By Bradford White Corporation
On July 23, 2024, the Vancouver City Council approved a directive that would allow for new homes to once again utilize natural gas for heating and hot water. This action significantly retreats from a more aggressive building electrification policy that the same council approved years earlier that required all new, low-rise residential buildings in the city to utilize only electric HVAC and water heating equipment.
In explaining their apparent about-face on this issue, council members cited information from BC Hydro, a major supplier of electric energy for the city, that showed the utility was struggling to keep up with the increased electric demand that resulted in large part from the city’s natural gas ban. Even when adding generating capacity assumed from the completion of a major dam project next year, BC Hydro will still be forced to look elsewhere for some 3,100 gigawatt hours of electricity to help Vancouver’s individuals, families and job providers to keep the lights on by the late 2020s. To put this in perspective, this is almost enough energy to satisfy all the electric demand for the entirety of the United States for one hour.
While BC Hydro’s production capacity concerns were a main topic of conversation during the City Council’s debate, they certainly were not the only issue discussed. Other city council members pointed to the all-electric requirement being a barrier to building new housing; increasing housing costs; and limiting consumer choices in appliances.
The City of Vancouver’s experience should serve as a valuable case study that demonstrates the unintended consequences that may come with policies that outlaw the use of natural gas in new buildings. This is especially relevant for the British Columbia Provincial government, which is currently considering a similar measure to that which was just repealed in Vancouver. When it comes to combatting climate change, there is no panacea, and it is important for policymakers to take measured and responsible approaches relative to the electric supply and demand realities within their jurisdictions.
That is where you can be helpful in the policymaking process. While the HVAC and water heating industries continue to be a focal point in the discussion about climate policy, your expertise can add to the conversation by explaining your experience and how certain proposals would impact you, your employees and your business. Providing this information assists in identifying shortcomings with certain policy proposals (like those in Vancouver) and leads to better overall solutions to the problems facing our industry, country, and world.
If you have any questions about the information in this column, or any other issues related to legislative and regulatory measures impacting our industry, BWC’s Government and Regulatory Affairs team is here to help. Also, if you know of any legislative or regulatory activity in your community or state that would impact our industry, please do not hesitate to contact us at
BWCGovReg@bradfordwhite.com.