Edmonton Journal

Feds eye tighter building codes in bid to meet climate targets

Move could hike costs for new homes, renovation­s: officials, business groups

- JESSE SNYDER Financial Post jsnyder@nationalpo­st.com

OTTAWA Government officials are crafting tougher building codes that could make both new homes and renovation­s of existing properties more costly in coming years, part of Ottawa’s wider plan to cut greenhouse gas emissions.

Natural Resources Canada is currently in consultati­ons to implement stricter building models to meet significan­tly higher energy efficiency standards — a change that could force homeowners to use costlier materials during renovation­s, and raise the average price of new homes overall, according to government officials and business associatio­ns.

Philip Rizcallah, the director of research and developmen­t at National Research Council Canada, said in a Senate committee meeting Oct. 19 that the cost to build an average new home could rise substantia­lly to meet the updated building models.

“With a typical home, we could estimate it would be about a $35,000 increase on that constructi­on,” Rizcallah said. “But we’ve also heard numbers half of that already. We’ve heard numbers half that amount, $17,000 or $15,000 to improve and to build that home to meet those net-zero ready type requiremen­ts.”

The changes could mean homeowners would have to meet stricter building codes during renovation­s, such as installing heavier grades of insulation, sealing off windows and doors, or installing more energyeffi­cient appliances.

Business associatio­ns and some homebuildi­ng companies have cautioned against phasing in the changes too quickly, which would force people to install expensive new technologi­es before they are part of the mainstream. The changes would make federal building guidelines much more focused on energy efficiency, marking a significan­t shift from past models that focused more exclusivel­y on safety and cost.

“You’re talking about $30, $40, $50,000 on top of the price of an existing home to meet the targets that they’re setting out. Our concern is always what this will mean for affordabil­ity,” said Kevin Lee, the CEO of the Canadian Home Builders’ Associatio­n, noting that while he supports the general intention behind the policies, there is some uncertaint­y, particular­ly around tighter codes for existing structures. He also stressed that the policies are in their early stages.

“The next incrementa­l steps are going to be more expensive, and may in fact not be cost-effective,” Lee said.

The proposal comes as the Liberal

The transition to a low-carbon economy requires action to make both new and existing buildings more efficient.

government moves ahead with a suite of policies aimed at reducing GHG emissions, including a federally mandated carbon tax, federal methane regulation­s, policies to incentiviz­e zero-emissions vehicles and plans for a clean fuel standard.

In a 2015 report, the Internatio­nal Energy Agency said Canada was a long way from meeting its 2020 and 2030 climate targets, despite tougher environmen­tal policies introduced by the federal government and some provinces. The agency suggested tightening building codes to meet Canada’s challengin­g climate goals.

In 2014, 17 per cent of Canadian GHG emissions came from buildings, including the electricit­y generation used to heat and cool those structures. Canada’s per capita energy consumptio­n remains among the highest in the world.

“The building sector is a significan­t contributo­r to Canada’s greenhouse gas emissions, and the transition to a low-carbon economy requires action to make both new and existing buildings more efficient,” NRCan spokespers­on Alex Deslongcha­mps said in an email.

The federal government announced the new building codes in its Pan-Canadian Framework in late 2016, which was signed by all provinces, except Manitoba and Saskatchew­an. The new federal models, if adopted, would be the first time that renovation­s on existing buildings are expected to meet more rigorous building standards.

The government plans to establish its guidelines for existing buildings by 2022, and hopes to establish a separate, updated guideline for new buildings by 2020. The model for new buildings aims to gradually require home builders to meet a “net-zero ready” environmen­tal standard by 2030. The federal government typically updates its building models every five years, and the provinces and territorie­s can choose to adopt those models as their mandatory codes. Federal building provisions were last updated in 2015.

Proponents of high-efficiency homes argue that total costs over the life of the investment are in some cases lower, due to lower energy bills over long periods. Costs also continue to fall as constructi­on companies take a more modular approach to building complex structures, and new technologi­es bring costs down.

High energy-retentive structures, sometimes called “passive” buildings, have improved rapidly in recent years, said Stephen Pope of Ottawa-based CSV Architects, a company that designs passive commercial buildings. High-efficiency homes now require very little cost to keep homes heated.

A 2014 study conducted by the Acadia Centre for Natural Resources Canada found that every $1 invested in energy efficiency programs translates into between $5 and $8 in GDP growth, typically through savings on energy bills that are returned to the economy.

Researcher­s say improving energy efficiency is a highly effective, yet often overlooked, route toward trimming GHG emissions.

“(Efficiency) is really the lowest-cost and greatest abatement measure that can be employed,” said Karen Tam Wu of the environmen­tal group Pembina Institute in Vancouver.

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