Saskatoon moves to break with province on home energy efficiency standards

A city council committee decision could mean home builders in Saskatoon facing stricter energy efficiency standards compared to the rest of the province.

A report from city staff recommended Saskatoon return to a higher standard of energy efficiency building codes after the Saskatchewan government loosened province-wide regulations in April.

On Wednesday, the city's planning, development and community services committee voted in favour of the recommendation to regulate housing and small building energy efficiency standards above what's required by the province. City council will make the final decision.

Reverting to lower standards jeopardizes the city's goal to reduce Saskatoon's greenhouse gas emissions to net-zero by 2050 and have all new homes net-zero by 2036, according to the report.

Mayor Cynthia Block supported the move back to higher efficiency standards.

"I have no interest in rolling it back," Block said during the committee meeting. "I'm glad that we'll be aligned with our low emissions community plan and foundationally, this will make it less expensive for homeowners."

Construction is regulated through provincial codes and acts, but municipalities are tasked with enforcing those regulations.

The city wants to return to the Tier 2 level in the system outlined in the National Energy Code of Canada for Buildings, which sets design and construction requirements for new buildings.

In January 2024, the province set Tier 2 as the minimum energy efficient standard for homes and small buildings. Earlier this year, the province announced it would revert to Tier 1 standards to lower development costs and encourage construction.

The city report stated Tier 2 requirements cost about an extra $1,000 to $3,000 per home compared to Tier 1, but the more energy-efficient homes save about $300 on bills annually.

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Shannon Frieson, CEO of the Construction Association of Saskatchewan, said tariffs are a significant concern for the construction industry, which she says contributes more than six per cent to the provincial GDP.

Saskatoon and Region Home Builders' Association CEO Nicole Burgess said members are divided about what the city should do, but did raise concerns about creating two sets of regulations for home builders working in Saskatoon and outside of the city.

Regulation isn't the only way to ensure energy efficiency standards, Burgess told the committee.

"Incentive programs and consumer demand can play a powerful role in encouraging the adoption of higher tiers," she said. "This isn't about right and wrong, but it is about finding the right balance between thoughtful regulation and the realities of the market."

Tier 2 standards can improve energy efficiency by 10 per cent per household compared to Tier 1, or roughly the same as taking 274 cars off the road, according to the city report.

With committee approval, the recommendation will go to city council for a final decision.