Limits on new natural gas servicing and connections

Legal Memorandum

Read the legal version from Lidstone & Co.

To meet climate targets and reduce long-term reliance on fossil fuels, many BC municipalities are exploring strategies to limit or phase out new natural gas servicing in buildings. These approaches favour all-electric designs or on-site renewable energy systems and are motivated by concerns over future stranded gas assets, shifting regulatory landscapes, and the need for resilient infrastructure.

While the Building Act limits municipal authority over technical building systems, municipalities can still influence mechanical system choices by adopting the Zero Carbon Step Code (ZCSC), a performance-based compliance path that sets greenhouse gas intensity (GHGI) limits for new buildings. Higher steps in the ZCSC effectively require electric systems in most cases, providing a clear policy lever within provincial jurisdiction. Municipalities can further support the transition through legal and planning tools that target servicing, infrastructure, and development approvals.

Municipalities may designate Development Permit Areas (DPAs) to encourage energy conservation and GHG reduction, allowing regulation of external features like heat pumps and solar collectors. They may also negotiate section 219 covenants during development approvals that commit developers to avoid fossil fuel systems or prioritize electric heating. Additionally, local governments have the option of pursuing public franchise agreements under section 22 of the Community Charter to restrict new gas servicing, though this path is legally untested and may prompt utility opposition.

When combined with ZCSC adoption, these tools offer a layered and flexible strategy to transition new development away from natural gas while remaining within provincial jurisdiction.

Regulatory pathways

Development Permit Area Authority to limit natural gas service

Last update: Aug. 2025

Under section 488(1)(h) and (j) of the Local Government Act, local governments may designate a Development Permit Area (DPA) within an Official Community Plan to support energy conservation and the reduction of greenhouse gas (GHG) emissions.

How it works

  • Within an energy conservation or GHG reduction DPA, section 491(9) of the Local Government Act permits local governments to establish requirements related to:
    • Landscaping;
    • Siting of buildings and other structures;
    • Form and exterior design of buildings and structures;
    • Specific features in the development; and
    • Machinery, equipment, and systems external to buildings and other structures.
  • While section 5 of the Building Act significantly constrains the ability for local governments to regulate buildings – a local government cannot impose its own building standards for any building activities subject to the Building Act and its accompanying regulations, including the BC Building Code – it also identifies “unrestricted matters” that local governments may regulate within DPAs designated for energy conservation or GHG reduction.
  • The Building Act General Regulation confirms that the form and exterior design of buildings and external systems or equipment are considered unrestricted matters in these DPAs. This allows local governments to set guidelines for exterior components such as solar panels, heat pumps, water cisterns, and other energy-efficient systems—even if they connect to a building’s internal mechanical systems.
  • The authority to impose requirements respecting specific features in the development, including machinery, systems, and equipment external to buildings, likely allows for the compulsory connection to district energy systems, municipal electricity services, heat pumps, solar panels, geothermal heating apparatus, irrigation systems using recycled water, and other energy efficient systems.

Covenant limiting natural gas use in new buildings

Last update: Aug. 2025

A local government could likely obtain a covenant under section 219 of the Land Title Act from an owner or developer that regulates the use of fossil fuels in a new building.

  • The covenant could be a promise from the developer that they will not use natural gas in the building, or it could be that the developer will use heat pumps as the buildings main heat source.
  • The council could obtain a section 219 covenant at the time of rezoning, on application for a subdivision approval, or for development permit or development variance permit applications.

Glossary Entry

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.

Glossary Entry

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.

Glossary Entry

Limits on new natural gas servicing and connections

To meet climate targets and reduce long-term reliance on fossil fuels, many BC municipalities are exploring strategies to limit or phase out new natural gas servicing in buildings. These approaches favour all-electric designs or on-site renewable energy systems and are motivated by concerns over future stranded gas assets, shifting regulatory landscapes, and the need for resilient infrastructure.

While the Building Act limits municipal authority over technical building systems, municipalities can still influence mechanical system choices by adopting the Zero Carbon Step Code (ZCSC), a performance-based compliance path that sets greenhouse gas intensity (GHGI) limits for new buildings. Higher steps in the ZCSC effectively require electric systems in most cases, providing a clear policy lever within provincial jurisdiction. Municipalities can further support the transition through legal and planning tools that target servicing, infrastructure, and development approvals.

Municipalities may designate Development Permit Areas (DPAs) to encourage energy conservation and GHG reduction, allowing regulation of external features like heat pumps and solar collectors. They may also negotiate section 219 covenants during development approvals that commit developers to avoid fossil fuel systems or prioritize electric heating. Additionally, local governments have the option of pursuing public franchise agreements under section 22 of the Community Charter to restrict new gas servicing, though this path is legally untested and may prompt utility opposition.

When combined with ZCSC adoption, these tools offer a layered and flexible strategy to transition new development away from natural gas while remaining within provincial jurisdiction.