Port Moody plans to require new developments be carbon-neutral by 2025, but some on council think city is moving ‘too fast’ for developers

Not everyone on Port Moody council agrees with the speed at which the city is imposing environmental building requirements on developers.

By the start of next year, the city will force all new developments to be carbon neutral, and start incrementally increasing its energy efficiency requirements on new builds.

An impassioned Mayor Meghan Lahti said the world is in a climate emergency, and Port Moody is rapidly densifying over the next two years and needs to signal changes to the developers

“We have to have this in place. We cannot afford not to have it,” said Mayor Meghan Lahti. “I don’t want to be overly dramatic, but let’s face it, every time we get government to a place where the rubber has to hit the road, they tend to fall back on, ‘Oh, it’s going to cost too much money.”

Buildings currently account for 46 percent of Port Moody’s total emissions, and the new standards are a way of requiring developers to install zero-carbon energy systems into their projects for space heating, water heating and cooking.

The update will make Port Moody the ninth municipality in B.C. to prohibit fossil-fuel systems in new buildings, while upping its Energy Step Code (ESC) requirements will put the city five years ahead of the province’s scheduled update to the BC Building Code in 2032.

By a 5-2 vote on Tuesday, council directed staff to start developing a framework and timeline to incorporate the new requirements into its bylaws and corporate policy. 

One of the dissenting votes came from Coun. Diana Dilworth, who said Port Moody was “rushing way too fast,” claiming it was causing concern, confusion and added costs to developers.

Dilworth, who also works for Homebuilders Association Vancouver (HAVAN), said the development industry does not want municipalities to enact the highest ESC requirements as quickly as possible, but rather follow the province’s timeline.

“We’re also in a housing emergency, and the cost of Step Code . . . is affecting the affordability of construction,” she said. “These extra costs are not going to be borne by the builders, they are going to be layered on to the cost of a home.”

The second dissenting vote came from Coun. Callan Morrison, who unsuccessfully tried to add an amendment that would force a review of the changes in the future, potentially altering the city’s timeline.

The province introduced the ESC and the BC Zero Carbon Step Code (ZCSC) in 2017 and 2023, respectively, as opt-in tools for municipalities to pursue energy efficiencies and emission reductions in new buildings before provincial tweeks come to the building code in 2032.

Strengthening Port Moody’s standards has been on the books for several years.

Council adopted its Climate Ready Homes and Buildings Plan in 2022, setting a deadline to require all new and replacement heating systems be carbon neutral; it also approved phase two of its Climate Action Implementation Strategy in 2023, committing to accelerating higher efficiency requirements. 

These proposed changes were endorsed unanimously by Port Moody’s Climate Action Committee earlier in May 2024.

Lahti said Port Moody has already made commitments to the public, noting the city was the first in B.C. to ask the province to introduce the ZCSC in 2019.

“I have a feeling that people are kind of thinking that these are massive changes to what we already have in play,” Lahti said. “This is not new information.”

Allowing fossil-fuel based systems to continue in new projects would not only add to long-term emissions, but it would also require buildings to be retrofitted in the future, according to staff.

Coun. Samantha Agtarap added these retrofits can be extremely pricey, and owners of multi-family units currently lack the incentives available with other forms of housing.

“I don’t know that people really understand that,” Agtarap said. “By delaying this, we are actually locking in future costs for those homeowners.”

Staff expect to have the new ESC and ZCSC standards in place by Jan. 1, 2025, and in-stream rezoning applications that have not progressed to second reading by this date will be subject to the new rules.

The updated requirements mean that starting next year, all new buildings taller than three storeys will need to be 50 percent more efficient; and starting in 2027, all new residential developments will have to meet the ESC’s highest efficiency levels.

Staff said consultants recommended a faster timeline, but they chose to take a more gradual approach after receiving feedback from developers.

Lack of industry consultation?

Dilworth took issue with Port Moody being one of the first municipalities to adopt the highest ZCSC standards without any industry feedback.

Staff had included industry engagement sessions from Burnaby, Victoria, Richmond and the District of Central Saanich in their report – all early adopters of zero-emission standards. They noted that most local builders had participated in one of these sessions.

The report stated there is a “perceived level of readiness and support” within the industry, most developers just wanted regional consistency, and that the highest ESC requirements were harder to achieve than the highest ZCSC standards.

Staff also warned about potential delays as a result of an extended engagement period, stating that it could push back the bylaw updates as late as the second quarter of 2025.

But Dilworth disagreed there was general consensus about the ZCSC amongst developers, claiming there would be unintended consequences if Port Moody chose to ignore the industry.

She moved an amendment that the city convene its Development Liaison Committee to receive feedback.

“Implementing this in less than six months, based on summary sessions that Burnaby had, is actually quite shocking,” Dilworth said. “Extensive engagement is not looking at five municipalities . . . we’re talking different markets, we’re talking different bases.”

Couns. Kyla Knowles and Morrison agreed there needs to be more industry engagement, both adding their concerns about how higher levels of the ESC could impact affordability.

Knowles said she didn’t think a three-month delay would be an issue, adding she was uncomfortable moving forward without getting developer input.

“That’s a really bad look for me,” she said. “We ignore our business community at our peril. I certainly want to make sure that we’re not driving businesses away.”

Other councillors, however, argued the city cannot afford to delay actions on climate change, and questioned what new information would be gained through engagement.

Coun. Amy Lubik pointed out the world is experiencing the hottest summer on record, and the province is currently suffering droughts and wildfires.

She said that Port Moody should be striving to be a climate leader, and trying to influence its neighbours.

“We as a society are way behind the ball on what we’re doing on climate change,” Lubik said. “I actually wish that we were doing it faster.”

Coun. Haven Lurbiecki said climate change is already costing Port Moody taxpayers millions of dollars, noting the city is trying to recover these costs through the ‘Sue Big Oil’ class-action lawsuit.

She said the damage to society will be even greater if the city does not take immediate action, adding council will be considering the largest development in its history over the next couple years.

“This is such an obvious decision for us to make, it does feel frustrating,” Lurbiecki said. “I’m very confused about wanting to back out of what we’ve already committed to.”

Lahti and Agtarap voiced skepticism that implementing the carbon-neutral systems would add any costs to developers, or that major industry players were unaware of potential changes to the ESC and ZCSC.

However, both eventually agreed to support more consultation, and the amendment passed 5-2.