Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15): SOR/2019-164

Canada Gazette, Part II, Volume 153, Number 12

Registration
SOR/2019-164 June 3, 2019

ENERGY EFFICIENCY ACT

P.C. 2019-598 May 31, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to sections 20 footnote a and 25 of the Energy Efficiency Act footnote b, makes the annexed Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15).

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15)

Amendments

1 The heading of Division 4 of Part 2 of the Energy Efficiency Regulations, 2016 footnote 1 is replaced by the following:

Furnaces, Fireplaces, Unit Heaters and Recovery Ventilators

2 The definition FER in section 256.1 of the Regulations is replaced by the following:

FER means, in respect of a gas furnace, an oil-fired furnace or an electric furnace, the fan energy rating, which is the annual electrical energy consumption of the furnace fan normalized by annual fan operating hours and the product’s maximum airflow (Qmax). (FER)

3 (1) The definitions CSA 2.3 and gas furnace in section 257 of the Regulations are replaced by the following:

CSA 2.3 means the CSA standard ANSI Z21.47-2016/ CSA 2.3-2016 entitled Gas-Fired Central Furnaces. (CSA 2.3)

gas furnace means an automatic operating gas-fired central forced air furnace that uses propane or natural gas and has an input rate of not more than 117.23 kW (400,000 Btu/h). It does not include a furnace for a park model trailer or a recreational vehicle. (générateur d’air chaud à gaz)

through-the-wall means, with respect to a gas furnace, one that is designed and marketed to be installed in an opening in an exterior wall that is fitted with a weatherized sleeve. (mural)

(2) Section 257 of the Regulations is amended by adding the following in alphabetical order:

gas furnace for relocatable buildings means a gas furnace that is intended for use in a temporary modular building that can be relocated from one site to another and is marked for use in relocatable buildings. (générateur d’air chaud à gaz pour bâtiments relocalisables)

manufactured home means a factory-built, single- or multiple-section, one-storey dwelling that

replacement non-condensing gas furnace means a non-condensing gas furnace that is marked for use as a replacement for a non-condensing gas furnace in a manufactured home. (générateur d’air chaud à gaz sans condensation de remplacement)

4 Subsection 258(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5 and 259, a gas furnace is not considered to be an energy-using product if

5 (1) The portion of item 2.1 of the table to section 259 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

2.1

Gas furnaces, other than gas furnaces for relocatable buildings or replacement non-condensing gas furnaces, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), use single-phase electric current and do not have an integrated cooling component

(2) The portion of item 2.1 of the table to section 259 of the Regulations in column 3 is replaced by the following:

Item

Column 3

Energy Efficiency Standard

2.1

Annual fuel utilization efficiency ≥ 95%

FER ≤ FER for product class “Non-Weatherized, Condensing Gas Furnace Fan (NWG-C)”, set out in 10 C.F.R. §430.32(y)

(3) The portion of item 5 of the table to section 259 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

5

Gas furnaces, other than gas furnaces for relocatable buildings or replacement non-condensing gas furnaces, that are through-the-wall, have an input rate of ≤ 65.92 kW (225,000 Btu/h), use single-phase electric current and have an integrated cooling component

(4) The portion of item 5 of the table to section 259 of the Regulations in column 4 is replaced by the following:

Item

Column 4

Period of Manufacture

5

On or after December 31, 2012 and before January 1, 2024

(5) The portion of item 5.1 of the table to section 259 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

5.1

Gas furnaces, other than gas furnaces for relocatable buildings or a replacement non-condensing gas furnace, that are through-the-wall, have an input rate of ≤ 65.92 kW (225,000 Btu/h), use single-phase electric current and have an integrated cooling component

(6) The portion of item 5.1 of the table to section 259 of the Regulations in column 3 is replaced by the following:

Item

Column 3

Energy Efficiency Standard

5.1

Annual fuel utilization efficiency ≥ 90%

FER ≤ FER for product class “Non-Weatherized, Condensing Gas Furnace Fan (NWG-C)”, set out in 10 C.F.R. §430.32(y)

(7) The portion of item 5.1 of the table to section 259 of the Regulations in column 4 is replaced by the following:

Item

Column 4

Period of Manufacture

5.1

On or after January 1, 2024

(8) The table to section 259 of the Regulations is amended by adding the following in numerical order:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

8

Gas furnaces for relocatable buildings

CSA P.2 for annual fuel utilization efficiency

10 C.F.R. Appendix AA, for fan energy rating

Annual fuel utilization efficiency ≥ 80%

FER ≤ FER for product class “Mobile Home Non-Weatherized, Non-Condensing Gas Furnace Fan (MH-NWG-NC)”, set out in 10 C.F.R. §430.32(y)

On or after July 3, 2019

9

Replacement non-condensing gas furnaces

CSA P.2 for annual fuel utilization efficiency

10 C.F.R. Appendix AA, for fan energy rating

Annual fuel utilization efficiency ≥ 80%

FER ≤ FER for product class “Mobile Home Non-Weatherized, Non-Condensing Gas Furnace Fan (MH-NWG-NC)”, set out in 10 C.F.R. §430.32(y)

On or after July 3, 2019

6 (1) The portion of item 2 of the table to section 260 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

2

Gas furnaces, other than those that are through-the-wall, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), that use single-phase electric current and that are manufactured on or after December 31, 2009 and before July 3, 2019

(2) The portion of item 2.1 of the table to section 260 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

2.1

Gas furnaces, other than those that are through-the-wall, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), that use single-phase electric current and that are manufactured on or after July 3, 2019

(3) The portion of item 2.1 of the table to section 260 of the Regulations in column 3 is amended by striking out “and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following after paragraph (g):

Item

Column 3

Information

2.1

(h) if applicable, information that indicates whether product is gas furnace for relocatable buildings or is replacement non-condensing gas furnace.

7 The table to section 260 of the Regulations is amended by adding the following after item 2.1:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

2.2

Gas furnaces that are through-the-wall, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), that use single-phase electric current, that have an integrated cooling component and that are manufactured on or after December 31, 2009 and before January 1, 2024

CSA P.2 for information set out in paragraphs (a) to (c)

  • (a) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (b) annual fuel utilization efficiency;
  • (c) type of fuel used; and
  • (d) if applicable, information that indicates whether product is gas furnace for relocatable buildings or is replacement non-condensing gas furnace.

2.3

Gas furnaces that are through-the-wall, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), that use single-phase electric current, that have an integrated cooling component and that are manufactured on or after January 1, 2024

CSA P.2 for information set out in paragraphs (a) to (c)

10 C.F.R. Appendix AA for information set out in paragraphs (d) and (e)

  • (a) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (b) annual fuel utilization efficiency;
  • (c) type of fuel used;
  • (d) FER, expressed in W/472 L/s
    (W/1,000 ft³/min);
  • (e) product’s maximum airflow (Qmax), expressed in L/s (ft³/min); and
  • (f) if applicable, information that indicates whether product is gas furnace for relocatable buildings or is replacement non-condensing gas furnace.

8 (1) The definition gas fireplace in section 265 of the Regulations is replaced by the following:

gas fireplace means a decorative gas fireplace or a heating gas fireplace. (foyer à gaz)

(2) Section 265 of the Regulations is amended by adding the following in alphabetical order:

decorative gas fireplace means a vented fireplace that is fuelled by natural gas or propane, is marked for decorative use only and is not equipped with a thermostat or intended for use as a heater. (foyer à gaz décoratif)

heating gas fireplace means a vented fireplace that is fuelled by natural gas or propane and is not a decorative gas fireplace. (foyer à gaz de chauffage)

9 Subsection 266(2) of the Regulations is replaced by the following:

Limits

(2) However, a gas fireplace is not considered to be an energy-using product

10 The Regulations are amended by adding the following after section 266:

Energy efficiency standards

266.1 (1) The energy efficiency standards set out in column 3 of the table to this section apply to gas fireplaces described in column 1 that are manufactured during the periods set out in column 4.

Testing standard

(2) A gas fireplace 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 gas fireplace as defined in section 265.

TABLE

Item

Column 1


Energy-using Product

Column 2


Standard

Column 3


Energy Efficiency Standard

Column 4

Period of Manufacture

1

Decorative gas fireplaces

N\A

The product must be capable of

  • (a) automatically extinguishing pilot flame when main gas burner flame is established;
  • (b) automatically extinguishing pilot flame when main gas burner flame is extinguished;
  • (c) if it has the capability of being manually switched to a mode of continuous pilot operation, preventing pilot flame from burning continuously for more than seven days; or
  • (d) in absence of any automatic or manual adjustment to main gas burner flame height or appearance, preventing any ignition source for the main gas burner flame from operating continuously for more than seven days.

Must have a direct vent configuration, unless it is marked for replacement use only.

On or after January 1, 2020

2

Heating gas fireplaces

CSA P.4.1-15 for fireplace efficiency

Fireplace efficiency ≥ 50%

The product must be capable of

  • (a) automatically extinguishing pilot flame when main gas burner flame is established;
  • (b) automatically extinguishing pilot flame when main gas burner flame is extinguished;
  • (c) if it has the capability of being manually switched to a mode of continuous pilot operation, preventing pilot flame from burning continuously for more than seven days; or
  • (d) in absence of any automatic or manual adjustment to main gas burner flame height or appearance, preventing any ignition source for the main gas burner flame from operating continuously for more than seven days.

On or after January 1, 2020

11 (1) Paragraph 267(1)(e) of the Regulations is replaced by the following:

(2) Subsection 267(1) of the Regulations is amended by adding the following after paragraph (f):

12 The Regulations are amended by adding the following after section 271:

SUBDIVISION E

Electric Furnaces

Definition of electric furnace

272 In this Subdivision, electric furnace means an automatic operating central forced air furnace that uses single-phase electric current to heat one or more electrical resistance heating elements and has an input rate of not more than 65.92 kW (225,000 Btu/h). It does not include an electric furnace that

Energy-using product

273 (1) An electric furnace is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 274, an electric furnace is not considered to be an energy-using product unless it is manufactured on or after July 3, 2019.

Energy efficiency standard

274 (1) The energy efficiency standard that applies to an electric furnace is that its FER must be less than or equal to the FER for product class “Non-Weatherized, Electric Furnace/Modular Blower Fan”, set out in 10 C.F.R. §430.32(y).

Testing standard

(2) An electric furnace complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix AA that are applicable to an electric furnace as defined in section 272.

Information

275 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with 10 C.F.R. Appendix AA and provided to the Minister in respect of an electric furnace:

SUBDIVISION F

Recovery Ventilators

Interpretation

Definitions

276 The following definitions apply in this Subdivision.

CSA C439-18 means the CSA standard CAN/CSA- C439-18 entitled Laboratory methods of test for rating the performance of heat/energy-recovery ventilators. (CSA C439-18)

energy-recovery ventilator means a factory-built packaged unit that has fans or blowers, has a maximum rated airflow of not more than 142 L/s (300 ft3/min) at 0°C and transfers heat and moisture between two isolated airstreams. (ventilateur-récupérateur d’énergie)

heat-recovery ventilator means a factory-built packaged unit that has fans or blowers, has a maximum rated airflow of not more than 142 L/s (300 ft3/min) at 0°C and transfers heat between two isolated airstreams. (ventilateur-récupérateur de chaleur)

sensible heat recovery efficiency means, in respect of an energy-recovery ventilator or a heat-recovery ventilator, the ratio of the net sensible energy recovered by the unit’s supply airstream, as adjusted to account for the unit’s external and internal energy gains and losses, to the maximum sensible energy that would be recovered if the unit had an infinite transfer area. (efficacité de récupération de chaleur sensible)

Energy-recovery Ventilators

Energy-using product

277 (1) An energy-recovery ventilator is prescribed as an energy-using product.

Limit

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

Information

278 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C439-18 and be provided to the Minister in respect of an energy-recovery ventilator:

Heat-recovery Ventilators

Energy-using product

279 (1) A heat-recovery ventilator is prescribed as an energy-using product.

Limit

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

Information

280 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C439-18 and be provided to the Minister in respect of a heat-recovery ventilator:

13 Section 314 of the Regulations is amended by adding the following in alphabetical order:

CSA P.2 means the CSA standard CAN/CSA-P.2-13 entitled Testing Method for Measuring the Annual Fuel Utilization Efficiency of Residential Gas-Fired or Oil-Fired Furnaces and Boilers. (CSA P.2)

10 C.F.R. Appendix A means Appendix A to Subpart E, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Combustion Efficiency of Commercial Packaged Boilers, as amended from time to time. (appendice A 10 C.F.R.)

14 (1) The definition CSA P.2 in section 315 of the Regulations is repealed.

(2) The definition gas boiler in section 315 of the Regulations is replaced by the following:

gas boiler means a boiler that uses exclusively propane or natural gas, is intended for application in a low pressure steam, or hot water, central heating system and has an input rate of not more than 2 930.71 kW (10,000,000 Btu/h). (chaudière à gaz)

15 The Regulations are amended by adding the following after section 315:

Type

315.1 For the purpose of these Regulations, a gas boiler is one of the following types:

16 Subsection 316(2) of the Regulations is replaced by the following:

Limits

(2) However, a gas boiler is not considered to be an energy-using product

17 Section 317 of the Regulations is replaced by the following:

Energy efficiency standards — household

317 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household gas boilers described in column 1 that are manufactured during the periods set out in column 4.

Testing standard — household

(2) A household gas boiler 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 boiler as defined in section 315.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial gas boilers described in column 1 that are manufactured on or after January 1, 2025.

Testing standard — commercial

(4) A commercial gas boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to a gas boiler as defined in section 315.

TABLE 1

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Period of Manufacture

1

Household gas boilers that are intended for low pressure steam systems

CGA P.2

Annual fuel utilization efficiency ≥ 75%

On or after December 31, 1998 and before September 1, 2010

2

Household gas boilers that are intended for low pressure steam systems

CSA P.2 for annual fuel utilization efficiency

Annual fuel utilization efficiency ≥ 80%

No continuously burning pilot light

On or after September 1, 2010 and before January 15, 2021

2.1

Household gas boilers that are intended for low pressure steam systems

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 82%

No continuously burning pilot light

Standby power ≤ 8 W

Off-mode power ≤ 8 W

On or after January 15, 2021

3

Household gas boilers that are intended for hot water systems

CGA P.2

Annual fuel utilization efficiency ≥ 80%

On or after December 31, 1998 and before September 1, 2010

4

Household gas boilers that are intended for hot water systems

CSA P.2 for annual fuel utilization efficiency

Annual fuel utilization efficiency ≥ 82%

No continuously burning pilot light

On or after September 1, 2010 and before September 1, 2012

5

Household gas boilers that are intended for hot water systems and have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency

Annual fuel utilization efficiency ≥ 82%

No continuously burning pilot light

On or after September 1, 2012 and before July 1, 2023

5.1

Household gas boilers that are intended for hot water systems and have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 90%

No continuously burning pilot light

Standby power ≤ 9 W

Off-mode power ≤ 9 W

On or after July 1, 2023

6

Household gas boilers that are intended for hot water systems and do not have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency

Annual fuel utilization efficiency ≥ 82%

No continuously burning pilot light

Equipped with automatic water temperature adjustment device and not operable without the device

On or after September 1, 2012 and before July 1, 2023

7

Household gas boilers that are intended for hot water systems and do not have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 90%

No continuously burning pilot light

Equipped with automatic water temperature adjustment device and not operable without the device

Standby power ≤ 9 W

Off-mode power ≤ 9 W

On or after July 1, 2023

TABLE 2

Item

Column 1


Energy-using Product

Column 2

Energy Efficiency Standard

1

Commercial gas boilers that have an input rate of
≥ 87.92 kW (300,000 Btu/h) but ≤ 732.68 kW (2,500,000 Btu/h) and are intended for hot water systems

Thermal efficiency
≥ 90%

2

Commercial gas boilers that have an input rate of
> 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and are intended for hot water systems

Combustion efficiency ≥ 90%

3

Commercial gas boilers that have an input rate of
≥ 87.92 kW (300,000 Btu/h) but ≤ 732.68 kW (2,500,000 Btu/h) and are intended for low pressure steam systems

Thermal efficiency
≥ 81%

4

Commercial gas boilers that have an input rate of > 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and are intended for low pressure steam systems

Thermal efficiency
≥ 82%

18 (1) The portion of item 1 of the table to section 318 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

1

Household gas boilers manufactured on or after December 31, 1998 and before September 1, 2010

(2) Item 2 of the table to section 318 of the Regulations is replaced by the following:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

2

Household gas boilers manufactured on or after September 1, 2010 and before January 15, 2021 and intended for low pressure steam systems

CSA P.2

  • (a) type of fuel used;
  • (b) maximum heat input and output nominal capacities, in kW (Btu/h); and
  • (c) annual fuel utilization efficiency.

(3) The table to section 318 of the Regulations is amended by adding the following after item 2:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

3

Household gas boilers manufactured on or after January 15, 2021 and intended for low pressure steam systems

CSA P.2

  • (a) type of fuel used;
  • (b) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (c) annual fuel utilization efficiency;
  • (d) standby power, in W; and
  • (e) off-mode power, in W.

4

Household gas boilers, other than those intended for low pressure steam systems, manufactured on or after September 1, 2010 and before July 1, 2023

CSA P.2 for information set out in paragraphs (a) to (c)

  • (a) type of fuel used;
  • (b) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (c) annual fuel utilization efficiency; and
  • (d) if product is manufactured on or after September 1, 2012 and before July 1, 2023,
    • (i) information that indicates whether product has tankless domestic water heating coils, and
    • (ii) type of automatic water temperature adjustment device it has, if any.

5

Household gas boilers, other than those intended for low pressure steam systems, manufactured on or after July 1, 2023

CSA P.2 for information set out in paragraphs (a) to (e)

  • (a) type of fuel used;
  • (b) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (c) annual fuel utilization efficiency;
  • (d) standby power, in W;
  • (e) off-mode power, in W;
  • (f) information that indicates whether product has tankless domestic water heating coils; and
  • (g) type of automatic water temperature adjustment device it has, if any.

6

Commercial gas boilers manufactured on or after January 1, 2025

10 C.F.R. Appendix A

  • (a) type of central heating system for which product is intended;
  • (b) maximum heat input nominal capacity, in kW (Btu/h); and
  • (c) thermal efficiency or, if product has an input rate of > 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and is intended for hot water systems, combustion efficiency.

19 The portion of the definition oil-fired boiler before paragraph (a) in section 319 of the Regulations is replaced by the following:

oil-fired boiler means a boiler that is intended for application in a low pressure steam, or hot water, central heating system, has an input rate of less than 2 930.71 kW (10,000,000 Btu/h) and is

20 The Regulations are amended by adding the following after section 319:

Type

319.1 For the purpose of these Regulations, an oil-fired boiler is one of the following types:

21 Subsection 320(2) of the Regulations is replaced by the following:

Limits

(2) However, an oil-fired boiler is not considered to be an energy-using product

22 Section 321 of the Regulations is replaced by the following:

Energy efficiency standards — household

321 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household oil-fired boilers described in column 1 that are manufactured during the periods set out in column 4.

Testing standard — household

(2) A household oil-fired boiler 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 an oil-fired boiler as defined in section 319.

Energy-efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial oil-fired boilers described in column 1 that are manufactured on or after January 1, 2025.

Testing Standard — commercial

(4) A commercial oil-fired boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to an oil-fired boiler as defined in section 319.

TABLE 1

Item

Column 1


Energy-using Product

Column 2


Standard

Column 3

Energy Efficiency Standard

Column 4


Period of Manufacture

1

Household oil-fired boilers

CSA B212

Seasonal energy utilization efficiency ≥ 80%

On or after December 31, 1998 and before September 1, 2010

2

Household oil-fired boilers that are intended for low pressure steam systems

ASHRAE 103

Annual fuel utilization efficiency ≥ 82%

On or after September 1, 2010 and before January 15, 2021

2.1

Household oil-fired boilers that are intended for low pressure steam systems

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 85%

Standby power ≤ 11 W

Off-mode power
≤ 11 W

On or after January 15, 2021

3

Household oil-fired boilers that are intended for hot water systems

ASHRAE 103

Annual fuel utilization efficiency ≥ 84%

On or after September 1, 2010 and before September 1, 2012

4

Household oil-fired boilers that are intended for hot water systems and have tankless domestic water heating coils

ASHRAE 103

Annual fuel utilization efficiency ≥ 84%

On or after September 1, 2012 and before January 15, 2021

4.1

Household oil-fired boilers that are intended for hot water systems and have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 86%

Standby power
≤ 11 W

Off-mode power
≤ 11 W

On or after January 15, 2021

5

Household oil-fired boilers that are intended for hot water systems and do not have tankless domestic water heating coils

ASHRAE 103 for annual fuel utilization efficiency

Annual fuel utilization efficiency‍ ≥ 84%

Equipped with automatic water temperature adjustment device and not operable without the device

On or after September 1, 2012 and before January 15, 2021

6

Household oil-fired boilers that are intended for hot water systems and do not have tankless domestic water heating coils

CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power

Annual fuel utilization efficiency ≥ 86%

Equipped with automatic water temperature adjustment device and not operable without the device

Standby power
≤ 11 W

Off-mode power
≤ 11 W

On or after January 15, 2021

TABLE 2

Item

Column 1


Energy-using Product

Column 2

Energy Efficiency Standard

1

Commercial oil-fired boilers that have an input rate of ≥ 87.92 kW (300,000 Btu/h) but ≤ 732.68 kW (2,500,000 Btu/h) and are intended for hot water systems

Thermal efficiency ≥ 87%

2

Commercial oil-fired boilers that have an input rate of > 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and are intended for hot water systems

Combustion efficiency ≥ 88%

3

Commercial oil-fired boilers that have an input rate of ≥ 87.92 kW (300,000 Btu/h) but ≤ 732.68 kW (2,500,000 Btu/h) and are intended for low pressure steam systems

Thermal efficiency ≥ 84%

4

Commercial oil-fired boilers that have an input rate of > 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and are intended for low pressure steam systems

Thermal efficiency ≥ 85%

23 (1) The portion of items 1 and 2 of the table to section 322 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

1

Household oil-fired boilers manufactured on or after December 31, 1998 and before September 1, 2010

2

Household oil-fired boilers manufactured on or after September 1, 2010 and before January 15, 2021

(2) The table to section 322 of the Regulation is amended by adding the following after item 2:

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

3

Household oil-fired boilers manufactured on or after January 15, 2021

CSA P.2 for information set out in paragraphs (a) to (e)

  • (a) type of central heating system for which product is intended;
  • (b) maximum heat input and output nominal capacities, in kW (Btu/h);
  • (c) annual fuel utilization efficiency;
  • (d) standby power, in W;
  • (e) off-mode power, in W;
  • (f) information that indicates whether product has tankless domestic water heating coils; and
  • (g) type of automatic water temperature adjustment device product has, if any.

4

Commercial oil-fired boilers manufactured on or after January 1, 2025

10 C.F.R. Appendix A

  • (a) type of central heating system for which product is intended;
  • (b) maximum heat input nominal capacity, in kW (Btu/h); and
  • (c) thermal efficiency or, if product has an input rate of > 732.68 kW (2,500,000 Btu/h) but ≤ 2 930.71 kW (10,000,000 Btu/h) and is intended for hot water systems, combustion efficiency.

24 Section 369 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix A means Appendix A to Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Standby Loss of Gas-Fired and Oil-Fired Storage Water Heaters and Storage-Type Instantaneous Water Heaters, as amended from time to time. (appendice A 10 C.F.R.)

25 (1) The definition electric water heater in section 370 of the Regulations is replaced by the following:

electric water heater means a stationary electric storage tank water heater that is intended for use on a pressurized water system and that has a Vr of at least 50 L (13.21 US gallons). (chauffe-eau électrique)

(2) Section 370 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix B means Appendix B to Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Standby Loss of Electric Storage Water Heaters and Storage-Type Instantaneous Water Heaters, as amended from time to time. (appendice B 10 C.F.R.)

26 The Regulations are amended by adding the following after section 370:

Type

370.1 For the purpose of these Regulations, an electric water heater is one of the following types:

27 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 for the purposes of sections 4, 5 and 372 unless

28 Subsection 372(2) of the Regulations is replaced by the following:

Testing standard

(2) An electric water heater described in column 1 complies with the energy efficiency standard set out in column 3 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 an electric water heater as defined in section 370.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

1

Household electric water heaters that have a bottom inlet and a Vr of ≥ 50 L but ≤ 270 L

CSA C191-04

Standby loss, in W, ≤ 40 + 0.2 Vr

2

Household electric water heaters that have a bottom inlet and a Vr of > 270 L but ≤ 454 L

CSA C191-04

Standby loss, in W, ≤ 0.472 Vr - 33.5

3

Household electric water heaters that have a top inlet and a Vr of ≥ 50 L but ≤ 270 L

CSA C191-04

Standby loss, in W, ≤ 35 + 0.2 Vr

4

Household electric water heaters that have a top inlet and a Vr of > 270 L but ≤ 454 L

CSA C191-04

Standby loss, in W, ≤ 0.472 Vr - 38.5

5

Commercial electric water heaters

10 C.F.R. Appendix B

Standby loss, in %/hr ≤ 0.3 + 102.2/Vs

29 Section 373 of the Regulations is replaced by the following:

Information

373 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 electric water heater described in column 1.

TABLE

Item

Column 1

Energy-using Product

Column 2

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) Vr;
  • (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 manufactured on or after January 1, 2020

10 C.F.R. Appendix B

  • (a) Vr;
  • (b) Vs;
  • (c) standby loss, in %/hr; and
  • (d) input rate, in kW.

30 (1) The definition gas-fired storage water heater in section 374 of the Regulations is replaced by the following:

gas-fired storage water heater means a stationary gas-heated water container that uses propane or natural gas for fuel and has a Vr of at least 76 L (20 US gallons). (chauffe-eau à réservoir alimenté au gaz)

(2) Section 374 of the Regulations is amended by adding the following in alphabetical order:

replacement unit means a commercial gas-fired storage water heater that is marked for replacement installations only. (unité de remplacement)

31 The Regulations are amended by adding the following after section 374:

Type

374.1 For the purpose of these Regulations, a gas-fired storage water heater is one of the following types:

32 Subsection 375(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5 and 376, a gas-fired storage water heater is not considered to be an energy-using product unless

33 (1) Subsections 376(1) and (2) of the Regulations are replaced by the following:

Energy-efficiency standards — household

376 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household gas-fired storage water heaters described in column 1 that are manufactured during the periods set out in column 4.

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 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 2 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 10 C.F.R. Appendix A that are applicable to a gas-fired storage water heater as defined in section 374.

(2) The table to section 376 of the Regulations is renumbered as Table 1.

(3) The portion of items 1 to 6 of Table 1 to section 376 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

1

Household gas-fired storage water heaters

2

Household gas-fired storage water heaters

3

Household gas-fired storage water heaters that have a first-hour rating of < 68 L (18 US gallons)

4

Household gas-fired storage water heaters that have a first-hour rating of ≥ 68 L (18 US gallons) but < 193 L (51 US gallons)

5

Household gas-fired storage water heaters that have a first-hour rating of ≥ 193 L (51 US gallons) but < 284 L (75 US gallons)

6

Household gas-fired storage water heaters that have a first-hour rating of > 284 L (75 US gallons)

(4) Section 376 of the Regulations is amended by adding the following after Table 1:

TABLE 2

Item

Column 1

Energy-using Product

Column 2

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 Vr of ≤ 454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180°F)

Uniform energy factor ≥ 0.8107-0.00021 Vs

2

Commercial gas-fired storage water heaters that are 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 Vr of ≤ 454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180°F)

Uniform energy factor ≥ 0.6597-0.00024 Vs

3

Commercial gas-fired storage water heaters, other than those described in items 1 and 2, that are not replacement units

Thermal efficiency ≥ 90%

Standby loss ≤ 0.84(Q/0.234 + 16.57√Vs)

4

Commercial gas-fired storage water heaters, other than those described in items 1 and 2, that are replacement units

Thermal efficiency ≥ 80%

Standby loss ≤ Q/0.234 + 16.57√Vs

34 Section 377 of the Regulations is replaced by the following:

377 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 a gas-fired storage water heater described in column 1.

TABLE

Item

Column 1

Energy-using Product

Column 2

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) Vr; 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 product is in compliance with 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 product is in compliance with 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) Vr;
  • (g) energy factor, if a certification body has verified that 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 Vs, if a certification body has verified that 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 Vr 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

10 C.F.R. Appendix A

  • (a) uniform energy factor;
  • (b) Vr;
  • (c) Vs;
  • (d) input rate, in kW (Btu/h);
  • (e) the type of fuel used; and
  • (f) information that indicates whether product is a replacement unit.

4

Commercial gas-fired storage water heaters, other than those described in item 3, that are manufactured on or after July 1, 2023

10 C.F.R. Appendix A

  • (a) thermal efficiency;
  • (b) standby loss, in W;
  • (c) Vr;
  • (d) Vs;
  • (e) input rate, in kW (Btu/h);
  • (f) the type of fuel used; and
  • (g) information that indicates whether product is a replacement unit.

35 The definition oil-fired water heater in section 378 of the Regulations is replaced by the following:

oil-fired water heater means a water heater that uses oil for fuel and that has a Vr of at least 76 L (20 US gallons). (chauffe-eau à mazout)

36 The Regulations are amended by adding the following after section 378:

Type

378.1 For the purpose of these Regulations, an oil-fired water heater is one of the following types:

37 Subsection 379(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5 and 380, an oil-fired water heater is not considered to be an energy-using product unless

38 (1) Subsections 380(1) and (2) of the Regulations are replaced by the following:

Energy efficiency standards — household

380 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household oil-fired water heaters described in column 1 that are manufactured during the period set out in column 4.

Testing standard — household

(2) An 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 that are applicable to a oil-fired water heater as defined in section 378.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial oil-fired water heaters described in column 1 that are manufactured on or after January 1, 2020.

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 10 C.F.R. Appendix A that are applicable to a oil-fired water heater as defined in section 378.

(2) The table to section 380 of the Regulations is renumbered as Table 1.

(3) The portion of items 1 to 6 of Table 1 to section 380 of the Regulations in column 1 is replaced by the following:

Item

Column 1

Energy-using Product

1

Household oil-fired water heaters

2

Household oil-fired water heaters

3

Household oil-fired water heaters that have a first-hour rating of < 68 L (18 US gallons)

4

Household oil-fired water heaters that have a first-hour rating of ≥ 68 L (18 US gallons) but < 193 L (51 US gallons)

5

Household oil-fired water heaters that have a first-hour rating of ≥ 193 L (51 US gallons) but < 284 L (75 US gallons)

6

Household oil-fired water heaters that have a first-hour rating of > 284 L (75 US gallons)

(4) Section 380 of the Regulations is amended by adding the following after Table 1:

TABLE 2

Item

Column 1


Energy-using Product

Column 2

Energy Efficiency Standard

1

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), have a Vr 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

Uniform energy factor ≥ 0.6740 - 0.00035 Vs

2

Commercial oil-fired storage water heaters, other than those described in item 1, that are manufactured on or after January 1, 2020

Thermal efficiency ≥ 80%

Standby loss ≤ Q/0.234 + 16.57√Vs

39 Section 381 of the Regulations 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 storage water heater described in column 1.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Household oil-fired water heaters that are manufactured on or after February 3, 1995 and before January 1, 2018

CSA B211-00

  • (a) input rate, in kW (Btu/h);
  • (b) recovery efficiency;
  • (c) annual energy consumption, in kJ;
  • (d) first-hour rating, in L;
  • (e) Vr; and
  • (f) energy factor.

2

Household oil-fired water heaters that are manufactured on or after January 1, 2018

CSA B211-00, if a certification body has verified that product is in compliance with energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 380; and

CSA P.3-15, if a certification body has verified that product is in compliance with energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 380.

  • (a) input rate, kW (Btu/h);
  • (b) recovery efficiency;
  • (c) annual energy consumption, in kJ;
  • (d) first-hour rating, in L;
  • (e) Vr;
  • (f) energy factor, and
  • (g) uniform energy factor and Vs, if a certification body has verified that product is in compliance with energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 380.

3

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 Vr 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

10 C.F.R. Appendix A

  • (a) input rate, in kW (Btu/h);
  • b) uniform energy factor;
  • (c) Vr; and
  • (d) Vs.

4

Commercial oil-fired water heaters, other than those described in item 3, 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) Vr;
  • (d) Vs; and
  • (e) standby loss, in W.

40 The Regulations are amended by adding the following after section 381:

SUBDIVISION D

Gas-Fired Instantaneous Water Heaters

Definitions

382 The following definitions apply in this Subdivision.

gas-fired instantaneous water heater means a flow-activated water heater that uses natural gas or propane for fuel, that has a Vr that is less than or equal to 37.85 L (10 US gallons) and has an input rate to Vr ratio of not less than 309 W/L (4,000 Btu/h/US gallon). (chauffe-eau instantané au gaz)

maximum flow rate means, in respect of a gas-fired instantaneous water heater, the maximum litres per minute (gallons per minute) of hot water that can be supplied by the water heater while operating in a steady state and maintaining a nominal temperature rise of 37.3°C (67°F). (débit maximal)

10 C.F.R Appendix C means Appendix C to the Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Standby Loss of Gas-Fired and Oil-Fired Instantaneous Water Heaters and Hot Water Supply Boilers (Other Than Storage-Type Instantaneous Water Heaters), as amended from time to time. (appendice C 10 C.F.R.)

Type

383 For the purpose of these Regulations, a gas-fired instantaneous water heater is one of the following types:

Energy-using product

384 (1) A gas-fired instantaneous water heater is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 385, a gas-fired instantaneous water heater is not considered to be an energy-using product unless

Energy efficiency standards

385 (1) The energy efficiency standards set out in column 3 of the table to this section apply to gas-fired instantaneous water heaters described in column 1 that are manufactured during the period set out in column 4.

Testing standards

(2) A gas-fired instantaneous 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 that are applicable to a gas-fired instantaneous water heater as defined in section 382.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Energy Efficiency Standard

Column 4

Manufacturing Period

1

Household gas-fired instantaneous water heaters that have a maximum flow rate of < 6.4 L/min

CSA P.3-15

Uniform energy factor ≥ 0.86

On or after January 1, 2020

2

Household gas-fired instantaneous water heaters that have a maximum flow rate of ≥ 6.4 L/min

CSA P.3-15

Uniform energy factor ≥ 0.87

On or after January 1, 2020

3

Commercial gas-fired instantaneous water heaters

10 C.F.R. Appendix C

Thermal efficiency
≥ 94%

On or after July 1, 2023

Information

386 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 a gas-fired instantaneous water heater described in column 1.

TABLE

Item

Column 1

Energy-using Product

Column 2

Standard

Column 3

Information

1

Household gas-fired instantaneous water heaters manufactured on or after January 1, 2020

CSA P.3-15

  • (a) uniform energy factor;
  • (b) Vr;
  • (c) the type of fuel used;
  • (d) input rate, in kW (Btu/h); and
  • (e) maximum flow rate.

2

Commercial gas-fired instantaneous water heaters manufactured on or after July 1, 2023

10 C.F.R. Appendix C

  • (a) thermal efficiency;
  • (b) Vr;
  • (c) the type of fuel used;
  • (d) input rate, in kW (Btu/h); and
  • (e) maximum flow rate.

Coming into Force

41 (1) These Regulations, except subsections 5(4) and (7), 6(1) and (2) and section 7, come into force on the day that, in the sixth month after the month in which they are published in the Canada Gazette, Part II, has the same calendar number as the day on which they are published or, if that sixth month has no day with that number, the last day of that sixth month.

(2) Subsections 5(4) and (7), 6(1) and (2) and section 7 come into force on the day on which these Regulations are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

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

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

In 2017, federal, provincial and territorial energy Ministers agreed to collaborate on market transformation in the building sector. Ministers released a series of aspirational goals for energy performance in these three product areas, including a goal that, by 2025, all fuel-burning technologies sold in Canada and used for water heating and primary space heating will be at least 90% efficient. In 2018, the Ministers endorsed these goals, and released a road map footnote 2 identifying key activities that would be needed in order to achieve these aspirational goals.

Description: This amendment to the Energy Efficiency Regulations, 2016 (the Amendment) introduces or updates minimum energy performance standards, testing standards, verification and reporting requirements to improve the energy efficiency of 12 heating and ventilation product categories. The Amendment will affect residential and commercial product categories. Specifically, the Amendment is designed to (a) introduce minimum energy performance standards, testing standards, verification footnote 3 and reporting requirements footnote 4 for seven new product categories; (b) introduce more stringent minimum energy performance standards and update testing standards for four product categories currently regulated federally; and (c) introduce verification requirements, reporting requirements and testing standards for one new product category.

Cost-benefit statement: The Amendment is estimated to result in an annual reduction of 1.36 megatonnes of greenhouse gas emissions in 2040. The benefits and costs associated with the Amendment have been estimated using a methodology consistent with that of previous modifications to the Energy Efficiency Regulations and the Energy Efficiency Regulations, 2016, and of other energy efficiency regulators, such as the United States Department of Energy (U.S. DOE). Based on this methodology, the present value of net benefits of the Amendment is estimated to be $2.7 billion by 2040, with total benefits exceeding total costs by almost three to one. By 2040, the present value of benefits and costs from the Amendment is estimated to be $4.2 billion and $1.5 billion, respectively. On an annualized average basis, this equates to benefits and costs of $265 million and $94 million, respectively.

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

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

“One-for-One” Rule and small business lens: The Amendment is considered an “IN” under the “One-for-One” Rule. It will increase the administrative costs by $72,161 in annualized average to affected businesses, or $19 per business.

The Amendment will also impact 10 small Canadian manufacturers of affected products. The majority of these are not expected to face incremental costs, as they already manufacture compliant products and are demonstrating compliance with similar requirements in other jurisdictions. Small manufacturers that are expected to assume incremental costs have been engaged in consultations, but have not raised any compliance issues associated with the size of their company.

Domestic and international coordination and cooperation: The Amendment has resulted from significant cooperation — both domestically and with the United States — to contribute to national greenhouse gas emission and energy consumption goals. Cooperative efforts between federal, provincial and territorial governments contribute to the positioning of Canada as a global leader in efforts to improve the energy efficiency of equipment used to heat space and water in the building sector.

Domestic regulatory cooperation has been guided by Canada’s First Ministers’ Conference and the Energy and Mines Ministers’ Conference. The Amendment contributes to commitments agreed to by First Ministers in the Pan-Canadian Framework on Clean Growth and Climate Change and Build Smart — Canada’s Building Strategy released by the Energy and Mines Ministers’ Conference. Through these collaborative efforts, the Amendment contributes to the objectives of the Regulatory Reconciliation and Cooperation Table of the Canadian Free Trade Agreement to reduce and eliminate, to the extent possible, barriers to trade within Canada by aligning energy efficiency regulations.

The Amendment is also consistent with the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs Regarding the Canada–United States Regulatory Cooperation Council signed in June 2018. The Amendment seeks to foster alignment of federal regulations where feasible and appropriate, primarily through the use of testing standards already used by the United States to assess product compliance against the minimum energy performance standards.

Background

In 1992, Parliament passed Canada’s Energy Efficiency Act (the Act). The Act provides for the making and enforcement of regulations requiring energy-using products that are imported or shipped inter-provincially for the purpose of sale or lease to meet minimum energy performance standards (MEPS) footnote 5 for product labelling and for the promotion of energy efficiency and alternative energy use, including the collection of data and statistics on energy use.

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

Since most energy-using products must cross provincial or international borders to reach their markets, federally prescribed MEPS are an effective tool to raise the level of energy efficiency in Canada. Prescribed MEPS are one component of Canada’s program to reduce GHG emissions and energy consumption associated with energy-using products because they eliminate the least efficient products from the market. Natural Resources Canada (NRCan) also administers the ENERGY STAR® labelling program, which sets voluntary specifications for 75 product categories and identifies the top 15% to 30% of energy efficiency performers, making the choice of energy-efficient products simple for consumers footnote 6.

When combined, MEPS and labelling programs drive product innovation through cycles of continuous improvement. Increasing the stringency of MEPS eliminates the least efficient products from the market while increasing the levels that must be met for a product to be certified as ENERGY STAR, and encourages manufacturers to produce affordable high-efficiency products that consumers will recognize as good choices to lower their energy costs. MEPS and labelling programs are among the most cost-effective GHG reduction policies and are the cornerstone of energy efficiency and climate change programs in more than 80 countries. footnote 7

Policy context

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

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

This commitment builds on the August 2016 publication of a framework and action plan for energy efficiency standards under the Energy and Mines Ministers’ Conference and collaborative efforts with provinces and territories to implement the Canadian Energy Strategy. Build Smart — Canada’s Buildings Strategy identifies the achievement of this commitment as a core element of the national plan to reduce the energy consumption and GHG emissions from the building sector.

Fully one third of Canada’s emission reduction target could be met through improvements in energy efficiency, which would also make Canadian businesses more competitive internationally and leave more money in consumers’ pockets. footnote 8 These conclusions are supported by an Efficiency Canada report on the economic impacts of energy efficiency, which showed that implementing strong energy efficiency programs will increase Canada’s gross domestic product and job growth. footnote 9

Consistent with these commitments, in 2017, Energy and Mines Ministers agreed to advance measures to accelerate energy efficiency and collaborate on market transformation strategies for windows, space heating and water heating systems in the building sector. footnote 10 Ministers also released a series of short-, medium- and long-term aspirational goals for the energy performance of key equipment technologies. Ministers agreed to work towards a goal that, by 2025, all fuel-burning technologies for primary space heating and water heating for sale in Canada will meet an energy performance of at least 90% (i.e. condensing technology level). Ministers also released Build Smart — Canada’s Buildings Strategy, which identifies the improvement of equipment energy efficiency as a key component of the country’s efforts to transition towards a low-carbon built environment.

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

Issues

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

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

GHG emissions from Canadian homes declined by 1 megatonne (Mt) between 2005 and 2015, and are projected to decline by a further 3 Mt between 2015 and 2030. This is despite an expected 36% (or 4.4 million) increase in the number of Canadian households (a key driver of residential emissions growth) between 2005 and 2030. GHG emissions from Canada’s commercial buildings increased by 1 Mt between 2005 and 2015, and are expected to remain relatively constant through 2030, despite an expected 32% increase in floor space from 2005 to 2030. footnote 11

While technologies exist on the Canadian market to provide incremental reductions in GHG emissions and energy consumption in the building sector, there are market failures that lead to consumers making economic or environmental choices with respect to energy efficiency that are less than optimal. These include a lack of awareness and information available to consumers regarding energy- saving opportunities and actual energy use; a lack of capacity within organizations to understand and manage energy use; and split incentives (e.g. landlords may not purchase energy-efficient products if tenants pay the energy bill). Regulatory action is required given that voluntary measures will not be sufficient to phase out the least efficient product models from the Canadian market.

Objectives

The goals of the Amendment are to

The desired outcomes of the Amendment are as follows:

Description

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

The regulatory changes outlined below have been developed to support the federal government’s commitment to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable. In some cases, this is achieved by proposing standards at ENERGY STAR levels; in others, levels have been selected based on an assessment of their technical feasibility and associated economic impacts. Testing standards are aligned with those used in other jurisdictions to avoid unnecessary compliance burden.

The Amendment (A) introduces MEPS, testing standards, verification and reporting requirements for seven new product categories; (B) introduces more stringent MEPS and updates testing standards for four product categories currently regulated federally; and (C) introduces verification requirements, reporting requirements and testing standards for one new product category. Some provisions for through the wall gas furnaces will come into force on the date on which the Amendment is registered in order to delay the applicable date of manufacture. The balance of the Amendment will come into force six months after the date of its publication in the Canada Gazette, Part II.

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

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

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

Electric furnaces

Electric furnaces are those with an input capacity of not more than 65.92 kW (225 000 Btu/h) and use electricity as the primary heat source to provide heated air to a home through a home’s built-in ductwork.

For electric furnaces manufactured on or after July 3, 2019, the Amendment sets the MEPS applicable to the electrical consumption of a furnace fan at levels that will apply on that same date in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Commercial gas boilers

Commercial gas boilers are used for space heating in buildings and can either use hot water or steam as the working fluid to distribute heat throughout the space. They use natural gas or propane as the fuel source and have input ratings greater than or equal to 87.92 kW (300 000 Btu/h) and less than or equal to 2 930.71 kW (10 000 000 Btu/h).

For commercial gas boilers manufactured on or after January 1, 2025, the Amendment sets the MEPS at the condensing technology level. Performance will be measured in accordance with testing standards aligned with those of the United States.

Household and commercial gas-fired instantaneous water heaters

Household and commercial gas-fired instantaneous water heaters are used in homes and businesses to heat water on demand as it flows for use in cooking, cleaning, and bathing. They use natural gas or propane as the fuel source.

For household and commercial instantaneous gas-fired water heaters manufactured on or after January 1, 2020, and July 1, 2023, respectively, the Amendment sets MEPS at condensing technology levels equivalent to current ENERGY STAR performance levels. Performance will be measured in accordance with testing standards aligned with those of the United States.

Commercial oil-fired boilers

Commercial oil-fired boilers are used for space heating in buildings and can use either hot water or steam as the working fluid to distribute heat throughout the space. They have input ratings greater than or equal to 87.92 kW (300 000 Btu/h) and less than or equal to 2 930.71 kW (10 000 000 Btu/h).

For commercial oil-fired boilers manufactured on or after January 1, 2025, the Amendment sets the MEPS at levels prepublished in the U.S. DOE final rule on December 28, 2016. Performance will be measured in accordance with testing standards aligned with those of the United States.

Commercial electric water heaters

Commercial electric water heaters heat water for use in cooking, cleaning, and bathing. They use electricity as the source of energy and have input rates of greater than or equal to 12 kW (40 982 Btu/h) and a volume of at least 50 L (13.21 U.S. gal).

For commercial electric water heaters manufactured on or after January 1, 2020, the Amendment sets the MEPS at levels that are currently in place in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

Commercial gas-fired storage water heaters

Commercial gas-fired storage water heaters heat water for use in cooking, cleaning, and bathing. They use natural gas or propane as the fuel source and have input rates greater than 21.97 kW (75 000 Btu/h).

For commercial gas-fired storage water heaters manufactured on or after July 1, 2023, the Amendment sets the MEPS for commercial units, marked as replacement units, at levels that are currently in place in the United States. For all other products, the Amendment sets the MEPS at condensing technology levels. Performance will be measured in accordance with testing standards aligned with those of the United States.

Commercial oil-fired water heaters

Commercial oil-fired water heaters heat water for use in cooking, cleaning, and bathing. They have input rates greater than 30.5 kW (105 000 Btu/h).

For commercial oil-fired water heaters manufactured on or after January 1, 2020, the Amendment sets the MEPS at levels that are currently in place in the United States. Performance will be measured in accordance with testing standards aligned with those of the United States.

(B) Introduce more stringent MEPS and update testing for four currently regulated product categories

Household gas boilers

Household gas boilers provide heat to a home and can use either hot water or steam as the working fluid to distribute heat throughout the space. They use propane or natural gas and have an input rate of less than 87.92 kW (300 000 Btu/h).

For household gas boilers intended for hot water systems that are manufactured on or after July 1, 2023, the Amendment sets the MEPS at the condensing technology level equivalent to the current ENERGY STAR performance level. For household gas boilers intended for steam systems manufactured on or after January 15, 2021, the Amendment sets the MEPS at levels that will apply on that same date in the United States. Performance will be measured in accordance with an updated testing standard aligned with that of the United States.

Gas fireplaces

Gas fireplaces use propane or natural gas to provide an aesthetically pleasing flame. Decorative gas fireplaces direct minimal heat towards the room and heating gas fireplaces provide a heat source for a room. They are used in people’s homes and commercial establishments such as hotel lobbies and restaurants. Gas fireplaces may be freestanding, recessed, zero clearance or insert units.

For heating gas fireplaces manufactured on or after January 1, 2020, the Amendment introduces MEPS and prescriptive requirements for pilots. For decorative gas fireplaces manufactured on or after January 1, 2020, the Amendment introduces prescriptive requirements for pilots and combustion air. The requirements are designed to achieve similar outcomes as those that apply in British Columbia on January 1, 2019, with differences resulting from the use of more prescriptive requirements for decorative gas fireplaces than those in British Columbia, which is the only province currently regulating their fireplace efficiency. footnote 12 The referenced testing standard is not being changed.

Gas furnaces

Gas furnaces use propane or natural gas to provide heated air to a home through the home’s built-in ductwork. They have an input rate of not more than 117.23 kW (400 000 Btu/h), but do not currently include gas furnaces for mobile homes and recreational vehicles.

For gas furnaces manufactured on or after July 3, 2019, the Amendment removes the exclusion given to gas furnaces for mobile homes and adds an exclusion for park model trailers. It also increases the annual fuel utilization efficiency (AFUE) MEPS to the current ENERGY STAR performance level (95% AFUE) for furnaces, except those that are through the wall, which will remain at 90% AFUE or gas furnaces that are marked for use in a relocatable building or as a replacement furnace in a manufactured home, which will be subject to 80% AFUE. Additionally, for through the wall gas furnaces, the Amendment moves the date on or after which the fan energy rating (FER) requirement published in Amendment 14 will apply, from July 3, 2019, to January 1, 2024. This modification comes into force immediately on registration. Performance will be measured in accordance with an updated testing standard aligned with that of the United States.

Household oil-fired boilers

Household oil-fired boilers provide heat to a home and can use either hot water or steam as the working fluid to distribute heat throughout the space. They have an input rate of less than 87.92 kW (300 000 Btu/h).

For household oil-fired boilers manufactured on or after January 15, 2021, the Amendment sets the MEPS at levels that will apply on that same date in the United States. The existing testing standards are being updated but will remain aligned with those of the United States.

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

Heat-recovery ventilators and energy-recovery ventilators

Heat-recovery ventilators (HRVs) are mechanical devices that transfer heat from stale indoor air to fresh outdoor air. Energy-recovery ventilators (ERVs) are HRVs designed to also transfer moisture.

For HRVs and ERVs manufactured on or after January 1, 2020, the Amendment will require the submission of energy efficiency reports and importation reports. Performance will be measured in accordance with testing standards currently required for ENERGY STAR certification.

Regulatory and non-regulatory options considered

Maintaining the status quo

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

The status quo option would not deliver on the federal government’s commitment to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable as stated in the Pan-Canadian Framework on Clean Growth and Climate Change, nor would it contribute to the achievement of the aspirational goal agreed to by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet an energy performance of at least 90% (condensing technology level). Since the Amendment has been designed to achieve greater alignment on federal and provincial energy efficiency standards, the status quo option would be inconsistent with the federal-provincial-territorial framework to encourage market transformation through collaboration on energy efficiency standards, released by the Energy and Mines Ministers’ Conference in 2016.

Voluntary approach (repeal the Regulations)

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

A voluntary approach would result in fewer GHG emission reductions than the status quo option or taking a regulatory approach. Studies have shown that in countries where MEPS have been introduced for the first time, significant energy efficiency improvements have been observed. For example, a 32% energy efficiency improvement was achieved in one year (1994–1995) when Mexico first implemented MEPS for four product categories. footnote 13 Such improvements have translated into large reductions in energy consumption and GHG emissions. Globally, the most mature national MEPS and labelling programs covering a broad range of products are estimated to save between 10% and 25% of national energy consumption. footnote 14 There is strong evidence to show that significant and sustained improvements in energy efficiency occur where MEPS are subject to ongoing revision and updating to keep pace with the rate of improvement in new products entering a market. footnote 15 Given the global evidence of the significant benefits of MEPS, a voluntary approach would mean that these benefits would not be realized.

Regulatory action

Taking regulatory action will lead to greater GHG emissions reductions than either the status quo or voluntary approach. This approach provides important incremental GHG emission reductions to contribute to the achievement of Canada’s commitments made under the Pan-Canadian Framework on Clean Growth and Climate Change; it would also contribute to achieving the aspirational goal agreed to by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet an energy performance of at least 90% (condensing technology level).

Benefits and costs

Summary

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

Annual reductions in energy consumption associated with the Amendment are estimated to be 15.05 petajoules (PJ) in 2030 and are expected to reach 27.79 PJ in 2040 as the sale of more efficient products steadily replaces the pre-regulation stock.

Annual reductions in GHG emissions resulting from these reductions in energy consumption are estimated to be 0.74 Mt in 2030 and are expected to reach 1.36 Mt in 2040. It is estimated that, by applying a social cost of carbon to these reductions, the cumulative present value of economic benefits associated with GHG emission reductions will be $1.1 billion by 2040. footnote 16 Canadians will also realize economic benefits in the form of reduced energy costs due to the implementation of the Amendment. It is estimated that more than $3.1 billion in cumulative present value energy savings will be realized by 2040.

The cumulative present value of incremental technology costs and costs to Government associated with the Amendment are estimated to be $1.5 billion and $0.1 million, respectively, by 2040.

The present value of net benefits of the Amendment is estimated to be $2.7 billion by 2040, with total benefits exceeding total costs by almost three to one. By 2040, the present value of benefits and costs from the Amendment is estimated to be $4.2 billion and $1.5 billion, respectively.

Benefits and costs associated with the Amendment are presented in Table 1.

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

Monetized Benefits

Costs (if applicable)

Quantified Benefits

Unquantified Benefits

Energy (gas, oil and electricity)
savings

Technology costs

Energy savings (PJ)

Outside air quality, competiveness, job growth, non-energy benefits (home comfort, indoor air quality, minimizing depressurization in new construction, etc.)

Avoided damages because of GHG reductions

Installation and maintenance costs

GHG savings (Mt)

 

Government administration

 
 

Compliance costs and administrative burden footnote 17

   

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

Methodology, assumptions and data

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

Business-as-usual case

For the purpose of this analysis, the business-as-usual case was defined in terms of Canadian market conditions assessed in 2016. Where Canadian MEPS are aligning with those of the United States, it was assumed that incremental costs and benefits in Canada were fully the result of the Canadian amendments, with no post-2016 spillover effects from the other jurisdictions such as the United States. This assumption is consistent with other recent federal regulations footnote 18 and provides an assessment of the full economic impacts of regulatory changes affecting Canadians.

Policy case

The policy case is defined as the application of the new or stringent MEPS across 11 product categories relative to markets defined by studies completed in 2016. There is one product category included in the Amendment which does not introduce new or more stringent MEPS. This product category has been included in the compliance and administrative costs calculation presented in Table 3, but no other benefits or costs have been modelled for this product category given that there are no added technology, installation or maintenance costs.

Benchmarks

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

Social cost of carbon

The social cost of carbon was used to quantify the economic benefits of reducing GHG emissions. It represents an estimate of the economic value of avoided climate change damages at the global level for current and future generations as a result of reducing one tonne of carbon dioxide emissions. The estimated values of the social cost of carbon used in this assessment draw on ongoing work undertaken by Environment and Climate Change Canada in collaboration with a federal interdepartmental working group and in consultation with a number of external academic experts. This work involves reviewing existing literature and other countries’ approaches to valuing GHG emissions. Recommendations based on current literature and in line with the approach adopted by the U.S. Interagency Working Group on the Social Cost of Greenhouse Gases footnote 19 are that it is reasonable to estimate a social cost of carbon value at $46.84/tonne of carbon dioxide equivalent in 2018 (in 2018 dollars), increasing each year with the expected growth in damages. footnote 20

Methodology to estimate costs

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

Additional incremental costs related to installation and maintenance costs over the lifetime of the product were also evaluated, as applicable. Total costs reported as being attributable to the Amendment include, when appropriate, manufacturing, compliance and administrative costs as well as those incurred by Government to implement the changes. The compliance costs do not include testing costs for products that are already being tested to enter the U.S. market or under voluntary programs. The added cost of verification requirements is not included either because they are confidential business costs that vary based on business relationships. footnote 21 However, they are estimated to be less than 10% of the total compliance costs.

Methodology to estimate benefits

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

The reductions in GHG emissions were calculated by applying fuel-specific emissions factors, consistent with those published by Environment and Climate Change Canada, to the resulting energy savings. To remain consistent with the U.S. methodology and produce more realistic GHG savings, the reductions attributable to diminished electricity consumption were calculated by applying the emission factors associated with the marginal fuels footnote 22 used to generate the electricity that would be saved through implementation of the Amendment. To allow comparison with outcomes reported under the Pan-Canadian Framework on Clean Growth and Climate Change, the reductions in GHG emissions were also calculated by applying an average emission factor. Annual reductions in GHG emissions with the average emission factor are estimated to be 0.74 Mt in 2030, increasing to 1.37 Mt in 2040. GHG emissions were monetized and incorporated into the analysis using a social cost of carbon, as calculated by Environment and Climate Change Canada. The social cost of carbon represents an estimate of the economic value of avoided climate change damages at the global level — for current and future generations — as a result of reducing GHG emissions.

Assumptions

Key assumptions include the following:

Data collection and sources

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

Results

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

Table 2: Benefits and costs (technology, installation and maintenance) per product category and subcategory used in analysis

Product Category (Subcategory)

Cumulative Total for Product
Shipped by 2040 (Millions of Dollars) [2018$]

Product
Costs table 4 note *

Product
Benefits table 4 note **

Product
Net Benefits

Household gas boilers

$148.07

$245.20

$97.13

Intended for hot water systems

$148.02

$244.91

$96.89

Intended for low pressure steam systems

$0.05

$0.29

$0.24

Household oil-fired boilers

$11.85

$57.39

$45.54

Intended for hot water systems

$11.67

$56.69

$45.02

Intended for low pressure steam systems

$0.18

$0.71

$0.52

Commercial gas boilers

$985.63

$1,641.53

$655.90

Intended for hot water systems

$972.37

$1,610.12

$637.75

Intended for low pressure steam systems

$13.26

$31.41

$18.14

Commercial oil-fired boilers

$4.40

$18.71

$14.30

Intended for hot water systems

$4.10

$17.28

$13.17

Intended for low pressure steam systems

$0.30

$1.43

$1.13

Gas fireplaces

$161.15

$1,790.35

$1,629.19

Heating

$86.06

$820.42

$734.37

Decorative

$75.10

$969.92

$894.83

Household gas-fired instantaneous water heaters

$0.00

$48.37

$48.37

Commercial gas-fired water heaters

$29.42

$36.98

$7.56

Commercial gas-fired storage water heater

$10.51

$29.91

$19.40

Residential-duty commercial gas-fired storage water heater

$7.26

$2.08

-$5.18

Commercial gas-fired instantaneous water heater

$11.65

$4.99

-$6.67

Gas furnaces

$135.46

$348.09

$212.63

Electric furnaces

$24.75

$30.38

$5.63

Table 4 note(s)

Table 4 Note *

Costs for technology, installation and maintenance as applicable.

Return to table 4 note * referrer

Table 4 Note **

Benefits from energy savings and GHG emission reductions.

Return to table 4 note ** referrer

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

Note 2: For commercial electric water heaters, commercial oil-fired water heaters and residential-duty commercial oil-fired water heaters, the analysis does not attribute any costs or benefits to the implementation of the MEPS, as all product models being imported into Canada or shipped between provinces comply with the more stringent MEPS.

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

Table 3: Summary of benefits and costs to Canadians

Costs, Benefits and Distribution

Aggregate Annual Totals

Total Cumulative Present Value

Average Annualized Over Period to 2040

2020

2030

2040

By 2040

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

Benefits

Pre-tax fuel (gas, oil and electricity) savings

Canadians

$104.22

$248.43

$245.02

$3,121.21

$195.85

Avoided GHG damages

Canadians

$28.21

$90.13

$93.72

$1,095.78

$68.76

Total benefits

$132.43

$338.56

$338.74

$4,216.99

$264.61

Costs

Technology, installation and maintenance costs

Canadians

$19.72

$132.14

$130.31

$1,500.74

$94.17

Compliance and administrative costs

Canadians

$0.11

$0.12

$0.12

$1.95

$0.12

Government administration

Government

$0.10

$0

$0

$0.10

$0.01

Total costs

$19.93

$132.16

$130.43

$1,502.79

$94.30

Net benefits

$112.49

$206.40

$208.31

$2,714.20

$170.31

B. Quantified impacts (in non-$)

Positive impacts on Canadians

Energy savings (petajoules)

0.84

15.05

27.79

303.63

GHG emission reductions (megatonnes)

0.04

0.74

1.36

14.87

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

Additional benefits and costs

For industries using affected energy-using products in their operations, an improvement in energy performance translates into energy and operating cost savings and improved environmental performance, which can lead to increased productivity and competitiveness. When such companies spend these energy savings on expanding their businesses or factories, they create greater demand.

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

The analysis has quantified costs and benefits for each product category relative to a business-as-usual case defined by market conditions assessed in 2016. In the case of three product categories (commercial electric water heaters, commercial oil-fired water heaters and residential-duty commercial oil-fired water heaters), the assessment showed that all product models being imported into Canada or shipped between provinces comply with the MEPS. While the analysis does not attribute any costs or benefits to the implementation of the MEPS for these three product categories, this Amendment will prevent future dumping of low-efficiency product models into the Canadian market.

Another benefit of the Amendment is related to the verified energy efficiency performance information of energy-using products that is collected by NRCan through its compliance program. The information for new energy-using products will be posted to the NRCan website footnote 27 and will be accessible to consumers or businesses to help them make informed purchase decisions. Utilities and retailers also benefit from this information, since it supports programming to promote the sale of high-efficiency products.

“One-for-One” Rule

The Amendment is considered an “IN” under the “One-for-One” Rule. It will result in an increase of $72,161 in annualized average administrative costs to industry.

Assumptions underlying administrative burden estimates

Familiarization with the Amendment

Familiarization with new information obligations is a one-time administrative function that applies to manufacturers of regulated products. The task involves reviewing and understanding the new requirements of the Amendment, as well as the energy efficiency reporting form that NRCan provides to each stakeholder. This one-time event is estimated to take two hours and to be undertaken by someone with a technical background who receives a wage rate of approximately $42. The number of stakeholders impacted is estimated as 710, which represents the sum of total companies identified under the following three Harmonized system (HS) codes:

The use of these codes likely overestimates the total number of companies that would be directly impacted by the Amendment. NRCan does not have access to more detailed information that would allow for a more precise stakeholder estimate and decided, for the purpose of this calculation, to apply estimates of incremental burden to all 710 stakeholders.

Submitting import reports

The Amendment introduces import reporting requirements for new energy-using products. Importers of these new products will carry an incremental ongoing administrative burden, as they will be required to provide information for up to 21 new 10-digit HS codes at the time of importation. To estimate the frequency and time associated with this administrative action, NRCan analyzed Canada Border Services Agency import data from four recent years (2012–2015) to establish the number of importers, the average number of transactions per year and the average number of transactions per year per HS code. Based on this analysis, it is estimated that 1 984 importers will be affected by this incremental activity, which will occur 85 times per year. It is assumed that clerical staff with a wage rate of approximately $30 will undertake this task.

To estimate the time required per event, NRCan relied upon a U.S. DOE assessment of the time it takes to populate a similar report in a similar context: information is readily available and must simply be entered into the proper place in the report. The U.S. 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 import reports and those that were the subject of the U.S. DOE analysis, NRCan estimates that it would take 36 seconds per data element, with each report requiring two data elements. These activities would be undertaken by administrative support with a wage rate of approximately $29.

Submitting energy efficiency reports

The Amendment introduces an administrative burden associated with the reporting of energy performance information before an energy-using product is imported. The added burden would apply to product models that have reporting elements that differ from reporting requirements already in place in other jurisdictions.

The data used to calculate incremental administrative burden costs was obtained from a variety of sources, such as internal compliance databases, numerous product market studies, Statistics Canada, the Canada Border Services Agency, the Canadian Federation of Independent Business, and the U.S. DOE. Analysis of the data indicates that 8% of shipments may be impacted by new reporting requirements, which require inputting data into fields of the energy efficiency reports. This percentage was applied to the total number of estimated manufacturers (710) to arrive at 57 total stakeholders that would be affected by this incremental burden. The time required to input the data has been estimated to take 36 seconds per data element. These activities would be undertaken by administrative support staff with a wage rate of approximately $29.

Consultations

No comments were received from stakeholders on the impacts of the Amendment on administrative burden. In general, stakeholders are supportive of the approach to align reporting requirements with other jurisdictions when feasible.

Small business lens

Statistics Canada and Canada Border Services Agency data obtained from the Treasury Board Secretariat’s regulatory cost calculator indicates that 2 771 small businesses may be impacted by this Amendment. This number overestimates the total small businesses that will be impacted because NRCan is only regulating a subset of products within each industry sector represented in the data. NRCan does not have access to more specific information to identify the portion of these sectors that would be affected. Therefore, using this number to estimate the administrative costs on small businesses represents a conservative, worst case scenario. The reporting requirements are minor and represent the minimum amount of information required to assess that an individual product model meets the prescribed standards; however, the Amendment is estimated to increase the administrative costs for small importers by $74,121 (annualized average administrative costs), or approximately $35 per business and increases the administrative burden for small manufacturers of affected products by $9,374 (annualized average administrative costs), or $14 per business. The estimated impacts on small businesses are presented in Table 4.

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

Information obtained during pre-consultations indicates that 10 small Canadian manufacturers may be impacted by the Amendment. Six of these companies are manufacturers of heat/energy recovery ventilators, for which the Amendment introduces reporting for the first time. The reporting requirements are minor and represent the minimum amount of information required to achieve the objective of ensuring that a standardized method is used to quantify the energy performance of these products.

One small manufacturer of gas fireplaces was identified and an assessment of its product offerings indicates that they already comply with the requirements. Three small manufacturers of gas-fired boilers were also identified and engaged in consultations to develop the Amendment. For one company, all of their 24 current model offerings comply with the upcoming requirements. For another, almost half of their 684 current model offerings comply. For the third company, neither of its two current product offerings complies with the MEPS that will come into force in 2023. None of these small manufacturers identified any compliance issues associated with the size of their company during pre-consultations.

Table 4: Small business lens summary

Small Business Lens Summary

Number of small businesses impacted

2 771

Number of years

10

Base year for costing

2012

Administrative Burden

Annualized Value ($)

Present Value

Submitting import reports

$74,121

$520,596

Submitting efficiency reports

$9,374

$65,837

Total cost (all impacted small businesses)

$83,495

$586,433

Cost per impacted small business

$30

$212

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

Consultation

Pre-consultation summary

The Amendment introduces or updates MEPS, testing standards, verification, and reporting requirements for 12 product categories and supports the market transformation strategies released by federal, provincial and territorial energy ministers in 2017. Stakeholders footnote 28 were informed of the changes being considered in the Amendment and were provided opportunities to comment at several points since 2016. These consultations evolved with time, and the content of the Amendment was modified accordingly. The following outlines the key materials used to communicate details to the stakeholder community:

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

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

Canada Gazette, Part I, consultation

The Amendment was prepublished in the Canada Gazette, Part I, on October 20, 2018. The following outlines the key consultations activities that NRCan undertook during the 70-day comment period:

Canada Gazette, Part I, consultation — 70-day comment period

More than 6 300 stakeholders representing industry/retail associations, manufacturers/suppliers, certification bodies, standards development committees, utilities, general interest organizations and governments were solicited for comments. NRCan received written submissions from 31 unique organizations during the 70-day period: 4 from energy efficiency alliances, 4 from industry associations, 18 from individual manufacturers, 3 from utilities, one from a province, and one from an international regulator.

The following paragraphs summarize the major comments and topics of clarification raised by stakeholders during the comment period and NRCan’s views on each of them. No substantive comments were received for commercial oil-fired boilers.

Social cost of carbon

Two industry associations suggested that the social cost of carbon be eliminated from this regulatory analysis because it is not appropriate to count as full benefits for Canadians given that the future damage costs would be distributed globally around the world.

As per the Treasury Board of Canada Secretariat Policy on Cost-Benefit Analysis, footnote 30 departments are required to use the social cost of carbon values estimated by Environment and Climate Change Canada. The monetized damage avoided through an incremental reduction in carbon emissions due to a regulation is a measure of the global benefit (including Canada) of that regulation. Further, no single country, acting alone, can satisfactorily deal with climate change issues. This is a case where both the costs and benefits to other countries matter to Canada if only to motivate collective policy actions. These international interdependencies of costs, benefits and policy solutions as evidenced by the multiple bilateral and multilateral environmental agreements that Canada is or has been party to are an adequate justification for granting standing to the benefits and costs calculated using the social cost of carbon.

Product-specific comments

Commercial electric water heaters

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

Residential-duty commercial gas-fired storage water heaters

Issue: Limited product availability at the proposed MEPS level

Issue: Stringency of MEPS

Commercial gas-fired storage water heaters

Issue: Stringency of MEPS for products not marked for use in replacement scenarios

Issue: Stringency of MEPS for products marked for use in replacement scenarios

Issue: Date of manufacture

Commercial oil-fired storage water heaters

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

Commercial instantaneous gas-fired water heaters

Issue: Stringency of MEPS

Household instantaneous gas-fired water heaters

Issue: Lifetime costs of compliant products

Household gas boilers

Issue: Date of manufacture

Issue: Venting materials

Issue: Installation costs for difficult non-standard replacement scenarios

Issue: Installed cost of a MEPS–compliant boiler

Issue: Illegal importation of products

Issue: Need for regulatory action

Issue: Product service life

Issue: Impact to employment

Issue: Secondary piping and pump requirements for MEPS–compliant boilers

Issue: Incremental maintenance costs for MEPS–compliant products

Commercial gas boilers

Issue: Stringency of MEPS

Issue: Vent material

Issue: Difficult venting — common manifold

Issue: Difficult venting — orphaned domestic water heaters

Issue: Difficult venting — new vent pathways

Issue: Representative installation costs

Issue: Retail and installation costs are underestimated

Issue: Product service life

Issue: Condensate withdrawal

Issue: Existing boiler plant controls

Issue: Energy savings from condensing boilers in existing hot water distribution systems

Issue: Emergency Replacement Scenarios

Household oil-fired boilers

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

Electric furnaces

Issue: Treatment of modular blowers

Issue: Scope — exemptions to the standard

Gas furnaces

Issue: Stringency of MEPS for gas furnaces other than through-the-wall gas furnaces

Issue: Stringency of MEPS for through-the-wall gas furnaces

Issue: Replacement gas furnaces for existing manufactured and mobile homes

Heat recovery ventilators and Energy recovery ventilators (HRV/ERV)

Issue: Definition of rated net supply airflow

Issue: Laboratory airflow capacity at low temperatures

Gas fireplaces

Issue: Ignition system requirements

Issue: 24-hour automatic shutoff device for decorative gas fireplaces

Issue: Testing and reporting fireplace efficiency for decorative gas fireplaces

Regulatory cooperation

The Amendment is the result of significant cooperation — both domestically and with the United States — to contribute to the achievement of domestic goals for the reduction of GHG emissions and energy consumption.

Domestically, collaborative efforts to reduce GHG emissions from Canada’s building sector has been guided by two federal, provincial and territorial forums:

Given that the Amendment has been informed by collaborative work with provincial and territorial governments, it will contribute to the objective of the Canadian Free Trade Agreement by reducing and eliminating, to the extent possible, barriers to the movement of goods within Canada.

Internationally, Canada has benefited from a long-standing cooperative relationship with U.S. DOE regulators of energy efficiency. Federally, this relationship has been formalized under the CanadaUnited States Regulatory Cooperation Council and the 2015 signing of a Regulatory Partnership Statement. footnote 31 Through binational cooperation, both countries have worked to reduce and eliminate instances of unnecessary regulatory differences and to develop coordinated approaches to achieving common policy objectives.

The Amendment is consistent with the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs Regarding the Canada–United States Regulatory Cooperation Council signed in June 2018. The Amendment seeks to foster alignment of federal regulations where feasible and appropriate, primarily through the use of testing standards already used by other jurisdictions to assess energy-using product compliance with the MEPS.

Rationale

The Amendment will benefit Canadians by reducing GHG emissions and energy consumption in homes and buildings. Homeowners and businesses will benefit from reduced energy costs associated with the use of more efficient technologies.

According to the International Energy Agency, policies and programs that address energy efficiency are the most cost-effective way to lower GHG emissions and could complement carbon pricing schemes as an overall strategy to effectively achieve climate change policy objectives. footnote 32

In the absence of a regulatory approach, a market for low-efficiency products would continue. Consumers who purchase such products could be motivated by lower purchase costs even though they would pay higher operational costs over the life of the product. The analysis of the Amendment has shown that more stringent MEPS for all products will generate reductions in GHG emissions and energy consumption. The associated energy savings will generate net monetary benefits for Canadian consumers. The analysis has shown that the overall costs of technologies that will be required to bring low-efficiency products into compliance with the MEPS are outweighed by the overall benefits.

The Amendment is supported by provincial and territorial governments as its development was influenced by work conducted under the framework released by the Energy and Mines Ministers’ Conference in 2016 to achieve greater alignment of U.S. energy efficiency standards with those of Canada and to encourage market transformation through increased collaboration. It also contributes to the federal commitment made under the Pan-Canadian Framework on Clean Growth and Climate Change to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable and the aspirational goal released by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet MEPS of at least 90% (condensing technology level).

The Amendment has been designed to contribute to this commitment and goal while minimizing the burden on the affected industries, primarily through the use of existing testing standards used by the industry or required by other jurisdictions to assess conformity. Prescribed MEPS are a proven cost-effective approach to achieving reductions in GHG emissions and energy consumption. The Energy Efficiency Regulations were first introduced in 1995 and, including the Regulations, have been amended 14 times to increase the stringency of existing MEPS and introduce MEPS for new energy-using products. Through the use of third-party verification and regular post-market compliance activities, a high compliance rate with regulated requirements has been observed. This provides confidence that estimated outcomes are being achieved and that Canadians are experiencing the associated benefits.

Implementation, enforcement and service standards

Some provisions of the Amendment come into force upon registration while the rest of the Amendment come into force six months after publication in the Canada Gazette, Part II. The requirements will apply to the prescribed energy-using products based on their period of manufacture, date of import or date of interprovincial shipment.

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

Verification marking and energy efficiency reporting

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

Import reporting and monitoring

NRCan procedures already in place for the collection of information for commercial imports of prescribed products will apply to products affected by the Regulations. These procedures involve 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. Challenge procedures by which performance claims can be questioned exist in all verification programs.

Performance measurement and evaluation

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

Table 5: Measuring performance of the Regulations

Outcome

Indicators

Information to Measure Performance

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

Percentage of product models that meet MEPS

  • Energy efficiency reports
  • Import reports
  • Market data (shipments, trends)
  • Lab testing
  • Emission factors
  • Energy prices

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

Energy use for space and water heating decreases per home and per unit of commercial building floor space.

Businesses using regulated energy-using products save money that can lead to increased productivity and competitiveness.

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

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

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

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

Contact

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