Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 16): SOR/2019-163

Canada Gazette, Part II, Volume 153, Number 12

Registration

SOR/2019-163 June 3, 2019

ENERGY EFFICIENCY ACT

P.C. 2019-597 May 31, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to sections 20 footnote a and 25 of the Energy Efficiency Act footnote b, makes the annexed Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 16).

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 16)

Amendments

1 The definition CSA C300-00 in section 12 of the Energy Efficiency Regulations, 2016 footnote 1 is repealed.

2 Subsection 13(1) of the Regulations is replaced by the following:

EnerGuide label

13 (1) An energy-using product prescribed in any of Subdivisions A to G or K of this Division must be labelled in the form set out in Schedule 1.

3 (1) The definition Type 5A combination refrigerator freezer in section 39 of the Regulations is repealed.

(2) The definitions combination refrigerator-freezer and refrigerator in section 39 of the Regulations are replaced by the following:

combination refrigerator-freezer means a household combination refrigerator-freezer that has a defrost system, including a compressor-cycled automatic defrost system and a capacity of 1 105 L (39 cubic feet) or less. (réfrigérateur-congélateur)

refrigerator means a household refrigerator that has a capacity of 1 105 L (39 cubic feet) or less and that has a defrost system, including a compressor-cycled automatic defrost system. It does not include

4 Paragraphs 40(a) to (p) of the Regulations are replaced by the following:

5 Section 41 of the Regulations is replaced by the following:

Type

41 For the purposes of these Regulations, a refrigerator or combination refrigerator-freezer is one of the product types (1) to (7-BI) and (11) to (15I) of Table 1 to CSA C300-15.

6 The table to section 43 of the Regulations is replaced by the following:

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Refrigerators and combination refrigerator-freezers

CSA C300-12

CSA C300-12, Table 1

On or after February 3, 1995 and before September 15, 2014

2

Refrigerators and combination refrigerator-freezers

CSA C300-15

CSA C300-15, Table 1

On or after September 15, 2014

7 Paragraphs 44(2)(a) to (c) of the Regulations are replaced by the following:

8 Section 45 of the Regulations is replaced by the following:

Definition of freezer

45 In this Subdivision, freezer means a household freezer that has a capacity of 850 L (30 cubic feet) or less.

9 Paragraphs 46(a) to (n) of the Regulations are replaced by the following:

10 Section 47 of the Regulations is replaced by the following:

Type

47 For the purposes of these Regulations, a freezer is one of the types described in the product types (8) to (10A) and (16) to (18) of Table 1 to CSA C300-15.

11 The table to section 49 of the Regulations is replaced by the following:

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Freezers

CSA C300-12

CSA C300-12, Table 1

On or after February 3, 1995 and before September 15, 2014

2

Freezers

CSA C300-15

CSA C300-15, Table 1

On or after September 15, 2014

12 Paragraphs 50(2)(a) to (c) of the Regulations are replaced by the following:

13 The Regulations are amended by adding the following after section 69:

SUBDIVISION K

Miscellaneous Refrigeration Products

Definitions

70 The following definitions apply in this Subdivision.

10 C.F.R. Appendix A means Appendix A to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Refrigerators, Refrigerator-Freezers, and Miscellaneous Refrigeration Products, as amended from time to time, except for the waiver referred to in section 7 of that Appendix. (appendice A 10 C.F.R.)

10 C.F.R. §430.32(aa)(1) means the table to paragraph 430.32(aa)(1) of Subpart C, Part 430 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. §430.32(aa)(1))

10 C.F.R. §430.32(aa)(2) means the table to paragraph 430.32(aa)(2) of Subpart C, Part 430 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. §430.32(aa)(2))

miscellaneous refrigeration product means a household refrigeration product, which includes a cooler and combination cooler refrigeration product, but does not include a refrigerator, refrigerator-freezer or freezer. (appareil de réfrigération divers)

Type

71 For the purposes of these Regulations, a miscellaneous refrigeration product is one of the following types:

Energy-using product

72 (1) A miscellaneous refrigeration product is prescribed as an energy-using product.

Limits

(2) However, for the purposes of sections 4, 5, 13 to 15 and 73, a miscellaneous refrigeration product is not considered to be an energy-using product unless

Energy efficiency standard

73 (1) The energy efficiency standards set out in column 3 of the table to this section apply to miscellaneous refrigeration products described in column 1 that are manufactured during the periods set out in column 4.

Testing standard

(2) A miscellaneous refrigeration product complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to a miscellaneous refrigeration product as defined in section 70.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Miscellaneous refrigeration products

CSA C300-12

CSA C300-12, Table 1

On or after January 1, 2008 and before September 15, 2014

2

Miscellaneous refrigeration products

CSA C300-15

CSA C300-15, Table 1

On or after September 15, 2014 and before October 28, 2019

3

Miscellaneous refrigeration products – coolers

10 C.F.R. Appendix A

10 C.F.R. §430.32(aa)(1)

On or after October 28, 2019

4

Miscellaneous refrigeration products – combination cooler refrigeration products

10 C.F.R. Appendix A

10 C.F.R. §430.32(aa)(2)

On or after October 28, 2019

Information

74 (1) For the purpose of subsection 5(1) of the Act, the following information must be provided to the Minister in respect of a miscellaneous refrigeration product:

Standard

(2) The information must be collected in accordance with one of the following standards:

SUBDIVISION L

Ceiling Fans

Definitions

75 The following definitions apply in this Subdivision.

10 C.F.R. Appendix U means Appendix U to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Ceiling Fans, as amended from time to time. (appendice U 10 C.F.R.)

10 C.F.R. §430.32(s)(2)(i) means the table to subparagraph 430.32(s)(2)(i) of Subpart C, Part 430 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. §430.32(s)(2)(i))

ceiling fan means a non-portable device that is suspended from a ceiling for circulating air via the rotation of fan blades. It does not include

Type

76 For the purposes of these Regulations, a ceiling fan is one of the following types:

Energy-using product

77 (1) A ceiling fan is prescribed as an energy-using product.

Limits

(2) However, for the purposes of sections 4, 5 and 78, a ceiling fan is not considered to be an energy-using product unless it is manufactured on or after January 21, 2020.

Energy efficiency standard

78 (1) The energy efficiency standard for a ceiling fan is the standard as set out in 10 C.F.R. §430.32(s)(2)(i).

Testing standard

(2) A ceiling fan complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix U that are applicable to a ceiling fan as defined in section 75.

Information

79 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with 10 C.F.R. Appendix U and provided to the Minister in respect of a ceiling fan:

14 Section 107 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix M means Appendix M to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Central Air Conditioners and Heat Pumps, as amended from time to time. (appendice M 10 C.F.R)

15 The definitions CSA C370 and portable air conditioner in section 108 of the Regulations are repealed.

16 Paragraph 110(b) of the Regulations is replaced by the following:

17 The portion of item 2 of the Table to section 112 of the Regulations in column 2 is replaced by the following:

TABLE

Item

Column 2

Energy Efficiency Standard

2

CSA C368.1-14, table 1, second column

18 Section 124 of the Regulations is amended by adding the following in alphabetical order:

off mode power consumption means the power consumption when the unit is connected to mains power but is not providing cooling or heating. (consommation d’énergie en mode arrêt)

19 (1) Subsection 126(1) of the Regulations is replaced by the following:

Energy efficiency standards — single-phase

126 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to single-phase single package central air conditioners described in column 1 that are manufactured during the periods set out in column 4.

Energy efficiency standards — three-phase

(1.1) The energy efficiency standards set out in column 3 of Table 2 to this section apply to three-phase single package central air conditioners described in column 1 that are manufactured during the periods set out in column 4.

(2) The heading of the table to section 126 is replaced by the following:

TABLE 2

(3) Section 126 is amended by adding the following before Table 2:

TABLE 1

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Single package central air conditioners, other than those that are through-the-wall or small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

On or after February 3, 1995 and before January 1, 2017

2

Single package central air conditioners, other than those that are through-the-wall or small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 14.0

Off mode power consumption ≤ 30 W

On or after January 1, 2017

3

Single package central air conditioners that are through-the-wall

CSA C656-05

Seasonal energy efficiency ratio ≥ 10.6

On or after February 3, 1995 and before January 23, 2010

4

Single package central air conditioners that are through-the-wall

CSA C656-05

Seasonal energy efficiency ratio ≥ 12.0

On or after January 23, 2010 and before January 1, 2017

5

Single package central air conditioners that are through-the-wall

CSA C656-05 for seasonal energy efficiency ratio 10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 12.0

Off mode power consumption ≤ 30 W

On or after January 1, 2017

6

Single package central air conditioners that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

On or after February 3, 1995 and before January 1, 2017

7

Single package central air conditioners that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio

10 C.F.R. Appendix M for off mode power consumption

Seaonal energy efficiency ratio ≥ 12.0

Off mode power consumption ≤ 30 W

On or after January 1, 2017

20 Section 127 of the Regulations is replaced by the following:

Information

127 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected and provided to the Minister in respect of a single package central air conditioner described in column 1 and, if applicable, the information must be collected in accordance with the standard set out in column 2.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Single package central air conditioners, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2017

CSA C656-05
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity, in kW (Btu/h); and
  • (c) seasonal energy efficiency ratio.

2

Single package central air conditioners that are single-phase, other than those that are through-the-wall, manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (c)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio;
  • (d) off mode power consumption; and
  • (e) phase of electric current.

3

Single package central air conditioners that are three-phase, other than those that are through-the-wall, manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (c)
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio; and
  • (d) phase of electric current.

4

Single package central air conditioners that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2017

CSA C656-05
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h); and
  • (c) seasonal energy efficiency ratio.

5

Single package central air conditioners that are single-phase, through-the-wall and manufactured on or after January 1, 2017

CSA C656-05 for information set out in paragraphs (a) to (c)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio;
  • (d) off mode power consumption;
  • (e) phase of electric current.

6

Single package central air conditioners that are three-phase, through-the-wall, and manufactured on or after January 1, 2017

CSA C656-05 for information set out in paragraphs (a) to (c)
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio; and
  • (d) phase of electric current.

21 Subsection 129(2) of the Regulations is replaced by the following:

Limit

(2) However, for the purposes of sections 4, 5 and 130, a single package vertical air conditioner is not considered to be an energy-using product unless it is manufactured on or after January 1, 2011 and has a cooling capacity of less than 70 kW (240,000 Btu/h).

22 Section 130 of the Regulations is replaced by the following:

Energy efficiency standards

130 (1) The energy efficiency standards set out in column 2 of the table to this section apply to single package vertical air conditioners described in column 1 that are manufactured during the periods set out in column 3.

Testing standard

(2) A single package vertical air conditioner complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by CSA C746-17 that are applicable to a single package vertical air conditioner as defined in section 128.

TABLE

Item

Column 1

Energy-using Product

Column 2

Energy Efficiency Standard

Column 3

Period of Manufacture

1

Single package vertical air conditioners that have a cooling capacity of < 19 kW (65,000 Btu/h)

Energy efficiency ratio ≥ 9.0

On or after January 1, 2011 and before September 23, 2019

2

Single package vertical air conditioners that have a cooling capacity of < 19 kW (65,000 Btu/h)

Energy efficiency ratio ≥ 11.0

On or after September 23, 2019

3

Single package vertical air conditioners that have a cooling capacity of ≥ 19 kW (65,000 Btu/h) and < 39.5 kW (135,000 Btu/h)

Energy efficiency ratio ≥ 8.9

On or after January 1, 2011 and before October 9, 2015

4

Single package vertical air conditioners that have a cooling capacity of ≥ 19 kW (65,000 Btu/h) and < 39.5 kW (135,000 Btu/h)

Energy efficiency ratio ≥ 10.0

On or after October 9, 2015

5

Single package vertical air conditioners that have a cooling capacity of ≥ 39.5 kW (135,000 Btu/h) and < 70 kW (240,000 Btu/h)

Energy efficiency ratio ≥ 8.6

On or after January 1, 2011 and before October 9, 2016

6

Single package vertical air conditioners that have a cooling capacity of ≥ 39.5 kW (135,000 Btu/h) and < 70 kW (240,000 Btu/h)

Energy efficiency ratio ≥ 10.0

On or after October 9, 2016

23 The portion of section 131 of the Regulations before paragraph (b) is replaced by the following:

Information

131 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C746-17 and provided to the Minister in respect of a single package vertical air conditioner:

24 Section 132 of the Regulations is replaced by the following:

Definitions

132 The following definitions apply in this Subdivision.

off mode power consumption means the power consumption when the unit is connected to mains power but is not providing cooling or heating. (consommation d’énergie en mode arrêt)

split-system central air conditioner means a single-phase or three-phase central air conditioner that is a split-system with a cooling capacity of less than 19 kW (65,000 Btu/h). (climatiseur central bibloc)

25 (1) Subsection 134(1) of the Regulations is replaced by the following:

Energy efficiency standards — single-phase

134 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to single-phase split-system central air conditioners described in column 1 that are manufactured during the periods set out in column 4.

Energy efficiency standards — three-phase

(1.1) The energy efficiency standards set out in column 3 of Table 2 to this section apply to three-phase split-system central air conditioners described in column 1 that are manufactured during the periods set out in column 4.

(2) The heading of the table to section 134 is replaced by the following:

TABLE 2

(3) Section 134 is amended by adding the following before Table 2:

TABLE 1

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Split-system central air conditioners, other than those that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

On or after February 3, 1995 and before January 1, 2017

2

Split-system central air conditioners, other than those that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 13.0

Off mode power consumption ≤ 30 W

On or after January 1, 2017

3

Split-system central air conditioners that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 11.0

On or after February 3, 1995 and before January 1, 2017

4

Split-system central air conditioners that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 12.0

Off mode power consumption ≤ 30 W

On or after January 1, 2017

26 (1) The portion of section 135 of the Regulations before the table is replaced by the following:

Information

135 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected and provided to the Minister in respect of a split-system central air conditioner described in column 1 and, if applicable, the information must be collected in accordance with the standard set out in column 2.

(2) The portion of item 1 of the table to section 135 of the Regulations in column 3 is replaced by the following:

Item

Column 3

Information

1

(a) product classification set out in Column II of Table 1 to CSA C656-05;

(b) cooling capacity in kW (Btu/h); and

(c) seasonal energy efficiency ratio.

(3) Item 2 of the table to section 135 of the Regulations is replaced by the following:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

2

Split-system central air conditioners that are single-phase and manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (c)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio;
  • (d) off mode power consumption; and
  • (e) phase of electric current.

3

Split-system central air conditioners that are three-phase and manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (c)
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) seasonal energy efficiency ratio; and
  • (d) phase of electric current.

27 Section 140 of the Regulations is amended by adding the following in alphabetical order:

ASHRAE 90.1-16 means ANSI/ASHRAE/IES Standard 90.1-2016, entitled Energy Standard for Buildings Except Low-Rise Residential Buildings. (ASHRAE 90.1-16)

28 (1) The portion of item 2 of the table to section 142 of the Regulations in column 3 is replaced by the following:

Item

Column 3

Period of Manufacture

2

On or after January 1, 2017 and before December 31, 2019

(2) The table to section 142 of the Regulations is amended by adding the following after item 2:

Item

Column 1

Standard

Column 2

Energy Efficiency Standard

Column 3

Period of Manufacture

3

ASHRAE 90.1-16, table 6.8.1-3, column 6

Product’s coefficient of performance and integrated part-load value must meet those applicable to the product in
ASHRAE 90.1-16, Path A or Path B,
Table 6.8.1-3

On or after December 31, 2019

29 The table to section 143 of the Regulations is replaced by the following:

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Chillers manufactured on or after October 28, 2004 and before January 1, 2017

CSA C743-02
  • (a) type;
  • (b) net cooling/heating capacity in kW (tons);
  • (c) coefficient of performance; and
  • (d) integrated part-load value or non-standard part-load value and a list of non-standard conditions.

2

Chillers manufactured on or after January 1, 2017 and before December 31, 2019

CSA C743-09
  • (a) type;
  • (b) net cooling/heating capacity, in kW (tons);
  • (c) coefficient of performance;
  • (d) compliance path for the energy-efficiency standard, namely, Path A or Path B of Table 10 to CSA C743-09; and
  • (e) integrated part-load value or non-standard part-load value and a list of non-standard conditions.

3

Chillers manufactured on or after December 31, 2019

ASHRAE 90.1-16, Table 6.8.1-3, column 6
  • (a) type;
  • (b) net cooling/heating capacity in kW (tons);
  • (c) coefficient of performance;
  • (d) compliance path for the energy-efficiency standard, namely, Path A or Path B of Table 6.8.1-3 of ASHRAE 90.1-16;
  • (e) integrated part-load value; and
  • (f) list of non-standard conditions for centrifugal chillers designed for non-standard operation.

30 The Regulations are amended by adding the following after section 143:

SUBDIVISION I

Portable Air Conditioners

Definitions

144 The following definitions apply in this Subdivision.

10 C.F.R. Appendix CC means Appendix CC to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Portable Air Conditioners, as amended from time to time. (appendice CC 10 C.F.R.)

dual-duct portable air conditioner means a portable air conditioner that draws some or all of the condenser inlet air from outside the conditioned space through a duct attached to an adjustable window bracket and discharges the condenser outlet air outside the conditioned space by means of a separate duct attached to an adjustable window bracket. (climatiseur portative à deux conduits)

portable air conditioner means a single package air conditioner, other than a packaged terminal air conditioner, room air conditioner or dehumidifier, with or without mounted wheels, that is portable and that

single-duct portable air conditioner means a portable air conditioner that draws all of the condenser inlet air from the conditioned space without the means of a duct and discharges the condenser outlet air outside the conditioned space through a single duct attached to an adjustable window bracket. (climatiseur portatif à un conduit unique)

Energy-using product

145 (1) A portable air conditioner is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4 and 5, a portable air conditioner is not considered to be an energy-using product unless it is manufactured on or after July 1, 2020.

Information

146 (1) For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with 10 C.F.R. Appendix CC and provided to the Minister in respect of a portable air conditioner:

Additional information

(2) For a product with multiple duct configuration options, the information required by paragraphs 1(a) and (b) must be provided for both applicable duct configurations.

31 Section 186 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix M means Appendix M to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Central Air Conditioners and Heat Pumps, as amended from time to time. (appendice M 10 C.F.R.)

32 The definition CSA C744-14 in section 199 of the Regulations is replaced by the following:

CSA C744-17 means the joint CSA and AHRI standard ANSI/AHRI 310/380-2017/CSA-C744-17 entitled Packaged terminal air conditioners and heat pumps. (CSA C744-17)

33 The portion of item 2 of the table to section 201 of the Regulations in columns 1 and 2 is replaced by the following:

Item

Column 1


Standard

Column 2


Energy Efficiency Standard

2

CSA C744-17

CSA C744-17, Table 2

34 Paragraph 202(2)(b) of the Regulations is replaced by the following:

35 Section 203 of the Regulations is amended by adding the following in alphabetical order:

off mode power consumption means the power consumption when the unit is connected to mains power but is not providing cooling or heating. (consommation d’énergie en mode arrêt)

36 (1) Subsection 205(1) of the Regulations is replaced by the following:

Energy efficiency standards — single-phase

205 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to single-phase package heat pumps described in column 1 that are manufactured during the periods set out in column 4.

Energy efficiency standards — three-phase

(1.1 ) The energy efficiency standards set out in column 3 of Table 2 to this section apply to three-phase single package heat pumps described in column 1 that are manufactured during the periods set out in column 4.

(2) The heading of the table to section 205 is replaced by the following:

TABLE 2

(3) Section 205 is amended by adding the following before Table 2:

TABLE 1

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Single package heat pumps, other than those that are through-the-wall or small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

Heating seasonal performance factor (Region V) ≥ 6.7

On or after February 3, 1995 and before January 1, 2017

2

Single package heat pumps, other than those that are through-the-wall or small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio and heating seasonal performance factor

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 14.0

Heating seasonal performance factor (Region V) ≥ 7.0

Off mode power consumption ≤ 33 W

On or after January 1, 2017

3

Single package heat pumps that are through-the-wall

CSA C656-05

Seasonal energy efficiency ratio ≥ 10.6

Heating seasonal performance factor (Region V) ≥ 6.1

On or after February 3, 1995 and before January 23, 2010

4

Single package heat pumps that are through-the-wall

CSA C656-05

Seasonal energy efficiency ratio ≥ 12.0

Heating seasonal performance factor (Region V) ≥ 6.4

On or after January 23, 2010 and before January 1, 2017

5

Single package heat pumps that are through-the-wall

CSA C656-05 for seasonal energy efficiency ratio and heating seasonal performance factor

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 12.0

Heating seasonal performance factor (Region V) ≥ 6.4

Off mode power consumption ≤ 33 W

On or after January 1, 2017

6

Single package heat pumps that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

Heating seasonal performance factor (Region V) ≥ 6.7

On or after February 3, 1995 and before January 1, 2017

7

Single package heat pumps that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio and heating seasonal performance factor

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 12.0

Heating seasonal performance factor (Region V) ≥ 6.3

Off mode power consumption ≤ 30 W

On or after January 1, 2017

37 Section 206 of the Regulations is replaced by the following:

Information

206 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected and provided to the Minister in respect of a single package heat pump described in column 1 and, if applicable, the information must be collected in accordance with the standard set out in column 2.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Single package heat pumps, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2017

CSA C656-05
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio; and
  • (e) heating seasonal performance factor and the region for the factor.

2

Single package heat pumps that are single-phase, other than those that are through-the-wall, manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (e)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio;
  • (e) heating seasonal performance factor and the region for the factor;
  • (f) off mode power consumption; and
  • (g) phase of electric current.

3

Single package heat pumps that are three-phase, other than those that are through-the-wall, manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (e)
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio;
  • (e) heating seasonal performance factor and the region for the factor; and
  • (f) phase of electric current.

4

Single package heat pumps that are through-the-wall and manufactured on or after February 3, 1995 and before January , 2017

CSA C656-05
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio; and
  • (e) heating seasonal performance factor and the region for the factor.

5

Single package heat pumps that are single-phase, through-the-wall and manufactured on or after January 1, 2017

CSA C656-05 for information set out in paragraphs (a) to (e)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio;
  • (e) heating seasonal performance factor and the region for the factor;
  • (f) off mode power consumption; and
  • (g) phase of electric current.

6

Single package heat pumps that are three-phase, through-the-wall and manufactured on or after January 1, 2017

CSA C656-05 for information set out in paragraphs (a) to (e)
  • (a) product classification set out in Column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio;
  • (e) heating seasonal performance factor and the region for the factor; and
  • (f) phase of electric current.

38 Subsection 208(2) of the Regulations is replaced by the following:

(2) However, for the purposes of sections 4, 5 and 209, a single package vertical heat pump is not considered to be an energy-using product unless it is manufactured on or after January 1, 2011 and has a cooling capacity of less than 70 kW (240,000 Btu/h).

39 Section 209 of the Regulations is replaced by the following:

Energy efficiency standards

209 (1) The energy efficiency standards set out in column 2 of the table to this section apply to single package vertical heat pumps described in column 1 that are manufactured during the periods set out in column 3.

Testing standard

(2) A single package vertical heat pump complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by CSA C746-17 that are applicable to a single package vertical heat pump as defined in section 207.

TABLE

Item

Column 1

Energy-using Product

Column 2

Energy Efficiency Standard

Column 3

Period of manufacture

1

Single package vertical heat pumps that have a cooling capacity of < 19 kW (65,000 Btu/h)

Energy efficiency ratio ≥ 9.0

Heating coefficient of performance ≥ 3.0

On or after January 1, 2011 and before September 23, 2019

2

Single package vertical heat pumps that have a cooling capacity of < 19 kW (65,000 Btu/h)

Energy efficiency ratio ≥ 11.0

Heating coefficient of performance ≥ 3.3

On or after September 23, 2019

3

Single package vertical heat pumps that have a cooling capacity of ≥ 19 kW (65,000 Btu/h) and < 39.5 kW (135,000 Btu/h)

Energy efficiency ratio ≥ 8.9

Heating coefficient of performance ≥ 3.0

On or after January 1, 2011 and before October 9, 2015

4

Single package vertical heat pumps that have a cooling capacity of ≥ 19 kW (65,000 Btu/h) and < 39.5 kW (135,000 Btu/h

Energy efficiency ratio ≥ 10.0

Heating coefficient of performance ≥ 3.0

On or after October 9, 2015

5

Single package vertical heat pumps that have a cooling capacity of ≥ 39.5 kW (135,000 Btu/h) and < 70 kW (240,000 Btu/h)

Energy efficiency ratio ≥ 8.6

Heating coefficient of performance ≥ 2.9

On or after January 1, 2011 and before October 9, 2016

6

Single package vertical heat pumps that have a cooling capacity of ≥ 39.5 kW (135,000 Btu/h) and < 70 kW (240,000 Btu/h)

Energy efficiency ratio ≥ 10.0

Heating coefficient of performance ≥ 3.0

On or after October 9, 2016

40 The portion of section 210 of the Regulations before paragraph (b) is replaced by the following:

Information

210 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C746-17 and provided to the Minister in respect of a single package vertical heat pump:

41 Section 211 of the Regulations is replaced by the following:

Definitions

211 The following definitions apply in this Subdivision.

off mode power consumption means the power consumption when the unit is connected to mains power but is not providing cooling or heating. (consommation d’énergie en mode arrêt)

split-system heat pump means a single-phase or three-phase air-to-air heat pump that is a centrally ducted split-system and that has a cooling or heating capacity of less than 19 kW (65,000 Btu/h). (thermopompe bibloc)

42 (1) Subsection 213(1) of the Regulations is replaced by the following:

Energy efficiency standards — single-phase

213 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to single-phase split-system heat pumps described in column 1 that are manufactured during the periods set out in column 4.

Energy efficiency standards — three-phase

(1.1) The energy efficiency standards set out in column 3 of Table 2 to this section apply to three-phase split-system heat pumps described in column 1 that are manufactured during the periods set out in column 4.

(2) The heading of the table to section 213 is replaced by the following:

TABLE 2

(3) Section 213 is amended by adding the following before Table 2:

TABLE 1

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Split-system heat pumps, other than those that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 13.0

Heating seasonal performance factor (Region V) ≥ 6.7

On or after December 31, 1998 and before January 1, 2017

2

Split-system heat pumps, other than those that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio and Heating seasonal performance factor

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 14.0

Heating seasonal performance factor (Region V) ≥ 7.1

Off mode power consumption ≤ 33 W

On or after January 1, 2017

3

Split-system heat pumps that are small-duct and high-velocity

CSA C656-05

Seasonal energy efficiency ratio ≥ 11.0

Heating seasonal performance factor (Region V) ≥ 5.9

On or after December 31, 1998 and before January 1, 2017

4

Split-system heat pumps that are small-duct and high-velocity

CSA C656-14 for seasonal energy efficiency ratio and Heating seasonal performance factor

10 C.F.R. Appendix M for off mode power consumption

Seasonal energy efficiency ratio ≥ 12.0

Heating seasonal performance factor (Region V) ≥ 6.3

Off mode power consumption ≤ 30 W

On or after January 1, 2017

43 Section 214 of the Regulations is replaced by the following:

Information

214 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected and provided to the Minister in respect of a split-system heat pump described in column 1 and, if applicable, the information must be collected in accordance with the standard set out in column 2.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Split-system heat pumps manufactured on or after December 31, 1998 and
before January 1, 2017

CSA C656-05
  • (a) product classification set out in column II of Table 1 to CSA C656-05;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio; and
  • (e) heating seasonal performance factor and the region for the factor.

2

Split-system heat pumps
that are single-phase and manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (e)

10 C.F.R. Appendix M for off mode power consumption
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio ;
  • (e) heating seasonal performance factor and the region for the factor;
  • (f) off mode power consumption; and
  • (g) phase of electric current.

3

Split-system heat pumps
that are three-phase and manufactured on or after January 1, 2017

CSA C656-14 for information set out in paragraphs (a) to (e)
  • (a) product classification set out in column II of Table 1 to CSA C656-14;
  • (b) cooling capacity in kW (Btu/h);
  • (c) heating capacity in kW (Btu/h);
  • (d) seasonal energy efficiency ratio;
  • (e) heating seasonal performance factor and the region for the factor; and
  • (f) phase of electric current.

44 (1) The definition refrigerated beverage vending machine in section 646 of the Regulations is replaced by the following:

refrigerated beverage vending machine means a self-contained product that is designed to accept consumer payments and dispense refrigerated beverages in bottles, cans or other sealed containers. (distributeur automatique de boissons réfrigérées)

(2) Section 646 of the Regulations is amended by adding the following in alphabetical order:

combination vending machine means a refrigerated beverage vending machine containing two or more compartments separated by a solid partition — whether or not they share a product delivery chute — in which at least one compartment is designed to be refrigerated and has temperature controls; and at least one compartment is not designed to be refrigerated and does not contain temperature controls. (distributeur automatique mixte))

CSA C804 means the CSA standard CAN/CSA-C804:18 entitled Energy performance of refrigerated bottled or canned beverage vending machines. (CSA C804 )

45 The Regulations are amended by adding the following before section 647:

646.1 For the purposes of these Regulations, the class of a refrigerated beverage vending machine is one of the following:

46 (1) Subsection 648(2) of the Regulations is replaced by the following:

Testing standard

(2) The refrigerated beverage vending machine complies with the energy efficiency standard if it meets that standard in the following circumstances:

(2) Items 4 and 5 of the table to section 648 of the Regulations are replaced by the following:

Item

Column 1

Energy-using Product

Column 2

Energy Efficiency Standard

Column 3

Period of Manufacture

4

Class A refrigerated beverage
vending machines

Edaily ≤ 0.00194 × V + 2.56

Must be capable of operating in
standby mode

On or after August 31, 2012 and before January 8, 2019

5

Class B refrigerated beverage
vending machines

Edaily ≤ 0.00258 × V + 3.16

Must be capable of operating in
standby mode

On or after August 31, 2012 and before January 8, 2019

6

Class A refrigerated beverage
vending machines

Edaily ≤ 0.00184 x V + 2.43

On or after January 8, 2019

7

Class B refrigerated beverage
vending machines

Edaily ≤  0.00184 x V + 2.20

On or after January 8, 2019

8

Combination A combination
vending machines

Edaily ≤ 0.00304 x V + 2.66

On or after January 8, 2019

9

Combination B combination
vending machines

Edaily ≤ 0.00392 x V + 2.04

On or after January 8, 2019

47 Section 649 of the Regulations is replaced by the following:

649 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected in accordance with the standard set out in column 2, with the testing procedure adjusted in accordance with paragraphs 648(2)(a) and (b), and be provided to the Minister in respect of a refrigerated beverage vending machine described in column 1.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Refrigerated beverage vending machines manufactured on or after January 1, 2007 and before August 31, 2012

Sections 1 to 7.2 of ASHRAE 32.1
  • (a) Edaily;
  • (b) vendible capacity; and
  • (c) number of discrete types of beverages that it can display and dispense.

2

Refrigerated beverage vending machines manufactured on or after August 31, 2012 and before January 8, 2019

Sections 1 to 7.2 of ASHRAE 32.1
  • (a) Edaily;
  • (b) if the product is Class A or Class B; and
  • (c) V.

3

Refrigerated beverage vending machines manufactured on or after January 8, 2019

CSA C804
  • (a) Edaily;
  • (b) if the product is Class A, Class B, Combination A, or Combination B;
  • (c) if Edaily was calculated based on the presence of a refrigeration low power mode;
  • (d) if applicable, the lowest application product temperature in degrees Celsius;
  • (e) V; and
  • (f) the percentage of the surface area on the front side that is transparent.

48 Subsection 650(2) of the Regulations is replaced by the following:

(2) However, for the purposes of sections 4, 5 and 651, a snack and refrigerated beverage vending machine is not considered to be an energy-using product unless it is manufactured on or after January 1, 2007 and before January 8, 2019.

49 (1) The definitions walk-in process cooling refrigeration system and walk-in refrigeration system in section 657 of the Regulations are replaced by the following:

walk-in process cooling refrigeration system means a refrigeration system that

walk-in refrigeration system means a refrigeration system that is installed, or that is designed to be installed, in a walk-in cooler or walk-in freezer for the purpose of cooling its refrigerated compartment and has a unit cooler or a dedicated condensing refrigeration system. It includes all controls and other components that are integral to its operation but does not include a walk-in process cooling refrigeration system. (système de réfrigération de chambre froide)

(2) Paragraphs (a) to (c) of the definition dedicated condensing unit in section 657 of the Regulations are replaced by the following:

(3) Section 657 of the Regulations is amended by adding the following in alphabetical order:

dedicated condensing refrigeration system means a dedicated condensing unit, a single-package dedicated system or a matched refrigeration system. (unité de condensation dédié)

matched refrigeration system means a refrigeration system that includes a dedicated condensing unit and one or more unit coolers with which it is sold. (système de réfrigération apparié)

unit cooler means an assembly that includes a means for forced air circulation and elements by which heat is transferred from air to refrigerant without any element external to the cooler imposing air resistance. (refroidisseur d’air)

50 Section 658 of the Regulations is renumbered as subsection 658(1) and is amended by adding the following:

Additional requirements

(2) Every walk-in cooler dedicated condensing refrigeration system that is manufactured on or after January 1, 2020 and every walk-in refrigeration system that is manufactured on or after July 10, 2020 must be labelled with a nameplate that is attached to the outside of the product in a location that is readily visible prior to assembly of the walk-in cooler or the walk-in freezer and that sets out the following information in English and French:

Idem

(3) For matched refrigeration systems, the statement referred to in paragraph (2)(e) must appear on the dedicated condensing unit.

51 Subsection 665(2) of the Regulations is replaced by the following:

(2) However, a walk-in refrigeration system is not considered to be an energy-using product for the purposes of sections 4, 5 and 666 unless

52 (1) Subsection 666(1) of the Regulations is replaced by the following:

(1) The energy efficiency standards set out in column 2 of the table to this section apply to walk-in refrigeration systems described in column 1 that are manufactured during the periods set out in column 3.

(2) Section 666 of the Regulations is amended by adding the following after subsection (2):

TABLE

Item

Column 1

Energy-using Product

Column 2

Energy Efficiency Standard

Column 3

Period of Manufacture

1

Walk-in cooler dedicated condensing refrigeration systems for use indoors

Annual walk-in energy factor ≥ 1.644

On or after January 1, 2020

2

Walk-in cooler dedicated condensing refrigeration systems for use outdoors

Annual walk-in energy factor ≥ 2.227

On or after January 1, 2020

3

Walk-in freezer dedicated condensing refrigeration systems for use indoors with a net refrigeration capacity of < 1900 W (6,500 Btu/h)

Annual walk-in energy factor ≥ 9.091 x 10-5 x qnet + 0.530

On or after July 10, 2020

4

Walk-in freezer dedicated condensing refrigeration systems for use indoors with a net refrigeration capacity of ≥ 1900 W (6,500 Btu/h)

Annual walk-in energy factor ≥ 0.703

On or after July 10, 2020

5

Walk-in freezer dedicated condensing refrigeration system for use outdoors with a net refrigeration capacity of < 1900 W (6,500 Btu/h)

Annual walk-in energy factor ≥ 6.522 x 10-5 x qnet + 0.800

On or after July 10, 2020

6

Walk-in freezer dedicated condensing refrigeration systems for use outdoors with a net refrigeration capacity of ≥ 1900 W (6,500 Btu/h)

Annual walk-in energy factor ≥ 0.923

On or after July 10, 2020

7

Walk-in cooler unit coolers with a fan motor that operates using direct current or has a nominal voltage of not more than 480 V AC

Annual walk-in energy factor ≥ 2.638

On or after July 10, 2020

8

Walk-in freezer unit coolers with a net refrigeration capacity of < 4540 W (15,500 Btu/h)

Annual walk-in energy factor ≥ 1.575x 10-5 x qnet + 1.146

On or after July 10, 2020

9

Walk-in freezer unit coolers with a net refrigeration capacity of ≥ 4540 W(15,500 Btu/h

Annual walk-in energy factor ≥ 1.216

On or after July 10, 2020

53 Section 667 of the Regulations is amended by striking out “and” at the end of paragraph (a) and by adding the following after paragraph (b):

54 The Regulations are amended by adding the following after section 803:

DIVISION 14

Pumps

SUBDIVISION A

Clean Water Pumps

Definitions

804 The following definitions apply in this subdivision.

10 C.F.R. Appendix A means Appendix A to Subpart Y, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Energy Consumption of Pumps, as amended from time to time. (appendice A 10 C.F.R.)

10 C.F.R. 431.465(b)(4) means the table to paragraph 431.465(b)(4) of Subpart Y, Part 431 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. 431.465(b)(4))

best efficiency point means the pump hydraulic power operating point that results in a maximum efficiency. (point de rendement maximal)

clean water means water that has a maximum non-absorbent solid content of 0.25 kg/m3(0.016 lb/ft3), a maximum dissolved solid content of 50 kg/m3 (3.1 lb/ft3) and a total gas content that does not exceed the saturation volume and that may include additives necessary to prevent the water from freezing down to -10°C (14°F). (eau claire)

clean water pump means a pump – with or without mechanical equipment, driver and controls, that is designed for pumping clean water – other than a fire pump, a self-priming pump, a prime-assist pump, a magnet-driven pump, a pump designed to be used in a nuclear facility, a pump designed to Canadian or United States military specifications or a pump designed and marketed for use as a pool pump, that

Energy-using product

805 (1) A clean water pump is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 806, a clean water pump is not considered to be an energy-using product unless it is manufactured on or after January 27, 2020.

Energy efficiency standard

806 (1) The energy efficiency standard that applies to a clean water pump is the maximum pump energy index set out for the applicable equipment class in 10 C.F.R. 431.465(b)(4).

Testing standard

(2) A clean water pump complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that apply to a clean water pump as defined in section 804.

Information

807 For the purpose of subsection 5(1) of the Act, the following information must be provided to the Minister in respect of a clean water pump:

Coming into Force

55 (1) These Regulations, other than sections 16 and 17, come into force on the day that, in the sixth month after the month in which they are published in the Canada Gazette, Part II has the same calendar number as the day on which they are published or, if that sixth month has no day with that number, the last day of that sixth month.

(2) Sections 16 and 17 come into force on the date on which these Regulations are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Greenhouse gases are primary contributors to climate change, which has an impact on Canada’s economy and environment. Canada’s building sector represents a significant portion of national greenhouse gas emissions given the amount of energy used to heat space and water and the amount of electricity this sector consumes from the grid. National policies and strategies such as the Pan-Canadian Framework on Clean Growth and Climate Change, Build Smart – Canada’s Buildings Strategy, and the recent report from the Generation Energy Council demonstrate the Government of Canada’s commitments to improve energy efficiency standards for appliances and equipment in taking action on climate change. The Government of Canada remains committed to reducing regulatory burden, continuing to support the Canada–United States Regulatory Cooperation Council’s efforts to align regulations between Canada and the United States, given the integrated nature of the markets. Achieving these commitments will provide benefits to Canadians through energy cost savings and improved environmental outcomes, which can lead to increased productivity, competitiveness and energy affordability.

Since 2011, the United States Department of Energy (U.S. DOE) has implemented changes to its regulations across several product categories. To reduce unnecessary regulatory differences, support cross-border trade and investment, and, ultimately, reduce costs for citizens, businesses and economies, it is necessary to implement amendments to the Energy Efficiency Regulations, 2016. This amendment (the Amendment) is the third in a series of four amendments designed to remove all unnecessary regulatory differences between Canada and the United States that occurred since 2011.

In December 2016, First Ministers adopted the Pan-Canadian Framework on Clean Growth and Climate Change, which presents the country’s plan to reduce greenhouse gas emissions to at least 30% below 2005 levels by 2030, grow the economy, and build resilience to a changing climate. The framework outlined new actions that would be taken to reduce emissions from the built environment. These actions provided the foundation for Build Smart – Canada’s Building Strategy, which was published in 2017 to provide a vision for Canada’s building sector and an overview of the specific initiatives that will be developed and implemented. This strategy includes a commitment to use regulated energy efficiency standards as part of a broader effort to transform the markets for windows, space and water heating systems to next generation high-efficiency technology.

Description: The Amendment introduces or updates minimum energy performance standards, testing standards, verification and reporting requirements to improve the energy efficiency of nine residential, commercial and industrial product categories. Specifically, the Amendment is designed to (a) introduce minimum energy performance standards, testing standards, verification footnote 2 and reporting footnote 3 requirements for two new product categories; (b) introduce more stringent minimum energy performance standards and/or update testing standards for six product categories currently regulated federally; and (c) introduce verification requirements, reporting requirements and testing standards for one new product category.

Cost-benefit statement: The Amendment is estimated to result in an annual reduction of 0.36 megatonnes of greenhouse gas emissions in 2040. The benefits and costs associated with the Amendment have been estimated using a methodology consistent with that of previous modifications to the Energy Efficiency Regulations and the Energy Efficiency Regulations, 2016, and of other energy efficiency regulators, such as the United States Department of Energy. Based on this methodology, the present value of net benefits of the Amendment is estimated to be $1.4 billion by 2040, with total benefits exceeding total costs by more than three to one. By 2040, the present value of benefits and costs from the Amendment is estimated to be $1.96 billion and $556 million, respectively. On an annualized average basis, this equates to benefits and costs of $123 million and $35 million, respectively.

The quantified benefits have been calculated as the sum of the energy savings and the benefits of reductions in greenhouse gas emissions over the service life of products shipped by 2040. The quantified costs include incremental technology costs to meet the more stringent standards, administrative costs and costs to Government associated with regulatory implementation.

While not quantified as part of this analysis, energy efficiency improvements also provide broader economic and non-energy benefits. For example, businesses benefit from energy and operating cost savings, which can increase productivity and competitiveness. Households benefit from increased comfort, improved air quality, and reduced noise resulting from higher performance products.

“One-for-One” Rule and small business lens: The Amendment is considered an “IN” under the “One-for-One” Rule. It will increase the administrative burden by $55,508 in annualized average administrative costs to affected businesses or $57 per business.

The Amendment will impact seven small Canadian manufacturers of affected products. The majority of these seven manufacturers are not expected to face incremental costs, as they already manufacture compliant products and demonstrate compliance with similar requirements already in force in other jurisdictions. Small manufacturers that are expected to incur incremental costs have been engaged in consultations, but have not raised any compliance issues associated with the size of their respective companies.

Domestic and international coordination and cooperation: Implementation of the Amendment will reduce unnecessary regulatory differences between Canada and the United States, consistent with binational commitments made under the Canada–United States Regulatory Cooperation Council, and the commitments made by the Prime Minister of Canada and the President of the United States in 2016. It will also support the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs regarding the Canada–United States Regulatory Cooperation Council, signed in June 2018, by seeking to foster alignment of federal regulations where feasible and appropriate. Domestically, the Amendment will reduce regulatory differences that currently exist between federal and provincial regulations for certain product categories, such as ceiling fans and clean water pumps.

Background

In 1992, Parliament passed Canada’s Energy Efficiency Act (the Act). The Act provides for the making and enforcement of regulations requiring energy-using products that are imported or shipped inter-provincially for the purpose of sale or lease to meet minimum energy performance standards (MEPS) footnote 4 for product labelling and for the promotion of energy efficiency and alternative energy use, including the collection of data and statistics on energy use.

The Energy Efficiency Regulations were introduced in 1995 as a means to reduce greenhouse gas (GHG) emissions in Canada. In 2016, the Energy Efficiency Regulations were repealed and replaced to remove references to obsolete and out-of-date standards and improve the organization of the regulatory text and became the Energy Efficiency Regulations, 2016 (the Regulations). The Regulations prescribe MEPS for certain consumer and commercial energy-using products. They also prescribe labelling requirements for certain products to disclose and compare the energy use of a given product model relative to others in their category. They are regularly amended to introduce new energy-using products and to update existing requirements.

Since most energy-using products must cross provincial or international borders to reach their markets, federally prescribed MEPS are an effective tool to raise the level of energy efficiency in Canada. Prescribed MEPS are one component of Canada’s program to reduce GHG emissions and energy consumption associated with energy-using products because they eliminate the least efficient products from the market. Natural Resources Canada (NRCan) also administers the ENERGY STAR® labelling program, which sets voluntary specifications for 75 product categories and identifies the top 15% to 30% of energy efficiency performers, making the choice of energy-efficient products simple for consumers. footnote 5

When combined, MEPS and labelling programs drive product innovation through cycles of continuous improvement. Increasing the stringency of MEPS eliminates the least efficient products from the market while increasing the levels that must be met for a product to be certified as ENERGY STAR®, and encourages manufacturers to produce affordable high-efficiency products that consumers will recognize as good choices to lower their energy costs. MEPS and labelling programs are among the most cost-effective GHG emissions reduction policies and are the cornerstone of energy efficiency and climate change programs in more than 80 countries. footnote 6

Policy context

Canada committed to reduce its GHG emissions by 30% below 2005 levels by 2030 by signing the Paris Agreement in 2015. Building on this commitment, First Ministers agreed to take ambitious action in support of meeting or exceeding this target. They also agreed that a collaborative approach between provincial, territorial, and federal governments is important to reduce GHG emissions and to enable sustainable economic growth.

Since August 2014, Canada and the United States have worked towards a goal of aligning new and updated energy efficiency standards and testing standards for energy-using appliances and equipment through enhanced information sharing and a cooperative development and implementation process, to the extent practicable and permitted by law within the context of the Canada–United States Regulatory Cooperation Council. footnote 7

In December 2016, First Ministers adopted the Pan-Canadian Framework on Clean Growth and Climate Change, which presents the country’s plan to meet its GHG emissions reduction targets, grow the economy, and build resilience to a changing climate. The plan outlines an approach for Canadian homes and commercial and institutional buildings (building sector) that consists of four elements: (1) making new buildings more energy efficient; (2) retrofitting existing buildings, as well as fuel switching; (3) supporting building codes and energy-efficient housing in Indigenous communities; and (4) improving energy efficiency for appliances and equipment.

Fully one-third of Canada’s emission reduction target could be met through improvements in energy efficiency, which would also make Canadian businesses more competitive internationally and leave more money in consumers’ pockets. These conclusions are supported by an Efficiency Canada report on the economic impacts of energy efficiency, which showed that implementing strong energy efficiency programs will increase Canada’s gross domestic product and job growth. footnote 8

In June 2018, the Generation Energy Council released a report that highlighted the important role that energy efficiency can play in supporting the transition to a low-carbon economy. footnote 9

Issues

GHGs are primary contributors to climate change, which has an impact on Canada’s economy and environment. Carbon dioxide, a by-product of fossil fuel consumption, has been identified as the most significant GHG.

The building sector is a significant contributor to Canada’s GHG emissions. This sector accounted for about 17% of national GHG emissions in 2014. The level of emissions in the building sector is impacted by the energy-using equipment it contains. For instance, products that combust fuel to generate heat lead to direct carbon dioxide emissions at the site, while products that consume electricity contribute to GHG emissions at the point of electricity generation.

GHG emissions from Canadian homes declined by 1 Mt between 2005 and 2015, and are projected to decline by a further 3 Mt between 2015 and 2030. This is despite an expected 36% increase (or 4.4 million) in the number of Canadian households (a key driver of residential emissions growth) between 2005 and 2030. GHG emissions from Canada’s commercial buildings increased by 1 Mt between 2005 and 2015, and are expected to remain relatively constant through 2030, despite an expected 32% increase in floor space from 2005 to 2030. footnote 10

While technologies exist in the Canadian market to provide incremental reductions in GHG emissions and energy consumption in the building sector, there are market failures that lead to consumers making economic or environmental choices with respect to energy efficiency that are less than optimal. These include a lack of awareness and information available to consumers regarding energy-saving opportunities and actual energy use, a lack of capacity within organizations to understand and manage energy use, and split incentives (e.g. landlords may not purchase efficient equipment if tenants pay the energy bill).

In 2011, the Canada–United States Regulatory Cooperation Council stated that unnecessary regulatory differences and duplicative actions hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses and economies. footnote 11 Since 2011, the U.S. Department of Energy has implemented changes to its regulations across several product categories, by applying energy efficiency standards to new product categories, increasing the stringency of energy efficiency standards for some currently regulated product categories, and updating testing standards. These changes have not all been made in Canada, which has resulted in an increasing number of unnecessary regulatory differences.

Regulatory action is required to address these issues, given that voluntary measures will not be sufficient to phase out some low-efficiency product models from the Canadian market. It is also required to address unnecessary regulatory differences between Canada and the United States.

Objectives

The goals of the Amendment are to

The desired outcomes of the Amendment are as follows:

Description

In March 2017, NRCan published a notice of intent to inform stakeholders that the Department was initiating the development of a regulatory amendment to introduce or increase the stringency of MEPS for 17 product categories. Since that time, a subsequent decision was made to address these product categories through two separate regulatory proposals and some product categories have been added or removed based on consultation with industry and information from the market studies. These changes have been communicated to stakeholders by updating the forward regulatory plans regularly, publishing technical bulletins online and through proposals published in the Canada Gazette, Part I.

The Amendment (a) introduces MEPS, testing standards, verification and reporting requirements for two new product categories; (b) introduces more stringent MEPS and/or update testing standards for six product categories currently regulated federally; and (c) introduces verification requirements, reporting requirements and testing standards for one new product category. The Amendment will come into force six months after the date of publication in the Canada Gazette, Part II, except for two provisions correcting a reference for room air conditioner, which will come into force on the date on which the Amendment is registered.

For the new product categories, import reports and energy efficiency reports will be required for the first time. The information requirements in the energy efficiency reports will be aligned to the extent possible with what is submitted in the United States.

The following is a list of changes that are being made through the Amendment.

(A) Introduce MEPS, testing standards, verification and reporting requirements for two new product categories

Clean water pumps

Clean water pumps are used in commercial and industrial applications. They move clean water by physical or mechanical action, and may be part of a pumping system that includes other mechanical equipment, drivers and controls. Clean water pumps covered by the scope of this amendment include end suction close-coupled pumps; end suction frame mounted with own bearings pumps; inline pumps; radially split, multi-stage, vertical inline diffuser casing pumps; and submersible turbine pumps.

For clean water pumps manufactured on or after January 27, 2020, the Amendment sets the MEPS at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Miscellaneous refrigeration products

Miscellaneous refrigeration products (MRPs) are used in residential applications and are designed for the cooling and storage of wine, food and other beverages. This new subcategory will include residential wine coolers that are already regulated (under wine chillers in the subcategory of refrigerators) and the scope will be expanded to cover coolers and combination cooler refrigeration products. For MRPs manufactured on or after October 28, 2019, the Amendment sets the MEPS at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States. Similar to the residential wine coolers, the coolers and combination cooler refrigeration products will be required to carry an EnerGuide Label.

(B) Introduce more stringent MEPS and/or update testing standards for six currently regulated product categories

Ceiling fans

Ceiling fans are suspended from the ceiling and circulate air via the rotation of fan blades. For ceiling fans manufactured on or after January 21, 2020, the Amendment sets the MEPS applicable to airflow efficiency at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Central air conditioners and heat pumps (single package central air conditioner, split-system central air conditioner, single package heat pumps and split-system heat pumps)

Central air conditioners and heat pumps are single-phase and three-phase air-source air conditioners and heat pumps, with a rated capacity of less than 19 kW (65 000 Btu/h). These include single package, split system, ductless, space-constrained, and small-duct, high-velocity air conditioners and heat pumps used in residential and small commercial applications.

For central air conditioners and heat pumps under 19 kW (65 000 Btu/h) manufactured on or after January 1, 2017, the Amendment sets the MEPS applicable to off-mode energy consumption at levels that are currently in place in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Chillers

Chillers are used in large commercial and institutional buildings to provide space cooling by removing heat from a liquid, usually water, which is then used to provide the cooling needs of the building.

For chillers manufactured on or after December 31, 2019, the Amendment sets the MEPS at levels that are currently in place in Ontario and in the U.S. states that have adopted the ASHRAE standard. Performance will be measured in accordance with testing standards aligned with those used in the United States and Ontario.

Refrigerated beverage vending machines

Refrigerated beverage vending machines are used in commercial applications to cool bottled or canned beverages and dispense them upon payment. Refrigerated beverage vending machines that contain both a refrigerated and non-refrigerated compartment separated by a solid partition will also be subject to the Regulations.

For refrigerated beverage vending machines that have been manufactured on or after January 8, 2019, the Amendment sets the MEPS at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Single package vertical air conditioners and heat pumps

Single package vertical air conditioners (SPVACs) are air-cooled commercial single packaged equipment that provide space cooling and may or may not provide heating. Single package vertical heat pumps (SPVHPs) are air-cooled commercial single packaged equipment that provide both space cooling and heating. SPVACs and SPVHPs have their major components arranged vertically and are generally used in modular classrooms, office buildings and telecommunications shelters. Performance in cooling (SPVACs and SPVHPs) and heating (SPVHPs only) will be measured in accordance with testing standards aligned with those of the United States:

Walk-in refrigeration systems

Walk-in refrigeration systems are designed to cool or freeze enclosed storage spaces less than 278.71 m2 (3 000 ft2) that allow a person to enter.

For walk-in refrigeration systems that have been manufactured on or after July 10, 2020, the Amendment sets the MEPS at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States. The requirement for a nameplate to be attached is also aligned with the United States requirements.

(C) Introduce verification requirements, reporting requirements and testing standards for one new product category

Portable air conditioners

Portable air conditioners (PACs) are residential self-contained portable systems that deliver cooled, conditioned air to a single room and include single and dual duct. They include a source of refrigeration and may include additional means for air circulation and heating. They typically sit on the floor and come with an installation kit for quick set up.

For PACs manufactured on or after July 1, 2020, the Amendment will require the submission of energy efficiency reports and importation reports. Performance will be measured in accordance with testing standards aligned with those of the United States.

Regulatory and non-regulatory options considered

Maintaining the status quo

GHG emissions associated with the built environment are projected to decrease significantly between 2005 and 2030 despite significant increases in floor space, due to a combination of policies and programs to reduce energy use and associated GHG emissions from electricity production to power these buildings. Given Canada’s commitment to reducing GHG emissions by 30% below 2005 levels by 2030 and the fact that Canada’s building sector accounts for approximately 17% of national emissions, maintaining the status quo would not contribute incremental reductions towards the achievement of these goals. In addition, by not reducing consumption of clean electricity in the building sector, maintaining the status quo would limit opportunities to use this supply to increase the use of electricity in other sectors of the economy (e.g. transportation) and avoid GHG emissions. It would also lead to missed opportunities to reduce energy consumption, leaving households, businesses and institutions with higher energy costs for heating associated with the building sector.

Since 2011, the U.S. Department of Energy has implemented changes to its regulations across several product categories by applying energy efficiency standards to new product categories, increasing the stringency of energy efficiency standards for some currently regulated product categories, and updating testing standards. These changes have not all been made in Canada. Maintaining the status quo would not address these unnecessary regulatory differences between Canada and the United States.

Voluntary approach (repeal the Regulations)

Under this approach, Canada would repeal the Regulations and rely on voluntary measures to reduce GHG emissions and energy consumption associated with energy-using products. This option would reduce costs for the regulated industry since there would be no mandatory requirements to meet; however, it would not address GHG emissions to the extent required to meet commitments made under the Pan-Canadian Framework on Clean Growth and Climate Change, nor would it reduce energy consumption to the extent that a regulatory approach would. A voluntary approach would also be a significant departure from Canada’s approach to advancing energy efficiency and the intent of the Act.

A voluntary approach would result in fewer GHG emission reductions than the status quo option or taking a regulatory approach. Studies have shown that in countries where MEPS have been introduced for the first time, significant energy efficiency improvements have been observed. For example, a 32% energy efficiency improvement was achieved in one year (1994–1995) when Mexico first implemented MEPS for four product categories. footnote 12 Such improvements have translated into large reductions in energy consumption and GHG emissions. Globally, the most mature national MEPS and labelling programs covering a broad range of products are estimated to save between 10% and 25% of national energy consumption. footnote 13 There is strong evidence to show that significant and sustained improvements in energy efficiency occur where MEPS are subject to ongoing revision to keep pace with the rate of improvement in new products entering a market. footnote 14 Given the global evidence of the significant benefits of MEPS, a voluntary approach would mean that these benefits would not be realized.

Incremental compliance costs associated with unnecessary regulatory differences between Canada and the United States occur only in situations where both countries enforce mandatory requirements. There are product categories currently regulated in the United States that are not regulated in Canada. In these cases, the regulatory regimes are different in each country, but do not create a burden for industry, since no energy efficiency requirements need to be satisfied in Canada.

Regulatory action

Taking regulatory action will lead to greater GHG emission reductions than either the status quo or the voluntary approach. This approach will provide important incremental GHG emission reductions to contribute to the achievement of Canada’s commitments made under the Pan-Canadian Framework on Clean Growth and Climate Change and reduce compliance costs associated with unnecessary regulatory differences, since it will align requirements with those of the United States. As a result, regulatory action will reduce the burden for companies that offer the same products in the United States and Canada.

Benefits and costs

Summary

Reduced energy consumption, lower GHG emissions and fewer unnecessary regulatory differences will result in significant net benefits over the lifetime of affected product models. The benefits vary by individual user depending on end-use sector, geographical location and operational practices.

Annual reductions in energy consumption associated with the Amendment are estimated to be 3.57 petajoules (PJ) in 2030, and to reach 3.85 PJ in 2040 as the sale of more efficient equipment steadily replaces the pre-regulation stock.

Annual reductions in GHG emissions resulting from these reductions in energy consumption are estimated to be 0.33 Mt in 2030, and to reach 0.36 Mt in 2040. It is estimated that, by applying a social cost of carbon to these reductions, the cumulative present value of economic benefits associated with GHG emission reductions will be $313 million by 2040. footnote 15

Canadian consumers will also realize economic co-benefits in the form of reduced energy costs due to the implementation of the Amendment. It is estimated that almost $1.65 billion in cumulative present value energy savings will be realized by 2040.

The cumulative present value of incremental technology costs and costs to Government associated with the Amendment are estimated to be $555 million and $0.1 million, respectively, by 2040.

The present value of net benefits of the Amendment is estimated to be $1.4 billion by 2040, with total benefits exceeding total costs by a ratio of more than three to one. By 2040, the present value of benefits and costs from the Amendment is estimated to be $1.96 billion and $556 million, respectively. Benefits and costs associated with the Amendment are presented in Table 1.

Table 1: Summary of benefits and costs associated with the Amendment

Monetized Benefits

Costs (as applicable)

Quantified Benefits

Unquantified Non-Energy Benefits

Energy (electricity) savings

Technology costs

Energy savings (PJ)

Outside air quality, competitiveness, job growth, home comfort, indoor air quality, minimizing depressurization in new construction, etc.

Avoided damages because of GHG reductions

Installation and maintenance costs

GHG savings (Mt)
 

Government administration

  
 

Compliance costs and administrative burden footnote 16

  

Interested parties seeking more details on this analysis can request a copy of the cost-benefit analysis document by contacting the individual named at the end of this document.

Methodology, assumptions and data

NRCan analyzed the economic gains to be made through the new and more stringent MEPS and the impact on Canadian society within a cost-benefit analysis framework. The costs and benefits associated with the Amendment were obtained by comparing the following scenarios:

Business-as-usual case

For the purpose of this analysis, the business-as-usual case was defined in terms of Canadian market conditions assessed in 2016. Where Canadian MEPS are aligned with those of the United States, it was assumed that incremental costs and benefits in Canada were fully the result of the Canadian amendments, with no post-2016 spillover effects from the other jurisdictions such as the United States. This assumption is consistent with those of other recent federal regulations footnote 17 and provides an assessment of the full economic impacts of regulatory changes affecting Canadians.

Policy case

The policy case is defined as the application of new or more stringent MEPS across eight product categories relative to markets defined by studies completed in 2016. There is one product category included in the Amendment which does not introduce new or more stringent MEPS. This product category has been included in the compliance and administrative cost calculations presented in Table 3, but no other benefits or costs have been modelled for this product category given that there are no added technology, installation or maintenance costs.

Benchmarks

For all product categories, benchmarks are chosen to represent the product models that do not meet the more stringent MEPS. Within those benchmarks, two efficiency levels are considered and weighted based on their relative market share: (1) the least efficient; and (2) the efficiency of the average unit impacted. Where relevant, regional sensitivities were evaluated (e.g. a heat pump would save more energy per year in a colder location).

Social cost of carbon

The social cost of carbon was used to quantify the economic benefits of reducing GHG emissions. It represents an estimate of the economic value of avoided climate change damages at the global level for current and future generations as a result of reducing one tonne of carbon dioxide emissions. The estimated values of the social cost of carbon used in this assessment draw on ongoing work undertaken by Environment and Climate Change Canada in collaboration with a federal interdepartmental working group and in consultation with a number of external academic experts. This work involves reviewing existing literature and other countries’ approaches to valuing GHG emissions. Recommendations, based on current literature and in line with the approach adopted by the U.S. Interagency Working Group on the Social Cost of Greenhouse Gases, footnote 18 are that it is reasonable to estimate a social cost of carbon values at $46.84/tonne of carbon dioxide equivalent in 2018 (in 2018$), increasing each year with the expected growth in damages. footnote 19

Methodology to estimate costs

The additional or “incremental” costs associated with the Amendment were determined as the difference between the cost of the inefficient product model, represented by the selected benchmark, and the cost of a modified version of that product model that would meet the new or more stringent MEPS. For each product category, the potential cost of modifying the benchmark product model so that it meets the more stringent MEPS was estimated (e.g. cost of adding extra insulation to a water heater, cost of replacing an inefficient compressor in an air conditioner). These costs were then multiplied by the number of shipments of the product models in the business-as-usual case that were estimated to have an energy performance that is worse than what is required by the MEPS. Results were combined across all affected product categories to arrive at the estimate of total costs.

Additional incremental costs related to installation and maintenance costs over the lifetime of the product were also evaluated, as applicable. Total costs reported as being attributable to the Amendment include, when appropriate, manufacturing, administrative burden and compliance costs, as well as those incurred by Government to implement the changes. Compliance costs for products that are already being tested to enter the U.S. market or under voluntary programs are not included. The added costs of verification requirements is not included either because they are confidential business costs that vary based on business relationships. footnote 20 However, they are estimated to be less than 10% of the total compliance costs.

Methodology to estimate benefits

Energy savings for each product category were estimated by calculating the energy used by the selected benchmark product model by simulating how it would be normally used in a year (e.g. number of operating hours). The result is compared to the energy used by the modified version of that product model that would meet the more stringent MEPS. The difference was multiplied by the number of shipments of the product models in the business-as-usual case that were estimated to have an energy performance that is worse than what is required by the MEPS and the number of years the product is expected to last, in order to arrive at the total energy savings. Results were summed across all affected product categories to arrive at the estimate of total energy saved. Energy savings were monetized using the cost of energy per unit of energy saved (i.e. dollars per kilowatt hour).

The reductions in GHG emissions were calculated by applying fuel-specific emissions factors, consistent with those published by Environment and Climate Change Canada, to the resulting energy savings. To remain consistent with the U.S. methodology and produce more realistic GHG savings, the reductions attributable to diminished electricity consumption reported throughout this document were calculated by applying the emission factors associated with the marginal fuels footnote 21 used to generate the electricity that will be saved through implementation of the Amendment. To allow comparison with outcomes reported under the Pan-Canadian Framework on Clean Growth and Climate Change, the reductions in GHG emissions were also calculated by applying an average emission factor. Annual reductions in GHG emissions with the average emission factor are estimated to be 0.11 Mt in 2030, increasing to 0.12 Mt in 2040. GHG emissions were monetized and incorporated into the analysis using a social cost of carbon, as calculated by Environment and Climate Change Canada. The social cost of carbon represents an estimate of the economic value of avoided climate change damages at the global level — for current and future generations — as a result of reducing GHG emissions.

Assumptions

Key assumptions include the following:

Data collection and sources

Data is collected on a product-by-product basis, through market studies. It provides key inputs to the analysis such as market size; the portion of the market that does not meet the new or more stringent MEPS; the benchmarks that best represent that portion of the market; energy savings from the business-as-usual case to the policy case; costs of moving from the business-as-usual case to the policy case; product lifetime; and installation and maintenance costs.

Results

The methodology described above was applied to all product categories to develop an estimate of the benefits and costs attributable to the Amendment. The results vary by product category depending on the magnitude of the increase in stringency of the MEPS and the estimated portion of the market that will be impacted by the Amendment. The estimated benefits and costs for each product category are presented in Table 2. Negative numbers in the table indicate that these particular subcategories present negative net benefits. Consistent with previous amendments, subcategories that do not generate net positive benefits remain subject to the Amendment in order to achieve the desired objectives and outcomes of the Amendment from which Canadians will benefit as a whole. These results were then aggregated to present the overall impacts of the Amendment in Table 3.

Table 2: Benefits and costs (technology, installation and maintenance) per product category

Product Category

Cumulative Total for Product

Shipped by 2040 (Millions of Dollars) [2018$]

Product Costsfootnote 26

Product Benefitsfootnote 27

Product Net Benefits

Ceiling fans

$111.05

$225.41

$114.37

Chillers

Air cooled

$20.49

$18.58

-$1.91

Water cooled, displacement

$4.57

$2.78

-$1.79

Water cooled, centrifugal

$22.24

$18.48

-$3.75

Clean water pumps

$9.49

$21.40

$11.91

Miscellaneous refrigeration products

$233.10

$715.91

$482.81

Refrigerated beverage vending machines

$3.09

$65.16

$62.08

Single package vertical air conditioners and heat pumps

Air conditioners

$46.03

$104.76

$58.73

Heat pumps

$0.77

$1.41

$0.65

Walk-in refrigeration systems

$103.76

$789.96

$686.20

Total of all products

$554.6

$1,963.90

$1,409.30

Note 1: Numbers may not add up to totals due to rounding. Covers shipments impacted by the Amendment between 2019 and 2040. All benefits and costs are discounted at 3% to the year 2018.

Note 2: For central air conditioners and heat pumps, the analysis does not attribute any costs or benefits to the implementation of the MEPS, as all product models being imported into Canada or shipped between provinces comply with the more stringent MEPS.

Note 3: For portable air conditioners, the compliance and administrative cost calculations are included in Table 3, but no other benefits or costs have been modelled for this product category given that there are no added technology, installation or maintenance costs.

Table 3: Summary of benefits and costs to Canadians

Costs, Benefits and Distribution

Aggregate Annual Totals

Total Cumulative Present Value

Average Annualized Over Period to 2040

2020

2030

2040

By 2040

A. Quantified impacts ($) [millions in 2018 prices]

Benefits

Pre-tax fuel (electricity) savings

Canadians

$98.90

$112.70

$112.70

$1,650.67

$103.58

Avoided GHG damages

Canadians

$17.49

$21.47

$23.43

$313.20

$19.65

Total benefits

$116.39

$134.16

$136.13

$1,963.87

$123.23

Costs

Technology, installation and maintenance costs

Canadians

$36.17

$36.88

$36.88

$554.59

$34.80

Compliance costs and administrative burden footnote 28

Canadians

$0.11

$0.12

$0.12

$1.82

$0.11

Government administration

Government

$0.10

$0

$0

$0.10

$0.01

Total costs

$36.38

$37.00

$37.00

$556.51

$34.92

Net benefits

$80.01

$97.16

$99.12

$1,407.36

$88.31

B. Quantified impacts (in non-$)

Positive impacts on Canadians

Energy savings (petajoules)

0.40

3.57

3.85

61.62

—

GHG emission reductions (megatonnes)

0.04

0.33

0.36

5.79

—

Note: Numbers may not add up to totals due to rounding. Covers shipments impacted by the Amendment between 2019 and 2040. All benefits and costs are discounted at 3% to the year 2018.

Additional benefits and costs

For industries using affected energy-using products in their operations, an improvement in energy performance translates into energy and operating cost savings and improved environmental performance, which can lead to increased productivity and competitiveness, and, when such companies spend these energy savings on expanding their businesses or factories, they create greater demand. Reduced electricity consumption from regulated products also benefits the utilities by reducing peak loads and the need to add more generating capacity.

Because of the lack of data, the analysis has not quantified widely accepted benefits such as reduced air pollution, and non-energy benefits related to energy efficiency, such as increased occupant comfort, better indoor air quality and minimizing risks of depressurization in new constructions with better envelopes.

The analysis has quantified costs and benefits for each product category relative to a business-as-usual case defined by market conditions assessed in 2016. In the case of one product category (central air conditioners and heat pumps), the assessment showed that all product models being imported into Canada or shipped between provinces comply with the more stringent MEPS. While the analysis does not attribute any costs or benefits to the implementation of the MEPS for this product category, this Amendment will prevent future dumping of low-efficiency product models into the Canadian market.

Another benefit of the Amendment is related to the verified energy efficiency performance information of energy-using products that is collected by NRCan through its compliance program. The information for new energy-using products will be posted to the NRCan website footnote 29 and will be accessible to households or businesses to help them make informed purchase decisions. Utilities and retailers also benefit from this information, since it supports programming to promote the sale of high-efficiency products.

“One-for-One” Rule

The Amendment is considered an “IN” under the “One-for-One” Rule. It will increase administrative burden by approximately $55,508 in annualized average administrative costs to industry.

Assumptions underlying administrative burden estimates

Familiarization with the Amendment

Familiarization with new information obligations is a one-time administrative function that applies to manufacturers of regulated products. The task involves reviewing and understanding the new requirements of the Amendment, as well as the energy efficiency reporting form that NRCan provides to each stakeholder. This one-time event is estimated to take two hours to be realized by someone with a technical background with a wage rate of approximately $42 per hour. The number of stakeholders impacted is estimated at 697, which represents the total number of companies identified under the following three Harmonized System (HS) codes:

The use of these codes likely over-estimates the total number of companies that would be directly impacted by the Amendment. NRCan does not have access to more detailed information that would allow for a more precise stakeholder estimate and has decided, for the purpose of this calculation, to apply estimates of incremental burden to all 697 stakeholders.

Submitting import reports

The Amendment introduces import reporting requirements for new energy-using products. Importers of these new products will carry an incremental ongoing administrative burden, as they will be required to provide information for up to 16 new 10-digit HS codes at the time of importation. To estimate the frequency and time associated with this administrative action, NRCan analyzed Canada Border Services Agency import data from four years (2012–2015) to establish number of importers, average number of transactions per year and average number of transactions per year per HS code. Based on this analysis, it is estimated that 62 importers will be affected by this incremental activity, which will occur 2 082 times per year. It is assumed that clerical staff with a wage rate of approximately $30 will undertake this task.

To estimate the time required per event, NRCan relied upon a U.S. Department of Energy assessment of the time it takes to populate a similar report in a similar context: information is readily available and must simply be entered into the proper place in the report. The U.S. Department of Energy estimated that it took approximately 22 seconds per data element to populate this report. To account for minor differences between the complexities of the data elements in Canada’s import reports and those that were the subject of the U.S. Department of Energy analysis, NRCan estimates that it will take 36 seconds per data element, with each report requiring two data elements to be submitted for the impacted products.

Submitting efficiency reports

The Amendment introduces an administrative burden associated with the reporting of energy performance information before an energy-using product is imported or shipped across provinces. The added burden applies to products that have reporting elements that differ from reporting requirements already in place in other jurisdictions.

The data used to calculate incremental administrative burden costs was obtained from a variety of sources such as internal compliance databases, numerous product market studies, Statistics Canada, the Canada Border Services Agency, the Canadian Federation of Independent Business, and the U.S. Department of Energy. Analysis of the data indicates that around 30 manufacturers of residential portable air conditioners may be impacted by new reporting requirements, which require inputting data into fields of the energy efficiency reports. The time required to input the data has been estimated to take 36 seconds per data element. These activities will be undertaken by administrative support with a wage rate of approximately $29 per hour.

Consultation — “One-for-One” Rule

Manufacturers commented that the reporting requirements for portable air-conditioners will add a burden given that information is not required to be submitted in the United States.

A stakeholder noted that the administrative burden for submitting energy efficiency reports was not taken into account in the analysis and should be considered. The administrative burden associated with submitting energy efficiency report is only accounted for in the analysis if the Amendment requires more information than what is submitted in the United States. In this case, it was determined that the energy efficiency reporting requirements introduced by the Amendment for walks-in freezers and coolers were aligned with those of the United States and did not add incremental administrative burden.

For all other products, stakeholders were generally supportive of the approach to achieve alignment with U.S. regulations across these product categories, which includes the alignment of reporting requirements. The calculations take into account that there is an administrative burden for portable air conditioners.

Small business lens

Statistics Canada and Canada Border Services Agency data, obtained from Treasury Board Secretariat’s regulatory cost calculator, indicates that 869 small businesses may be impacted by this Amendment. This number overestimates the total small businesses that will be impacted because NRCan is only regulating a subset of products within each industry sector represented in the data. NRCan does not have access to more specific information to identify the portion of these sectors that would be affected. Therefore, using this number to estimate the administrative costs on small businesses represent a conservative, worst case scenario. The reporting requirements are minor and represent the minimum amount of information required to assess that an individual product model meets the prescribed standards; however, the Amendment is estimated to increase the administrative costs for small importers by $61,577 (annualized average administrative cost), or approximately $288 per business, and increase the administrative burden for small manufacturers of affected products by $7,779 (annualized average administrative cost), or $12 per business. The estimated impacts on small businesses are presented in Table 4.

NRCan held discussions with the Canadian Federation of Independent Business, an organization representing the interests of small, independent businesses to better understand the potential impacts of the amendments to the Regulations. The organization indicated that the main challenge for these companies results from a lack of awareness of the new requirements and when they come into force. To mitigate this challenge, NRCan intends to undertake supplemental outreach activities specific to the Amendment to educate importers and mitigate the risk that goods are refused entry into Canada due to the unintentional omission of data or information.

Information obtained during pre-consultations indicates that seven small Canadian manufacturers may be impacted by the Amendment. The majority of these are not expected to face incremental costs, as they already manufacture compliant products and are demonstrating compliance with similar requirements already in force in other jurisdictions. Small manufacturers that are expected to assume incremental costs have been engaged in consultations, but have not raised any compliance issues associated with the size of their respective companies.

Table 4: Small business lens summary

Small Business Lens Summary

Number of small businesses impacted

869

Number of years

10

Base year for costing

2012

Administrative Burden

Annualized Value ($)

Present
Value

Submitting import reports

$61,577

$432,489

Submitting efficiency reports

$7,779

$54,639

Total cost (all impacted small businesses)

$69,356

$487,128

Cost per impacted small business

$80

$561

Note: Numbers may not add up to totals due to rounding.

Consultation

Pre-consultation summary

Stakeholders footnote 30 were informed of the changes being considered in the Amendment and were provided opportunities to comment at several points since 2016. These consultations evolved with time, and the content of the Amendment was modified accordingly. The following outlines the key materials used to communicate details to the stakeholder community.

All the documents mentioned above were distributed to stakeholders via targeted emails. Many of these individuals and organizations in turn forwarded the information to provide access to a larger audience of stakeholders.

NRCan also has ongoing activities that provide additional opportunities to gather feedback from stakeholders and to inform them.

Canada Gazette, Part I, consultation

The Amendment was pre-published in the Canada Gazette, Part I, on December 8, 2018. The following outlines the key consultation activities that NRCan undertook during the 45-day comment period:

Canada Gazette, Part I, consultation — 45-day comment period

More than 6 300 stakeholders representing industry/retail associations, manufacturers/suppliers, certification bodies, standards development committees, utilities, general interest organizations and governments were solicited for comments. NRCan received written submissions from 13 unique organizations during the 45-day period: two from energy efficiency alliances, four from industry associations, and seven from individual manufacturers. The submissions included requests for clarification, comments generally expressing support to align with the United States, and a few concerns about the regulatory text and its implications for specific products or issues.

The following paragraphs summarize the major comments and topics of clarification raised by stakeholders during the comment period and NRCan’s views on each of them. No substantive comments were received for miscellaneous refrigeration products and refrigerated beverage vending machines.

Comments that apply to a few products

Third-party verification

Stakeholders commented on third-party verification requirements walk-in refrigeration systems and clean water pumps. For both product categories, stakeholders requested the removal of third-party verification requirements.

NRCan is maintaining third-party verification as the means of assessing compliance for all products. Third-party verification provides a level of independence, transparency and credibility to the regulatory program. By requiring verification from a certification body accredited by the Standards Council of Canada, manufacturers and consumers are assured of a level playing field, in that all products are treated with the same level of scrutiny and are assessed the same way. The added costs of verification requirements is not included in the analysis because they are confidential business costs that vary based on business relationships. However, they are estimated to be less than 10% of the total compliance costs.

To follow are two product-specific issues related to the implementation of third-party verification.

Issue: Availability of verification programs for walk-in refrigeration systems and clean water pumps

Issue: Burden and costs for clean water pumps

Issue: Use of mathematical modelling to verify performance

Product-specific comments

Ceiling fans

Issue: Repeatability of the testing standard

Issue: Early adoption

Walk-in refrigeration systems

Stakeholders expressed support to align MEPS and testing standards with the United States but provides specific comments on the following:

Issue: Testing standard

Issue: MEPS level for fan motors operating at 575 volts

Single package vertical air conditioners and heat pumps

Issue: Compliance with the cumulative requirements

Portable air conditioners

Issue: Lack of published standards in the United States

Issue: Cost of verification

Issue: Delay the date of manufacture for compliance

Chillers

Issue: Renaming of efficiency information to be reported

Central air conditioners and heat pumps

Comments received reflect general support for the Canada Gazette, Part I, proposal.

Regulatory cooperation

In August 2014, NRCan and the U.S. Department of Energy established a goal of aligning new and updated energy efficiency standards and testing standards for energy-using equipment through enhanced information sharing and cooperative development and implementation, to the extent practicable and permitted by law. This included a commitment to annually share work plans for energy efficiency and testing standards, develop guidelines for frequency of interaction and information sharing (e.g. test data, market analyses), mutually participate in the process to establish standards and testing requirements and leverage multilateral initiatives to advance energy efficiency objectives. footnote 31 The Amendment is consistent with the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs regarding the Canada–United States Regulatory Cooperation Council, signed in June 2018. The Amendment seeks to foster alignment of federal regulations where feasible and appropriate.

In August 2016, federal, provincial and territorial energy ministers published a framework and action plan for energy efficiency standards under the Energy and Mines Ministers’ Conference. The framework outlines an approach by which provinces and territories collaborate to achieve greater alignment of energy efficiency standards. The Amendment will reduce regulatory differences that exist between federal and provincial regulations by adding products to the Regulations that would otherwise be only regulated in one or a few provinces.

Rationale

The Amendment will benefit Canadians by reducing GHG emissions and energy consumption in homes and buildings, and removing unnecessary regulatory differences between Canada and the United States.

According to the International Energy Agency, policies and programs that address energy efficiency are the most cost-effective way to lower GHG emissions and could complement carbon pricing schemes as an overall strategy to effectively achieve climate change policy objectives. footnote 32 In the absence of a regulatory approach, a market for high energy consuming products would continue. Consumers who purchase such products could be motivated by lower purchase costs even though they would pay higher operational costs over the life of the product. The analysis of the Amendment has shown that new or more stringent MEPS will generate reductions in GHG emissions and energy consumption. The associated energy savings would generate net monetary benefits for Canadian consumers. The analysis has shown that the costs of technologies that would be required to bring low-efficiency products into compliance with the MEPS are outweighed by the overall benefits.

The development of the Amendment was informed by stakeholder views. Industry supports an approach that is aligned with that of the United States when possible, since most product models are designed to serve a Canada–United States market. The Amendment is supported by provincial and territorial governments, as its development was informed by work conducted under the framework released by the Energy and Mines Ministers’ Conference in 2016 to achieve greater alignment on energy efficiency standards.

Prescribed MEPS are a proven cost-effective approach to achieving reductions in GHG emissions and energy consumption. The Energy Efficiency Regulations were first introduced in 1995 and have been amended 14 times to increase the stringency of existing MEPS and introduce MEPS for new energy-using products. Through the use of third-party verification and regular post-market compliance activities, a high compliance rate with regulated requirements has been observed. This provides confidence that estimated outcomes are being achieved and that Canadians are experiencing the associated benefits.

Implementation, enforcement and service standards

The Amendment will come into force six months after the date of publication in the Canada Gazette, Part II, except for two provisions correcting a reference for room air conditioner which will come into force on the date on which the Amendment is registered.

The requirements will apply to the prescribed products based on their date of manufacture or import or interprovincial shipment of the product.

The compliance and enforcement procedures already in place for all products prescribed under the Regulations will continue to be used following the coming into force of this Amendment. The main features of this system are as follows.

Verification marking and energy efficiency reporting

For products prescribed under the Regulations, NRCan employs a third-party verification system using the services of certification bodies accredited by the Standards Council of Canada. Verified energy performance data is submitted to NRCan by the dealer in an energy efficiency report as specified in the Regulations. This is required once for each product model before first importation or interprovincial shipment.

Import reporting and monitoring

NRCan procedures, already in place, for the collection of information for commercial imports of prescribed products will apply to products affected by the Regulations. These procedures involve cross-checking the required import data received from customs release documents with the energy efficiency reports that dealers have submitted to NRCan. This cross-checking ensures that the compliance of regulated products imported into Canada can be verified.

The Regulations will continue to require dealers of prescribed products to provide the information needed for customs monitoring.

Direct fieldwork: market survey and product testing

In addition to ongoing compliance and marketplace monitoring activities, NRCan surveys and tests products in the context of monitoring compliance outcomes with product-specific compliance audits. Depending on the product, in-store audits and/or testing of products are also conducted.

NRCan also conducts product testing on a complaint-driven basis. The market is highly competitive and suppliers are cognizant of performance claims made by their competitors. Challenge procedures by which performance claims can be questioned exist in all verification programs.

Performance measurement and evaluation

The desired outcomes of the Regulations are presented in the following table along with the information that will be tracked to measure performance.

Table 5: Measuring performance of the Regulations

Outcome

Indicators

Information to Measure Performance

GHG emissions are reduced to contribute to Canada’s goal to reduce GHG emissions by at least 30% below 2005 levels by 2030.

Percentage of product models that meet MEPS
  • Energy efficiency reports
  • Import reports
  • Market data (shipments, trends)
  • Lab testing
  • Emission factors
  • Energy prices

Canadians save money by purchasing higher efficiency product models that have lower costs over their lifetime.

Businesses using regulated equipment save money that can lead to increased productivity and competitiveness.

Performance will be monitored through a combination of equipment-specific compliance reporting, supported by third-party verification of energy efficiency performance, and ongoing collection of market data to assess broader trends affecting outcomes.

Information collected on the energy efficiency performance of regulated products indicates both GHG emission impacts and consumer savings, since both are calculated as a function of changes in the amount of energy consumed by these products. footnote 33

A high compliance rate with the Regulations will be achieved through support from manufacturers, third-party verification, customs monitoring, cooperation with regulating provinces, communication activities, market surveys, and product testing, as required.

The standards contained in the Amendment are being implemented under the federal energy efficiency equipment standards and labelling program. Detailed accounts of progress towards achieving the objectives of this initiative will be found in departmental business plans, reports on plans and priorities, and the Report to Parliament under the Energy Efficiency Act.

Contact

Jamie Hulan
Director
Equipment Division
Office of Energy Efficiency
Natural Resources Canada
930 Carling Avenue, Building 3, 1st Floor
Ottawa, Ontario
K1A 0Y3
Telephone: 613‑996‑4359
Fax: 613‑947‑5286
Email: nrcan.equipment-equipement.rncan@Canada.ca