Building Policies and Incentives

The U.N. Economic Commission for Europe, Committee on Sustainable Energy approved its framework guidelines for energy efficiency standards in buildings in November 2017. It targets global transformation of buildings in the built environment by framing the design, delivery and operation of buildings as integrated, thermodynamic and environmental systems. Find out more >

The U.N. Sustainable Development Goals are a call for action by all countries to promote prosperity while protecting the planet. Goal 13: Climate Action, focuses on the development of affordable, scalable solutions to enable countries to achieve cleaner and more efficient economies.

To strengthen the global response to the threat of climate change, countries adopted the Paris Agreement at the COP21 in Paris, which went into force in November of 2016. In the agreement, all countries agreed to work to limit global temperature rise to well below 2 degrees centigrade. As of April 2018, 175 parties had ratified the Paris Agreement and 10 developing countries had submitted their first iteration of their national adaptation plans for responding to climate change.

The Pan Canadian Framework on Clean Growth and Climate Change: Canada’s Plan to Address Climate Change and Grow the Economy (2016) is a federal and provincial collective plan to grow Canada’s economy while reducing emissions and building resilience to adapt to a changing climate.

Build Smart Canada’s Buildings Strategy – A Key Driver of the Pan-Canadian Framework on Clean Growth and Climate Change. Read more

Efficiency Canada’s Policy Database allows users to view and download the provincial energy efficiency policy scorecard.

Natural Resources Canada maintains a database displaying to browse a grouping of incentives related to energy efficiency from provincial/territorial governments, major Canadian municipalities, and major electric and gas utilities.

In provinces where the Federal carbon tax backstop has come into effect, a portion of the funds collected are available through the Climate Action Incentive Fund for use on energy efficiency projects and retrofits.

The Canadian Mortgage and Housing Corporation (CMHC)’s National Housing Co-Investment Fund supports the new and revitalization construction of mixed-income, mixed-tenure, mixed-use affordable housing. Funded projects need support from another level of government to ensure a coordination of investments. PHPP is approved as an energy modeling tool.

The Alberta government is creating a $36-million rebate program for solar installation on residential and commercial buildings. Homeowners, businesses and non-profit organizations will receive rebates for rooftop solar panels that meet the Residential and Commercial Solar Program requirements, starting summer 2017. Good news for developers targeting Passive House Plus or Premium. Find out more >

From the Efficiency Canada Database:

LEED Silver is the minimum standard for all new major construction projects since 2006.

The provincial government certified 89 buildings under the BOMA BEST program, and three government-owned buildings have achieved the BOMA BEST Platinum rating.

In August of 2016 the Government of BC announced its Climate Leadership Plan, highlighting Passive House design and construction as key tool to achieving energy targets in the built environment.

Policies are being implemented to encourage development of net zero buildings, including:

• Acceleration of increased energy requirements in the BC Building Code by taking incremental steps to make buildings ready to be net zero by 2032
• Developing energy efficiency requirements for new buildings that go beyond those in the BC Building Code, called Stretch Codes, that interested local governments can implement in their communities
• Creating innovation opportunities and financial incentives for advanced, energy efficient buildings, including an increase in funding for design and innovation. Read more

The BC Energy Step Code is a voluntary provincial standard enacted in April 2017 that provides an incremental and consistent approach to increase energy-efficiency requirements in the BC Building Code to make Buildings net-zero energy ready by 2032.This is now part of the BCBC (BC Building Code) under Part 10 which sets out the TEUI, TEDI and most recently GHGI limits. There are different targets for different building types and climate zones. Passive House is seen as compliance with the highest step.

EfficiencyBC is a new Provincial program offering financial incentives, information and support to help households and businesses save energy and reduce greenhouse gas (GHG) emissions by switching to high-efficiency heating equipment and making building-envelope improvements. Read more

CleanBC Better Homes is BC’s online hub for homeowners and businesses to access information, rebates and support to reduce energy use and greenhouse gas emissions in new and existing homes and buildings. Users can use the Rebate Search Tool to find rebates administered by BC Hydro, FortisBC and BC Housing.

CleanBC’s Better Buildings provides funding and capital incentives to encourage energy-efficient design, construction and renovation of commercial buildings.

Better Buildings BC is a provincial incentive program and juried competition designed to support, promote and celebrate the design and construction of net-zero energy-ready buildings.

From the Efficiency Canada Database:

The Clean Energy Act established an objective to “to take demand-side measures and to conserve energy, including the objective of the authority reducing its expected increase in demand for electricity by the year 2020 by at least 66%” (Part 1, Section 2(b)). This target is mandated only for BC Hydro (‘the authority’), though FortisBC voluntarily adopted the target thereafter, and subsequently escalated its long-term DSM target to 80% of load growth offsetting. While there are no legislated targets for natural gas efficiency savings, Section 44.1(2)(f) of the Utilities Commission Act requires utilities, other than BC Hydro, to submit resource plans which provide an explanation of why demand for energy is not planned to be replaced with demand-side measures. This has contributed to a significant increase in natural gas savings targets.

• All BC public sector organizations have a legislated requirement to be carbon neutral. This requirement includes all health authorities, K-12 schools, universities and colleges, Crown corporations, core ministries and independent offices.

Each year, organizations must measure, report, and reduce their greenhouse gas emissions. All greenhouse gases emitted must be offset. A select number of organizations undergo a verification process to ensure their application of the quantification methodologies, monitoring equipment measurements and calculations are accurate.

The Climate Action Secretariat, Ministry of Environment and Climate Change Strategy, facilitates organizations’ actions with an online greenhouse gas inventory and reporting tool, and with guidance materials on greenhouse gas quantification and emission reduction strategies.

An update on progress was published in 2017.

• BC committed to reducing public sector building emissions by 50% by 2030.

Since 2010, new public sector buildings have been built to LEED Gold certification or equivalent. The BC Energy Step Code outlines a pathway to net-zero energy ready buildings, and the public sector is investigating how best to implement the Step Code to public sector buildings, including hospitals and clinics, schools, campuses and office buildings.

Carbon neutral government initiatives promote behavioural changes that conserve energy such as use of video conferencing rather than travel and promoting bike to work week.

Public sector buildings also undergo retrofits regularly and achieve energy efficiency improvements by taking advantage of latest proven technologies. The public sector is encouraged to considering using wood in new building construction, in part to reduce embodied carbon in buildings.

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See municipal policies and incentives in BC

From the Efficiency Canada Database:

The Efficiency Manitoba Act of 2017 legislates long term energy efficiency savings targets over 15 years (2017-2032).

The targets are:

• Minimum net annual electricity savings at least equal to 1.5% of electricity consumption in the immediately preceding year
• Minimum net annual natural gas savings equal to 0.75% of natural gas consumption in the immediately preceding year
• Any shortfalls and surpluses in carry forward over the 15 year period to reach cumulative annual percentage savings equal to 22.5% for electricity and 11.25% for natural gas.

Manitoba has an Affordable Energy Fund. Under the Energy Savings Act, Manitoba Hydro would contribute a proportion of its gross revenue from electricity exports to this fund, and the fund would ensure people with low-income, seniors, and people living in rural and northern Manitoba have access to programs. This fund is continued under the Efficiency Manitoba Act.

There is also an Indigenous Energy Efficiency Program.

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From the Efficiency Canada Database:

Between 2005 and 2014, energy efficiency programming was administered by Efficiency New Brunswick, a not-for-profit crown corporation funded through the government budget. In 2014, the government introduced legislation to dissolve Efficiency NB and transfer responsibility for efficiency programming to the provincial utility.

NB Power administers the Low Income Energy Efficiency program on behalf of the Department of Social Development. The program is fully funded by the provincial government in the order of $2m annually. It focuses on weatherization and some elements of heating system upgrades and direct install components.

NB Power also administers a Community Outreach Program, that works with non-profit and community organizations to help clients improve energy efficiency.

Under the Green Building Policy larger buildings (floor area greater than 2,000 m²) shall achieve a minimum LEED silver certification, or Green Globes standard. Buildings with floor area between 1,000-2,000 m² shall meet a prescribe programs designed to reduce energy savings by at least 20-30% beyond the 1997 Model National Energy Code for Buildings, and meet the intent of the LEED Canada-NC requirements. Smaller buildings (floor area between 500-999 m²) have prescriptive requirements based on “Advanced Building Core Performance” Guide requirements.

The province’s most recent Climate Change Action Plan lists a number of actions for provincial buildings, including strengthening the Green Building Policy to include higher performance standards for energy efficiency.

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From the Efficiency Canada Database:

The provincial government is launching more government administered efficiency programs with funds from the Government of Canada’s Low-Carbon Economy Leadership Fund.

Take CHARGE program energy savings targets are approved by and reported to the Board of Commissioners of Public Utilities. There are no targets in policy or regulation.

The Newfoundland and Labrador Housing Corporation administers a Home Energy Savings Program, targeting homeowners with incomes below $32,500/per year.

The 2011 Building Better Buildings Policy commits to ensuring that government-funded buildings that were built, or received substantial renovations, exceed the 1997 Model National Energy Code for Buildings by 25%, strive to achieve a LEED Silver standard, and complete a life-cycle project analysis.

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From the Efficiency Canada Database:

EfficiencyOne’s 2020-2022 DSM plan includes “low income performance indicators”, which estimates low-income participants and resulting budgets and savings figures for a variety of programs. Participation is estimated using geographic census information, amongst other methods.

Programs include the HomeWarming program administered by Clean Foundation and Efficiency Nova Scotia; the Affordable Multi-Family Housing, the Efficient Product Installation, and First Nations programs administered by Efficiency Nova Scotia.

The 2014 Electricity Efficiency and Conservation Plan committed to retrofit all low-income homes over 10 years.

As of November 2008, all building construction financed by the government of Nova Scotia will be designed and constructed to a minimum LEED Silver standard, an energy efficiency improvement 35% above the 1997 Model National Building Code. Buildings must also provide a post-occupancy comparison of target efficiencies.

Efficiency Nova Scotia’s Onsite Energy Management program includes benchmarking participatory organization’s energy use against similar organizations – Housing Nova Scotia, Nova Scotia Health Authority and TIR Buildings.

The NS Department of Transportation and Infrastructure Renewal is using Energy Star Portfolio Manager to benchmark nearly 80 department owned buildings as part of the Energy Conservation Program.1 This benchmarking initiative is associated with a building recommissioning project.

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In July 2016, the OBC SB-12 supplement (Part 9 low rise residential buildings) was updated to accept the Passive House Planning Package (PHPP) software as a tool to demonstrate compliance. The latest version of SB-12 can be downloaded here >

The City of Toronto passed its Zero Emissions Buildings Framework in early 2017. This report presents the results of a two-part study designed to identify an effective means of updating the Toronto Green Standard greenhouse gas and energy efficiency measures that is both feasible for the construction industry and that addresses the city’s climate, energy and resilience goals. Additional resources are available to support the Toronto Green Standard.

The City’s new 10-year Housing Plan is now approved. You can read the staff report and find the complementary materials on the City’s website.

Through the Home Energy Loan Program (HELP), Toronto homeowners can get a low-interest loan of up to $75,000 to cover the cost of home energy improvements. Read more

From the Efficiency Canada Database:

The Ontario government’s Environment Plan, released in November 2018, includes several commitments related to integrating climate change into government decision making. The plan commits to developing a Climate Change Governance Framework, which will include reporting on climate change measures, procurement changes, continued execution of a high-performance building strategy, investments in energy cost savings such as meeting LEED standards, optimizing office space use, advanced automation and integration to measure, monitor, and control operations and maintenance at the lowest cost, and developing tools to help decision makers better understand climate impacts.

Ontario’s five-year climate change action plan 2016-2020 included a cross government target to reduce greenhouse gas emissions 50% below 2006 levels by 2030, and to develop a strategy to move towards carbon neutrality. The Ontario government’s Environment Plan, released in November 2018, does not re-iterate this targets. It discusses developing a Climate Change Governance Framework, which will include reporting on climate change measures, procurement changes, continued execution of a high-performance building strategy, investments in energy cost savings such as meeting LEED standards, and optimizing office space use.

The Broader Public Service has been required to report on building energy use annually since 2012, originally under O. Reg 397/11 under the Green Energy Act and re-enacted after the Green Energy Repeal Act, 2018 passed.

There is a high-performance building automation strategy for government buildings, noted in the 2018 Environment Plan.

The Environment Plan calls for future renovations of government buildings maximize energy cost savings. For instance, Ontario is building new correctional facilities to meet LEED standards.

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From the Efficiency Canada Database:

The 2016/17 provincial energy strategy calls for ramping up to annual electricity savings of 2% per year by 2020, or just under 30 GWh/year under a static load assumption. Savings would start at 0.4% of load in 2017 and ramp up. The strategy also calls for ramping up to annual energy savings of 2% per year for non-electric fuels by 2020.

Annual electricity savings targets in the PEI Energy Corporation 2018-2021 Demand Side Management Resource Plan were approved by the Island Regulatory and Appeals Commission.

Efficiency PEI dedicated a significant share of its budget to programs targeting low-income populations, through program such as the Home Energy Low-Income Program (HELP), Home Insulation Rebates, Energy Efficiency Equipment Rebates, and the Home Comfort Program.

The 2018 Climate Action plans commits to implementing a greening government program and developing a GHG emissions inventory for government. It also commits to installing 20 additional biomass heating systems in public buildings.

The PEI Climate Change Secretariat has endorsed utilizing NECB 2017 for all new government owned buildings.

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From the Efficiency Canada Database:

A government energy efficiency agency has existed in Quêbec since the 1970s, originally named the “Bureau des économies d’énergie” (1977) and remamed “l’agence de l’efficacité énergetique” in 1996. In 2008, a “quote part” fuel charge on all fuel distributors was introduced to fund this agency. In 2011, the office was renamed the “Bureau de l’efficacité et l’innovation énergétiques” (BEIE) (Energy Efficiency and Innovation Office) and placed within the Ministry of Natural Resources. In December 2016, the BEIE was closed and a new state corporation with an executive director and board of directors was created, called Transition Énergétique Québec (TEQ). This was originally envisioned in the 2030 energy plan. TEQ is funded through the “quote part”, cap and trade revenues dispersed from the Green Fund, and an Energy Transition Fund supported by petroleum royalties. TEQ has developed a five year master plan on energy transition, innovation, and energy efficiency. In June 2019, the government announced that TEQ would be brought under the Ministry of Energy and Natural Resources, as part of a restructuring of the governance of the provincial Green Fund. The “Master Plan” will be maintained, but adopted to consider new goals on electrification and climate change.

Bill 44 tabled in October 2019 proposes to change the name of the Green Fund to the “Electrification and Climate Change Fund”, abolishing the Green Fund management council and transferring responsibilities to the Minister of the Environment and the fight against climate change, abolishing TEQ and placing the “master plan” under the responsibility of the Ministry of Energy and Natural Resources.

The government directive 537-2017 directs Transition énergétique Québec to create a 2018-2023 master plan that improves energy efficiency at least 1% per year, on average. The Province’s 2030 Energy Plan calls for a 2030 objective exists to improve energy efficiency 15% from a 2013 base year.

The government directive 537-2017 directs Transition énergétique Québec to reduce by at least 5% the total consumption of petroleum products from a 2013 base year.

The TEQ 2018-2023 Master Plan estimates an improvement in energy efficiency by about 1.2% per year, on average. This is an economy-wide target, which includes indirect changes from technological improvements and structural changes as well as the impact of initiatives outside of Québec. TEQ states that the initiatives within the plan are expected to improve efficiency by 0.6% per year (9.9 petajoules), which is higher than the 0.4% or 7.3 petajoules achieved from 2012 to 2017.

The plan aims to reduce petroleum use by 12% in 2023 compared to 2013 levels. This is more than the government’s directive to reduce consumption by 5% by 2023 as a first step towards the 2030 Energy Plan’s target of a 40% reduction in 2030.

The 2018-2023 Master Plan is a major policy tool of the 2030 Energy Plan and the targets also contribute to the 2013-2020 action plan on climate change.

Econologis is a program administered by TEQ in partnership with Hydro-Québec.

Hydro-Québec offers “Rénovation énergétique, offree aux ménages à faibles revenue”. Hydro-Québec signs agreements with social and community organizations, such as social and co-op housing providers and municipalities.

Énergir offers supplementary financial assistance to low-income households, under program title “Soutine aux ménages à faible revenue”.

The TEQ Master Plan calls for the development of energy reduction targets for different government departments, and the adoption of a “framework law” for government lead by example initiatives by 2020/21. The TEQ Master Plan calls for embedding energy transition experts in government departments, funding best practice examples, and enabling municipalities

Specific targets for energy consumption (GJ/m2), for 2022-23 and 2029-30 exist for major public sector real estate holdings.

The 2030 Energy Policy calls for applying energy efficiency measures on at least 5% of the total surface of public buildings, each year, from 2016-2030, reducing building energy consumption by 15% in public buildings from a 2012 base year.

The TEQ Master Plan calls for mandatory recommissioning of public building mechanical systems and public disclosure of public building energy data.

The TEQ Master Plan calls for converting all building fossil fuel use for heat to renewable energy. No public buildings should be principally heated by fuel oil by 2023, except in rare circumstances.

The 2013-2020 Action Plan on climate change calls for obtaining an energy performance in new buildings 20% higher than the 2011 National Energy Code for Buildings, and also set objectives related to eliminating fuel oil use in public buildings.[2]

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The City of Saskatoon Low Emissions Community Plan highlights Passive House and suggests new municipal buildings should be built to the standard and existing municipal buildings should have deep energy retrofits. PACE financing for commercial and residential energy efficiency retrofits is mentioned, which would allow building owners to finance energy efficient improvements on property taxes.

From the Efficiency Canada Database:

SaskPower has a net incremental target of 14MW peak demand reduction and 87 GWh by 2030 through energy efficiency and conservation programs, as set out in the April 2019 Climate Resilience Saskatchewan report. SaskPower administered a Home Assistance Pilot Program with Saskatchewan Housing Corporation to deliver energy kits to low income households between 2015 and 2018.

SaskEnergy operates the Tune-Up Assistance Program which delivers a home heating ‘tune-up’ to homeowners free of charge. Though the program is open to all homeowners, SaskEnergy gives preferences to households with a combined in come of les than $68,000.

The 2017 Climate Change Strategy states that the government will require new and renovated government buildings to exceed the 2015 National Energy Code for Buildings by 10%. The strategy also calls for increasing the number of government buildings with a sustainability certification. By 2016-2017 47 government buildings received BOMA BEST certification.

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