Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17): SOR/2022-265

Canada Gazette, Part II, Volume 156, Number 26

Registration
SOR/2022-265 December 7, 2022

ENERGY EFFICIENCY ACT

P.C. 2022-1309 December 7, 2022

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 17).

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17)

Amendments

1 Subsection 1(3) of the Energy Efficiency Regulations, 2016 ^{footnote 1} is replaced by the following:

Incorporated standards

(3) In these Regulations, a reference to an AHRI, ANSI, ASHRAE, CGA, CIE, CSA, IES or NEMA MG-1 standard is to be read as a reference to the standard as amended from time to time.

Exception — test procedure waivers

(4) In these Regulations, a reference to a testing standard that is incorporated by reference does not include any test procedure waiver that may be set out in that standard.

2 The Regulations are amended by adding the following after section 11:

Specified Energy-Using Products

Subsection 20.1(2) of Act

11.1 The following energy-using products are specified for the purpose of subsection 20.1(2) of the Act:

(a) clothes dryers;
(b) clothes washers;
(c) integrated clothes washer-dryers;
(d) dishwashers;
(e) refrigerators and combination refrigerator-freezers;
(f) freezers;
(g) gas ranges;
(h) dehumidifiers;
(i) microwave ovens;
(j) miscellaneous refrigeration products;
(k) ceiling fans;
(l) room air conditioners;
(m) large air conditioners;
(n) packaged terminal air conditioners;
(o) single package central air conditioners;
(p) single package vertical air conditioners;
(q) split system central air conditioners;
(r) portable air conditioners;
(s) large heat pumps;
(t) packaged terminal heat pumps;
(u) single package central heat pumps;
(v) single package vertical heat pumps;
(w) split system central heat pumps;
(x) gas furnaces;
(y) oil-fired furnaces;
(z) electric furnaces;
(z.01) gas boilers;
(z.02) oil-fired boilers;
(z.03) electric boilers;
(z.04) gas-fired storage water heaters;
(z.05) oil-fired water heaters;
(z.06) electric water heaters;
(z.07) gas-fired instantaneous water heaters;
(z.08) general service lamps;
(z.09) modified spectrum incandescent lamps;
(z.10) general service incandescent reflector lamps;
(z.11) general service fluorescent lamps;
(z.12) fluorescent lamp ballasts;
(z.13) metal halide lamp ballasts;
(z.14) torchieres;
(z.15) ceiling fan light kits;
(z.16) exit signs;
(z.17) traffic signal modules;
(z.18) pedestrian modules;
(z.19) external power supplies;
(z.20) battery chargers;
(z.21) commercial refrigerators;
(z.22) commercial refrigerator-freezers;
(z.23) commercial freezers;
(z.24) refrigerated beverage vending machines;
(z.25) snack and refrigerated beverage vending machines;
(z.26) ice-makers;
(z.27) walk-in door assemblies;
(z.28) walk-in panels;
(z.29) walk-in refrigeration systems;
(z.30) dry-type transformers;
(z.31) electric motors;
(z.32) small electric motors;
(z.33) commercial pre-rinse spray valves; and
(z.34) clean water pumps.

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

space-constrained,

with respect to a single package central air conditioner or a split system central air conditioner, means one that

(a) has a cooling capacity that is less than or equal to 8.79 kW (30,000 Btu/h); and
(b) has an outdoor or indoor unit that has an overall displacement or at least two overall exterior dimensions that
- (i) are substantially smaller than those of other units of a similar cooling capacity that are usually installed in single family homes, and
- (ii) if increased, would result in a considerable increase in the usual cost of installation or in a significant loss in the utility of the product to the consumer. (à espace restreint)

10 C.F.R. Appendix M1

means Appendix M1 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 M1 10 C.F.R.)

4 The Regulations are amended by adding the following after section 107:

Type

107.1 For the purposes of these Regulations, a central air conditioner manufactured on or after January 1, 2023 is one of the following types:

(a) single package, other than space-constrained;
(b) space-constrained single package;
(c) split system, other than space-constrained or small-duct and high-velocity;
(d) small-duct and high-velocity split-system; or
(e) space-constrained split-system.

5 The definition through-the-wall in section 124 of the Regulations is replaced by the following:

through-the-wall: means, in respect of a single package central air conditioner, one that has a cooling capacity less than or equal to 8.79 kW (30,000 Btu/h), is designed to be installed through an exterior wall and is manufactured prior to January 1, 2023. (mural)

6 Tables 1 and 2 to section 126 of the Regulations are replaced by the following:

TABLE 1
Item	Column 1 Energy-using Product	Column 2 Testing 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 C656-14 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 February 3, 1995 and before January 1, 2023
2	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 February 3, 1995 and before January 1, 2023
3	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	Seasonal energy efficiency ratio ≥ 12.0 Off mode power consumption ≤ 30 W	On or after February 3, 1995 and before January 1, 2023
4	Single package central air conditioners, other than those that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 13.4 Off mode power consumption ≤ 30 W	On or after January 1, 2023
5	Single package central air conditioners that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 11.7 Off mode power consumption ≤ 30 W	On or after January 1, 2023

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing 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 C656-14	Seasonal energy efficiency ratio ≥ 14.0	On or after February 3, 1995 and before January 1, 2023
2	Single package central air conditioners, other than those that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0	On or after January 1, 2023
3	Single package central air conditioners that are through-the-wall	CSA C656-05	Seasonal energy efficiency ratio ≥ 12.0	On or after February 3, 1995 and before January 1, 2023
4	Single package central air conditioners that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after January 1, 2023
5	Single package central air conditioners that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after January 1, 2017 and before January 1, 2023

7 The table to section 127 of the Regulations is replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1	Single package central air conditioners that are single-phase, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2023	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, in watts; and (e) phase of electric current.
2	Single package central air conditioners that are three-phase, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2023	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.
3	Single package central air conditioners that are single-phase, through-the-wall and manufactured on or after February 3, 1995 and before January 1, 2023	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, in watts; and (e) phase of electric current.
4	Single package central air conditioners that are three-phase, through-the-wall and manufactured on or after February 3, 1995 and before January 1, 2023	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.
5	Single package central air conditioners that are three-phase and manufactured on or after January 1, 2023	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.
6	Single package central air conditioners that are single-phase and manufactured on or after January 1, 2023	10 C.F.R. Appendix M1 for information set out in paragraphs (b) to (d)	(a) type; (b) cooling capacity in kW (Btu/h); (c) seasonal energy efficiency ratio 2; (d) off mode power consumption, in watts; and (e) phase of electric current.

8 The heading of Subdivision F of Division 2 of Part 2 of the English version of the Regulations is replaced by the following:

Split System Central Air Conditioners

9 (1) The definition split-system central air conditioner in section 132 of the English version of the Regulations is repealed.

(2) Section 132 of the English version of the Regulations is amended by adding the following in alphabetical order:

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

10 Tables 1 and 2 to section 134 of the Regulations are replaced by the following:

TABLE 1
Item	Column 1 Energy-using Product	Column 2 Testing 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 C656-14 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 February 3, 1995 and before January 1, 2023
2	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 February 3, 1995 and before January 1, 2023
3	Split system central air conditioners, other than those that are space-constrained or small-duct and high-velocity	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 13.4 Off mode power consumption ≤ 30 W	On or after January 1, 2023
4	Split system central air conditioners that are small-duct and high-velocity	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 12.0 Off mode power consumption ≤ 30 W	On or after January 1, 2023
5	Split system central air conditioners that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 11.7 Off mode power consumption ≤ 30 W	On or after January 1, 2023

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing 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 C656-14	Seasonal energy efficiency ratio ≥ 13.0	On or after February 3, 1995
2	Split system central air conditioners that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after February 3, 1995

11 The table to section 135 of the Regulations is replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1	Split system central air conditioners that are single-phase and manufactured on or after February 3, 1995 and before January 1, 2023	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, in watts; and (e) phase of electric current.
2	Split system central air conditioners that are three-phase and manufactured on or after February 3, 1995	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.
3	Split system central air conditioners that are single-phase and manufactured on or after January 1, 2023	10 C.F.R. Appendix M1 for information set out in paragraphs (b) to (d)	(a) type; (b) cooling capacity in kW (Btu/h); (c) seasonal energy efficiency ratio 2; (d) off mode power consumption, in watts; and (e) phase of electric current.

12 (1) The portion of the definition small-duct and high-velocity in section 186 of the Regulations before paragraph (a) is replaced by the following:

small-duct and high-velocity: means, with respect to a split system central heat pump or a single package central heat pump, one that has an indoor blower and coil combination that

(2) Section 186 of the Regulations is amended by adding the following in alphabetical order:

space-constrained,

with respect to a single package central heat pump or a split system central heat pump, means one that

(a) has a cooling capacity that is less than or equal to 8.79 kW (30,000 Btu/h); and
(b) has an outdoor or indoor unit that has an overall displacement or at least two overall exterior dimensions that
- (i) are substantially smaller than those of other units of a similar cooling capacity that are usually installed in single family homes, and
- (ii) if increased, would result in a considerable increase in the usual cost of installation or in a significant loss in the utility of the product to the consumer. (à espace restreint)

10 C.F.R. Appendix M1

13 The Regulations are amended by adding the following after section 186:

Type

186.1 For the purposes of these Regulations, a central heat pump manufactured on or after January 1, 2023 is one of the following types:

(a) single package, other than space-constrained;
(b) space-constrained single package;
(c) split system, other than space-constrained or small-duct and high-velocity;
(d) small-duct and high-velocity split-system; or
(e) space-constrained split-system.

14 The heading of Subdivision E of Division 3 of Part 2 of the Regulations is replaced by the following:

Single Package Central Heat Pumps

15 (1) The definition single package heat pump in section 203 of the Regulations is repealed.

(2) The definition through-the-wall in section 203 of the Regulations is replaced by the following:

through-the-wall: means, in respect of a single package central heat pump, one that has a cooling capacity less than or equal to 8.79 kW (30,000 Btu/h), that is designed to be installed through an exterior wall and that is manufactured prior to January 1, 2023. (murale)

(3) Section 203 of the Regulations is amended by adding the following in alphabetical order:

single package central heat pump: means a single-phase or three-phase air-to-air central heat pump that is a single package unit and that has a cooling or heating capacity of less than 19 kW (65,000 Btu/h), but does not include a single package vertical heat pump. (thermopompe centrale monobloc)

16 (1) Subsection 204(1) of the Regulations is replaced by the following:

Energy-using product

204 (1) A single package central heat pump is prescribed as an energy-using product.

(2) Subsection 204(2) of the English version of the Regulations is replaced by the following:

Limit

(2) However, for the purposes of sections 4, 5 and 205, a single package central heat pump is not considered to be an energy-using product unless it is manufactured on or after February 3, 1995.

17 Sections 205 and 206 of the Regulations are 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 single package central 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 central heat pumps described in column 1 that are manufactured during the periods set out in column 4.

Testing standard

(2) A single package central heat pump 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 single package central heat pump as defined in section 203.

TABLE 1
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Single package central 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 February 3, 1995 and before January 1, 2023
2	Single package central 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 February 3, 1995 and before January 1, 2023
3	Single package central 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 February 3, 1995 and before January 1, 2023
4	Single package central heat pumps, other than those that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 13.4 Heating seasonal performance factor 2 (Region V) ≥ 5.4 Off mode power consumption ≤ 33 W	On or after January 1, 2023 and before January 1, 2025
5	Single package central heat pumps that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 11.9 Heating seasonal performance factor 2 (Region V) ≥ 5.0 Off mode power consumption ≤ 33 W	On or after January 1, 2023 and before January 1, 2025
6	Single package central heat pumps, other than those that are space-constrained	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F)	Seasonal energy efficiency ratio 2 ≥ 13.4 Heating seasonal performance factor 2 (Region V) ≥ 5.4 Off mode power consumption ≤ 33 W	On or after January 1, 2025
7	Single package central heat pumps that are space-constrained	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F)	Seasonal energy efficiency ratio 2 ≥ 11.9 Heating seasonal performance factor 2 (Region V) ≥ 5.0 Off mode power consumption ≤ 33 W	On or after January 1, 2025

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Single package central heat pumps, other than those that are through-the-wall or small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0 Heating seasonal performance factor (Region V) ≥ 7.0	On or after February 3, 1995 and before January 1, 2023
2	Single package central heat pumps, other than those that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0 Heating seasonal performance factor (Region V) ≥ 7.0	On or after January 1, 2023
3	Single package central 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 February 3, 1995 and before January 1, 2023
4	Single package central heat pumps that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.4	On or after January 1, 2023
5	Single package central heat pumps that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.3	On or after February 3, 1995 and before January 1, 2023

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 central 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 Testing Standard	Column 3 Information
1	Single package central heat pumps that are single-phase, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2023	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, in watts; and (g) phase of electric current.
2	Single package central heat pumps that are three-phase, other than those that are through-the-wall, manufactured on or after February 3, 1995 and before January 1, 2023	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.
3	Single package central heat pumps that are single-phase, through-the-wall and manufactured on or after February 3, 1995 and before January 1, 2023	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, in watts; and (g) phase of electric current.
4	Single package central heat pumps that are three-phase, through-the-wall and manufactured on or after February 3, 1995 and before January 1, 2023	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.
5	Single package central heat pumps that are single-phase and manufactured on or after January 1, 2023 and before January 1, 2025	10 C.F.R. Appendix M1 for information set out in paragraphs (b) to (i)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) information that indicates whether the results from the very low temperature heating test (H4), if conducted at -15°C (5°F), was included in the calculation of the heating seasonal performance factor 2 for Region V; (f) heating seasonal performance factor 2 for Region V; (g) heating capacity at -15°C (5°F) in kW (Btu/h), if the very low temperature heating test (H4) was conducted at -15°C (5°F); (h) coefficient of performance at -15°C (5°F), if the very low temperature heating test (H4) was conducted at -15°C (5°F); (i) off mode power consumption, in watts; and (j) phase of electric current.
6	Single package central heat pumps that are single-phase and manufactured on or after January 1, 2025	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F) for information set out in paragraphs (b) to (h)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) heating seasonal performance factor 2 for Region V; (f) heating capacity at -15°C (5°F) in kW (Btu/h); (g) coefficient of performance at -15°C (5°F); (h) off mode power consumption, in watts; and (i) phase of electric current.
7	Single package central heat pumps that are three-phase and manufactured on or after January 1, 2023	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 (f) phase of electric current.

18 The heading of Subdivision G of Division 3 of Part 2 of the Regulations is replaced by the following:

Split System Central Heat Pumps

19 (1) The definition split-system heat pump in section 211 of the Regulations is repealed.

(2) Section 211 of the Regulations is amended by adding the following in alphabetical order:

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

20 (1) Subsection 212(1) of the Regulations is replaced by the following:

Energy-using product

212 (1) A split system central heat pump is prescribed as an energy-using product.

(2) Subsection 212(2) of the English version of the Regulations is replaced by the following:

Limit

(2) However, for the purposes of sections 4, 5 and 213, a split system central heat pump is not considered to be an energy-using product unless it is manufactured on or after December 31, 1998.

21 Sections 213 and 214 of the Regulations are 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 central 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 central heat pumps described in column 1 that are manufactured during the periods set out in column 4.

Testing standard

(2) A split system central heat pump 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 split system central heat pump as defined in section 211.

TABLE 1
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Split system central 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 December 31, 1998 and before January 1, 2023
2	Split system central 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 December 31, 1998 and before January 1, 2023
3	Split system central heat pumps, other than those that are small-duct and high-velocity or space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 14.3 Heating seasonal performance factor 2 (Region V) ≥ 6.0 Off mode power consumption ≤ 33 W	On or after January 1, 2023 and before January 1, 2025
4	Split system central heat pumps that are small-duct and high-velocity	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 12.0 Heating seasonal performance factor 2 (Region V) ≥ 4.9 Off mode power consumption ≤ 30 W	On or after January 1, 2023 and before January 1, 2025
5	Split system central heat pumps that are space-constrained	10 C.F.R. Appendix M1	Seasonal energy efficiency ratio 2 ≥ 11.9 Heating seasonal performance factor 2 (Region V) ≥ 5.0 Off mode power consumption ≤ 33 W	On or after January 1, 2023 and before January 1, 2025
6	Split system central heat pumps, other than those that are small-duct and high-velocity or space-constrained	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F)	Seasonal energy efficiency ratio 2 ≥ 14.3 Heating seasonal performance factor 2 (Region V) ≥ 6.0 Off mode power consumption ≤ 33 W	On or after January 1, 2025
7	Split system central heat pumps that are small-duct and high-velocity	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F)	Seasonal energy efficiency ratio 2 ≥ 12.0 Heating seasonal performance factor 2 (Region V) ≥ 4.9 Off mode power consumption ≤ 30 W	On or after January 1, 2025
8	Split system central heat pumps that are space-constrained	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F)	Seasonal energy efficiency ratio 2 ≥ 11.9 Heating seasonal performance factor 2 (Region V) ≥ 5.0 Off mode power consumption ≤ 33 W	On or after January 1, 2025

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Split system central heat pumps, other than those that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0 Heating seasonal performance factor (Region V) ≥ 7.1	On or after December 31, 1998
2	Split system central heat pumps that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.3	On or after December 31, 1998

Information

214 For the purposes 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 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 Testing Standard	Column 3 Information
1	Split system central heat pumps that are single-phase and manufactured on or after December 31, 1998 and before January 1, 2023	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, in watts; and (g) phase of electric current.
2	Split system central heat pumps that are single-phase and manufactured on or after January 1, 2023 and before January 1, 2025	10 C.F.R. Appendix M1 for information set out in paragraphs (b) to (i)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) information that indicates whether the results from the very low temperature heating test (H4), if conducted at -15°C (5°F), was included in the calculation of the heating seasonal performance factor 2 for Region V; (f) heating seasonal performance factor 2 for Region V; (g) heating capacity at -15°C (5°F) in kW (Btu/h), if the very low temperature heating test (H4) was conducted at -15°C (5°F); (h) coefficient of performance at -15°C (5°F), if the very low temperature heating test (H4) was conducted at -15°C (5°F); (i) off mode power consumption, in watts; and (j) phase of electric current.
3	Split system central heat pumps that are single-phase and manufactured on or after January 1, 2025	10 C.F.R. Appendix M1 with the very low temperature heating test (H4) conducted at -15°C (5°F) for information set out in paragraphs (b) to (h)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) heating seasonal performance factor 2 for Region V; (f) heating capacity at -15°C (5°F) in kW (Btu/h); (g) coefficient of performance at -15°C (5°F); (h) off mode power consumption, in watts; and (i) phase of electric current.
4	Split system central heat pumps that are three-phase and manufactured on or after December 31, 1998	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; (f) phase of electric current.

22 Paragraphs 370.1(a) and (b) of the Regulations are replaced by the following:

(a) household, if it has an input rate of less than or equal to 12 kW (40,982 Btu/h); or
(b) commercial, if it is has an input rate of greater than 12 kW (40,982 Btu/h).

23 Subsection 371(2) of the Regulations is replaced by the following:

Limits

(2) However, an electric water heater is not considered to be an energy-using product

(a) for the purposes of sections 4 and 5, unless it is
- (i) a household electric water heater that is manufactured on or after February 3, 1995, or
- (ii) a commercial electric water heater that is manufactured on or after January 1, 2020; and
(b) for the purposes of section 372, unless it is
- (i) a household electric water heater that is manufactured on or after February 3, 1995,
- (ii) a commercial electric water heater that is manufactured on or after January 1, 2020, or
- (iii) a commercial electric water heater with a V_r that is less than or equal to 530 L (140 US gallons).

24 The table to section 373 of the Regulations is replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1	Household electric water heaters manufactured on or after February 3, 1995	CSA C191-04 for information set out in paragraphs (a) to (c)	(a) V_r; (b) nominal power input of upper and lower elements, in W; (c) standby loss, in W; and (d) cold water inlet configuration, namely, top inlet or bottom inlet.
2	Commercial electric water heaters with a V_r ≤ to 530 L (140 US gallons), manufactured on or after January 1, 2020	10 C.F.R. Appendix B	(a) V_r; (b) V_s; (c) standby loss, in %/hr; and (d) input rate, in kW.
3	Commercial electric water heaters with a V_r > 530 L (140 US gallons), manufactured on or after January 1, 2020	10 C.F.R. Appendix B	(a) V_r; (b) V_s; and (c) input rate, in kW.

25 (1) Subsections 376(2) to (4) of the Regulations are replaced by the following:

Testing standard — household

(2) A household gas-fired storage water heater 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 of Table 1 that are applicable to a gas-fired storage water heater as defined in section 374.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 3 of Table 2 to this section apply to commercial gas-fired storage water heaters described in column 1 that are manufactured on or after July 1, 2023.

Testing standard — commercial

(4) A commercial gas-fired storage water heater 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 of Table 2 that are applicable to a gas-fired storage water heater as defined in section 374.

(2) The portion of item 6 of Table 1 to section 376 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
6	Household gas-fired storage water heaters that have a first-hour rating of ≥ 284 L (75 US gallons)

(3) Table 2 to section 376 of the Regulations is replaced by the following:

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard
1	Commercial gas-fired storage water heaters, other than replacement units, that have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a V_r of ≤ 454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180°F)	CSA P.3-15	Uniform energy factor ≥ 0.8107-0.00021 V_s
2	Commercial gas-fired storage water heaters that are replacement units, have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a V_r of ≤ 454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180°F)	CSA P.3-15	Uniform energy factor ≥ 0.6597-0.00024 V_s
3	Commercial gas-fired storage water heaters, other than replacement units, that have a V_r of > 530 L (140 US gallons)	10 C.F.R. Appendix A	Thermal efficiency ≥ 90%
4	Commercial gas-fired storage water heaters that are replacement units and that have a V_r of > 530 L (140 US gallons)	10 C.F.R. Appendix A	Thermal efficiency ≥ 80%
5	Commercial gas-fired storage water heaters, other than those described in items 1 and 3, that are not replacement units	10 C.F.R. Appendix A	Thermal efficiency ≥ 90% Standby loss ≤ 0.84 (1.25 Q + 16.57√V_s)
6	Commercial gas-fired storage water heaters, other than those described in items 2 and 4, that are replacement units	10 C.F.R. Appendix A	Thermal efficiency ≥ 80% Standby loss ≤ 1.25 Q + 16.57√V_s

26 The table to section 377 of the Regulations is replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1	Household gas-fired storage water heaters that are manufactured on or after February 3, 1995 and before January 1, 2018	CSA P.3-04	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) type of fuel used; (d) annual energy consumption, in kJ; (e) first-hour rating, in L; (f) V_r; and (g) energy factor.
2	Household gas-fired storage water heaters that are manufactured on or after January 1, 2018	CSA P.3-04, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 376 CSA P.3-15, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 376	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) type of fuel used; (d) annual energy consumption, in kJ; (e) first-hour rating, in L; (f) V_r; (g) energy factor, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 376; and (h) uniform energy factor and V_s, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 376.
3	Commercial gas-fired storage water heaters that have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a V_r of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after July 1, 2023	CSA P.3-15	(a) uniform energy factor; (b) V_r; (c) V_s; (d) input rate, in kW (Btu/h); (e) type of fuel used; and (f) information that indicates whether the product is a replacement unit.
4	Commercial gas-fired storage water heaters with a V_r of > 530 L (140 US gallons) that are manufactured on or after July 1, 2023	10 C.F.R. Appendix A	(a) thermal efficiency; (b) V_r; (c) V_s; (d) input rate, in kW (Btu/h); (e) type of fuel used; and (f) information that indicates whether the product is a replacement unit.
5	Commercial gas-fired storage water heaters, other than those described in items 3 and 4, that are manufactured on or after July 1, 2023	10 C.F.R. Appendix A	(a) thermal efficiency; (b) standby loss, in W; (c) V_r; (d) V_s; (e) input rate, in kW (Btu/h); (f) type of fuel used; and (g) information that indicates whether the product is a replacement unit.

27 (1) Subsection 380(4) of the Regulations is replaced by the following:

Testing standard — commercial

(4) A commercial oil-fired water heater 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 of Table 2 that are applicable to an oil-fired water heater as defined in section 378.

(2) The portion of item 6 of Table 1 to section 380 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
6	Household oil-fired water heaters that have a first-hour rating of ≥ 284 L (75 US gallons)

(3) Table 2 to section 380 of the Regulations is replaced by the following:

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard
1	Commercial oil-fired water heaters that have an input rate of > 30.5 kW (105,000 Btu/h) but ≤ 40.99 kW (140,000 Btu/h), have a V_r of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020	CSA P.3-15	Uniform energy factor ≥ 0.6740 - 0.00035 V_s
2	Commercial oil-fired water heaters with a V_r of > 530 L (140 US gallons) that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	Thermal efficiency ≥ 80%
3	Commercial oil-fired water heaters, other than those described in items 1 and 2, that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	Thermal efficiency ≥ 80% Standby loss ≤ 1.25 Q + 16.57√V_s

28 (1) The portion of section 381 of the English version of the Regulations before the table is replaced by the following:

Information

381 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 and provided to the Minister in respect of an oil-fired water heater described in column 1.

(2) Items 3 and 4 of the table to section 381 of the Regulations are replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
3	Commercial oil-fired water heaters that have an input rate of > 30.5 kW (105,000 Btu/h) but ≤ 40.99 kW (140,000 Btu/h), have a V_r of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020	CSA P.3-15	(a) input rate, in kW (Btu/h); b) uniform energy factor; (c) V_r; and (d) V_s.
4	Commercial oil-fired water heaters with a V_r of > 530 L (140 US gallons) that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	(a) input rate, in kW (Btu/h); b) thermal efficiency; (c) V_r; and (d) V_s.
5	Commercial oil-fired water heaters, other than those described in items 3 and 4, that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	(a) input rate, in kW (Btu/h); (b) thermal efficiency; (c) V_r; (d) V_s; and (e) standby loss, in W.

29 Paragraph (b) of the definition lampe à spectre modifié in section 424 of the French version of the Regulations is replaced by the following:

b) lorsqu’elle est utilisée à ses tension et puissance nominales, présente sur le diagramme de chromaticité 1931 — décrit à la norme CIE 15 — un point de couleur qui se situe sous le lieu des corps noirs et à au moins quatre écarts de chromaticité de MacAdam — tels qu’ils sont définis dans la norme IES LM16 — du point de couleur d’une lampe transparente dotée du même filament et d’une ampoule de même forme et utilisée aux mêmes tension et puissance nominales. (modified spectrum lamp)

30 Paragraph 428(2)(a) of the Regulations is replaced by the following:

(a) the following statements must be displayed on the principal display panel:

“This product is designed for [design voltage] volts. When used on the normal line voltage of 120 volts, the light output and energy efficiency are noticeably reduced. See [appropriate panel] panel for 120-volt rating.”
« Ce produit a été conçu en fonction d’une tension de [tension spécifique] volts. S’il est employé à la tension normale de 120 volts, son flux lumineux et son efficacité énergétique s’en trouveront considérablement réduits. Voir le panneau [panneau en cause] pour les renseignements correspondant à une tension de 120 volts. »;

31 Subsection 449(1) of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix Q means Appendix Q 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 Fluorescent Lamp Ballasts, as amended from time to time. (appendice Q 10 C.F.R.)

32 The portion of items 2 to 10 of the table to section 451 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Standard
2	CSA C654-14 or 10 C.F.R. Appendix Q
3	CSA C654-14 or 10 C.F.R. Appendix Q
4	CSA C654-14 or 10 C.F.R. Appendix Q
5	CSA C654-14 or 10 C.F.R. Appendix Q
6	CSA C654-14 or 10 C.F.R. Appendix Q
7	CSA C654-14 or 10 C.F.R. Appendix Q
8	CSA C654-14 or 10 C.F.R. Appendix Q
9	CSA C654-14 or 10 C.F.R. Appendix Q
10	CSA C654-14 or 10 C.F.R. Appendix Q

33 Paragraph 518(1)(b) of the Regulations is replaced by the following:

(b) if it has integrated solid-state lighting circuitry, the lighting efficacy, expressed in lumens per watt, and the total light output, expressed in lumens;

34 (1) The definitions R-value, walk-in cooler, walk-in door assembly, walk-in freezer, walk-in panel and walk-in refrigeration system in Section 657 of the Regulations are replaced by the following:

R-value: means, in respect of a walk-in panel and a walk-in door assembly, its thermal resistance, expressed in square foot Fahrenheit per Btu/h (ft^{footnote 2}·°F·h/Btu). (valeur-R)
walk-in cooler: means an enclosed storage space that has an area of less than 278.71 m² (3,000 square feet) and is designed to be cooled to temperatures at or above 0°C and to allow a person to enter, but does not include a walk-in cooler that is designed and marketed exclusively for medical, scientific or research purposes. (réfrigérateur-chambre)
walk-in door assembly: means an assembly that is installed, or is designed to be installed, in an opening of an interior or exterior wall of a walk-in cooler or walk-in freezer in order to allow access through the opening or to close it off and that consists of the framing material necessary for its attachment and a moveable door panel, including any glass, door plugs or mullions, but does not include a walk-in door assembly that is designed and marketed exclusively for medical, scientific or research purposes. (assemblage de porte de chambre froide)
walk-in freezer: means an enclosed storage space that has an area of less than 278.71 m² (3000 square feet) and is designed to be cooled to temperatures below 0°C and to allow a person to enter, but does not include a walk-in freezer that is designed and marketed exclusively for medical, scientific or research purposes. (congélateur-chambre)
walk-in panel: means a panel that is installed, or is designed to be installed, as part of the envelope of a walk-in cooler or walk-in freezer, but does not include a walk-in door assembly or a walk-in panel that is designed and marketed exclusively for medical, scientific or research purposes. (panneau de chambre froide)
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 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 or a walk-in refrigeration system that is designed and marketed exclusively for medical, scientific or research purposes. (système de réfrigération de chambre froide)

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

A_dd

represents, with respect to display door assemblies, the surface area in m² (square feet). (A_pp)

A_nd

represents, with respect to a door assembly other than a display door assembly, the surface area in m² (square feet). (A_pa)

envelope

means

(a) the portion of a walk-in cooler or walk-in freezer that isolates the interior, refrigerated environment from the ambient, external environment; and
(b) all energy-consuming components of the walk-in cooler or walk-in freezer that are not part of its refrigeration system. (enveloppe)

Net Refrigeration Capacity or (q_net)

is the net refrigeration capacity available for space and product cooling. (puissance frigorifique nette ou q_net)

RSI-value

means, in respect of a walk-in panel and a walk-in door assembly, its thermal resistance, in square metre kelvins per watt (m²·K/W). (valeur-RSI)

35 The portion of items 3 to 6 of the table to section 660 of the Regulations in columns 2 and 3 are replaced by the following:
Item	Column 2 Standard	Column 3 Energy Efficiency Standard
3	10 C.F.R. Appendix A for E_daily 10 C.F.R. Appendix B for RSI-value (R-value)	E_daily ≤ 0.4306 × A_nd + 1.9 (0.04 × A_nd + 1.9) RSI-value ≥ 4.40 m²·K/W (25 ft^{footnote 2}·°F·h/Btu)
4	10 C.F.R. Appendix A for E_daily 10 C.F.R. Appendix B for RSI-value (R-value)	E_daily ≤ 1.2917 × A_nd + 5.6 (0.12 × A_nd + 5.6) RSI-value ≥ 5.64 m²·K/W (32 ft^{footnote 2}·°F·h/Btu)
5	10 C.F.R. Appendix A for E_daily 10 C.F.R. Appendix B for RSI-value (R-value)	E_daily ≤ 0.5382 × A_nd + 1.7 (0.05 × A_nd + 1.7) RSI-value ≥ 4.40 m²·K/W (25 ft^{footnote 2}·°F·h/Btu)
6	10 C.F.R. Appendix A for E_daily 10 C.F.R. Appendix B for RSI-value (R-value)	E_daily ≤ 1.5069 × A_nd + 4.8 (0.14 × A_nd + 4.8) RSI-value ≥ 5.64 m²·K/W (32 ft^{footnote 2}·°F·h/Btu)

36 Paragraph 661(d) of the Regulations is replaced by the following:

(d) if the product is a freight door assembly or passage door assembly, its RSI-value (R-value).

37 The portion of items 1 to 3 of the table to section 663 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Energy Efficiency Standard
1	RSI-value ≥ 4.40 m²·K/W (25 ft^{footnote 2}·°F·h/Btu)
2	RSI-value ≥ 5.64 m²·K/W (32 ft^{footnote 2}·°F·h/Btu)
3	RSI-value ≥ 4.93 m²·K/W (28 ft^{footnote 2}·°F·h/Btu)

38 Paragraph 664(a) of the Regulations is replaced by the following:

(a) its RSI-value (R-value),

39 (1) The portion of items 1 to 7 of the table to section 666 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Energy Efficiency Standard
1	Annual walk-in energy factor ≥ 1.644 W-h/W-h (5.61 Btu/W-h)
2	Annual walk-in energy factor ≥ 2.227 W-h/W-h (7.60 Btu/W-h)
3	Annual walk-in energy factor ≥ 9.091 x 10-5 x q_net + 0.530 W-h/W-h (9.091 x 10-5 x q_net+ 1.81 Btu/W-h)
4	Annual walk-in energy factor ≥ 0.703 W-h/W-h (2.40 Btu/W-h)
5	Annual walk-in energy factor ≥ 6.522 x 10-5 x q_net + 0.800 W-h/W-h (6.522 x 10-5 x q_net + 2.73 Btu/W-h)
6	Annual walk-in energy factor ≥ 0.923 W-h/W-h (3.15 Btu/W-h)
7	Annual walk-in energy factor ≥ 2.638 W-h/W-h (9.00 Btu/W-h)

(2) The portion of items 8 and 9 of the table to section 666 of the Regulations in columns 1 and 2 is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
8	Walk-in freezer unit coolers with a fan motor that operates using direct current or has a nominal voltage of not more than 480 V AC and with a net refrigeration capacity of < 4540 W (15,500 Btu/h)	Annual walk-in energy factor ≥ 1.575 x 10-5 x q_net + 1.146 W-h/W-h (1.575 x 10-5 x q_net + 3.91 Btu/W-h)
9	Walk-in freezer unit coolers with a fan motor that operates using direct current or has a nominal voltage of not more than 480 V AC and with a net refrigeration capacity of ≥ 4540 W (15,500 Btu/h)	Annual walk-in energy factor ≥ 1.216 W-h/W-h (4.15 Btu/W-h)

40 The reference “[707 to 748 reserved]” after section 706 of the Regulations is replaced by the following:

[707 to 747 reserved]

41 The Regulations are amended by adding the following after the heading of Division 12 of Part 2:

Definitions

Definitions

748 The following definitions apply in this Division.

CSA C390-10: means the CSA standard CSA C390-10 entitled Test methods, marking requirements, and energy efficiency levels for three-phase induction motors. (CSA C390-10)
IEC 60034-2-1: means the IEC standard CEI/IEC 60034-2-1 entitled Rotating electrical machines – Part 2-1: Standard methods for determining losses and efficiency from tests (excluding machines for traction vehicles), as amended from time to time. (CEI 60034-2-1)
IEEE 112: means the IEEE standard IEEE 112 entitled Standard Test Procedure for Polyphase Induction Motors and Generators, as amended from time to time. (IEEE 112)

42 (1) The definitions CSA C390-10 and IEEE 112-2004 in section 749 of the Regulations are repealed.

(2) The definition NEMA MG-1 in section 749 of the Regulations is replaced by the following:

NEMA MG-1: means the NEMA standard MG 1 entitled NEMA MG 1 Motors and Generators. (NEMA MG-1)

43 (1) The portion of items 1 and 2 of the table to section 751 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Standard
1	CSA C390-10, IEEE 112 or IEC 60034-2-1
2	CSA C390-10, IEEE 112 or IEC 60034-2-1

(2) The portion of item 8 of the table to section 751 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Standard
8	CSA C390-10, IEEE 112 or IEC 60034-2-1

44 The portion of item 2 of the table to section 752 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Standard
2	CSA C390-10, IEEE 112 or IEC 60034-2-1

45 Subparagraphs 755(2)(c)(i) to (iii) of the Regulations are replaced by the following:

(i) if the motor is polyphase and has a nominal output power ≥ 0.18 kW (0.25 horsepower) but ≤ 0.75 kW (1 horsepower), CSA C747-09, IEEE 112 (Test Method A) or IEC 60034-2-1 (Test Method 2-1-1A),
(ii) if the motor is polyphase and has a nominal output power > 0.75 kW (1 horsepower) but ≤ 2.2 kW (3 horsepower), CSA C390-10, IEEE 112 (Test Method B) or IEC 60034-2-1 (Test Method 2-1-1B), or
(iii) if the motor is capacitor-start capacitor-run or capacitor-start induction-run, CSA C747-09, IEEE 114-2010 or IEC 60034-2-1 (Test Method 2-1-1A).

46 Paragraphs 756(2)(a) to (c) of the Regulations are replaced by the following:

(a) if the motor is polyphase and has a nominal output power ≥ 0.18 kW (0.25 horsepower) but ≤ 0.75 kW (1 horsepower), CSA C747-09, IEEE 112 (Test Method A) or IEC 60034-2-1 (Test Method 2-1-1A);
(b) if the motor is polyphase and has a nominal output power > 0.75 kW (1 horsepower) but ≤ 2.2 kW (3 horsepower), CSA C390-10, IEEE 112 (Test Method B) or IEC 60034-2-1 (Test Method 2-1-1B); or
(c) if the motor is capacitor-start capacitor-run or capacitor-start induction-run, CSA C747-09, IEEE 114-2010 or IEC 60034-2-1 (Test Method 2-1-1A).

47 The Regulations are amended by replacing “Standard” with “Testing Standard” in the following provisions:

(a) the heading of column 1 of the table to section 19;
(b) the heading of column 2 of the table to section 20;
(c) the heading of column 2 of the table to section 24;
(d) the heading of column 2 of the table to section 25;
(e) the heading of column 1 of the table to section 30;
(f) the heading of column 2 of the table to section 31;
(g) the heading of column 2 of the table to section 37;
(h) the heading of column 2 of the table to section 38;
(i) the heading of column 2 of the table to section 43;
(j) the heading of column 2 of the table to section 49;
(k) the heading of column 2 of the table to section 63;
(l) the heading of column 2 of the table to section 64;
(m) the heading of column 2 of the table to section 73;
(n) the heading of column 1 of the table to section 112;
(o) the heading of column 2 of the table to section 113;
(p) the heading of column 2 of Tables 1, 2 and 3 to section 118;
(q) the heading of column 2 of the table to section 119;
(r) the heading of column 1 of the table to section 122;
(s) the heading of column 1 of the table to section 142;
(t) the heading of column 2 of the table to section 143;
(u) the heading of column 1 of the table to section 189;
(v) the heading of column 2 of Tables 1 and 2 to section 197;
(w) the heading of column 2 of the table to section 198;
(x) the heading of column 1 of the table to section 201;
(y) the heading of column 2 of the table to section 259;
(z) the heading of column 2 of the table to section 260;
(z.01) the heading of column 1 of the table to section 263;
(z.02) the heading of column 2 of the table to section 264;
(z.03) the heading of column 2 of the table to section 266.1;
(z.04) the heading of column 2 of Table 1 to section 317;
(z.05) the heading of column 2 of the table to section 318;
(z.06) the heading of column 2 of Table 1 to section 321;
(z.07) the heading of column 2 of the table to section 322;
(z.08) the heading of column 2 of the table to section 372;
(z.09) the heading of column 2 of Table 1 to section 376;
(z.10) the heading of column 2 of Table 1 to section 380;
(z.11) the heading of column 2 of the table to section 381;
(z.12) the heading of column 2 of the table to section 385;
(z.13) the heading of column 2 of the table to section 386;
(z.14) the heading of column 2 of the table to section 444;
(z.15) the heading of column 1 of the table to section 447;
(z.16) the heading of column 2 of the table to section 451;
(z.17) the heading of column 2 of the table to section 452;
(z.18) the heading of column 2 of the table to section 517;
(z.19) the heading of column 2 of the table to section 525;
(z.20) the heading of column 2 of the table to section 588;
(z.21) the heading of column 2 of the table to section 589;
(z.22) the heading of column 2 of the table to section 638;
(z.23) the heading of column 2 of the table to section 641;
(z.24) the heading of column 2 of the table to section 642;
(z.25) the heading of column 2 of the table to section 644;
(z.26) the heading of column 2 of the table to section 649;
(z.27) the heading of column 2 of the table to section 655;
(z.28) the heading of column 2 of the table to section 656;
(z.29) the heading of column 2 of the table to section 660;
(z.30) the heading of column 1 of the table to section 705;
(z.31) the heading of column 2 of the table to section 751; and
(z.32) the heading of column 2 of the table to section 752.

Coming into Force

48 (1) Subject to subsection (2), these Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

(2) Sections 1, 2 and 22 to 47 come into force on the day that, in the sixth month after the month in which these Regulations 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.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Canada’s building sector (including homes and commercial and institutional buildings) is a significant contributor to Canada’s total energy consumption and greenhouse gas emissions, especially for space and water heating. Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption and support the goal of net-zero emissions by 2050. Nevertheless, unnecessary regulatory differences across jurisdictions can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. In this context, regulatory actions are necessary at this time to keep pace with changes that have been done in the United States, and to put in place tools that will facilitate maintaining alignment in the future.

Description: The Amendment updates energy efficiency and testing standards for central air conditioners and central heat pumps primarily used in the residential sector to prevent upcoming unnecessary regulatory differences between Canada and the United States. In addition, the Amendment makes other minor changes to currently regulated products to address known issues with Canadian requirements to ensure that the Energy Efficiency Regulations, 2016 (the Regulations) align with the U.S. requirements more clearly where already intended. Finally, the Amendment specifies select energy-using products that are considered already in alignment with another jurisdiction in order for the Minister of Natural Resources (the Minister) to be able to exercise the ministerial regulations authority, at his discretion in the future, to maintain harmonization between requirements set out in another jurisdiction.

Rationale: The Amendment will benefit Canadians by reducing energy consumption and resulting greenhouse gas emissions of products used in homes. Homeowners will benefit from reduced energy costs associated with the use of more efficient technologies. The Amendment will also set out how authorities granted in the last update to Canada’s Energy Efficiency Act will help reduce unintended misalignment with the United States Department of Energy and facilitate future efforts to maintain alignment for products where a requirement (energy efficiency standards, testing standards, or information) is already aligned with that of another jurisdiction.

Throughout the development of the Amendment, stakeholders were provided several opportunities to comment on the changes being considered. Overall, stakeholders are supportive of the Amendment and recognize its potential benefit for consumers, utility programs, and climate change.

The present value of the net benefits of the Amendment is estimated to be about $1.66 billion by 2050, with total benefits exceeding total costs by a ratio of more than 5:1. By 2050, the present value of benefits and costs from the Amendment is estimated to be about $2.04 billion and $382.02 million, respectively. On an annualized average basis, this equates to benefits and costs of about $109 million and $20 million, respectively. The Amendment is estimated to result in a total annual reduction of energy consumption in Canada of about 2.1 petajoules and 0.18 megatonnes of greenhouse gas emission reductions in 2050; and total cumulative energy consumption and greenhouse gas emission reductions of approximately 37.8 petajoules and 3.2 megatonnes of carbon dioxide equivalent by 2050.

The quantified benefits have been calculated as the sum of the energy savings, the benefits of reductions in greenhouse gas emissions over the service life of products shipped by 2050, and the cost savings associated with preventing unnecessary regulatory differences. The quantified costs include incremental technology costs to meet the more stringent standards, and administrative and compliance costs for businesses.

If Canada does not amend the Regulations, select requirements would unintentionally be misaligned with key testing standards from the United States Department of Energy, which could impact cross-border trade, would require companies to test differently for Canada, and ultimately increase costs for citizens, businesses and economies. In addition, in the absence of a regulatory approach, a market for low-efficiency products would continue.

Issues

Canada’s building sector (including homes and commercial and institutional buildings) is a significant contributor to Canada’s total energy consumption and greenhouse gas (GHG) emissions, especially for space and water heating. This sector accounted for almost 18% of national GHG emissions in 2018.^{footnote 2} The levels of GHG emissions in the building sector are largely determined by the energy-using products used. For instance, products that combust fossil fuels to generate heat lead to direct carbon dioxide emissions at the site, while products that consume electricity can contribute to GHG emissions at the point of electricity generation.

Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption, ensure a competitive, more sustainable and resilient economy, and support the goal of net-zero emissions by 2050.

Unnecessary differences across jurisdictions on energy efficiency or testing standards of products can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. While Canada and the United States are currently aligned on energy efficiency and testing standards for central air conditioners and central heat pumps, the United States Department of Energy (U.S. DOE) has finalized new energy efficiency and testing standards set to become effective as of January 1, 2023, and without Canadian regulatory actions now, alignment for these products would not be maintained. As it is currently the intent to be aligned with the United States for various other regulated products, without regulatory actions at this time, alignment for these products would not be maintained.

For products where alignment on energy efficiency standards, testing standards or information to be provided by dealers already exists between Canada and the United States, not specifying the energy-using products to ensure that the Minister can exercise the ministerial regulations authority, an authority recently added under the Energy Efficiency Act, would slow down future regulatory processes aimed at maintaining harmonization with requirements set out in another jurisdiction.^{footnote 3}

Background

In 1992, Parliament passed the Energy Efficiency Act, which 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 prescribed energy efficiency standards.

The Energy Efficiency Regulations came into force in 1995 to reduce energy consumption in Canada, and continue to be a key tool to reduce energy consumption and help reduce GHG emissions. In 2016, the Energy Efficiency Regulations, 2016 (the Regulations) replaced the original Energy Efficiency Regulations to remove references to obsolete and out-of-date standards and improve the organization of the regulatory text, making it easier for stakeholders to find and understand the requirements that apply to them. The Regulations are amended regularly to add or update energy efficiency standards, testing standards, prescribed information and verification requirements for energy-using products used in the residential, commercial, institutional and industrial sectors.

In 2011, the Canada–United States Regulatory Cooperation Council stated in the Joint Action Plan for the Canada–United States Regulatory Cooperation Council that unnecessary regulatory differences and duplicative actions hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses and economies. Since August 2014, with the Canada–United States Regulatory Cooperation Council Joint Forward Plan, Canada and the United States have worked towards aligning new and existing energy efficiency and testing standards for energy-using products where it makes sense, to the extent practicable and permitted by law within the context of the Canada–United States Regulatory Cooperation Council.

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. Canada’s “Build Smart” plan outlined an approach for the Canadian building sector that includes improving energy efficiency for products.^{footnote 4}

In January 2017, the U.S. DOE published in the Federal Register a direct final rule pertaining to residential central air conditioners and central heat pumps, which introduced new testing standards and more stringent energy efficiency standards and associated performance metrics.^{footnote 5} Compliance with the amended standards will be required starting on January 1, 2023.

In 2017, the amendments to the Energy Efficiency Act gave the federal government more tools and greater flexibility to ensure that Canada’s energy efficiency and testing standards can align more effectively with those of trading partners, including the ministerial regulations authority to make technical and administrative changes to regulations to maintain harmonization with another jurisdiction.^{footnote 6}

In June 2018, 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 was signed to move forward on energy efficiency and foster alignment of federal regulations where feasible and appropriate.

In December 2020, the Prime Minister announced Canada’s strengthened climate plan, which aims to make it easier for Canadians to improve the energy efficiency of the places where they live and gather.

In June 2021, Natural Resources Canada (NRCan) and the U.S. DOE signed the Memorandum of Understanding Between the Department of Natural Resources of Canada and the Department of Energy of the United States of America Concerning Cooperation on Energy, which acknowledges that both countries would collaborate on new and updated energy efficiency and testing standards.

In December 2021, the Prime Minister mandated the Minister of Natural Resources to develop and implement a national net-zero emission building strategy. Subsequently, Budget 2022 provided $150 million over five years to support the development of the Canada Green Buildings Strategy, with an aim to enhance building codes, promote the use of lower-carbon construction materials, and increase the climate resilience of buildings.

In March 2022, the 2030 Emissions Reduction Plan was issued, providing $9.1 billion in investments across Canada, including an additional $485.5 million investment into the Canada Greener Homes Loan program. These investments will support the reduction of emissions on a sector-by-sector basis, while simultaneously encouraging economic innovation, and introducing cost savings for Canadian businesses and households.

Regulated energy efficiency standards are one component of Canada’s program to reduce energy consumption and associated GHG emissions. NRCan also administers the ENERGY STAR^® for products program, which sets voluntary specifications for products and identifies the top 15% to 30% of energy efficiency performers with an ENERGY STAR^® symbol, making the choice of energy-efficient products simple for consumers.^{footnote 7} These two products-focused programs are part of a larger ecosystem of programs managed by NRCan designed to improve the energy efficiency in Canada’s homes, businesses, institutions, industries and transportation. When combined, energy efficiency standards and both mandatory and voluntary labelling programs drive product innovation through cycles of continuous improvement.^{footnote 8} Increasing the stringency of energy efficiency standards eliminates the least efficient products from the market. Increasing the levels that must be met for a product to be certified as ENERGY STAR^® encourages manufacturers to produce affordable high-efficiency products that consumers would recognize as good choices to lower their energy costs.

Energy efficiency standards 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 9} According to the International Energy Agency, improvements to the energy efficiency of products are some of the lowest-cost options available today for reducing energy consumption and associated emissions, with typical society benefit-cost ratios of 4:1, while providing net financial benefits to individuals and the community. Other benefits include employment, product innovation, water savings, improvements in air quality, and the reduction of public expenditures on health and infrastructure.^{footnote 10}

Objective

The goals of the Amendment are to

Reduce energy consumption and resulting GHG emissions associated with products used in homes, contribute to Canada’s commitment to reach net-zero emissions by 2050, reduce the load on the electricity system, and help Canadians save money on their energy bills.
Prevent and reduce unnecessary regulatory difference with the U.S. energy efficiency or testing standards to reduce compliance burden and support cross-border trade.^{footnote 11}
Put in place the tools to ensure the Minister can exercise the Ministerial regulations authority in the future to facilitate maintaining harmonization with another jurisdiction.

Description

The Amendment focuses on a few key changes needed to maintain or increase alignment with the United States and to address known issues with Canadian requirements. Due to the Amendment’s implications on international trade, stakeholders were given a 70-day period to provide their comments on the proposal, from the day the Amendment was prepublished in the Canada Gazette, Part I. The Amendment will come into force six months after the date of publication in the Canada Gazette, Part II, except for the requirements for central air conditioners and central heat pumps which come into force upon publication in the Canada Gazette, Part II. The result of these changes will be that, as of the prescribed dates, it will be illegal to import into Canada or ship between provinces and territories, for the purpose of sale or lease, any of the regulated energy-using products unless they comply with the regulated requirements. A more detailed description of the Amendment is provided below.

(a) Updates energy efficiency and testing standards for split system central air conditioners and central heat pumps

Split system central air conditioners (Division 2, Subdivision F)

Split system central air conditioners are air conditioners with a cooling capacity of less than 19 kW (65 000 Btu/h) and where the condensing unit is typically placed outdoors while the evaporator is indoors. They may or may not use ducts to distribute cooled air to one or more rooms. These air conditioners are primarily used in the residential sector.

As of the coming into force date, for split system central air conditioners manufactured on or after January 1, 2023, the Amendment updates testing and energy efficiency standards, which adopts new metrics, to align with the new testing standards and more stringent energy efficiency standards of the United States set to become effective on January 1, 2023.

Split system central heat pumps (Division 3, Subdivision G)

Split system central heat pumps are heat pumps with a heating or cooling capacity of less than 19 kW (65 000 Btu/h) and where the condensing unit is typically placed outdoors while the evaporator is indoors. They may or may not use ducts to distribute heated or cooled air to one or more rooms. These heat pumps are primarily used in the residential sector.

As of the coming into force date, for split system central heat pumps manufactured on or after January 1, 2023, the Amendment updates testing and energy efficiency standards, which adopts new metrics, to generally align with the new testing standards and more stringent energy efficiency standards of the United States set to become effective on January 1, 2023. The Amendment makes the following adjustments to the U.S. requirements to ensure that heat pumps available in Canada will suit our colder climate: (i) require additional testing and information under cold climate conditions as of January 1, 2025;^{footnote 12} and (ii) require that energy performance information be provided for Climate Region V (instead of Climate Region IV as in the United States) as of January 1, 2023. From January 1, 2023, to December 31, 2024, the Amendment requires information as to whether the cold temperature test was conducted, whether the data from that cold temperature test was used in the calculation of the energy efficiency standard, and if it was conducted, what the Coefficient of Performance (COP) and Heating Capacity are at the cold-climate test point. In addition, the Amendment inserts the word “central” to the title of “Split system heat pumps.”

(b) Updates energy efficiency and testing standards for single package central air conditioners and central heat pumps

Single package central air conditioners (Division 2, Subdivision D)

Single package central air conditioners are air conditioners with a cooling capacity of less than 19 kW (65 000 Btu/h) and where the evaporator coil and the condensing unit are combined into a single physical unit. They use ducts to distribute cooled air to one or more rooms. These air conditioners are primarily used in the residential sector.

As of the coming into force date, for single package central air conditioners manufactured on or after January 1, 2023, the Amendment updates testing standards and adopts new metrics for energy efficiency standards to align with the new testing standards and energy efficiency standards of the United States set to become effective on January 1, 2023.

Single package central heat pumps (Division 3, Subdivision E)

Single package central heat pumps are heat pumps with a heating or cooling capacity of less than 19 kW (65 000 Btu/h) and where the evaporator coil and the condensing unit are combined into a single physical unit. They use ducts to distribute heated or cooled air to one or more rooms. These heat pumps are primarily used in the residential sector.

As of the coming into force date, for single package central heat pumps manufactured on or after January 1, 2023, the Amendment updates testing standards, and adopts new metrics for energy efficiency standards to generally align with the new testing standards and energy efficiency standards of the United States set to become effective on January 1, 2023. The Amendment makes the following adjustments to the U.S. requirements to ensure that heat pumps available in Canada will suit our colder climate: (i) require additional testing and information under cold climate conditions as of January 1, 2025; and (ii) require that energy performance information be provided for Climate Region V (instead of Climate Region IV as in the United States)^{footnote 12} as of January 1, 2023. From January 1, 2023, to December 31, 2024, the Amendment requires information as to whether the cold temperature test was conducted, whether the data from that cold temperature test was used in the calculation of the energy efficiency standard, and if it was conducted, what the Coefficient of Performance (COP) and Heating Capacity are at the cold-climate test point. In addition, the Amendment inserts the word “central” to the title of “Single package heat pumps.”

(c) Makes minor changes to the scope, prescribed information, energy efficiency standards or testing standards for other currently regulated products

Electric water heaters (Division 6, Subdivision A)

Electric water heaters are typically used in household and commercial settings to heat water using electricity as the source of energy.

As of the coming into force date, in order to align with the current U.S. requirements, the Amendment adjusts the input rate boundary between household and commercial electric water heaters. In addition, the Amendment updates the scope of products subject to energy efficiency standards and subject to prescribed information for commercial electric water heaters with a nominal volume (V_r) greater than 530 L (140 US gallons) manufactured on or after January 1, 2020, by removing these products from having to comply with performance requirements and exempting these products from providing standby loss information.

Gas-fired storage water heaters (Division 6, Subdivision B)

Gas-fired storage water heaters are typically used in household and commercial settings to heat water using propane or natural gas as the fuel source.

As of the coming into force date, in order to align with the current U.S. requirements, the Amendment updates the energy efficiency standard and the prescribed information for commercial gas-fired storage water heaters with a V_r greater than 530 L (140 US gallons) manufactured on or after July 1, 2023; updates the testing standards for commercial gas-fired storage water heaters; and updates the energy efficiency standard for the standby loss limits of commercial gas-fired storage water heaters.

Oil-fired water heaters (Division 6, Subdivision C)

Oil-fired water heaters are typically used in household and commercial settings using oil as a fuel source.

As of the coming into force date, in order to align with the current U.S. requirements, the Amendment modifies the volume ranges for household oil-fired water heaters to include heaters with a first-hour rating equal to 284 L (75 US gallons); provides specific performance and prescribed information for commercial oil-fired water heaters with a V_r greater than 530 L (140 US gallons) that are manufactured on or after January 1, 2020; updates the energy efficiency standard for the standby loss limits of commercial oil-fired water heaters; corrects the testing standard for prescribed information for commercial oil-fired storage water heaters that have an input rate of > 30.5 kW (105,000 Btu/h) but ≤ 40.99 kW (140,000 Btu/h), a V_r of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020; and modifies the testing standards for some commercial oil-fired water heaters. In addition, the Amendment removes the word “storage” in the term “commercial oil-fired storage water heater” to ensure consistency of terminology throughout the Regulations.

Lamps and lamp ballasts (Division 7, Interpretation and Labelling)

As of the coming into force date, the Amendment makes a minor change to the French version of the modified spectrum lamp definition as well as corrects the French language text for package labelling in order to reflect the industry standard terminology, reflect the language in the English version of the Regulations, and improve technical accuracy.

Fluorescent lamp ballasts (Division 7, Subdivision F)

Fluorescent lamp ballasts start and maintain the flow of electricity to tube lights that are commonly used for overhead lighting in offices and commercial spaces.

As of the coming into force date, in order to align with the current U.S. requirements, the Amendment adds the U.S. Code of Federal Regulations testing standards, as amended from time to time, as an alternative testing option.

Ceiling fan light kits (Division 8, Subdivision C)

Ceiling fan light kits are designed to provide light from a ceiling fan and is

(a) integral to the fan before its retail sale; or
(b) attachable to the fan after its retail sale.

As of the coming into force date, the Amendment adds prescribed information of light output, in lumens, for ceiling fan light kits with integrated solid-state lighting circuitry, in order to allow compliance verification.

Walk-in freezer and walk-in cooler components (Division 10, Subdivision D)

Walk-in coolers and walk-in freezers are enclosed storage spaces with an area of less than 278.71 m² that are typically used to temporarily store refrigerated or frozen food or other perishable goods. These walk-in coolers and walk-in freezers are primarily used in the food service and food sales industry.

As of the coming into force date, the Amendment adds missing definitions and updates the definitions for “walk-in cooler,” “walk-in freezer,” “walk-in door assembly,” “walk-in panel” and “walk-in refrigeration system” to not include products designed and marketed exclusively for medical, scientific, or research purposes in order to align with the United States. In addition, the Amendment adds RSI/R-value (the measurements used to denote thermal resistance) units and equations, clarifies voltage operational limits for certain walk-in units to reflect the Canadian market in order to provide information to Canadians in equivalent metric system values, and ensures Canadian-specific products are covered by the Regulations.

Electric motors (Division 12, Subdivision A)

Electric motors are typically used in commercial and industrial applications to convert electrical power into mechanical power for equipment such as compressors, pumps, machinery, and material/air-handling equipment. They operate on three-phase power, with output power ranging from 0.75 kW (1 horsepower) up to 375 kW (500 horsepower).

As of the coming into force date, the Amendment updates some energy efficiency standards tables to always point to the latest NEMA MG-1 version of Table 12-12, and provides more testing options to align with the recent changes by the United States, which became effective on July 6, 2021.

Small electric motors (Division 12, Subdivision B)

Small electric motors are typically used in residential, commercial, and industrial applications to convert electrical power into mechanical power for equipment such as compressors and pumps. They operate on single or polyphase power, with output power ranging from 0.18 kW (0.25 horsepower) up to 2.2 kW (3 horsepower).

As of the coming into force date, the Amendment provides more testing options in order to align with the recent changes by the United States which became effective on July 6, 2021.

(d) Specifies 60 energy-using products to ensure the Minister can exercise the ministerial regulations authority to maintain harmonization of regulatory requirements with another jurisdiction

The Amendment specifies 60 energy-using products for which requirements could be amended by ministerial regulations authority in future regulatory processes. These ministerial regulations are limited in use for the purposes of maintaining the harmonization of requirements for energy efficiency standards and testing standards in the Regulations, and information that must be provided by dealers under section 5 of the Energy Efficiency Act, with requirements of another jurisdiction (usually the United States). This authority in section 20.1 of the Energy Efficiency Act will only apply to the following products, for which the alignment with the energy efficiency standard, testing standard or information already exists:

Clothes dryers
Clothes washers
Integrated clothes washer-dryers
Dishwashers
Refrigerators and combination refrigerator-freezers
Freezers
Gas ranges
Dehumidifiers
Microwave ovens
Miscellaneous refrigeration products
Ceiling fans
Room air conditioners
Large air conditioners
Packaged terminal air conditioners
Single package central air conditioners
Single package vertical air conditioners
Split system central air conditioners
Portable air conditioners
Large heat pumps
Packaged terminal heat pumps
Single package central heat pumps
Single package vertical heat pumps
Split system central heat pumps
Gas furnaces
Oil-fired furnaces
Electric furnaces
Gas boilers
Oil-fired boilers
Electric boilers
Gas-fired storage water heaters
Oil-fired water heaters
Electric water heaters
Gas-fired instantaneous water heaters
General service lamps
Modified spectrum incandescent lamps
General service incandescent reflector lamps
General service fluorescent lamps
Fluorescent lamp ballasts
Metal halide lamp ballasts
Torchieres
Ceiling fan light kits
Exit signs
Traffic signal modules
Pedestrian modules
External power supplies
Battery chargers
Commercial refrigerators
Commercial refrigerator-freezers
Commercial freezers
Refrigerated beverage vending machines
Snack and refrigerated beverage vending machines
Ice-makers
Walk-in door assemblies
Walk-in panels
Walk-in refrigeration systems
Dry-type transformers
Electric motors
Small electric motors
Commercial pre-rinse spray valves
Clean water pumps

Regulatory development

Consultation

Pre-consultation summary

Stakeholders were informed of the changes being considered in the Amendment and were provided opportunities to comment at several points since 2020. This proposal evolved based on consultations, and the content of the Amendment was modified based on stakeholder input. Information related to publications and the product-specific webinar were distributed to over 6 000 stakeholders via targeted emails. Two meetings were held with the main manufacturing associations impacted by the Amendment, the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) and the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI), to further inform them about the content of the Amendment and discuss their concerns.

The key activities used to communicate details to, and gather comments from the stakeholder community are outlined below in chronological order:

April 2020: NRCan updated its Forward Regulatory Plan to indicate its intent to proceed with the development of Amendment 17.
May 2021: A detailed product-specific technical bulletin for central air conditioners and heat pumps was published. A product-specific webinar was held with affected stakeholders to discuss the content of the central air conditioners and heat pumps bulletin.
Meetings were held with manufacturers’ associations to further inform them about the content of the Amendment and offer an opportunity to provide input for central air conditioners and central heat pumps.
First meeting: held in January 2021, NRCan communicated that it would consider generally aligning with the United States. NRCan shared its intention to require additional testing under cold climate conditions and to require that energy performance information be reported for Climate Region V (instead of Climate Region IV as in the United States).
Second meeting: held in March 2021, NRCan presented the work that had been done to convert the energy efficiency standards from Climate Region IV (used in the United States) to Climate Region V (used in Canada) to account for differences between the Canadian and U.S. climates.

NRCan also communicates its regulatory activity on an ongoing basis. This provides additional opportunities to inform and gather feedback from stakeholders via:

The Energy efficiency regulations web page of the NRCan website where stakeholders can find up-to-date information about energy efficiency standards for products that are regulated in Canada.
Ongoing bilateral discussions where NRCan is in close contact with the industry through major industry associations to discuss changes to the proposed Regulations.
Ongoing monthly discussions with provinces and territories through the energy efficiency regulations coordination monthly meetings to discuss federal and provincial energy efficiency regulations.
Market studies conducted by third-party consultants who worked with manufacturers and industry associations to gather information and share them with NRCan to support decision-making.

Canada Gazette, Part I, consultation

The Amendment was prepublished in the Canada Gazette, Part I, on April 2, 2022, followed by a 70-day comment period. NRCan received comments from 14 unique organizations: three from industry associations, six from manufacturers, four from distributors and one from a public sector organization. The submissions were generally supportive of the continued efforts to align with U.S. regulations, with some expressing concerns on specific product requirements including potential implications for timelines and asking for the elimination of misaligned requirements.

Submitter approved-for-publication comments can be found on the Canada Gazette’s website.

The following summarizes the major comments and topics of clarification raised by stakeholders during the comment period and NRCan’s views on each. No substantive comments were received for products included in the Amendment that are not mentioned below.

Heat pumps and air conditioners

Issue: Cold Temperature Testing

Comment: Two industry associations, five manufacturers and three distributors requested the removal of mandatory cold-temperature testing (-15°C/5°F) for heat pumps, stating that adding this requirement will necessitate retesting and that currently, few facilities are properly equipped for cold temperature testing. Stakeholders further emphasized that this requirement will not change key performance metrics and thus should remain optional. A number of these stakeholders also requested that the date for meeting cold-climate testing requirements, if made mandatory, be delayed until January 1, 2025. However, a public-benefit corporation fully supported the proposed cold-temperature testing, highlighting the associated energy savings and performance improvements for Canadian and other North American cold climate markets. This stakeholder further highlighted the widespread availability of cold-temperature testing, stating that all certification laboratories are currently set up to provide this, while also supporting NRCan’s proposed approach to apply requirements as of January 1, 2023.
Response: NRCan will balance its policy to align with the United States with its own domestic agenda to deliver on climate change initiatives, including the 2050 net-zero emissions targets. The United States Environmental Protection Agency will require the proposed cold climate test for cold climate heat pumps to qualify for the Energy Star program. NRCan also recognizes that test facilities may need time to build capacity for cold-temperature testing, and given this concern, NRCan will delay the cold-climate testing requirements until January 1, 2025.

Issue: Timing for the Application of Requirements

Comment: An industry association, four manufacturers and two distributors requested that heat pumps and air conditioning products only certified under the Appendix M1 testing standard^{footnote 13} be permitted into Canada for sale or lease immediately. Equipment distributors expressed concern about a potential product shortage given many units are now only certified to M1. A waiver to regulatory requirements was requested seeking relief on two elements: regulatory requirements in place in advance of publication and an expedited application of requirements upon publication.
Response: To address this request, NRCan undertook work with industry to ensure continued access to products in Canada before publication. To expedite the application of requirements, NRCan has implemented an entry into force upon publication, so that products certified to M1 can be shipped into Canada as soon as possible. The authority to provide a waiver is not allowed under the Energy Efficiency Act and Regulations. This comment is noted and will be taken into account if and when the Energy Efficiency Act is reviewed and updated.

Electric water heaters

Issue: Testing Standard Clarity

Comment: An industry association and three manufacturers requested that NRCan more explicitly outline the testing standard used, replacing “10 C.F.R. Appendix B” with “10 CFR Part 431, Subpart G Appendix B.”
Response: The regulatory text published in the Canada Gazette, Part I, will be used. The reference is clearly defined in the “Definitions” section and abbreviated in the table published in the draft regulations.

Gas-fired storage water heaters

Issue: Misalignment of volume metrics used in the uniform energy factor equation

Comment: An industry association and three manufacturers requested that NRCan use rated volume (V_r) instead of the current measured volume (V_s) when calculating energy efficiency standards - Uniform Energy Factor (UEF) and Standby Loss formulae, to align with the United States. One of these manufacturers highlighted that safety standards for water heaters in Canada provide direction on how to establish rated volume for manufacturers and requested that these directions be effectively translated to energy efficiency instructions.
Response: For residential gas-fired storage water heaters, no changes were proposed for Amendment 17. NRCan will be addressing this product in future amendments. For commercial gas-fired storage water heaters, NRCan is maintaining the nomenclature of water heater volumes used in the Regulations because Canada’s Regulations use V_r for more than one subdivision of water heater and differ with the United States in how it is determined. Furthermore, the distinction between V_r and V_s in Canada’s Regulations is important for facilitating the current choice of test methods available for establishing energy efficiency compliance. The Regulations’ definitions for each term detail their usage. NRCan is considering aligning the metrics with the United States through upcoming amendments which are currently in pre-consultations.

Issue: Testing Standard Clarity

Comment: An industry association and three manufacturers requested that NRCan more explicitly outline the testing standard used, replacing “10 C.F.R. Appendix A” with “10 CFR Part 431, Subpart G Appendix A.”
Response: NRCan is maintaining the text of the regulations as published in the Canada Gazette, Part I, as the reference is already clearly defined in the “Definitions” section and abbreviated in the table published in the draft regulations.

Issue: Consistency Across Model Classification

Comment: An industry association and three manufacturers requested a strict delineation in requirements for models larger than 140 US gallons; specifically, these stakeholders sought to have categorization of models larger than 140 US gallons separated into new construction and replacement units and/or have the same thermal efficiency for all models of this size – 80%, consistent with U.S. regulations.
Response: NRCan agrees with the comment and modifications will be made to ensure that models larger than 140 US gallons will be separated into new construction and replacement units, with replacement units only requiring a thermal efficiency of 80%, consistent with U.S. regulations.

Oil-fired water heaters

Issue: Testing Standard Clarity

Comment: An industry association and three manufacturers requested that NRCan more explicitly outline the testing standard used, replacing “10 C.F.R. Appendix A” with “10 CFR Part 431, Subpart G Appendix A.”
Response: NRCan is maintaining the text of the regulations as published in the Canada Gazette, Part I, as the reference is already clearly defined in the “Definitions” section and abbreviated in the table published in the draft regulations.

Ministerial Authority

Comment: Commenters were supportive of expanded ministerial authorities, but requested (1) that harmonization processes be fully completed in Canada within three years of the publication of a U.S. DOE Final Rule; (2) that the list of energy-using products be updated when new standards are under development and aligned with the United States; (3) to provide more information on changes to procedures and projected impact on the efficiency of future alignment efforts; and (4) that the tool should not be used to harmonize provincial standards over the U.S. standards.
Response: NRCan agrees with the importance of proceeding with timely updates after the United States issues a final rule on products where the policy is to align. Products will be added to the list of specified energy-using products once aligned products are added into the Regulations, or when there is a policy change on alignment for already regulated products. NRCan is currently developing processes and standard timelines for this streamlined regulatory path and stakeholders will be informed through pre-consultations before this new tool is used on a specific product in the future. Given that ministerial regulations can only be used to fix or maintain existing alignment with a specific jurisdiction, they could not be used to change a policy of alignment from the United States to a province without going through a full regulatory amendment, including pre-consultations and going through the Canada Gazette, Part I.

Modern treaty obligations and Indigenous engagement and consultation

The Amendment does not trigger the Crown’s duty to consult, as it has no adverse impact on Aboriginal and treaty rights. An assessment of modern treaty implications found no modern treaty implications given that this proposal does not have an impact on indigenous land and resource management rights described in a modern treaty, does not include employment of federal officials or procurement activities in a geographic area subject to a modern treaty, and does not include any funding or resources.

Instrument choice

Maintaining the baseline scenario (no action)

Given Canada’s commitment to reach net zero by 2050 and the fact that in 2018, Canada’s building sector accounted for approximately 18% of national emissions, maintaining the status quo would not contribute to incremental reductions towards the achievement of this goal. Maintaining the status quo would also lead to missed opportunities to reduce energy consumption, leaving households with higher energy costs for cooling and heating their homes. The status quo option would not deliver on the federal government’s commitment to foster alignment of federal regulations where feasible and appropriate.

Developing voluntary mechanisms for central air conditioners and central heat pumps

Under this approach, the Regulations would be repealed for the products subject to the Amendment, and voluntary mechanisms would be developed to ensure that manufacturers adopt the U.S. energy efficiency and testing standards for these products. This option may reduce costs for the industry since there would be no mandatory requirements for these products. However, such voluntary mechanisms would still require accounting for differences between the Canadian and U.S. climate conditions to ensure that products available in Canada provide Canadians with energy savings despite Canada’s cold climate. Furthermore, there would need to be some data submission and monitoring to ensure that expected results are achieved. Voluntary mechanisms would not be in place quickly enough to prevent unnecessary differences between Canada and the United States on energy efficiency and testing standards for central air conditioners and central heat pumps.

In addition, voluntary mechanisms may not address energy consumption to the extent that a regulatory approach would, as it would be impossible to impose compliance with voluntary standards given the high numbers of stakeholders. This would be a significant departure from Canada’s approach to advancing energy efficiency and from the intent of the Energy Efficiency Act.

Regulatory actions (the Amendment)

Taking regulatory actions will lead to greater reductions in energy use, leading to greater GHG emission reductions compared with either the status quo or voluntary mechanisms. The Amendment will prevent various unnecessary regulatory differences, in particular, the testing and energy efficiency standards for central air conditioners and central heat pumps between Canada and the United States, and thereby avoid unnecessary burden on industry. The Amendment will also facilitate future regulatory actions to maintain alignment for products where there is already a policy to align with the United States.

Regulatory analysis

Benefits and costs

Summary

The present value of net benefits of the Amendment is estimated to be more than $1.66 billion by 2050, with total benefits exceeding total costs by a ratio of more than 5:1. By 2050, the present value of benefits and costs from the Amendment is estimated to be about $2.04 billion and $382.02 million, respectively. A summary description of the benefits and costs associated with the Amendment are presented in Table 1.

The results of the benefits and costs analysis are different from those published in the Canada Gazette, Part I. These differences reflect the policy changes made to the coming into force date of central heat pumps and central air conditioners and the adjustment of mandatory cold climate testing requirements for central heat pumps from January 2023 to January 2025. In addition, the marginal emission factor for electricity was updated.

Table 1: Summary of benefits and costs associated with the Amendment
Costs (as applicable)	Monetized benefits	Quantified benefits	Unquantified non-energy benefits
Technology costs	Energy (electricity) savings	Energy savings (petajoule)	Outside air quality, competitiveness, job growth, home comfort, indoor air quality, minimizing depressurization in new construction, etc.
	Installation and maintenance costs	Avoided damages because of GHG reductions	GHG emission reductions (MtCO₂e)
	Government administration	Avoided compliance cost associated with prevention of unnecessary regulatory differences (central air conditioners and central heat pumps)	N/A
Compliance costs associated with new testing requirements	N/A	N/A	Avoided trade and compliance issues (make minor changes to the scope, prescribed information or provide alternative testing standards for some currently regulated products)
Administrative burden^{table b16 note a}	N/A	N/A	N/A
Table b16 note(s) Table b16 note a Cost captured by Treasury Board of Canada Secretariat’s administrative burden calculator. Return to table b16 note a referrer

Reduced energy consumption, lower GHG emissions, and fewer unnecessary regulatory differences will result in significant net benefits over the lifetime of affected product models when comparing the regulatory scenario (the Amendment) with the baseline scenario. 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 0.84 petajoules in 2030, and to reach 2.12 petajoules in 2050, as the sale of more efficient products steadily replaces the pre-Amendment stock.

Annual reductions in GHG emissions (megatonnes of carbon dioxide equivalent [MtCO₂e]) resulting from these reductions in energy consumption are estimated to be 0.07 MtCO₂e in 2030, and to reach 0.18 MtCO₂e in 2050. It is estimated that, by applying a social cost of carbon (SCC) dioxide equivalent (CO₂e) to these reductions, the cumulative present value of economic benefits associated with GHG emission reductions will be about $194.48 million by 2050.^{footnote 14}

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 $1.49 billion in cumulative present value energy savings will be realized by 2050.

The cumulative present value of incremental technology costs associated with the Amendment is estimated to be almost $370.60 million by 2050. Interested parties seeking more details on this analysis can request a copy of the Cost-Benefit Analysis report by contacting the individual named at the end of this document.

Consultations — cost-benefit analysis

Stakeholders were engaged on various occasions and in various ways on the development of the cost-benefit analysis. For instance, in April 2021, a market study for central air conditioners and central heat pumps was completed by a third-party consultant who worked with manufacturers and industry associations. The study provided the primary data used to conduct the cost-benefit analysis for products where updates to testing and/or energy efficiency standards were considered. Later in May 2021, a product-specific webinar was held on central air conditioners and central heat pumps with affected stakeholders, which, among other things, provided information and links to the cost-benefit methodology and sought input on that methodology and potential impacts on stakeholders.

Methodology, assumptions, and data

NRCan analyzed the economic gains to be made through the new and more stringent energy efficiency standards 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:

the baseline scenario (i.e. excluding the Amendment); and
the regulatory scenario (i.e. the Amendment).

For the purpose of this analysis, in the baseline scenario where Canadian energy efficiency standards are aligned with those of the United States, it was assumed that incremental costs and benefits in Canada were fully the result of the previous amendments to the Regulations, with no spillover effects from the other jurisdictions such as the United States, to provide an assessment of the full economic impacts of regulatory changes affecting Canadians.

The regulatory scenario is defined as the application of more stringent energy efficiency standards across two products (split system central air conditioners and central heat pumps) relative to markets defined by a market study completed in April 2021. Other products subject to the Amendment are only included in the cost-benefit analysis if they are linked to incremental compliance and administrative cost-benefit calculations. No other benefits or costs have been modelled for these last products given that there are no added technology, installation or maintenance costs associated with these.

Benchmarks

For all products with updated energy efficiency standards, benchmarks were chosen to represent the product models that just meet and that do not meet the more stringent energy efficiency standards. Within the non-compliant benchmarks, two efficiency levels were considered and weighted based on their relative market share: (1) the least efficient level; and (2) the average efficient level. Where relevant, regional sensitivities were evaluated (e.g. a heat pump will save more energy per year in a colder location).

Methodology to estimate costs

The “incremental” technology, installation and maintenance 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 updated energy efficiency standards. For each product, the potential technology cost of modifying the inefficient benchmark product model so that it meets the more stringent energy efficiency standards was estimated (e.g. the cost of adding extra insulation to a water heater or the 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 baseline scenario that were estimated to have an energy performance that is worse than what is required by the energy efficiency standards. Results were combined across all affected products to estimate the total incremental technology costs.

Additional incremental costs related to installation and maintenance over the lifetime of the product were also evaluated, if applicable. These costs were found not to vary by efficiency for the products affected by the Amendment.

Other costs reported as being attributable to the Amendment include, as appropriate, administrative and compliance costs to businesses, as well as those incurred by the Government to implement the changes. Compliance costs arise when new testing is required for manufacturers. However, compliance costs for products that are already being tested to enter the U.S. market or are under voluntary programs would be incurred in both the baseline and policy scenarios, so are not considered incremental in the analysis.^{footnote 15} Compliance costs include all actions required to meet compliance requirements (e.g. familiarization with new procedures, set-up, labour, supplies) and were calculated by multiplying the cost related to testing a typical model with the number of models that are expected to be tested on (i) the year the Regulations come into force; and (ii) the subsequent years models are introduced or improved, as relevant. The administrative burden is calculated using the Treasury Board of Canada Secretariat’s Regulatory Cost Calculator. Administrative costs are discussed later in the “One-for-one rule” section.

Methodology to estimate benefits

Energy savings for each product with updated energy efficiency standards 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 updated energy efficiency standards. The difference was multiplied by the number of shipments of the product models in the baseline scenario that were estimated to have an energy performance that is worse than what is required by the updated energy efficiency standards based on 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 products to estimate the 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 used to generate the electricity that will be saved through implementation of the Amendment.^{footnote 16} 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 about 1.2 MtCO₂e by 2050 (versus 3.9 MtCO₂e with the marginal emission factor).

GHG emissions were monetized and incorporated into the analysis using an SCC. The SCC 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.

Modifications to the Regulations sometimes generate compliance cost savings in situations where an amendment allows companies to eliminate or avoid the need to test their products differently in order to sell in every North American market. These were estimated by multiplying the cost savings of testing a typical model with the number of models that are expected to be tested on (i) the year the Regulations come into force; and (ii) the subsequent years models are introduced or improved, as relevant.

Assumptions

The key assumptions used in the main analysis are the following:

The analysis covers shipments impacted by the Amendment between 2023 and 2050.
The baseline scenario reflects Canadian market conditions in 2020.
Benefits and costs are measured in real constant 2020 dollars.
A 3% real discount rate is applied to all benefits and costs with values discounted to 2022.^{footnote 17}
Canadian average energy prices are based on data from Environment and Climate Change Canada’s 2020 reference case emission projections.^{footnote 18}
The SCC used in this analysis is calculated by Environment and Climate Change Canada at $53.94/tonne of carbon dioxide equivalent in 2023 (in 2020$), increasing each year with the expected growth in damages.^{footnote 19}
Costs incurred by manufacturers to produce more efficient technologies are assumed to be passed on to consumers.
Incremental costs associated with more efficient technology were estimated in 2020 and are assumed to be constant, despite evidence that such costs come down with time, owing to improvements in manufacturing processes and economies of scale as higher volumes of product models with new technology enter the market.^{footnote 20} This assumption could lead to overestimates of manufacturing costs; however, it provides a conservative assessment of overall net benefits.

Data collection and sources

Data was collected on a product-by-product basis, through a market study. The study provided key inputs to the analysis, such as the market size, the portion of the market that meets or does not meet the new or more stringent energy efficiency standards, the benchmarks that best represent the market, energy savings from the baseline scenario to the regulatory scenario, costs of moving from the baseline scenario to the regulatory scenario, product lifetime, and installation and maintenance costs. The market study also provided data to estimate compliance costs.

Cost-benefit statements

The methodology described above was applied to all products to develop an estimate of the benefits and costs attributable to the Amendment. The results vary by-product depending on the magnitude of the increase in stringency of the energy efficiency standards and the estimated portion of the market that will be impacted by the Amendment. The estimated benefits and costs for all products shipped by 2050 are presented in Table 2. These results were then aggregated to present the overall impacts of the Amendment in tables 3 to 6.

Number of years: 28 (2023 to 2050)
Base year for costing: 2020
Present value base year: 2022
Discount rate: 3%

Table 2: Benefits and costs per product in millions of dollars (note: estimates have been rounded)
Product division	Product subdivision	Product costs^{table b17 note a} ^{table b17 note b}	Product benefits^{table b17 note a} ^{table b17 note c}	Product net benefits^{table b17 note a}
Division 2 — Air Conditioners, Condensing Units and Chillers	Subdivision D — Single Package Central Air Conditioner	$0.00	$24.66	$24.66
	Subdivision F — Split System Central Air Conditioners	$307.70	$1,090.54	$782.84
Division 3 — Heat Pumps	Subdivision E — Single Package Central Heat Pumps	$0.72	$9.93	$9.21
	Subdivision G — Split System Central Heat Pumps	$73.52	$915.85	$842.33
Total of all products	N/A	$381.94	$2,040.98	$1,659.04
Table b17 note(s) Table b17 note a Totals are presented in cumulative present value. Return to table b17 note a referrer Table b17 note b Product costs include incremental costs for technology, installation, maintenance and compliance, as applicable. The Amendment will add compliance costs for manufacturers through the new testing requirement for cold climate heat pumps. Return to table b17 note b referrer Table b17 note c Product benefits include energy savings, GHG emission reductions and compliance cost savings due to avoided costs associated with preventing unnecessary regulatory differences, as applicable. The Amendment will generate compliance cost savings (benefits) for companies, as the alignment of Canadian testing standards with U.S. testing standards will remove the need for companies to retest their products separately for each country. More details can be found in the cost-benefit analysis report. Return to table b17 note c referrer

Table 3: Monetized costs in millions of dollars (note: estimates have been rounded)
Impacted stakeholder	Description of cost	Annual total in 2023^{table b18 note c}	Annual total in 2030^{table b18 note c}	Annual total in 2040^{table b18 note c}	Annual total in 2050^{table b18 note c}	Cumulative total by 2050^{table b18 note d}	Average annualized total over the 2023–2050 period^{table b18 note e}
Consumers	Technology, installation and maintenance costs^{table b18 note a}	$18.41	$20.06	$20.06	$20.06	$370.60	$19.75
Industry	Administrative burden^{table b18 note b}	$0.07	$0	$0	$0	$0.07	$0.004
Industry	Compliance costs	$0	$0.55	$0.55	$0.55	$11.35	$0.60
Government	Government costs	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00
All stakeholders	Total costs	$18.48	$20.61	$20.61	$20.61	$382.02	$20.35
Table b18 note(s) Table b18 note a Incremental technology, installation and maintenance costs are assumed to be passed on to consumers as higher prices. Return to table b18 note a referrer Table b18 note b The administrative burden reported in table 3 was estimated applying a 3% discount rate, from 2023 to 2050, to determine the value in 2020 dollars discounted to 2022. This method was used to be consistent with the calculation of other costs and benefits presented in tables 2 to 5. Administrative burden estimates produced for the one-for-one rule, discussed below in this RIAS, were calculated using the Treasury Board of Canada Secretariat’s Regulatory Cost Calculator. This tool used a 7% discount rate, over 10 years (2023–2032), to determine the value in 2012 dollars, resulting in an estimated annualized increase in total administrative burden to all businesses subject to the Amendment of approximately $8,978 (or $4,266 when discounted to 2012). Return to table b18 note b referrer Table b18 note c Annual totals for 2023 through 2050 are presented in present value in the respective year. Return to table b18 note c referrer Table b18 note d Cumulative totals by 2050 are presented in 2022 present value. Return to table b18 note d referrer Table b18 note e Average annualized over the period are presented in terms of annualized values as indicated in the Treasury Board of Canada Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals. Return to table b18 note e referrer

Table 4: Monetized benefits in millions of dollars (note: estimates have been rounded)
Impacted stakeholder	Description of benefit	Annual total in 2023^{table b19 note a}	Annual total in 2030^{table b19 note a}	Annual total in 2040^{table b19 note a}	Annual total in 2050^{table b19 note a}	Cumulative total by 2050^{table b19 note b}	Average annualized total over the period 2023–2050^{table b19 note c}
Consumers	Pre-tax fuel (electricity) savings	$58.31	$75.40	$88.95	$96.23	$1,491.93	$79.51
Canadians	Avoided GHG damages	$8.03	$10.05	$11.36	$11.89	$194.48	$10.36
Industry	Avoided costs associated with preventing unnecessary regulatory differences	$18.90	$18.90	$18.90	$18.90	$354.57	$18.90
All stakeholders	Total benefits	$85.24	$104.35	$119.21	$127.02	$2,040.98	$108.77
Table b19 note(s) Table b19 note a Annual totals for 2023 through 2050 are presented in present value in the respective year. Return to table b19 note a referrer Table b19 note b Cumulative totals by 2050 are presented in 2022 present value. Return to table b19 note b referrer Table b19 note c Average annualized over the period are presented in terms of annualized values as indicated in the Treasury Board of Canada Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals. Return to table b19 note c referrer

Table 5: Summary of monetized costs and benefits in millions of dollars (note: estimates have been rounded)
Impact	Annual total in 2023^{table b20 note a}	Annual total in 2030^{table b20 note a}	Annual total in 2040^{table b20 note a}	Annual total in 2050^{table b20 note a}	Cumulative total by 2050^{table b20 note b}	Average annualized total over the 2023–2050 period^{table b20 note c}
Total costs	$18.48	$20.61	$20.61	$20.61	$382.02	$20.35
Total benefits	$85.24	$104.35	$119.21	$127.02	$2,040.98	$108.77
Net impact	$66.76	$83.74	$98.60	$106.41	$1,658.96	$88.42
Table b20 note(s) Table b20 note a Annual totals for 2023 through 2050 are presented in present value in the respective year. Return to table b20 note a referrer Table b20 note b Cumulative totals by 2050 are presented in 2022 present value. Return to table b20 note b referrer Table b20 note c Average annualized over the period are presented in terms of annualized values as indicated in the Treasury Board of Canada Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals. Return to table b20 note c referrer

Table 6: Quantified non-$ impacts (note: estimates have been rounded)
Impacted stakeholder	Description of impact	Annual total in 2023	Annual total in 2030	Annual total in 2040	Annual total in 2050	Cumulative total by 2050	Average annualized total over the 2023–2050 period
Canadians	Energy savings (petajoules)	0.10	0.84	1.79	2.12	37.8	1.35
	GHG emission reductions (megatonnes of carbon dioxide equivalent)	0.01	0.07	0.15	0.18	3.2	0.11

Additional benefits and costs

The amendments remove regulatory differences between Canada and the United States and the analysis quantifies the resulting costs reduction associated with the industry not having to test the same product model twice to satisfy different requirements. However, these only represent a small portion of the positive impacts associated with the regulatory alignment according to the Organisation for Economic Co-operation and Development.^{footnote 21}

Costs and benefits associated with the changes to other currently regulated products had been quantified in previous amendments to the Regulations. The minor changes to some regulated products to correct known errors with the Regulations or enhance alignment with the United States will result in unquantified avoided trade barriers or compliance issues.

For businesses and institutions 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.^{footnote 22} Reduced electricity consumption from regulated products also benefits the utilities by reducing peak loads and the need to add more generating, transmission and distribution capacity.^{footnote 23}

Because of the lack of data or the complexity involved, 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.

Access to ministerial regulations will give NRCan the means to update the Regulations in a more time-efficient manner when it is desired to maintain alignment of energy efficiency standards and testing standards with another jurisdiction. It could reduce the time to implement an amendment at both prepublication and publication stages. This benefits trade and business by reducing the period of time during which Canada’s regulations are misaligned with another jurisdiction, notably the United States, and will allow more efficient use of government resources.

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. Energy performance data for new energy-using products will be posted to the NRCan website^{footnote 24} 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. The collection and analysis of energy performance data also supports future policy development and evidence-based decision-making.

Sensitivity analysis

Given that several inputs into the analysis are subject to a certain degree of uncertainly, in addition to the baseline scenario, sensitivity analyses are performed on the following variables:

Discount rate: the current analysis uses a 3% social discount rate. However, the results may be sensitive to the discount rate used. To account for this uncertainty, the sensitivity analysis performs the analysis with an opportunity cost of capital of 7%, which is consistent with values recommended in the Treasury Board of Canada Secretariat Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals.
Energy price: the energy prices used in the current analysis are weighted Canadian averages by fuel types and sectors. However, the price paid by the consumer may differ depending on the region they live in. To account for this uncertainty, the sensitivity analysis tests the results with the lowest and highest regional prices.
GHG emission factor for electricity: the GHG emission factor for electricity used in the current analysis is NRCan’s marginal emission factor for electricity. However, the results may be sensitive to the emission factor used. To account for this uncertainty, the sensitivity analysis performs the analysis using Environment and Climate Change Canada’s average emission factor for electricity.
Incremental costs: the methodology assumes that incremental costs of technology remain constant over time. Considering this assumption provides a conservative estimate of future cost changes, a sensitivity analysis is performed to account for a 10% reduction of the estimated incremental costs.
Social cost of carbon: the analysis uses Environment and Climate Change Canada’s central estimates of the SCC. However, as results may be sensitive to the SCC values, to account for this uncertainty, the sensitivity analysis presents the results with the 95th percentile case estimates of the SCC, which represents the case of extreme climate impacts, as well as without the SCC.

Overall, the various sensitivity scenarios support estimates of positive net benefits for all products, with total cumulative net benefits by 2050 in the range of $738 million (7% discount rate) to $2.67 billion (high energy prices), in comparison to $1.66 billion of net benefits under the reference case, as shown in Table 7 below. The detailed results per product from all these scenarios can be found in the Cost-Benefit Analysis report.

Number of years: 28 (2023 to 2050)
Base year for costing: 2020
Present value base year: 2022
Discount rate: 3% (unless otherwise indicated)

Table 7: Summary of sensitivity analysis of benefits and costs per product in millions of dollars (note: estimates have been rounded)
Variable	Sensitivity case	Costs^{table b22 note a} ^{table b22 note b}	Benefits^{table b22 note a} ^{table b22 note c}	Net benefits^{table b22 note a}
Reference case (from Table 5)	N/A	$382	$2,041	$1,659
Emission factor	Average factor	$382	$1,922	$1,540
Discount rate	7%	$246	$983	$738
Social cost of carbon	Extreme	$382	$2,685	$2,303
	None	$382	$1,847	$1,465
Energy price	High	$382	$3,056	$2,674
	Low	$382	$1,567	$1,185
Incremental costs	Low	$345	$2,041	$1,696
Table b22 note(s) Table b22 note a Totals are presented in cumulative present value. Return to table b22 note a referrer Table b22 note b Costs include incremental costs for technology, installation, maintenance, compliance, administrative and government costs, as applicable. The Amendment will add additional compliance costs for manufacturers through the new testing requirement for cold climate heat pumps. Return to table b22 note b referrer Table b22 note c Benefits include energy savings, GHG emission reductions and cost savings due to avoided costs associated with preventing unnecessary regulatory differences. The Amendment will also generate compliance cost savings (benefits) for companies, as the alignment of Canadian testing standards with U.S. testing standards will remove the need for companies to retest their products separately for each country. More details can be found in the Cost-Benefit Analysis report. Return to table b22 note c referrer

Small business lens

Statistics Canada and Canada Border Services Agency data obtained from the Treasury Board Secretariat’s Regulatory Cost Calculator indicates that 1 094 small businesses may be impacted by the Amendment. Based on this number, the Amendment will increase the administrative burden for small businesses by $5,562 annualized average administrative costs, or $5 per business. These numbers were calculated by the Treasury Board Secretariat’s Regulatory Cost Calculator, where numbers are presented in present values discounted to 2022, using a 7% discount rate, over 10 years, in 2020 dollars. The estimated impacts on small businesses are presented in Table 8.

Air conditioners and heat pumps are mostly manufactured outside of Canada by multinational companies. Only a few Canadian manufacturers have been identified by the market study used for this Amendment to be producing air conditioners and heat pumps, but they are not small businesses or are not subject to federal regulations as they do not import their products into Canada or ship them from one province to another for the purpose of sale or lease. There are many small businesses that import energy-using products in the country, but the majority of the businesses that import some of the products included in the Amendment are not expected to be significantly impacted financially, given that it will still be possible for them to import air conditioners and heat pumps that meet or exceed the energy efficiency standards and Canadians will still look for them when needing to replace their products. This Amendment will ensure that more efficient products are imported and sold to Canadians and no flexibility for small businesses is proposed.

Small business lens summary

Number of small businesses impacted: 1 094
Number of years: 10 (2023–2032)
Base year for costing: 2020
Present value base year: 2022
Discount rate: 7%

Table 8: Total administrative and compliance costs
Totals	Annualized value	Present value
Administrative costs	$5,562	$39,067
Compliance costs	$0	$0
Total cost (all impacted small business)	$5,562	$39,067
Cost per impacted small business	$5	$36

Small businesses and other businesses that are expected to assume incremental costs have been engaged in the pre-consultation and through targeted emails to manufacturers, importers and industry associations, among others. No compliance issues associated with small businesses were raised about the Amendment during this engagement.

One-for-one rule

The Regulations require the submission of energy efficiency reports and import reports, when applicable. Since no new regulated products are added in the Amendment, no new reports will be required. Nevertheless, minor changes to energy efficiency reports will be required for some products already regulated, to reflect changes made in the Amendment. For instance, new data elements will be added to adjust for the additional testing under cold climate conditions for central heat pumps, and for the additional information to be provided for ceiling fan light kits.

The Amendment is considered an “IN” under the one-for-one rule. It will increase the administrative burden by approximately $4,266 in annualized average administrative costs to industry, or $2.59 per business. The numbers were calculated by the Treasury Board Secretariat’s Regulatory Cost Calculator, where the numbers are presented in present values discounted to 2012, using a 7% discount rate, over 10 years, in 2012 dollars. See Table 3, note b for more detail.

Dealers of the prescribed products will be required to learn about the requirements of the Regulations and submit information before shipping or importing energy-using products in accordance with subsection 5(1) of the Energy Efficiency Act. No comments were received from stakeholders on the impacts of the Amendment on administrative burden. In general, stakeholders were generally supportive of the approach to achieve alignment with U.S. regulations for the products covered in the Amendment.

Familiarization with the Amendment

Familiarization with new prescribed information 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 associated reports. This one-time event is estimated to take two hours to be realized by someone in specialized middle management with a wage rate of approximately $54 (2012$) per hour. The number of stakeholders impacted is estimated at 577, which represents the total number of companies with classification from the Harmonized Commodity Description and Coding System manufacturing products identified under the following three North American Industry Classification System (NAICS) codes:^{footnote 25}

333416 — Heating equipment and commercial refrigeration equipment manufacturing
335120 — Lighting fixture manufacturing
335312 — Motor and generator manufacturing

The use of these codes likely overestimates the total number of companies that will 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 577 stakeholders.

Submitting energy efficiency reports

The Amendment will introduce an administrative burden associated with the reporting of energy performance information before an energy-using product is imported or shipped across provinces and territories. 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, and the U.S. DOE.

To estimate the time required to input the energy performance data, NRCan relied on a U.S. DOE assessment^{footnote 26} 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. DOE 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 reports and those that were the subject of the U.S. DOE analysis, NRCan estimates that it will take 36 seconds per data element. These activities will be undertaken by administrative support with a wage rate of approximately $30 (2012$) per hour.

The Amendment is expected to impact the prescribed information for manufacturers of heat pumps and ceiling fan light kits. Analysis of the data indicates 307 manufacturers of split system and single package heat pumps (NAICS 333416) may be impacted, which will require inputting two new data fields into the energy efficiency reports.

Fewer manufacturers of ceiling fan light kits are expected to be impacted. The new prescribed information only applies to a subset of the product (with solid-state lighting), which is estimated at 10% of market share. This estimate, when applied to manufacturers listed under NAICS 335120, indicates that 17 manufacturers will be impacted. These manufacturers will be required to input one new data field into the energy efficiency reports.

Regulatory cooperation and alignment

The amendments to the Regulations were developed in line with previous regulatory cooperation efforts made to address or avoid unnecessary regulatory differences within Canada and within North America, and as per current international agreements:

Amendments to the Regulations seek to foster alignment of federal regulations where feasible and appropriate, primarily through the use of testing standards already applied by the United States, to be 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, and the more recent Memorandum of Understanding between the Department of Natural Resources Canada and the Department of Energy of the United States of America Concerning Cooperation on Energy signed in June 2021.
The Canada-U.S.-Mexico Free Trade Agreement (CUSMA) includes provisions in support of harmonization and regulatory practice requirements across North America. Annex 12-D of Chapter 12 of CUSMA states that each party shall give consideration to adopting energy efficiency and testing standards adopted by another party. CUSMA does not mandate harmonization, recognizing that successful efforts at harmonization should not diminish consumer welfare, consumer protection and national energy efficiency objectives.
NRCan cooperates with provincial and territorial governments to position Canada as a global leader in efforts to improve the energy efficiency of products used in the building sector. Informal discussions through existing channels and formal processes under the Regulatory Reconciliation and Cooperation Table (RCT) of the Canadian Free Trade Agreement (CFTA) would reduce and eliminate, to the extent possible, barriers to trade within Canada.

More specifically, regulatory cooperation and alignment in Canada and in North America associated with the Amendment are described in Table 9.

Table 9: Regulatory cooperation and alignment in Canada and North America associated with the Amendment
	Regulatory cooperation and alignment in Canada	Regulatory cooperation and alignment in North America
Heat pumps and air conditioners	Provinces regulating these products often incorporate by reference Canadian federal and U.S. requirements. Maintaining alignment between Canada and the United States also helps the alignment within Canada.	The Amendment maintains alignment with the U.S. testing and energy efficiency standards for products manufactured on or after January 1, 2023. The Amendment introduces some regulatory differences given that NRCan requires mandatory cold-temperature testing and information as of January 1, 2025.
Minor updates	Provinces regulating these products often incorporate by reference Canadian federal and U.S. requirements. Maintaining alignment between Canada and the United States also helps alignment within Canada.	The Amendment makes minor updates to scope, prescribed information or compliance requirements for some currently regulated products to address known issues and to prevent/reduce misalignment with the United States.
Ministerial regulations	The Amendment will allow Canada to move faster to maintain alignment with the United States and help provinces that have incorporated NRCan standards by reference maintain alignment with the United States.	The Amendment will ensure the Minister can exercise the Ministerial regulations authority in future regulatory processes to maintain alignment of energy efficiency standards and/or testing standards and/or information that must be provided by dealers, with requirements in the United States for some products where the alignment already exist.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus (GBA+)

The Regulations benefit Canadians by helping to eliminate low energy efficiency products from the market. The Amendment will save money for Canadians who will purchase more energy efficient products, and, as a result of energy consumption savings, pay less on their energy bills. Low-income Canadians might be impacted by the Amendment to the extent there is an increase in retail prices for these products. Those living in low-income households who are also renters could benefit from lower energy costs when their landlords replace products with the more efficient models, unless their landlord does not pass on the savings to them.

This analysis was informed by a product-specific market study conducted for the Amendment by a third-party consultant who was requested to identify any disproportionate impacts from increasing energy efficiency standards on certain socio-economic segments of the Canadian population. The factors considered were sex, gender, socio-economic status, race, ethnicity, age, mental or physical disability and whether a population is urban, rural, or remote. NRCan also considered the results of an internal study (NRCan study) that provided an overview of intersectional gender-based issues in Canada’s energy efficiency sector using a gender-based analysis plus and recommendations for future inclusive policy-making.

The market study identified potential impacts based on socio-economic status. More stringent energy efficiency standards could cause a temporary manufacturer costs’ increase, estimated at less than 3% for both products,^{footnote 27} which could be passed on to retail prices, disproportionally affecting low-income consumers. Previous studies have shown that in practice, manufacturer costs and retail prices have not gone up following required increases in energy efficiency, but instead came down while efficiency increased.^{footnote 20} Despite this evidence, NRCan’s cost-benefit analysis takes a conservative approach and assumes that incremental manufacturer costs are passed on to consumers and remain constant over the analysis period.

The market study suggested that no adverse impact on consumers of air conditioners and heat pumps is expected based on sex, gender, race, ethnicity, age, mental or physical disability and whether a population is urban, rural, or remote. However, the NRCan study on intersectional gender-based issues confirmed, based on census data, that Canadian groups which are disproportionally experiencing low-income levels include women, racialized people, Indigenous peoples, single-parent families, those under 30 years old and 65 years old and older, persons with disabilities, and those with a high school degree or less (including intersections of these identity factors). Therefore, based on this classification, impacts on low-income consumers can also impact Canadians based on the identity factors sex, gender, race, ethnicity, age, and mental or physical disability. NRCan takes the conservative assumption that any impacts of increased costs on low-income people would also impact these other intersecting identity factors.

Another factor determining access to more energy efficient products is the households’ ability to control or modify their dwelling. In rental housing, the landlord is often the main decision-maker and the renters have relatively less ability to implement energy efficiency decisions. As a result of the Amendment, landlords who will have to replace air conditioners and/or heat pumps will have to purchase more efficient products. Canadians living in low-income households that are renting and paying the utility bills will then benefit from lower energy consumption and associated costs. The money saved could be used for other needs. However, renters whose utility costs are included in their rent may not benefit from lower energy consumption if the landlord purchases more energy-efficient products and does not pass on these energy cost savings to tenants in the form of lower rent.

Through the pre-consultation, stakeholders were asked to comment on the potential implications for any subset of the population, including gender-based analysis plus and indigenous considerations. No issues were raised associated with any of these groups.

Implementation, compliance and 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 the requirements for central air conditioners and central heat pumps which come into force upon publication in the Canada Gazette, Part II. The requirements will apply to the prescribed products based on their date of manufacture or import or interprovincial shipment. Stakeholders can refer to the Guide to Canada’s Energy Efficiency Regulations which will be updated by the coming into force dates of the Amendment.

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 the Amendment. The main features of these procedures are explained below.

Verification marking and energy efficiency prescribed information

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. This report is required for each product model before the first importation or interprovincial shipment.

Prescribed information pertaining to imports and monitoring

Existing NRCan procedures for the collection of information for commercial imports of prescribed products will apply to products affected by the Regulations. These procedures involve crosschecking required import data received from customs release documents with the energy efficiency reports that dealers have submitted to NRCan. This crosschecking ensures that the compliance of prescribed 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.

Contact

Ben Copp
Senior Director
Demand Policy and Analysis Division
Office of Energy Efficiency
Low Carbon Energy Sector
Natural Resources Canada
580 Booth Street
Ottawa, Ontario
K1A 0E4
Telephone: 613‑614‑4151
Email: equipment-equipement@nrcan-rncan.gc.ca

Footnotes

Footnote a

S.C. 2009, c. 8, s. 5

Return to footnote a referrer

Footnote b

S.C. 1992, c. 36

Return to footnote b referrer

Footnote 1

SOR/2016-311

Return to footnote 1 referrer

Footnote 2

Current data from Natural Resources Canada’s (NRCan) Comprehensive Energy Use Database and from Environment and Climate Change Canada’s National Inventory Report: Greenhouse Gas Sources and Sinks In Canada of 2018, where the 18% includes electricity-related emissions.

Return to footnote 2 referrer

Footnote 3

This document always uses the Canadian terminology (energy efficiency and testing standards) when referring to standards of other jurisdictions, in particular the U.S.’s energy conservation standards and test procedures.

Return to footnote 3 referrer

Footnote 4

Build Smart – Canada’s Buildings Strategy: A Key Driver of the Pan-Canadian Framework on Clean Growth and Climate Change 2017.

Return to footnote 4 referrer

Footnote 5

2017-01-06 Energy Conservation Program: Energy Conservation Standards for Residential Central Air Conditioners and Heat Pumps; Direct final rule.

Return to footnote 5 referrer

Footnote 6

In the Energy Efficiency Act, ministerial regulations are under subsection 20.1(2): “The Minister may, by regulation — with respect to energy-using products or classes of energy-using products that are specified in regulations made by the Governor in Council under paragraph 25(c) — amend regulations made under paragraph 20(1)(b) or (d) or 25(b) for the purpose of maintaining harmonization between a requirement set out in those regulations and that of a jurisdiction.”

Return to footnote 6 referrer

Footnote 7

“Consumers” in the document include households, businesses, institutions and industries.

Return to footnote 7 referrer

Footnote 8

Depending on the product, under the Regulations, dealers may be responsible for ensuring that an EnerGuide label, a lighting product label or walk-in refrigeration nameplate is affixed to each unit. In addition, all energy-using products must carry an energy efficiency verification mark, apart from some exceptions.

Return to footnote 8 referrer

Footnote 9

Achievements of appliance energy efficiency standards and labelling programs: A GLOBAL ASSESSMENT IN 2016 (PDF)

Return to footnote 9 referrer

Footnote 10

Achievements of Energy Efficiency Appliance and Equipment Standards and Labelling Programmes (PDF)

Return to footnote 10 referrer

Footnote 11

This goal concerns all products in the Amendment, with a small exception to make mandatory the cold testing point for heat pumps to ensure adequate performance in the Canadian climate. Although the cold testing point is optional by the United States, it will be required for cold climate heat pumps to be certified under the voluntary U.S. Environmental Protection Agency ENERGY STAR® program starting on January 1, 2023. For more information, see the program document requirements Central Air Conditioner and Air Source Heat Pump Specification Version 6 (Version 6.1, Rev. January – 2022).

Return to footnote 11 referrer

Footnote 12

Specifically, (i) implies that testing and information under the −15 °C (5 °F) test point, which is optional in the United States, will be mandatory in Canada as of January 1, 2025.

Return to footnote 12 referrer

Footnote 13

The Appendix M1 is a testing standard for Central Air Conditioners and Heat Pumps. The standard will come into force on January 1, 2023, in the United States and Canada.

Return to footnote 13 referrer

Footnote 14

Calculated as the value of avoided damages from GHG emission reductions.

Return to footnote 14 referrer

Footnote 15

The −15 °C test point is voluntary under U.S. federal requirements and will be mandatory for cold climate heat pumps under the voluntary ENERGY STAR® for products program starting on January 1, 2023. In the United States, about 40% of the market for air-source heat pumps was certified ENERGY STAR® according to the ENERGY STAR® Unit Shipment and Market Penetration Report Calendar Year 2020 Summary (PDF).

Return to footnote 15 referrer

Footnote 16

Marginal fuels represent the last power plant that is needed to meet the electricity demand at a given time. The costs and emissions from that power plant are used to calculate the reduced emissions owing to the Regulations.

Return to footnote 16 referrer

Footnote 17

Consistent with the discount rate used by the Pan-Canadian Framework on Clean Growth and Climate Change and in accordance with Treasury Board Secretariat recommendations for environmental and health regulations.

Return to footnote 17 referrer

Footnote 18

Historical and projected fuel prices are based on Environment and Climate Change Canada. 2021. Canada’s Greenhouse Gas and Air Pollutant Emissions Projections 2020. Data were obtained through request to Environment and Climate Change Canada.

Return to footnote 18 referrer

Footnote 19

Technical update to Environment and Climate Change Canada’s social cost of greenhouse gas estimates. Since 2016, all federal regulatory analysis involving GHG emissions has relied on SCC values published by Environment and Climate Change Canada. Recent academic literature indicates that previous iterations of the models used to develop the SCC are out of date. The changes needed are largely due to: (1) updates to global population, economic activity, and GHG emission estimates over time; and (2) new research on climate science and the damages caused by climate change. As a result, the current SCC values used for Canadian regulatory analysis likely underestimate climate change damages to society and the social benefits of reducing GHG emissions. Environment and Climate Change Canada is in the process of updating its SCC estimates, but results are not yet available.

Return to footnote 19 referrer

Footnote 20

Achievements of Energy Efficiency Appliance and Equipment Standards and Labelling Programs: 2021 update (PDF).

Return to footnote 20 referrer

Footnote 21

The Organisation for Economic Co-operation and Development, in the International Regulatory Co-operation: Addressing Global Challenges (PDF) report, categorizes the major benefits of international regulatory harmonization as the economic gains from reduced costs on economic activity and increased trade and investment flows; the ability to manage risks across borders; administrative efficiencies associated with greater transparency and work sharing; and increased knowledge among peers from information sharing. The challenges are similarly categorized as the costs associated with coordinating work across borders; sovereignty issues and a lack of domestic regulatory flexibility; political influences on regulatory cooperation; and implementation issues. These impacts are beyond the scope of this analysis.

Return to footnote 21 referrer

Footnote 22

Although the Amendment will increase the energy efficiency standards of products primarily used in the residential sector, these products might be used elsewhere, such as in small commercial applications.

Return to footnote 22 referrer

Footnote 23

Part Two — Chapter 3: Assessing the Electricity System Benefits of Energy Efficiency and Renewable Energy (PDF).

Return to footnote 23 referrer

Footnote 24

Data may vary from product to product. See the Searchable product lists of products compliant with Canada’s energy efficiency requirements.

Return to footnote 24 referrer

Footnote 25

Canadian Business Counts, with employees, June 2018 by NAICS codes, are provided within the Regulatory Cost Calculator which references Statistics Canada.

Return to footnote 25 referrer

Footnote 26

In the report entitled Energy Conservation Program: Certification and Enforcement-Import Data Collection, the U.S. DOE estimates an annual burden of 0.03 hours (108 seconds) per basic model by the submitter to obtain and enter the 5 data elements required, which represents approximately 22 seconds per data element.

Return to footnote 26 referrer

Footnote 27

NRCan estimated increases of about 2.7% for central air conditioners and 2.3% for central heat pumps.

Return to footnote 27 referrer

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17): SOR/2022-265

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17)

Amendments

Specified Energy-Using Products

Split System Central Air Conditioners

Single Package Central Heat Pumps

Split System Central Heat Pumps

Definitions

Coming into Force

REGULATORY IMPACT ANALYSIS STATEMENT

Executive summary

Issues

Background

Objective

Description

(a) Updates energy efficiency and testing standards for split system central air conditioners and central heat pumps

Split system central air conditioners (Division 2, Subdivision F)

Split system central heat pumps (Division 3, Subdivision G)

(b) Updates energy efficiency and testing standards for single package central air conditioners and central heat pumps

Single package central air conditioners (Division 2, Subdivision D)

Single package central heat pumps (Division 3, Subdivision E)

(c) Makes minor changes to the scope, prescribed information, energy efficiency standards or testing standards for other currently regulated products

Electric water heaters (Division 6, Subdivision A)

Gas-fired storage water heaters (Division 6, Subdivision B)

Oil-fired water heaters (Division 6, Subdivision C)

Lamps and lamp ballasts (Division 7, Interpretation and Labelling)

Fluorescent lamp ballasts (Division 7, Subdivision F)

Ceiling fan light kits (Division 8, Subdivision C)

Walk-in freezer and walk-in cooler components (Division 10, Subdivision D)

Electric motors (Division 12, Subdivision A)

Small electric motors (Division 12, Subdivision B)

(d) Specifies 60 energy-using products to ensure the Minister can exercise the ministerial regulations authority to maintain harmonization of regulatory requirements with another jurisdiction

Regulatory development

Consultation

Pre-consultation summary

Canada Gazette, Part I, consultation

Heat pumps and air conditioners

Electric water heaters

Gas-fired storage water heaters

Oil-fired water heaters

Ministerial Authority

Modern treaty obligations and Indigenous engagement and consultation

Instrument choice

Maintaining the baseline scenario (no action)

Developing voluntary mechanisms for central air conditioners and central heat pumps

Regulatory actions (the Amendment)

Regulatory analysis

Benefits and costs

Summary

Table b16 note(s)

Consultations — cost-benefit analysis

Methodology, assumptions, and data

Benchmarks

Methodology to estimate costs

Methodology to estimate benefits

Assumptions

Data collection and sources

Cost-benefit statements

Table b17 note(s)

Table b18 note(s)

Table b19 note(s)

Table b20 note(s)

Additional benefits and costs

Sensitivity analysis

Table b22 note(s)

Small business lens

Small business lens summary

One-for-one rule

Familiarization with the Amendment

Submitting energy efficiency reports

Regulatory cooperation and alignment

Strategic environmental assessment

Gender-based analysis plus (GBA+)

Implementation, compliance and enforcement, and service standards

Verification marking and energy efficiency prescribed information

Prescribed information pertaining to imports and monitoring

Direct fieldwork: market survey and product testing

Contact