Traditionally, modifications to the Regulations would come into force six months after final publication in the Canada Gazette, which is expected by December 2022. However, NRCan is looking to shorten the 6-month delay between regulation publication and enforcement date, using ministerial authority, in an attempt to close the gap between US Department of Energy (DOE) and NRCan compliance dates. They are also considering postponing the 5◦F (-15C) requirement for residential heat pumps to a later date.

As provided by NRCAN on Amendment 17 Published April 2022
Description: The amendment would update energy efficiency and testing standards for central air conditioners and central heat pumps primarily used in the residential sector to prevent upcoming unnecessary regulatory differences between Canada and the United States. In addition, the Amendment would make other minor changes to currently regulated products to address known issues with Canadian requirements to ensure that the Energy Efficiency Regulations, 2016 align with the U.S. requirements more clearly where already intended.

As provided by NRCAN on Amendment 17 Published April 2022
Executive Summary: as provided by the Canada Gazette. Issues: Canada’s building sector (including homes and commercial and institutional buildings) is a significant contributor to Canada’s total energy consumption and greenhouse gas emissions, especially for space and water heating. Regulating the energy use of products is one of many tools available to the Government to reduce energy consumption and support the goal of net-zero emissions by 2050. Nevertheless, unnecessary regulatory differences across jurisdictions can hinder cross-border trade and investment and ultimately impose a cost on citizens, businesses, and economies. In this context, regulatory actions are necessary at this time to keep pace with changes that have been done in the United States, and to put in place tools that will facilitate maintaining alignment in the future.

Description: This proposed amendment (the Amendment) would update energy efficiency and testing standards for central air conditioners and central heat pumps primarily used in the residential sector to prevent upcoming unnecessary regulatory differences between Canada and the United States. In addition, the Amendment would make other minor changes to currently regulated products to address known issues with Canadian requirements to ensure that the Energy Efficiency Regulations, 2016 (the Regulations) align with the U.S. requirements more clearly where already intended.

Finally, the Amendment would specify energy-using products in order for the Minister of Natural Resources (the Minister) to be able to exercise the ministerial regulations authority, at his discretion, to maintain harmonization between requirements set out in another jurisdiction. Rationale: The Amendment would benefit Canadians by reducing energy consumption and resulting greenhouse gas emissions of products used in homes. Homeowners will benefit from reduced energy costs associated with the use of more efficient technologies. The Amendment would also avoid misalignment with the United States Department of Energy and facilitate future efforts to maintain alignment for products where a requirement (energy efficiency standards, testing standards, or information) is aligned with that of another jurisdiction. Throughout the development of the Amendment, stakeholders were provided several opportunities to comment on the changes being considered. Overall, stakeholders are supportive of the Amendment and recognize its potential benefit for consumers, utility programs, and climate change.

The present value of the net benefits of the Amendment is estimated to be about $1.68 billion by 2050, with total benefits exceeding total costs by a ratio of more than 5:1. By 2050, the present value of benefits and costs from the Amendment is estimated to be about $2.06 billion and $374.27 million, respectively. On an annualized average basis, this equates to benefits and costs of about $110 million and $20 million, respectively. The Amendment is estimated to result in a total annual reduction of energy consumption in Canada of about 2.1 petajoules in 2050, resulting in total greenhouse gas emission reductions of approximately 3.9 megatonnes of carbon dioxide equivalent by 2050. The quantified benefits have been calculated as the sum of the energy savings, the benefits of reductions in greenhouse gas emissions over the service life of products shipped by 2050, and the cost savings associated with preventing unnecessary regulatory differences. The quantified costs include incremental technology costs to meet the more stringent standards, and administrative and compliance costs for businesses.

If Canada does not amend the Regulations, its requirements would become misaligned with key testing standards from the United States Department of Energy, which could impact cross-border trade, would require companies to test differently for Canada, and ultimately increase costs for citizens, businesses and economies. In addition, in the absence of a regulatory approach, a market for low-efficiency products would continue. For more information about Amendment 17, you can read the pre-publication from the Gazette here.