Standards & Design | Step Code

BC Energy Step Code for Multiplex: Levels 1-5 Explained

The Step Code is not a single standard — it is a ladder. Each step requires measurably better energy performance, tighter envelopes, and more sophisticated mechanical systems. Understanding the ladder helps you decide how high to climb.

Infographic showing BC Energy Step Code levels 1-5 as a visual staircase with cost premiums and airtightness targets

The Five Steps

Step 1 Enhanced Compliance Cost premium: 0-2%

Better than base code, but still largely conventional construction with improved air barrier detailing.

Energy Target

~10-15% better than base code

Airtightness

3.0 ACH50 or better

Typical Status

Standard practice for most builders since 2023

Step 2 Efficient Cost premium: 2-5%

Meaningful envelope improvement, better windows, improved insulation continuity. The current BC minimum for most Part 9 buildings.

Energy Target

~20-30% better than base code

Airtightness

2.5 ACH50 or better

Typical Status

Provincial minimum since late 2024. Most municipalities already here or higher.

Step 3 High Performance Cost premium: 5-10%

Significant design attention to thermal bridging, window performance, and mechanical ventilation with heat recovery.

Energy Target

~40-50% better than base code

Airtightness

1.5 ACH50 or better

Typical Status

Vancouver and several municipalities require this or will by 2027.

Step 4 Near Net-Zero Cost premium: 10-18%

Approaching Passive House performance. Triple-pane windows, continuous exterior insulation, HRV/ERV standard.

Energy Target

~60-70% better than base code

Airtightness

1.0 ACH50 or better

Typical Status

Leading-edge builders and projects seeking CMHC green premium discounts.

Step 5 Net-Zero Ready Cost premium: 15-25%

Building envelope is net-zero capable. With on-site renewables (solar PV), the building can achieve net-zero energy.

Energy Target

Net-zero energy ready

Airtightness

0.6 ACH50 or better (Passive House territory)

Typical Status

Demonstration projects and Passive House certified buildings. BC target for all new construction by 2032.

What Changes at Each Step

Insulation

Steps 1-2: Standard cavity insulation, some thermal bridge detailing
Step 3: Continuous exterior insulation becomes practical necessity
Steps 4-5: High-R assemblies (R-30+ walls), triple-pane windows, attention to every thermal bridge

Windows

Steps 1-2: Standard double-pane, low-E
Step 3: High-performance double-pane or triple-pane on north-facing
Steps 4-5: Triple-pane standard, careful window-to-wall ratio management

Airtightness

Step 1: 3.0 ACH50 — achievable with standard construction and air barrier tape
Step 3: 1.5 ACH50 — requires detailed air barrier strategy and mid-construction blower door test
Step 5: 0.6 ACH50 — Passive House territory. Every penetration must be sealed and tested

Mechanical

Steps 1-2: Heat pump recommended but gas still permitted in some jurisdictions
Step 3: Heat pump effectively required. HRV/ERV strongly recommended
Steps 4-5: High-efficiency heat pump + dedicated HRV/ERV per unit. All-electric standard

Where the Province Is Heading

2023-24

Step 2-3 minimum — most Metro Vancouver municipalities. Vancouver at Step 3.

2026-27

Step 3 provincial minimum — all BC municipalities required to be at Step 3 or higher.

2028

Step 4 target — leading municipalities move to Step 4. Provincial floor rises.

2032

Step 5 / Net-zero ready — all new construction in BC to be net-zero energy ready.

Envelope Specifications by Step Level

The building envelope is where Step Code compliance is won or lost. Here is what each component looks like at each level — and what the cost delta means for your budget.

Walls (effective R-value)

+$3-$8/sq ft wall area from Step 2 to Step 5

Step 2

R-22 nominal (2x6 + batt)

Step 3

R-24 effective (2x6 + 1" exterior foam)

Step 4

R-30 effective (2x6 + 2" exterior mineral wool)

Step 5

R-40+ effective (double stud or 3"+ exterior CI)

Roof / ceiling

+$1.50-$4/sq ft ceiling area from Step 2 to Step 5

Step 2

R-40 attic blown cellulose

Step 3

R-50 attic blown cellulose

Step 4

R-60 attic + improved air sealing

Step 5

R-70+ with uninterrupted thermal envelope

Slab / foundation

+$2-$5/sq ft slab area from Step 2 to Step 5

Step 2

R-10 underslab XPS (2")

Step 3

R-14 underslab XPS (2.5") + edge insulation

Step 4

R-20 underslab EPS/XPS (4") + thermal break at footing

Step 5

R-24+ underslab + continuous sub-slab + frost wall insulation

Windows

+$80-$200/sq ft window area from Step 2 to Step 5. Windows are typically the single largest envelope cost delta.

Step 2

Double-pane, low-E, argon (U-1.6)

Step 3

Double-pane high-performance (U-1.4) or triple-pane (U-1.2)

Step 4

Triple-pane, low-E2, argon/krypton (U-0.9 to U-1.0)

Step 5

Triple-pane, Passive House certified (U-0.8 or better)

Air barrier system

+$1-$3/sq ft envelope area from Step 2 to Step 5. Labour-intensive but materials are inexpensive.

Step 2

Poly vapour barrier + acoustic sealant (2.5 ACH50)

Step 3

Taped sheathing or liquid-applied WRB + blower-door verified (1.5 ACH50)

Step 4

Continuous exterior air barrier membrane + all penetrations sealed (1.0 ACH50)

Step 5

Passive House-grade airtightness: taped sheathing + service cavity (0.6 ACH50)

How the Premium Scales with Building Size

The percentage premium stays roughly the same across building sizes, but the per-unit cost drops as you add more doors. Larger multiplexes spread fixed envelope costs more efficiently.

4-plex 3,600 sq ft Base (Step 2): $1,080,000

Step 3 Premium

+$54,000 to $108,000 (5-10%)

Step 4 Premium

+$108,000 to $194,000 (10-18%)

Step 5 Premium

+$162,000 to $270,000 (15-25%)

Smallest form factor has the highest per-unit premium because fixed envelope costs are spread across fewer doors.

6-plex 5,400 sq ft Base (Step 2): $1,620,000

Step 3 Premium

+$81,000 to $162,000 (5-10%)

Step 4 Premium

+$162,000 to $292,000 (10-18%)

Step 5 Premium

+$243,000 to $405,000 (15-25%)

The sweet spot for green multiplex. Enough units to spread costs, small enough for Part 9 simplicity.

8-plex (rental) 6,400 sq ft Base (Step 2): $1,920,000

Step 3 Premium

+$96,000 to $192,000 (5-10%)

Step 4 Premium

+$192,000 to $346,000 (10-18%)

Step 5 Premium

+$288,000 to $480,000 (15-25%)

Only available on the secured rental path. CMHC MLI Select green discount can offset 40-60% of the Step 4 premium over the mortgage term.

✓Step 3 is the current practical floor — if your city has not adopted it yet, it will within 1-2 years.
✓Step 4 is where the financing incentives start — CMHC and BC Hydro rewards kick in meaningfully at Step 4.
✓Airtightness is the make-or-break metric — a building can have great insulation but fail Step Code if the air barrier leaks.
✓Engage an energy advisor at the design stage — not after drawings are done.

Best For

✓ All new multiplex construction in BC (Step Code is mandatory)
✓ Developers seeking CMHC green financing advantages at Step 4+
✓ Long-hold rental projects where operating savings compound over decades

Usually Fails When

✕ The project timeline cannot accommodate energy modeling (add 2-4 weeks to design phase)
✕ The builder has no experience with airtightness detailing (highest risk factor for Step Code compliance)
✕ Cost estimates are based on old data — premiums have dropped 30-50% since 2020

What To Verify Before Spending Money

→ Your municipality's current Step Code level and when the next ratchet is planned
→ Your energy advisor's estimate of incremental cost per step for your specific design and form factor
→ The builder's track record with blower door test results on recent projects

Frequently Asked Questions

What is BC Energy Step Code? +

A provincial framework that sets tiered energy performance targets for new buildings. Each step is more stringent than the last, from Step 1 (slightly better than base code) to Step 5 (net-zero energy ready). It applies to all new construction in BC, including Part 9 residential buildings like multiplexes.

Which Step Code level does my city require? +

Varies by municipality. Vancouver requires Step 3 for Part 9 buildings since 2023. Many Metro Vancouver cities are at Step 2-3. The province is on a path to Step 3 minimum by 2026, Step 4 by 2028, and Step 5 by 2032. Check your specific city on our By City page.

What is the difference between Step Code and Zero Carbon Step Code? +

Energy Step Code targets energy efficiency (how much energy the building uses). Zero Carbon Step Code targets greenhouse gas emissions (what fuel the building uses). Together they push toward all-electric, high-performance buildings. Most municipalities currently focus on the Energy Step Code.

Do I need an energy modeler? +

Yes, for Step 2 and above. An accredited energy advisor must model the proposed building, demonstrate compliance with the target step, and conduct a blower door test after construction to verify airtightness. Budget $3,000-$8,000 for modeling and testing on a typical multiplex.

What happens if I fail the blower door test? +

You do not receive your final occupancy permit until you pass. This is why airtightness must be designed and detailed — not hoped for. Common failure points: electrical panel penetrations, window-to-wall junctions, plumbing penetrations. An experienced builder will detail these connections before framing.