoming provincial requirements for existing buildings. These requirements are currently under development, but are likely to include time of replacement or installation requirements for higher efficiency equipment, as well as requirements to upgrade building components such as windows, walls and doors to meet higher efficiency standards when undertaking renovations. 4. Significantly reduced carbon emissions. While reduced emissions benefit the City of Nanaimo in achieving their climate targets, many companies and portfolio owners are also setting their own climate and sustainability targets. Ensuring high performing buildings will help attract businesses and tenants looking for leasable area that helps them meet those targets, while homeowners interested in having a lighter footprint will appreciate a zero carbon home. 5. Quieter and more comfortable homes. As noted above, higher efficiency homes and buildings are designed with better envelopes and careful window placement, which help keep indoor temperatures comfortable year-round. With the electrification of space heating that comes with the Zero Carbon Step Code, many building occupants will also benefit from heat pump-based mechanical systems that provide both heating and cooling. 11 6. Healthier indoor and outdoor air quality. The elimination of fossil fuel-based systems from homes and buildings improves outdoor and outdoor air quality. • Natural gas equipment and appliances, specifically natural gas stoves, release NO2 into homes and buildings which can exacerbate pre-existing health conditions like chronic obstructive pulmonary disease (COPD), heart disease, and diabetes.13 • poorly adjusted, maintained, or ventilated gas appliances can result in gas leaks or incomplete combustion that expose individuals to dangerous and potentially fatal levels of carbon monoxide.14 • Burning fossil fuel in furnaces vents pollutants, specifically PM2.5, into the atmosphere.15 PM 2.5 has been linked to short and long-term respiratory issues. 7. Resilience. Higher performance buildings also improve resilience to climate change by safeguarding against increasing temperatures through mechanical cooling, and maintaining indoor temperatures for longer periods of time in the case of power outages. 8. Equity: Pollution from buildings disproportionately impacts low-income communities and communities of colour. Addressing these emissions will help reduce this disproportionate burden. Energy efficient homes will also reduce in energy savings reducing the economic burden for homeowners to pay high utility bills 9. Market Demand: A high energy efficiency home is viewed as increasing desirable by potential home buyers. In a 2020 survey by the Canadian Home Builders Association (CHBA). Nine out of 10 respondents said they either “really want” or “must have” an energy-efficient home. An “overall energy efficient home” was list as the third most desirable feature prospective homeowners look for in a new home. High-efficiency windows come in at number four, a high efficiency low carbon heating system is also made buyers top ten list of priorities at number nine.16 13 Brady Seals and Andee Krasner. Health Effects from Gas Stove Pollution, Rocky Mountain Institute, Physicians for Social Responsibility. 2020, https://rmi.org/insight/gasstoves-pollution-health 14 United States Environmental Protection Agency. Carbon Monoxide’s Impact on Indoor Air Quality. https://www.epa.gov/indoor-air-quality-iaq/carbon-monoxides-impact-indoor-air-quality 15 Jonathan J Buonocore, et al. A decade of the U.S. energy mix transitioning away from coal: historical reconstruction of the reductions in public health burden of energy. Energy Research. 2021. https://iopscience.iop.org/article/10.1088/1748-9326/abe74c 16 Zebx. Marketing the high-performance home. 2021. https://www.zebx.org/marketing-the-high-performance-home-4/ 12 Table 7: Modelled changes to operational costs associated with Energy Step Code and Zero Carbon Step Code17 Building Type Energy Step Code Zero Carbon Step Code Utility Cost Single family homes 4 Zero Carbon +7% – -4% 5 Zero Carbon +5% – -12% High Rise MURB 3 Zero Carbon -9% – -11% 4 Zero Carbon -11% – -24% Low Rise MURB 3 Zero Carbon -9% – -11% 4 Zero Carbon -11% – -24% Row Homes 4 Zero Carbon -21% 5 Zero Carbon -25% Quadplex 4 Zero Carbon – 5 Zero Carbon – Office 3 Zero Carbon -18% The baseline in this table is the BCBC (i.e. Step 3 equivalent for Part 9 buildings and Step 2 equivalent for Part 3 buildings) 17 Province of British Columbia. Draft Building Carbon Pollution Standard for Part 9 Buildings in British Columbia. 2022. https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/construction-industry/building-codes-and-standards/reports/part_9_technical_analysis_2022_revoct3_2022.pdf Text Box 1. Common Myths about All Electric Buildings #1 Electric buildings need natural gas backup. There is a common misconception that relying solely on electricity puts residents at greater risk in the case of a power outage (compare to having both natural gas and electricity). In general, gas heating systems will not operate during a power outage as they use components that require electricity to operate, including circuit boards, relays and blower motors and fans. An exception is when homeowners can light a natural gas fireplace or stove with a match; the same is true for some older domestic hot water systems. #2 BC won’t have enough electricity to meet future demand for homes and vehicles. BC Hydro is planning for the rapid scale up of building, vehicle and industry electrification, and has developed near- and long-term actions to meet the scale of electrification required for achieving the provincial government’s climate targets. The utility continuously updates these plans and projections in response to changing conditions (i.e. government policy and regulation, and market conditions). 13 Potential Risks of High Performance Buildings Despite the benefits of high performance low carbon buildings, there some risks and challenges to consider, many of which can be addressed through complementary policies/programs. 1. Higher utility costs with electrification. Buildings and homes designed with low efficiency heating system, like electric baseboard heating, and baseline energy efficiency may have a higher energy costs than average new construction. 2. Increased capital costs. Building high performance electric buildings can result in marginal increases in capital costs (see Table 8 and Table 9). The costs studies reference for this analysis indicate that this is often 1-4% for BC Energy Step Code and an additional 1-2% for achieving zero carbon levels of performance (note these costs reference NECB 2017 as the baseline, and not the newly amended BCBC). Industry members consulted through this project indicated that achieving Step 3 for Part 3 buildings or Step 4 for Part 9 buildings results in a negligible cost increase; however, there are still additional costs for achieving the top steps. As the industry gains more experience, and demand for cooling increases the incremental costs for high performance electric buildings will decrease. 3. Limited electrical capacity/potential need for electrical upgrades. Electrifying a building and incorporating EV charging will sometimes require an electrical service upgrade. The timelines for upgrading electrical service can be long and the costs can be very high – although they vary by project. However, BC Hydro is in the process of revising its Distribution Extension Policy to address both costs and timeline barriers.18 Addressing electrical capacity early in the development process can reduce or eliminate any delays caused by electrical service upgrade requirements. 4. Increase in embodied carbon. There is some evidence that suggests that the embodied carbon from high efficiency homes can result in a net increase in emissions. In this case, the emissions from the additional materials that are needed for a high performance envelope, are greater than carbon savings for the building operations over its lifespan.19 Policies to measure and manage emissions from embodied carbon can be introduced to mitigate this potential impact. 5. Need to ensure careful design to avoid overheating. There are a number of examples of high performance buildings that have issues with overheating. This is a common problem if buildings are not incorporating passive cooling measures, and/or mechanical cooling. Ideally, all buildings should incorporate passive cooling to bring down the cooling load, and any additional cooling needs can be met through mechanical cooling (e.g. an electric heat pump).20 18 BC Hydro. Improving Customer Connections for a Cleaner Future. 2023. https://app.bchydro.com/content/dam/BCHydro/customer-portal/documents/accounts-billing/electrical-connections/electrical-connection-process-improvements-overview-feb2023.pdf 19 Chris Magwood et al. Achieving Real Net-Zero Emissions Homes: Embodied Carbon Scenario Analysis of the Upper Tiers of Performance in the 2020 Canadian National Building Code. 2021. https://www.buildersforclimateaction.org/uploads/1/5/9/3/15931000/bfca-enercan-report-web_08_21.pdf 20 BC Housing. BC Energy Step Code Design Guide Supplement S3 on Overheating and Air Quality. 2019 https://www.bchousing.org/publications/BC-Energy-Step-Code-Guide-Supplemental.pdf 14 6. Need for additional training for municipal staff and industry members. Building high performance low-carbon buildings requires a learning curve for both municipal staff and industry. Industry members noted the importance of using an integrated design process (IDP) for high performance buildings, as well as increasing experience and competency for specific measures such as air sealing, and heat pump installations. 7. The use of renewable natural gas (RNG). RNG can be used in homes and buildings to decarbonize heating and hot water systems. However, there is currently no mechanism to ensure that the building continues using RNG after it is occupied, and doesn’t switch to (cheaper) conventional natural gas. There is also a limited amount of RNG, and many energy and climate experts advocate that it should be reserved for hard-to-electrify sectors (e.g. heavy industry and aviation), and not used in buildings. Table 8: Modelled incremental capital cost increases associated with higher BC Energy Step Code tiers21 Building Type Energy Step Code Incremental cost increase range (%)* Single family homes 4 0% -5% 5 1% - 7% High Rise MURB 3 1% - 4% 4 1%- 6% Low Rise MURB 3 1% - 2% 4 3% Row Homes 4 0-2% 5 2% Quadplex 4 2% 5 4% Office 3 -2%-0% 21 Based on BC Energy Step Code Metrics Report Update (2022); City of Surrey Step Code Costing Study; City of Vancouver Zero Emissions Building Plan: Rezoning Cost Comparison; Getting to Zero: A High-Performance Energy Policy for New Buildings in the City of Richmond. Note: outlying values have been excluded from this table. 15 Table 9: Modelled incremental capital cost increases associated with higher Energy Step Code tiers + Zero Carbon22 Building Type Energy Step Code (Baseline) Zero Carbon Step Code Incremental cost increase range (%) Single family homes 4 Zero Carbon 0% – 1% 5 Zero Carbon 0% – 2% High Rise MURB 3 Zero Carbon 0% – 2% 4 Zero Carbon 0% – 1% Low Rise MURB 3 Zero Carbon 0% – 2% 4 Zero Carbon 0% – 1% Row Homes 4 Zero Carbon - 5 Zero Carbon - Quadplex 4 Zero Carbon 1% – 2% 5 Zero Carbon 1% – 2% Office 3 Zero Carbon 3% 22 Province of British Columbia. Draft Building Carbon Pollution Standard for Part 9 Buildings in British Columbia. 2022. https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/construction-industry/building-codes-and-standards/reports/part_9_technical_analysis_2022_revoct3_2022.pdf 16 Exploring Policy Options for the City of Nanaimo To help determine the best pathway forward for the City of Nanaimo, six combinations of code adoption pathways were explored for their potential impact on community-wide emissions (see Table 10). Pathways were selected in consultation with City of Nanaimo staff and were based on a number of factors, including precedents set by other municipalities in BC, associated benefits and costs of higher levels of performance, and alignment with the City’s overall level of ambition and climate targets. The four pathways selected for further study are as follows: • Pathway #1: Accelerated Energy Efficiency. This pathway assumes an accelerated adoption of BC Energy Step Code only. Adoption of the Zero Carbon Step Code follows the assumed base code schedule of a moderate requirement in 2024, a strong requirement in 2027, and a zero carbon requirement in 2030 for all building types. • Pathway #2: Accelerated Carbon Emissions Reductions. This pathway assumes an accelerated adoption of the Zero Carbon Step Code. Adoption of the BC Energy Step Code is assumed to follow the provincial base code schedule for all building types. • Pathway #3: Accelerated Energy Efficiency and Emissions Reductions. This pathway assumes the accelerated adoption of both the BC Energy Step Code and Zero Carbon Step Code. • Pathway #4 Voluntary Interventions. This pathway assumes the adoption of the Provincial base code schedule for both the BC Energy Step Code and the Zero Carbon Step Code, but that the City will use incentives and targeted intervention to encourage early adoption. Example incentives include rezoning bylaws, financial incentives, and non-financial incentives (e.g. permit fast tracking and density bonusing). This option can be used in conjunction with pathways #1, #2 or #3, or on its own. Based on precedence in other jurisdictions, there were two main timelines explored for each pathway: 1. Incremental Approach. Using this timeline, CoN would stay one step ahead of the Provincial backstop for the BC Energy Step Code and/or the Zero Carbon Step Code. This approach is being used by the City of Richmond. 2. Leap Frog Approach. Using this timeline, CoN would skip to the highest step of the BC Energy Step Code and/or level of the Zero Carbon Step Code. This approach was used by the Saanich and City of Victoria. 17 Table 10. Policy Options Explored Through Engagement and Analysis Pathways Incremental Approach –2024/25 “Leap Frog” Approach – 2024/25 Provincial Backstop Implementation Timeline Part 3 Part 9 Part 3 Part 9 Part 3 Part 9 Pathway #1: Accelerate Energy Step Code Step 3 Step 4 Step 4 Step 5 Energy Step Code 2027 Step 3 2032 Step 4 Zero Carbon Step Code 2024 Moderate? 2027 Strong? 2030 Zero BC Energy Step Code 2027 Step 4 2032 Step 5 Zero Carbon Step Code 2024 Moderate? 2027 Strong? 2030 Zero Provincial backstop for Zero Carbon Step Code Pathway #2: Accelerated Zero Carbon Step Code Moderate Carbon Moderate Carbon Zero Carbon Zero Carbon Provincial backstop for Energy Step Code Pathway #3: Accelerated Energy And Zero Carbon Step Code Step 3 with Moderate Carbon Step 4 with Moderate Carbon Step 4 with Zero Carbon Step 5 with Zero Carbon What We Heard: Summary of Staff and Industry Feedback To gain an understanding of the local building industry’s experience and readiness for complying with higher levels of the Energy and Carbon Step Codes, a number of engagement methods were used: 1) an 18-question survey deployed for a period of two weeks, 2) two-hour online workshop with 48 industry attendees, 3) two-hour online workshop with 11 staff attendees from local governments throughout the RDN, and 4) interviews with social housing providers). The purpose of the engagement was to: • Provide an overview of local government decarbonization goals and the role and benefits of net- zero energy-ready (NZER) and zero carbon (ZC) buildings • Present case studies/examples of successful NZER or ZC buildings in the region • Understand industry and staff readiness for BC Energy Step Code and Zero Carbon Step Code implementation • Workshop a shortlist of new construction policy options for staff and industry discussion and feedback 18 Figure 3. Key Engagement Activities and Participants Summary of Industry Workshop, Survey, and Interviews Opportunities High level feedback heard from Part 9 stakeholders included the following: • In general, there is a very high level of support for the acceleration of BC Energy Step Code and Zero Carbon Step Code, and an acknowledgment for the need for regulation to achieve the scale of high performance building necessary to reduce emissions • Most builders and designers already had experience with the upper steps of the BC Energy Step Code and the electric systems that would be required to comply with the Zero Carbon Step Code • Those who had built to higher levels of the Energy Step Code found it was easier than anticipated • Many also noted that customers are already requesting more energy efficient buildings, and that younger clients tend to prefer all-electric buildings High-level feedback from Part 3 stakeholders included the following: • Many industry members are already building all-electric buildings and/or to higher levels of the BC Energy Step Code • Portfolio holders such as BC Housing and local school districts, as well as any Canada Mortgage and Housing Corporation (CMHC)-funded projects already require the achievement of upper steps of the Energy Step Code and/or all-electric designs • Industry members found that building to Step 3 (i.e. the highest step for commercial buildings, and the second highest step for multi-unit residential buildings) to be very cost effective Challenges Despite the support and familiarity with energy efficient and/or electric buildings, industry members shared a number of challenges– predominantly pertaining to the need for education and capacity building of clients/developers, owners, and trades; conflicting requirements in municipal bylaws and guidelines; and the pace and cost of necessary utility connections. Table 11 outlines some of the key challenges raised across both Part 3 and Part 9 stakeholders. Industry Workshop •48 participants Staff Workshop •11 participants Survey •26 responses Interviews •3 interviews with social housing providers Participants •Consultants •Architects •Home builders •Developers •Engineers •Energy advisors/ modellers•Contractors and trades•Social housing providers 19 Table 11: Key Challenges Raised by Industry Stakeholders Category Part 9 Part 3 Regulatory • Municipal bylaws that set requirements for maximum gross floor area and height restrictions can limit energy efficient design • Form and character guidelines in some communities make it difficult to achieve the upper steps of the BC Energy Step Code Informational • Insufficient information about Zero Carbon Step Code • Client perception of electric high performance homes as more expensive/less desirable • Preference for gas among some developers Structural • High or unexpected BC Hydro interconnection fees • BC Hydro can be unresponsive and create timeline delays • Supply chain challenges for some equipment Industry capacity • Need for mechanical trades to improve the quality of installation • Need to improve trades’ knowledge and experience with air sealing Financial • Integrated design processes are needed to save time and money • Increased cost can occur in achieving Step 4 of the BC Energy Step Code • Need for energy modellers to be involved in the project from the outset to help identify options early on Recommended Supports Participants indicated a range of supports that could be paired with the BC Energy Step Code and Zero Carbon Step Code to ease compliance for industry, home and building owners. These include: • Bylaw and design guideline amendments to remove barriers to energy efficient/low-carbon design. • Support for technical training for building industry members • Awareness building for homeowners on the benefits of energy efficient/low-carbon design. • Rebates and permit fast-tracking to incentivize early adoption of higher levels of performance Summary of Staff Workshop At the staff workshop, the key takeaways from the industry workshop were presented, and staff were asked to provide feedback on policy pathways and support measures. In general, staff also expressed a high level of support for the implementation of the BC Energy Step Code and the Zero Carbon Step Code. High-level feedback from staff included the following: • Staff acknowledge the conflicts with achieving the higher steps of the Energy Step Code and complying with form and character guidelines in certain neighbourhoods. However, they also acknowledged the challenges of changing the historical guidelines due to competing community priorities. 20 • City of Nanaimo staff already have experience implementing the BC Energy Step Code. They have found the process is straightforward and has not resulted in any delays in permitting timelines. They did not express any concerns with their internal capacity to implement the requirement of the BC Energy Step Code or the Zero Carbon Step Code. • Staff emphasized the need for education for industry, staff and the public to ease implementation, and dispel some of the common misconceptions about high performance buildings. Importance of Alignment Between Local Governments Staff and industry were asked about the importance of alignment between local governments within the RDN. Both staff and industry saw the benefits of aligning the Energy Step Code and Zero Carbon Step Code throughout the Region. Industry members felt that having consistency simplifies expectations and creates baseline competencies for the industry. Generally, they preferred having alignment throughout the Region, even if this increases requirements in some communities. Staff and industry also acknowledged that there were significant challenges to aligning requirements across all local governments. They indicated that, although ideal, alignment should not hold up progress for local governments who are ready to implement requirements. Staff suggested that a degree of alignment could be achieved by working together on messaging, education, outreach, and engagement. They also suggested exploring a standardized implementation pathway throughout the Region, even if the implementation timelines were not aligned. Staff cautioned, that the Zero Carbon Step Code has created the possibility of more implementation pathways, and could lead to increasing divergence throughout the Region if alignment is not kept in mind. Modelling Potential Emissions Reductions A modelling exercise was conducted to explore the impact of different code adoption pathways on GHG emissions in Nanaimo between 2023 and 2050. The modelling specifically looks at the operational GHG emissions associated with the new construction, redevelopment and major renovation of buildings subject to the Energy Step Code and the Zero Carbon Step Code. The pathways (referred to as “scenarios” in the modelling outputs), were selected based on the feedback from staff and industry consultation, and input from the City of Nanaimo staff to ensure the accelerated scenarios align with community priorities (see Table 12). Table 12: Code adoption scenarios Scenario Description Baseline Follows the provincial timeline for the Energy Step Code (ESC) and the Zero Carbon Step Code (ZCSC). Rezoning Only Follows the provincial timeline for the ESC and the ZCSC but rezoning requirements encourage developers to build to the highest step of the ZCSC and the highest step of the ESC ahead of time. Incentives Only Follows the provincial timeline for the ESC and the ZCSC but developers are incentivized to build to the highest step of the ZCSC and the highest step of the ESC ahead of time. 21 Accelerated ESC Only The City of Nanaimo adopts an accelerated timeline for the Energy Step Code, bringing the year of each step forward. The ZCSC follows the provincial timeline. No incentives or rezoning requirements encourage steps above what is required in these timelines. Accelerated ZCSC Only The City of Nanaimo adopts an accelerated timeline for the ZCS, leapfrogging requirements for the ‘Moderate’ and ‘Strong’ steps and requiring ‘Zero’, the highest step, from February 1,2024 for Part 3 and 9 buildings. The ESC follows the provincial timeline. No incentives or rezoning requirements encourage steps above what is required in these timelines. Accelerated ESC & ZCSC The City of Nanaimo adopts an accelerated timeline for the ZCS, leapfrogging requirements for the ‘Moderate’ and ‘Strong’ steps and requiring ‘Zero’, the highest step, from February 1, 2024. The City of Nanaimo adopts an accelerated timeline for the ESC, leapfrogging to the highest steps from January 1, 2027 for Part 3 and 9 buildings. No incentives or rezoning requirements encourage steps above what is required in these timelines. Figure 4: Annual GHG Emissions from Annual New Floor Area 0 20 40 60 80 100 120 140 0 500 1000 1500 2000 2500 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Ne w F l o o r A r e a ( m 2) Th o u s a n d s GH G E m i s s i o n s ( t C O 2 e ) Annual New Floor Area (m2) Baseline Rezoning Only Incentives Only Accelerated ESC Only Accelerated ZCSC Only Accelerated ESC & ZCSC 22 The results of this exercise are shown in Figure 4, which warrant some explanation: • Differences in GHG emissions between scenarios are not seen until 2026. This is because 2024 is the first year in which a step of the Zero Carbon Step Code is encouraged or required ahead of the provincial timeline in any of the scenarios, and there is a lag of 2 to 3 years between when buildings are permitted and when they are constructed. • Differences in GHG emissions between scenarios over the baseline are predominately due to whether any new floor area is required or encouraged to meet steps of the Zero Carbon Step Code ahead of the provincial timeline. The difference is greater in scenarios that include an accelerated timeline for the Zero Carbon Step Code. • In 2033 GHG emissions associated with the new floor area is equal in all scenarios. This is because 2030 is the first year the highest step of the Zero Carbon Step Code is required in all scenarios (and there is an assumed lag of 2 to 3 years). • In the scenario where only the Energy Step Code timeline is accelerated, there is no difference in GHG emissions compared to the baseline. This is because the Energy Step Code drives energy use reduction, not GHG emissions reduction. Figure 5: Annual GHG Emissions from Cumulative New Floor Area 0 500 1000 1500 2000 2500 3000 0 2000 4000 6000 8000 10000 12000 2025 2030 2035 2040 2045 2050 Ne w F l o o r A r e a ( m 2) Th o u s a n d s GH G E m i s s i o n s ( t C O 2 e ) Cumulative New Floor Area (m2) Baseline Rezoning Only Incentives Only Accelerated ESC Only Accelerated ZCSC Only Accelerated ESC & ZCSC 23 It is also worth noting that once new buildings are constructed, they continue to emit the same GHG emissions each year (assuming they are not retrofitted). The difference in annual emissions associated with cumulative new floor area increases significantly between 2025 and 2030, reflecting buildings permitted between 2022 and 2027 (see Figure 5). With the implementation of the ‘Zero’ step of the Zero Carbon Step Code Province-wide in 2030, there is no difference in the emissions associated with the new floor area built each year from 2033 onwards. However, annual emissions across all scenarios continue to increase slowly with new floor area because the emissions associated with the highest steps of both the Energy Step Code and Zero Carbon Step Code are still not completely zero, the model assumes that there is still some natural gas use Figure 6: Cumulative GHG Emissions from New Floor Area In scenarios where the Zero Carbon Step Code timeline is accelerated, it is estimated that 21,000 tonnes fewer GHG emissions would be emitted by 2030 and 59,000 tonnes less by 2050 compared to the baseline scenario which follows the provincial timeline (see Figure 6). 0 500 1000 1500 2000 2500 3000 0 50000 100000 150000 200000 250000 2025 2030 2035 2040 2045 2050 Ne w F l o o r A r e a ( m 2) Th o u s a n d s GH G E m i s s i o n s ( t C O 2 e ) Cumulative New Floor Area (m2) Baseline Rezoning Only Incentives Only Accelerated ESC Only Accelerated ZCSC Only Accelerated ESC & ZCSC 24 Recommendations for Step Code Adoption Based on the feedback from the engagement and the modelling results, Introba, in collaboration with the City of Nanaimo developed two recommendations, including a “recommended approach” and an “alternate approach.” Both approaches prioritize the near-term implementation of the Zero Carbon Step Code. Through the engagement and modelling, this emerged as a priority based on the following rationale: • Industry and staff readiness. Both staff and industry indicated a high level of readiness for building high performance buildings in the Region and recognized the urgency for addressing emissions from buildings. • Future proofing buildings. The modelling indicates that accelerating the implementation of the Zero Carbon Step Code can save 11,000 tonnes GHG emissions by 2030 and 50,000 tonnes by 2050 compared to the baseline or accelerating the Energy Step Code alone. Buildings built today with high-emissions energy sources will also need to be retrofitted in the future to achieve climate targets and comply with forthcoming Provincial regulations. Future-proofing new buildings today, by building to zero carbon, will be more cost-effective and less disruptive in the long run. • Alignment with Vancouver Island. Alignment throughout the RDN and Vancouver Island was emphasized as highly desirable for industry members. CoN can’t align with the rest of the Region without halting its progress; however, it can align with the leaders on Vancouver Island. Consistent with the proposed approach below, Saanich and the City of Victoria will both be implementing the ‘Zero’ requirement of the Zero Carbon Step Code in November 2023 for Part 9 buildings and November 2024 for Part 3 buildings. Recommended Approach – Accelerate Zero Carbon Step Code and BC Energy Step Code Adoption The recommended approach includes adoption of the Zero level of the Zero Carbon Step Code by February 2024 and the adoption of the top step of the BC Energy Step Code by January 2027 (see Table 13). This is an ambitious approach that prioritizes carbon performance, but includes the implementation of the BC Energy Step Code in advance of the provincial timeline. These efficiency requirements will help: • Bring down energy costs. High efficiency buildings requiring a smaller heating load. • Manage electricity load. This will help reduce the need for electrical capacity upgrades and help the Province manage growing electricity demand. • Increase resilience. Efficient buildings maintain indoor temperatures for longer periods of time in the case of a power outage. • Certainty and consistency for industry. Through the engagement, industry and staff engagement noted that frequent changes to Code were an ongoing challenge, that required training education, and awareness. This approach will create consistency in the building code from 2027-2032 (and beyond), as opposed to amending the building bylaw every few years to incrementally implement the Zero Carbon Step Code and the BC Energy Step Code in advance of the provincial timeline. 25 Incentives, such as density bonusing that CoN already has in place, can also be used in the near term to support industry in gaining experience with the energy efficiency requirements in advance of the 2027 implementation date. Table 13. Recommended Approach Accelerated Zero Carbon Step Code and BC Energy Step Code Building type Proposed Approach Bylaw adoption (July 24, 2023 earliest) Feb 1, 2024 Jan 1, 2027 Part 9 Single family dwelling, duplex, or townhomes Measure only i.e. measure and report on carbon Zero Carbon Performance Step 5 Part 3 Residential (e.g. apartment building, hotels and motels) Measure only i.e. measure and report on carbon Zero Carbon Performance Step 4 Commercial (e.g. office and retail) Measure only i.e. measure and report on carbon Zero Carbon Performance Step 3 Rezoning or incentives (optional) Top step of BC Energy Step Code Top step of BC Energy Step Code n/a *RNG will not be considered a compliance pathway to achieving zero carbon requirements **Require energy labelling Alternate Approach- Accelerate Zero Carbon Step Code Adoption The alternate approach includes adoption of the Zero level of the Zero Carbon Step Code and the provincial baseline for BC Energy Step Code. This approach is similar to the recommended approach, but is slightly less ambitious as it does not include additional energy efficiency requirements. This approach will achieve essentially the same level of decarbonization as the recommended approach, and may result in slightly lower capital costs for builders, additional time for industry capacity building, and alignment with the City of Victoria and Saanich. The trade-offs (compared to the recommended approach) are higher energy bills, less resilience with power outages, and changing levels of code energy 4-5 years as the provincial backstop is increased. Table 14. Alternate Approach Accelerate Zero Carbon Step Code Adoption Building type Proposed Approach Feb 1, 2024 (Part 9) Part 9 Single Family Dwelling, duplex, or townhomes Zero Carbon Performance Part 3 Residential (e.g. apartment building, hotels and motels) Zero Carbon Performance Commercial (e.g. office and retail) Zero Carbon Performance Rezoning or incentives (optional) Top Step of BC Energy Step Code *RNG will not be considered a compliance pathway to achieving zero carbon requirements **Require energy labelling 26 Important Next Steps To support and ease the implementation of recommended or the alternate approach, there are a number of supports that the City of Nanaimo should implement. These include: • Clear communication and supporting materials. The recommendation in this report charts an implementation plan to 2030 for the Zero Carbon Step Code and the BC Energy Step Code to provide a clear and long-term signal to industry. Creating a communication and outreach plan to convey these requirements prior to implementation in 2024 will be critical to give industry time to adapt and prepare. • Removal of regulatory barriers. Industry members indicated that current bylaws and guidelines create disincentives and challenges for achieving higher levels of performance. These include form and character guidelines, setback, height, floor area and noise bylaws. CoN should review existing bylaws and explore amendments to remove barriers for high performance buildings (see Low Carbon Policy Toolkit for summary of best practices).23 • Training and support for industry. Industry members indicated that there was a need for training on specific design solutions and processes (e.g. air sealing and IDP). Training opportunities are available to attract new workers and support upskilling through the Home Performance Stakeholder Council, BCIT, ZEBx, EGBC, TECA, etc. CoN should explore how to leverage these programs and increase industry access and participation for local builders and designers. Some examples of supporting actions that emerged through the engagement and analysis include promotions, subsidies, local offerings of specific courses, and regular builder breakfasts. CoN can also amplify existing resources (e.g. BC Housing Builder Insights, Design Guide, ZebX Case Studies, etc.) and support the development of local case studies to help share lessons learned and best practices. • Educating home and building owners. Many home and building owners are still resistant to investing in high performance buildings. CoN can support industry by communicating the value proposition of high performance buildings, and dispelling common misconceptions. • Working with BC Hydro to support electrical service upgrades. Local governments also play a role in supporting BC Hydro with electrical service upgrades. Local requirements, like underground transmission lines, can significantly increase both the timelines and costs of these upgrades. CoN should work with BC Hydro to understand how to better support this process. 23 Brendan McEwan and Devon Miller. Low Carbon Building Policy Toolkit. 2021. https://docs.communityenergy.ca/wp-content/uploads/2021-03-19_BCH_LCB_Toolkit_Final.pdf 27 Appendix A: Modelling Methodology The implementation timelines of the Energy Step Code and the Zero Carbon Step Code in each scenario are detailed in Table 15. Table 15: Modelling assumptions Scenario Building Type Energy Step Code Zero Carbon Step Code 3 4 5 Moderate Strong Zero Baseline Part 9 N/A Current Step 2027 2032 2024 2027 2030 Part 3 Residential 2027 2032 N/A No Step Part 3 Commercial 2027 N/A No Step N/A No Step Rezoning Only All Buildings As per Baseline As per Baseline 16% of the new floor area is built to the highest steps each year before it is required due to rezoning requirements. Incentives Only All Buildings As per Baseline As per Baseline 10% of the new floor area is built to the highest steps each year before it is required due to incentives. Accelerated ESC Only Part 9 N/A Current Step 2024 2027 As per Baseline Part 3 Residential 2024 2027 N/A No Step Part 3 Commercial 2024 N/A No Step N/A No Step Accelerated ZCSC Only All Buildings As per baseline N/A Skipped N/A Skipped 2024 Accelerated ESC & ZCSC Part 9 N/A Current Step N/A Skipped 2026* N/A Skipped N/A Skipped 2024 Part 3 Residential N/A Skipped 2026* N/A No Step Part 3 Commercial 2026* N/A No Step N/A No Step *2026 modelled as the step is proposed for November 2025, the end of the year. The model applies greenhouse gas emission intensities (GHGIs) to projections of new floor area to estimate future greenhouse gas emissions. GHGIs were developed for each potential step combination of the Energy Step Code and Zero Carbon Step Code (e.g., Step 3 with Moderate Carbon Performance, Step 4 with Moderate Carbon Performance, Step 3 with Strong Carbon Performance, etc.) for the different building types subject to the two Codes. For each building type the step combination and GHGI applied in a given year varies with each scenario as a result of different implementation timelines. 28 Projections of new floor area were based on existing floor area and percentage growth projections for each building type provided by the City of Nanaimo. Building types included in the modelling are as follows: • Single Family Detached (Part 9) • Single Family Attached (Part 9) • Apartments (Part 3 Residential) • Hotel (Part 3 Residential) • Office (Part 3 Commercial) • Retail (Part 3 Commercial) The GHGIs applied to the new floor area are based on the GHGI targets set out in the Zero Carbon Step Code and projections of the emission factor for grid electricity. The Zero Carbon Step Code requires fixed emissions factors of 0.011 kgCO2e/kWh for electricity and 0.180 kgCO2e/kWh for natural gas to be used to demonstrate compliance with the GHGI targets. These emissions factors and estimates of total energy use for a given step of the Energy Step Code were used to determine what the maximum amount of natural gas energy use could be, with the remainder being electricity energy use, whilst still complying with the GHGI targets. Emissions factors were then reapplied to this breakdown of natural gas and electricity energy use to determine new GHGIs, where the emission factor for electricity decreases with time to reflect the Clean Electricity Delivery Standard (a requirement that 100% of electricity delivered in the province be generated by clean, renewable sources by 2030. The approach of establishing the maximum amount of natural gas energy use reflects a worst-case scenario and the potential use of fossil fuel backup systems. The model also assumes a lag between permitting and finished construction: 2 years for Part 9 buildings, and 3 years for Part 3 buildings. 29 Appendix B: Industry Workshop Summary Part 3 Buildings Q1 What are the challenges and opportunities associated with building to net-zero enegry-ready, zero carbon, or both? Challenges Themes Comment Policy • Need for overall alignment between programs and requirements • ZCSC: o Projects in design may be affected by new code changes if in stream Energy Modelling • Need to ensure modellers know what climate zone they are working in (CZ4) • Need to clarify what weather files to use • Differences between modelling requirements between CMHC and ESC • TEDI can be the issue - while achieving GHG targets Design requirements (Form) • Challenge of lower window-wall ratio when views are important • Addressing public expectation for building form e.g. stepped buildings to reduce massing • Form and character can be difficult for some of the planners. Getting into that "boxy look" • TEDI is hard to achieve unless you are building a box. Infrastructure requirements (BC Hydro) • Limitations with electrical service, sizes and costs of transformers • ZCSC: o Limited BC Hydro capacity Sometimes this leads to reverting to gas (MUA, commerical kicthens, hot water) Slow response times – can take 12 months Results in the need to add natural gas in some buildings Compounded by EV charging requirements. Require calculations to be completed early in design Require energy management systems to manage demand • ZCSC + ESC: o Don’t have the answers on how to supply energy Industry capacity & supply chain • Getting blower door tests done is a challenge in Victoria • ZCSC: o Staffing challenges at BC Hydro and Local Goverments to get things approved • Retrofits are more challenging than new construction. • ZCSC + ESC: o New Technologies can be difficult to apply o Cost of HVAC units are going up due to hype o Long lead times for supply of units – can take up to 18 months. o The effort and cost of decarb/retrofit is greater than addressing at the new construction. o Industry capacity and supply chains Financial challenges • Cost of electrical transformers • Cost associated with higher building performance (Step 4). o Cost difference between Step 2 and 3 is quite negligible (can be dealt with through building shape). This can be addressed right from start. Step 4 is the challenge. o Cost - step 3 seems to be easy but getting to - but getting beyond this is challenging. o Qualicum beach form and character guidelines have a specific look. Can drive up cost to both meeting higher step code 30 • Electrical utility costs are high • Cost of HVAC units increasing due to demand Retrofits • ZCSC + ESC: o Need to be mindful of whether we can do this with renovations now too Opportunities Themes Comment Acceptance • ZCSC: o With low carbon electricity and reduced loads buildings, not too difficult generally. o If ew can adopt a lower step to satrt (i.e. step 2 of the ZCSC) which gives multiple opportunities • ZCSC + ESC: o Don't struggle for new buildings. Policy (Program rollout) • ZCSC: o Don’t implement aggressive timelines, allow flexibility while market transforms Design • Energy modelling would help to understand opportunties for increased insulation • Getting energy modelling involved earlier, before development permit, and before form and character. • Fuel less important if your building energy efficient from the beginning. • ZCSC + ESC: o No challenges with maybe the exception of commercial kitchens Innovation • ZCSC + ESC: o Opportunity to innovate and push boundaries Funding • BC Housing and CMHC funded builders. Leveraging existing tools and knowledge base • ZCSC: o Compliance tools available for Part 3 buildings o GHG is already a reported metric for Part 3 buildings – opportunity to move beyond just measuring. • ZCSC + ESC: o Opportunity for knowledge sharing from a good base of Engineers and Architects Messaging • Driver for energy efficiency isn't necessarily emissions, its lifecycle costs for owners. Q2 Is the industry ready to build to these levels of performance today? Why/not? Industry is ready Theme Comment Past examples • School districts are moving towards electrification -BC Hydro upgrades. • ZCSC: o Evidence shows that it is possible to build to GHG targets. • ZCSC + ESC: o New buildings are already being built to high standards. It’s existing buildings that are the problem. o Recognize spending some time and money to achieve a good level of air tightness can save a lot on HVAC and utility costs. o Buidlings are put together by multiple specilaized team, if the designs are clear then the teams will build to it. Incentives • People motivated to do Step Code because of the CMHC funding. 31 • Developers have a business motivation. Reducing costs is important. Industry is not ready Theme Comment Industry Capacity/ Education • There is a shift/upskilling needed on HVAC controls. • The skills are there. Capacity is not. • The Jump to ESC Step 2 in municipalties that haven't adopted the ESC yet means everyone will need to learn all at once – will likely see bottlenecks • There are so many levels of polices, which makes it difficult. • ZCSC + ESC o Need to educate contractors and trades on how things are now being done differently; contracting "this is how we've always done it" o Contractor/trades engagement to raise awareness (e.g. envelope, heating, plumbing, insulation, etc.) o On the Island, urban centres are a little more disparate, can't borrow from nearby centres as in Greater Toronto Area (GTA). o Overall industry is ready for both ESC and ZCSC, just a lack of trades and capacity o Takes time to change the mindset. o New buildings are already being built to high standards. It’s existing buildings that are the problem. Incentives • ZCSC + ESC o A lot of developers don't understand why they need to be building to higher levels. They want to build and sell. It’s incentives that appeal to developers. o Incentivization is important. o Developers have a business motivation. Reducing costs is important. o People motivated to do Step Code because of the CMHC funding. Supply Chain • ZCSC: o Can't throw more money to address labour shortarges and supply chains. This is part of the reason why shortcuts are being taken. There is conflict of interest. Economics and performance. • ZCSC + ESC: o Supply chain is a general concern to buildings, not just high peformance buildings Air tightness requirements • Self adhered membrane – this is a big change and need to get trades up to speed • Reluctance to take on the risk of committing to a certain level of air sealing. • More difficult in smaller, rural areas Perception of natural gas • ZCSC: o Developers still want access to gas, because the perception is that gas is more cost effective o Lowers operational costs for developer o Gas fireplaces, heating, etc. are driven by preferences. o Huge incentives for Fortis BC. o Fortis BC are easier and faster to work with Affordability Impacts • ZCSC + ESC: o Can the market bear the additional costs. What are the affordability impacts. Can rent increase to cover additional costs of construction. Design approach • ZCSC: o Human nature to shortcut. We need checklists and tests along the way, and not be reliant on the energy model at the end to double check requirements have been met. o Designer's need to be responsible for coordination of design elements. 32 Q3 What types of support would you or your peers need to build to be ready? Theme Comment Support from local goverment Streamline processes • Reduced approval timelines. • ZCSC: o One of the bigger problems isnt skills or knowledge. Its the processes. Processes need to speed up if timelines are going to be accelerated. o Council decisions process also slow downs the process o Communty groups get to involved and it slows down the process. They need to be pulled back / process needs to be reevaluted. • ZCSC+ESC: o Streamlined approval process for BP and DP for buildings going further. City Design guidelines • Updated municipal design guidelines • Rezoning. Develop OCPs that set out expectations. • Low-income housing doesn't need to be integrated to mid-income housing. o Not everything needs to be affordable. Alignment • Information sharing between permit application reviewers to improve consistency between municipalities • ZCSC+ ESC: o Consistent adoption across the region would help in training/clarification of requirements Clarity and support • Provide clarity/support for implementation impacts for in-stream applications • Municipalities could provide more clarity to designers re: weather files, CZs, etc. Incentives and rebates • Tax incentives. Don't put CACs (Community Amenity Contributions) on. • Density Bonuses. • Municipalities to offer more incentives. • ZCSC: o Need for an equivalent rebate program to FBC to dissentivize gas connections o Incenitivize through scaling permitting fees in line with ESC/ZCESC commitment i.e. commitment to higher step results in a lower permiting fee. Cost/timeline for the developer shorten if higher commitments are made. Partner with BC Hydro • ZCSC: o Work with BC Hydro to help facilitate connection/upgrades o Advise that team’s should look to engage with BC Hydro earlier in the process Supply chain • ZCSC+ ESC: Supplier and manufacturers. Trying to find the high effiency products. If you can't get the product, than you have to go with an alternate product. Might mean compromising on performance Knowledge sharing and eductaion/awareness Costs • Case studies need to include costs • ZCSC + ESC: o Need current numbers on potential costs to showcase what should be expected Training • Training for industry around air barriers • Builders breakfasts - need to focus on where the gaps are (e.g. trades) Awareness of current resources • BC Housing has a fair numbers of resources. o Making those things accessible - reducing barriers and costs. • ZCSC + ESC: 33 o Case study/tangible examples -creating visibility around how both ZCESC and ESC can be done. o Case studies are helpful -- challenges, lessons, learned. Shared with the rest of the industry. o Lessons learned are great. Need to be willing to share the successes and failures. Education of value proposition • ZCSC: o Emphasize ease/value of zero carbon in the region • ZCSC + ESC: o Need to shift understanding of what can be done, and that we can't be doing this. 34 Part 9 Buildings Q1 What are the challenges and opportunities associated with building to net-zero enegry-ready, zero carbon, or both? Challenges Themes Comment Policy barriers • Zoning Bylaws need to be aligned with performance e.g. requirements for glass and articulation • Bylaws can be disincentives to energy efficiency i.e. increased impact of gross floor area (GFA) from insulation • Municipal bylaws - maximum gross floor area / height restrictions and thicker walls/ deeper roof insulation • Form and character guidelines in some communities are incompatible with upper steps of BC Energy Step Code • ZCSC: o Fast rollout - need time to share / absorb new info Client preferences • Challenge of client preference for views vs. solar orientation • ZCSC: o Will be hard to separate from certain options/preferences (gas) o Older clients often want gas, ability to quickly turn on gas fireplace -allowing a gas backup is a mistake o Consumers/builders strongly attached to natural gas, may be some challenges separating them from it. o On-demand hot water (natural gas) is popular o "Cultural" Gas use such as fire places and cooking are hard to talk people out of despite health and other reasons not to. o Gas Marketing is misleading and there is a lot of it Industry Capacity/ Education • Training/Awareness o Mechanical trades need to improve- risk of improper design o HVAC- sizing matters, need better training HVAC industry (installers, design) o Mark showed that these buildings can be built to same costs - industry just needs to understand it's posible o Learning curve for all parties / building familiarity o • ZCSC: o Not enough training / information available o New regulations = new learning curve o Lack of awareness of ZCSC compared to ESC , might need more more time/education o Need more case studies showing the actual cost savings associated with gas in our climate. Meter fees really hurt the economics • ZCSC+ESC o Assumption that ZCES will cost a lot more • Engagement o It’s the builders who are not in the room who are going to have issues. • Design challenges o Challenges to overcome - i.e. full electrification of large homes, but there are workarounds Supply Chain • Embodied carbon challenges - most concrete alternative products only minimal improvements • Need to market to production builders - use/make products consumers wants 35 Financial challenges • Impact on affordability • ZCSC: o BC Hydro Connection Fees Opportunities Themes Comment Program rollout • Messaging to convey this move as an opportunity, not challenge • Incremental steps between 4-5 isn't much and not hard to achieve • ZCSC + ESC o Municipalities need to remember this is performance based, not prescriptive (be open to legal workarounds) o Opportunity: adopting both at the same time will reduce length of learning curve. o Client preferences • Customers are already requesting Energy Efficient buildings (ESC) • ZCSC: o Little push back from clients on electric o Younger clients tend to prefer electric Financial • Opportunity = Cost savings • Integrated design process - will save money and time in long run Past experience • Many builders are building at or close to higher steps already • Building to ESC was easier than originally anticipated • ZCSC: o Like step code, will probably find out it's easier and cheaper than originally thought to build to ZCESC. Would like a bit of time to understand the zero carbon code, but in the end we'll probably find out its easy, so why not adopt it. • ZCSC + ESC o Even with the higher capital costs, it’s cheaper to use better systems Supply Chain • ZCSC: o Technology is there /available Alternative fuels • ZCSC: o Langford RNG project- way to mitigate gas impact. Challenge of including RNG Embodied Carbon • Include Embodied Carbon in assessment o Agree that this is very improtant. Aluminum, concrete, steel, glass have a really high embodied carbon. o Reduce concrete- impact on embodied carbon Design Approach • Encourage energy modeling at the front end- rather then at permitting • Think of ongrade parking as a low carbon solution • Focus on air tightness, makes everything else easier • Lots of workarounds so not concerned. Can still have gas backup, cooking, outdoor fireplaces. • ZCSC + ESC o Once at higher levels of step code it makes sense to do zero carbon. Some challenges with larger homes but there are ways to design around this. Q2 Is the Industry ready to build to these levels of performance today? Why/not? Industry is ready 36 Theme Comment Industry capacity • If knowledgeable energy advisors available to support/model/IDP etc. Past examples • Yes, this is status quo for most already • Yes Step 3 is standard practice - Higher steps are also easy assuming design is done well. Gets very hard/ expensive if design is not done with Energy considered. • ZCSC: o Vast majority of new builds are already meeting the higher steps o Lots of work arounds available so don't see a huge issue - can still have gas bbqs/ secondary heating etc. o Mechanical systems are readily available and easy to understand for most • ZCSC + ESC: o General consensus: Building community will adapt, could be messy at first. o In many cases industry is already doing low carbon and energy efficient buildings. Would likely be a small move to do both Yes. Policy • ZCSC: o Consensus from builders in the room: The building industry will adapt if regulations are put in. There will be some grumbling at the start but they'll adapt. Partial readiness • Some builders will care and adopt faster than others • Will eventually become the new norm (like heat pumps) • ZCSC + ESC: 50% of builders may be ready Industry is Not Ready Themes Comment Industry Capacity/ Education • No, but there has been plenty of opportunity to learn/adopt • Lack of skilled trades o Need to educate those on site- skilled trades level, mechanical side o Industry training key- need to get it built right, not just design focused • Increased cost to Step 3 painless, but it takes time and training • Need to roll out training program ASAP if rapid adoption of high steps ZCSC: • Lack of awareness could be an issue- ZCESC hasn't been promoted as much as ESC. • Trade knowledge and home owner knowledge has some gaps Policy • Bylaws need to be implemented region wide -reduces risk of building to a lower standard – Needs to happen at large scale. Design approach • Starts with right design at the beginning -really important, people need to understand that. Q3 What types of support would you or your peers need to build to be ready? Theme Comment Support from local goverment Policy • Remove zoning bylaws • ZCSC: o Need regulation, otherwise will not happen at scale. Incentives 37 • ZCSC: o Permit, development cost charges (DCC) or other cost reductions for the types of buildings the city wants o Higher permit fees for digging up the road – to disincentivze gas connection over electric connection. • ZCSC + ESC o City can offer support or reductions in cost / timeline in permitting tax or DCC Training • Design education of Council. Design panels- design review can challenge higher step code levels • Need building inspection to understand that code is performance based - sometimes can focus too much on prescriptive - more training for building officials. • Training/competence on Step Code should be part of builder licensing (provincial) Industry capacity • Knowledgeable Energy Advisors • Really need to increase HVAC trades capacity/ competence/culture • Definitely require mid-construction blower door tests. Knowledge sharing and eductaion/awareness Awareness • There is already a lot of information out there - builders just need to make time and take responsibility. • ZCSC: o RDN to encourage networking, local capacity building. Easier for larger municipalities with existing critical mass of experience. o Critical mass of members with experience important to encourage networking o Probably need focused awareness outreach with production builders Training • Education is needed • Door-knocking and on-site outreach with spec builders important - educating the ones who don't show up to CHBA • Modeling of homes important - in the model can show the builders the small adjustments ended to meet higher steps • ZCSC: o More outreach/education around what Zero Carbon requirements are, what is allowed/not allowed o Lack of training for certain trades (i.e. HVAC; mechanical)/industry culture • Incentives • Incentives are needed o Financial incentives specifically to support Integrated Design Process (IDP) o Training in High performance building results in building permit cost reduction o BC Hydro incentive should be brought back - convinced many builders to move to electrification from gas - very effective when it still allowed for something like a gas bbq Consumer awareness • ZCSC: o Training for home owners o Help with messaging to consumers on low carbon benefits, argument for zero carbon - e.g. instant hot water is popular Plenary Discussion Is alignment between municpalities in the RDN or Vancouver Island important to you? Why/Why not? 38 Theme Comment Alignement is important • Challenge of different requirements in different jurisdictions - the more aligned the better o Crucial that they get on the same page; ESC adoption as a past example • Will always have differences of opinion, need to be realistic of what level of consistency can be achieved; maybe at least agree on a baseline or base level definitions • Councils always seem to want to one up each other. • If the consistency is for a high standard then definitely, yes. Consistency would be a huge benefit. Consequences of misalignment • Different timelines = different speeds; building expertise and capacity would benefit from repeat applications of the same steps. • If one municipality that is adjacent to other jurisdictions, different requierments will cause developer/ builders to move to those that have lower expectations regarding energy consumption and GHG emission -this exacerbates the uptake Advantages • Have an "island economy" - should reap the benefits and help the industry 39 Appendix C: Staff Workshop Summary Q1 Have any of these policy options been considered or tried by your municipalities in the past? If so, with what result? Theme Comment BC Energy Step Code • Not that I’m aware of (Regional District Nanaimo) • Yes, as a condition of rezoning(Qualicum Beach) • Have stayed in step with the Province, but Council wants to accelerate to Step 5 (only in specific cases). Was looked at as part of RDN Climate Action Technical Advisory Committee (CATAC) (see LCES entry) (District of Lantzille) • Step 3 Part 9, Step 2 Part 3. Density bonus and rezoning policy for higher steps (City of Nanaimo) Low Carbon Energy System Pathway • No (Regional District Nanaimo) • Looked at as option by RDN's climate action technical advisory committee (CATAC) - was one of the top 5 recommendations, but not implemented as we focused on the top 3 priorities. (Regional District Nanaimo) • Not considered in Lantzville (District of Lantzille) • Not yet (Qualicum Beach) • LCES rezoning policy - DS (City of Nanaimo) Financial Incentives (e.g. building permit fee rebate or rebates) • Nothing Yet for Lantzville (District of Lantzille) • RDN Sustainable Development rebate for high efficiency buildings (up to $1000) since 2012, but low uptake. (Regional District Nanaimo) • yes, DCC reductions for acheiving energy efficiency standards (Qualicum Beach) • Province will be making changes to density and finance so will hopefully include sustainability criteria Permit Fast Tracking • Suggestion only (Regional District of Nanaimo) • Often suggested as an incentive for many legitimated needs. How do you choose what to fast-track e.g. affordable housing, day cares, medical buildings? So that's a No (CoN), (Qualicum Beach) • Not in LV, Permitting is quite fast already, unlikely to incentivize (District of Lantzille) Density Bonusing • Our zoning bylaw includes density bonusing in exchange for achieving higher Step Code levels than required. Seen some uptake (City of Nanaimo) • Yes, in theory. But most developments don't need the bonus density (Qualicum Beach) • Not in Lantzville (District of Lantzville) • The idea of density bonusing has come up through Council discussion, but nothing more formal yet (District of Lantzville) • Requires a balance of priorities, but is a very flexible tool (City of Nanaimo) • Includes Step Code as a category option- previously referenced ASHRAE (City of Nanaimo) • Province will be making changes to density and finance so will hopefully include sustainability criteria Q2 What are the pros and cons associated with each option, from the perspective of permitting timelines, efficacy/uptake from the industry, staff capacity, overall feasibility, other? Pathway Theme Comment Design Guideline conflicts • Design Guidelines (City of Nanaimo) 40 Energy Efficient Buildings • The town's design guidelines encourage features that compromise energy efficiency (Qualicum Beach) • We have heard concerns design guideline conflict and have plans to review ours (City of Nanaimo) • Form and character guideline conflicts • Wall depth/floor area calculation conflicts, and roof • Location of houses (i.e North-facing homes with large windows) • Related to design, is public expectation for stepped buildings (City of Nanaimo) Education and local capacity • Builder and resident education - fears about cost increases • Limited access to materials/ labour (I've heard that there are very few external insulation companies locally) General • Influx of applications ahead of changes. This is experience for Energy Step Code and assume would apply to Zero Carbon Step Code (City of Nanaimo) Low Carbon Buildings Industry capacity • Low education among public/ builders (Regional District of Nanaimo Natural gas/RNG • Desirability of natural gas (e.g. heating water, gas stove, gas fireplace) • Fortis rebates and low install costs for NG • Potential compliance challenges with RNG? Fuel switching back. Concerns re electrification • Areas that experience longer power outages Unintended consequences • Prioritizing Zero Carbon over Energy Step Code is taking the short-term gain over the long-term - Don't want to give up benefits of efficiency Low Carbon and Energy Efficient Buildings Industry Capacity • Not very well informed builders overall • There will be a perceived conflict between affordability and higher efficiency standards (Qualicum Beach) Local Government Capacity • On-going changes can be hard for industry (and staff) to manage in-stream applications • Some concerns re: capacity to review applications (District of Lantzille) • Not a very intense process overall for Building Officials, new requirements won't add much time to the review; need to ensure drawing set for P9 matches info from Energy Advisor (EA) Incentivization • Need to encourage rather than punish the right approach Q3 What kinds of support, training, or other resources would you need or want to help support the implementation of these options? Theme Comment Awareness & Education • More engagement opportunities for public/industry (Regional District of Nanimo) • Case studies showing design procedures to industry members - need to know where to start • More education about the business case for energy efficiency. Appeal to people's wallets (Qualicum Beach) • Showcase local builders that are successfully implementing higher step code standards • Constant changing regulations creating challenges • Thermal comfort - heat pumps are better than floor board heaters. How can we communicate these benefits to builders and homes owners. • Plain language explanation of requirements for residents (why it's important, how much will it increase costs) Permiting process • Step Code isn't creating any backlog around permitting issues. Application review is pretty straight forward. Make sure we have crystal clear requirements. • Need to front-load permits - ask for things earlier when you still have leverage 41 • Perhaps a better understanding of Provincial/Federal funding opportunities and conveying this to developers as opportunities at the outset of projects • Building permit fees are adequate, planning permit fees already too low. You can't reduce these further for incentives. They are not yet at cost recovery. If they were closer to cost recovery you could use them for incentives and hire more staff. Policy updates • Heat pump setback requirements may need to be reduced- can be a barrier • Move towards performance based approach in bylaws and guidelines • City of Nanaimo - historical and come from OCP. There are a number of fundamental principles. There is sensitivity around height. • Need to review Form and Character guidelines • Historic neighbourhood plans - these are the ones that are harder to amend. How to allow more flexibility • we need to explore ways to make buildings that comply with design guidelines without adding all the dormers and extra corners (Qualicum Beach) Appendix D: Industry Workshop Presentation Net Zero Buildings in the Regional District of Nanaimo Stakeholder Workshop May 9, 2023 2 Why are we here? Meeting our climate goals •Regional District of Nanaimo (RDN) and municipalities have set ambitious GHG reduction targets: •RDN: 80% by 2050 •Qualicum Beach: 80% by 2050 •Lantzville: 85% by 2050 •City of Nanaimo: 50-58%by 2030 and 94- 107% by 2050 3 Current Requirements for New Construction BC Energy Step Code Implementation Regional District of Nanaimo Incentives •Renewable Energy Systems Rebate •Sustainable Development Checklist Incentive •EnerGuide Assessment Rebates City of Nanaimo •Rezoning Bylaw requires applicants to either achieve one step higher or achieve current step with a low-carbon system •Density amenity bonusing for buildings achieving Step 3 and above Other Policies and Programs •With the recent building code update, all municipalities in the RDN require the base BC Building Code. •The City of Nanaimo has previously implemented BC Energy Step Code in advance of the Provincial backstop 4 RDN Net Zero Buildings •How do we further reduce the carbon and energy impact of our buildings •Considering industry feasibility,environmental, financial and social implications •Collaboration between local governments within the RDN •Consulting together, but each participating local government may choose different options following consultation and policy analyses Strategy for Net Zero Buildings & Localized Energy Generation 5 Accelerating Step Code in the City of Nanaimo City Plan Direction •Accelerate zero carbon and energy efficient building design and practices for all new construction before 2030, and require this for all new construction after 2030 •Support, prioritize, and advocate for low carbon energy systems in all new construction. Integrated Action Plan •Confirm final steps with respect to Nanaimo’s Energy Step Code implementation strategy, to ensure higher Step Code compliance requirements come into effect before the Provincial mandated implementation timelines 6 Why are we here? To hear your insights and experiences to help the RDN and its member municipalities shape regulatory pathways for new construction Provide an overview of local government decarbonization goals and the role and benefits of net-zero energy-ready (NZER) and zero carbon (ZC) buildings Present case studies/examples of successful NZER or ZC buildings in the region Workshop a shortlist of new construction policy options for stakeholder discussion and feedback Today’s Agenda 8:10 Getting to zero in the new building sector 8:20 How do we get there?Guest speakers 8:50 Group discussions 9:45 Reflections on pathways to zero 9:55 Closing remarks & next steps BACKGROUNDER Getting to Zero in the New Building Sector 9 The Role of the Building Sector in Community Emissions •The building sector accounts for 12% of province-wide GHG emissions •At a municipal level, buildings can account for 25%-55% of emissions 10 On May 1, 2023, the Province updated the BC Building Code Increased Energy Efficiency Reducing Carbon Emissions A 20% increase in energy efficiency above the 2018 Building Code Voluntary carbon limits for Part 3 and Part 9 construction 2023 Provincial Building Code Updates 11 The BC Energy Step Code The BC Energy Step Code has been in effect since 2017 Steps are increased every ~5 years We are here 12 FROM ENERGY EFFICIENCY TO CARBON EMISSION REDUCTIONS So why do we need another code? Greenhouse gas emissions by heating type and energy step (source: Metro Vancouver Climate 2050 Buildings Discussion Paper ) Focusing on energy efficiency alone can still result in significant emissions from the new building sector –even at higher steps of the BC Energy Step Code 13 The Zero Carbon Step Code •Local governments now have an option to add carbon requirements alongside energy efficiency targets •CleanBC Roadmap to 2030 commits the Province to requiring all new construction to be zero carbon by 2030 Image Source: Building Safety and Standards Branch 2030 14 The Zero Carbon Step Code PART 3 BUILDING REQUIREMENTS FOR GREENHOUSE GAS INTENSITY (GHGI) Building Type Moderate kgCO2e/m2/year Strong kgCO2e/m2/year Zero Carbon kgCO2e/m2/year MURB 7 3 1.8 Office 5 3 1.5 Retail 6 3 2 Hotel 9 4 2 Implications Zero carbon space heating Zero carbon space and water heating Zero carbon energy 15 The BC Zero Carbon Step Code PART 9 BUILDING REQUIREMENTS Image Source: Building Safety and Standards Branch 1,050 Kg CO2e/yr 440 265 6 Kg CO2e M2/yr 1.5 2.5 GHG cap 2400 GHG cap 800 GHG cap 500 Compliance Path #3Prescriptive approach Zero carbon space and water heating and cooking Zero carbon space and water heating Zero carbon space heating Maximum GHG emissions per home per year Maximum GHG intensity per home per year Maximum emissions by energy source Compliance Path #1 Quantity of carbon pollution Compliance Path #2Intensity of carbon pollution 16 State of Step Code Implementation by other Local Governments •Before the Zero Carbon Step Code was implemented, many local governments introduced Low Carbon Energy System (LCES) Pathways alongside BC Energy Step Code to encourage decarbonization LOW-CARBON ENERGY SYSTEM PATHWAYS 17 State of Zero Carbon Step Code Implementation by Local Governments City of Victoria Saanich Whistler Nov 2023 Zero Carbon Jul 2024 Zero Carbon (MURBs <6 storeys) Nov 2024 Zero Carbon (MURBs >7+ storeys, commercial) Provincial backstop for BC Energy Step Code Jan 2024 Strong Carbon + Step 4 TBD 2026 Zero Carbon + Step 4 Jan 2024 Strong Carbon + Step 3 TBD 2026 Zero Carbon + Step 3 City of Richmond* Oct 2023 Moderate Carbon + Step 5 Jan 2025 Strong Carbon + Step 5 Jan 2027 Zero Carbon + Step 5 Oct 2023 TBD Carbon + Step 3 Jan 2025 TBD Carbon + Step 4 Jan 2027 TBD Carbon + Step 4 *Note Richmond has a LCES structure –information summarizes the minimum level of carbon performance Nov 2023 Zero Carbon Jul 2024 Zero Carbon (MURBs <6 storeys) Nov 2024 Zero Carbon (MURBs >7+ storeys, commercial) Provincial backstop for BC Energy Step Code 18 Other Ways of Encouraging Higher Performance Financial Incentives •Local government financial incentives include: •Building permit fee rebates for homes meeting the upper steps of the BC Energy Step Code (e.g. Comox Valley Regional District, Township of Langley, City of Kimberley) •Home energy evaluations or airtightness testing rebates (e.g. City of North Vancouver, Township of Langley, New Westminster) Permit Fast Tracking •“Front of the line” status for all-electric/highest step projects (e.g. Port Coquitlam) Density Bonusing •Additional density granted to higher performing designs (e.g. City of Duncan) GETTING TO ZERO What does this mean for design & construction? 20 What does this mean? •Significantly reduced carbon emissions •Potential to lower energy bills for residents and tenants •Quieter and more comfortable homes •Healthier indoor and outdoor air quality •Increased safety and resilience •More durable envelopes with lower replacement needs •Avoid cost of future retrofits BENEFITS & RISKS OF ENERGY EFFICIENT & ALL-ELECTRIC BUILDINGS BENEFITS •Limited electrical capacity/potential need for electrical upgrades •Potential to increase energy bills with lower efficiency HVAC systems •Need to ensure careful design to avoid overheating •Need for additional training for municipal staff and industry members •Potential for increased costs in an already squeezed market RISKS 21 Diving into Cost Implications –BC Energy Step Code Building Type Energy Step Code Incremental cost increase range (%)* Single family homes 4 0% -5% 5 1% -7% High Rise MURB 3 1% -4% 4 1%-6% Low Rise MURB 3 1% -2% 4 3% Row Homes 4 0-2% 5 2% Quadplex 4 2% 5 4% Office 3 -2%-0% *Based on BC Energy Step Code Metrics Report Update (2022);City of Surrey Step Code Costing Study; City of Vancouver Zero Emissions Building Plan: Rezoning Cost Comparison; Getting to Zero: A High Performance Energy Policy for New Buildings in the City of Richmond. *Baseline generally assumes NECB 2017, not recently updated BCBC. 22 Diving into Cost Implications –Zero Carbon Step Code Building Type Energy Step Code (Baseline)Zero Carbon Step Code Incremental cost increase range (%) Single family homes 4 Zero Carbon 0% –1% 5 Zero Carbon 0% –2% High Rise MURB 3 Zero Carbon 0% –2% 4 Zero Carbon 0% –1% Low Rise MURB 3 Zero Carbon 0% –2% 4 Zero Carbon 0% –1% Row Homes 4 Zero Carbon - 5 Zero Carbon - Quadplex 4 Zero Carbon 1% –2% 5 Zero Carbon 1% –2% Office 3 Zero Carbon 3% *Based on Carbon Pollution Standards for Part 9 and Part 3 Buildings Report (2022). 23 Diving into Cost Implications –Utility Cost Impacts Building Type Energy Step Code Zero Carbon Step Code Utility Cost Single family homes 4 Zero Carbon +7% –-4% 5 Zero Carbon +5% –-12% High Rise MURB 3 Zero Carbon -9% –-11% 4 Zero Carbon -11% –-24% Low Rise MURB 3 Zero Carbon -9% –-11% 4 Zero Carbon -11% –-24% Row Homes 4 Zero Carbon -21% 5 Zero Carbon -25% Quadplex 4 Zero Carbon – 5 Zero Carbon – Office 3 Zero Carbon -18% *Based on Carbon Pollution Standards for Part 9 and Part 3 Buildings Report (2022). 24 Driving Down Costs Base BC Building Code changes. The additional capital cost of achieving higher levels of performance is decreasing as the base building code becomes more energy efficient. Industry experience. As the industry becomes more experienced with high-performance and low-carbon construction, cost overruns are decreasing and efficiencies are increasing –especially where IDP –are used. Cooling demand. As the demand for cooling increases, heat pumps are becoming an increasingly cost-effective option. 25 Supporting the Market •BC Hydro Integrated Resource Plan is preparing for an electrified future •BC Hydro review and update of Distribution Extension Policy to address cost and timelines associated with interconnection and electrical service upgrades •Training opportunities are available to attract new workers and support upskilling (e.g. Home Performance Stakeholder Council, BCIT, ZEBx, EGBC, TECA) •Resources are available to support industry in understanding how to build to new levels of performance (e.g. BC Housing Builder Insights, Design Guide) •Pilots and demonstration projects are supporting the adoption of new technologies and processes. GETTING TO ZERO Guest Speaker Mark Bernhardt, Bernhardt Contracting Ltd. HOW WORRIED SHOULD INDUSTRY BE? Spring 2023 Hurko Residence Carbon/ Energy Step Code Example St r o n g Ze r o Mo d e r a t e Hu r k o A l l G A S R N D W o r s t C o n s t r u c t i o n Hu r k o G a s H W H y b r i d h e a t i n g R D N S t e p 5 Hu r k o E l e c H W H y b r i d H e a t i n g R D N S t e p 5 Hu r k o A l l G A S R N D S t e p 5 Passes Moderate Intensity Metric Zero Carbon Sells Step 5 Zero Carbon Island Examples If it can be done here, what is our excuse? Part 9 Step 5 Zero Carbon Northern BC Total Build Cost under $400,000 Part 3 Step 4 Zero Carbon Affordable Rental Northern Nova Scotia Total Estimated Build Cost $7.5 Million “Do or do not. There is no Try”-Yoda GETTING TO ZERO Guest Speaker Andy Chong, Introba 34 Quick Intro •15+ Years, Mainland to Island •Introba Victoria Office est. 2014 •Focus on High-Performance Commercial + Affordable Housing •CRD Step Code Adoption 2018 •CRD Step Code Advancement 2022 •Victoria Resident, Nanaimo Visitor • 35 Quick Intro •15+ Years, Mainland to Island •Introba Victoria Office est. 2014 •Focus on High-Performance Commercial + Affordable Housing •CRD Step Code Adoption 2018 •CRD Step Code Advancement 2022 •Victoria Resident, Nanaimo Visitor •Dad 36 Local Impact: Vancouver Island Case Studies Part 3 Office Step 3, Zero Carbon TELUS Ocean Part 3 Commercial Net Zero Energy Discover Montessori School Part 3 Residential Step 2, Fully Electric Nigel House Residential Care Part 3 Commercial Step 3, Net Zero Energy& Carbon Saanich Fire Stn #2 Replacement Part 3 Residential Step 3, Fully Electric North Cowichan Seniors Housing 37 The costs and implications of getting to zero carbon? 38 … depends on what you are starting with. 39 Stuck on Brute Force Systems Approach 40 Large Building Mechanical Approaches at a Glance… 1515 Douglas St Victoria BC Hybrid Air/Ground Source Heat Recovery Heat Pump Economy of Scale Charter Telecom HQ Langford BC Central High-Performance HRV High Performance Commercial HVAC Equipment Uptown Shopping Centre Whole Foods Saanich BC Refrigeration Heat Recovery Heat Recovery 750 Pandora BC Investment HQ Victoria BC Radiant Ceiling Greater Flexibility in System Types Reliable Controls HQ View Royal BC Natural Ventilation Innovative Ventilation Strategies 41 But HVAC Systems Only Contribute So Much… Higher Steps and Zero Carbon do not necessarily require more complex or expensive systems. Form and character of architecture becomes constrained at higher levels. 42 Energy Efficiency ≠ Carbon Emission Reduction 43 TEUI, TEDI… What about GHGI? In British Columbia, NATURAL GAS is 17x more carbon-intensive than ELECTRICITY For British Columbia, DECARBONIZATION ≈ ELECTRIFICATION 44 Arch + Mech Integrated Design Decarbonization Hierarchy 3. For what’s left –use renewable sources and/or offset 2. Satisfy the remaining load with the smallest, most-efficient, and lowest-carbon-intensity practical •incorporate sources of heat recovery •strategic selection of energy source/sink •heat pumps 1. Reduce base demand through conservation measures •reduce waste and losses •passive design •demand control 45 •Test performance of options before committing to full design and/or capital costs… •“Are we going to make it?” •Explore and Refine Options, Cost/Benefit, and avoid Brute Force Overdesign •… or risk not making it to your destination. Energy Model is a Design Tool (Not just a Compliance Check) 46 Bottom Line Takeaways 1.Market is Ready! Many Mech Solutions –but they only go so far. 2.Building Form & Architecture Play Critical Role at Higher Steps; Conservation First 3.Fuel Source is Critical to Carbon Emission Reduction; Emphasize and Plan for Electric Options 4.Energy Modeling as a Design Tool (not just a compliance check) GETTING TO ZERO What are the local governments in the RDN considering? Lisa Westerhoff, Introba 48 Pathways Under Consideration Pathway #1: Prioritize Energy Efficiency •Implement (or increase stringency) the BC Energy Step Code Pathway #2: Prioritize Carbon Emissions Reductions •Implement the Zero Carbon Step Code Pathways #3: Advance Energy Efficiency and Emissions Reductions •Implement (or accelerate adoption of) the BC Energy Step Code AND•Implement the Zero Carbon Step Code Pathway 4:* Voluntary interventions to encourage early adoption •Rezoning policy •Financial incentives •Non-financial incentives (e.g. permit fast tracking and density bonusing *Pathway 4 is not mutually exclusive and can be used in conjunction with Pathways #1-#3 49 Next Steps •A survey will be launched today RDN website to capture more feedback, especially from those unable to attend •Once policy pathways have been refined, we will solicit further feedback from you via email •Further questions or concerns? •Jessica Beaubier Jbeaubier@rdn.bc.ca •Ting Pan Ting.Pan@nanaimo.ca •Luke Sales lsales@qualicumbeach.ca •Frank Limshue flimshue@lantzville.ca 50 Thank you! QUESTIONS? Attachment I - Proposed Implementation Timeline Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Province of BC - Zero Carbon Step Code Timeline EL-1 ? ? ? EL-4 MTCA Implementation Timeline EL-1 EL-3 EL-4 Proposed CMR Timeline EL-1 EL-3 EL-4 2027-2029 2030Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2Q1 Q2 Q3 Q4 2024 2025 2026 Proposed Timelines ~ Maple Ridge - TO: FROM: His Worship Mayor Dan Ru imy and Members of Council Chief Administrative Officer SUBJECT: Climate Lens Assessment Framework MEETING DATE: FILE NO: MEETING: May 28, 2024 01-0690-03 Council Workshop EXECUTIVE SUMMARY: Since its inception in July 2023, the Mayor's Taskforce on Climate Action has focused on advancing priority climate initiatives during the development of the City's Low-Carbon Resilience Climate Action Plan. A key area is introducing a Climate Lens Framework Assessment into staff reporting to inform Council and Committees of climate change considerations -both mitigation (e.g. reduction or prevention of emissions) and adaption (e.g. preparedness of climate hazards and impacts, reducing risk and vulnerability) for Corporate and Community policy and projects. The Climate Lens Assessment Framework is designed to provide a preliminary, qualitative assessment of whether a municipal decision will affect climate (Mitigation -through the reduction of greenhouse gases) or be affected by climate (Adaptation -through increased exposure to extreme weather impacts). The implementation of the Climate Lens Assessment Framework will take a phased approach, with each phase introducing progressively more comprehensive levels of analysis, to integrate climate considerations across the Corporation of the City of Maple Ridge. RECOMMENDATION: For information. DISCUSSION: a) Background Context: 3812197 This report is being advanced to Council as a result of the Mayor's Taskforce on Climate Action adopting a recommendation that staff bring for adoption a Climate Lens Assessment into City of Maple Ridge staff reports by Q2 2024. Developing a climate lens aligns with the strategic Key Result to "Develop a framework for climate and resilience as a lens for City decision-making". Terms of reference for the Taskforce and its five priorities are listed as attachments A and B, respectively. Municipalities across Canada are developing various Climate Lens frameworks and tools to embed climate change considerations into municipal decision-making processes. The aim of a Climate Lens Assessment is to formalize and normalize climate change considerations into project, program and policy making. A Climate Lens is a guidance document on assessing climate risks and implications, including Mitigation (GHG emissions reductions), and Adaptation (resiliency to extreme weather impacts). Page 1 of 4 Approach & Next Steps The proposed approach for implementing the Clrmate Lens is based outcomes and recommendations from jurisdictions leading in this arena. Considerations gathered from these municipalities is included in Attachment C. The first phase of the Climate Lens Assessment Framework tool does not require detailed quantification to evaluate the impacts of a decision, but rather qualitatively assesses high-level probabilities, to foster multi-departmental dialogue and incorporation of climate change considerations. By including climate change consideration in Council reports, Council is given an understanding of the climate mitigation and adaptation implications of their decisions. A sample of the data being collected is provided in Attachment D The Climate Lens Framework Tool is to be used in staff reports to Council. The City's tool is divided into three sections: 1. Mitigation (e.g. reducing or preventing greenhouse gas emissions), 2. Adaptation (e.g. prepare for impacts of climate change to reduce risk and vulnerability) and 3. Benefits (e.g. provide multiple community benefits). This format follows and supports the components of the Low-Carbon Resilience approach to climate action -mitigation, adaption, and co-benefits. Implementation Timeline Phase 1: 03 2024 -01 2025 Staff will begin to incorporate the Climate Lens for new projects, programs, or policies with reporting requirements to Council and Committee, informed by a first round of ongoing consultation with major departments. The Climate Change Considerations section will be added to the Council report template in 03 2024. Phase 2: 02 2025 -01 2026 Further refinement of the Climate Lens Assessment Framework will take place, informed by a second round of ongoing consultation with major departments. This will include assessing the addition of criteria such as quantitative requirements (i.e., including more precise emissions calculations), standardizing individual department's reporting metrics, and/or introducing other resources such as a checklist of climate change implications to increase the impact of the framework and improve consistency of its output. b) Desired Outcome: This report is intended to make Council aware of the upcoming addition to Council reports which will reflect the climate impacts of proposed corporate policies based on available data. c) Strategic Alignment: The project detailed in this report is a strategic initiative as detailed below: Priority Objective Key Result Climate Leadership & Mitigate & Adapt to the Develop a framework for Environmental Stewardship Impacts of Climate Change climate and resilience as a lens for City decision makinq. 3812197 Page 2 of 4 d) Interdepartmental Implications: As this item was identified as a strategic initiative advancing a Key Result, the Climate Leadership & Environmental Stewardship Strategic Priority Oversight Team is monitoring the project. The initiative itself is a cross -functional project engaging service areas across the City of Maple Ridge. e) Business Plan/Financial Implications: There is no immediate impact on the Financial Plan as a result of the proposed scope of work. No funding is being requested. It should be noted that introducing a Climate Lens Framework Assessment in the staff reporting to Council on projects and policies in the future will require staff to consider the climate change impacts and introduce alternative approaches that aim to reduce or prevent greenhouse gas emissions and reduce the risk of impacts of a changing climate. These approaches could reduce costs through efficiency or increase costs using new emerging technologies but aim to improve services in the community to build resiliency. f) Policy Implications: Introducing a Climate Lens Framework Assessment as a component to staff reporting to Council will not require any changes in policy but will consider incorporation and changes in current practices and thinking towards incorporating climate change into staff reporting and information provided to Council for decision making. g) Alternatives: 3812197 Council could opt to not proceed with the introduction of a Climate Lens Assessment Framework and await direction at higher levels of government to require climate lens assessments for projects and policies that rely on funding. Await direction: Though updated guidance from the Province or the Federal government is anticipated, there is no certainty around when. Currently, municipal projects seeking federal support under Infrastructure Canada Investing in Canada Infrastructure Program funding already require a Climate Lens Assessment for funding streams on Public Transit, Green Infrastructure, Community, Culture and Recreation Infrastructure, and Rural and Northern Communities Infrastructure, and the national Disaster Mitigation and Adaptation Fund. Infrastructure Canada 's Climate Lens Guidance is included as Attachment E of this report for reference. Federal departments are also considering or undertaking their own respective Climate Lens Framework Assessments on project, program and policy decisions. Page 3 of 4 CONCLUSION: A Climate Lens Assessment Framework will support and incorporate climate change into municipal decision making to mitigate & adapt to the impacts of climate change. The City's tool will help inform Council and Committees of climate change considerations for Corporate and Community programs, projects, and policies. Prepared by: Approved by: Concurrence: Attachments: Brian Montgomery, Designations Climate ction & Resiliency Advisor Director of Strategic Development, Communications, and Public Engagement Scot#-f:TS Chief Administrative Officer (A) Mayor's Taskforce on Climate Action -Terms of Reference (B) Mayor's Taskforce on Climate Action -Priorities (C) Key Considerations for Successful Implementation (D) Climate Lens Assessment Form (E) Infrastructure Canada Climate Lens -General Guidance 3812197 Page 4 of 4 Attachment A -MTCA Terms of Reference Terms of Reference -City of Maple Ridge: Mayor's Task Force on Climate Action MANDATE The mandate of the Mayor's Taskforce on Climate Action (MTCA) is to serve as an advisory role to City Council with respect to high value and high priority climate mitigation and adaptation actions that will have the greatest impact on advancing Council's Strategic Priority of "Climate Leadership and Environmental Stewardship" and its accompanying goals. FUNCTIONS The Council of the City of Maple Ridge has the MTCA to: • ldenitfy and make actionable recommendations and proposals for Council's consideration regarding high value and high priority policies, bylaw updates, and implementation actions related to reduction of emissions and enhancement of resilience related to Climate Change. As part of making recommendations, the MTCA will: o Apply a "Low Carbon Resilience" lens to all proposed actions to ensure that recommendations do not negatively impact related adaptation, mitigation and other co- benefit priorities, and seek opportunities to maximize these outcomes concurrently. o Balance and adjust the priority of each recommendation with the anticipated implementation timeline, viability, and the organization's/community's capacity and state of readiness to proceed with each recommendation. . o Include implementation process and phasing recommendations where appropriate. • Engage with indigenous peoples and with the community and other interested and affocted parties, with the support of City staff, regarding actions and policy directions that are proposed to be recommended to Council. This is to ensure that recommendations are evaluated with consideration of community and stakeholder input and perspectives. • Advise Council and make recommendations on innovative actions that will establish Maple Ridge as a leader among local governments in addressing climate change. • Participate in climate action workshops with staff and/or consultants, where possible, to: o Co-evaluate and prioritize risk and vulnerability and emissions data. o Support alignment between the development of the City's comprehensive Climate Action Plan and the actions directed by Council through the recommendations of the MTCA. • Provide the City's cross departmental Climate Action staff team with expert insights and comments on the City's Climate Action Plan's phases, deliverables and outcomes during the development of the plan by providing analysis of best practices and consultant recommendations. MEMBERSHIP COMPOSITION The MTCA will be comprised of up to eight (8) voting members approved by a Council, consisting of: • City of Maple Ridge Mayor (Taskforce Chair) • Two (2) City of Maple Ridge Councillors Attachment A -MTCA Terms of Reference • Four (4) members with experience in key areas of climate action. Membership in this group is not restricted to members of Maple Ridge community, due to the focus on each member's expertise in one or more of the following identified areas: o Building energy efficiency and renewable energy o Community-focused climate action policy o Zero emission and active transportation o Zero waste o Climate adaptation and resilience o Natural habitat and ecosystems o Green infrastructure o Urban agriculture o Low Carbon Resilience • One (1) youth (age 15-24) member Additionally, a City staff member will be appointed by the CAO as a staff liaison, as well as a Committee Clerk will provide support to the Taskforce, including preparing and distributing agendas, attending the meetings, and preparing minutes of the meetings. The membership composition of the Taskforce may be changed by Council resolution. Any vacancy occurring in the membership of the Committee shall be filled forthwith by the Council for the unexpired term of vacancy. The Taskforce Chair has the authority to invite individuals and/or groups to Committee meeting for the purpose of making presentations or addressing specific questions that the Taskforce may have. QUORUM Quorum will consist of 50% of appointed members plus one. DELEGATED AUTHORITY The MTCA is established as a Select Committee. The Taskforce and its members will be approved by Council. The MTCA does not have any delegated authority and has no authority to direct staff. Any recommendations requiring implementation must first be considered and Carried by a vote of City Council. TIME FRAME OF TASKFORCE The MTCA will remain active for a period of six (6) months from the date of the Taskforce's first meeting. The term may be extended beyond the initial period by Council resolution. TERM OF MEMBERSHIP Members will serve for the duration of the six (6) month term. An extension to the term of the Taskforce will automatically result in the extension of existing members. Attachment A -MTCA Terms of Reference Any vacancy occurring in the membership of the Taskforce, either during the initial term or as a result of an extension, shall be filled by Council at Council's discretion for the unexpired term of vacancy. MEETINGS Meetings will be held at City Hall generally on a monthly basis, or as required at the call of the Chair. The agenda will be distributed the week prior to the meeting. MEMBERSHIP REMUNERATION No Taskforce member will receive any remuneration for services, however, a member shall be reimbursed for any reasonable out of pocket expenses incurred on behalf of and previously approved by the Taskforce. Attachment B -Mayor's Taskforce on Climate Action Priorities 1. BC Energy Step Code/Zero Carbon Step Code 2. Building Retrofits 3. Green Infrastructure & Nature-based Solutions 4. Accelerate Implementation of Strategic Transportation Plan -Active Transportation 5. Climate Lens for Policy Development Attachment C -Key Considerations for Successful Implementation of a Climate Lens Research was conducted on many of the leading municipalities across Canada that have already developed, implemented, or are implementing or considering a Climate Lens Assessment Framework, including Victoria, Kelowna, Kingston, London, Toronto, Windsor, Muskoka, Port Moody, Regional District of Kootenay Boundary, Montreal, and Ontario municipalities under the Clean Air Partnership. These emerging municipal climate frameworks and tools have the potential for significant beneficial impacts related to climate change, if successfully implemented. Based on the municipal scan, the following key components of a Climate Lens Framework were found to support successful implementation and impactful outcomes: • Ongoing interdepartmental collaboration to refine and tailor the scope and application of the Climate Lens Framework Assessment across the many unique service areas of the city, with varied climate change implications. • A Guidebook resource for using the Climate Lens Framework tool to provide an ongoing reference, provide context, answer key questions, and outline the process as well as offer examples so the tool is used effectively. • Training and education on climate science literacy and municipal implications, informed by the Climate Action Plan and corporate GHG emissions inventory, to enhance staff's understanding of how climate change impacts their service areas, and what actions can be taken to address these impacts. • A phased approach, moving from fundamental to a more comprehensive climate impact assessment to ensure successful adoption is achieved across the corporation, while maintaining validity of the tool. This approach is critical to integrate a simplified process, creating a strong foundation and enabling additional criteria and quantitative requirements to be added to the Climate Lens Assessment Framework in a way that does not overwhelm departments or impede early uptake of the tool and framework. Attachment D -Climate Lens Assessment Form 1. Mitigation (e.g. reducing or preventing greenhouse gas emissions) Climate change is caused by the increase in concentrations of greenhouse gases (GHGs) in the atmosphere. These increases are primarily due to human activities such as the use of fossil fuels for heat, transportation etc. New activity such as the construction of a new facility, the purchase and operation of a new vehicle, the purchase, replacement or operation of facility equipment, increased vehicle transportation, buildings or infrastructure in the community, or the pro- duction of waste will increase GHG emissions. 5. This project/policy will result in the following impacts to Corporate greenhouse gas (GHG) emissions? * Q GHG Impact has been considered - a significant(> 10%) reduction in annual GHG emissions is anticipated Q GHG Impact has been considered - a measurable(< 10%) reduction in annual GHG emissions is anticipated Q Project/policy does not result in GHG reductions but avoids more GHG intensive outcomes. () Project/policy is unlikely to result in a measurable increase in GHG emissions. Q Project/policy is likely to result in a measurable increase in GHG emissions. Q Project/policy does not result in the production greenhouse gas emissions. Q Not applicable 6. This project/policy will result in the following impacts to Community greenhouse gas (G HG) emissions? * Q GHG Impact has been considered -a significant(> 10%) reduction in annual GHG emissions is anticipated Q GHG Impact has been considered-a measurable (<10%) reduction in annual GHG emissions is anticipated Q Project/policy does not result in GHG reductions but avoids more GHG intensive outcomes. {,, J Project/policy is unlikely to result in a measurable increase in GHG emissions. Q Project/policy is likely to result in a measurable increase in GHG emissions. Q Project/policy does not result in the production greenhouse gas emissions. Q Not applicable 7. Can the project/policy be modified to reduce greenhouse has emissions? Q Yes Q No () Unknown 8. If greenhouse gas emissions are known, how much? (tonnes C02e, kg C02e, C02e means carbon dioxide equivalent) 9. If you would like, you may provide additional context here: 2. Adaptation (e.g. prepare for impacts of climate change to reduce risk and vulnerability) Climate change can increase and influence the risks and exposure of climate hazards such as increase heat and temperature, extreme rainfall and storms, droughts, flooding, and wildfires. These impacts can influence air (i.e. smoke) and water quality (i.e. pH, effluents, pollutants). New activity such as the construction of a new facility, the purchase, replacement or operation of facility equipment or infra- structure (water management), increased building development, infrastructure and growth in or near forested areas or water- ways within floodplains will be exposed to climate hazards and need to identify and recognize these impacts to infrastructure and growth to reduce damage and risks. 10. This project/policy will be affected or impacted by climate hazards? * Q Yes -At the Community Level Q Yes -At the Corporate/Municipal level Q No Q Unknown Q Not applicable 11. If yes, which climate impact is of concern? 0 Temperature 0 Precipitation 0 Flooding (river, coastal) 0 Wildfire 0 Water Quality 0 Air Quality 12. Temperature impacts of project/policy are C, Project reduces risks of temperature impacts compared to status quo. Q Project is unlikely to change risks of temperature impacts. Q Project increases risks of temperature impacts. Q None 13. Precipitation impacts of project/policy are Q Project reduces risks of precipitation impacts compared to status quo. Q Project is unlikely to change risks of precipitation impacts. Q Project increases risks of precipitation impacts. () None 14. Flooding impacts of project/policy are () Project reduces ri sks of flooding impacts compared to status quo. () Project is unlikely to change risks of flooding impacts. 0 Project increases risks of flooding impacts. 0 None 15. Wildfire impacts of project/policy are () Project reduces risks of wildfire impacts compared to status quo. Q Project is unlikely to change risks of wildfire impacts. Q Project increases risks of wildfire impacts. Q None 16. Water quality impacts of project/policy are () Project reduces risks of water quality impacts compared to status quo. () Project is unlikely to change risks of water quality impacts. 0 Project increases risks of water quality impacts. 0 None 17. Air quality impacts of project/policy are Q Project reduces risks of air quality impacts compared to status quo. Q Project is unlikely to change risks of air quality impacts. Q Project increases risks of air quality impacts. Q None 18. How does the project/policy take into account the climate hazards and identified consequences? 3. Benefits (e.g. provide multiple community benefits) Considers how climate actions intersect with community priorities, such as health and safety, equity, improved livelihood, eco- system functions and natural systems, and economic development so that projects/policies provide multiple benefits (advanc- ing co-benefits) beyond just climate action. 19. Does the project/policy result in adaptive or resilient benefits to the community7 (Please indicate which one or ones) * 0 Social factors (public health & safety, improved livelihood, cultural aspects) 0 Economic factors (community livability, strengthen local economy) 0 Environment factors (air, water, soil and vegetation, ecosystem function) 0 Not applicable 20. Please briefly describe the benefits ... * This content is neither created nor endorsed by Microsoft. The data you submit will be sent to the form owner. C Microsoft Forms Attachment E Aussi disponible en fran<;ais sous le titre: L'optique des changements climatiques: Programme d'infrastructure lnvestir dons le Canada -Lignes directrices generales. Information contained in this publication or product may be reproduced, in part or in whole, and by any means, for personal or public non-commercial purposes without charge or further permission, unless otherwise specified. Commercial reproduction and distribution are prohibited except with written permission from Infrastructure Canada. For more information, contact: Infrastructure Canada 180 Kent Street, Suite l l 00 Ottawa, Ontario Kl P 0B6 info@infc.qc.ca © His Majesty the King in Right of Canada, as represented by the Minister of Housing, Infrastructure and Communities, 2023. Cat. No. T94-5 l /2023E-PDF ISBN 978-0-660-68 l 13-9 l I ICIP Climate Lens General Guidance-Version 2.1 Disclaimer This guidance document is for those applicants applying for funding under the Investing in Canada Infrastructure Program (ICIP) of Infrastructure Canada (INFC) and who are obligated to meet the Climate Lens requirement. Hence, the climate change impacts requested in this document are a direct reflection of the parameters of the Climate Lens and INFC funding requirements only. This document is intended to be a learning tool for project developers and to introduce climate change considerations into project designs in the context of the Canadian environment. This guidance document is evergreen -meaning it will be periodically updated to remain aligned with advancing assessment methodologies. For the most recent version of the guidance, please consult the Infrastructure Canada website. 2 I ICIP Climate Lens General Guidance-Version 2.1 Revision History Revision No. Issue Date Revision Description Version 1.0 June 2018 First version implemented. Version 1.2 September 2019 General revisions after internal review. Version 2.0 March 2021 New format and approach introduced. Single form with streamlined GHG and resilience requirements. Version 2.1 January 2023 Revisions based on feedback from Version 2.0. Climate Lens Guidance now two documents: DMAF Climate Lens Guidance v 2.1 ICIP Climate Lens General Guidance v 2.1 3 I ICIP Climate Lens General Guidance-Version 2.1 Table of Contents 1 .0 Introduction ........................................................................................................................ 5 1 .1 What is the Climate Lens? ............................................................................................. 5 1.2 Applicable Programs ..................................................................................................... 5 1 .3 Cost Eligibility .................................................................................................................. 6 1 .4 Responsible Party ........................................................................................................... 7 1 .5 Infrastructure Canada Review of the Climate Lens ................................................... 7 2.0 Climate Lens Guidance .................................................................................................... 8 2. 1 Step by Step Instructions ................................................................................................ 9 2.2 Submission of the Climate Lens .................................................................................... 18 ANNEX A-Climate Lens Form ............................................................................................... 19 ANNEX B -Average P/T Grid Electricity Emission Intensities (tonnes/MWh)* ...................... 22 ANNEX C -Project-Specific GHG Baseline & Project Scenarios ......................................... 24 4 I ICIP Climate Lens General Guidance -Version 2.1 1 .0 Introduction The purpose of this document is to provide guidance to those who need to undertake a Climate Lens. The objectives of this guidance are to: 1 . Explain the purpose of the Climate Lens and which projects are subject to the requirement; 2. Provide information on when and how to submit a completed Climate Lens to Infrastructure Canada; 3. Provide step by step instructions on how to complete the various sections of the Climate Lens. 1 .1 What is the Climate Lens? The Government of Canada is committed to meeting its 2030 greenhouse gas reduction target, establishing a cleaner, more competitive and resilient economy and getting Canada to net-zero emissions by 2050. The Climate Lens is a key tool for assessing the climate impacts of infrastructure from both a greenhouse gas and resilience perspective. The tool also encourages applicants to consider how their projects can reduce GHG emissions and increase resilience to climate change, which benefits their communities and creates jobs. The Climate Lens is a project-level requirement applicable to Infrastructure Canada's Investing in Canada Infrastructure Program (ICIP) and Disaster Mitigation and Adaptation Fund (DMAF). The main goal of the Climate Lens is to raise awareness of climate change risks and impacts associated with projects and encourage improved choices by project planners, designers and decision-makers. The Climate Lens also supports Infrastructure Canada in measuring its progress towards meeting its climate goals. The Climate Lens has two key sections: GHG Emissions and Mitigation, which looks at the anticipated greenhouse gas (GHG) emissions impact of an infrastructure project; and Climate Resiliency, which examines the risk and resilience of the project to climate change related disruptions or impacts. l .2 Applicable Programs The table below identifies the programs, streams and sub-streams to which the Climate Lens applies and lists the project value thresholds at which the Climate Lens is required. Projects submitting under the Green Infrastructure -Climate Change Mitigation sub- stream of ICIP are expected to demonstrate an overall reduction in emissions compared to the business-as-usual (BAU) scenario. Projects submitting under the Green- 5 I ICIP Climate Lens General Guidance-Version 2.1 Infrastructure -Adaptation and Resilience sub-stream are expected to demonstrate an overall increase of resiliency to climate impacts. Table 1. Thresholds for Climate Lens Requirement under ICIP Climate Lens due at time of application. Climate Lens due at time of application. If total eligible Climate Lens due at time of application. project costs are greater than $10M Note l. Applicants from Quebec required to complete a Climate Lens under ICIP are to follow the guidelines for submission as outlined in their Integrated Bilateral Agreement. 1 .3 Cost Eligibility Infrastructure Canada strongly encourages applicants to perform analyses informed by best practices regarding GHG mitigation and climate risks and resilience in their projects. For this reason, the costs of undertaking the Climate Lens will be deemed eligible for cost-sharing for all projects approved for federal funding. This includes all associated costs incurred such as preparation and supporting analysis in keeping with best practices. Any costs incurred to undertake GHG Mitigation and/or Climate Resilience assessments under previous versions of the Climate Lens guidance remain eligible for reimbursement, except where own-force labour is used. Should applicants to the ICIP with projects beneath the $1 OM threshold wish to complete a Climate Lens on an optional basis, these costs would be eligible for cost- sharing if the project is approved for federal funding, as long as the Climate Lens conforms to the requirements outlined here and is submitted to Infrastructure Canada at the time of application. Since costs are only eligible for cost-sharing for federally approved projects, municipalities, Indigenous communities, and other applicants are encouraged to 6 I ICIP Climate Lens General Guidance -Version 2.1 engage regularly with the relevant province or territory to determine their project's likelihood of prioritization before incurring costs related to undertaking a Climate Lens. 1 .4 Responsible Po rty It is the applicant's responsibility to ensure that the Climate Lens is completed by someone with appropriate qualifications and knowledge of the project, as determined by the applicant. This could be the applicant, the applicant's design consultant, or another consulting body. If the applicant determines that the needed qualifications are not available on the project team, Infrastructure Canada recommends engaging a qualified professional, such as a professional engineer, GHG accounting professional, or registered professional planner. Infrastructure Canada is able to provide further advice and recommendations on selecting an appropriate professional at the applicant's request. 1 .5 Infrastructure Canada Review of the Climate Lens Infrastructure Canada will review each Climate Lens assessment and may follow up on the results of the Climate Lens to confirm the information submitted or to request further detail. Climate Lens assessments for projects in the Climate Change Mitigation and Adaptation, Resilience and Disaster Mitigation sub-streams of the Investing in Canada Infrastructure Program will be assessed appropriately to ensure program requirements have been met. The inclusion by applicants of supporting information, such as calculations, assumptions justification and references -either in the Climate Lens form itself or as an attachment - will help minimize the need for follow-ups and facilitate a timely review by Infrastructure Canada. Applicants are encouraged to contact Infrastructure Canada's Climate Lens Policy Team at: climatelens-optiquedeschanqementsclimatigues@infc.qc.ca for further assistance and/or links to other resources as necessary. 7 I ICIP Climate Lens General Guidance -Version 2.1 2.0 Climate Lens Guidance The Climate Lens is divided into four sections: l . Project Overview provides administrative information and a description of the project; 2. GHG Emissions & Mitigation looks at the anticipated greenhouse gas (GHG) emissions impact of the infrastructure project; 3. Climate Resiliency examines the risk and resilience of the project to a climate change related disruption or impact; 4. Climate Objectives provides additional and supporting information to the overall climate objectives of the project and the applicant. The following section provides guidance on how to complete each section of the Climate Lens . Additional guidance on acceptable approaches to quantifying GHG emissions reductions and the identification of climate risks is provided on Infrastructure Canada's website. Applicants may still submit Climate Lens assessments according to the previous versions of the Climate Lens Guidance (version l .0-2.0), if so desired. Note that ICIP projects from Quebec are to continue to follow the provincial guidelines to GHG quantification as outlined in the Canada-Quebec Integrated Bilateral Agreement. As a reminder ... • Projects under all ICIP streams (including those in the Green Climate Change Mitigation and Green Adaptation and Resilience stream under$ l O million) are required to complete the Climate Lens form. • Please ensure to complete each section of the form and provide an answer to each question. • Please ensure all supporting information has been included in the form or attached as a separate document. All data, calculations and assumptions used to answer the questions in the Climate Lens should be provided to help assist in the review and minimize the need for follow-ups. • Any changes to the project or the project timeline that occur after the submission of the Climate Lens must be reported to Infrastructure Canada as part of the regular progress reporting requirements and Infrastructure Canada will advise if a revised Climate Lens will need to be submitted. 8 I ICIP Climate Lens General Guidance -Version 2.1 2. l Step by Step Instructions Applicants are to follow the guidance provided in this section to complete the Climate Lens Form found in ANNEX A. Title of your project 1.2 Ultimate Reci ient Full legal identification of the primary entity that is undertaking the project 1.3 Pro·ect Descri tion: location, activities and timeline Present a brief description of the project including location, all major activities and its timeline occurring on the site. Location: Provide the address and/or GPS coordinates of the project. Provide a map to indicate the location of the project site, illustrating the boundary of the project and ensuring all relevant components of the project are included. • Identify whether the project site is currently vegetated, a wetland or a peat bog, on permafrost or is considered a brownfield. • Identify whether the project site is accessible by public transportation or active transportation (bicycle/walking). Description of Activities: The project description lays out the foundation for the types of activities that may be subject to climate risk, or which may release or sequester GHGs from the project. These activities must be quantified in the Climate Lens. • Describe the product or service provided by the project, including a description of any project-specific technologies that will be implemented. • Describe the services or output that will be provided and all major activities that will occur on the project site. • The type(s) of technologies that will be used can also be described here. Timeline: Detail the project timeline outlining the timing of operational activities. Specifically, the following estimated dates are required: • Construction start and end dates; • Operational start and end dates; • Dates of any major maintenance/repairs/refurbishments expected; • Expected lifetime of the project. Identify any risks that could substantially affect the project's operational timelines. 9 I ICIP Climate Lens General Guidance -Version 2.1 2.1 Is your project a GHG mitigation project OR are you implementing any GHG mitigation measures or best practices in the design of your project? If yes, describe how your project reduces GHG emissions and/or describe the project components that will result in a decrease in GHG emissions (see below for examples). If no, describe examples of project elements that were considered and explain why they were not implemented (e.g., solar panels were too expensive for the project budget). Then skip to section 3.0 Climate Resilience. GHG Mitigation Projects: o Renewable energy generation projects; o lnterties; o Electrification of industrial facilities (e.g., natural gas processing); o Large transportation projects (LRT /BRT); o Vehicles using clean fuels or zero-emission vehicles; o Waste & wastewater-e.g., flaring, biogas utilization; o Retrofits ex. installing energy efficient HY AC systems, other equipment, lighting, smart monitoring or removal of high GWP refrigerants. Projects implementing measures or best practices may include: o Using clean technologies such as wind, solar, or geothermal energy or energy storage such as batteries, whether alone or integrated into other assets (e.g., a building); o New buildings that: are Green Design (LEED) certified; with Energy Star ratings above 75; and/or use lower-carbon forms of heating and cooling such as heat pumps; o Implementing any new equipment to decrease process emissions (e.g., biofiltration in a wastewater treatment facility). 2.2 If your project is a GHG mitigation project or you are implementing GHG mitigation measures, what are the annual GHG emission reductions (tonnes CO2e/year) expected in 2030 from the operation of the project? Please provide an estimate of the operational GHG reductions expected in 2030 and for each year (if expected to be different) over the lifetime of the project. These values are best shown in a table format. Note that most projects, which expect to have consistent operations over the course of their lifetime, will likely be able to report very similar annual reductions over the lifetime of the project. Larger projects such as transit or renewable energy projects or projects being implemented in phases could see larger variations in their annual emission reductions. Supporting information, such as the description of the baseline, all main sources/sinks, emission factors, calculations and assumptions, will in most cases be required by Infrastructure Canada to conduct its review of the Climate Lens and should be included. l 0 I ICIP Climate Lens General Guidance -Version 2.1 The standard equation to calculate GHG emission reductions is the following: Baseline Emissions -Project Emissions = GHG Emission Reductions Where: The Baseline is the "business as usual" (BAU) scenario or hypothetical reference case against which the GHG performance of the project is measured. The Project represents the new project applying for funds under Infrastructure Canada's funding programs. Please consult Annex C for further information on pre-selected baseline and project scenarios that should be used for various project types under the Climate Lens. Annex B provides provincial and territorial average grid electricity emission intensities to be used where applicable (when calculating GHG emissions from electricity consumed). As an additional tool to assist applicants, Infrastructure Canada will provide sector- specific guidance for calculating GHG emission reductions for certain project types. This guidance will be made available in phases on Infrastructure Canada's website. If your project type is not currently supported by Infrastructure Canada's available sector-specific guidance, you may consider referring to the references noted in Section 2.3 for support in completing GHG quantification. For those applicants unable to provide a reliable estimate of the GHG emissions reductions at time of application, please explain why (e.g., methodology not yet established, missing project details due to early stages of development) and the estimated date at which the information will be submitted. An estimate of GHG emissions reductions will be required before first claim. Those projects under the Green Infrastructure -Climate Change Mitigation Stream will be required to provide an initial estimate of GHG reductions at time of application, and may be requested to provide an updated, more detailed estimate prior to first claim, following Infrastructure Canada's review. Applicants can refer to the Climate Lens website for additional resources on GHG mitigation or contact the Climate Lens Team at: climotelens- ootigued eschanqementsclimatigues@infc.qc.co for additional support. 2.3 Which international GHG quantification standards, GHG guidance or other supporting resources were consulted to understand the GHG impact of the project? Please list the resources you consulted to identify the GHG emissions and/or reductions resulting from your project. Other supporting information could include Impact Assessment studies, GHG or climate risk assessments, energy audits, benchmark studies, certification applications, etc. There are a variety of resources that can be consulted to help quantify the GHG emissions/reductions from your project such as the following: o ISO l 4064:2 l l I ICIP Climate Lens General Guidance -Version 2.1 0 0 0 0 0 0 0 0 World Resources Institute /WRI) GHG Protocol Federation of Canadian Municipalities: Guidebook on Quantifying GHG Reductions at the Project Level ICLEI/C40 Cities/WR! GHG Protocol Global Protocol for Community Scale GHG Emission Inventories US Community Protocol for Accounting and Reporting of GHG Emissions Alberta Offset Protocols Climate Action Reserve Protocols lnteraovernmental Panel on Climate Change /IPCC) Guidelines for GHG Inventories UNFCCC Clean Development Mechanism Methodologies 3.1 Identify all current and projected climate-related hazards given the project's location such as flooding, wildfire risk, permafrost thaw or coastal erosion. Assess high or medium risks (in likelihood and severity) to the project and the services it is to provide over its lifespan. Provide a list and brief description of all the current and future climate-influenced hazards facing the project over its lifetime. Climate-influenced hazards may include: increasing temperatures, extreme heat, drought, wildfires, freeze-thaws, increased snow loads, increasing precipitation, ice, storms, earthquakes, etc. You may wish to consult municipal or regional climate adaptation reports to identify the climate-influenced hazards that are relevant to your project location. For each hazard, it is recommended to look at both the current and future climate data projections for the lifespan of the project. (E.g., if your project will be complete in 2024 and has an expected lifespan of 30 years, you will want to look at current climate data as well as the 2050 RCP-8.5 climate projections). The climate projections can be provided in a chart or written format, describing how these parameters are projected to change against the historical baseline. (E.g., according to The City's Climate Risk Report, precipitation is expected to increase by 11 % over current historical baseline by 2080 under a high climate change scenario). You may wish to consult the Canadian Centre for Climate Services for support. Exam le Chart: Climate influenced hazard Number of very hot days +30 Etc. Historic value (197 6-2005) l day annually Short-term forecast (2020- 2050)/ percent chan e 4.9 annually (+3.9%) Long term forecast (2050- 2080)/ percent chan e 16.3 days annually(+ 15.2% 12 I ICIP Climate Lens General Guidance-Version 2.1 Data source Climateatlas.ca In order to understand the risks associated with the natural hazards identified above the various components of the project should be assessed against each hazard. The likelihood of the hazard impacting the project, and the consequenc e or level of severity of that impact, should also be analyzed. Using both the likelihood and severity of a hazard will help identify those aspects of a project that are at highest risk to climate impacts (e.g., High Risk= Very High likelihood+ Very high consequence). Please follow Steps 1 to 4 to assess the risks of the natural hazard to your project. Please include a written description of which project components will be subject to the highest risks and why. All risks can additionally be listed in the Table provided under Step 4. For example: o Wildfires will present a risk to a community centre project due to its location near a forested area that is experiencing increased occurrence of drought and increasing temperatures; or o Projected increases in rainfall will present a high risk to bus shelters as it can lead to flash flooding that can cause damage to the physical infrastructure, obstruct access for bus users, cause disruptions to maintenance work, and result in delays of services. Step 1: Assess the severity or consequence of the hazard's impact on the project. • Consequence refers to the impact of the hazard on the project. Note a hazard can lead to a range of consequences. A consequence can be certain or uncertain and can have both positive or negative effects on the project's objectives. • Determine the level of consequence from very-low to very high. Step 2: Assess the likelihood of the hazard's impact on the project. • Likelihood can be understood as the chance of something occurring or the chance of a defined climate hazard over a given time horizon. Applicants should feel free to use their own discretion when determining the likelihood risk for each hazard, but are encouraged to consult additional climate data relevant to the hazards identified. Additional resources are listed in Section 3.3. • Determine the level of likelihood from very low to very high. Step 3: Identify the number and level of risks of each hazard on the project. • Using the matrix below in table 3.0, assess the risk level for each interaction by finding where the consequence risk and likelihood risk meet. • For each hazard identified record whether the hazard poses a low, medium, or high risk to the project. 13 I ICIP Climate Lens General Guidance -Version 2.1 Table 3.0 Very High Medium , I Risk High Low Risk -' ' Moderate Low Risk Consequences --' Low Negligible Low Risk Low Risk Medium Risk Medium Risk Risk Very Low Negligible Negligible Low Risk Low Risk Low Risk Risk Risk Very Low Low Moderate High Very High Likelihood Step 4: Record Risks If helpful, applicants may complete the following template to identify to risks of each hazards. Climate-Justification of Justification Influenced Consequence Consequence Likelihood of Overall Risk Risk Likelihood Risk Hazard Risk Risk Flooding High Project could Moderate Level of Medium be damaged flood risk by flooding if required to 1-in-l 00 year damage or flood were to impact the occur project is rare in frequency Note, INFC suggests the following definition based on the definition by the Public Infrastructure Engineering Vulnerability Committee {PIEVC) Protocol (see www.pievc.ca): o Negligible Risks may not require further consideration o Low Risks may require action o Medium Risks require action o High Risks require action Please list any methodology that was used to assess future climate risks such as ISO 31000, PIEVC or the PIEVC High Level Screening Guide. Applicants can refer to the Climate Lens website for additional support / methodologies for assessing climate risk. If no c limate risks were identified, please justify why (e.g., the climate risks examined only pose a minimal risk). Infrastructure Canada may follow up if known potential climate hazards are missing or the analysis does not align (e.g., a community centre on a coastline is not considering risk of sea level rise). 14 I ICIP Climate Lens General Guidance -Version 2.1 3.2 Describe all of the risk mitigation measures that will be taken to improve the climate resiliency of your project. Identify measures for all of the medium and high risks identified in 3. 1 . If no measures are being taken to improve the climate resiliency of your project, please describe why. If your project is a protective infrastructure, please mention that. • Please identify and describe risk treatment or adaptation measures for all medium and high risks in order to reduce unacceptable risks to acceptable levels. o Your response should address all risks identified in 3. 1, and describe how they will address the specific climate risks to the project. • Examples include building a seawall or restoring wetlands to address flooding; providing firebreaks to decrease severity of wildfires; installing flooding sensors in elevators; or elevating electrical and HV AC systems to minimize flood risk. This can include considering nature-based solutions. • Please list any resilience standards, guidance, or tools that were consulted. For example: CSA S900. l : 18 Climate change adaptation for wastewater treatment plants; CSA PLUS 4011-19 Technical guide: Infrastructure in permafrost: A guideline for climate change adaptation; and the National guide for wildland- urban-interface fires . For guidance and standards that incorporate climate resilience visit: Infrastructure Canada -Codes, Standards and Guidance for Climate Resilience • If climate risk reduction measures were identified but not implemented, please justify why not. • Infrastructure Canada may follow up and request more information on why resiliency measures have not been taken if the justification is not clear, or if resilience measures for potential climate risks identified in 3.1 are missing. • Applicants can refer to the Climate Lens website for additional resources on climate adaptation. 3.3 Please list all of the climate change data and tools that were used to determine the risks to your project. List the climate data and tools, such as future climate projections available through the Canadian Centre for Climate Services, that were consulted to assess any current and future climate risks to your project. • Examples include: o Pacific Climate Impacts Consortium: Design Value Explorer o ClimateData.ca: https://climatedata.ca/ o Canadian Centre for Climate Services: httos://www.canada.ca/en/environment-climate- chanqe/services/climate-chanqe/canadian-centre-climate-services.html o Climate Atlas of Canada: https://climateatlas.ca/home-paqe o Platform for the Analysis and Visualization of Climate Science: https://ouranosinc.aithub.io/pavics-sdi/ 15 I ICIP Climate Lens General Guidance -Version 2.1 • Applicants can refer to the Climate Lens website for additional support and 4.1 Does your community/ municipality have a Climate Action Plan and if yes, does your project align with this plan? • Please indicate the specific community/municipal climate action plan. • This can be a stand-alone climate action plan or integrated into a broader Strategic Plan. • Examples include the City of Kelowna, British Columbia's Community Climate Action Plan 2018-2023 and the Halifax Regional Municipality, Nova Scotia's HaliFACT: Acting on Climate Together. • Please describe how the project (or measures being considered) fits into the climate action plan, and how this will contribute to a more sustainable future for your community. 16 I ICIP Climate Lens General Guidance -Version 2.1 I, the undersigned, as authorized by my organization, confirm the statements above are true and accurate, and attest that: • opportunities to quantify and minimize GHG emissions during the construction and operation of the project will be considered in the planning, design and development/ implementation of this project to the extent possible; • and, climate change risks and adaptation and resiliency measures will be considered in the siting/location, design/build, and planned operation and maintenance of this project to the extent possible and reflecting the project's cost, criticality and vulnerability. Infrastructure Canada may follow up on the results of the Climate Lens to confirm the required information or to request further detail. Consequently, applicants should retain all the information used to complete the Climate Lens. Signature of person responsible for completing the Climate Lens: X Date: Name: Position: Organization: Address: Contact Number: Email: 17 I ICIP Climate Lens General Guidance-Version 2.1 2.2 Submission of the Climate Lens For projects under the Investing in Canada Infrastructure Program, the Climate Lens is to be completed and submitted in its entirety at the time of application, unless otherwise indicated by Infrastructure Canada. Please ensure all information and supporting documentation is included or attached with the Climate Lens form at time of submission. Applicants indicating the potential for GHG emissions reductions but who are unable to provide an accurate estimate in Section 2.3 may submit a rationale for being unable to do so at time of application. If Infrastructure Canada accepts the rationale and the project is approved, the applicant will be asked to provide an estimate of GHG emissions reductions before first claim. Those projects under the Green Infrastructure - Climate Change Mitigation Stream are required to provide an initial estimate at time of application, and may be requested to provide an updated, more detailed estimate prior to first claim, depending on the results of Infrastructure Canada's review of the assessment. Projects are to be submitted to Infrastructure Canada via the Infrastructure Recipient Information System (IRIS) digital portal (or equivalent), unless otherwise stated in program guidelines. If the project requires changes to its components, process or timeline, a revised Climate Lens may need to be submitted. Only project changes that may impact the GHG emissions estimate significantly may trigger the need for a re-assessment. Infrastructure Canada will review the changes and will contact the applicant if a revised Climate Lens is required. Infrastructure Canada will make the Climate Lens and all supporting guidance available via provincial and territorial contacts as well as on the Infrastructure Canada website. The applicant, via the province or territory, is responsible for completing the Climate Lens and providing the completed form to Infrastructure Canada. It is the applicant's responsibility to meet any request for further information from Infrastructure Canada. 18 I ICIP Climate Lens General Guidance -Version 2.1 ANNEX A -Climate Lens Form ICIP Climate Lens Version 2.1 1.1 Project Title 1.2 Ultimate Reci ient 1.3 Pro·ect Descri tion: Location, activities, timeline Location: Activities : Timeline: Phase Start Date-DD/MM/YYYY Construction Operation Any major maintenance/repairs Expected Lifetime: I l+I Infrastructure Canada End Date-DD/MM/YYYY Description of any maintenance, repairs, refurbishments expected: 2.1 Is your project a GHG mitigation project OR are you implementing any GHG mitigation measures or best practices, such as clean technologies, renewable energy or LEED standards in the design of your project? 2.2 If your project is a GHG mitigation project or you are implementing GHG mitigation measures, what are the annual GHG emission reductions (tonnes CO2e/year) expected in 2030 from the o eration of the ro·ect? 19 I ICIP Climate Lens General Guidance -Version 2.1 I 2.3 Which international GHG quantification standards or GHG guidance was consulted to understand the GHG impact of the project? 3.1 Identify all current and projected climate-related hazards given the project's location such as flooding, wildfire risk, permafrost thaw or coastal erosion. Assess high or medium risks (in likelihood and severity) to the project and the services it is to provide over its lifespan. 3.2 Describe all of the risk mitigation measures that will be taken to improve the climate resiliency of your project. 3.3 Please list all of the climate change data and tools that were used to determine the risks to your project. 4.1 Does your community / municipality have a Climate Action Plan and if yes, does your project align with this plan? 20 I ICIP Climate Lens General Guidance-Version 2.1 I, the undersigned, as authorized by my organization, confirm the statements above are true and accurate, and attest that: • opportunities to quantify and minimize GHG emissions during the construction and operation of the project will be considered in the planning, design and development/ implementation of this project to the extent possible; • and, climate change risks and adaptation and resiliency measures will be considered in the siting/location, design/build, and planned operation and maintenance of this project to the extent possible and reflecting the project's cost, criticality and vulnerability. Infrastructure Canada may follow up on the results of the Climate Lens to confirm the required information or to request further detail. Consequently, applicants should retain all the information used to complete the Climate Lens. Signature of person responsible for completing the Climate Lens: X Date: Name: Position: Organization: Contact Number: Email: 21 I ICIP Climate Lens General Guidance-Version 2.1 ANNEX B -Average P/T Grid Electricity Emission Intensities (tonnes/MWh)* 0.002 0.003 0.003 0.004 0.002 0.002 0.002 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.259 0.269 0.268 0.275 0.273 0.274 0.272 0.258 0.252 0.124 0.116 0.124 0.113 0.123 0.114 0.068 0.012 0.012 0.012 0.011 0.011 0.011 0.011 0.010 0.010 0.010 0.011 0.010 0.010 0.009 0.067 0.062 0.051 0.017 0.008 0.008 0.008 0.010 0.012 0.014 0.016 0.020 0.014 0.013 0.009 0.562 0.458 0.457 0.463 0.464 0.417 0.401 0.384 0.361 0.118 0.116 0.112 0.109 0.105 0.101 0.747 0.744 0.712 0.635 0.498 0.480 0.469 0.470 0.455 0.457 0.442 0.435 0.447 0.454 0.458 0.044 0.067 0.065 0.066 0.077 0.093 0.081 0.067 0.064 0.062 0.060 0.058 0.041 0.035 0.030 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.366 0.299 0.306 0.252 0.249 0.253 0.221 0.173 0.167 0.163 0.157 0.146 0.142 0.137 0.133 0:121 0.068 0.077 0.086 0.089 0.099 0.074 0.046 0.029 0.018 0.014 0.018 0.023 0.032 0.041 22 I ICIP Climate Lens General Guidance -Version 2.1 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.111 0.118 0.114 0.129 0.129 0.120 0.121 0.122 0.124 0.125 0.126 0.128 0.130 0.009 0.009 0.009 0.008 0.008 0.008 0.008 0.008 0.008 0.007 0.007 0.007 0.007 0.006 0.006 0.006 0.008 0.025 0.026 0.031 0.020 0.018 0.016 0.017 0.019 0.020 ;N~va.S_c~tla '-,,: ) _!;,,., ""--'" -_, , -' ' " -0.-094 0.088 0.088 0.086 0.084 0.082 0.081 0.079 0.076 0.074 0.074 0.074 0.074 0.074 0.470 0.482 0.488 0.488 0.501 0.505 0.515 0.523 0.525 0.529 0.535 0.544 0.547 0.556 0.024 0.021 0.019 0.017 0.016 0.015 0.015 0.015 0.014 0.013 0.011 0.009 0.009 0.011 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.130 0.126 0.123 0.121 0.117 0.115 0.112 0.108 0.105 0.098 0.095 0.092 0.089 0.085 0.054 0.067 0.052 0.039 0.027 0.019 0.013 0.017 0.020 0.026 0.033 0.042 0.050 0.034 Notes: l. Grid Emissions intensity is defined as: (utility generation emissions) + (industrial net sales to grid by sector) x (industrial electricity generation emissions factor) divided by electricity consumption from the grid. 2. For alternative emission intensities from B.C. electricity, consult the provincial emission intensities found here. Source: ECCC's Greenhouse Gas Emissions Projections. Link: Canada's Greenhouse Gas Emissions Projections -Environment and Climate Change Canada Dalo. Last Modified: June 2022. 23 I ICIP Climate Lens General Guidance -Version 2.1 0.001 0.001 0.131 0.007 0.022 0.073 0.561 0.013 0.001 0.000 0.082 0.022 ANNEX C -Project-Specific GHG Baseline & Project Scenarios The following provides an overview of various baseline and project scenarios acceptable under the Climate Lens. ~ill New Building -Recreation or Sports Complex, Community Centre, Library, Housing Complex Building/Facility Retrofits Facility or rural community installing Renewable Energy Solar/Wind Renewable Energy generation as part of "greening" the provincial rid Electrification of Industrial Facility Fleet Replacement Large Transit (LRT/BRT) Facility designed and operated according to minimum building codes in province/municipality. Facility designed and operated with GHG measures above and beyond standard codes, such as use of solar energy, LEED design, low- carbon materials, etc. For facilities that are not being designed or operated with any additional GHG mitigation measures, the project= baseline and no operational GHG reductions will result from the project. If no changes to building use or occupancy is expected, a historical 3 year average of all operational sources can be used. If changes are expected to use or occupancy, operational sources must be estimated to reflect these chanqes. Energy source that was being used previously or would be used in absence of the renewable enerqy source (e.Q ., diesel or natural qas,. Energy generation facility that would have been built instead of the renewable energy facility (On-the margin) (e.g., natural gas generation facility). Energy source that was being used previously or would be used in absence of the connection to the qrid (e.Q., diesel/natural qas,. Fuel that was being used or would be used instead of the new fuel source (e.Q., diesel, qas,. The continuation of personal vehicle use without the new transit system. Facility retrofitted to increase energy efficiency and/or minimize fugitive emissions and/or installation of renewable energy. Renewable Energy generation (considered zero- emitting). Renewable Energy generation (considered zero- emitting). The provincial grid. Clean energy source (e.g., electricity, hydrogen, biofuels). The transition (modal shifting) from personal vehicle use to public transit, which is considered less fuel - intensive. If the new transit system includes the construction of stations or storage facilities, the GHGs from these facilities should be quantified separately according to the new buildings baseline and project scenarios. 24 I ICIP Climate Lens General Guidance -Version 2.1 Active Transit (walking or biking paths) New Wastewater/Drinking Water Facilities Wastewater /Drinking Water Facility Retrofits The continuation of personal vehicle use without the new active transit system. Facility built to minimum building codes and wastewater/drinking water standards in province/municipality. The transition (modal shifting) from personal vehicle use to active transit, which is considered zero- emittinq. Facility built with GHG measures beyond building codes & standards, such as implementation of energy efficient equipment or renewable energy or equipment/ processes to minimize fugitive or rocess emissions (CH4/N20). For infrastructure that is not being designed or operated with any additional GHG mitigation measures, the project= baseline and no operational GHG reductions will result from the project. If no changes to facility use or capacity (volume of water or wastewater treated) is expected, a historical 3 year average of all operational sources can be used. If changes are expected to facility use or capacity, sources must be estimated to reflect these chanqes. Facility retrofitted to increase energy efficiency and/or minimize fugitive or process emissions (CH4/N20) and/or installation of renewable energy. Critical Infrastructure (Roads, I Infrastructure designed and operated according Bridges, Culverts, Broadband) to minimum building codes/ standard practices in province/municipality. Infrastructure designed and operated with GHG measures beyond standard codes. For e.g., use of low-carbon materials or vehicles/equipment using clean fuels. Disaster Mitigation and Adaptation projects Landfills For infrastructure that is not being designed or operated with any additional GHG mitigation measures, the project = baseline and no operational GHG reductions will result from the project. Infrastructure designed and operated according to minimum building codes/ standard practices. Infrastructure designed and operated with GHG measures beyond standard codes. For e.g., use of low-carbon materials or vehicles/equipment using clean fuels. For infrastructure that is not being designed or operated with any additional GHG mitigation measures, the project= baseline and no operational GHG reductions will result from the project. Facility meeting minimum standard regulations. Facility flaring (where not mandated by regulations) or capturinq methane for bioqas production. 25 I ICIP Climate Lens General Guidance -Version 2.1