Port Moody moves forward with stricter environmental requirements for new buildings, despite concerns from developers, councillors

The City of Port Moody has forged ahead on its new efficiency and emission requirements for new buildings.

Council initially approved developing a framework for the changes back in July, 2024 but several councillors emphasized the importance of including input from developers.

A meeting with Port Moody’s Developer Liaison Committee was held on Aug. 20, and although numerous concerns were voiced by industry stakeholders, council stuck to their timeline by a 5-2 vote.

Mayor Meghan Lahti said that while she understood their concerns, Port Moody would not be able to meet its climate targets if it delayed implementing the new rules.

“We are on the precipice of a massive housing boom in Port Moody,” Lahti said. “This isn’t a race to the bottom.”

Port Moody’s Climate Action Plan has a goal of reducing emissions by 40 percent by 2030 (from 2007), and building emissions account for 46 percent of the city’s total output.

By the start of 2025, the city will require all new developments be carbon neutral, and will start increasing efficiency requirements on all new projects, achieving the highest standards by the start of 2027.

The update is set to make Port Moody just the ninth municipality in B.C. to prohibit fossil-fuel systems in new buildings, barring the use of gas for space heating, water heating and cooking. Meanwhile, the stricter requirements around Energy Step Code (ESC) will put the city five years ahead of the province’s scheduled update to the BC Building Code in 2032.

Questions raised from the Developer Liaison Committee – whose membership includes major development firms – ranged from cost implications, BC Hydro’s energy capacity, incentives, effectiveness of the zero-carbon technologies, and design implications.

Staff provided documentation stating that implementation of the zero-carbon step code will increase construction costs by a range of 0 to 2 percent, while the highest level of the ESC will increase costs by 1 to 8 percent for single-family homes, and 1 to 6 percent for multi-family homes.

However, staff also noted that developers could save money by not having to install gas infrastructure in new buildings.

BC Hydro confirmed the carbon neutral requirements will not impact the demand on the electrical grid, stating the growth of building and unit sizes is most relevant factor. Industry subsidies are also being considered by BC Hydro, and training and other resources are available online for developers, staff said.

Another issue for developers was how architectural design could be affected by the changes, citing impacts to building appearance, and residents’ mental health and livability of units.

The requirements are performance based, and they don’t prescribe design solutions, stating that enough flexibility exists with innovative and creative solutions, staff responded.

Lastly, concerns were raised about the effectiveness of zero-carbon systems like heat pumps in cold temperatures. Staff provided reports showing the technology works in temperatures as low as minus 40 degrees, provides cooling in hot weather, better air quality, and energy efficiency.

Council was somewhat divided on support for the upcoming changes, with Couns. Diana Dilworth and Callan Morrison voting against.

Dilworth, who is well versed with the industry’s position through her employment with Homebuilders Association Vancouver, said Port Moody is being too aggressive in its approach, calling it: “the fastest timeline in the Lower Mainland.”

She recommended the city stick to the prescribed provincial deadlines, repeating developers’ concerns over the short window to adapt to the changes.

Projects in the design phase which have not achieved second reading by the end of the year will require significant redesigns, noted Dilworth, likely incurring costs and delays.

“Port Moody’s proposing a grandfathering window of less than four months,” Dilworth said. “(We) may create situations where plans have to go back to the drawing board, and additional costs will be downloaded to the cost of those new homes.”

Additionally, Dilworth asserted that some municipalities who committed to aggressive targets are now backtracking and reverting to the province’s timeline. She said there was low confidence amongst the industry in relatively new zero-carbon technologies, electrical servicing and capacity.

Morrison agreed, stating they are dealing with both a climate crisis and a housing crisis, which are often at odds with one another.

He said he is concerned whether the city will be able to deliver on its housing needs if it decides to outpace the provincial deadlines, stating there could be additional costs and delays that will affect affordability.

“I don’t know where that money’s coming from, other than being passed on to the end user,” Morrison said. “We have to give-and-take on what things we prioritize.”

Coun. Samantha Agtarap, on the other hand, said there needs to be a collective effort to reduce emissions, noting that Canada is the eighth highest energy user globally, while ranking 38th in population size.

She took issue with the framing of zero-carbon systems as “new technology,” stating that heat pumps are well tested and widely used in colder Scandinavian countries.

The concerns over BC Hydro’s capacity issues were also overblown, according to Agtarap. She said that while there are challenges in certain regions of the B.C., these are being addressed by BC Hydro’s 2023 Integrated Resource Plan.

“We’re not going to run out of energy,” she said. “We need to do everything that we can possibly do to make things more efficient on our side.”

Agtarap also said the cost of retrofitting properties would be extremely pricey, while the user costs in zero-carbon systems are much lower.

Adding to that point, Mayor Lahti said that if Port Moody were to delay implementing the new requirements, all the units currently in-stream will need to be retrofitted post-construction. “These are houses for the next 100 years,” she said.

Coun. Amy Lubik pointed out the 2024 summer was the world’s hottest summer on record, and B.C. suffered another devastating year for wildfires.

While some councillors argued in favour of following the provincial timelines for implementing stricter efficiency and energy rules, Lubik noted the provincial government is not on track to meet its own climate targets.

“I don’t think that is the way to go,” Lubik said. “The city is well placed to do this at a faster timeline, like some of our neighbors, while still supporting the building community.”