Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18): SOR/2025-110

Canada Gazette, Part II, Volume 159, Number 8

Registration
SOR/2025-110 March 20, 2025

ENERGY EFFICIENCY ACT

P.C. 2025-448 March 20, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, makes the annexed Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18) under sections 20^{footnote a}, 20.2^{footnote b} and 25 of the Energy Efficiency Act ^{footnote c}.

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18)

Amendments

1 (1) Subsection 1(1) of the Energy Efficiency Regulations, 2016 ^{footnote 1} is amended by adding the following in alphabetical order:

new Regulations: means these Regulations as they read on the day on which subsection 1(2) of the Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18) comes into force. (nouveau règlement)

(2) The definition new Regulations in subsection 1(1) of the Regulations is repealed.

(3) Subsection 1(3) of the Regulations is replaced by the following:

Incorporated standards

(3) In these Regulations, a reference to an AHRI, ANSI, ASHRAE, CGA, CIE, CSA, IEC, IEEE, IES or NEMA standard or to a technical standards document is to be read as a reference to the standard or technical standards document as amended from time to time.

2 (1) The portion of subsection 4(1) of the Regulations before paragraph (a) is replaced by the following:

Verification mark

4 (1) Subject to subsection (4), every energy-using product that, for the purpose of sale or lease, is shipped from one province to another or imported into Canada must be labelled with a verification mark that is issued by

(2) Paragraph 4(2)(a) of the Regulations is repealed.

(3) Paragraph 4(2)(c) of the Regulations is repealed.

(4) Paragraph 4(2)(e) of the Regulations is repealed.

(5) Subsection 4(2) of the Regulations 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):

(h) a faucet that is a replacement aerator.

(6) Subsection 4(3) of the Regulations is repealed.

(7) Subsection 4(5) of the Regulations is repealed.

3 (1) Paragraph 5(1)(e) of the Regulations is amended by adding “or” at the end of subparagraph (i) and by repealing subparagraph (ii).

(2) Paragraph 5(1)(e) of the Regulations is amended by striking out “or” at the end of subparagraph (iii) and by repealing subparagraph (iv).

4 Section 6 of the Regulations is repealed.

5 (1) Paragraphs 11.1(z.09) and (z.10) of the Regulations are repealed.

(2) Section 11.1 of the Regulations is amended by adding the following after paragraph (z.20):

(z.201) line voltage thermostats;

(3) Section 11.1 of the Regulations is amended by adding the following after paragraph (z.32):

(z.321) faucets;
(z.322) showerheads;

(4) Section 11.1 of the Regulations is amended by striking out “and” at the end of paragraph (z.33) and by adding the following after paragraph (z.34):

(z.35) pool pumps; and
(z.36) air compressors.

6 The definition 10 C.F.R. Appendix A in section 70 of the Regulations is replaced by the following:

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

7 (1) Paragraph (b) of the definition space-constrained in section 107 of the English version of the Regulations is replaced by the following:

(b) has an outdoor or indoor unit
- (i) that has an overall displacement that is — or two or more overall exterior dimensions that are — substantially smaller than those of other units of a similar cooling capacity that are usually installed in single-family homes, and
- (ii) with respect to which an increase in the overall displacement or two or more overall exterior dimensions would result in a considerable increase in the usual cost of installation or in a significant loss in the utility of the product to the consumer. (à espace restreint)

(2) Section 107 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix F1: means Appendix F1 to Subpart F, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Energy Consumption of Air-Cooled, Three-Phase, Small Commercial Package Air Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, Three-Phase, Variable Refrigerant Flow Multi-Split Air Conditioners and Heat Pumps With a Cooling Capacity of Less Than 65,000 Btu/h, as amended from time to time. (appendice F1 10 C.F.R.)
CEER: means the combined energy efficiency ratio of the product, expressed in British thermal units per watt hour, that constitutes a single measure of its energy efficiency and that integrates standby mode and off mode energy use with on mode energy use. (CEER)

8 (1) The definitions CEER, CSA C368.1-14 and CSA C62301 in section 108 of the Regulations are repealed.

(2) Section 108 of the Regulations is amended by adding the following in alphabetical order:

TSD D2SA001: means the technical standards document D2SA001 published by the Minister and entitled Testing Standard and Energy Efficiency Standards for Room Air Conditioners. (DNT D2SA001)

9 Section 110 of the Regulations is replaced by the following:

Cooling capacity category

110 For the purposes of these Regulations, the cooling capacity category of a room air conditioner is the applicable cooling capacity range set out in

(a) Table 2 of CSA C368.1, if the product was manufactured before June 1, 2014;
(b) Table 2 to Part 2 of TSD D2SA001, if the product is manufactured on or after June 1, 2014 and before May 26, 2026; and
(c) Table 3 to Part 2 of TSD D2SA001, if the product is manufactured on or after May 26, 2026.

10 Subsection 111(2) of the Regulations is replaced by the following:

Limit

(2) However, for the purposes of sections 4, 5, 112, 114 and 115, a room air conditioner is not considered to be an energy-using product unless it is manufactured on or after February 3, 1995.

11 The portion of item 2 of the table to section 112 of the Regulations in columns 1 and 2 is replaced by the following:
Item	Column 1 Testing Standard	Column 2 Energy Efficiency Standard
2	Part 1 of TSD D2SA001	Part 2 of TSD D2SA001

12 The portion of item 2 of the table to section 113 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Testing Standard
2	Part 1 of TSD D2SA001, for information set out in paragraphs (b) and (c)

13 Section 115 of the Regulations is replaced by the following:

Manner of labelling

115 The label must be displayed on the principal display panel of the product’s package

(a) by printing it on that panel; or
(b) by affixing to the panel an adhesive tag that is printed on paper that meets the requirements of subsection 14(1) and that has an adhesion capacity that is sufficient to prevent the tag from being dislodged from the packaging under normal handling conditions.

14 Section 116 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix A: means Appendix A to Subpart F, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Energy Consumption of Air-Cooled Small (≥65,000 Btu/h), Large, and Very Large Commercial Package Air Conditioning and Heating Equipment, as amended from time to time. (appendice A 10 C.F.R.)

15 Items 3 to 16 of Table 1 to section 118 of the Regulations are replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
3	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and either without a heating section or with an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 11.2 IEER ≥ 12.9	On or after January 1, 2018 and before January 1, 2026
4	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and either without a heating section or with an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 11.2 IEER ≥ 14.8	On or after January 1, 2026
5	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and either without a heating section or with an electric heating section	CSA C746-98	Energy efficiency ratio ≥ 9.7	On or after December 31, 1998 and before January 1, 2010
6	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and either without a heating section or with an electric heating section	CSA C746-06 for energy efficiency ratio AHRI 340/360 for IEER	Energy efficiency ratio ≥ 11.0 IEER ≥ 11.2	On or after January 1, 2010 and before January 1, 2018
7	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and either without a heating section or with an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 11.0 IEER ≥ 12.4	On or after January 1, 2018 and before January 1, 2026
8	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and either without a heating section or with an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 11.0 IEER ≥ 14.2	On or after January 1, 2026
9	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and either without a heating section or with an electric heating section	CSA C746-06 for energy efficiency ratio AHRI 340/360 for IEER	Energy efficiency ratio ≥ 10.0 IEER ≥ 10.1	On or after January 1, 2010 and before January 1, 2018
10	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and either without a heating section or with an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 10.0 IEER ≥ 11.6	On or after January 1, 2018 and before January 1, 2026
11	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and either without a heating section or with an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 10.0 IEER ≥ 13.2	On or after January 1, 2026
12	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and a heating section other than an electric heating section	CSA C746-98	Energy efficiency ratio ≥ 10.1	On or after December 31, 1998 and before January 1, 2010
13	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and a heating section other than an electric heating section	CSA C746-06 for energy efficiency ratio AHRI 340/360 for IEER	Energy efficiency ratio ≥ 11.0 IEER ≥ 11.2	On or after January 1, 2010 and before January 1, 2018
14	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and a heating section other than an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 11.0 IEER ≥ 12.7	On or after January 1, 2018 and before January 1, 2026
15	Large air conditioners that have a cooling capacity of ≥ 19 kW and < 40 kW and a heating section other than an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 11.0 IEER ≥ 14.6	On or after January 1, 2026
16	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and a heating section other than an electric heating section	CSA C746-98	Energy efficiency ratio ≥ 9.5	On or after December 31, 1998 and before January 1, 2010
17	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and a heating section other than an electric heating section	CSA C746-06 for energy efficiency ratio AHRI 340/360 for IEER	Energy efficiency ratio ≥ 10.8 IEER ≥ 11.0	On or after January 1, 2010 and before January 1, 2018
18	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and a heating section other than an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 10.8 IEER ≥ 12.2	On or after January 1, 2018 and before January 1, 2026
19	Large air conditioners that have a cooling capacity of ≥ 40 kW and < 70 kW and a heating section other than an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 10.8 IEER ≥ 14.0	On or after January 1, 2026
20	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and a heating section other than an electric heating section	CSA C746-06 for energy efficiency ratio AHRI 340/360 for IEER	Energy efficiency ratio ≥ 9.8 IEER ≥ 9.9	On or after January 1, 2010 and before January 1, 2018
21	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and a heating section other than an electric heating section	CSA C746-17	Energy efficiency ratio ≥ 9.8 IEER ≥ 11.4	On or after January 1, 2018 and before January 1, 2026
22	Large air conditioners that have a cooling capacity of ≥ 70 kW and < 223 kW and a heating section other than an electric heating section	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 9.8 IEER ≥ 13.0	On or after January 1, 2026

16 (1) The portion of item 3 of the table to section 119 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
3	Large air conditioners manufactured on or after January 1, 2018 and before January 1, 2026

(2) The table to section 119 of the Regulations is amended by adding the following after item 3:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
4	Large air conditioners manufactured on or after January 1, 2026	CSA C746-17 or 10 C.F.R. Appendix A	(a) product classification set out in Column II of Table 1 of CSA C746-17; (b) cooling capacity, in kW (Btu/h); (c) energy efficiency ratio; (d) IEER; and (e) information that indicates whether the product has a heating section and, if so, whether it is electric or other than electric.

17 (1) The portion of item 2 of Table 2 to section 126 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
2	On or after January 1, 2023 and before January 1, 2026

(2) Items 3 to 5 of Table 2 to section 126 of the Regulations are replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
3	Single package central air conditioners, other than those that are space-constrained	10 C.F.R. Appendix F1	Seasonal energy efficiency ratio 2 ≥ 13.4	On or after January 1, 2026
4	Single package central air conditioners that are through-the-wall	CSA C656-05	Seasonal energy efficiency ratio ≥ 12.0	On or after February 3, 1995 and before January 1, 2023
5	Single package central air conditioners that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after January 1, 2023 and before January 1, 2026
6	Single package central air conditioners that are space-constrained	10 C.F.R. Appendix F1	Seasonal energy efficiency ratio 2 ≥ 13.9	On or after January 1, 2026
7	Single package central air conditioners that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after January 1, 2017 and before January 1, 2023

18 (1) The portion of item 5 of the table to section 127 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
5	Single package central air conditioners that are three-phase and manufactured on or after January 1, 2023 and before January 1, 2026

(2) The table to section 127 of the Regulations is amended by adding the following after item 5:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
5.1	Single package central air conditioners that are three-phase and manufactured on or after January 1, 2026	10 C.F.R. Appendix F1 for information set out in paragraphs (b) and (c)	(a) type; (b) cooling capacity in kW (Btu/h); (c) seasonal energy efficiency ratio 2; and (d) phase of electric current.

19 (1) The Regulations are amended by adding the following after section 127:

Transitional provision — early compliance

127.1 A single package central air conditioner that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 126 and 127 of these Regulations if it satisfies the requirements of sections 126 and 127 of the new Regulations that are applicable to single package central air conditioners that are manufactured on or after January 1, 2026.

(2) Section 127.1 of the Regulations is replaced by the following:

Early compliance

127.1 A single package central air conditioner that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 126 and 127 if it satisfies the requirements of those sections that would have applied to the single package central air conditioner if it had been manufactured on or after January 1, 2026.

20 Sections 133 to 135 of the English version of the Regulations are amended by replacing “split-system” with “split system”.

21 (1) The portion of item 1 of Table 2 to section 134 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
1	On or after February 3, 1995 and before January 1, 2026

(2) Item 2 of Table 2 to section 134 of the Regulations is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
2	Split system central air conditioners, other than those that are space-constrained or small-duct and high-velocity	10 C.F.R. Appendix F1	Seasonal energy efficiency ratio 2 ≥ 13.4	On or after January 1, 2026
3	Split system central air conditioners that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0	On or after February 3, 1995 and before January 1, 2026
4	Split system central air conditioners that are small-duct and high-velocity	10 C.F.R. Appendix F1	Seasonal energy efficiency ratio 2 ≥ 13.0	On or after January 1, 2026
5	Split system central air conditioners that are space-constrained	10 C.F.R. Appendix F1	Seasonal energy efficiency ratio 2 ≥ 12.7	On or after January 1, 2026

22 (1) The portion of item 2 of the table to section 135 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
2	Split system central air conditioners that are three-phase and manufactured on or after February 3, 1995 and before January 1, 2026

(2) The table to section 135 of the Regulations is amended by adding the following after item 2:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
2.1	Split system central air conditioners that are three-phase and manufactured on or after January 1, 2026	10 C.F.R. Appendix F1 for information set out in paragraphs (b) and (c)	(a) type; (b) cooling capacity in kW (Btu/h); (c) seasonal energy efficiency ratio 2; and (d) phase of electric current.

23 (1) The Regulations are amended by adding the following after section 135:

Transitional provision — early compliance

135.1 A split system central air conditioner that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 134 and 135 of these Regulations if it satisfies the requirements of sections 134 and 135 of the new Regulations that are applicable to split system central air conditioners that are manufactured on or after January 1, 2026.

(2) Section 135.1 of the Regulations is replaced by the following:

Early compliance

135.1 A split system central air conditioner that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 134 and 135 if it satisfies the requirements of those sections that would have applied to the split system central air conditioner if it had been manufactured on or after January 1, 2026.

24 (1) Paragraph (c) of the definition portable air conditioner in section 144 of the Regulations is replaced by the following:

(c) has a SACC of less than 19 kW (65,000 Btu/h). (climatiseur portatif)

(2) Section 144 of the Regulations is amended by adding the following in alphabetical order:

SACC means the seasonally adjusted cooling capacity of the product, expressed in kilowatts (British thermal units per hour), that constitutes the amount of cooling provided to the conditioned space. (SACC)

25 Subsection 145(2) of the Regulations is replaced by the following:

Limit

(2) However, a portable air conditioner is not considered to be an energy-using product

(a) for the purposes of sections 4 and 5, unless it is manufactured on or after July 1, 2020; and
(b) for the purposes of sections 145.1, 147 and 148, unless it is manufactured on or after January 10, 2025.

26 The Regulations are amended by adding the following after section 145:

Energy efficiency standard

145.1 (1) The energy efficiency standard applicable to a portable air conditioner is that it must have a CEER equal to or greater than the result determined by the formula

1.04 A ÷ (3.7117 A^0.6384): where
A: is its SACC, expressed in Btu/h.

Testing standard

(2) A portable air conditioner complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by 10 C.F.R. Appendix CC.

27 Paragraphs 146(1)(a) and (b) of the Regulations are replaced by the following:

(a) its SACC;
(b) its CEER; and

28 The reference “[147 to 185 reserved]” after section 146 of the Regulations is replaced by the following:

Form of labelling

147 A portable air conditioner manufactured on or after January 10, 2025 must be labelled in the form set out in Schedule 4.

Manner of labelling

148 The label must be displayed on the principal display panel of the product’s package, either

(a) by printing it on that panel; or
(b) by affixing to the panel an adhesive tag that is printed on paper that meets the requirements of subsection 14(1) and that has an adhesion capacity that is sufficient to prevent the tag from being dislodged from the packaging under normal handling conditions.

[149 to 185 reserved]

29 (1) Paragraph (b) of the definition space-constrained in section 186 of the English version of the Regulations is replaced by the following:

(b) has an outdoor or indoor unit
- (i) that has an overall displacement that is — or two or more overall exterior dimensions that are — substantially smaller than those of other units of a similar cooling capacity that are usually installed in single-family homes, and
- (ii) with respect to which an increase in the overall displacement or two or more overall exterior dimensions would result in a considerable increase in the usual cost of installation or in a significant loss in the utility of the product to the consumer. (à espace restreint)

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

10 C.F.R. Appendix F1: means Appendix F1 to Subpart F, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Energy Consumption of Air-Cooled, Three-Phase, Small Commercial Package Air Conditioning and Heating Equipment With a Cooling Capacity of Less Than 65,000 Btu/h and Air-Cooled, Three-Phase, Variable Refrigerant Flow Multi-Split Air Conditioners and Heat Pumps With a Cooling Capacity of Less Than 65,000 Btu/h, as amended from time to time. (appendice F1 10 C.F.R.)

30 Section 195 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix A: means Appendix A to Subpart F, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Energy Consumption of Air-Cooled Small (≥65,000 Btu/h), Large, and Very Large Commercial Package Air Conditioning and Heating Equipment, as amended from time to time. (appendice A 10 C.F.R.)

31 (1) The portion of item 3 of Table 1 to section 197 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
3	On or after January 1, 2018 and before January 1, 2026

(2) Items 4 to 8 of Table 1 to section 197 of the Regulations are replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
4	Large heat pumps that have a cooling capacity of ≥ 19 kW and < 40 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 11.0 Heating coefficient of performance ≥ 3.4 with 8.3°C inlet air and ≥ 2.25 with −8.3°C inlet air IEER ≥ 14.1	On or after January 1, 2026
5	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-98	Energy efficiency ratio ≥ 9.3 Heating coefficient of performance ≥ 3.1 with 8.3°C inlet air and ≥ 2.0 with −8.3°C inlet air	On or after December 31, 1998 and before January 1, 2010
6	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-06 for energy efficiency ratio and heating coefficient of performance AHRI 340/360 for IEER	Energy efficiency ratio ≥ 10.6 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 10.7	On or after January 1, 2010 and before January 1, 2018
7	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-17	Energy efficiency ratio ≥ 10.6 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 11.6	On or after January 1, 2018 and before January 1, 2026
8	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 10.6 Heating coefficient of performance ≥ 3.3 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 13.5	On or after January 1, 2026
9	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-06 for energy efficiency ratio and heating coefficient of performance AHRI 340/360 for IEER	Energy efficiency ratio ≥ 9.5 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 9.6	On or after January 1, 2010 and before January 1, 2018
10	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-17	Energy efficiency ratio ≥ 9.5 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 10.6	On or after January 1, 2018 and before January 1, 2026
11	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 9.5 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 12.5	On or after January 1, 2026

(3) The portion of item 3 of Table 2 to section 197 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
3	On or after January 1, 2018 and before January 1, 2026

(4) Items 4 to 8 of Table 2 to section 197 of the Regulations are replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
4	Large heat pumps that have a cooling capacity of ≥ 19 kW and < 40 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 10.8 Heating coefficient of performance ≥ 3.4 with 8.3°C inlet air and ≥ 2.25 with −8.3°C inlet air IEER ≥ 13.9	On or after January 1, 2026
5	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-98	Energy efficiency ratio ≥ 9.1 Heating coefficient of performance ≥ 3.1 with 8.3°C inlet air and ≥ 2.0 with −8.3°C inlet air	On or after December 31, 1998 and before January 1, 2010
6	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-06 for energy efficiency ratio and heating coefficient of performance AHRI 340/360 for IEER	Energy efficiency ratio ≥ 10.4 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 10.5	On or after January 1, 2010 and before January 1, 2018
7	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-17	Energy efficiency ratio ≥ 10.4 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 11.4	On or after January 1, 2018 and before January 1, 2026
8	Large heat pumps that have a cooling capacity of ≥ 40 kW and < 70 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 10.4 Heating coefficient of performance ≥ 3.3 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 13.3	On or after January 1, 2026
9	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-06 for energy efficiency ratio and heating coefficient of performance AHRI 340/360 for IEER	Energy efficiency ratio ≥ 9.3 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 9.4	On or after January 1, 2010 and before January 1, 2018
10	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-17	Energy efficiency ratio ≥ 9.3 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 10.4	On or after January 1, 2018 and before January 1, 2026
11	Large heat pumps that have a cooling capacity of ≥ 70 kW and < 223 kW	CSA C746-17 or 10 C.F.R. Appendix A	Energy efficiency ratio ≥ 9.3 Heating coefficient of performance ≥ 3.2 with 8.3°C inlet air and ≥ 2.05 with −8.3°C inlet air IEER ≥ 12.3	On or after January 1, 2026

32 (1) The portion of item 3 of the table to section 198 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
3	Large heat pumps manufactured on or after January 1, 2018 and before January 1, 2026

(2) The table to section 198 of the Regulations is amended by adding the following after item 3:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
4	Large heat pumps manufactured on or after January 1, 2026	CSA C746-17 or 10 C.F.R. Appendix A	(a) product classification set out in columns II and III of Table 2 of CSA C746-17; (b) cooling capacity, in kW (Btu/h); (c) energy efficiency ratio; (d) heating capacity, in kW (Btu/h); (e) heating coefficient of performance at 8.3°C; (f) heating coefficient of performance at −8.3°C; (g) information that indicates whether the product has a heating section and, if so, whether it is electric or other than electric; and (h) IEER.

33 The definition single package central heat pump in section 203 of the Regulations is replaced by the following:

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

34 (1) The portion of items 6 and 7 of Table 1 to section 205 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Testing Standard
6	10 C.F.R. Appendix M1, except that the very low temperature heating test (H4) must be conducted
7	10 C.F.R. Appendix M1, except that the very low temperature heating test (H4) must be conducted

(2) Items 2 to 5 of Table 2 to section 205 of the Regulations are replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
2	Single package central heat pumps that are through-the-wall	CSA C656-05	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.4	On or after February 3, 1995 and before January 1, 2023
3	Single package central heat pumps that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.3	On or after February 3, 1995 and before January 1, 2023
4	Single package central heat pumps, other than those that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0 Heating seasonal performance factor (Region V) ≥ 7.0	On or after January 1, 2023 and before January 1, 2026
5	Single package central heat pumps that are space-constrained	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.4	On or after January 1, 2023 and before January 1, 2026
6	Single package central heat pumps, other than those that are space-constrained	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted	Seasonal energy efficiency ratio 2 ≥ 13.4 Heating seasonal performance factor 2 (Region V) ≥ 5.3	On or after January 1, 2026
7	Single package central heat pumps that are space-constrained	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted	Seasonal energy efficiency ratio 2 ≥ 13.9 Heating seasonal performance factor 2 (Region V) ≥ 5.3	On or after January 1, 2026

35 (1) The portion of item 5 of the table to section 206 of the Regulations in column 3 is replaced by the following:
Item	Column 3 Information
5	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) information that indicates whether the results from the very low temperature heating test (H4) were included in the calculation of the heating seasonal performance factor 2 for Region V; (f) heating seasonal performance factor 2 for Region V; (g) heating capacity at −15°C (5°F) in kW (Btu/h), if the very low temperature heating test (H4) was conducted; (h) coefficient of performance at −15°C (5°F), if the very low temperature heating test (H4) was conducted; (i) off mode power consumption, in watts; and (j) phase of electric current.

(2) The portion of item 6 of the table to section 206 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Testing Standard
6	10 C.F.R. Appendix M1, except that the very low temperature heating test (H4) must be conducted for information set out in paragraphs (b) to (h)

(3) The portion of item 7 of the table to section 206 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
7	Single package central heat pumps that are three-phase and manufactured on or after January 1, 2023 and before January 1, 2026

(4) The table to section 206 of the Regulations is amended by adding the following after item 7:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
8	Single package central heat pumps that are three-phase and manufactured on or after January 1, 2026	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted for information set out in paragraphs (b) to (g)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) heating seasonal performance factor 2 for region V; (f) heating capacity at −15°C (5°F) in kW (Btu/h); (g) coefficient of performance at −15°C (5°F); and (h) phase of electric current.

36 (1) The Regulations are amended by adding the following after section 206:

Transitional provision — early compliance

206.1 A single package central heat pump that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 205 and 206 of these Regulations if it satisfies the requirements of sections 205 and 206 of the new Regulations that are applicable to single package central heat pumps that are manufactured on or after January 1, 2026.

(2) Section 206.1 of the Regulations is replaced by the following:

Early compliance

206.1 A single package central heat pump that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 205 and 206 if it satisfies the requirements of those sections that would have applied to the single package central heat pump if it had been manufactured on or after January 1, 2026.

37 The definition split system central heat pump in section 211 of the Regulations is replaced by the following:

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

38 Table 2 to section 213 of the Regulations is replaced by the following:

TABLE 2
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Split system central heat pumps, other than those that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 14.0 Heating seasonal performance factor (Region V) ≥ 7.1	On or after December 31, 1998 and before January 1, 2026
2	Split system central heat pumps that are small-duct and high-velocity	CSA C656-14	Seasonal energy efficiency ratio ≥ 12.0 Heating seasonal performance factor (Region V) ≥ 6.3	On or after December 31, 1998 and before January 1, 2026
3	Split system central heat pumps, other than those that are space-constrained or small-duct and high-velocity	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted	Seasonal energy efficiency ratio 2 ≥ 14.3 Heating seasonal performance factor 2 (Region V) ≥ 6.0	On or after January 1, 2026
4	Split system central heat pumps that are space-constrained	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted	Seasonal energy efficiency ratio 2 ≥ 13.9 Heating seasonal performance factor 2 (Region V) ≥ 5.6	On or after January 1, 2026
5	Split system central heat pumps that are small-duct and high-velocity	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted	Seasonal energy efficiency ratio 2 ≥ 14.0 Heating seasonal performance factor 2 (Region V) ≥ 5.5	On or after January 1, 2026

39 (1) The portion of item 2 of the table to section 214 of the Regulations in column 3 is replaced by the following:
Item	Column 3 Information
2	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) information that indicates whether the results from the very low temperature heating test (H4) were included in the calculation of the heating seasonal performance factor 2 for Region V; (f) heating seasonal performance factor 2 for Region V; (g) heating capacity at −15°C (5°F) in kW (Btu/h), if the very low temperature heating test (H4) was conducted; (h) coefficient of performance at −15°C (5°F), if the very low temperature heating test (H4) was conducted; (i) off mode power consumption, in watts; and (j) phase of electric current.

(2) The portion of item 3 of the table to section 214 of the Regulations in column 2 is replaced by the following:
Item	Column 2 Testing Standard
3	10 C.F.R. Appendix M1, except that the very low temperature heating test (H4) must be conducted for information set out in paragraphs (b) to (h)

(3) Item 4 of the table to section 214 of the Regulations is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
4	Split system central heat pumps that are three-phase and manufactured on or after December 31, 1998 and before January 1, 2026	CSA C656-14 for information set out in paragraphs (a) to (e)	(a) product classification set out in column II of Table 1 to CSA C656-14; (b) cooling capacity in kW (Btu/h); (c) heating capacity in kW (Btu/h); (d) seasonal energy efficiency ratio; (e) heating seasonal performance factor and the region for the factor; and (f) phase of electric current.
5	Split system central heat pumps that are three-phase and manufactured on or after January 1, 2026	10 C.F.R. Appendix F1, except that the very low temperature heating test (H4) must be conducted for information set out in paragraphs (b) to (g)	(a) type; (b) cooling capacity in kW (Btu/h); (c) heating capacity at 8.3°C (47°F) in kW (Btu/h); (d) seasonal energy efficiency ratio 2; (e) heating seasonal performance factor 2 for region V; (f) heating capacity at −15°C (5°F) in kW (Btu/h); (g) coefficient of performance at −15°C (5°F); and (h) phase of electric current.

40 (1) The Regulations are amended by adding the following after section 214:

Transitional provision — early compliance

214.1 A split system central heat pump that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 213 and 214 of these Regulations if it satisfies the requirements of sections 213 and 214 of the new Regulations that are applicable to split system central heat pumps that are manufactured on or after January 1, 2026.

(2) Section 214.1 of the Regulations is replaced by the following:

Early compliance

214.1 A split system central heat pump that is manufactured on or after January 1, 2025 and before January 1, 2026 is deemed to satisfy the requirements of sections 213 and 214 if it satisfies the requirements of those sections that would have applied to the split system central heat pump if it had been manufactured on or after January 1, 2026.

41 Section 257 of the Regulations is amended by adding the following in alphabetical order:

space-constrained,

with respect to a gas furnace, means one that

(a) uses single-phase electric current; and
(b) has an outdoor or indoor unit
- (i) that has an overall displacement that is — or two or more overall exterior dimensions that are — substantially smaller than those of other units of a similar heating capacity that are usually installed in single-family homes, and
- (ii) with respect to which an increase in the overall displacement or two or more overall exterior dimensions would result in a considerable increase in the usual cost of installation or in a significant loss in the utility of the product to the consumer. (à espace restreint)

42 Item 5.1 of the table to section 259 of the Regulations is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
5.1	Gas furnaces, other than gas furnaces for relocatable buildings or replacement non-condensing gas furnaces, that are space-constrained, have an input rate of ≤ 65.92 kW (225,000 Btu/h) and have an integrated cooling component	CSA P.2	Annual fuel utilization efficiency ≥ 90%	On or after January 1, 2024

43 (1) Item 2.3 of the table to section 260 of the Regulations is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
2.3	Gas furnaces, other than gas furnaces for relocatable buildings or replacement non-condensing gas furnaces, that are space-constrained, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), 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)	(a) maximum heat input and output nominal capacities, in kW (Btu/h); (b) annual fuel utilization efficiency; (c) type of fuel used; and (d) type of blower fan motor, namely brushless permanent magnet, permanent split-capacitor or other.

(2) The table to section 260 of the Regulations is amended by adding the following after item 4:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
5	Gas furnaces for relocatable buildings 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); and (e) product’s maximum airflow (Q_max), expressed in L/s (ft³/min).
6	Replacement non-condensing gas furnaces 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); and (e) product’s maximum airflow (Q_max), expressed in L/s (ft³/min).

44 (1) The Regulations are amended by adding the following after section 260:

Transitional provision — early compliance

260.1 A gas furnace that is manufactured on or after January 1, 2024 is deemed to satisfy the requirements of sections 259 and 260 of these Regulations if it satisfies the requirements of sections 259 and 260 of the new Regulations.

(2) Section 260.1 of the Regulations is repealed.

45 (1) The definition first-hour rating in section 369 of the Regulations is replaced by the following:

first-hour rating: means, in respect of an electric water heater, gas-fired storage water heater or oil-fired water heater, the measure of the maximum volume of hot water that the water heater can supply within an hour that begins when the water in the water heater is fully heated. (capacité de première heure)

(2) Section 369 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix E: means Appendix E to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Energy Consumption of Water Heaters, as amended from time to time, except for sections 5.1.1 and 5.1.2. (appendice E 10 C.F.R.)
electric water heater: means a stationary electric storage tank water heater that is intended for use on a pressurized water system and has a V_r of at least 50 L (13.21 US gallons). (chauffe-eau électrique)
gas-fired instantaneous water heater: means a flow-activated water heater that uses propane or natural gas for fuel, has a V_r that is less than or equal to 38 L (10 US gallons) and has an input rate to V_r ratio of at least 309 W/L (4,000 Btu/h/US gallon). (chauffe-eau instantané au gaz)
gas-fired storage water heater: means a stationary gas-heated water container that uses propane or natural gas for fuel and has a V_r of at least 76 L (20 US gallons). (chauffe-eau à réservoir alimenté au gaz)
oil-fired water heater: means a water heater that uses oil for fuel and has a V_r of at least 76 L (20 US gallons). (chauffe-eau à mazout)
V_eff: means the effective storage volume, expressed in litres, of a water heater’s storage tank, as determined in accordance with 10 C.F.R. Appendix E. (V_eff)

(3) Section 369 of the Regulations is renumbered as subsection 369(1) and is amended by adding the following:

Interpretation — draw pattern

(2) In this Division, a reference to

(a) a “very-small-usage” draw pattern is to be read as a reference to the draw pattern set out in Table III.1 to section 5.5 of 10 C.F.R. Appendix E;
(b) a “low-usage” draw pattern is to be read as a reference to the draw pattern set out in Table III.2 to section 5.5 of 10 C.F.R. Appendix E;
(c) a “medium-usage” draw pattern is to be read as a reference to the draw pattern set out in Table III.3 to section 5.5 of 10 C.F.R. Appendix E; and
(d) a “high-usage” draw pattern is to be read as a reference to the draw pattern set out in Table III.4 to section 5.5 of 10 C.F.R. Appendix E.

46 The definition electric water heater in section 370 of the Regulations is repealed.

47 Section 372 of the Regulations is replaced by the following:

Energy efficiency standards

372 (1) The energy efficiency standards set out in column 3 of the table to this section apply to an electric water heater described in column 1 that is manufactured during the periods set out in column 4.

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 subsection 369(1).

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Household electric water heaters that have a bottom inlet and a V_r of ≥ 50 L (13.2 US gallons) but ≤ 270 L (71.3 US gallons)	CSA C191-04	Standby loss, in W, ≤ 40 + 0.2 V_r	On or after February 3, 1995 and before May 6, 2029
2	Household electric water heaters that have a bottom inlet and a V_r of ≥ 50 L (13.2 US gallons) but < 76 L (20 US gallons)	CSA C191-04	Standby loss, in W, ≤ 40 + 0.2 V_r	On or after May 6, 2029
3	Household electric water heaters that have a bottom inlet and a V_r of > 270 L (71.3 US gallons) but ≤ 454 L (120 US gallons)	CSA C191-04	Standby loss, in W, ≤ 0.472 V_r − 33.5	On or after February 3, 1995 and before May 6, 2029
4	Household electric water heaters that have a top inlet and a V_r of ≥ 50 L (13.2 US gallons) but ≤ 27 L (71.3 US gallons)	CSA C191-04	Standby loss, in W, ≤ 35 + 0.2 V_r	On or after February 3, 1995 and before May 6, 2029
5	Household electric water heaters that have a top inlet and a V_r of ≥ 50 L (13.2 US gallons) but < 76 L (20 US gallons)	CSA C191-04	Standby loss, in W, ≤ 35 + 0.2 V_r	On or after May 6, 2029
6	Household electric water heaters that have a top inlet and a V_r of > 270 L (71.3 US gallons) but ≤ 454 L (120 US gallons)	CSA C191-04	Standby loss, in W, ≤ 0.472 V_r − 38.5	On or after February 3, 1995 and before May 6, 2029
7	Household electric water heaters that have a V_eff of ≥ 76 L (20 US gallons) but ≤ 208 L (55 US gallons)	10 C.F.R. Appendix E	Must have at least one of the following: (a) uniform energy factor of ≥ 0.8808 − 0.000211 V_eff, if draw pattern is very-small-usage; (b) uniform energy factor of ≥ 0.9254 − 0.000079 V_eff, if draw pattern is low-usage; (c) uniform energy factor ≥ 0.9307 − 0.000053 V_eff, if draw pattern is medium-usage; or (d) uniform energy factor ≥ 0.9349 − 0.000026 V_eff, if draw pattern is high-usage.	On or after May 6, 2029
8	Household electric water heaters that have a V_eff of ˃ 208 L (55 US gallons) but ≤ 454 L (120 US gallons)	10 C.F.R. Appendix E	Uniform energy factor ≥ 0.9349 − 0.000026 V_eff	On or after May 6, 2029
9	Commercial electric water heaters	10 C.F.R. Appendix B	Standby loss, in %/hr ≤ 0.3 + 102.2/V_s	On or after January 1, 2020

48 (1) The portion of item 1 of the table to section 373 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
1	Household electric water heaters manufactured on or after February 3, 1995 and before May 6, 2029

(2) The table to section 373 of the Regulations is amended by adding the following after item 1:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1.1	Household electric water heaters with a V_r of ≥ 50 L (13.2 US gallons) but < 76 L (20 US gallons), manufactured on or after May 6, 2029	CSA C191-04 for information set out in paragraphs (a) to (c)	(a) V_r; (b) nominal power input of upper and lower elements, in W; (c) standby loss, in W; and (d) cold water inlet configuration, namely, top inlet or bottom inlet.
1.2	Household electric water heaters with a V_r ≥ 76 L (20 US gallons) but ≤ 454 L (120 US gallons), manufactured on or after May 6, 2029	10 C.F.R. Appendix E	(a) V_r; (b) annual energy consumption, in kWh; (c) first-hour rating, in L; (d) V_eff; (e) uniform energy factor; and (f) input rate, in kW.

49 The Regulations are amended by adding the following after section 373:

Early compliance

373.1 An electric water heater that is manufactured on or after May 6, 2028 and before May 6, 2029 is deemed to satisfy the requirements of sections 372 and 373 if it satisfies the requirements of those sections that would have applied to the electric water heater if it had been manufactured on or after May 6, 2029.

50 The definition gas-fired storage water heater in section 374 of the Regulations is repealed.

51 (1) Subsection 376(2) of the Regulations is replaced by the following:

Testing standard — household

(2) A household gas-fired storage water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 1 that are applicable to a gas-fired storage water heater as defined in subsection 369(1).

(2) Subsection 376(4) of the Regulations is replaced by the following:

Testing standard — commercial

(4) A commercial gas-fired storage water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 2 that are applicable to a gas-fired storage water heater as defined in subsection 369(1).

(3) The portion of items 3 to 6 of Table 1 to section 376 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
3	On or after January 1, 2018 and before May 6, 2029
4	On or after January 1, 2018 and before May 6, 2029
5	On or after January 1, 2018 and before May 6, 2029
6	On or after January 1, 2018 and before May 6, 2029

(4) Table 1 to section 376 of the Regulations is amended by adding the following after item 6:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
7	Household gas-fired storage water heaters	10 C.F.R. Appendix E	Must have at least one of the following: (a) uniform energy factor of ≥ 0.3456 − 0.00053 V_eff, if draw pattern is very-small-usage; (b) uniform energy factor of ≥ 0.5982 − 0.00050 V_eff, if draw pattern is low-usage; (c) uniform energy factor of ≥ 0.6483 − 0.00045 V_eff, if draw pattern is medium-usage; or (d) uniform energy factor of ≥ 0.692 − 0.00034 V_eff, if draw pattern is high-usage.	On or after May 6, 2029

52 (1) The portion of item 1 of the table to section 377 of the Regulations in column 3 is replaced by the following:
Item	Column 3 Information
1	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) type of fuel used; (d) annual energy consumption, in kJ (Btu); (e) first-hour rating, in L; (f) V_r; and (g) energy factor.

(2) The portion of item 2 of the table to section 377 of the Regulations in columns 1 and 3 is replaced by the following:
Item	Column 1 Energy-using Product	Column 3 Information
2	Household gas-fired storage water heaters that are manufactured on or after January 1, 2018 and before May 6, 2029	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) type of fuel used; (d) annual energy consumption, in kJ (Btu); (e) first-hour rating, in L; (f) V_r; (g) energy factor, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 376; and (h) uniform energy factor and V_s, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 376.

(3) The table to section 377 of the Regulations is amended by adding the following after item 2:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
2.1	Household gas-fired storage water heaters that are manufactured on or after May 6, 2029	10 C.F.R. Appendix E	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) type of fuel used; (d) annual energy consumption, in kJ (Btu); (e) first-hour rating, in L; (f) V_r; (g) V_eff; and (h) uniform energy factor.

53 The definition oil-fired water heater in section 378 of the Regulations is repealed.

54 (1) Subsection 380(2) of the Regulations is replaced by the following:

Testing standard — household

(2) A household oil-fired water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 1 that are applicable to an oil-fired water heater as defined in subsection 369(1).

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

Testing standard — commercial

(4) A commercial oil-fired water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 2 that are applicable to an oil-fired water heater as defined in subsection 369(1).

(3) The portion of items 3 to 6 of Table 1 to section 380 of the Regulations in column 4 is replaced by the following:
Item	Column 4 Period of Manufacture
3	On or after January 1, 2018 and before May 6, 2029
4	On or after January 1, 2018 and before May 6, 2029
5	On or after January 1, 2018 and before May 6, 2029
6	On or after January 1, 2018 and before May 6, 2029

(4) Table 1 to section 380 of the Regulations is amended by adding the following after item 6:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
7	Household oil-fired water heaters	10 C.F.R. Appendix E	Must have at least one of the following: (a) uniform energy factor of ≥ 0.2509 − 0.00032 V_eff, if draw pattern is very-small-usage; (b) uniform energy factor ≥ 0.5330 − 0.00042 V_eff, if draw pattern is low-usage; (c) uniform energy factor ≥ 0.6078 − 0.00042 V_eff, if draw pattern is medium-usage; or (d) uniform energy factor ≥ 0.6815 − 0.00037 V_eff, if draw pattern is high-usage.	On or after May 6, 2029

55 (1) The portion of item 1 of the table to section 381 of the Regulations in column 3 is replaced by the following:
Item	Column 3 Information
1	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) annual energy consumption, in kJ (Btu); (d) first-hour rating, in L; (e) V_r; and (f) energy factor.

(2) Item 2 of the table to section 381 of the Regulations is replaced by the following:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
2	Household oil-fired water heaters that are manufactured on or after January 1, 2018 and before May 6, 2029	CSA B211-00, 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 380 CSA P.3-15, 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 380	(a) input rate, kW (Btu/h); (b) recovery efficiency; (c) annual energy consumption, in kJ (Btu); (d) first-hour rating, in L; (e) V_r; (f) energy factor; and (g) uniform energy factor and V_s, 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 380.
2.1	Household oil-fired water heaters that are manufactured on or after May 6, 2029	10 C.F.R. Appendix E	(a) input rate, in kW (Btu/h); (b) recovery efficiency; (c) annual energy consumption, in kJ (Btu); (d) first-hour rating, in L; (e) V_r; (f) V_eff; and (g) uniform energy factor.

56 (1) The definition gas-fired instantaneous water heater in section 382 of the Regulations is repealed.

(2) The definition 10 C.F.R Appendix C in section 382 of the English version of the Regulations is amended by replacing “10 C.F.R Appendix C” with “10 C.F.R. Appendix C”.

57 (1) Subsection 385(2) of the Regulations is replaced by the following:

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 subsection 369(1).

(2) The table to section 385 of the Regulations is replaced by the following:

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing 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 and before May 6, 2029
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 and before May 6, 2029
3	Household gas-fired instantaneous water heaters that have a maximum flow rate of < 6.4 L/min	10 C.F.R. Appendix E	Uniform energy factor ≥ 0.86	On or after May 6, 2029
4	Household gas-fired instantaneous water heaters that have a maximum flow rate of ≥ 6.4 L/min	10 C.F.R. Appendix E	Uniform energy factor ≥ 0.87	On or after May 6, 2029
5	Commercial gas-fired instantaneous water heaters	10 C.F.R. Appendix C	Thermal efficiency ≥ 94%	On or after July 1, 2023

58 (1) The portion of item 1 of the table to section 386 of the Regulations in column 1 is replaced by the following:
Item	Column 1 Energy-using Product
1	Household gas-fired instantaneous water heaters manufactured on or after January 1, 2020 and before May 6, 2029

(2) The table to section 386 of the Regulations is amended by adding the following after item 1:
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Information
1.1	Household gas-fired instantaneous water heaters manufactured on or after May 6, 2029	10 C.F.R. Appendix E	(a) V_r; (b) V_eff; (c) type of fuel used; (d) input rate, in kW (Btu/h); (e) maximum flow rate; and (f) uniform energy factor.

59 The reference “[382 to 423 reserved]” after section 386 of the Regulations is replaced by the following:

[387 to 423 reserved]

60 (1) The definitions ANSI C78.20, appliance lamp, coloured lamp, IES LM45, IES LM49, IES LM65, incandescent reflector lamp, infrared lamp, modified spectrum lamp, rough service lamp, shatter-resistant lamp, silver bowl lamp, submersible lamp and vibration service lamp in section 424 of the Regulations are repealed.

(2) The definitions CIE 13.3, CIE 15 and plant lamp in section 424 of the Regulations are replaced by the following:

CIE 13.3: means the CIE standard CIE 013.3-1995 entitled Method of Measuring and Specifying Colour Rendering Properties of Light Sources. (CIE 13.3)
CIE 15: means the CIE standard CIE 015:2004 entitled Colorimetry. (CIE 15)
plant lamp: means a lamp that is designed and marketed for plant growing applications and that emits its highest radiant power peaks in the range of 440 to 490 nm, 620 to 740 nm or both of these ranges of the electromagnetic spectrum. (lampe pour horticulture)

(3) Section 424 of the Regulations is amended by adding the following in alphabetical order:

colour rendering index: means the measured degree of colour shift that objects undergo when they are illuminated by a light source as compared with the colour of those same objects when they are illuminated by a reference source of comparable colour temperature. (indice de rendu des couleurs)
former Regulations: means these Regulations as they read immediately before the day on which subsection 1(2) of the Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18) comes into force. (règlement antérieur)

61 Section 425 of the Regulations is replaced by the following:

Label required

425 (1) Every general service lamp that is manufactured on or after January 1, 2027 and that, for the purpose of sale or lease, is shipped from one province to another or imported into Canada must be labelled in accordance with sections 426 to 429.

Former Regulations

(2) Sections 425 to 429 of the former Regulations continue to apply in respect of a lamp that is referred to in section 425 of the former Regulations that is manufactured before January 1, 2027.

62 (1) Paragraphs 426(1)(a) to (c) of the Regulations are replaced by the following:

(a) the words “Light output” and “Flux lumineux”, followed by the numerical value of the product’s luminous flux and the word “lumens”;
(b) the words “Efficacy” and “Efficacité”, followed by the numerical value of the product’s nominal efficacy and the words “lumens/watt”;
(c) the words “Power” and “Puissance”, followed by the numerical value of the product’s nominal power consumption and the word “watts”;
(d) the words “Life” and “Durée de vie”, followed by the numerical value of the product’s life and the words “hours” and “heures”, respectively; and
(e) the words “Light appearance” and “Apparence de la lumière”, followed by the numerical value of the product’s correlated colour temperature and the upper case letter “K” or the word “Kelvin”.

(2) Subsections 426(2) to (5) of the Regulations are replaced by the following:

Font and size

(2) The words “Light output”, “Flux lumineux”, “Efficacy”, “Efficacité”, “Power”, “Puissance”, “Life”, “Durée de vie”, “Light appearance” and “Apparence de la lumière” must be in the same font and be equal in size.

Font and size — units

(3) The words “lumens”, “lumens/watt”, “watts”, “hours”, “heures” and “Kelvin” and the upper case letter “K” must be in the same font and be equal in size, but they must not be more than 50% of the size of the words referred to in subsection (2).

Font and size — numerical values

(4) The numerical values indicating the product’s luminous flux, efficacy, nominal power, life and correlated colour temperature must be in the same font and be equal in size.

Three-way lamps

(5) If the product is a three-way lamp, the information required by paragraphs (1)(a) to (c) must be displayed for each level of the lamp’s operation.

Variable correlated colour temperature

(6) If the product has a variable correlated colour temperature, the information required by paragraph (1)(e) must be displayed for the lamp’s range of operation or for each level of its operation.

63 Section 427 of the Regulations is replaced with the following:

Model number

427 The lamp model number must be indicated on both the product packaging and the lamp itself.

64 The heading before section 430 and sections 430 to 432 of the Regulations are repealed.

65 Section 433 of the Regulations is replaced by the following:

Definitions

433 (1) The following definitions apply in this Subdivision.

10 C.F.R. 430.23(gg)

means paragraph 430.23(gg) of Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. 430.23(gg))

appliance lamp

means a lamp that

(a) is designed and marketed to operate in a household appliance such as a refrigerator, oven or vacuum cleaner; and
(b) has a maximum wattage of 40 W. (lampe pour appareil domestique)

black light lamp

means an ultraviolet lamp that has its highest radiant power peaks in the UV-A band (315 to 400 nm) of the electromagnetic spectrum. (lampe à lumière noire)

bug lamp

means a lamp that has radiant power peaks above 550 nm on the electromagnetic spectrum and a visible yellow coating. (lampe anti-insectes)

CFL

means a compact fluorescent lamp that has an integrated or non-integrated single base. It does not include circline or U-shaped lamps. (LFC)

coloured lamp

means a lamp that is designed and marketed as a coloured lamp and that, in each of its modes of operation, has,

(a) if it is an incandescent lamp,
- (i) a colour rendering index of less than 50, as determined in accordance with CIE 13.3, or
- (ii) a correlated colour temperature of less than 2500 K or greater than 4600 K; and
(b) if it is a lamp other than an incandescent lamp,
- (i) a colour rendering index of less than 40, as determined in accordance with CIE 13.3, or
- (ii) a correlated colour temperature of less than 2500 K or greater than 7000 K. (lampe colorée)

fluorescent lamp

means a low-pressure mercury, electric-discharge source in which a fluorescing coating transforms some of the ultraviolet energy generated by the mercury discharge into light. (lampe fluorescente)

general lighting application

means lighting that provides an interior or exterior area with overall illumination. (source d’éclairage général)

general service incandescent lamp

means a standard incandescent lamp, including a halogen type lamp, that is intended for general lighting applications and that

(a) has a medium screw base;
(b) has a lumen range of not less than 310 lm and not more than 2600 lm or, in the case of a modified spectrum incandescent lamp, not less than 232 lm and not more than 1950 lm; and
(c) is capable of being operated at a voltage that is at least partially within the range from 110 V to 130 V.

It does not include an appliance lamp, black light lamp, bug lamp, coloured lamp, G-shape lamp — as described in ANSI C78.79 — with a diameter of 127 mm (5 in) or more, infrared lamp, left-hand thread lamp, marine lamp, marine signal service lamp, mine service lamp, plant lamp, R20 short lamp, sign service lamp, silver bowl lamp, showcase lamp or traffic signal lamp. (lampe à incandescence standard)

general service incandescent reflector lamp

means a lamp in which light is produced by a filament heated to incandescence by an electric current and that

(a) contains an inner reflective coating on the outer bulb to direct the light;
(b) has an R, PAR, ER, BR, BPAR or similar bulb shape with an E26 medium screw base;
(c) has a rated voltage or voltage range that lies at least partially in the range of 115 V to 130 V;
(d) has a diameter exceeding 57 mm (2.25 inches); and
(e) has a rated wattage of 40 W or higher.

It does not include a coloured lamp, rough service lamp, vibration service lamp or R20 short lamp. (lampe-réflecteur à incandescence standard)

general service lamp

means, subject to subsection (2), an electrical device that is used in general lighting applications and that

(a) has a base that complies with ANSI C81.61;
(b) is able to operate, in the case of an integrated lamp, at
- (i) a voltage of 12 V or 24V,
- (ii) a voltage ranging from 100 V to 130 V,
- (iii) a voltage ranging from 220 V to 240 V, or
- (iv) a voltage of 277 V or 347 V;
(c) is able to operate at any voltage, in the case of a non-integrated lamp; and
(d) has an initial lumen output of
- (i) at least 310 lm but no more than 3300 lm, or
- (ii) in the case of a modified spectrum incandescent lamp, at least 232 lm but no more than 3300 lm.

It includes a CFL, general service incandescent lamp, general service incandescent reflector lamp, general service LED lamp and general service OLED lamp. (lampe standard)

general service LED lamp

means an integrated or non-integrated lamp that is designed for use in general lighting applications and that uses light-emitting diodes as the primary source of light. (lampe à DEL standard)

general service OLED lamp

means an integrated or non-integrated lamp that is designed for use in general lighting applications and that uses organic light-emitting diodes as the primary source of light. (lampe à DELO standard)

infrared lamp

means a lamp that

(a) has its highest radiant power peaks in the infrared region of the electromagnetic spectrum (770 nm to 1 mm);
(b) has a rated wattage of 125 W or greater; and
(c) provides heat as its primary purpose. (lampe infrarouge)

integrated,

in relation to a lamp, means containing all of the components necessary for the starting and stable operation of the lamp, not including any replaceable or interchangeable parts, and being connected directly to a branch circuit through a base and corresponding socket that comply with ANSI standards. (intégrée)

LED downlight retrofit kit

means a retrofit kit that is designed and marketed to install into an existing downlight for the purpose of replacing the existing light source and related electrical components with a light source that uses light-emitting diodes as the primary source of light. It includes a kit that employs an ANSI standard lamp base, either integrated or connected to the downlight retrofit by wire leads. (ensemble de conversion à DEL)

left-hand thread lamp

means a lamp with the direction of threads on the lamp base oriented in the left-hand direction. (lampe à filetage à gauche)

light fixture

means a complete lighting unit consisting of at least one light source and at least one ballast or driver, together with the parts designed to distribute the light, to position and protect the light sources and to connect the light sources to the power supply. (luminaire)

marine lamp

means a lamp that is designed and marketed for use on boats and that can operate at a voltage ranging from 12 V to 13.5 V. (lampe marine)

modified spectrum incandescent lamp

means an incandescent lamp that, when operated at the rated voltage and wattage of the lamp, has a colour point on the CIE 1931 chromaticity diagram, figure 2, page 3 of IES LM16 that lies

(a) below the black-body locus; and
(b) at least 4 MacAdam steps, as referenced in IES LM16, distant from the colour point of a clear lamp with the same filament and bulb shape, operated at the same rated voltage and wattage.

It does not include a coloured lamp. (lampe à incandescence à spectre modifié)

R20 short lamp

means a lamp that is an R20 incandescent reflector lamp that is designed, labelled and marketed for pool and spa applications and that

(a) has a rated wattage of 100 W; and
(b) has a maximum overall length of 92 mm (3.625 inches). (lampe courte R20)

reflector lamp

means a lamp that has an R, PAR, BPAR, BR, ER, MR or similar bulb shape, as described in ANSI C78.79, and that is used to provide directional light. (lampe-réflecteur)

rough service lamp

means a lamp that is marketed as a rough service lamp and has any of the following filament constructions, as illustrated in figure 6.12 of the IES Handbook:

(a) a C-7A or C-11 filament construction with at least five supports exclusive of lead wires;
(b) a C-17 filament construction with eight supports exclusive of lead wires;
(c) a C-22 filament construction with 16 supports exclusive of lead wires. (lampe à construction renforcée)

shatter-resistant lamp

means a lamp that is designed and marketed as a shatter-resistant, shatter-proof or shatter-protected lamp and has an external silicone, polytetrafluoroethylene or similar coating applied to it for the purpose of resisting breakage and preventing glass from reaching its environment in the event of breakage. (lampe résistante à l’éclatement)

showcase lamp

means a lamp that is designed and marketed for use in a showcase, has a T-shape, as described in ANSI C78.79, and has a maximum rated wattage of 75 W. (lampe de vitrine)

sign service lamp

means a vacuum type or gas-filled lamp that is designed and marketed for use in a sign and that

(a) has sufficiently low bulb temperature to permit exposed outdoor use on high-speed flashing circuits; and
(b) has a maximum rated wattage of 15 W. (lampe d’enseigne)

silver bowl lamp

means a lamp that is marketed as a silver bowl lamp and that has an opaque reflective coating that is applied directly to a part of the bulb surface so that the light is reflected toward the lamp base. (lampe à calotte argentée)

specialty MR lamp

means a lamp that is designed and marketed for a specialty application and that has an MR shape, as described in ANSI C78.79, a diameter of less than or equal to 57 mm (2.25 inches) and a lifetime of 300 hours or less. (lampe MR spécialisée)

three-way incandescent lamp

means an incandescent lamp that is marketed as a three-way lamp and that employs two filaments, operated separately and in combination, to provide three light levels. (lampe à incandescence à trois intensités)

traffic signal lamp

means a lamp that is designed and marketed for use in a traffic signal module, as defined in section 523, and that has a lifetime of 8000 hours or greater. (lampe de signalisation routière)

TSD D7SB001

means the technical standards document D7SB001 published by the Minister and entitled General Service Lamps: Energy Efficiency Standards for General Service Lamps. (DNT D7SB001)

vibration service lamp

means a lamp that is sold at retail in packages of one or two, is designed and marketed as a vibration service lamp and

(a) has a maximum nominal power of 60 W; and
(b) has a C-5, C-7A or C-9 filament construction, as illustrated in figure 6.12 of the IES Handbook, or a similar configuration. (lampe antivibrations)

Exclusion — definition of general service lamp

(2) The definition general service lamp in subsection (1) does not include

(a) a light fixture;
(b) an LED downlight retrofit kit;
(c) an appliance lamp;
(d) a black light lamp;
(e) a bug lamp;
(f) a coloured lamp;
(g) a G-shape lamp, as described in ANSI C78.79, with a diameter of 127 mm (5 inches) or more;
(h) a high-intensity discharge lamp;
(i) an infrared lamp;
(j) a J-, JC-, JCD-, JCS-, JCV-, JCX-, JD-, JS- or JT-shape lamp that does not have an Edison screw base as defined in ANSI C81.61;
(k) a lamp that has a wedge base or pre-focus base;
(l) a left-hand thread lamp;
(m) a marine lamp;
(n) a marine signal service lamp;
(o) a mine service lamp;
(p) an MR-shape lamp that has a first number symbol equal to 16 (diameter equal to 51 mm (2 inches)), as described in ANSI C78.79, operates at 12 V and has a lumen output greater than or equal to 800 lm;
(q) a fluorescent lamp other than a CFL;
(r) a plant lamp;
(s) an R20 short lamp;
(t) a reflector lamp that
- (i) has a first number symbol less than 16 (diameter less than 51 mm (2 inches)), as described in ANSI C78.79, and
- (ii) does not have an E26/E24, E26d, E26/50x39, E26/53x39, E29/28, E29/53x39, E39, E39d, EP39 or EX39 base;
(u) an S-shape or G-shape lamp that has a first number symbol less than or equal to 12.5 (diameter less than or equal to 40 mm (1.5625 inches)), as described in ANSI C78.79;
(v) a sign service lamp;
(w) a silver bowl lamp;
(x) a showcase lamp;
(y) a specialty MR lamp;
(z) a T-shape lamp, other than a CFL, that
- (i) has a first number symbol less than or equal to 8 (diameter less than or equal to 25 mm (1 inch)), as described in ANSI C78.79, and
- (ii) has a nominal overall length less than 305 mm (12 inches); or
(z.1) a traffic signal lamp.

66 Subsection 434(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5, 435 and 436, a general service lamp is not considered to be an energy-using product if

(a) in the case of a general service incandescent lamp or general service incandescent reflector lamp, it is manufactured before January 1, 2026; or
(b) in any other case, it is manufactured before January 1, 2027.

67 Sections 435 and 436 of the Regulations are replaced by the following:

Application of former Regulations

434.1 (1) Sections 4, 5, 424 and 430 to 444 of the former Regulations continue to apply in respect of a lamp that is

(a) a CFL, as defined in section 430 of the former Regulations, manufactured before January 1, 2027;
(b) a general service lamp, as defined in subsection 433(1) of the former Regulations, manufactured before January 1, 2026;
(c) a modified spectrum incandescent lamp, as defined in section 437 of the former Regulations, manufactured before January 1, 2026; or
(d) a general service incandescent reflector lamp, as defined in section 441 of the former Regulations, manufactured before January 1, 2026.

Non-application — early compliance

(2) Subsection (1) does not apply in respect of a lamp that is deemed, under section 436.1, to satisfy the requirements of sections 4, 5, 435 and 436.

Energy efficiency standards

435 (1) The energy efficiency standards set out in TSD D7SB001 apply to general service lamps.

Testing standard

(2) A general service lamp complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by 10 C.F.R. 430.23(gg).

Information

436 For the purposes of subsection 5(1) of the Act, the following information must be provided to the Minister in respect of a general service lamp:

(a) a description of the lamp, collected in accordance with ANSI C78.79; and
(b) the following information, collected in accordance with 10 C.F.R. 430.23(gg):
- (i) the rated lumen output or, in the case of a three-way lamp, the three rated lumen outputs, in lumens,
- (ii) the rated power or, in the case of a three-way lamp, the three values for rated power, in watts,
- (iii) the rated lamp efficacy, in lm/W,
- (iv) the rated life, in hours,
- (v) the rated correlated colour temperature or range of correlated colour temperatures, in degrees Kelvin, and
- (vi) the rated colour rendering index.

68 (1) The Regulations are amended by adding the following after section 436:

Transitional provision – early compliance

436.1 A general service lamp, as defined in subsection 433(1) of the new Regulations, is deemed to satisfy the requirements of sections 4 and 5 of these Regulations and any applicable requirements of this Division if

(a) in the case of a general service incandescent lamp or general service incandescent reflector lamp, as those terms are defined in subsection 433(1) of the new Regulations, it is manufactured on or after January 1, 2024 and before January 1, 2026 and satisfies the requirements of sections 4, 5, 435 and 436 of the new Regulations that would have applied to the lamp if it had been manufactured on or after January 1, 2026; and
(b) in any other case, it is manufactured on or after January 1, 2025 and before January 1, 2027 and satisfies the requirements of sections 4, 5, 435 and 436 of the new Regulations that would have applied to the lamp if it had been manufactured on or after January 1, 2027.

(2) Section 436.1 of the Regulations is replaced by the following:

Early compliance

436.1 A general service lamp is deemed to satisfy the requirements of sections 4, 5, 435 and 436 if

(a) in the case of a general service incandescent lamp or general service incandescent reflector lamp, it was manufactured on or after January 1, 2024 and before January 1, 2026 and satisfies the requirements of sections 4, 5, 435 and 436 that would have applied to the lamp if it had been manufactured on or after January 1, 2026; and
(b) in any other case, it was manufactured on or after January 1, 2025 and before January 1, 2027 and satisfies the requirements of sections 4, 5, 435 and 436 that would have applied to the lamp if it had been manufactured on or after January 1, 2027.

69 Sections 437 to 444 of the Regulations are repealed.

70 The reference “[594 to 634 reserved]” after section 593 of the Regulations is replaced by the following:

SUBDIVISION F

Line Voltage Thermostats

Definitions

594 (1) The following definitions apply in this Subdivision.

control point

means the temperature value, measured at the centre of the test room, that is used to verify the performance of a line voltage thermostat at the set point. (température de contrôle)

CSA C828-19

means the CSA standard CSA C828:19 entitled Performance requirements for line voltage thermostats used with individual room electric space heating devices. (CSA C828-19)

differential

means the difference between the maximum and minimum air temperatures at the centre of the test room, calculated at 50% duty cycle. (différentielle)

droop

means the difference between the minimum air temperatures at the centre of the test room, calculated at 20% and 80% duty cycle, respectively. (dérive)

line voltage thermostat

means, subject to subsection (2), a thermostat that is used with a line voltage of between 120 V and 240 V, is intended for switching of a controlled resistive heating load and is one of the following:

(a) a wall-mounted thermostat designed to be used with baseboards, panel convectors or radiant floors;
(b) a built-in thermostat having a nominal load from 1000 W to 1500 W that is used in baseboards or panel convectors; or
(c) a two-component thermostat. (thermostat à tension de secteur)

Exclusion — definition of line voltage thermostat

(2) The definition line voltage thermostat in subsection (1) does not include thermostats designed to be used exclusively for or built into

(a) fan-forced heaters;
(b) kick space heaters;
(c) fireplaces;
(d) thermal storage heaters;
(e) electric baseboards and convectors incorporating both convection and radiant heating elements;
(f) portable heaters; or
(g) central heating units under the control of a single thermostat.

Energy-using product

595 (1) A line voltage thermostat is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5, 596 and 597, a line voltage thermostat is not considered to be an energy-using product unless

(a) in the case of a wall-mounted thermostat or a two-component thermostat, it is manufactured on or after July 1, 2026; and
(b) in the case of a built-in thermostat, it is manufactured on or after July 1, 2027.

Energy efficiency standards

596 (1) The energy efficiency standards set out in clause 4.4 of CSA C828-19 apply to a line voltage thermostat.

Testing standard

(2) A line voltage thermostat complies with the energy efficiency standard when tested in accordance with the applicable testing procedures established by CSA C828-19.

Information

597 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C828-19 and provided to the Minister in respect of a line voltage thermostat:

(a) its equipment class;
(b) its nominal voltage;
(c) its maximum nominal load, expressed in watts;
(d) its minimum nominal load, expressed in watts;
(e) its droop, expressed in degrees Celsius;
(f) its differential, expressed in degrees Celsius; and
(g) its control point precision, expressed in degrees Celsius.

[598 to 634 reserved]

71 The definitions IEC 60034-2-1 and IEEE 112 in section 748 of the Regulations are replaced by the following:

IEC 60034-2-1: means the IEC standard CEI/IEC 60034-2-1 entitled Rotating electrical machines – Part 2-1: Standard methods for determining losses and efficiency from tests (excluding machines for traction vehicles). (CEI 60034-2-1)
IEEE 112: means the IEEE standard IEEE 112 entitled Standard Test Procedure for Polyphase Induction Motors and Generators. (IEEE 112)

72 The reference “[757 to 799 reserved]” after section 756 of the Regulations is replaced by the following:

[757 to 798 reserved]

73 (1) The heading of Division 13 of the Regulations is replaced by the following:

Plumbing Supply Fittings

(2) The Regulations are amended by adding the following before section 800:

Definition of 10 C.F.R. Appendix S

799 In this Division, 10 C.F.R. Appendix S means Appendix S to Subpart B, Part 430 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Measuring the Water Consumption of Faucets and Showerheads, as amended from time to time.

SUBDIVISION A

Commercial Pre-Rinse Spray Valves

74 The portion of section 800 of the Regulations before the first definition is replaced by the following:

Definitions

800 The following definitions apply in this Subdivision.

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

SUBDIVISION B

Faucets

Definitions

803.1 The following definitions apply in this Subdivision.

faucet

means

(a) a private lavatory faucet;
(b) a replacement aerator for a private lavatory faucet;
(c) a public lavatory faucet;
(d) a replacement aerator for a public lavatory faucet;
(e) a kitchen faucet, other than one that is designed and marketed exclusively for use in industrial, commercial or institutional kitchens;
(f) a replacement aerator for a kitchen faucet, other than one that is designed and marketed exclusively for use in industrial, commercial or institutional kitchens; or
(g) a metering faucet.

It does not include a faucet that is designed and marketed exclusively for use in health care facilities, a low-pressure water dispenser or a pot filler. (robinet)

low-pressure water dispenser

means a terminal fitting that dispenses drinking water at a pressure of 105 kPa (15 psi) or less. (distributeur d’eau à basse pression)

pot filler

means a terminal fitting that can accommodate only a single supply water inlet, with an articulated arm or the equivalent that allows the product to reach to fill vessels when in use and allows the product to be retracted when not in use. (robinet remplisseur)

Energy-using product

803.2 (1) A faucet is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 803.3, a faucet is not considered to be an energy-using product unless it is manufactured on or after July 1, 2026.

Energy efficiency standards

803.3 (1) The energy efficiency standards set out in column 2 of the table to this section apply to faucets described in column 1.

Testing standard

(2) A faucet complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by 10 C.F.R. Appendix S.

TABLE
Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Private lavatory faucets and replacement aerators for private lavatory faucets	Maximum water flow rate ≤ 4.7 L/min (1.2 US gallons/min) measured at 414 kPa (60 psi)
2	Public lavatory faucets — other than metering faucets — and replacement aerators for public lavatory faucets	Maximum water flow rate ≤ 2.0 L/min (0.5 US gallons/min) measured at 414 kPa (60 psi)
3	Kitchen faucets and replacement aerators for kitchen faucets	Maximum water flow rate ≤ 7.0 L/min (1.8 US gallons/min), with optional temporary flow rate ≤ 8.5 L/min (2.2 US gallons/min) measured at 414 kPa (60 psi)
4	Metering faucets	Maximum water flow rate ≤ 0.95 L/cycle (0.25 US gallons/cycle) measured at 414 kPa (60 psi)

Information

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

(a) its type;
(b) the maximum water flow rate, expressed in litres per cycle (US gallons per cycle) for metering faucets and in litres per minute (US gallons per minute) for other faucets;
(c) if the product is a kitchen faucet with the capacity for temporary flow rate increase, the maximum flow rate of that temporary flow, expressed in litres per minute (US gallons per minute), in addition to the information referred to in paragraph (b); and
(d) the water pressure at which the maximum water flow rate was measured, expressed in kPa (psi).

SUBDIVISION C

Showerheads

Definition of showerhead

803.5 In this Subdivision, showerhead means a component or set of components with one or multiple nozzles that is intended for attachment to a single supply fitting for spraying water onto a bather. It does not include a showerhead designed and marketed exclusively for the emergency washing of a person who has been exposed to hazardous materials or a showerhead designed and marketed exclusively for use in health care facilities.

Energy-using product

803.6 (1) A showerhead is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 803.7, a showerhead is not considered to be an energy-using product unless it is manufactured on or after July 1, 2026.

Energy efficiency standard

803.7 (1) The energy efficiency standards set out in column 2 of the table to this section apply to showerheads described in column 1. For showerheads with multiple nozzles, the maximum water flow rate applies regardless of the number of nozzles in use.

Testing standard

(2) A showerhead complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by 10 C.F.R. Appendix S.

TABLE
Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Showerheads with one nozzle	Maximum water flow rate ≤ 7.0 L/min (1.8 U.S. gallons/min) measured at 552 kPa (80 psi)
2	Showerheads with multiple nozzles	Maximum water flow rate ≤ 7.0 L/min (1.8 U.S. gallons/min) measured at 552 kPa (80 psi)

Information

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

(a) the number of nozzles;
(b) the maximum water flow rate when all nozzles are used, expressed in litres per minute (US gallons per minute); and
(c) the water pressure at which the maximum water flow rate was measured, expressed in kPa (psi).

76 The Regulations are amended by adding the following after section 807:

SUBDIVISION B

Pool Pumps

Definitions

808 (1) The following definitions apply in this Subdivision.

10 C.F.R. 431.465(f)

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

10 C.F.R. 431.465(g)

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

10 C.F.R. 431.465(h)

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

10 C.F.R. Appendix C

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

pool pump

means, subject to subsection (2), a pump that is designed for use with a pool or spa and that is

(a) a filter pump that has a hydraulic power of less than 1.865 kW (2.5 HP);
(b) a pressure cleaner booster pump;
(c) a waterfall pump with a maximum head less than or equal to 9.144 m (30 ft) and a maximum speed less than or equal to 1800 RPM;
(d) a pump with an integral sand filter;
(e) a pump with an integral cartridge filter;
(f) a pump for a storable electric spa; or
(g) a pump for a rigid electric spa. (pompe de piscine)

Exclusion — definition of pool pump

(2) The definition pool pump in subsection (1) does not include

(a) a clean water pump;
(b) a circulator pump;
(c) a submersible pump;
(d) a pool filter pump with hydraulic output power equal to or greater than 1.865 kW (2.5 HP); or
(e) a pump marketed exclusively for commercial use that has
- (i) an orifice on the pump body that accepts suction side plumbing connections that has an inner diameter greater than 72 mm (2.85 inches), and
- (ii) a measured performance greater than or equal to 757 litres per minute (200 US gallons per minute) at 15.24 m (50 feet) of head.

Energy-using product

809 (1) A pool pump is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 810, a pool pump is not considered to be an energy-using product unless it is manufactured on or after January 1, 2026.

Energy efficiency standards

810 (1) The energy efficiency standards set out in column 3 of the table to this section apply to pool pumps described in column 1.

Testing standard

(2) A pool pump complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by the standard, if any, set out in column 2 of the table to this section.

TABLE
Item	Column 1 Energy-using Product	Column 2 Testing Standard	Column 3 Energy Efficiency Standard
1	Self-priming pool filter pumps that have a single phase electric motor and hydraulic horsepower of 0.711 HP or more but less than 2.5 HP	10 C.F.R. Appendix C	10 C.F.R. 431.465(f) 10 C.F.R. 431.465(h)
2	Self-priming pool filter pumps that have a single phase electric motor and hydraulic horsepower of less than 0.711 HP	10 C.F.R. Appendix C	10 C.F.R. 431.465(f) 10 C.F.R. 431.465(h)
3	Non-self-priming pool filter pumps that have hydraulic horsepower of less than 2.5 HP	10 C.F.R. Appendix C	10 C.F.R. 431.465(f) 10 C.F.R. 431.465(h)
4	Pressure cleaner booster pumps	10 C.F.R. Appendix C	10 C.F.R. 431.465(f) 10 C.F.R. 431.465(h)
5	Waterfall pumps	10 C.F.R. Appendix C	10 C.F.R. 431.465(h)
6	Integral sand filter pool pumps	None	10 C.F.R. 431.465(g) 10 C.F.R. 431.465(h)
7	Integral cartridge filter pool pumps	None	10 C.F.R. 431.465(g) 10 C.F.R. 431.465(h)
8	Storable electric spa pumps	None	10 C.F.R. 431.465(h)
9	Rigid electric spa pumps	None	10 C.F.R. 431.465(h)

Information

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

(a) its type;
(b) its nominal motor power, expressed in watts;
(c) its nominal hydraulic power, expressed in watts;
(d) its total power, expressed in watts;
(e) in the case of a self-priming pool filter pump, a non-self-priming pool filter pump, a waterfall pump or a pressure cleaner booster pump, its weighted energy factor;
(f) in the case of a pool pump with an integral filter, information that indicates whether it has a separate or built-in timer;
(g) information that indicates whether it has freeze protection controls;
(h) in the case of a pool pump with freeze protection controls, information that indicates whether freeze protection is enabled or disabled; and
(i) in the case of a pool pump with freeze protection controls that are enabled, its default dry-bulb air temperature setting, default run-time and default motor speed.

DIVISION 15

Air Compressors

Definitions

812 The following definitions apply in this Division.

10 C.F.R. 431.345

means the table to section 431.345 to Subpart T, Part 431 of Title 10 to the United States Code of Federal Regulations, as amended from time to time. (10 C.F.R. 431.345)

10 C.F.R. Appendix A

means Appendix A to Subpart T, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for Certain Air Compressors, as amended from time to time. (appendice A 10 C.F.R.)

air compressor

means a lubricated rotary compressor that is designed to compress air, has an inlet open to the atmosphere or another source of air, is made up of one or more compression elements (bare compressors), one or more drivers, mechanical equipment to drive the compression elements and any ancillary equipment and has all of the following features:

(a) it is driven by a brushless three-phase electric motor;
(b) it is air- or liquid-cooled;
(c) it is fixed- or variable-speed;
(d) it has a full-load operating pressure that is greater than or equal to 0.52 MPa (75 psig) and less than or equal to 1.38 MPa (200 psig);
(e) it has a full-load actual volume flow rate that is greater than or equal to 0.99 m³/min (35 cfm) or has a motor whose nominal power is greater than or equal to 7.46 kW (10 HP); and
(f) it has a full-load actual volume flow rate that is less than or equal to 35.4 m³/min (1250 cfm) or is sold or supplied with a compressor motor whose nominal power is less than or equal to 149.14 kW (200 HP).

It does not include a liquid ring compressor, a reciprocating compressor or a rotary-type positive displacement compressor for use in the petroleum, petrochemical or natural gas industries. (compresseur d’air)

compressor

means a machine or apparatus that converts different types of energy into the potential energy of gas pressure for displacement and compression of gaseous media to any pressure value above atmospheric pressure and has a pressure ratio at full-load operating pressure greater than 1.3. (compresseur)

Energy-using product

813 (1) An air compressor is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 814, an air compressor is not considered to be an energy-using product unless it is manufactured on or after July 1, 2026.

Energy efficiency standard

814 (1) The energy efficiency standard that applies to an air compressor is the minimum package isentropic efficiency set out for the applicable equipment class in 10 C.F.R. 431.345.

Testing standard

(2) An air compressor complies with the energy efficiency standard if it meets that standard when tested in accordance with the applicable testing procedures established by 10 C.F.R. Appendix A.

Information

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

(a) its equipment class;
(b) the air compressor motor nominal power, expressed in kilowatts (HP);
(c) its dimensionless full-load package isentropic efficiency or part-load package isentropic efficiency, as applicable;
(d) its full-load actual volume flow rate, expressed in m³/min (cfm);
(e) its full-load operating pressure, expressed in MPa (psig);
(f) its maximum full-flow operating pressure, expressed in MPa (psig);
(g) its pressure ratio at full-load operating pressure; and
(h) if any ancillary equipment that is not part of the air compressor package is installed for testing,
- (i) a description of the ancillary equipment,
- (ii) the manufacturer of the ancillary equipment and, if it is different than the manufacturer, the brand,
- (iii) the model number of the ancillary equipment,
- (iv) the serial number of the ancillary equipment, if any, and
- (v) the input voltage, number of phases and input frequency of the ancillary equipment, if applicable.

77 The Regulations are amended by adding, after Schedule 3, the Schedule 4 set out in the schedule to these Regulations.

Coming into Force

78 (1) Subject to subsection (2), these Regulations come into force on the day that, in the sixth month after the month in which these Regulations are published in the Canada Gazette, Part II, has the same calendar number as the day on which they are published or, if that sixth month has no day with that number, the last day of that sixth month.

(2) Subsections 1(1), 19(1), 23(1), 36(1), 40(1), 44(1) and 68(1) come into force on the day on which these Regulations are published in the Canada Gazette, Part II.

SCHEDULE

(Section 77)

SCHEDULE 4

(Section 147)

Explanation for Elements on Portable Air Conditioner Energy Efficiency Label

Explanation for Elements on Portable Air Conditioner Energy Efficiency Label – Text version below the image

Explanation for Elements on Portable Air Conditioner Energy Efficiency Label - Text version

The graphic depicts the form of the bilingual EnerGuide label for a portable air conditioner manufactured on or after January 10, 2025, and provides instructions for the information that must be on the label. Except for the EnerGuide logo, which has white text on a black background, all text on the label is black on a white background. The label displays the following information about the portable air conditioner: its combined energy efficiency ratio, product category and model number. The label also displays a horizontal scale that shows the combined energy efficiency ratio of the product relative to other products of the same category. From top to bottom, the elements of the label and their associated instructions are the following: The Canada word mark is at the top of the graphic. The EnerGuide logo is prominently displayed underneath the Canada word mark. Below, under the heading “Combined Energy Efficiency Ratio”, the value “A.A” is prominently displayed. The instruction for this value states, “Replace “A.A” with combined energy efficiency ratio of portable air conditioner.” Next, the label depicts a gradient scale that gradually changes from black on the left to white on the right. The value “B.B” is displayed at the left endpoint of the scale, immediately above a bolded heading that states “Least energy efficient”. The instruction for this value states, “Replace “B.B” with the value of least energy-efficient model.” The value “C.C” is displayed at the right endpoint of the scale, immediately above a bolded heading that states “Most energy efficient”. The instruction for this value states, “Replace “C.C” with value of most energy-efficient model.” Immediately above the scale and depicted as an inverted black triangle is the combined energy efficiency ratio indicator that is used to mark the relative energy efficiency of the product at issue. The instruction for this indicator states, “Position model on combined energy efficiency ratio scale relative to others.” Next below, at the left margin, is the heading “Similar models compared”. The value “DDD”, which is related to this heading, is centered on the graphic. The instruction for this value states, “Replace “DDD” with single-duct and dual-duct portable air conditioners.” Next below, at the left margin, is the heading “Model number”. The value “FFF”, which is related to this heading, is centered on the graphic. The instruction for this value states, “Replace “FFF” with model number.” Lastly, the graphic provides a reminder that “Removal of this label before first retail purchase is an offence (S.C. 1992, c. 36).”

SCHEDULE 4 (continued)

SCHEDULE 4 (continued) – Text version below the image

SCHEDULE 4 (continued) - Text version

The graphic depicts the form of the bilingual EnerGuide label for a portable air conditioner manufactured on or after January 10, 2025, and provides the external dimensions of the label and the font types and sizes. The external dimensions of the label are 13.49 cm by 14.76 cm. The colour of the label is black and white. The font and size requirements of the elements of the graphic, from top to bottom, are the following: The EnerGuide logo is in 42.8 pt. Helvetica black, with -2.5 pt. letter spacing. The heading “Combined Energy Efficiency Ratio” is in 9 pt. Helvetica bold. The acronym “CEER” is located immediately beside that heading, is boxed and is in 10 pt. Helvetica bold, with -2 pt. letter spacing. The value “A.A” is in 82 pt. Helvetica bold, with -2 pt. letter spacing. The words “This model”, which appear next to the combined energy ratio indicator, are in 8 pt. Helvetica. The values “B.B” and “C.C” are in 10 pt. Helvetica. The headings “Least energy-efficient” and “Most energy-efficient” are in 11.5/12 pt. Helvetica bold. The headings “Similar models compared” and “Model number” are in 9.5 pt. Helvetica. The value “DDD” is in 10 pt. Helvetica bold. The value “FFF” is in 11 pt. Helvetica bold. The offence reminder statement is in 7 pt. Helvetica.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: Canada’s building sector (including homes, commercial and institutional buildings) and industrial sector are a significant contributor to Canada’s total energy consumption and greenhouse gas emissions. Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption, support the goal of net-zero emissions by 2050, and help Canadian consumers, businesses, institutions, and industries save on energy-related costs. This is often achieved by harmonizing regulatory requirements with Canadian provinces and our principal North American trading partners (including key U.S. states, such as California), and at this time, there are unnecessary regulatory differences across jurisdictions which can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. Given that California is the most populous U.S. state, manufacturers serving the North American market cannot ignore California’s market size and therefore comply with the state’s standards. Aligning with California standards will ensure continued product availability in Canada. In this context, regulatory actions are necessary for some energy-using products to keep pace with regulatory changes that have taken place in Canadian provinces, California and the United States. Also, adjustments in the Energy Efficiency Regulations, 2016 are necessary to adapt quickly and maintain harmonization, where it is in Canada’s best interests. Finally, beyond harmonization, some energy-using products merit going further than U.S. federal energy efficiency standards, where Canada needs to provide federal Canadian requirements to which provinces can harmonize, thereby asserting Canada’s autonomy to pursue its domestic energy efficiency policies, to achieve the goals of (1) saving money for Canadians and businesses; (2) minimizing internal trade barriers by harmonizing provincial and federal energy efficiency regulations requirements wherever possible; and (3) leveraging energy efficiency as a strategic, low-cost manner to mitigate the impacts of increasing electric grid demands across Canada.

Description: Amendment 18 of the Energy Efficiency Regulations, 2016 adds or updates energy efficiency and testing standards for several new and currently regulated energy-using products to harmonize with provincial, state or U.S. federal regulations to assist with interprovincial and North American trade. The Amendment positions Natural Resources Canada to exercise Ministerial Regulations for more energy-using products to adjust quickly to changes and maintain harmonization in the future, where appropriate. Furthermore, the Amendment includes transitional provisions for specific products during which regulated parties have the opportunity, on a voluntary basis, to comply more quickly with the new requirements (voluntary early compliance). Finally, the Amendment also introduces some energy efficiency standards that are more stringent than the U.S. federal standards because the evidence demonstrates that the efficiency savings for Canadians and businesses are in the national interest to move ahead, and products are already widely available on the market. This means that several of the products (e.g. showerheads and furnaces) implicated in Amendment 18 already meet the proposed standards and therefore, there will be no product availability issues, but these regulations will ensure full market alignment in order to achieve greater energy savings. The energy efficiency gains from the Amendment represent the third largest petajoule annual gains out of all Energy Efficiency Regulations amendments to date since its inception.

Rationale: The Amendment will benefit Canadians by reducing energy consumption and resulting greenhouse gas emissions from products used in homes, commercial and institutional buildings, and industries. Homeowners, businesses, institutions, and industries will benefit from reduced energy costs associated with the use of more efficient technologies.

Throughout the development of the Amendment, stakeholders were provided several opportunities to comment on the changes that were considered. Overall, regulated parties are generally supportive of the Amendment and recognize its potential benefit for consumers, utility programs, and climate change. NRCan held informal discussions with stakeholders in light of recent statements by the U.S. government regarding their energy efficiency regulatory regime and to assess potential impacts on regulated parties. Through these discussions, NRCan learned that (a) the consultative process for Amendment 18 that was launched in 2022 has informed the development of plans by regulated parties to comply with the new requirements; and (b) the recent statements by the U.S. government have had no direct impact on regulated parties’ compliance plans. Amendment 18 is not expected to cause any negative impacts for stakeholders resulting from the changing context in the U.S. Overall, key associations and stakeholders remain supportive of advancing Amendment 18 as this offers clarity to their respective sectors along with increased ambition on energy efficiency. The industry continues to be supportive of aligning with U.S. federal or state standards.

The present value of the net benefits of the Amendment is estimated to be approximately $50 billion by 2050, with total benefits exceeding total costs by a ratio of more than 9:1. By 2050, the present value of benefits and costs from the Amendment is estimated to be approximately $55 billion and $5.6 billion, respectively. On an annualized average basis, this equates to benefits and costs of approximately $2.7 billion and $278 million, respectively. The Amendment is estimated to result in a total annual reduction of energy consumption in Canada of approximately 58 petajoules and 3.3 megatonnes of greenhouse gas emission reductions in 2050; and total cumulative energy consumption and greenhouse gas emission reductions of approximately 1 112 petajoules and 63 megatonnes of carbon dioxide equivalent by 2050.

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

If Canada does not amend the Energy Efficiency Regulations, 2016, select requirements will be misaligned with key testing standards and energy efficiency standards in Canadian provinces and the United States. These variations could impact interprovincial and cross-border trade, could require companies to test differently for Canada, and ultimately increase costs for citizens, businesses, and economies. In addition, in the absence of a regulatory approach, a market for low-efficiency products will continue.

The U.S. focus is on final rules that have recently been published under the previous Administration and are subject to review under the Congressional Review Act. None of the actions within Amendment 18 are harmonizing with recent U.S. final rules that are subject to this review. The U.S. Energy Policy and Conservation Act, the legislation that provides the Department of Energy (DOE) with regulatory authority over energy using products, was established in 1975. It has had broad bipartisan support due to its environmental and economic benefits and contains an “anti-backsliding” provision that prevents a decrease in the existing minimum required energy or water efficiency standard of a regulated product. This means that energy efficiency rules in the United States are difficult to repeal. In 2018, the U.S. administration attempted to avoid publishing energy efficiency rules, but they were sued by a group of attorney generals and a U.S. district court ruled that the DOE had violated the Energy Policy and Conservation Act.

Issues

Canada’s building sector (including homes and commercial and institutional buildings) and industrial sector are a significant contributor to Canada’s total energy consumption and GHG emissions. The levels of GHG emissions in the building sector are largely determined by the energy-using products used. Products that combust fossil fuels to generate heat can lead to direct carbon dioxide emissions at the site, while products that consume electricity can contribute to GHG emissions at the point of electricity generation. For instance, in 2021, the building sector and industrial sector accounted for over 17% and 41% of national GHG emissions respectively according to data from Natural Resources Canada’s (NRCan) National Energy Use Database (NEUD) — Comprehensive Energy Use Database and from Environment and Climate Change Canada’s National Inventory Report: Greenhouse Gas Sources and Sinks in Canada where the numbers include electricity-related emissions).

Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption and costs for consumers, businesses, institutions, and industries, ensure a more competitive, sustainable and resilient economy, and support the goal of net-zero emissions by 2050. This is often achieved by harmonizing regulatory requirements with Canadian provinces or Canada’s principal North American trading partners (including key U.S. states, such as California), and at this time, there are unnecessary differences across jurisdictions on energy efficiency or testing standards of products which can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. For example, divergence in testing standards for energy-using products may impose extra costs on industries, compelling them to conduct redundant tests for the same product model to meet Canadian, provincial and U.S. requirements. This scenario could result in reduced product availability and increased costs for Canadians. Furthermore, variations in energy efficiency standards might lead to more inefficient products in the Canadian market, translating to diminished energy savings for the country.

In this context, regulatory actions are necessary at this time for some energy-using products to keep pace with changes that have taken place within Canada and in the United States. Beyond harmonization, some energy-using products merit going further than the U.S. federal energy efficiency standards, where Canada needs to drive more significant energy savings to support the Government’s goal of reducing GHG emissions and achieving net-zero emissions by 2050. In addition, improved harmonization within Canada, through the adoption of stricter standards which, in some cases, have already been adopted at the provincial level, will promote interprovincial trade.

Finally, regulated parties have requested that harmonization with the United States be maintained more effectively, necessitating adjustments in the Energy Efficiency Regulations, 2016 to adapt quickly and maintain harmonization with changes that take place in the United States.

Background

In 1992, Parliament passed Canada’s Energy Efficiency Act (the Act). The Act provides for the making and enforcement of regulations for energy-using products, which are imported or shipped inter-provincially for the purpose of sale or lease by a dealer, to meet prescribed energy efficiency standards.

A “dealer” is defined under the Act as a person engaged in the business of (a) manufacturing energy-using products in Canada, (b) importing energy-using products into Canada, or (c) selling or leasing energy-using products obtained directly or indirectly from a person engaged in a business described in paragraph (a) or (b) or an agent thereof.

The Energy Efficiency Regulations, which came into force in 1995 to reduce energy consumption in Canada, continue to be a key tool to contribute to a competitive, sustainable, and resilient economy, and to reduce energy consumption and accelerate action to fight climate change through reducing greenhouse gas (GHG) emissions.

NRCan equipment-focussed programs are part of a larger ecosystem of programs designed to improve the energy efficiency of Canada’s homes, businesses, institutions, industries, and transportation. For example, NRCan has administered the ENERGY STAR for Products program in Canada since 2001. The program sets voluntary specifications for products and identifies the top 15% to 30% of energy efficiency performers with an ENERGY STAR^® symbol. The ENERGY STAR^® symbol makes choosing energy-efficient products easy for consumers (in the document, “consumers” refers to households, businesses, institutions, and industries). Therefore, the ENERGY STAR^® program encourages manufacturers to produce affordable high-efficiency products so that consumers can easily recognize their products as a good choice to lower energy costs. In addition, the ENERGY STAR^® for Industry program recognizes industrial and manufacturing facilities who commit to improving energy performance for the full facility, through the ENERGY STAR^® Challenge and ENERGY STAR^® Certification programs. Starting in 2021, NRCan also launched Canada Greener Homes Initiative programs which provide homeowners incentives to purchase more energy-efficient products, including space heating or water heating products (the Canada Greener Homes Affordability Program, the Oil to Heat Pump Affordability Program, the Canada Greener Homes Grant, the Canada Greener Homes Loan, and the Canada Greener Affordable Housing). The Green Industrial Facilities and Manufacturing Program also provides incentives for Industrial and Manufacturing sectors including retrofits and improved use of process equipment.

In 2016, the Energy Efficiency Regulations, 2016 (the Regulations) replaced the original Energy Efficiency Regulations to remove references to obsolete and out-of-date standards and improve the organization of the regulatory text, making it easier for regulated parties to find and understand the requirements that apply to them. The Regulations are regularly amended to add or update energy efficiency standards, testing standards, prescribed information, and verification requirements for energy-using products used in the residential, commercial, institutional and industrial sectors (for more details, see previous Regulatory announcements). Strengthening the level of energy efficiency standards for products contribute to the elimination of the least efficient products from the Canadian market.

Harmonizing energy-using product standards between Canada and the United States reduces burdens for regulated parties and aids in achieving mutual goals to reduce energy and related GHG emissions. In 2017, amendments to the Act provided the federal government with additional tools and greater flexibility to facilitate continued harmonization of Canada’s energy efficiency standards, testing standards, and prescribed information with those of its trading partners. These tools included: (1) the incorporation by reference of technical standards documents for the purpose of harmonizing and (2) the use of Ministerial Regulations to maintain alignment.

A “technical standards document” is defined under the Act as a document that is published in both official languages by the Minister and that adapts, combines, or reproduces, in whole or in part, documents that are produced by jurisdictions, standards development organizations or industry associations and that, for energy-using products or classes of energy-using products, set out requirements or guidance related to those requirements. The adaptations may include modifications to the content of the originating document. Incorporation of a technical standards document is made for the purpose of harmonization.

In 2018, Amendment 14, the Regulations Amending the Energy Efficiency Regulations, 2016: SOR/2018-201, was published in the Canada Gazette, Part II. At that time, the Regulatory Impact Analysis Statement stated that five industry associations submitted a joint letter during the public comment period requesting that NRCan, exercise the new Ministerial Regulating powers in order to more effectively maintain harmonization with other jurisdictions. NRCan agrees that harmonizing standards is a priority to meet commitments under the Canada–United States Regulatory Cooperation Council and federal-provincial-territorial collaboration. Later in 2022, Amendment 17, Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17): SOR/2022-265, specified for the first time a list of various energy-using products that could be considered for Ministerial Regulations in the future.

When combined, regulated energy efficiency standards, ENERGY STAR^® programs, and incentives for more efficient products drive product innovation through cycles of continuous improvement. Energy efficiency standards and labelling programs are also among the most cost-effective GHG emissions reduction policies and are the cornerstone of energy efficiency and climate change programs in more than 80 countries.^{footnote 2} According to the International Energy Agency, improvements to the energy efficiency of products are some of the lowest-cost options available today for reducing energy consumption and associated emissions, with typical society benefit-cost ratios of 4:1, while providing net financial benefits to individuals and the community. Other benefits include employment, product innovation, water savings, improvements in air quality, and the reduction of public expenditures on health and infrastructure.^{footnote 3}

Below is a list of government plans, memorandums of understanding and strategies for which the Amendment will demonstrate concrete actions on the commitments made in each of these plans.

In 2018, the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs Regarding the Canada–United States Regulatory Cooperation Council was signed to move forward on energy efficiency and foster harmonization of federal regulations where feasible and appropriate. Later in June 2021, NRCan and the United States Department of Energy (U.S. DOE) signed the Memorandum of Understanding Between the Department of Natural Resources of Canada and the Department of Energy of the United States of America Concerning Cooperation on Energy, which acknowledges that both countries will collaborate on new and updated energy efficiency and testing standards. Recently, in May 2024, both countries have reaffirmed a shared commitment to regulatory cooperation by revitalizing the Canada-United States Regulatory Partnership.

Canada’s transition to a clean energy future and its commitment to reach net-zero emissions by 2050 requires collective action to reduce GHG emissions. Major reductions can be achieved by making our homes, buildings, and industries (and the appliances and equipment in them) more energy efficient. Multiple actions to achieve reductions have been outlined in various Government of Canada plans, including Canada’s 2030 Emissions Reduction Plan: Canada’s Next Steps for Clean Air and a Strong Economy (2030 Emissions Reduction Plan), published in 2022. This 2030 Emissions Reduction Plan builds on continuing work in Canada’s strengthened climate plan (released in 2020) and the Pan-Canadian Framework on Clean Growth and Climate Change (adopted in 2016), which include actions to improve energy efficiency standards for appliances and equipment, to help achieve the more ambitious climate target of 40–45% emissions reductions by 2030.^{footnote 4}

The Government’s 2030 Emissions Reduction Plan outlines the next steps to achieve net-zero emissions by 2050 in multiple sectors. The plan identifies scaling up solutions in four areas to achieve net-zero in the building sector. These areas are: (1) net-zero energy sources to support eliminating fossil fuel combustion for heating; (2) efficient building envelopes; (3) efficient appliances and systems within buildings; and (4) the use of low carbon and net-zero building materials. Regulatory action to restrict the sale of lower efficiency appliances and fossil fuel heating systems, as well as establishing mandatory building GHG emissions and energy efficiency standards are outlined as important methods to assist in the Government’s goal to reduce GHG emissions and achieve net-zero emissions by 2050.

The 2030 Emissions Reduction Plan also highlights the importance of decarbonizing Canada’s heavy industry sector, which includes mining and manufacturing of various industrial and commercial products, for meeting Canada’s 2030 climate target, and especially net-zero emissions by 2050, while creating jobs and building a sustainable, globally competitive economy. The plan recognizes that in addition to the need to overcome challenges to decarbonization, such as energy-intensive processes and hard-to-abate process emissions associated with chemical processes, competitiveness in a low-carbon economy will require the heavy industry sector to use energy more efficiently.

The Federal Sustainable Development Strategy for 2022 to 2026 presents the Government of Canada’s sustainable development goals and targets, as required by the Federal Sustainable Development Act. NRCan actions to support this Strategy are described in its 2023 to 2027 Departmental Sustainable Development Strategy. These actions include regulatory amendments to increase the stringency of energy efficiency standards for products used in the residential, commercial and industrial sectors.

More recently, Canada has endorsed along with over 120 countries the Global Renewables and Energy Efficiency Pledge (the Pledge) which was officially launched on December 2, 2023, during the World Climate Action Summit, at COP-28. This initiative aims to accelerate the scaling up of renewables and energy efficiency progress by 2030, in line with commitments to keep global warming within 1.5°C and reach net-zero by 2050. While the aspirational goal of the Pledge is to double the global annual energy efficiency rate from approximately 2% to 4%, which Canada already reports to under UN Sustainable Development Goal 7, the overall focus is on each nation working towards doubling its annual progress. In Canada’s case, that means going from approximately 1% per year to approximately 2%. It is important to note that Canada’s energy intensity improved by approximately 11.3% between 2010 and 2020 (latest available data) and maintained an annual average improvement of approximately 1.3% (Canada’s methodology is based on secondary energy use, whereas the Pledge is measured based on total primary energy supply since many countries do not have end-use sector data). At COP-29 in November 2024, Canada has reaffirmed its commitment to global climate action and its determination to limit global warming to 1.5°C.

In July 2024, NRCan released The Canada Green Buildings Strategy: Transforming Canada’s buildings sector for a net-zero and resilient future that sets out the Government’s vision and next steps for greener, more energy efficient and affordable homes and buildings. This Strategy supports Canada’s climate goals by creating a framework for federal actions essential to reaching net-zero emissions in the building sector by 2050. These actions include, among others, the work on standards, labelling, and incentive programs to drive important improvements in how buildings, homes, and the products within them, consume energy.

Objective

The objectives of the Amendment are to

reduce energy consumption and resulting GHG emissions associated with products used in homes, businesses, institutions, and industries thereby helping Canadian consumers save on their energy bills, helping businesses, institutions and industries to experience cost savings that can lead to increased productivity and competitiveness, contributing to Canada’s commitment to reach net-zero emissions by 2050, and reducing the load on the electricity system.
reduce or prevent unnecessary regulatory differences within Canada and with the U.S. energy efficiency and testing standards to limit compliance burden and support cross-border trade; and
ensure that NRCan is positioned to respond quickly to changes and updates enabling continued harmonization with trading partners.

Description

The Amendment adds or updates energy efficiency and testing standards for several new and currently regulated energy-using products, focussing on key changes needed to harmonize with Canadian provinces, U.S. states and the United States, to the extent possible.

The Amendment also expands the use of ambulatory incorporation by reference, to U.S. standards already in force or to NRCan technical standards documents that reproduce U.S. standards; and makes adjustments to use Ministerial Regulations for additional energy-using products to maintain harmonization in the future, as appropriate.

In some cases, the Amendment introduces more stringent energy efficiency standards than the United States, to assist with achieving net-zero emissions by 2050. For instance, showerheads and faucets were regulated by the United States in 1994, but this is no longer reflective of the current market. As of 2024, a total of 13 states, including California, have adopted more stringent standards. NRCan selected California’s more recent regulations (2015) with which to align. A significant portion of the Canadian showerhead and faucet market is already at California levels and so choice and affordability is maintained for Canadians, while achieving greater energy savings. Another example is line voltage thermostats. These products are not regulated by the United States but are regulated by some Canadian provinces. Products are already available that meet provincial regulations, but a federal regulation will ensure greater consistency across all jurisdictions.

In particular, the Amendment

introduces products into the Regulations with associated requirements for energy efficiency standards, testing standards, verification, and provision of information;
expands the scope of some currently regulated products and introduces or updates energy efficiency and testing standards; and
updates the list of energy-using products to ensure the Minister can exercise the Ministerial Regulations authority to maintain harmonization of requirements with another jurisdiction.

Note that in this document, a reference to a U.S. standard means a reference to a standard specified in Title 10 to the United States Code of Federal Regulations (U.S. CFR).

A more detailed description of the Amendment is provided below. The definitions provided below are simplified to provide a general sense of the type of energy-using products covered, but actual scope, inclusions and exclusions are found in the Regulations.

(a) Introducing products into the Regulations with associated requirements for energy efficiency standards, testing standards, verification, and provision of information

Air compressors

An air compressor is a machine that compresses air to a pressure suitable for operating devices in the industry, such as power tools, nail guns, high-pressure spraying equipment, etc.

The Amendment incorporates the new U.S. energy efficiency and testing standard, as amended from time to time. The new requirements apply to air compressors manufactured on or after July 1, 2026.

Faucets

A faucet is a device by which the flow of water in a dwelling or building can be controlled. It includes lavatory faucets, kitchen faucets, metering faucets, or replacement aerators for a lavatory or kitchen faucet. A replacement aerator is an aerator sold as a replacement, separate from the faucet to which it is intended to be inserted or attached. The definition of faucet does not include pot fillers, low-pressure water dispensers, or faucets designed and marketed exclusively for healthcare and long-term care facilities.

The Amendment adopts energy efficiency standards harmonized with the current U.S. standards for metering faucets and with the current California standards for non-metering faucets (the state of California standards are more stringent than U.S. federal standards for non-metering faucets). The Amendment also incorporates the current U.S. testing standard, as amended from time to time. The energy efficiency standards introduce a maximum flow rate that limits the quantity of water passing through the product. The new requirements apply to faucets manufactured on or after July 1, 2026.

Line voltage thermostats

A line voltage thermostat is a thermostat that is an electronic or mechanical regulating device that is intended for line voltage (120 V to 240 V) switching of a controlled resistive heating load. It includes a wall-mounted thermostat used with baseboards, panel convectors or radiant floors; a built-in thermostat (from 1000 W to 1500 W) used in baseboards or panel convectors; and two-component thermostats.

The Amendment incorporates the Canadian Standards Association (CSA) standard CSA C828-19, as amended from time to time, for the testing and energy efficiency standards. British Columbia and Ontario have already adopted the CSA C828-19 standard for line voltage thermostats. The new requirements apply to wall-mounted thermostats and two-component thermostats manufactured on or after July 1, 2026, and to built-in thermostats manufactured on or after July 1, 2027.

Pool pumps

A pool pump is a pump that is typically used with a residential pool or spa with an output power that is less than 1.865 kW (2.5 hp). The definition of pool pumps excludes certain large connection, and large flow rate pumps marketed exclusively for commercial applications.

The Amendment incorporates the current U.S. energy efficiency and testing standards, as amended from time to time. The new requirements apply to pool pumps manufactured on or after January 1, 2026.

Showerheads

A showerhead is a component or set of components for attachment to a single water supply fitting, for spraying water onto a bather, typically from an overhead position. The definition of a showerhead does not include safety shower showerheads or showerheads designed and marketed exclusively for healthcare and long-term care facilities.

The Amendment adopts energy efficiency standards harmonized with the current standards of the state of California and other states, which are more stringent than U.S. federal standards, and incorporates the current U.S. testing standard, as amended from time to time. The energy efficiency standards introduce a maximum flow rate that limits the quantity of water passing through the product. The new requirements apply to showerheads manufactured on or after July 1, 2026.

(b) Expanding the scope of some currently regulated products and introduce or update energy efficiency and testing standards

Room air conditioners (Division 2, Subdivision A)

A room air conditioner is prescribed as an energy-using product in the Regulations. Room air conditioner means a single-phase electric air conditioner that has a cooling capacity of 10.55 kW (36 000 Btu/h) or less. Room air conditioners do not include packaged terminal air conditioners, portable air conditioners, or single package vertical air conditioners. Room air conditioners are typically used in the residential sector.

The Amendment incorporates an NRCan technical standards document, as amended from time to time, that reproduces the U.S. testing and energy efficiency standards. The Amendment also makes some adjustments to the labelling requirements. For products manufactured before May 26, 2026, the standards remain harmonized with the CSA standards currently referenced in the Regulations. For products manufactured on or after May 26, 2026, the new standards apply, in harmonization with the U.S. compliance date.

Large air conditioners (Division 2, Subdivision B)

A large air conditioner is prescribed as an energy-using product in the Regulations. Large air conditioner means a commercial or industrial unitary air conditioner with a cooling capacity of at least 19 kW (65 000 Btu/h) but less than 223 kW (760 000 Btu/h). The definition of large air conditioner does not include single package vertical air conditioners. The Amendment only applies to large air conditioners that are air-cooled.

The Amendment incorporates the current U.S. testing standards, as amended from time to time, as an alternative testing option, and strengthens energy efficiency standards to harmonize with the current more stringent U.S. energy efficiency standards (for tier 2). There is no change to the testing and energy efficiency standards for tier 1 since these standards are already harmonized with those in the U.S. CFR. The new requirements (for tier 2) apply to large air conditioners manufactured on or after January 1, 2026.

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

A single package central air conditioner is prescribed as an energy-using product in the Regulations. Single package central air conditioner means an air-source air conditioner with a rated capacity of less than 19 kW (65 000 Btu/h). It includes ducted and space-constrained single package air conditioners. Three-phase single package central air conditioners require a three-phase power supply. These air conditioners are typically used in small commercial and institutional buildings. This Amendment only applies to three-phase single package central air conditioners.

The Amendment incorporates the new U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard) and adopts new energy efficiency metrics to harmonize with the new U.S. levels. The new requirements apply to single package central air conditioners manufactured on or after January 1, 2026. However, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II.

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

A split system central air conditioner is prescribed as an energy-using product in the Regulations. Split system central air conditioner means an air-source air conditioner with a rated capacity of less than 19 kW (65 000 Btu/h). It includes ducted, ductless, space-constrained and small-high-velocity split system air conditioners. Three-phase split system central air conditioners require a three-phase power supply. These air conditioners are typically used in small commercial and institutional buildings. This Amendment only applies to three-phase split system central air conditioners.

The Amendment incorporates the new U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard), adopts new energy efficiency metrics and strengthens the energy efficiency standards to harmonize with the new U.S. levels. The new requirements apply to split system central air conditioners manufactured on or after January 1, 2026. However, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II.

Portable air conditioners (Division 2, Subdivision I)

A portable air conditioner is prescribed as an energy-using product in the Regulations. Portable air conditioner means a single package air conditioner that is portable and that is designed to deliver cooled and conditioned air to enclosed spaces, is powered by single-phase electric current and has a cooling capacity of less than 19 kW (65 000 Btu/h). The Amendment only applies to single-duct and dual-duct portable air conditioners. These portable air conditioners are typically used in the residential sector.

The Amendment introduces energy efficiency standards to harmonize with U.S. levels. There is no change to the testing standard since the Regulations already incorporate by reference, as amended from time to time, the U.S. testing standard. The Amendment also introduces EnerGuide labelling requirements generally harmonized with the current U.S. Federal Trade Commission Energy Labeling Rule that requires EnergyGuide labels for portable air conditioners. The new energy efficiency requirements apply to portable air conditioners manufactured on or after January 10, 2025, in harmonization with the U.S. compliance date. The new EnerGuide label requirements apply to portable air conditioners manufactured on or after January 10, 2025.

Large heat pumps (Division 3, Subdivision C)

A large heat pump is prescribed as an energy-using product in the Regulations. Large heat pump means a commercial or industrial unitary heat pump that is intended for air-conditioning and space heating applications and that has a cooling capacity of at least 19 kW (65 000 Btu/h) but less than 223 kW (760 000 Btu/h). The definition of large heat pump does not include single package vertical heat pumps. The Amendment only applies to large heat pumps that are air-cooled.

The Amendment incorporates the current U.S. testing standards, as amended from time to time, as an alternative testing option, and strengthens energy efficiency standards to harmonize with the current, more stringent U.S. levels (for tier 2). There is no change to the testing and energy efficiency standards for tier 1 since these standards are already harmonized with those in the U.S. CFR. The new requirements (for tier 2) apply to large heat pumps manufactured on or after January 1, 2026.

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

A single package central heat pump is prescribed as an energy-using product in the Regulations. Single package central heat pump means an air-source heat pump, with rated capacity of less than 19 kW (65 000 Btu/h). It includes ducted and space-constrained single package heat pumps. Three-phase single package central heat pumps require a three-phase power supply. These heat pumps are typically used in small commercial and institutional buildings.

The Amendment revises the definition of single package central heat pump to harmonize with the U.S., requiring the product to have a cooling capacity of less than 19 kW (65 000 Btu/h). For three-phase products, the Amendment incorporates the new U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard) and adopts new energy efficiency metrics to harmonize with the new U.S. levels for three-phase products. The Amendment makes the following adjustments to the U.S. requirements, to ensure that single package central heat pumps available in Canada are rated with efficiencies that represent operation in Canada’s colder climate: (i) requires additional testing and information under cold climate conditions; and (ii) requires that energy performance information be provided for Climate Region V (instead of Climate Region IV as in the United States). The new energy efficiency and testing standards requirements apply to three-phase single package central heat pumps manufactured on or after January 1, 2026. However, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II.

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

A split system central heat pump is prescribed as an energy-using product in the Regulations. Split system central heat pump means an air-source heat pump, with rated capacity of less than 19 kW (65 000 Btu/h). It includes ducted, ductless, space-constrained and small-duct high-velocity split system heat pumps. Three-phase split system central heat pumps require a three-phase power supply. These heat pumps are typically used in small commercial and institutional buildings.

The Amendment revises the definition of split system central heat pump to harmonize with the U.S. definition, requiring the product to have a cooling capacity of less than 19 kW (65 000 Btu/h). For three-phase products, the Amendment incorporates the new U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard), adopts new energy efficiency metrics and strengthens the energy efficiency standards to harmonize with the new U.S. levels for three-phase products. The Amendment makes the following adjustments to the U.S. requirements, to ensure that split system central heat pumps available in Canada are rated with efficiencies that represent operation in Canada’s colder climate: (i) requires additional testing and information under cold climate conditions; and (ii) requires that energy performance information be provided for Climate Region V (instead of Climate Region IV as in the United States). The new energy efficiency and testing standards requirements apply to three-phase split system central heat pumps manufactured on or after January 1, 2026. However, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II.

Gas furnaces (Division 4, Subdivision A)

A gas furnace is prescribed as an energy-using product in the Regulations. The definition of gas furnace does not include a furnace for a park model trailer or a recreational vehicle. A through-the-wall gas furnace means one that is designed and marketed to be installed in an opening in an exterior wall that is fitted with a weatherized sleeve. The Amendment only applies to through-the-wall gas furnaces.

The Amendment adds a definition for space-constrained to replace the definition for through-the-wall, and to harmonize with the definitions of space-constrained air conditioners and heat pumps in the Regulations. The Amendment repeals the fan energy rating (FER) requirement that is applicable to through-the-wall (now space-constrained) furnaces with a cooling component manufactured on or after January 1, 2024, to address the technical challenges associated with this requirement. The Amendment also requests new information on the type of blower fan motors to allow NRCan to monitor the technology used. The new requirements apply to gas furnaces manufactured on or after January 1, 2024. For this product, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II.

Electric water heaters (Division 6, Subdivision A)

An electric water heater is prescribed as an energy-using product in the Regulations. Electric water heater means a stationary electric storage tank water heater that is intended for use on pressurized water systems and that has a nominal storage tank volume of at least 50 L (13.21 US gallons). Household electric water heaters have an input rate of less than 12 kW (40 982 Btu/h). The Amendment applies to household electric water heaters.

The Amendment incorporates the current U.S. testing standard (excluding its requirement for a high temperature test for electric water heaters), as amended from time to time, as the only testing option (removing the CSA standard), and updates energy efficiency standards by keeping only one energy efficiency metric (the Uniform Energy Factor) and strengthening the efficiency levels. These changes apply only to electric water heaters with a nominal volume between 76 L to 454 L (20 and 120 US gallons). The requirements for electric water heaters with a nominal volume between 50 L to 76 L (13.2 and 20 US gallons) remain unchanged.

The energy efficiency standards are changed so that electric water heaters having a nominal volume between 76 L and 208 L (20 and 55 US gallons), inclusively, adopt current U.S. standards. However, U.S. energy efficiency standards are set to change once the U.S. Final Rule for consumer water heaters takes effect on May 6, 2029.

The energy efficiency standards in the Regulations for larger electric water heaters >208 L but ≤454 L, or >55 US gallons but ≤120 US gallons) will become more stringent but will allow for the continued use of electric resistance storage water heaters in the Canadian market. In contrast, the United States will require heat pump technology in their consumer electric water heaters with a nominal volume from >76 L to 454 L (20 to 120 US gallons) starting on May 6, 2029, except for electric water heaters greater than 284 L (75 US gallons) that are able to connect to the electric grid to enable demand-side management.

The new Canadian requirements apply to household electric water heaters manufactured on or after May 6, 2029. Regulated parties may choose to voluntarily comply with the new requirements starting one year before the official compliance date, specifically for household electric water heaters manufactured on or after May 6, 2028.

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

A gas-fired storage water heater is prescribed as an energy-using product in the Regulations. Gas-fired storage water heater means a stationary gas-heated water container that uses propane or natural gas for fuel and has a nominal storage tank volume of at least 76 L (20 US gallons). Household gas-fired storage water heaters have an input rate of less than or equal to 21.97 kW (75 000 Btu/h). This Amendment applies to household gas-fired storage water heaters.

The Amendment incorporates the current U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard) and updates energy efficiency standards by keeping only one energy efficiency metric, without changing the efficiency levels. The new requirements apply to household gas-fired water storage heaters manufactured on or after May 6, 2029.

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

An oil-fired water heater is prescribed as an energy-using product in the Regulations. Oil-fired water heater uses oil for fuel and has a nominal storage tank volume of at least 76 L (20 US gallons). Household oil-fired water heaters have an input rate of less than or equal to 30.5 kW (105 000 Btu/h). This Amendment applies to household oil-fired water heaters.

The Amendment incorporates the current U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard) and updates energy efficiency standards by keeping only one energy efficiency metric, without changing the efficiency levels. The new requirements apply to household oil-fired water heaters manufactured on or after May 6, 2029.

Gas-fired instantaneous water heaters (Division 6, Subdivision D)

A gas-fired instantaneous water heater is prescribed as an energy-using product in the Regulations. Gas-fired instantaneous water heater means a flow-activated water heater that uses natural gas or propane for fuel and has a nominal storage tank volume that is less than or equal to 38 L (10 US gallons) and an input rate to nominal volume ratio of not less than 309 W/L (4 000 Btu/h/US gallon). Household gas-fired instantaneous water heaters have an input rate of less than 58.56 kW (200 000 Btu/h), have a nominal volume of no greater than 7.6 L (2 US gallons) and are designed to provide hot water at a temperature no greater than 82°C (180°F). This Amendment applies to household gas-fired instantaneous water heaters.

The Amendment incorporates the current U.S. testing standard, as amended from time to time, as the only testing option (removing the CSA standard). The new requirements apply to household gas-fired instantaneous water heaters manufactured on or after May 6, 2029.

General service lamps (Division 7, Subdivision B)

A general service lamp is prescribed as an energy-using product in the Regulations. Currently, general service lamps mean an electrical device that provides functional illumination and has a luminous flux of at least 310 lumens but not more than 2 600 lumens, a nominal voltage of at least 110 V but not more than 130 V or a nominal voltage range that lies at least partially between those voltages and a screw base. General service lamps are typically used in the residential sector. Currently, general service lamps are only incandescent lamps.

The Amendment expands the scope of general service lamps to harmonize with the current U.S. scope by consolidating existing regulatory categories of general service lamps, modified spectrum incandescent lamps, compact fluorescent lamps and general service incandescent reflector lamps, as well as including other currently unregulated lamps that are covered under the U.S. definition of general service lamps. The Amendment incorporates the current U.S. testing standards, as amended from time to time, as the only testing option (removing others including CSA, IES “Illuminating Engineering Society of North America,” CIE “International Commission on Illumination”), and strengthens the energy efficiency standards by incorporating an NRCan technical standards document, as amended from time to time, that reproduces the current U.S. energy efficiency standards. The Amendment also updates labelling requirements to account for new lamp technologies under the expanded general service lamps scope. The new energy efficiency and testing requirements apply to general service incandescent lamps (which include the existing general service lamps and modified spectrum incandescent lamps) and general service incandescent reflector lamps manufactured on or after January 1, 2026, and to other newly regulated general service lamps, including compact fluorescent lamps, manufactured on or after January 1, 2027. However, regulated parties may choose to voluntarily comply with the new requirements starting on the day Amendment 18 is published in the Canada Gazette, Part II. The new label requirements apply to general service lamps (those currently regulated and newly regulated) manufactured on or after January 1, 2027. The new labelling requirements are not harmonized with those in the United States. In past consultations, Canadian stakeholders highlighted the desire to use the most accurate and most easily understandable terms to better serve Canadian consumers. Most notably, the new labelling format is not mandatory, allowing manufacturers to choose their preferred method of meeting the information requirements. However, stakeholders are encouraged to take advantage of the free graphic files that NRCan has prepared that meet the Regulation’s information requirements in both French and English (Lamp Labelling Design Options).

(c) Updating the list of energy-using products to ensure the Minister can exercise the Ministerial Regulations authority to maintain harmonization of requirements with another jurisdiction

The Amendment adds the following five products to the list of existing energy-using products specified for which energy efficiency standards, testing standards, and prescribed information could be amended through Ministerial Regulations in future regulatory processes (under section 11.1 of the Regulations) for the purposes of maintaining the harmonization of requirements:

Air compressors
Faucets
Line voltage thermostats
Pool pumps
Showerheads

Considerations

Ambulatory incorporation by reference

The use of ambulatory incorporation by reference to U.S. standards or to NRCan technical standards documents reproducing U.S. standards throughout this Amendment ensures that harmonization is maintained without disruption, even when the United States updates their requirements. Ambulatory incorporation by reference provides certainty to industry, reduces trade impacts and the need for double testing, and minimizes barriers and costs for regulated parties to serve both markets.

Ambulatory incorporation by reference points to bilingual documents where possible, however, unilingual standards are incorporated when there are no available standards in French through the CSA or other international standard development organizations, and when documents are very technical in nature and are aimed at regulated parties and testing bodies that conduct energy efficiency measurements.

Transitional provisions — voluntary early compliance

The Amendment includes clauses allowing regulated parties to voluntary comply with new requirements for specific products before their respective coming into force date. Such clauses will help expedite products into the Canadian market that meet the new requirements and harmonize with the practices of the United States. More information on the products that are covered by such clauses and the length of the period allowed for each product is provided later in this document under the section “Implementation, compliance and enforcement, and service standards.”

Regulatory development

Consultation

Pre-consultation summary

Stakeholders, including regulated parties, consumers and other interested parties were informed of the changes to the Regulations that were considered with this Amendment and were provided opportunities to comment at several points since June 2022. The regulatory proposal evolved based on consultations, and the content of the Amendment was modified based on stakeholder input. Information related to the Regulations (i.e. the forward regulatory plan, technical bulletins, and webinars) were distributed to stakeholders via targeted emails to over 6 000 stakeholders. In turn, many of these individuals and organizations forwarded this information, providing access to a large audience of stakeholders. Also, various meetings were held with the main manufacturers’ associations impacted by the Amendment, to further inform them about the content of the Amendment and to discuss their concerns. NRCan also met with other partners to discuss the Amendment, including provincial, territorial, national and international departments, agencies and committees.

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

April 2022: NRCan updated its Forward Regulatory Plan to indicate its intention to move forward with Amendments 18, which was reiterated in subsequent updates.
June—July 2022: 13 technical bulletins for specific products were released and nine webinars for specific products were held with affected stakeholders to collect stakeholder views on the requirements that were considered.
August 2022: NRCan presented to the Canadian Plumbing Association Conference the changes that were proposed for water heaters, pool pumps, showerheads and faucets.
May 2023: NRCan met with the Canadian Institute of Plumbing and Heating (CIPH) to discuss the changes that were proposed for water heaters and met with National Research Council Canada to discuss the differences between compliance with the federal Regulations and the National Building Codes for faucets and showerheads.
June 2023: NRCan met with the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) to address concerns related to the technical requirements for through-the-wall gas furnaces.
July 2023: NRCan met with Health Canada to discuss the potential health risk associated with the increased residence time in piping systems from showerheads.
August 2023: NRCan presented to the Canadian Plumbing Association Conference the changes proposed for water heaters, pool pumps, showerheads and faucets. Verbal comments echoed concerns outlined in written comments by CIPH about the potential for confusion between regulations and codes should efficiency requirements for showerheads and faucets be adopted. Concerns were also noted about increased residence time of water in piping systems with low-flow fixtures.
September 2023: NRCan met with the California Energy Commission to discuss the potential implications associated with the increased residence time of water in piping systems.
November 2023: NRCan presented at the Standing Committee on Heating, Ventilation, and Air Conditioning (HVAC) and Plumbing Discussion meeting organized by Codes Canada, to inform stakeholders on the proposed Amendment details, specifically for faucets and showerheads.
May 2024: NRCan met with the International Association of Plumbing and Mechanical Officials (IAPMO) to understand trends and the intersection of energy efficiency, water sustainability and water safety. Discussions centred on flow rates of faucets and showerheads and plumbing system pipe sizing as it relates to household hot water heating.
August 2024: NRCan provided a regulatory update to the Canadian Advisory Council on Plumbing. The presentation focused on Amendment 18 and the next potential Governor in Council amendment (Amendment 19).

NRCan also maintains the following ongoing activities that provide additional opportunities to inform and gather feedback from all stakeholders:

The Energy Efficiency Regulations web page of the NRCan website where stakeholders can find up-to-date information about energy efficiency standards for products that are regulated in Canada.
Ongoing bilateral discussions where NRCan is in close contact with the industry through major industry associations to discuss proposed regulatory changes.
Ongoing monthly discussions with provinces and territories to discuss federal and provincial energy efficiency regulations.

Canada Gazette, Part I, consultation

The Amendment was prepublished in the Canada Gazette, Part I, on June 22, 2024, followed by a 70-day comment period. The technical standards documents that are incorporated by reference in the Regulations through Amendment 18, were made available online at the same time and were subject to the same 70-day comment period. During the 70-day comment period that ended on August 31, 2024, NRCan received comments from 19 unique organizations for a total of 42 comments, including 12 from industry associations, 27 from manufacturers, 2 from an energy efficiency advocate, and one from a retailer. Comments that were submitted and approved for publication can be found within the Canada Gazette, Part I proposal: Canada Gazette, Part I, Volume 158, Number 25: Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18), and the technical standards documents can be found on the web page “Amendment 18.”

Following the closure of the official comment period, NRCan met with Efficiency Canada, HRAI, the Air-Conditioning, Heating and Refrigeration Institute (AHRI), CIPH, and the associations’ members to gather more details about the comments they had submitted during the official comment period for water heaters.

Overall, the comments were generally supportive of the continued efforts to harmonize with U.S. regulations, with some expressing concerns about specific product requirements, including requests for additional time to comply with the new requirements, changes to labelling, and clarification of the definitions and scope of certain products. There were no specific comments regarding the technical standards documents.

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

Nevertheless, some comments received during the consultation were either too general to be directly related to the Amendment, addressed aspects of energy efficiency for products not covered by this Amendment, or focused on topics outside the Regulations’ authority. Where relevant, these comments will be considered during the implementation or future updates of energy efficiency programs, leveraging the best available tools to influence Canada’s energy efficiency landscape, including the Regulations and other complementary measures.

Faucets and showerheads

Issue: Labelling of replacement aerators

Comment: A manufacturer recommended that NRCan permit the labelling of replacement aerators by a verification mark on the exterior of the product packaging.
Response: NRCan will allow verification marks to be placed on the product packaging, rather than on the product itself, to ensure that consumers can easily read the replacement aerator flow rates.

Issue: Potential health risk

Comment: The CIPH raised concerns that reduced flow rates could prolong the time water remains in pipes, increase hot water delivery times and create an environment favourable to the proliferation of plumbing pathogens. The International Association of Plumbing and Mechanical Officials (IAPMO) also noted that reducing flow rates for healthcare and long-term care facilities is not recommended as per the 2020 U.S. National Academy of Sciences, Engineering and Medicine report, entitled Management of Legionella in Water Systems.
Response: NRCan has met with Codes Canada, Health Canada, with the California Energy Commission and with IAPMO to better understand the implications of the new requirements.

Longer residence time of water and increased hot water delivery times can be common by-products of lower-flow fixtures. However, the risk to human health is multi-faceted. The issue of plumbing pathogens is understood within the larger context of the water system that includes piping size and length, storage temperature and design, occupant behaviour, risk profile, and building type, among others. Understanding this, it is significant that the Canadian Plumbing Code provisions do not explicitly disallow low-flow fixtures due to pathogenic risk. Instead, the plumbing code relies on performance objectives and best practices to manage hot-water temperatures and distribution.

Water conserving fixtures compliant with California’s stringent regulations are already widely available across Canada. These products have a significant market share in North America and are promoted as energy-saving solutions without warnings of significant health risks. Their widespread adoption and availability highlight that low-flow fixtures, when paired with proper system design and maintenance, can effectively balance water and energy conservation with occupant health and safety. The majority of Canadians already use efficient faucets and showerheads, with approximately 66% and 62% of the market already meeting the new energy efficiency standards.

There has been no widespread rollback of low-flow fixture policies of which NRCan is aware. Based on NRCan’s consultations, this issue is being addressed by evolving codes and guidelines that balance conservation goals with occupant health through better system design, recirculation, and routine maintenance practices. Where problems like Legionella outbreaks have occurred, they usually result in stricter guidelines on water temperatures and system design/maintenance (including the addition of recirculation loops, flushing protocols, or building-level water management programs), rather than abandoning low-flow fixtures altogether.

NRCan is proceeding with the standards for these products, as published in the Canada Gazette, Part I. Additionally, in light of the aspect of human health and low-flow fixtures, NRCan has clarified the definitions of faucets and showerheads to exclude products designed and marketed exclusively for healthcare and long-term care facilities from scope.

Issue: Timing for the application of requirements

Comment: The CIPH requested that the new requirements for faucets and showerheads come into force at least 24 months after the date of publication in the Canada Gazette, Part II, to allow a reasonable time for industry adoption.
Response: As there is a significant portion of products in the marketplace that already meet the new requirements, the development of new products may not be necessary. Much of the industry is also accustomed to meeting California’s reporting and labelling requirements. Thus, NRCan has maintained the implementation date for the new requirements to products manufactured on or after July 1, 2026, as it provides 12 to 15 months for supply chain adjustments.

Issue: Conflict with the National Plumbing Code of Canada

Comment: CIPH raised concerns about a potential conflict of application with the National Plumbing Code of Canada, as the commenter believed that the new regulatory requirements could be both duplicative and contradictory.
Response: With these amendments, all faucets and showerheads imported into the country or shipped between provinces for sale or lease will be subject to and be required to comply with the Regulations, which will meet or exceed provincial code requirements.

Codes are adopted and adapted by provinces at different times that can create a patchwork of different requirements across the country. Federal Regulations create consistency for the market by requiring that all faucets and showerheads, imported or shipped inter-provincially for the purpose of sale or lease meet prescribed energy efficiency standards. Furthermore, NRCan will work with code organizations and provinces to either incorporate the Regulations by reference or to harmonize with federal standards to reduce the compliance burden for code officials while improving overall code compliance rates. Regulations will also ensure that Canadians installing faucets and showerheads in retrofit situations not subject to codes will achieve equivalent energy and water savings. As faucets and showerheads that meet the requirements of the Regulations will meet or exceed all code requirements, it is NRCan’s assessment that no duplication or contradiction will occur between the codes and the regulatory requirements. Therefore, NRCan has not made any changes based on this comment.

Issue: Questionable benefits

Comment: CIPH questioned whether there would be any benefits from regulating faucets or showerheads, particularly with regard to hot water, citing the delay in hot water reaching the products.
Response: The commenter noted that with reduced flow rates, a user may turn on a shower or tap and let it run until hot water arrives. If this process takes a bit longer due to lower flow rates, the end user may get distracted and do something else, thereby wasting water and energy and negating any benefits. However, this depends on the fixture’s distance from the water heater, the time from last use as the pipes and water cool, and whether a mechanism for recirculation is in place. User distraction will not occur with every water draw. No data was provided to confirm the extent of this issue. NRCan’s analysis determined that reducing hot water usage and the demand for water heating will provide significant benefits to Canada by lowering energy consumption, reducing energy costs, and decreasing GHG emissions. Cumulatively, approximately 686 petajoules of energy will be saved from 2026 to 2050, compared to an estimated 131 petajoules if NRCan had opted only for harmonization with National Plumbing Code 2020 levels. Therefore, NRCan has not made any changes based on this comment.

Issue: User satisfaction

Comment: A manufacturer raised concern that user satisfaction may be negatively impacted if users choose to install water-conserving replacement aerators (e.g. pressure-compensating aerators). Replacement low-flow aerators may be poorly matched to a faucet’s design and negatively impact water pressure and overall performance. The concern is that this may lead to user dissatisfaction due to changes to water volume or pressure from the faucet. IAPMO noted that pressure-compensating flow aerators are becoming more common in faucets, as these devices maintain a given flow rate regardless of incoming water pressure.
Response: Based on the results of NRCan’s analysis of the market and a review of more stringent water efficiency standards that have been in place for up to 10 years in other North American jurisdictions (including California and other states, such that approximately 20% of the U.S. population is subject to these standards), aerator suppliers and manufacturers and water conservation programs have taken significant steps to ensure consumer satisfaction.

As highlighted by IAPMO, pressure-regulating valves are available in the market. As low-flow fixtures grow in frequency, so has the utility of pressure-compensating valves. These valves adjust the water flow to ensure a consistent stream regardless of variations in household water pressure. This technology helps maintain adequate water pressure, ensuring that low-flow fixtures perform effectively even in homes with lower water pressure.

Water conservation programs encourage manufacturers of aerators to create low-flow products where consumer satisfaction is tested and verified. For example, products with the WaterSense certification meet specific U.S. Environmental Protection Agency requirements for water flow rates and performance, ensuring that they use at least 20% less water than standard models without sacrificing performance. This certification helps consumers identify fixtures that provide water savings while maintaining high performance.

In alignment with other jurisdictions and to ensure user satisfaction, a faucet specifically excludes pot fillers to minimize the time needed to fill cooking pots with water. Kitchen faucets may also have a higher optional temporary flow rate to ensure pots and sinks can be filled quickly without significant effect on user satisfaction.

Considering the wide availability and variety of low-flow faucets and replacement aerators in the marketplace, developed specifically to mitigate a poor user experience, and the number of jurisdictions with equivalent regulations already in place, NRCan’s assessment is that negative effects on the user experience would be the exception rather than the rule, and so has not made any changes.

Line voltage thermostats

Issue: Verification capacity and timing for the application of requirements

Comment: Two manufacturers mentioned that there is only one public laboratory available in Canada to perform CSA C828-19 certification tests (i.e. Hydro-Québec), although some manufacturers have laboratories of their own capable of performing the energy efficiency testing. Two manufacturers have also requested to allow for two more years to meet the new requirements for built-in thermostats.
Response: NRCan confirmed that certification bodies generally outsource the testing of line voltage thermostats to Hydro-Québec, acknowledging that this will limit the ability of industry to conduct the necessary testing of existing and new products. In response to the concerns raised, NRCan has extended the implementation dates, to non-built-in products manufactured on or after July 1, 2026, and to built-in products manufactured on or after July 1, 2027.

Issue: Questionable benefits

Comment: A manufacturer noted a lack of evidence that certifying line voltage thermostats (LVTs) to the testing standard CSA C828 directly correlates with increased energy efficiency given that the standard primarily measures a thermostat’s ability to maintain a consistent room temperature rather than its capacity to reduce energy consumption. The stakeholder also noted that most energy savings from digital thermostats are achieved through programmable setpoint setbacks that reduce heating or cooling in unoccupied rooms, a feature that is not directly addressed by the CSA C828 standard.
Response: The market analysis conducted for this product shows that electronic LVTs designed to the CAN/CSA C828-19’s standard do meet the energy efficiency performance requirements, whereas mechanical LVTs do not. It was estimated that adopting electronic (rather than mechanical) thermostats will result in an annual energy savings of 246 kWh/mechanical LVT, a 10% savings from the annual energy use of 2 459 kWh per mechanical LVT. Therefore, NRCan has maintained the scope for this product as published in the Canada Gazette, Part I.

Issue: Market impact

Comment: There were concerns expressed by two manufacturers that the new requirements would eliminate mechanical (bimetal) thermostats from the market, as manufacturers would not be able to meet the performance requirements.
Response: In the market study that was conducted for LVTs, it was estimated that the new requirements would primarily impact mechanical thermostats. Despite this, it was determined that the new requirements would have an overall net benefit impact for line voltage thermostats. This is consistent with the intent of the Regulations to remove the lowest-performing products — the mechanical thermostats — from the marketplace, as more efficient technologies are available.

Issue: Development costs

Comment: Product development costs were mentioned by one manufacturer as an issue of concern, especially for products with integrated thermostats.
Response: In the market study that was conducted for LVTs, it was acknowledged that manufacturers of certain LVTs will carry costs associated with design changes in order to meet regulatory requirements. It was ultimately determined that there would be a net benefit impact for Canadians from the Amendment. To provide manufacturers with more time to adjust to the new requirements, NRCan has extended the implementation dates, to non-built-in products manufactured on or after July 1, 2026, and to built-in products manufactured on or after July 1, 2027.

Pool pumps

Issue: Timing for the application of requirements

Comment: One manufacturer and the Pool & Hot Tub Council of Canada requested that NRCan use a period of manufacture of six months to one year after the date the Regulations are published in the Canada Gazette, Part II. This request was made to give manufacturers sufficient time to ensure their products comply with the testing and verification requirements needed for the Regulations.
Response: NRCan has extended the implementation date to apply to pool pumps manufactured on or after January 1, 2026.

Issue: Definition adjustments to harmonize with the U.S. DOE

Comment: One manufacturer and the Pool & Hot Tub Council of Canada requested an exclusion for a certain type of commercial pool pump, which is exempted by the U.S. DOE regulations, through an enforcement policy statement. Also, the manufacturer recommended that Canada adopt various subcategory definitions of pool pumps used by the United States for their dedicated purposed pool pump regulations.
Response: NRCan confirmed with the U.S. DOE the intent to exclude a certain type of commercial pool pumps. To maintain consistency and harmonization between Canada and the United States, NRCan has excluded commercial pool pumps having the same specifications as the U.S. dedicated purpose pool pump enforcement policy statement issued on April 1, 2021.

The wording of the definition of pool pump in the Regulations, as proposed in the Canada Gazette, Part I, already provides details on the covered subcategory of pumps. Although the Canadian definition of pool pump is not identical to that used in the U.S. regulations, overall, the definitions are harmonized; therefore, NRCan did not make any additional changes to the product definition.

Issue: Reporting of products with only prescriptive requirements

Comment: A manufacturer and the Pool & Hot Tub Council of Canada requested that certain types of pool pumps having only prescriptive requirements and not performance (testing) requirements be exempt from verification and reporting requirements.
Response: Regulated energy-using products imported into Canada or shipped between provinces and territories must be labelled with an energy efficiency verification mark from a certification body accredited by the Standards Council of Canada. This mark signifies that the product has been verified to meet Canada’s energy efficiency standards and that its energy performance information is accurate, whether the requirements are based on testing or are prescriptive. Similarly, prescribed information, including energy efficiency, should be submitted to NRCan for energy-using products. NRCan verifies this information to make sure that products meet their prescribed energy efficiency standards. For these reasons, NRCan has not made any changes based on this comment.

Issue: Questionable benefits

Comment: One retailer recommended that variable speed pool pumps not be regulated due to the short swimming pool season caused by weather, the infrequency of homeowners using their pump at the lowest efficiency setting, and the higher cost of variable speed pumps.
Response: The cost-benefit analysis that was conducted for this Amendment concluded that, based on Canadian usage patterns and factors such as season length and frequency of use, implementing the new requirements for this product would result in a net benefit to Canadians. Therefore, NRCan has not made any changes based on this comment.

Issue: Non-compliance

Comment: A manufacturer noted concern with the enforcement of the Regulations, stating that it is vital, for fair competition, to have a strong enforcement program that protects responsible manufacturers, who are diligently following the rules, from manufacturers and exporters who willingly or unknowingly fail to comply with the Regulations.
Response: As part of its regulatory responsibilities, NRCan monitors compliance, undertakes enforcement activities and works towards preventing non-compliance. To determine whether dealers are complying with the requirements of the Act and the Regulations, NRCan relies on five main monitoring mechanisms:
- Self-monitoring by dealers and third-party verification: Dealers must verify the energy efficiency of a product, ensuring compliance with energy efficiency requirements and proper verification marks for all products imported or shipped between provinces. Regulated products are required to bear an energy efficiency verification mark from a Standards Council of Canada (SCC) accredited certification body.
- Report verification: Dealers are required to submit product-specific energy efficiency information to NRCan before importing or interprovincial shipment. As well, the Canada Border Services Agency collects relevant data from customs release requests, enabling NRCan to identify non-compliant products. Compliant products are listed on NRCan’s Searchable product list.
- Compliance testing program: Dealers must provide product samples to NRCan for testing upon request to ensure adherence to energy efficiency standards.
- Surveillance: NRCan works with other agencies to monitor compliance with labelling requirements.
- Tips and complaints: NRCan follows up on tips and complaints from the public, including retailers and consumers. Feedback is informed by sources such as EnerGuide labels, product websites, and energy efficiency verification results published by SCC-accredited certification bodies.
Stakeholders who are aware of non-compliant products being imported into Canada or shipped between provinces for sale or lease can contact NRCan via this email address: complianceops-opsconformite@nrcan-rncan.gc.ca.

Large air conditioners and large heat pumps

Issue: Timing for the application of requirements

Comment: AHRI, CIPH, HRAI, Efficiency Canada, as well as three manufacturers supported Canada fully harmonizing with U.S. energy efficiency and testing standards. However, AHRI, CIPH, HRAI and one of the manufacturers recommended the compliance date, based on the period of manufacture, only apply to products manufactured after publication in the Canada Gazette, Part II. The concern was that products already legally sold into Canada would become illegal (if transported across provincial or national borders) and stranded if NRCan was to adopt a compliance date that would be before the publication in the Canada Gazette, Part II.
Response: It should be noted that a product that is already legally sold in Canada prior to the implementation of the new requirements may continue to be sold in the province that it is in following the implementation of the Amendment (provided its sale is not restricted by provincial regulations). Nevertheless, to facilitate a systematic transition, NRCan has extended the implementation date to apply to large air conditioners and large heat pumps manufactured on or after January 1, 2026.

Central air conditioners and central heat pumps

Issue: Timing for the application of requirements

Comment: AHRI, CIPH and HRAI supported Canada fully harmonizing with U.S. energy efficiency and testing standards, but recommended the compliance date, based on the period of manufacture, only apply to products manufactured after publication in the Canada Gazette, Part II. The concern was that products already legally sold into Canada would become illegal (if transported across provincial or national borders) and stranded if NRCan was to adopt a compliance date that would be before the publication in the Canada Gazette, Part II. It was also noted that NRCan should allow early compliance.
Response: It should be noted that a product that is already legally sold in Canada prior to the implementation of the new requirements may continue to be sold in the province that it is in following the implementation of the Amendment (provided its sale is not restricted by provincial regulations). Nevertheless, to facilitate a systematic transition, NRCan has extended the implementation date to apply to central air conditioners and central heat pumps manufactured on or after January 1, 2026. The regulatory text published in the Canada Gazette, Part I, and included in the final regulation already included clauses for early compliance for central air conditioners and central heat pumps.

Issue: Harmonization of definitions of central heat pumps

Comment: AHRI noted that the definitions of split system central heat pump and single package central heat pump required that either the cooling or heating capacity be under 19 kW (65 000 Btu/h). The commenter asked whether either condition is sufficient to meet the definition and pointed out that U.S. regulations require that only the rated cooling capacity be considered.
Response: The definitions of split system central heat pump and single package central heat pump included models with a cooling or heating capacity below 19 kW (65 000 Btu/h). This means that if the heating capacity exceeded 19 kW while the cooling capacity remained below 19 kW, the product would still meet these definitions. To reduce confusion and to harmonize with the U.S. DOE’s definition for residential and small commercial heat pumps, the definitions for both split system central heat pump and single package central heat pump have been modified such that only the rated cooling capacity be under 19 kW. Consequently, NRCan has removed “or heating” from the definitions.

Issue: Implications of harmonization on refrigerant phase-down

Comment: Efficiency Canada commented that NRCan should require that split system central conditioners and heat pumps with the same cooling capacity (Btu/hr) have the same minimum SEER2 requirements.
Response: For the same nominal cooling capacity, heat pumps generally have a slightly higher performance in cooling mode (SEER2) than air conditioners because they use a more efficient method of transferring heat. Because the heat pump also needs to perform effectively and efficiently in heating mode, heat pumps are more expensive than air conditioners. Having higher requirements for air conditioners would increase costs and make cooling less affordable. In addition, as the intent is to harmonize with the United States, NRCan has not made any changes based on this comment.

Water heaters (all)

Issue: Timeline for the application of requirements

Comment: AHRI, CIPH, HRAI, as well as individual manufacturers, identified several concerns associated with the proposed timeline for the application of the new requirements, including
- Harmonization with the United States: The U.S. DOE does not require effective volume representations for their new energy efficiency standards until May 6, 2029. Furthermore, the U.S. DOE allows models distributed before July 13, 2015, to comply with old metrics until May 6, 2029. The proposed Amendment would not harmonize with the U.S. compliance date and would disallow older models, creating a discrepancy with the U.S. market.
- Periods of manufacture and compliance dates: The proposed periods of manufacture should begin only after the final publication and enforcement of the new requirements to prevent retroactive application and minimize the risk of stranding products. Additionally, the interval between the final publication and the start of the periods of manufacture should provide sufficient time for essential engineering design adjustments and retooling. It is also important to consider that manufacturers’ teams might be too small to handle the scale of changes required effectively.
Response: NRCan has postponed the periods of manufacture to May 6, 2029, for all household water heaters subject to this Amendment. Therefore, the new requirements will only become mandatory on May 6, 2029.

Issue: Energy efficiency standards

Comment: Efficiency Canada commented that NRCan should adopt a minimum energy efficiency of 100%, i.e. through the use of heat pumps, for household water heating before 2030.
Response: NRCan continuously monitors and analyzes the Canadian water heating market to identify opportunities for achieving benefits for Canadians. In light of information and comments received from other stakeholders, requirements on household water heaters subject to this Amendment will only apply to products manufactured on or after May 6, 2029. While the technology is available, 100% energy efficiency for household water heaters (i.e. heat pump technology for water heaters in the majority of cases) by 2030, is not yet economically feasible. Maintaining affordable and equitable access to energy-efficient equipment remains a priority.
- The goal of 100% energy efficiency for household water heaters using heat pumps also presents some technical challenges in the Canadian context, specifically because Canada has colder groundwater temperatures and higher setpoints than the United States. A higher temperature setpoint of the heated water decreases the efficiency of a heat pump water heater by increasing the workload on the compressor and heat losses from the storage tank. Additionally, a lower supply water temperature leads to longer runtimes and potentially increased reliance on less efficient backup heating.
- NRCan will continue to monitor and reevaluate the marketplace to assess whether more stringent energy efficiency standards are both technologically and economically feasible.

Electric water heaters

Issue: High temperature test

Comment: AHRI, HRAI, CIPH, as well as individual manufacturers, recommended that the high temperature test of the U.S. DOE test procedure (Appendix E to Subpart B of Part 430) be excluded from the testing requirement as it would effectively require all electric storage water heaters destined for Canada to be subject to additional testing that would result in a Uniform Energy Factor that differs from that in the United States.
Response: As the intent is to facilitate the distribution of water heating products throughout North America without different or supplemental testing for Canada, NRCan has excluded the high temperature test from the testing procedure incorporated by reference in the Regulations.

Issue: Energy efficiency standards

Comment: AHRI, HRAI, CIPH, as well as individual manufacturers, suggested that NRCan change energy efficiency standards and the period of manufacture as noted in below volume subclasses. The commenters also suggested that NRCan allow for early certification to the new energy efficiency standards using the amended test procedure during the interim period between when the standard is adopted by NRCan and when compliance is required. They also expressed concerns about the effectiveness of increasing insulation thickness to meet the proposed energy efficiency standards, as well as the potential impact that thicker insulation could have for consumers and tradespeople. These concerns vary according to the volume range and are summarized below:
Models with rated volumes from 50 L to 76 L (13.2 to 20 US gallons):
- The energy efficiency standards should be harmonized with the U.S. DOE’s future standards and compliance date of May 6, 2029.
- Space constraints arising from the more stringent proposed requirements, which would necessitate thicker insulation.
- Uncertainty regarding whether increasing the insulation of these models will be sufficient to meet the proposed energy efficiency standards.
Models with rated volumes from 76 L to 208 L (20 to 55 US gallons):
- Changes should be delayed until May 6, 2029.
- The cost of increasing the insulation to meet the proposed energy efficiency standards while maintaining consumer satisfaction. Increasing insulation may reduce tank volume if overall dimensions are maintained. Or, if tank volume is maintained, overall dimensions will increase leading possibly to increased costs in the distribution chain.
- The impact on specific product subclasses designed for niche use cases in mind.
Models with rated volumes from 208 L to 454 L (55 to 120 US gallons):
- Set alternative UEF-based energy efficiency standards either achievable with existing electric resistance models or just below the current U.S. DOE standards.
- The cost of increasing the insulation to meet the proposed energy efficiency standards while maintaining consumer satisfaction. Increasing insulation may reduce tank volume if overall dimensions are maintained. Or, if tank volume is maintained, overall dimensions will increase leading possibly to increased costs in the distribution chain.
- Uncertainty about whether increasing the insulation of these models will be effective enough to meet the proposed energy efficiency standards.
Models with rated volumes greater than 454 L (120 US gallons):
- The energy efficiency standards should be harmonized with the U.S. DOE’s future standards and compliance date of May 6, 2029.
- The cost of increasing the insulation to meet the proposed energy efficiency standards while maintaining consumer satisfaction. Increasing insulation may reduce tank volume if overall dimensions are maintained. Or, if tank volume is maintained, overall dimensions will increase leading possibly to increased costs in the distribution chain.
- Uncertainty about whether increasing the insulation of these models will be effective enough to meet the proposed energy efficiency standards.
Response: To simplify, the responses have been organized by volume range:
- Models with rated volumes from 50 L to 76 L (13.2 to 20 US gallons):
  - NRCan has decided to maintain the existing energy efficiency requirements for these models and not proceed with the more stringent requirements proposed in the Canada Gazette, Part I. NRCan intends to re-examine these standards to select energy efficiency performance requirements that will complete the transition to the Uniform Energy Factor efficiency metric for electric resistance water heaters and will balance the concerns of space-constrained installations.
- Models with rated volumes from 76 L to 208 L (20 to 55 US gallons):
  - NRCan has decided to implement the energy efficiency requirements proposed in the Canada Gazette, Part I, but to delay the period of manufacture to begin on May 6, 2029. Canada will adopt the current U.S. standards on May 6, 2029, the very day the United States moves on from them. A transitional provision allowing for voluntary early compliance will start May 6, 2028, for models manufactured on or after that date.
  - Regarding concerns about the effectiveness of increasing insulation thickness to meet the energy efficiency standards, as well as the potential impact that thicker insulation could have for consumers and tradespeople, NRCan understands this to mean that higher energy efficiency standards will require thicker insulation. This will require costs for redesign, as the distance between the structural internal water tank and the exterior sheet-metal cladding will increase to accommodate more insulation. Three options for redesign include (1) maintaining exterior dimensions and reducing the size of the internal tank; (2) maintaining the size of the internal water tank, and increasing the thickness of insulation, thereby increasing the size of the external dimensions; or (3) an optimized approach of a slightly smaller internal tank with slightly larger external dimensions that does not adversely affect consumer use nor significantly affect the supply chain and tradespeople in terms of shipping, handling and installation.
    - For (1), there will be additional costs for insulation, but reduced material costs for the internal tank and reduced weight, making tanks less costly to ship and easier to install. If water volume is decreased significantly, consumer satisfaction may be affected.
    - For (2), the interior volume of water will be maintained, but the exterior volume will increase. This option will not affect consumer use but may have implications for shipping and installation, as larger tanks are heavier, take up more space and may be more difficult to install in confined spaces like in closets or under the stairs.
    - NRCan anticipates that manufacturers will land on (3), producing an optimized design with slightly smaller internal tanks and slightly larger external dimensions. NRCan believes that a loss in overall tank volume will not adversely affect consumers, as the 60°C (140°F) factory setpoint of electric storage tanks in Canada provides for a larger effective volume of hot water, considering that mixing valves are used to deliver hot water at a safer 49°C (120°F) to limit the risk of scalding. Shipping and handling challenges and costs of a tank with slightly larger exterior dimensions may be offset by reduced weight. This approach will mitigate concerns over consumer and installer satisfaction while also meeting energy efficiency standards.
  - NRCan also believes that the knowledge and experience of designing and manufacturing more efficient electric resistance water heaters having a rated volume range between 76 L to 208 L (20 to 55 US gallons) in the United States can be leveraged to help deliver affordable, efficient, and effective models to the market.
- Models with rated volumes from 208 L to 454 L (55 to 120 US gallons) and models greater than 454 L (120 US gallons):
  - NRCan has decided to implement the energy efficiency requirements proposed in the Canada Gazette, Part I, but to delay the period of manufacture to begin on May 6, 2029. The rationale is identical to that outlined above for models with rated volumes of 76 L to 208 L (20 to 55 US gallons). A transitional provision will allow for voluntary early compliance starting May 6, 2028, for models manufactured on or after that date.
Comment: Efficiency Canada suggested that the proposed energy efficiency standards should be more stringent and harmonized with the U.S. DOE’s recent rulemaking, specifically the phasing out of certain classes of electric resistance water heaters in favour of electric heat pump water heaters.
Response: With the next amendment to the Regulations (Amendment 19), NRCan is considering introducing heat pump water heaters as a new energy-using product in the Regulations, including energy efficiency and testing standards, to harmonize with the United States. For more information, see the “Pre-consultations for Next Amendments” web page. Such changes would allow the collection of data on the use of heat pump water heaters in Canada, which will inform future policy decisions.

Gas-fired storage water heaters

Issue: Energy efficiency standards

Comment: AHRI, HRAI, and CIPH jointly recommended that NRCan maintains the current energy efficiency standards for gas-fired water heaters, up until the new U.S. standards take effect on May 6, 2029. From that date, these commenters, as well as individual manufacturers, stated their desire for NRCan to harmonize with the U.S. DOE’s latest energy-efficiency standards and volume categories by splitting the range ≥ 76 L (20 US gallons) and ≤ 380 L (100 US gallons) into these two separate ranges: ≥ 76 L (20 gallons) and ≤ 208.2 L (55 US gallons); and >208.2 L (55 gallons) and ≤ 380 L (100 US gallons).
- Conversely, Efficiency Canada suggested that NRCan should adopt energy efficiency standards that are more stringent than those proposed in the Canada Gazette, Part I. Efficiency Canada also noted that the availability of ENERGY STAR^® qualified gas-fired storage water heaters makes it both feasible and advisable to harmonize the Regulations’ requirements with the ENERGY STAR^® program.
Response: With respect to timelines, NRCan has postponed the periods of manufacture to start May 6, 2029, for all household gas-fired storage water heaters subject to this Amendment, to provide accommodation during this period of regulatory change in both the U.S. and in Canada.
- With respect to adopting more stringent energy efficiency standards and different volume categories aligned with the U.S. DOE, substantial changes affecting household gas-fired water heaters have been scoped out of this Amendment because additional analysis is needed. NRCan is currently evaluating the feasibility and likely impacts of harmonizing the Regulations for gas-fired storage water heaters with the new U.S. DOE’s standards set to take effect on May 6, 2029.

Oil-fired water heaters

Issue: Energy efficiency standards

Comment: Efficiency Canada suggested that NRCan should use the Regulations to phase-out oil-fired water heating across Canada’s household water heater market by a specific date before 2030. They remarked that “fuel oil is Canada’s highest emitting and most expensive water heating [energy] source.” They also commented that the proposed energy efficiency standards were not compatible with Canada’s 2030 Emissions Reduction Plan.
Response: The Amendment introduces the Uniform Energy Factor, which is a key metric for transitioning from emissions-intensive water heating technologies to electrified, low-emissions alternatives. It provides a standardized way to compare energy efficiency, encouraging consumers to adopt high-efficiency options like heat pump water heaters and transition away from fossil fuels like oil-fired water heating. The Uniform Energy Factor drives market innovation, supports performance-based incentives, and fosters regulatory measures, aiding Canada’s 2030 emissions targets. It also simplifies consumer decision-making and promotes sustainable solutions. High-Uniform Energy Factor systems optimize energy consumption, reducing fossil fuel reliance. Overall, the Uniform Energy Factor accelerates electrification, reduces greenhouse gas emissions, and facilitates the shift to efficient, sustainable water heating technologies.

Gas-fired instantaneous water heaters

Issue: Definitions

Comment: A manufacturer stated that the Regulations’ definition of gas-fired instantaneous water heaters should be revised to harmonize with the U.S. DOE. Specifically, the manufacturer believes having “flow-activated” in the definition of gas-fired instantaneous water heaters is superfluous and problematic for delineating gas-fired instantaneous water heaters from other types of water heaters and water heating equipment.
Response: The United States published an energy efficiency standard Final Rule in spring 2024 for instantaneous water heaters after Amendment 18’s policy development, analysis and pre-consultations (initiated in 2022) were concluded. Future analysis is planned, to assess the impact of this U.S. Final Rule on the Canadian market to inform a decision on harmonization. This planned work aims to ensure that any updates to the Regulations benefit Canadians.

Issue: Energy efficiency standards

Comment: Efficiency Canada suggested that NRCan should use the Regulations to limit the amount of unburned methane that is allowed to be emitted by gas-fired instantaneous water heaters.
Response: The Act does not grant the authority to regulate the emission of methane from water heaters.

General Service Lamps

Issue: Timing for the application of requirements

Comment: Electro Federation Canada and the National Electrical Manufacturers Association (NEMA) communicated concerns about the lack of synchronization between NRCan and the U.S. DOE timelines in that the U.S. DOE had not finalized certification (reporting) requirements for general service lamps and Canada proposed reporting requirements in the Canada Gazette, Part I.
Response: The U.S. DOE has since issued a Final Rule that requires certification of all lamps, starting 210 days from the date of the rulemaking’s publication in the Federal Register (October 9, 2024) such that certification requirements will begin on May 7, 2025, in the United States.
- As the U.S. is proceeding with lamp certification requirements, NRCan will proceed with its information and reporting requirements but will provide additional time to comply.
- NRCan has delayed the implementation dates for labelling, energy efficiency and testing standards, and information requirements for all lamps within the new scope for general service lamps. All general service incandescent lamps and general service incandescent reflector lamps will be regulated for products manufactured as of January 1, 2026. General service lamps other than general service incandescent lamps or general service incandescent reflector lamps (in other words, light-emitting diode lamps, organic light emitting diode lamps and compact fluorescent lamps) will have their period of manufacture date pushed back until January 1, 2027. However, regulated parties may choose to voluntarily comply with the new standards starting on the day Amendment 18 is published in the Canada Gazette, Part II.

Issue: Labelling requirement to harmonize with the U.S. DOE

Comment: The industry associations Electro Federation Canada and NEMA have requested full harmonization with the U.S. DOE for new labelling requirements pertaining to general service lamps.
Response: NRCan has delayed the implementation of labelling for general service lamps other than general service incandescent lamps or general service incandescent reflector lamps (generally meaning light emitting diode and organic light emitting diode lamps, and compact fluorescent lamps) until January 1, 2027. Harmonizing labelling requirements with those in the United States is not being considered, based on the requirements for French and English labelling and consultations which highlighted the need to focus on information relevant to the Canadian context. Furthermore, the new label requirements are flexible and allow the manufacturer to use a format and design of its choosing. Finally, NRCan is offering for the use of manufacturers a professionally developed label design for unregulated light emitting diode and organic light emitting diode lamps. While this label format is not mandatory, it does provide manufacturers wishing to use it with a consistent label format that ensures that manufacturers meet the information requirements prescribed by the Regulations (see LED and OLED Lamp Labelling Design Options).

Issue: Life testing and laboratory certification requirements

Comment: Electro Federation Canada and the NEMA have indicated a concern with proposed extended life testing requirements as well as laboratory certification requirements.
Response: NRCan has removed these additional requirements, to more closely harmonize with the U.S. DOE regulations.

Modern treaty obligations and Indigenous engagement and consultation

Crown Indigenous Relations and Northern Affairs Canada, Indigenous Services Canada, and NRCan’s Indigenous engagement sector (Nòkwewashk) were consulted on the assessments of the various obligations. A consultation framework was developed when amending the Regulations to ensure that Indigenous communities were as informed and engaged as they desire to be, in the interest of respecting the priorities of communities and organizations.

The Amendment did not trigger the Crown’s duty to consult under section 35 of the Constitution Act, 1982, as it is technical in nature and will not have an impact on any existing Indigenous or treaty rights of Indigenous peoples of Canada recognized and affirmed.

The Amendment has no modern treaty implications given that it does not have an impact on Indigenous land and resource management rights described in a modern treaty, does not include employment of federal officials or procurement activities in a geographic area subject to a modern treaty, and does not include any funding or resources.

The outreach activities and offer to engage that occurred over the regulatory process are summarized below. These ensure that the rights of Indigenous partners were respected, and that any impacts of the Amendment on their communities were identified and discussed. NRCan remains ready to respond to questions and provide additional information upon request.

Indigenous engagement

NRCan has undertaken efforts to understand how the Regulations impact Indigenous peoples, communities and other partners. Since fall 2022, NRCan has participated in events such as the Inuit Clean Energy workshop (hosted by Inuit Tapiriit Kanatami) and the Assembly of First Nations Asset Management Conference. In summer 2024, NRCan presented on the Regulations and Amendment 18 in bilateral meetings with the Assembly of First Nations, the Métis National Council, and Inuit Tapiriit Kanatami. Each bilateral meeting was facilitated by Nòkwewashk and was preceded by an email sharing information developed for each of the three National Indigenous Organizations (NIOs). Information was provided on the Regulations and Amendment 18 as well as an invitation to comment on the Amendment and the Regulations via formal and/or informal channels. NRCan did not receive specific feedback from any of the NIOs via email or in the bilateral meetings; however, communication channels remain open for future conversations.

The Department will also continue to explore potential impacts of the Regulations on Indigenous households through analyses that apply the gender-based analysis plus, as further explained later in this document (see the “Gender-based analysis plus” section).

Instrument choice

Maintaining the baseline scenario (no action)

Given Canada’s commitment to reach net zero by 2050 and the fact that, in 2021, Canada’s building sector accounted for more than 17% of national emissions and the industrial sector used the most energy (more than 41%), maintaining the status quo would not contribute to incremental reductions towards the achievement of the net zero goal. Maintaining the status quo would also lead to missed opportunities to reduce energy consumption, leaving households with higher energy costs for cooling and heating their homes. Also, the status quo option would not deliver on the federal government’s commitment to foster harmonization of federal regulations where feasible and appropriate and would generate new compliance costs associated with unprevented unnecessary regulatory differences between Canada and the United States.

Developing voluntary mechanisms

Under a voluntary approach, the existing requirements found in the Regulations would be repealed, and voluntary agreements would be negotiated with dealers to follow specified energy efficiency and testing standards on a voluntary basis. Under a voluntary mechanism, energy efficiency gains would not be guaranteed, and Canada would lose energy savings from stricter standards than the United States for both existing and new regulated products. Voluntary compliance would have no enforcement authority and it would be difficult to verify energy efficiency achievements, given the variety of products and models on the market. This would undermine the intent of the Energy Efficiency Act, and Canada’s broader strategy to advance energy efficiency, which aligns with practices adopted by many other countries. Furthermore, voluntary mechanisms would still need to address Canada’s colder climate to ensure products perform effectively. Finally, without mandatory reporting, NRCan could not publish verified energy performance data, limiting informed decisions for consumers, businesses, utilities, governments, and researchers.

Regulatory actions (the Amendment)

Taking regulatory actions will provide confidence that energy use will be reduced, leading to greater GHG emission reductions compared with either the status quo or voluntary mechanisms. The Amendment will prevent or reduce various unnecessary regulatory differences, in particular, the testing and energy efficiency standards for various products including central air conditioners, central heat pumps, portable air conditioners, general service lamps, water heaters, large air conditioners, large heat pumps, and room air conditioners between Canada and the United States, and thereby avoid unnecessary burden on industry. The Amendment will also enable harmonization to be maintained seamlessly and provide NRCan with the ability to adjust to changes quickly, when maintaining harmonization of products where there is already a policy to harmonize with the United States.

Regulatory analysis

Benefits and costs

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

Summary

The present value of net benefits of the Amendment is estimated to be approximately $50 billion on products shipped by 2050, with total benefits exceeding total costs by a ratio of more than 9:1. By 2050, the present value of benefits and costs from the Amendment is estimated to be approximately $55 billion and $5.6 billion, respectively. A summary description of the benefits and costs associated with the Amendment are presented in Table 1.

The results of the benefit and cost analysis are different from those published in the Canada Gazette, Part I. These differences mainly reflect the policy changes made to provide manufacturers more time to comply with the new requirements for line voltage thermostats, pool pumps, large air conditioners and large heat pumps, central air conditioners and central heat pumps, electric water heaters, gas-fired storage water heaters, oil-fired water heaters, gas-fired instantaneous water heaters, and general service lamps.

Table 1: Summary of benefits and costs associated with the Amendment
Costs (as applicable)	Monetized benefits	Quantified benefits	Unaccounted non-energy benefits and costs
Technology costs	Energy (electric, natural gas and oil) savings	Energy savings (petajoule)	Outside air quality, competitiveness, assist utilities in managing peak demand, job growth, home comfort, indoor air quality, minimizing depressurization in new construction, etc.
Installation and maintenance costs	Avoided damages because of GHG reductions	GHG emission reductions (MtCO₂e)	Avoided trade and compliance issues, provide alternative testing standards for some currently regulated products
Government administration	Technological benefits accounting for additional lifespan of more efficient general service lamps	Water saving (millions of litres)	Future costs and benefits associated with the ambulatory incorporation by reference of documents
Compliance costs associated with new testing and verification requirements
Administrative burden

Reduced energy consumption and lower GHG emissions will result in significant net benefits over the lifetime of affected product models when comparing the regulatory scenario (the Amendment) with the baseline scenario. The benefits vary for individual user depending on end-use sector, geographical location, and operational practices.

Annual reductions in energy consumption associated with the Amendment are estimated at approximately 25 petajoules in 2030, reaching 58 petajoules in 2050 and accumulating to 1 112 petajoules by 2050, as the sale of more efficient products steadily replaces the pre-Amendment stock. Canadian consumers will also realize economic benefits in the form of reduced energy costs due to the implementation of the Amendment. It is estimated that almost $33 billion in cumulative present value energy savings will be realized by 2050.

Annual reductions in GHG emissions (megatonnes of carbon dioxide equivalent [MtCO₂e]) resulting from the reduction in energy consumption are estimated to be 1.4 MtCO₂e in 2030, reaching 3.3 MtCO₂e in 2050 with a total accumulation over that period of 63 MtCO₂e by 2050. It is estimated that, by applying a social cost of carbon dioxide equivalent (CO₂e) to these reductions, the cumulative present value of economic benefits associated with GHG emission reductions will be approximately $21 billion by 2050. This is calculated as the value of avoided damages from GHG emission reductions, which benefit society in general, not only the consumers purchasing the more efficient products.

The cumulative present value of incremental technology costs (including installation and maintenance costs) associated with the Amendment is estimated to be almost $5.6 billion by 2050.

Finally, faucets and showerheads save energy through reduced water consumption. The expected water savings are estimated to be 3.3 billion m³ by 2050.

Consultations — cost-benefit analysis

Stakeholders were engaged on various occasions and in various ways on the development of the cost-benefit analysis. For instance, in 2022 and 2023, market studies for products covered by this Amendment were completed by third-party consultants who worked with manufacturers and industry associations. The studies provided the primary data used to conduct the cost-benefit analysis for products where updates to testing and/or energy efficiency standards were considered. In June 2022, nine product-specific webinars were held (on portable and room air conditioners, water heaters [electric, natural gas and oil], large air conditioners and large heat pumps, general service lamps, central air conditioners and central heat pumps, pool pumps, showerheads and faucets, air compressors, and line voltage thermostats) with affected stakeholders, which, among other things, provided information and links to the cost-benefit methodology and sought input on that methodology and potential impacts on stakeholders.

Methodology, assumptions, and data

NRCan analyzed the economic gains to be made through the new and more stringent energy efficiency standards and the impact on Canadian society within a cost-benefit analysis framework. The costs and benefits per product associated with the changes to the energy efficiency standards were obtained by comparing the following scenarios and assuming that incremental costs and benefits in Canada are fully the result of the Regulations, with no spillover effects from the other jurisdictions such as the United States, to provide an assessment of the full economic impacts of regulatory changes affecting Canadians:

The baseline scenario (i.e. no action)
The regulatory scenario (i.e. the Amendment)

The regulatory scenario is defined as the application of new or more stringent energy efficiency standards across products relative to markets defined by the market studies completed between 2020 and 2023. This involves newly introduced energy efficiency standards for air compressors, faucets, line voltage thermostats, pool pumps, showerheads, and portable air conditioners, and more stringent standards for large air conditioners, large heat pumps, electric water heaters and general service lamps.

The incremental compliance and administrative cost per products are based on the costs calculated using the Treasury Board of Canada Secretariat’s Regulatory Cost Calculator. Products subject to the Amendment are only included in the overall cost-benefit analysis if they are linked to incremental technology, installation, and maintenance costs, or to compliance and administrative cost-benefit calculations. No other benefits or costs are modelled by products.

Benchmarks

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

Methodology to estimate costs

It is assumed that incremental costs for more efficient technology, including product development and production, as well as for compliance and administration, are passed on to consumers or end users. This assumption simplifies the methodology since individual business decisions that affect retail product prices are unknown.

The analysis does not attempt to predict actual changes in product prices; instead it quantifies the economic impacts that can be directly attributable to the Amendment. There are many other factors that can increase or decrease the final retail price that a consumer sees for a given product model (e.g. transportation costs, labour costs, pricing strategies). The analysis does not account for these factors.

Incremental technology, installation, and maintenance costs

The incremental technology, installation and maintenance costs associated with the Amendment were determined as the difference between the cost of the inefficient product model, represented by the selected benchmark, and the cost of a modified version of that product model that would meet the updated energy efficiency standards. For each product, the technology cost of modifying the inefficient benchmark product model so that it meets the more stringent energy efficiency standards was estimated (e.g. the cost of adding extra insulation to a water heater or the cost of replacing an inefficient compressor in an air conditioner). These costs were then multiplied by the number of shipments of the product models in the baseline scenario that were estimated to have an energy performance that is worse than what is required by the energy efficiency standards. Results were combined across all affected products to arrive at the estimate of total incremental technology costs.

In the case of general service lighting, the life of more efficient lamps is longer than that of those that would be impacted by the standards. To account for this, NRCan applied a saving to account for this valued at the percentage of the lamp life left when the lower efficiency lamp fails.

Additional incremental costs related to installation and maintenance over the lifetime of the product are also evaluated, if applicable. These costs were found to apply to split system air conditioners, split system heat pumps, electric water heaters, large air conditioners, large heat pumps and pool pumps.

Compliance costs

Compliance costs captured in this analysis include the actions required to meet compliance, including incremental testing costs, verification, and labelling requirements.

Incremental testing costs

Incremental testing costs arise when new testing is required for manufacturers. However, testing costs for products that are already being tested with the same standard to enter the U.S. market, under voluntary programs or provincial requirements, will be incurred in both the baseline and regulatory scenarios, so are not considered incremental in the analysis.

Incremental testing costs are calculated by multiplying the cost related to testing a typical model with the number of models that are expected to be tested on (i) the year the requirements become mandatory; and (ii) the subsequent years models are introduced or improved, as relevant.

Incremental labelling costs

Incremental labelling costs arise when new labelling is required for manufacturers. However, labelling costs for products that are already being labelled with the same labelling requirements to enter the U.S. market will be incurred in both the baseline and regulatory scenarios, so are not considered incremental in the analysis.

Incremental labelling costs are calculated by multiplying the cost related to designing a new or modifying an existing label for a typical model with the number of models that are expected to be labelled on the year the new requirements become mandatory.

Incremental verification costs

Incremental verification costs arise when new certification and marking are required for manufacturers. However, verification costs for products that are already being certified and issued a label by provincial requirements will be incurred in both the baseline and regulatory scenarios, so are not considered incremental in the analysis. NRCan accepts provincial labels as verification marks if the provincial energy efficiency standards are equivalent to, or exceed, the federal standards.

The added costs of verification requirements are confidential business costs that vary based on business relationships. Third-party verification and marking vary by manufacturer and are based on a number of elements, such as the number of programs the manufacturer engages in with the certification body, e.g. safety certification, energy efficiency verification, as well as the number of products and models the manufacturer has. Nevertheless, in this analysis, verification costs are estimated to be less than 10% of the testing costs based on the limited information obtained by NRCan from an internal study conducted in 2019. This number is a conservative estimate based on a range of costs collected through interviews for various verification activities. Interviewees in this study include certification bodies and laboratories, regulatory bodies, program managers, and manufacturers relatively evenly distributed across regulated products.

Incremental verification costs are calculated by multiplying the cost related to verifying a typical model with the number of models that are expected to be verified on (i) the year the requirements become mandatory; and (ii) the subsequent years models are introduced or improved, as relevant.

Administrative and compliance costs to businesses and the Government

Other costs reported as being attributable to the Amendment include, as appropriate, administrative and compliance costs to businesses, as well as those incurred by the Government to implement the changes.

Administrative costs

The Amendment will increase administrative burden as regulated parties of the affected energy-using products will be required to learn about the new requirements of the Regulations (i.e. familiarization with the Amendment). In addition, regulated parties who ship or import energy-using products may also incur additional administrative burden, as they need to provide information respecting those products, including their energy efficiency, their shipment, and their importation, in prescribed form, manner, and time in accordance with subsection 5(1) of the Act (i.e. submitting energy efficiency and import reports). The administrative costs are discussed further later in the “One-for-one rule” section.

As a result of the Amendment coming into force, the Government will be required to increase its compliance, inspection, and enforcement efforts for the suite of energy-using products with changing requirements. This would equate to one additional full-time equivalent resource for NRCan.

Methodology to estimate benefits

Energy savings for each product with updated energy efficiency standards were estimated by calculating the energy used by the selected benchmark product model by simulating how it would normally be used in a year (e.g. number of operating hours). The result is compared to the energy used by the modified version of that product model that would meet the updated energy efficiency standards. The difference was multiplied by the number of shipments of the product models in the baseline scenario that were estimated to have an energy performance that is worse than what is required by the updated energy efficiency standards based on the number of years the product is expected to last, in order to arrive at the total energy savings. Results were summed across all affected products to estimate the total energy saved. Energy savings were monetized using the cost of energy per unit of energy saved (i.e. dollars per kilowatt-hour). The expected energy savings could be less, all other things being equal, if consumers were choosing to use their savings in a way that increases energy consumption. This phenomenon is known as the rebound effect, which is not accounted for in this analysis.^{footnote 5}

The reductions in GHG emissions were calculated by applying fuel-specific emission factors, consistent with those published by Environment and Climate Change Canada, to the resulting energy savings. To remain consistent with the U.S. methodology and produce more realistic GHG savings, the reductions attributable to diminished electricity consumption reported throughout this document were calculated by applying the emission factors associated with the marginal fuels used to generate the electricity that will be saved through implementation of the Amendment.^{footnote 6} 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 (see the “Sensitivity analysis” section). Total reductions in GHG emissions with the average emission factor are estimated to be approximately 65 MtCO₂e by 2050 (versus 42 MtCO₂e with the marginal emission factor).

GHG emissions were monetized and incorporated into the analysis using a social cost of carbon. 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 — because of reducing GHG emissions.

Assumptions

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

The analysis covers shipments impacted by the Amendment between 2025 and 2050. Shipments are assumed to not be impacted by voluntary early compliance.
The baseline scenario reflects Canadian market conditions in 2023 (i.e. the most recent data available at the time market studies for the products were conducted).
Benefits and costs are measured in real constant 2022 dollars.
A 2% real discount rate is applied to all benefits and costs with values discounted to 2024.^{footnote 7}
Canadian average energy prices are based on data from Environment and Climate Change Canada’s 2022 reference case emission projections.^{footnote 8}
The social cost of carbon used in this analysis is calculated by Environment and Climate Change Canada at $271/tonne of carbon dioxide equivalent in 2025 (in 2021 dollars), increasing each year with the expected growth in damages.^{footnote 9}
Costs incurred by manufacturers to produce more efficient technologies, and compliance and administration burden are assumed to be passed on to consumers.
Incremental costs associated with more efficient technology were estimated in 2023 and are assumed to be constant, despite evidence that such costs come down with time, owing to improvements in manufacturing processes and economies of scale as higher volumes of product models with new technology enter the market.^{footnote 10} This assumption could lead to overestimates of manufacturing costs; however, it provides a conservative assessment of overall net benefits.
No taxes are included in the analysis (product costs, installation costs, energy, etc.). This is because the taxes are considered transfer payments and thus are not a net cost to society.

Data collection and sources

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

Cost-benefit statement

Number of years: 26 (2025 to 2050)
Price year: 2022
Present value base year: 2024
Discount rate: 2%

Table 2: Benefits and costs per energy-using product in millions of dollars (note: estimates have been rounded)
Energy-using product subdivision	Product costs^{table 1 note a} ^{table 1 note b}	Product benefits^{table 1 note a} ^{table 1 note c}	Product net benefits^{table 1 note a}
Air compressors	$31	$34	$3
Faucets	$2	$16,288	$16,286
Line Voltage Thermostats	$34	$814	$780
Pool Pumps	$972	$9,366	$8,394
Showerheads	$2	$9,196	$9,194
Room air conditioners	$267	$651	$384
Large air conditioners	$787	$1,355	$568
Split system central air conditioners	$19	$23	$4
Portable Air Conditioners	$179	$372	$193
Large heat pumps	$40	$75	$35
Split system central heat pumps	$71	$311	$240
Electric water heaters	$2,795	$13,906	$11,111
Gas-fired storage water heaters	$0.2	$0.0	-$0.2
Oil-fired water heaters	$0.02	$0.0	-$0.02
GSLs	$393	$2,744	$2,350
Total of all products^{table 1 note d}	$5,594	$55,135	$49,541
Table 1 note(s) Table 1 note a Totals are presented in cumulative present value. Return to table 1 note a referrer Table 1 note b Product costs in this table include incremental costs for technology, installation, maintenance, and compliance, as applicable. The Amendment will add compliance testing costs for manufacturers through the new testing requirement for cold climate heat pumps, the new testing requirements for line voltage thermostats, and the new test requirements for water heaters for a Canadian-based manufacturer selling products only in Canadian provinces. Also, there will be incremental labelling costs for the new lamps added under the new general service lamp scope. Finally, all newly regulated products will add verification costs, including newly regulated lamps and compact fluorescent lamps (as the Amendment will introduce energy efficiency standards for compact fluorescent lamps), as well as water heaters for which existing models tested to the previous standard will require retesting. Return to table 1 note b referrer Table 1 note c For all products, benefits include energy savings and GHG emission reductions, with the exception of GSLs where benefits also include technological savings due to the longer life of efficient products. Return to table 1 note c referrer Table 1 note d Total of all products may not add up to the sum of estimates by product because estimates have been rounded. Return to table 1 note d referrer

Table 3: Monetized costs in millions of dollars (note: estimates have been rounded)
Impacted stakeholder	Description of cost	Annual total in 2025^{table 2 note d}	Annual total in 2030^{table 2 note d}	Annual total in 2040^{table 2 note d}	Annual total in 2050^{table 2 note d}	Cumulative total by 2050^{table 2 note e}	Average annualized total over the 2025–2050 period^{table 2 note f}
Consumers	Technology, installation and maintenance costs^{table 2 note a}	$3	$322	$314	$314	$5,556	$276
Industry	Administrative burden^{table 2 note a} ^{table 2 note b}	$0.2	$0.2	$0.2	$0.2	$3.5	$0.2
Industry	Compliance costs^{table 2 note a} ^{table 2 note b}	$1.6	$1.7	$1.7	$1.7	$37.8	$1.9
Government	Government costs^{table 2 note c}	$0.1	$0.1	$0.1	$0.1	$2.0	$0.1
All stakeholders	Total costs	$5	$324	$315	$316	$5,600	$278
Table 2 note(s) Table 2 note a Incremental costs are assumed to be passed on to consumers as higher prices. Return to table 2 note a referrer Table 2 note b The compliance costs and administrative burden reported in Table 3 were estimated applying a 2% discount rate, from 2025 to 2050, to determine the value in 2022 dollars discounted to 2024. This method was used to be consistent with the calculation of other costs and benefits presented in Tables 2 to 5. Administrative burden estimates produced for the one-for-one rule, discussed below in this RIAS, were calculated using the Treasury Board of Canada Secretariat’s Regulatory Cost Calculator. This tool used a 7% discount rate, over 10 years (2025–2034), to determine a value in 2012 dollars, discounted to 2012. Return to table 2 note b referrer Table 2 note c Incremental government costs are assumed at one full-time employee valued at $102,701 in 2025. Return to table 2 note c referrer Table 2 note d Annual totals for 2025 through 2050 are presented in present value in the respective year. Return to table 2 note d referrer Table 2 note e Cumulative totals by 2050 are presented in 2024 present value. Return to table 2 note e referrer Table 2 note f Average annualized over the period are presented in terms of annualized values as indicated in the Cabinet Directive on Regulation (CDR) [Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (UPDATED Jan 2025)] of the Treasury Board of Canada. Return to table 2 note f referrer

Table 4: Monetized benefits in millions of dollars (note: estimates have been rounded)
Impacted stakeholder	Description of benefits	Annual total in 2025^{table 3 note a}	Annual total in 2030^{table 3 note a}	Annual total in 2040^{table 3 note a}	Annual total in 2050^{table 3 note a}	Cumulative total by 2050^{table 3 note b}	Average annualized total over the 2025–2050 period^{table 3 note c}
Consumers	Pre-tax fuel (electric, natural gas and oil) savings	$3	$1,686	$1,886	$2,024	$32,958	$1,638
Consumers	Benefits from longer life General service lamps	$0	$60	$22	$0	$686	$34
Canadians	Avoided GHG damages	$2	$1,073	$1,231	$1,335	$21,490	$1,068
All stakeholders	Total benefits	$5	$2,818	$3,139	$3,360	$55,135	$2,740
Table 3 note(s) Table 3 note a Annual totals for 2025 through 2050 are presented in present value in the respective year. Return to table 3 note a referrer Table 3 note b Cumulative totals by 2050 are presented in 2024 present value. Return to table 3 note b referrer Table 3 note c Average annualized over the period are presented in terms of annualized values as indicated in the Cabinet Directive on Regulation (CDR) [Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (UPDATED Jan 2025)] of the Treasury Board of Canada. Return to table 3 note c referrer

Table 5: Summary of monetized costs and benefits in millions of dollars (note: estimates have been rounded)
Impacted stakeholder	Annual total in 2025^{table 4 note a}	Annual total in 2030^{table 4 note a}	Annual total in 2040^{table 4 note a}	Annual total in 2050^{table 4 note a}	Cumulative total by 2050^{table 4 note b}	Average annualized total over the 2025–2050 period^{table 4 note c}
Total costs	$5	$324	$315	$316	$5,600	$278
Total benefits^{table 4 note d}	$5	$2,818	$3,139	$3,360	$55,135	$2,740
Net impact	$0	$2,494	$2,824	$3,044	$49,536	$2,462
Table 4 note(s) Table 4 note a Annual totals for 2025 through 2050 are presented in present value in the respective year. Return to table 4 note a referrer Table 4 note b Cumulative totals by 2050 are presented in 2024 present value. Return to table 4 note b referrer Table 4 note c Average annualized over the period are presented in terms of annualized values as indicated in the Cabinet Directive on Regulation (CDR) [Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (UPDATED Jan 2025)] of the Treasury Board of Canada. Return to table 4 note c referrer Table 4 note d For all products, benefits include energy savings and GHG emission reductions, except for general service lamps where benefits also include technological savings due to the longer life of efficient products. Return to table 4 note d referrer

Table 6: Quantified non-$ impacts (note: estimates have been rounded)
Impacted stakeholder	Description of impact	Annual total in 2025	Annual total in 2030	Annual total in 2040	Annual total in 2050	Cumulative total by 2050	Average annualized total over the 2025–2050 period
Canadians	Energy savings (petajoules)	0.01	26	55	58	1112	43
	GHG emission reductions (megatonnes of carbon dioxide equivalent)	0	1.5	3.1	3.3	63	2.4
	Water savings (millions of cubic metres)	0	81	165	165	3324	133

Additional benefits and costs

For various regulated products, the Amendment will maintain, improve, and facilitate maintaining in the future regulatory harmonization between Canada and the United States. Nevertheless, the analysis has not quantified the resulting costs reduction associated with the industry not having to test the same product model twice to satisfy different requirements, since the baseline assumes that NRCan is delivering on its policy of harmonization previously stated. Furthermore, these only represent a small portion of the positive impacts associated with the regulatory harmonization according to the Organisation for Economic Co-operation and Development.^{footnote 11}

In this Amendment, the increasing use of incorporation by ambulatory reference to U.S. standards and NRCan bilingual technical standards documents that reproduce U.S. standards will allow NRCan to maintain harmonization. Furthermore, preparing for the use of Ministerial Regulations will allow NRCan to update requirements in a more time-efficient manner when needed to maintain harmonized requirements with another jurisdiction. This benefits trade and business by eliminating or reducing the period of time during which Canada’s Regulations are misaligned with another jurisdiction, notably the United States, and will allow more efficient use of government resources.

For businesses and institutions using affected energy-using products in their operations, an improvement in energy performance translates into energy and operating cost savings and improved environmental performance, which can lead to increased productivity and competitiveness, and, when such companies spend these energy savings on expanding their businesses or factories, they create greater demand. Although the Amendment will increase the energy efficiency standards of products primarily used in the residential sector, these products might be used elsewhere, such as in small commercial applications. Reduced electricity consumption from regulated products also benefits utilities by reducing peak loads and the need to add more generating, transmission and distribution capacity.^{footnote 12} Other widely accepted potential benefits of energy efficiency include increased energy security, reduced air pollution, improved occupant comfort, better indoor air quality and minimizing risks of depressurization in new constructions with better envelopes.^{footnote 13} Because of the lack of data or complexity involved, the cost-benefit analysis has not quantified these potential benefits.

Another benefit of the Amendment is related to the verified energy efficiency performance information of energy-using products that is collected by NRCan through its compliance program. Energy performance data for new energy-using products will be posted to the NRCan website^{footnote 14} and will be accessible to households or businesses to help them make informed purchase decisions. Utilities and retailers also benefit from this information since it supports programming to promote the sale of high-efficiency products. The collection and analysis of energy performance data also support future policy development and evidence-based decision-making.

Finally, the benefits associated with the removal of the fan energy rating (FER) requirement for through-the-wall gas furnaces, which represent a technological barrier to compliance, have not been quantified in this cost-benefit analysis.

In terms of costs, it is to note that future changes to documents that will be incorporated by reference may impose extra costs to regulated parties that have not been accounted for in this cost-benefit analysis. However, when documents incorporated on an ambulatory basis will be updated, although a regulatory amendment will not be required to process the change, NRCan will still perform a cost-benefit analysis and report the impacts of the incremental changes publicly.

Sensitivity analysis

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

GHG emission factor for electricity: the GHG emission factor for electricity used in the current analysis is NRCan’s marginal emission factor for electricity. However, the results may be sensitive to the emission factor used. To account for this uncertainty, the sensitivity analysis performs the analysis using NRCan’s average emission factor for electricity.
Discount rate: the current analysis uses a 2% social discount rate. However, the results may be sensitive to the discount rate used. To account for this uncertainty, the sensitivity analysis performs the analysis with an opportunity cost of capital of 7%, which is consistent with values recommended in the Treasury Board of Canada Secretariat Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals (PDF).
Social cost of carbon: the analysis uses Environment and Climate Change Canada’s estimates of the SCC. However, as results may be sensitive to the SCC values, to account for this uncertainty, the sensitivity analysis presents the results without the SCC.
Incremental costs: the methodology assumes that incremental costs of technology remain constant over time. Considering this assumption provides a conservative estimate of future cost changes, a sensitivity analysis is performed to account for a 10% reduction of the estimated incremental costs.
Energy price: the energy prices used in the current analysis are weighted Canadian averages from each province and territory by fuel types and sectors. However, the price paid by the consumer may differ depending on the region they live in. To account for this uncertainty, the sensitivity analysis tests the results with the lowest and highest regional prices. It is expected that remote communities’ (northern and off grid) prices are best represented by the highest energy price scenario.
Price of water: due to uncertainty in the price of water and lack of a price forecast, water was not monetized in the central cost-benefit analysis. A recent study prepared for NRCan estimates the average residential ratepayer costs of water and wastewater service in Canada to be $3.73 per cubic metre (in 2023 dollars), where it is assumed that all water that comes into the home eventually becomes wastewater. NRCan applied this cost to all water even though some jurisdictions do not directly charge users for water, as 11% of Canadians are not part of a water distribution system and 13.9% do not use the municipal sanitary sewer system.^{footnote 15}

Overall, the various sensitivity scenarios support estimates of positive net benefits for all products, with total cumulative net benefits by 2050 in the range of $21,359 million (7% discount rate) to $85,992 (high energy prices), in comparison to $49,536 million of net benefits under the reference case, as shown in Table 7 below.

Table 7: Summary of sensitivity analysis of benefits and costs per product in millions of dollars (note: estimates have been rounded)
Variable	Sensitivity case	Costs^{table 6 note a} ^{table 6 note b}	Benefits^{table 6 note a} ^{table 6 note c}	Net benefits^{table 6 note a} ^{table 6 note c}
Reference case (from Table 5)	N/A	$5,600	$55,135	$49,536
GHG emission factor	Average factor	$5,600	$47,876	$42,276
Discount rate	7%	$3,057	$24,417	$21,359
Social cost of carbon	None	$5,600	$33,645	$28,045
Energy price	High	$5,600	$91,592	$85,992
Energy price	Low	$5,600	$44,784	$39,184
Incremental costs	Low	$4,211	$55,135	$50,925
Price of water	Pumping and treatment	$5,600	$65,879	$60,279
Table 6 note(s) Table 6 note a Totals are presented in cumulative present value. Return to table 6 note a referrer Table 6 note b Costs include incremental costs for technology, installation, maintenance, compliance, administrative and government costs, as applicable. Return to table 6 note b referrer Table 6 note c For all products, total benefits and net benefits include energy savings and GHG emission reductions, except for general service lamps where benefits also include technological savings due to the longer life of efficient products. Return to table 6 note c referrer

Distributional impact analysis

The costs and benefits provided in the central cost-benefit analysis are not always distributed equally across the various impacted stakeholders. Therefore, a sectorial distributional analysis has been performed for each product covered by the cost-benefit analysis. This section also contains a consumer-level impact analysis, outlining the per-unit costs and benefits experienced by consumers by product and sector.

Cumulative benefits by product and sector are influenced by the number of shipments, the annual energy consumption, the fuel type saved and the energy price in the sector of use. Cumulative costs by product and sector are determined by the incremental costs and the number of shipments.

Most of the costs and benefits will occur to residential product users, with the largest costs and benefits incurred by those that use electric water heaters. Commercial product users will also see significant costs and benefits, with the largest costs and benefits incurred by users of large air conditioners. The industrial sector will be impacted, but not to nearly the same extent, primarily because air compressors are the only industrial products affected by the Amendment.

Table 8: Costs and benefits by energy-using product and sector, cumulative total by 2050, in millions of dollars (note: estimates have been rounded)
Energy-using product	Sector	Energy savings (petajoules)	GHG emission reductions (megatonnes of carbon dioxide equivalent)	Costs^{table 7 note a}	Energy benefits	GHG benefits	Total benefits^{table 7 note b}	Net benefits^{table 7 note b}
Pool pumps	Residential	138.3	8.3	$925	$5,629	$2,676	$8,304	$7,380
Pool pumps	Commercial	18.6	1.1	$47	$702	$360	$1,062	$1,014
Air compressors	Commercial	0.00	0.00	$4	$4	$2	$5	$1.4
Air compressors	Industrial	0.6	0.03	$27	$16	$12	$29	$1.6
Line voltage thermostats	Residential	12.7	0.8	$34	$552	$262	$814	$780
Portable air conditioners	Residential	5.2	0.3	$156	$218	$103	$321	$166
Portable air conditioners	Commercial	0.8	0.1	$23	$34	$17	$51	$28
Large air conditioners	Commercial	16.9	1.0	$787	$895	$460	$1,355	$568
Large heat pumps	Commercial	1.0	0.1	$40	$50	$26	$75	$35
Split system central air conditioners	Commercial	0.3	0.0	$19	$15	$8	$23	$4
Split system central heat pumps	Commercial	4.5	0.3	$71	$206	$106	$311	$240
General service lamps	Residential	12.6	0.9	$242	$1,060	$318	$1,798	$1,556
General service lamps	Commercial	4.2	0.3	$151	$517	$163	$946	$794
Showerheads	Residential	242.0	13.0	$2	$4,806	$4,342	$9,148	$9,145
Showerheads	Commercial	1.9	0.1	$0	$16	$32	$48	$48
Room air conditioners	Residential	9.1	0.5	$232	$386	$183	$569	$337
Room air conditioners	Commercial	1.4	0.1	$35	$54	$28	$82	$47
Faucets	Residential	400.8	21.6	$2	$7,996	$7,225	$15,221	$15,219
Faucets	Commercial	40.9	2.1	$0	$372	$694	$1,067	$1,067
Electric water heaters	Residential	200.3	12.1	$2,795	$9,432	$4,474	$13,906	$11,111
Gas-fired storage water heaters	Residential	0.00	0.00	$0.19	$0	$0	$0	-$0.19
Oil-fired water heaters	Residential	0.00	0.00	$0.03	$0	$0	$0	-$0.03
Total	Residential	1,018.0	57.4	$4,366	$30,386	$19,529	$49,916	$45,549
	Commercial	90.1	5.1	$1,178	$3,116	$1,888	$5,004	$3,826
	Industrial	0.6	0.0	$27	$16	$12	$29	$2
	Total	1,112.0	62.7	$5,594	$33,645	$21,490	$55,135	$49,541
Table 7 note(s) Table 7 note a Costs do not include administrative costs to industry and government costs. Return to table 7 note a referrer Table 7 note b For all products, total benefits and net benefits include energy savings and GHG emission reductions, except for general service lamps where benefits also include technological savings due to the longer life of efficient products. Additional general service lamps life adds a total benefit of $420 million in the residential sector and $266 million in the commercial sector. Return to table 7 note b referrer

Table 9 shows the average per-unit costs and benefits at the consumer level by product and sector. The end user is expected to benefit from energy savings of the product as shown in the table. However, since GHG emission reductions are expected to benefit society in general, the impact has not been included in the table. Although the costs carried by manufacturers and importers are expected to eventually be paid by the end user, they are excluded because the data and our cost-benefit analysis model does not allow for the split of these costs across various benchmarks, and it is unknown how the costs will be applied to each unit sold throughout the distribution chains.

While the central cost-benefit analysis shows that the benefits are greater than the costs for each product, there are two products (air compressors used in the industrial sector and split system central air conditioners) that show a net loss to the end users (i.e. they will not save enough money during the useful life of the product to offset the incremental costs to improve a product).

In the case of these two aforementioned products, society still stands to benefit from the changes once the social cost of carbon is included in the analysis. For these two products, the majority of shipments already meet the new energy efficiency standards. It is estimated that once air compressors are subject to Ontario’s new requirements, 93% of the Canadian market will meet NRCan’s new standard. For split system central air conditioners, which make up a relatively small percentage of the market for commercial cooling equipment, 87% of the market already met the new energy efficiency standard. Furthermore, the estimated price increases of these products are relatively small (10% or less of purchasing price), and the changes are harmonized with the United States to reduce trade impacts on the North American market. The results in the table below reflect the assumptions of the central cost-benefit analysis.

The cost estimates are conservative. As previously mentioned, historically, it has been observed that industry has found innovative ways to improve the efficiency of products in more cost-effective ways than expected.

Table 9: Average per-unit costs and benefits by energy-using product and sector
Energy-using product	Sector	Unit costs	Unit energy benefits	Unit net benefits^{table 8 note a}
Air compressors	Commercial	$3,497	$4,109	$612
Air compressors	Industrial	$3,497	$2,772	-$725
Faucets	Residential	$0	$275	$275
Faucets	Commercial	$0	$31	$31
Line voltage thermostats	Residential	$26	$450	$424
Pool pumps	Residential	$393	$2,430	$2,037
Pool pumps	Commercial	$427	$6,453	$6,026
Showerheads	Residential	$0	$292	$292
Showerheads	Commercial	$0	$145	$145
Room air conditioners	Residential	$61	$104	$42
Room air conditioners	Commercial	$61	$96	$34
Large air conditioners	Commercial	$2,964	$3,395	$432
Split system central air conditioners	Commercial	$437	$348	-$88
Portable air conditioners	Residential	$73	$103	$31
Portable air conditioners	Commercial	$73	$107	$34
Large heat pumps	Commercial	$3,218	$4,002	$784
Split system central heat pumps	Commercial	$396	$1,647	$1,251
Electric water heaters	Residential	$256	$872	$616
Gas-fired storage water heaters	Residential	$0	$0	$0
Oil-fired water heaters	Residential	$0	$0	$0
General service lamps	Residential	$4	$17	$20
General service lamps	Commercial	$4	$14	$18
Table 8 note(s) Table 8 note a For all products, net benefits include energy savings and GHG emission reductions, except for general service lamps where benefits also include technological savings due to the longer life of efficient products. Additional general service lamps life adds benefits per unit of $6.80 in the residential sector and $7.35 in the commercial sector. Return to table 8 note a referrer

Small business lens

Based on data from Statistics Canada and the Canadian Importers Database for the number of manufacturers and importers related to specific products, the Treasury Board Secretariat’s Regulatory Cost Calculator indicates that 1 098 small businesses may be impacted by the Amendment. Therefore, the Amendment will increase the administrative burden and compliance costs for small businesses, in annualized average, by a total of $583,744 or approximately $531 per small business. A summary of the estimated impacts on small businesses is presented in Table 10. Numbers in the table were calculated using the Treasury Board Secretariat’s Regulatory Cost Calculator.

The products covered by the Amendment are mostly manufactured outside of Canada by multinational companies. Only a few Canadian-based manufacturers have been identified by the market studies used for this Amendment to be producing some of the products, but they are generally not small businesses or are not subject to the federal Regulations as they do not import their products into Canada or ship them from one province to another for the purpose of sale or lease. Exceptions are for line voltage thermostats, for faucets, for showerheads, for general service lamps, and for water heaters that have manufacturers located in Canada and shipping products between provinces (in the case of water heaters, the Canadian-based manufacturer only sells its products in Canada).

Also, there are many small businesses that import energy-using products in the country, but the majority of the businesses that import some of the products included in the Amendment are not expected to be significantly impacted financially, given that it will still be possible for them to import products that meet or exceed the energy efficiency standards and Canadians will still look for them when needing to replace their products. This Amendment will ensure that more efficient products are imported and sold to Canadians and no flexibility for small businesses is planned.

Small business lens summary

Number of small businesses impacted: 1 098
Number of years: 26 (2025–2050)
Price year: 2022
Present value base year: 2024
Discount rate: 2%

Table 10: Total compliance and administrative costs to small businesses
Administrative and compliance costs	Annualized value	Present value
Compliance costs	$549,645	$11,059,419
Administrative costs	$34,100	$686,123
Total cost (all impacted small businesses)	$583,744	$11,745,542
Cost per impacted small business	$531	$10,697

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

One-for-one rule

Number of total businesses impacted: 3 116
Number of years: 10 (2025–2034)
Price year: 2012
Present value base year: 2012
Discount rate: 7%

Table 11: Administrative costs to all businesses
Totals	Annualized value	Annualized values per business
Familiarization with the Amendment	$8,360	$6
Submitting energy efficiency reports	$31,974	$82
Submitting import reports	$19,033	$11
Total administrative costs (all impacted businesses)	$59,367	$19

Overall, the Amendment is considered an “in” under the one-for-one rule. It will increase the administrative burden, in annualized average, by approximately $59,367 administrative costs to industry or $19 per business (all single businesses impacted). These numbers were calculated using the Treasury Board Secretariat’s Regulatory Cost Calculator, which presents annualized values discounted to 2012, using a 7% discount rate, over 10 years (2025–2034), in 2012 dollars. (To understand how these numbers compare to those presented in the cost-benefit analysis, see Note b in Table 3. For more details about the estimation, see the cost-benefit analysis report.)

No comments were received from stakeholders on the impacts of the Amendment on administrative burden.

Familiarization with the Amendment

Familiarization with new or updated requirements in the Regulations is a one-time incremental administrative function that will apply to regulated parties of all products subject to the Amendment. The task involves reviewing and understanding the new and updated regulatory requirements of the specific products. It is assumed that this task will be performed upon the publication of the Amendment. It will take approximately two hours to perform by someone specialized in middle management, with a wage rate of approximately $57 (in 2012 dollars) per hour.^{footnote 16} The total number regulated parties that will be impacted by this task is estimated at 1 330.

Overall, the incremental administrative familiarization costs to all businesses are estimated at $8,360 (in 2012 dollars) in annualized average over a 10-year period, 2025–2034, discounted to 2012.

Submitting energy efficiency reports

The Amendment will introduce an administrative burden associated with the provision of information that is required before an energy-using product is imported or shipped across provinces and territories. The added burden applies to products that have reporting elements that differ from reporting requirements already in place in other jurisdictions, based on the market for the specific products.

For all newly regulated products, including the newly regulated lamps under the new general service lamps scope, an energy efficiency report will be required for the first time, and was accounted as a one-time administrative function to create the report template. For line voltage thermostats and central heat pumps, ongoing administrative burden was accounted to submit new required information. For water heaters, additional data fields will be required under the new standards and Canadian-based manufacturers selling only in Canadian provinces will experience additional administrative burden for their products.

To estimate the time required to input the energy performance data into the report, NRCan relied on 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.^{footnote 17} To account for minor differences between the complexities of the data elements in Canada’s reports and those that were the subject of the U.S. DOE analysis, NRCan estimates that it will take 36 seconds (0.01 hours) per data element. These activities will be undertaken by administrative support with a wage rate of approximately $30 (in 2012 dollars) per hour. The total number of regulated parties that will be impacted by this task is estimated at 389.

Overall, the incremental energy efficiency reporting costs to all businesses are estimated at $31,974 (in 2012 dollars) in annualized average over a 10-year period, 2025–2034, discounted to 2012.

Submitting import reports

The Amendment will introduce an administrative burden associated with the submission of import reports to the Canada Border Services Agency (see Introduction to the Regulations), which include specific information regarding the products.

Ongoing added burden will apply to the five newly regulated products, as well as all the newly regulated general service lamps.

Based on annual shipment data, including the average number of shipment units per order, the average number of orders per year are estimated per importers. Therefore, it is assumed that this task will be performed once a month per importer for the newly regulated products, and 10 times per month for importers of the newly regulated general service lamps, from the day compliance with the new requirements will become mandatory.

Using the same reporting assumption as for the energy efficiency reports, it is assumed that the task will take approximately 36 seconds (0.01 hours) to perform by data element by someone in administrative and financial supervisors and administrative occupations, with a wage rate of approximately $37 (in 2012 dollars) per hour. The total number of regulated parties that will be impacted by this task is estimated at 1 786.

Overall, the incremental import reporting costs to all businesses are estimated at $19,033 (in 2012 dollars) in annualized average over a 10-year period, 2025–2034, discounted to 2012.

Regulatory cooperation and alignment

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

NRCan cooperates with provincial and territorial governments to position Canada as a global leader in efforts to improve the energy efficiency of equipment used in the building sector. Informal discussions through existing channels and formal processes under the Regulatory Reconciliation and Cooperation Table (RCT) of the Canadian Free Trade Agreement aim to reduce and eliminate, to the extent possible, barriers to trade within Canada. To date, there are six provinces and no territories regulating energy-using products. When provinces regulate a product, they typically harmonize with the federal Regulations and the United States, in line with an RCT framework to cooperate when developing or modifying energy efficiency standards or testing standards; and address regulatory differences to reduce significant obstacles, if any, to trade across provincial and territorial borders.^{footnote 18} Maintaining harmonization within Canada also supports harmonization between Canada and the United States. Each provincial jurisdiction does retain the authority to make progress on provincial energy efficiency objectives, in addition to federal action.
Amendments to the Regulations seek to foster harmonization of federal regulations where feasible and appropriate, primarily through the use of testing standards already applied by the United States, to be consistent with the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs Regarding the Canada-United States Regulatory Cooperation Council signed in June 2018. In 2021, NRCan and the U.S. DOE signed the Memorandum of Understanding Between the Department of Natural Resources of Canada and the Department of Energy of the United States of America Concerning Cooperation on Energy, which acknowledges that both countries will collaborate on new and updated energy efficiency and testing standards. In 2024, both countries have reaffirmed their commitment to continued collaboration.
The Canada-United States-Mexico Agreement (CUSMA) includes provisions in support of harmonization and regulatory practice requirements across North America. Annex 12-D of Chapter 12 of CUSMA states that each party shall consider adopting energy performance standards and test procedures adopted by another party. However, CUSMA does not mandate harmonization, recognizing that successful efforts at harmonization should not diminish consumer welfare, consumer protection and national energy efficiency objectives.

More specifically, NRCan is harmonizing testing standards with the United States for all products where testing standards are considered in this Amendment and are regulated by the United States. The only exception is for central heat pumps (three-phase) where the cold climate conditions test will be mandatory in the Canadian Regulations to better reflect winter operating conditions in Canada.

Energy efficiency standards will be harmonized with the United States for all products included in this Amendment, except when (i) products are not regulated by the U.S. DOE (e.g. line voltage thermostat will adopt the CSA’s standards which have already been referenced in British Columbia and Ontario); and (ii) the existing U.S. DOE standards have not been updated in a long time and harmonization would not provide significant energy savings to support the goal of net-zero emissions by 2050 (i.e. showerheads and non-metering faucets’ energy efficiency standards will be harmonized with those in the state of California).

The following table provides detailed impacts of the changes on harmonization with the United States and Provinces.

Table 12: Regulatory cooperation and harmonization in Canada and North America associated with the Amendment
Product	Regulatory cooperation within Canada	Regulatory cooperation in North America
Air compressors	The introduction of this product in the Regulations is harmonized with Ontario and will automatically apply to New Brunswick, which is incorporating by reference all the energy-using products and efficiency standards that are prescribed in the federal Regulation, without specifying the products. For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces could either add the product or not to their regulations, when developing or modifying standards, based on their respective policy objectives.	Adding this product in the Regulations will create harmonization with the United States in relation to the scope of products currently regulated. The Amendment will harmonize the energy efficiency and testing standards with the United States by incorporating by ambulatory reference the U.S. standards.
Faucets and showerheads	The introduction of these products in the Regulations will automatically apply to New Brunswick, which is incorporating by reference all the energy-using products and efficiency standards that are prescribed in the federal Regulation, without specifying the products. For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces could either add the product to their regulations or choose not to, when developing or modifying standards, based on their respective policy objectives.	Adding these products in the Regulations will create harmonization with the United States in relation to the scope of products currently regulated. The Amendment will harmonize the testing standards with the United States by incorporating by ambulatory reference the U.S. CFR. The implementation of the Amendment will introduce some regulatory differences given that NRCan will harmonize with the more stringent water efficiency standards of California (and not those of the U.S. DOE that have not been updated in years and would not achieve significant energy savings).
Line voltage thermostats	The introduction of this product in the Regulations is harmonized with Ontario, British Columbia, and Québec (although Quebec incorporates the earlier version CSA C828-13 for testing). The introduction of this product in the Regulations will automatically apply to New Brunswick, which is incorporating by reference all the energy-using products and efficiency standards that are prescribed in the federal Regulation, without specifying the products. To minimize impact on trade and burden on industry, NRCan will harmonize the testing standards with established provincial requirements (British Columbia, Ontario and Québec) by incorporating by ambulatory reference a CSA testing standard. For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces could either add the product to their regulations or choose not to, when developing or modifying standards, based on their respective policy objectives.	Adding this product in the Regulations will introduce some regulatory differences with the United States where the product is not regulated, mandating dealers importing into Canada or shipping inter-provincially for the purpose of sale or lease, to meet prescribed energy efficiency standards, testing standards, reporting and verification requirements. This burden already exists to some extent in Canada, as British Columbia, Ontario and Québec currently mandate that products offered for sale in the provinces must adhere to the new energy efficiency and testing standards outlined in this Amendment.
Pool pumps	The introduction of this product in the Regulations will harmonize with Ontario requirements and will automatically apply to New Brunswick, which is incorporating by reference all the energy-using products and efficiency standards that are prescribed in the federal Regulation, without specifying the products. For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces could either add the product to their regulations or choose not to, when developing or modifying standards, based on their respective policy objectives.	Adding this product in the Regulations will create harmonization with the United States in relation to the scope of products currently regulated. The Amendment will harmonize the energy efficiency and testing standards with the United States by incorporating by ambulatory reference the U.S. standards.
Room air conditioners	The changes to the energy efficiency standards in this Amendment will automatically apply to provinces that are incorporating by reference NRCan Regulations for all products (New Brunswick) and for this specific product (Ontario, Nova Scotia and Quebec). For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will maintain harmonization of the energy efficiency and testing standards with the United States by incorporating an NRCan technical standards document by ambulatory reference that will reproduce the U.S. testing standard as the only testing option, and the U.S. energy efficiency standards without changing the energy efficiency standards which are already harmonized with the United States.
Large air conditioners and large heat pumps	The changes to the energy efficiency standards in this Amendment will automatically apply to provinces that are incorporating by reference NRCan Regulations for all products (New Brunswick) and for this specific product (Ontario, Nova Scotia and Quebec). For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will maintain harmonization of energy efficiency and testing standards with the United States, given that the U.S. DOE moved to Tier 2 of their two-tiered plan on January 1, 2023. The Amendment will also incorporate by ambulatory reference the U.S. testing standard as an alternative testing option.
Central air conditioners and central heat pumps (three-phase)	The changes to the energy efficiency standards in this Amendment will automatically apply to provinces that are incorporating by reference NRCan Regulations for all products (New Brunswick) and for this specific product (Ontario, Nova Scotia and Quebec). For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will maintain harmonization of energy efficiency and testing standards with the United States except for making the 15^oC (5^oF) test point mandatory (instead of optional in the United States) to better reflect operating conditions in Canada, and for using Climate Region V (instead of Climate Region IV used in the United States). The Amendment will incorporate by ambulatory reference the U.S. testing standard as the only testing option.
Portable air conditioners	The introduction of energy efficiency standards in this Amendment will automatically apply to New Brunswick which is incorporating by reference NRCan Regulations for all products. For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will harmonize with the new energy efficiency standards and generally harmonize with the current EnergyGuide labelling requirements of the United States.
Gas furnaces	The removal of the fan energy rating (FER) requirement in this Amendment will automatically apply to New Brunswick, Nova Scotia and Ontario which are incorporating by reference NRCan Regulations for all products (in the case of New Brunswick) and for specific products, including this one (in the case of Ontario and Nova Scotia). The other regulating provinces do not have this requirement, and therefore the removal of the FER will harmonize with the other provinces.	The removal of the fan energy rating (FER) will harmonize with the United States which has also removed this requirement. The Amendment will introduce some regulatory differences in relation to the information requested.
Water heaters (electric, gas-fired storage, gas-fired instantaneous, and oil-fired)	The changes to the energy efficiency standards in this Amendment will automatically apply to provinces that are incorporating by reference NRCan Regulations for all products (New Brunswick), for specific products, including these ones (Ontario and Nova Scotia for all of these, except for instantaneous for Nova Scotia), and for oil-fired water heaters (Québec). For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will increase harmonization with the United States by incorporating by ambulatory reference the U.S. testing standard as the only testing option across different types of household water heaters.
General service lamps	The changes to the scope and energy efficiency standards in this Amendment are generally harmonized with Ontario, British Columbia, and Québec and they will automatically apply to New Brunswick and Nova Scotia given that New Brunswick is incorporating by reference NRCan Regulations for all products and Nova Scotia is incorporating NRCan Regulations for specific products, including some general service lamps (compact fluorescent lamps and incandescent reflector lamps). Ontario, Québec and British Columbia have already moved ahead of NRCan with general service lamps regulation, which includes the 45 lumen per watt energy efficiency standard, but under a smaller scope than the U.S. DOE and this Amendment. However, BC also regulates a "small diameter directional lamp," which is not under the scope of the U.S. DOE (and this Amendment). For the other regulating provinces, it is expected that based on the RCT cooperative framework in development, provinces will harmonize with this Amendment when developing or modifying standards.	The Amendment will increase harmonization with the United States by harmonizing the scope of the product. It will also maintain harmonization with the United States by incorporating by ambulatory reference the U.S. testing standard as the only testing option, and an NRCan technical standards document that will reproduce the U.S. energy efficiency standards.

Effects on the environment

In accordance with the Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.

Gender-based analysis plus

The Regulations benefit Canadians by helping to eliminate low energy efficiency products from the market. The Amendment will save money for households who will purchase more energy efficient products and pay less on their energy bills because of their lower energy consumption. In addition, energy-efficient products can improve the quality of the indoor living environment, ameliorating the health of the occupants. Despite the general positive impact of the Amendment on Canadians, an assessment was conducted to determine if certain groups of the population could be disproportionately impacted due to factors like their location, socio-economic circumstances and/or identity.

Location: The sensitivity analysis presented in the CBA shows that while there are regional disparities in the savings on energy bills due to differences in energy prices, everyone benefits from this Amendment regardless of where they live in Canada. Households paying higher energy prices like in rural, northern, and remote communities that are not connected to the national electricity grid and have to rely on more expensive local energy sources,^{footnote 19} including a significant proportion of Indigenous households,^{footnote 20} will benefit more from higher savings on their energy bills. In addition, remote communities in Canada are mostly located in the northern regions and typically have colder groundwater temperatures resulting in a higher-than-average daily electricity consumption to heat the water. Hence, purchasing more efficient electric water heaters, faucets and showerheads will also benefit them more. Market studies suggest that the Amendment is not expected to impact product supply and should not cause significant variations to regional availability and prices. However, a 2021 internal study on intersectional gender-based issues in Canada’s energy efficiency sector found that, in general, in northern and remote communities, it is more difficult to purchase appliances, including shipping issues (length of time for a product to arrive) and additional transportation costs. Because of these supply issues, NRCan does not have enough information to evaluate to what extent households in these communities will perceive different benefits than Canadians in urban centres.

Socio-economic situation (low income): Given the financial restrictions they face, savings on energy bills benefit more low-income households^{footnote 21} by helping alleviate their financial situation. The money saved on energy bills can be used for other household critical needs. However, it is possible that the Amendment would increase purchase prices of more efficient products, in which case low-income households could have more difficulty purchasing more energy-efficient products. The International Energy Agency has found that, while more efficient appliances covered by energy efficiency standards and labelling programs worldwide might sometimes be more expensive to buy when they are first introduced, the average purchase price declined at a rate of 2–3% per year.^{footnote 22} Despite this evidence, NRCan’s cost-benefit analysis takes a conservative approach and assumes that incremental manufacturer costs are passed on to consumers and remain constant over the analysis period.^{footnote 23} If a market price increase does happen, it would disproportionally affect these households by adding financial stress in the short run and reducing their net benefit. For room air conditioners and portable air conditioners, if contrary to NRCan’s expectation their market prices do increase^{footnote 24}, household members who are vulnerable to heat-related health risks^{footnote 25} could be further disproportionally impacted if the product is substituted for a suboptimal option that has a lower upfront cost, like a fan, or if they abstain from purchasing and use an older less efficient unit. Nevertheless, based on existing evidence, increases in product prices are unlikely to happen as a consequence of the Amendment, and if they do occur, they are not expected to persist. Instead, prices are expected to decline in the longer term.

Socio-economic situation (renters): When landlords have to replace products in renters’ dwellings with more energy-efficient models, renters who pay their energy bills could benefit further from energy savings if and to the extent landlords pass on the energy savings by not increasing rental fees. On the other hand, renters whose utility costs are included in their rent may not benefit from lower energy consumption when the landlord purchases more energy-efficient products if they do not pass on these energy cost savings to tenants in the form of lower rent.^{footnote 26} Homeowners, because they have the capacity to modify their dwellings, have more flexibility in deciding when to purchase energy efficient products and can start benefiting from more efficient products before renters. In this respect, they are considered to be in a better position to benefit from the Amendment.

Socio-economic situation (household size and behaviour): In general, since energy savings are determined by the household’s usage of a product, those households that use a product more frequently or for more hours will also have more energy savings relatively to those who do not. For example, for some products such as faucets and showerheads, large-family households will save more money on energy bills relative to smaller households who use less hot water and therefore will not save as much.

Identity (persons with disabilities): For most products in this Amendment, changes to the energy-efficiency requirements are not expected to modify product design affecting the user experience. Therefore, disproportional impacts, positive or negative, are not expected for persons with mental and/or physical disabilities. More efficient room air conditioners can be heavier or larger, which could make installation more challenging, according to a product market study conducted in 2023. NRCan could not assess whether or not this could have a disproportional impact on people with disabilities. The Amendment will also cause the replacement of mechanical line voltage thermostats by electronic units, which have different functionality features. NRCan could not determine whether the user feature change from a dial button in mechanical line voltage thermostats to a digital screen (with buttons) in electronic units will result in a positive or negative impact, if any.

This analysis was informed by

product-specific market studies conducted for the Amendment by third-party consultants who were requested to identify any disproportionate impacts from increasing energy efficiency standards on households from selected equity-deserving groups;
the sensitivity analysis presented in this document for the impact on people living in low/high regional costs.
an internal analysis of the 2019 Survey of Household Energy Use found under the National Energy Use Database (NEUD) — Databases;
an internal study conducted in 2021 on intersectional gender-based issues in Canada’s energy efficiency sector;
an internal study conducted in 2022 on energy affordability in Canada; and
an internal study conducted in 2023 on energy poverty rates and prevalence in Indigenous households using data from the 2021 Census.

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

If you have been negatively impacted by a previous amendment or believe you will be negatively impacted by the changes in the Amendment, please contact NRCan to share your experience.

Implementation, compliance and enforcement, and service standards

Coming into force

The Amendment will come into force six months after the date of publication in the Canada Gazette, Part II. Nevertheless, for specific products clauses allowing for early compliance with the new requirements will come into force on the day on which the Amendment is published in the Canada Gazette, Part II (see below for the list of products). Early compliance provides dealers the option to voluntarily comply with the new requirements earlier or wait until compliance with the new requirements becomes mandatory.

Transitional provisions — early compliance

To allow regulated parties to comply with either the new requirements included in this Amendment, or the former Regulations (i.e. the Regulations as they read immediately before the day on which the Amendment is published in the Canada Gazette, Part II), clauses for early compliance apply to the following energy-using products:

Central air conditioners and central heat pumps

Clauses for early compliance are in effect from the day the Amendment is published in the Canada Gazette, Part II, for products manufactured on or after January 1, 2025:

Single package central air conditioners
Split system central air conditioners
Single package central heat pumps
Split system central heat pumps

Gas furnaces

A clause for early compliance is in effect from the day the Amendment is published in the Canada Gazette, Part II, for products manufactured on or after January 1, 2024.

Electric water heaters

A clause for early compliance is in effect starting one year before the official compliance date, specifically for products manufactured on or after May 6, 2028.

Lamps

A clause for early compliance is in effect from the day the Amendment is published in the Canada Gazette, Part II, for

general service incandescent lamps and general service incandescent reflector lamps manufactured on or after January 1, 2024; and
the other newly regulated standard lamps, including compact fluorescent lamps, which are manufactured on or after January 1, 2025.

Former regulations apply

Lamps

The requirements of the former Regulations continue to apply with respect to the following lamps (as they are defined in the former Regulations):

General service lamps, general service incandescent reflector lamps or modified spectrum incandescent lamps manufactured before January 1, 2026; and
Compact fluorescent lamps manufactured before January 1, 2027.

The labelling requirements of the former Regulations continue to apply with respect to the following lamps (as they are defined in the former Regulations):

General service lamps, general service incandescent reflector lamps or modified spectrum incandescent lamps manufactured on or after January 1, 2026, and before January 1, 2027.

Otherwise, all the new requirements apply to the prescribed products based on their date of coming into force, manufacture or import or interprovincial shipment.

Stakeholders can refer to the Guide to Canada’s Energy Efficiency Regulations for more information.

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

Verification marking and energy efficiency prescribed information

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

Prescribed information pertaining to imports and monitoring

Existing NRCan procedures for the collection of information for commercial imports of prescribed products apply to products affected by the Amendment. These procedures involve crosschecking required import data received from customs release documents with the energy efficiency reports that regulated parties have submitted to NRCan. This crosschecking ensures that the compliance of prescribed products imported into Canada can be verified.

The Regulations require regulated parties of prescribed products to provide the information needed for customs monitoring.

Direct fieldwork: market surveillance 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, inspections, in-store audits and/or testing of products are also conducted.

NRCan also conducts product testing on a complaint-driven basis. The market is highly competitive, and suppliers are cognizant of performance claims made by their competitors.

Contact

Jamie Hulan
Senior Director
Equipment and Housing Division
Office of Energy Efficiency
Energy Efficiency and Technology Sector
Natural Resources Canada
580 Booth Street
Ottawa, Ontario
K1A 0E4
Telephone: 613‑864‑3644
Email: EEregulations-reglementEE@nrcan-rncan.gc.ca

Footnotes

Footnote a

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

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Footnote b

S.C. 2017, c. 33, s. 221

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Footnote c

S.C. 1992, c. 36

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Footnote 1

SOR/2016-311

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Footnote 2

Achievements of Appliance Energy Efficiency Standards and Labelling Programs: A Global Assessment in 2016 (PDF).

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Footnote 3

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

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Footnote 4

See A Healthy Environment and a Healthy Economy — Canada’s Strengthened Climate Plan to Create Jobs and Support People, Communities and the Planet and Pan-Canadian Framework on Clean Growth and Climate Change — Canada’s plan to address climate change and grow the economy.

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Footnote 5

No consensus is found in literature with respect to the rebound effect for energy efficiency of products and more empirical work would be required to estimate the size of the rebound effect for a variety of end-use products. In fact, rebound appears in varying definitions in the energy economics literature and most studies are related to theoretical issues, leaving relatively few papers with an analysis and estimation of the size of potential rebound effects.

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Footnote 6

Marginal fuels represent the power generation that is needed to meet the last unit of electricity demanded at a given time. The emissions from that power generation are used to calculate the reduced emissions owing to the Regulations.

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Footnote 7

Recommended by Environment and Climate Change Canada’s Social Cost of Greenhouse Gas Estimates — Interim Updated Guidance for the Government of Canada and in accordance with Treasury Board Secretariat recommendations for environmental and health regulations.

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Footnote 8

Historical and projected fuel prices are based on Environment and Climate Change Canada. 2022. Canada’s Greenhouse Gas and Air Pollutant Emissions Projections. Data were obtained through request to Environment and Climate Change Canada.

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Footnote 9

Social cost of greenhouse gas emissions. In Canada, SC-GHG estimates have been used since 2010 to value expected changes in GHG emissions as part of cost-benefit analysis (CBA) of regulatory proposals. More generally, these estimates are appropriate to use whenever weighing a decision that would lead to changes in GHG emissions, such as in the context of federal impact assessments for major projects. The interim values update the 2016 Technical Update to Environment and Climate Change Canada’s Social Cost of Greenhouse Gas Estimates. The updated estimates are identical to those adopted by the U.S. Environmental Protection Agency in their draft technical update, converted to Canadian currency in constant 2021 dollars.

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Footnote 10

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

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Footnote 11

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

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Footnote 12

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

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Footnote 13

See for example: International Energy Agency (2019), Multiple Benefits of Energy Efficiency 2019.

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Footnote 14

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

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Footnote 15

Municipal water use … statistics, Environment Canada, Issues 2011.

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Footnote 16

Wage rates used in the one-for-one rule are 2021 data form from Statistics Canada Table 14-10-0307-01, entitled Employee wages by occupation, annual. Values are provided in the Treasury Board Secretariat’s Regulatory Cost Calculator.

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Footnote 17

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

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Footnote 18

This framework is referenced under the 2024 RCT Work Plan (View document), as item 6, and presented in the Final Report: A Federal-Provincial-Territorial Cooperation Framework on Energy Efficiency Standards and Regulations (PDF).

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Footnote 19

According to NRCan’s Remote Communities Energy Database, most remote communities rely on diesel generators to produce electricity for heating needs. NRCan. See: The Atlas of Canada— Remote Communities Energy Database.

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Footnote 20

In 2016, 48% of Indigenous peoples lived in rural, northern, or remote communities (internal calculation). For example, almost three-quarters (73%) of Inuit lived in Inuit Nunangat, where the majority of communities are accessible only by air. Many First Nations communities are located in rural and remote areas. Métis were the most likely to live in a city, with almost two-thirds (63%) living in a metropolitan area in 2016. However, they were much more likely to reside in rural areas than the non-Indigenous population. Taken from: Indigenous women and girls: Socioeconomic conditions in remote communities compared with more accessible areas.

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Footnote 21

In 2022, 10.9% of people lived in households that were considered low-income, according to Statistics Canada’s indicator for low-income measure, after tax (see The Daily — Canadian Income Survey, 2022). According to the 2021 internal study, the population groups that are more likely to have low-income levels include Indigenous peoples, women, racialized people, single-parent families, younger (under 30 years old) and older (65 years old and older) people, and those with a high school degree or less (including intersections of these identity factors). Data from the 2021 Census shows that all Indigenous groups were more likely to live in a low-income situation, with rates varying from 12.6% for the Métis to over 31% for registered Indians on reserve (see An update on the socio-economic gaps between Indigenous Peoples and the non-Indigenous population in Canada: Highlights from the 2021 Census).

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Footnote 22

See Achievements of Energy Efficiency Appliance and Equipment Standards and Labelling Programs: 2021 update (PDF). In addition, several studies covering different products have found that estimated purchase prices increase after regulating more stringent energy efficiency standards did not occur (was barely detectable) and that market prices decreased more rapidly under regulation that without.

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Footnote 23

The retail price may increase to the extent manufacturers pass on to consumers the incremental cost of producing more energy-efficient models for electric water heaters (approximately 20–30%, with a larger increase for a bigger tank size), portable air conditioners (5–15%), room air conditioners (2–25%), and pool pumps (30–140%, with a larger increase for the larger pool size). Incremental cost estimates are ranges calculated from the CBA results. However, given that there are several other factors that affect the retail price of a product, such as quality, style and appearance, brand name, advertising and market awareness, market competition, secondary services, and retail margins, it is very difficult to estimate how incremental cost resulting from the Amendment would have an effect, if any, on the market price (see Achievements of Energy Efficiency Appliance and Equipment Standards and Labelling Programs: 2021 update [PDF (PDF)]).

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Footnote 24

Retail price increases for portable air conditioners are considered not likely since an analysis of the 2021–2022 market found that it appears to be no price correlation between cost and efficiency level. A 2023 market study found that room air conditioners prices trended downward or stayed relatively stable depending on model capacity during the 2010s, a period of time that included the introduction of more stringent energy efficiency standards.

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Footnote 25

Groups at higher health risk from heat include seniors, people with chronic illness or who are physically impaired, and newcomers and other groups with cultural differences and/or language and literacy barriers (see Communicating the health risks of extreme heat events).

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Footnote 26

Renters where approximately 33% of households in 2021 (see: To buy or to rent: The housing market continues to be reshaped by several factors as Canadians search for an affordable place to call home). The 2021 internal study found that renters are more likely low-income households, Indigenous people, racialized people, single-parent families (in particular female-led families), young people (under 30 years old), and households where the highest level of education is high school or lower.

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