Nelson council passes first two readings of Building Bylaw amendments targeting Energy Step Code 4, with third reading set for December 2026

Nelson city council, a municipal government in British Columbia's West Kootenay region, passed the first two readings of amendments to its Building Bylaw on 8 July 2026. The amendments would require new Part 9 buildings - housing and small buildings - to meet Energy Step Code 4 (Step 4) and Zero Carbon EL3 at first and second reading, with an upgrade to Zero Carbon EL4 planned at third reading^[1]. Third reading is scheduled for December 2026, at which point the full EL4 carbon requirement would take effect^[1].

What the bylaw amends and what it requires

The BC Energy Step Code is a performance-based framework embedded in the BC Building Code^[1]. It was enacted as regulation on 6 April 2017 and entered legal force on 15 December 2017. The code sets five progressive steps of energy efficiency for new construction, with the province targeting net-zero-energy-ready buildings by 2032.

The provincial minimum for new Part 9 residential construction across BC is currently Step 3, which has been in force since May 2023. Nelson's proposed bylaw would move the city one step higher. The two codes at issue are distinct:

• BC Energy Step Code - measures energy use through insulation, airtightness, windows, and overall building performance. Step 4 requires homes to use 40 per cent less energy than pre-2018 buildings and sets an airtightness target of 1.5 ACH50, compared with 2.5 ACH50 at Step 3^[1].
• BC Zero Carbon Step Code - measures operational greenhouse gas emissions, with an emphasis on heating and hot water systems. EL-4 is the most stringent tier and in practice requires zero-emission energy sources such as heat pumps for space heating and domestic hot water.

The bylaw amendment applies to Part 9 buildings under the BC Building Code - single-family homes, duplexes, townhouses, and other small residential structures. Part 3 complex buildings are not included in this requirement^[1].

Compliance requires energy software modelling before construction and a blower door test upon completion to confirm performance. A building permit will not be issued until a compliance report from an energy advisor confirms the design meets the required efficiency level^[1].

Where Nelson sits relative to the province and region

The proposed EL4 requirement for Part 9 buildings would move Nelson into one of the furthest code-compliant scenarios possible, well ahead of the region and much of the province.

The city intends to hold at Step Code 4 - with the provincial requirement currently sitting at Step 3 - and wait there until the province mandates the fifth stage, which is not expected until 2032.

City director of development services and climate Natalie Andrijancic told council that engagement with the local building community found Step 4 was already being achieved on many projects, and that builders, designers, and energy advisors generally support clear implementation timelines that provide certainty for project planning^[1]. "Bringing this forward will help ensure that Nelson's building community is well prepared for upcoming provincial requirements, while providing clarity and a predictable transition," she said in her report to council.

The building community also expressed concerns about moving directly to Step 5. Common themes included higher costs and more complex construction and mechanical systems - factors that informed the recommendation to stop at Step 4 and focus instead on embodied carbon work while the province catches up.

Nelson has taken a measured approach to building electrification and was the first municipality in the West Kootenays to introduce a Zero Carbon Step Code policy.

Procedural status and what governs permits already filed

The bylaw amendments passed first and second reading on 8 July 2026^[1]. Third reading - at which the Zero Carbon requirement would be upgraded from EL3 to EL4 - is scheduled for a December 2026 council meeting^[1]. The bylaw does not take legal effect until third reading and adoption are complete.

Permit applications filed before the bylaw is adopted continue to be governed by the requirements in force at the time of application. Designers and contractors working on projects in Nelson should confirm the current bylaw status with the city's building department before submitting permit applications, as municipal requirements can change on their own schedules ahead of provincial timelines.

The relevant code sections for EL-4 compliance pathways are Sections 9.37 and 10.3 of the BC Building Code. The authority having jurisdiction for any interpretation of how those sections apply to a specific project is the City of Nelson's building department.

Trades directly affected include residential builders, framers, insulation contractors, mechanical contractors installing heating and ventilation systems, and energy advisors conducting modelling and blower door testing. The December council meeting will be the point to watch for the bylaw's final form and adoption date.