Provincial and Territorial Tiered Energy Code Adoption Landscape

In 2016, provinces and territories signed the Pan-Canadian Framework on Clean Growth and Climate Change. It signaled their commitment to reach net-zero energy ready (NZER) standards by 2030, or sooner. More recently, they agreed to harmonize their building codes with national regulations. The Construction Codes Reconciliation Agreement committed provinces and territories to adopt and implement the 2020 National Model Codes framework by March 2024.

Below, we dig into how each province and territory has approached the adoption of the 2020 model codes, and the advantages of tiered codes, beyond energy efficiency.

Where we stand: provincial and territorial efforts to adopt the 2020 model codes

Since the release of the 2020 model codes, we’ve been monitoring official announcements, communicating with provincial and territorial officials, and working with our peers to track adoption plans. We asked key questions about how each jurisdiction intends to implement the tiered codes, what tier they intend to implement, whether they have a timeline for reaching the upper tiers by 2030 or before, and if they plan to allow municipalities to implement a tier above the provincial or territorial standard.

The past two years represent a significant shift in how provinces and territories approach building code adoption. In the past, jurisdictions could adopt the national model codes in whole, make amendments to those codes to reflect provincial/territorial priorities, or even forgo the adoption of updated model codes. Over the past two years, however, and in the spirit of harmonization, provinces have worked to limit variations between their existing provincial codes and the model codes and incorporate the tiered framework. In some cases, they have skipped over more recent editions of the national model codes that had not previously been adopted in their jurisdiction. And while the hard work of all those involved in moving to the 2020 model codes and the tiered framework should be applauded, there is still more work to be done. 

The tiered code framework offers provinces and territories an opportunity to lay the path toward upper-tier adoption, and NZER standards.¹ Our landscape review shows that while some provinces demonstrate leadership in building performance, others lag behind:

• A leader in building performance, British Columbia has implemented Step 4 of the BC Energy Step Code and has introduced Canada’s first Zero Carbon Step Code.
• Saskatchewan  will adopt Tier 2 of the NBC 2020 and Tier 1 of NECB 2020
• The Yukon has adopted the full suite of tiers and made those tiers accessible for municipalities to use. 
• Nova Scotia has adopted Tier 1 of the NBC and the NECB and plans to adopt higher tiers incrementally. Originally planning to reach NBC Tier 3 in 2026 and NEBC Tier 3 in 2028, the province has announced a delay in these plans citing perceived labour and supply chain challenges. 
• Manitoba was the first province to adopt the 2020 model codes — Tier 1 of the NBC and NECB. 
• Prince Edward Island has also adopted Tier 1 of the NBC and NECB.
• Alberta has adopted Tier 1 for housing and small buildings under Part 9 of the NBC Alberta Edition and Tier 1 of the NECB Alberta Edition. While a public adoption roadmap is not part of the announced plans, a transition period will be used to allow authorities having jurisdiction time to prepare for the current code changes.
• Ontario will continue to operate under the Supplementary Bulletins (SB) SB12 and SB10. First put in place in 2017, these supplements act as guidance for energy performance and efficiency levels. Harmonization with the NBC 9.36 2020 has not been announced at this time. 
• Quebec is not adopting the tiered framework at this time, citing updates to their provincial building code made in recent years and the need for industry to absorb those changes.
• New Brunswick had announced plans to adopt the 2020 model codes and outline a path toward the upper tiers, but a public announcement on the province’s intentions has not yet been made available.

The benefits of tiered codes beyond energy efficiency

For new construction, building codes offer a one-time opportunity to lock in a high level of energy and emissions performance that may be challenging or costly to achieve in future retrofits.  Advanced measures in the 2020 model codes like enhanced building envelope requirements reduce thermal energy loss and enable the use of low-carbon heating systems. This benefits occupants, offering protection from rising energy costs and increased comfort and health. It also helps avoid structural issues related to moisture and makes buildings more resilient in the face of extreme heat, forest fire smoke and other serious weather events associated with climate change. Solving these problems down the road is more difficult and will cost Canadian consumers and businesses more in the long run. 

Costs are an oft-quoted reason to delay or slow the adoption of the upper tiers. While early attempts to construct high-performance buildings were associated with marginal construction cost premiums, the BC Step Code has demonstrated that, on average, these premiums are already falling. Tiered codes offer industry leaders a predictable path, helping them learn and adapt new techniques and processes. Aided by supports such as the Code Acceleration Fund, they can help put the cost of constructing better-performing buildings on par with those constructed to today’s conventional code minimum standards. By providing clear timelines for tier advancement, provinces can enhance industry transparency. This means that businesses can better forecast the demand for higher-performing buildings, and adapt business processes and construction techniques to unlock innovative approaches to how we construct our homes, businesses, and institutions.

What really impacts the cost of constructing new buildings is unpredictable regulatory changes that complicate supply chains and project coordination. Uncertainty in the future of building regulations makes it difficult to forecast the mix of people, technologies, and practices needed for future projects. Tiered codes, and the predictable regulatory path they offer, can help the building sector deliver more affordable buildings by avoiding project delays and boom-bust dynamics which keep people from entering the workforce and lead to cost overruns.  

Certainty is one of the key criteria in delivering affordable newly constructed buildings. Provincial and territorial governments are well positioned to leverage tiered codes to better facilitate the coordination of technical leadership, training and programs, and incentives that support the construction of energy efficient, low carbon new construction. The certainty tiered codes provide can also play an important role in delivering direction and focus to the workforce. In turn, trades, energy advisors, architects, and more can confidently invest in themselves to build the knowledge and skills that pay off in the form of good local jobs.²

The time is now

The goal of tiered codes is to incrementally improve building energy performance while also establishing a clear and predictable path towards net-zero energy-ready construction standards. Provinces and territories deliver this certainty and signal the direction of the building sector by announcing a clear path and timeline by which they will adopt the upper tiers of the 2020 model codes. By clearly outlining the requirements that will be expected years in advance, the sector can respond by establishing the investment and knowledge infrastructure needed to construct affordable homes and businesses for all Canadians effectively.

Ambitious action on the part of Canada’s sub-national governments will ensure that all stakeholders in the buildings sector — including governments, industry and the workforce — have a clear and stable regulatory path forward, one that allows them to plan for future code requirements while investing in Canada’s net zero future.

¹ At the time of writing adoption plans were unclear for Newfoundland & Labrador, Nunavut, and the Northwest Territories.

² Haley, Brendan. Energy efficient buildings are critical infrastructure in a net-zero emission economy. October 2020.