On June 28, 2023, the government of British Columbia introduced amendments to the Demand-Side Measures Regulation (B.C. Reg. 326/2008) under the Utilities Commission Act. These changes are aimed at improving the energy efficiency programs and support the province’s transition to sustainable energy practices.

The amendments include several new definitions to clarify terms within the regulation. Notable additions encompass the “annual percentage change,” which refers to the yearly change in the All-items Consumer Price Index for British Columbia, reflecting economic trends. Furthermore, the definitions of “Class A” and “Class B” demand-side measures are established, with Class A encompassing various initiatives like energy efficiency training and community engagement programs. Class B measures focus on promoting the installation of gas-fired heating systems, with specific exclusions to ensure compliance with efficiency standards. Additionally, a system categorizing locations into climate zones based on heating degree days has been implemented to determine the specific energy efficiency needs of different areas in the province.

The regulation places a strong emphasis on energy efficiency by defining measures aimed at reducing energy consumption in buildings, particularly those owned by Indigenous governing bodies or located on reserve land. It highlights programs intended to improve energy efficiency in public buildings, thus enhancing community access to sustainable energy solutions.

Stricter cost-effectiveness criteria for Class B demand-side measures have also been introduced. The Commission is required to apply a utility cost test to ensure that the benefits of these measures outweigh the costs, with a target minimum benefit-to-cost ratio of 50. This aligns with the broader objective of ensuring that energy programs are financially viable and effective in reducing consumption.

In addition, the regulation defines advanced heating systems, including integrated dual-energy space heating systems and integrated hybrid gas-fired heat pump systems. These technologies combine electric and gas-fired systems, promoting both flexibility and efficiency in residential and commercial heating.

The amendments also expand the definition of “low-income household,” broadening eligibility criteria to support more households in accessing energy efficiency programs. This change is vital for ensuring that vulnerable communities can benefit from government initiatives aimed at reducing energy costs and consumption.

A new transition section has been included to address the application of legacy measures and expenditures. This ensures that previously approved projects and programs can continue under the old framework if they were filed before specific deadlines, thus maintaining continuity in energy programs during the transition to the updated regulations.

British Columbia (167/2023) July 4, 2023