Zoning bylaw to regulate fossil fuels

Legal Memorandum

Read the legal version from Lidstone & Co.

Municipalities in BC have zoning powers that can be used to limit or prohibit land uses related to fossil fuel production, processing, and retailing. These powers allow local governments to shape how land is used in ways that align with climate objectives, particularly by discouraging or preventing new fossil fuel infrastructure in their communities.

Under section 479 of the Local Government Act, municipalities may enact zoning bylaws that prohibit specific land uses, including those involving the sale or processing of fossil fuels, where such uses are deemed incompatible with long-term land use plans or climate goals.

Local governments may also negotiate section 219 covenants during rezoning processes, securing voluntary agreements from landowners to limit fossil fuel-related uses in future developments. While covenants offer flexibility, their applicability may be more limited under recent legislative changes such as Bill 44, which allows small-scale multi-unit housing up to 4 or 6 units on residential lots that were previously zoned for single-family homes, and Bill 47, which restricts rezoning discretion in areas designated as transit-oriented areas.

Regulatory pathways

Zoning bylaws to regulate the use of land for fossil fuel production or retailing

Last update: Aug. 2025

Under section 479(1)(c)(i) of the Local Government Act (LGA), local governments can enact zoning bylaws to regulate the use of the land, and this includes the power to prohibit uses.

How it works

  • Local governments could likely regulate or prohibit a use of land that amounts to refinement, processing, or sale of fossil fuels, since this type of regulation would constitute a regulation of the use of land.

Covenant under section 219 of the Land Title Act at the time of rezoning

Last update: Oct. 2025

If a developer or owner of a property applies for rezoning, a local government could consider a covenant under section 219 of the Land Title Act from the developer or owner in their decision whether to rezone the property.

How it works

  • The local government is not permitted to promise that it will rezone the property in exchange for the section 219 covenant, but the council or planning staff are permitted to raise concerns about rezoning the property with a developer or owner and suggest a section 219 covenant as a way of alleviating those concerns.
  • Since a section 219 covenant is effectively a contractual promise between the owner of the land and the local government, it could include anything the owner agrees to, including limitations on fossil fuel use in the development.
    • We note that with the passing of Bills 44 and 47, this tool will likely only be useful in areas that are not zoned as transit-oriented areas or for small scale multi-unit housing.

Glossary Entry

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.

Glossary Entry

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

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

Zoning bylaw to regulate fossil fuels

Municipalities in BC have zoning powers that can be used to limit or prohibit land uses related to fossil fuel production, processing, and retailing. These powers allow local governments to shape how land is used in ways that align with climate objectives, particularly by discouraging or preventing new fossil fuel infrastructure in their communities.

Under section 479 of the Local Government Act, municipalities may enact zoning bylaws that prohibit specific land uses, including those involving the sale or processing of fossil fuels, where such uses are deemed incompatible with long-term land use plans or climate goals.

Local governments may also negotiate section 219 covenants during rezoning processes, securing voluntary agreements from landowners to limit fossil fuel-related uses in future developments. While covenants offer flexibility, their applicability may be more limited under recent legislative changes such as Bill 44, which allows small-scale multi-unit housing up to 4 or 6 units on residential lots that were previously zoned for single-family homes, and Bill 47, which restricts rezoning discretion in areas designated as transit-oriented areas.