Vancouver council will decide next week whether it will uphold, modify or reverse the city’s policy on banning natural gas for heating and hot water in construction of new detached homes.
Council will hear from staff Nov. 26 on a report that recommends building bylaw changes to allow gas in new builds, while still pursuing Vancouver’s 2030 climate targets.
The city’s current policy to not allow natural gas use for heating and hot water in new detached homes has been in place since 2022. The policy, however, does allow for gas in cooking and some ancillary uses, such as a gas fireplace or backup heating, in new detached homes.
The policy does not limit or regulate gas in Vancouver's existing buildings.
The staff report recommends builders and developers be given the option between two “compliance paths” when building new homes.
Those paths are:
• To build to a high level of the Zero Carbon Step Code (ZCSC), which generally does not allow gas for space heating and water heating.
• Or to build to the highest step of the Energy Step Code (ESC), which achieves a higher level of energy efficiency through building envelope requirements but allows gas to be used for space heating and hot water.
Both paths allow the use of gas for cooking.
'Higher carbon emissions'
“Currently, the proposed approach is generally aligned with the province and other local governments,” the report said. “However, the path allowing gas could fall out of alignment with the province as early as 2026, as the province begins requiring local governments to follow the ZCSC.”
Allowing natural gas for space heating and hot water provides builders with more choice over fuel source. But it is not expected to improve affordability or accelerate housing approvals when compared to the low carbon option, the report said.
“Buildings that opt to use the gas compliance path will have significantly higher carbon emissions, which will make it more challenging to reach Vancouver’s 2030 climate targets, and may incur future costly retrofits,” the report said.
“Staff engaged with a range of stakeholders on the proposed compliance paths and the feedback was generally supportive.”
Narrow 6-5 vote
The report was requested by council in July after a narrow 6-5 vote.
The push was led by Coun. Brian Montague, who argued the cost of building a house solely powered by electricity was expensive. Montague said builders should be allowed a choice of natural gas or electrification — a choice the councillor suggested could unlock more home construction.
He said the city’s “well-intentioned” policy from 2022 to only allow natural gas in new homes for cooking and powering a fireplace translates to a negative effect on affordability, both for builders and potential renters or buyers.
“Many of those costs will be passed directly to — or will trickle down — to seniors, renters and those who can least afford them,” Montague said at the time.
“Limiting energy options is a significant barrier to creating more housing, especially much-needed missing middle and multiplex housing because the costs are being driven way too high.”
Since that vote, council has been inundated with emails and phone calls from people against and in support of reversing the policy. The issue has also caused confusion among builders and residents, triggering the city’s communications department to create a frequently-asked-questions document.
The following is meant to clarify the city’s requirements:
• Is gas usage banned in new buildings in Vancouver?
No, gas is not banned for new buildings. Vancouver’s requirements for new buildings limit gas for space heating and hot water, which are the main sources of carbon emissions in buildings. Vancouver’s requirements allow gas stoves or fireplaces. All recommendations to council on Nov. 26 continue to allow gas stoves and fireplaces.
• Have new low-rise homes been connecting to gas since the strict limits for its use for space heating and hot water have gone into effect (January 2022)?
The majority of new low-rise homes continue to connect to gas for accessory loads such as cooking, laundry, barbecues, fireplaces, etc. even when using electricity for heating and hot water.
• Do Vancouver’s building requirements mean that restaurants won’t be able to use gas stoves?
No, Vancouver’s building requirements do not impact cooking equipment in residential or commercial buildings. Vancouver’s requirements are focused on eliminating gas-fired space heating and hot water from new construction. Residents and businesses can continue to use gas for cooking. This will not change with any of the recommendations presented to council on Nov. 26.
• Why does Vancouver limit the use of gas in new buildings?
Burning natural gas for space heat and hot water in buildings is the single largest source of carbon pollution in the city. Limiting gas in new buildings reduces emissions from those buildings and avoids costly retrofits in the future. Transitioning to clean, renewable energy for space heating and hot water in new buildings is a common approach in cities across B.C. and elsewhere in North America as a way of meeting climate goals.
• Is eliminating gas in new buildings a provincial requirement?
It’s not currently a provincial requirement. The provincial government created the Energy Step Code and Zero Carbon Step Code to enable cities in B.C. to move towards more energy-efficient buildings that emit less carbon pollution, and to do so in a way that is consistent and aligned with provincial direction.
Under the province’s CleanBC Roadmap, the provincial government will implement the highest level of the Zero Carbon Step Code by 2030. This means the use of natural gas for space heating and hot water equipment will be effectively prohibited in new buildings by 2030 (though several cities have already moved to the highest step of the Zero Carbon Step Code).
• Are electric space and hot water heating equipment more expensive?
Staff reviewed the cost implications of electric and natural gas compliance paths for residents, builders and developers, considering both capital and operating costs. Staff’s research found there is no meaningful difference between the two paths on affordability (more details on costing can be found in the council report).
The council meeting at city hall begins at 9:30 a.m. and can be viewed online via the city’s website. Like all staff reports, council has the option to agree or disagree with the recommendations, amend them or defer the report to another meeting.
