Air Conditioner and Heat Pump Efficiency Update

Summary#

This is a proposed rule called the Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17), published in the Canada Gazette, Part I on April 2, 2022. It would update testing and energy-efficiency rules for many heating, cooling and other products (most notably central air conditioners and heat pumps) to keep Canada aligned with recent U.S. standards and add a few Canada‑specific requirements (for example, a cold‑climate test). Interested people had 70 days from publication to comment — this is a proposal, not yet law.

What it does#

• Aligns Canada’s testing and efficiency rules for central air conditioners and central heat pumps with the new U.S. rules that take effect on January 1, 2023 (adopted from the U.S. Department of Energy’s test procedures).
  • For heat pumps it adds Canada‑specific changes: mandatory testing at a very low temperature (−15 °C) and reporting of performance for Canada’s colder Climate Region V.
• Changes how some other regulated products are tested or reported so they match updated U.S. practice or fix technical problems. Examples:
  • Require lumen (light output) reporting for ceiling fan light kits.
  • Point electric‑motor tables to the latest NEMA MG‑1 references and add test options used in the U.S.
  • Adjust which electric water heaters are treated as household vs. commercial and remove some large commercial electric water heaters from performance requirements (those > 530 L (140 US gallons) manufactured on or after January 1, 2020).
  • Add an alternative U.S. test option for fluorescent lamp ballasts.
  • Modify standards and testing references for gas‑fired and oil‑fired water heaters (including new rules for some commercial sizes from July 1, 2023 or January 1, 2020, depending on the product).
  • Update definitions and thermal‑resistance units (RSI / R‑value) and voltage limits for walk‑in coolers and freezers so Canadian units are covered.
• Specifies a long list of energy‑using products (clothes washers and dryers, refrigerators, various air conditioners and heat pumps, furnaces, water heaters, lamps, motors, vending machines, walk‑in components, etc.) so the Minister can use a faster, limited “ministerial regulations” tool in future to keep Canada aligned with other jurisdictions where alignment already exists.
• Timing: the proposal says the amendment would come into force six months after it is published in the Canada Gazette, Part II (exact calendar date depends on that publication).

Who's affected#

• Homeowners and building managers who buy central air conditioners, heat pumps, water heaters, or other household appliances. They are likely to get more efficient products and lower energy bills over time.
• HVAC and appliance manufacturers, importers, distributors and dealers who sell products in Canada. They may need to do extra testing or change product specifications to meet the updated Canadian rules.
• Utilities and energy‑efficiency programs that rely on verified product performance data to design rebates or incentives.
• Small businesses: the government estimated about 1,094 small businesses could be affected by the paperwork changes, with an average administrative impact of about $5 per business (annualized), and an estimated average administrative cost of $5,562 across all impacted small firms (present value figures used in the analysis).
• The analysis also identifies broader industry impacts: estimated present‑value costs of compliance of about $374.27 million and present‑value benefits of about $2.06 billion by 2050 (net present value about $1.68 billion, see next section).
• If it’s unclear who will notice a specific line‑item change, the full list of products in the proposed text is the authoritative source.

Why it matters#

• Keeps Canada aligned with the United States on appliance testing and efficiency, which reduces the chance of trade or compliance problems and means manufacturers avoid retesting the same models twice. The proposal monetizes some of those avoided costs.
• Reduces energy use and greenhouse gas emissions over time: the department’s analysis estimates annual energy savings reaching about 2.1 petajoules and cumulative GHG reductions of about 3.9 megatonnes of CO2‑equivalent by 2050 (present‑value benefits included in the economic estimate).
• Saves money for users: the department projects cumulative energy‑cost savings (present value) of about $1.46 billion by 2050, offsetting estimated technology costs.
• Adds a Canada‑specific cold‑climate test for heat pumps so that heat pumps sold in Canada perform well in colder regions.
• The proposal would also let the federal minister use a targeted regulation tool later to keep aligned with other jurisdictions more quickly when that is already the intent — speeding up changes that are mainly technical or administrative.
• The proposal is described as having net positive economic benefits in the department’s analysis, but it is still a draft and interested parties were invited to comment during the consultation period.