Tool glossary

Local governments in BC have a range of regulatory tools they can use to support climate action. While many of these tools may already be familiar, there are often opportunities to use them in new or more effective ways.

To know what’s possible—and how far local governments can go—it helps to understand the legal foundation of municipal authority in BC. Local governments are created by provincial statues like the Community Charter and the Local Government Act. These statutes set out the powers that local governments can use. If a decision or bylaw goes beyond those powers, it can be struck down by the courts.

Municipalities also have what’s called “natural person powers” under Section 8(1) of the Community Charter. This means they can take actions like entering contracts or owning property, similar to what a person or business can do. Regional districts, however, do not have natural person powers.

Below is a glossary of common regulatory tools, along with brief definitions and examples. For a deeper legal dive, refer to the “Read the Full Legal Memo” links included throughout this site.

Amenity Cost Charge (ACC) Bylaws

Fees collected by local governments to help pay for community amenities like parks, cultural spaces, or recreational facilities.

Under the Local Government Act, local governments can charge Amenity Cost Charges (ACCs) when approving a subdivision or issuing a building permit. These charges help fund public amenities—such as heritage sites, community centres, or environmental projects—so long as they’re owned or operated by the local government or its partner. The fees must be paid at the time of subdivision or permit approval.

Bylaw

A local law passed by a municipal council or regional district board that regulates activities, land use, or behaviours within its jurisdiction.

Bylaws are local rules created by a municipal council or regional district board to manage activities, land use, and behaviours within their communities. They help local governments respond to community needs and priorities—like setting rules for building design, parking, business operations, or noise levels.

In B.C., local governments can create bylaws under the authority of provincial laws like the Community Charter and the Local Government Act. These provincial statutes outline what municipalities and regional districts are allowed to regulate.

While bylaws carry the force of law within a local government’s jurisdiction, they must stay within the powers granted by the Province. If a bylaw goes beyond those limits, it can be challenged or struck down in court.

Local governments have several ways to enforce bylaws, ranging from education and warning letters to fines, tickets, or court orders, depending on the issue and severity.

Bylaws Under the Community Charter

The Community Charter gives municipalities the authority to regulate specific local matters by bylaw.

Part 2 of the Community Charter outlines the powers municipalities have to pass bylaws in defined areas, following a “spheres of jurisdiction” model. This means local governments can regulate, require, or prohibit certain activities—such as animal control or public health—within specific policy areas, or “spheres.”

Some of these areas are classified as spheres of concurrent authority under Section 9 of the Charter. This includes:

  • Section 8(3)(i) – public health
  • Section 8(3)(j) – protection of the natural environment

In these cases, municipalities must receive approval from the relevant provincial minister before adopting a bylaw—even if the bylaw also addresses issues in non-concurrent areas.

Bylaws Under the Local Government Act

This provincial law gives municipalities and regional districts specific powers to manage land use, development, and local services.

Unlike the Community Charter, which follows a “spheres of jurisdiction” model, the Local Government Act (LGA) assigns specific powers to local governments. It specifies which sections apply to municipalities and which apply to regional districts.

Development Permit Areas

A planning tool that lets local governments guide how new development supports certain purposes, including energy efficiency and climate goals.

Under the Local Government Act, local governments can designate areas in their Official Community Plan (OCP) as Development Permit Areas (DPAs). Within a DPA, landowners must apply for a permit before starting construction or making major changes to buildings or land.

DPAs aimed at reducing greenhouse gas emissions or promoting energy conservation can include requirements for landscaping, building siting, exterior design, or energy systems like heat pumps or solar panels.

DPAs can apply to a single parcel or across an entire municipality, depending on local goals and planning context.

Franchise Agreement Bylaws

A type of bylaw that allows a municipality to grant a utility company exclusive rights to operate services within its boundaries.

Under Section 22 of the Community Charter, municipalities can enter into franchise agreements with utility providers—giving them exclusive rights to deliver services like water, energy, or transit, and they can be Iin place for up to 21 years. In return, the municipality can charge the utility a franchise fee. These agreements must be approved by local voters.

That said, franchise agreements are no longer common. FortisBC has taken the position that they’re no longer necessary, and no local governments have challenged this. BC Hydro is exempt from franchise agreements under the Hydro and Power Authority Act.

Local Government-Owned Land

Land owned by local governments can be a powerful tool for advancing public priorities, including affordable housing and sustainable development.

Local governments can manage their land in several ways, including:

  • Keeping full ownership and granting development rights to others
  • Leasing the land (allowing exclusive use while retaining ownership)
  • Licensing it for specific uses (without granting exclusive control)

They can also include conditions, such as covenants or options to repurchase, to maintain control when transferring ownership. In some cases, a reverter clause allows land to return to the government if certain conditions aren’t met. In the case of highways, such as roads or sidewalks, local governments can only grant a licence to use the land and not a lease.

Local Service Area

A way for municipalities to fund specific local services—like infrastructure or beautification—through taxes paid by the property owners who benefit.

Under Section 210 of the Community Charter, municipalities can create Local Service Areas to provide services that benefit a defined area, such as street upgrades or business improvements. To create a local service, the municipality must adopt a bylaw that outlines the service, defines the boundaries of the service area, and specifies how costs will be recovered, including the local service tax.

The process can be initiated by property owners, council, or by voter approval. If council starts the process, affected owners are notified and given the opportunity to petition against it.

If the municipality uses the Local Service Area for energy efficiency upgrades, the municipality could pay for the energy upgrade as “assistance” to owners using borrowed monies or loans from reserves and spreading the repayments by the lot owners over 10 or 15 years. The municipality could collect these repayments as parcel taxes at the same time as utility charges for garbage, water, etc. Municipalities would need to use a grant or loan from the Federation of Canadian Municipalities (FCM) or the Province to cover the costs of the energy efficiency upgrades. The parcel taxes could be collected in the same manner as property taxes in the event of default by a taxpayer.

Nuisance Bylaws – Section 8 and 64 of the Community Charter

These bylaws allow local governments to prevent or reduce harmful emissions and other public nuisances.

Municipal councils can use nuisance bylaws to address activities that create health or environmental concerns—like smoke, dust, fumes, or gas emissions. This authority comes from Sections 8 and 64 of the Community Charter.

Regional districts have similar powers under Section 325 of the Local Government Act, allowing them to require property owners to take steps that reduce pollution and prevent contamination.

Phased Development Agreement (PDA) Bylaws – Section 516

Long-term agreements that support complex development projects by locking in zoning terms and outlining community contributions.

A PDA is a formal agreement between a local government and a developer, created through a bylaw, to guide large or multi-phase projects over time. The agreement guarantees that the zoning rules in place when the PDA is signed won’t change during the project’s timeline, offering certainty to both parties.

In return, the developer agrees to provide amenities, services, or other benefits to the community. PDAs can last up to 10 years, or 20 with additional approval. Public hearings are required before a PDA is adopted or significantly amended. The terms of a PDA must be mutually agreed upon, as local governments cannot unilaterally impose conditions.

Restrictions on Local Government Authority in Relation to Buildings

Local governments can’t set technical building requirements—but they still play an important role in shaping how buildings are constructed and used.

Under Section 5 of the Building Act, only the Province of B.C. can set technical building standards, like materials, construction methods, or energy performance. Local governments are not allowed to introduce their own technical requirements in these areas.

However, they can set administrative rules (like requiring inspections) and regulate things outside the Building Act or the provincial building regulations—such as electric vehicle (EV) charging infrastructure. The Building Act General Regulation also identifies some “unrestricted matters” that local governments may regulate with some restrictions.

Section 219 Covenants

A legal agreement registered on a property title that allows local governments to secure commitments from landowners.

Section 219 covenants, under the Land Title Act, are a way for local governments to enforce a landowner’s promise to do (or not do) certain things on their property—such as protecting a natural area, limiting certain uses, or ensuring specific construction standards. These covenants don’t need to benefit another property and can apply to any lot, though they’re often used in larger or more complex developments due to the administrative work involved.

A local government may consider a landowner’s offer for a covenant alongside rezonings, development permits, or subdivision approvals. Covenants are legally enforceable and may include financial penalties or specific legal remedies if breached.

Transportation Demand Management (TDM) bylaws

Bylaws that support active and low-carbon transportation options in new developments.

As of 2024, local governments can enact a bylaw under the Local Government Act to require developers to include Transportation Demand Management (TDM) features, like EV charging stations, secure bike parking, and end-of-trip facilities, within new buildings.

Local governments can also set design standards and give developers the option to pay cash in lieu. If they collect these payments, they must report annually on how the funds are used. Unlike some other bylaws, no financial analysis or public consultation is required before adopting a TDM bylaw.

Zoning Bylaws

The core tool local governments use to guide how land is used, what can be built, and where.

Under Section 479 of the Local Government Act, zoning bylaws allow municipalities and regional districts to regulate land use, building size and height, site layout, and more. They can also prohibit certain uses in specific zones.

Zoning bylaws can include amenity zoning under section 482(1), which lets developers increase density in exchange for providing public amenities such as park space or renewable energy projects. These amenities must be clearly defined in the bylaw. However, they can’t duplicate items already included in an Amenity Cost Charge (ACC) bylaw under section 570.7(1)(b).

Bonus density is another tool that offers added development potential in exchange for negotiated community benefits, often secured through a legal agreement called a Section 219 covenant.

Glossary Entry

Tool glossary