BC Energy Step Code for Multi-Family Construction in Kelowna: What Developers Need to Know
If you are planning a multi-family project in Kelowna, the BC Energy Step Code is no longer a future consideration. It is a present reality that shapes your design, your budget, and your permitting timeline before a single shovel hits the ground.
What Is the BC Energy Step Code?
The BC Energy Step Code is a performance-based compliance pathway under the BC Building Code. Rather than prescribing exactly what materials or systems you must use, it sets measurable energy performance targets and lets builders choose how to meet them. The framework runs from Step 1 (modest improvement over the base code) to Step 5 (net-zero energy ready). The City of Kelowna has adopted Step Code requirements for new construction, and the province is mandating progressively higher steps leading to net-zero ready performance by 2032.
Current Requirements for Multi-Family Buildings in Kelowna
For Part 3 buildings — which includes most multi-family residential projects over three storeys — BC Energy Step Code targets are set using the Energy Use Intensity metric. Key compliance touchpoints include:
- An energy model completed before permit application, prepared by a qualified energy adviser
- Airtightness testing at mid-construction and final occupancy
- As-built documentation confirming that the construction matches the modelled design
- Sign-off from the energy adviser confirming compliance
How the Step Code Affects Your Construction Budget
The honest answer: it adds cost, but less than most developers expect when planned for from the start. The majority of the cost premium comes from the building envelope — higher-performance windows, additional insulation, and air barrier continuity detailing.
What Gets Expensive When You Plan Late
The Step Code premium is manageable when energy performance is integrated into design from the outset. Where costs escalate is when a project is designed to base code standards and then retrofitted to meet Step Code requirements at permit application — or worse, mid-construction. Early engagement with your energy modeller and construction manager keeps those retrofit costs out of your pro forma entirely.
Step Code and the NRRP Rebate
Developers building purpose-built rental housing in BC should be aware that the federal New Rental Rebate Program (NRRP) has energy performance components that align with Step Code compliance. Projects meeting specific performance thresholds may qualify for enhanced rebate amounts, making the Step Code investment partially recoverable through reduced GST/HST liability.
What to Discuss With Your Construction Manager Before Design
- Which step applies to your project based on current City of Kelowna bylaws and your anticipated permit date
- The energy modelling assumptions that will drive envelope and mechanical decisions
- Construction sequencing to ensure airtightness testing milestones are met without delaying your schedule
- Trade package scopes that include Step Code detailing requirements
At Team Construction, we work with energy advisers and mechanical consultants from feasibility through permit, so Step Code compliance is designed in — not bolted on. Ready to understand how the Step Code will affect your next Kelowna development? Contact our team to talk through your project before you commit to a design.