Require energy reporting and disclosure for new Part 3 buildings post-occupancy

Legal Memorandum

Read the legal version from Lidstone & Co.

Energy reporting and disclosure, also known as energy benchmarking, is the practice of measuring a building’s energy use over time and comparing its performance to similar buildings. For new construction, it offers a way to assess whether a building performs as intended once it’s occupied—bridging the gap between design-stage energy modelling and real-world outcomes.

Unlike energy code compliance, which relies on simulations conducted before construction, post-occupancy reporting and disclosure reveals how a building actually operates. It can help identify inefficiencies, inform performance improvements, and support long-term planning for retrofits and emissions reductions.

Because energy reporting and disclosure requires at least 12 months of utility data, it applies after a building is operational. This means it cannot be used to regulate the construction phase, but local governments can still require energy performance reporting after a defined period of occupancy. Doing so supports both climate targets and asset management goals, while staying within the limits of the Building Act.

To support implementation, local governments can refer to the Step-By-Step Guide: Supporting Local Governments in British Columbia to Implement Energy Benchmarking, which provides detailed guidance on program design, data access, and stakeholder engagement.

Related Reading

Step-By-Step Guide: Supporting Local Governments in British Columbia to Implement Energy Benchmarking.

Lisa Westerhoff, Stewart Somerville, Jiaxin Li for Introba. Published by BC Hydro, Mar. 2024.

Regulatory pathways

Require energy reporting and disclosure under Section 8 of the Community Charter

Last update: Oct. 2025

Under section 8(3)(l) of the Community Charter, municipalities may impose requirements for energy measurement and reporting in relation to buildings or other structures.

How it works

  • A bylaw may require post-occupancy energy reporting and disclosure (also known as energy benchmarking) to support energy conservation and greenhouse gas (GHG) reduction—both of which are valid purposes under section 8(3)(l).
  • Councils must clearly identify the subsection of the Community Charter they are relying on and ensure there is sufficient evidence to support that choice.
  • Section 53 of the Community Charter limits how local governments may impose requirements related to buildings. They may do so only in connection with reducing GHGs, conserving energy, or protecting health, safety, or property.
  • Under the Building Act, section 5(3) restricts local building requirements that overlap with regulated matters. However, energy reporting and disclosure does not conflict with any existing building regulation or restricted matter.
  • Furthermore, section 2.2 of the Building Act General Regulation identifies energy conservation and GHG reduction as unrestricted matters, meaning municipalities may regulate them.
  • Importantly, energy reporting and disclosure and does not alter how a building is constructed and does not impose additional construction requirements beyond those in the Energy Step Code—so it would likely be permitted.
  • This authority applies to municipalities only, not regional districts (note that the Metro Vancouver Regional District is an exception, as they has other authorities that enable them to enact benchmarking).

Glossary Entry

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.

Glossary Entry

Require energy reporting and disclosure for new Part 3 buildings post-occupancy

Energy reporting and disclosure, also known as energy benchmarking, is the practice of measuring a building’s energy use over time and comparing its performance to similar buildings. For new construction, it offers a way to assess whether a building performs as intended once it’s occupied—bridging the gap between design-stage energy modelling and real-world outcomes.

Unlike energy code compliance, which relies on simulations conducted before construction, post-occupancy reporting and disclosure reveals how a building actually operates. It can help identify inefficiencies, inform performance improvements, and support long-term planning for retrofits and emissions reductions.

Because energy reporting and disclosure requires at least 12 months of utility data, it applies after a building is operational. This means it cannot be used to regulate the construction phase, but local governments can still require energy performance reporting after a defined period of occupancy. Doing so supports both climate targets and asset management goals, while staying within the limits of the Building Act.

To support implementation, local governments can refer to the Step-By-Step Guide: Supporting Local Governments in British Columbia to Implement Energy Benchmarking, which provides detailed guidance on program design, data access, and stakeholder engagement.