Central Air and Heat Pump Efficiency Rules

Summary#

The Canada Gazette published the final rule Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 17) (SOR/2022-265) on December 21, 2022. It updates testing and efficiency rules for many products — most importantly central air conditioners and central heat pumps — and adds a list of products that the minister can more easily keep aligned with other jurisdictions (mainly the United States).

What it does#

• Updates testing methods and energy-efficiency requirements for residential central air conditioners and central heat pumps to follow newer U.S. test procedures and metrics. It adds new product types like “space‑constrained” units and new testing standards (for example, U.S. Appendix M1).
• Requires extra cold‑climate testing and reporting for heat pumps. The cold test point is mandatory in Canada starting January 1, 2025 (the rule phases in some related reporting earlier).
• Changes definitions and technical rules for water heaters (electric, gas, oil), walk‑in coolers/freezers and components, lamps and ballasts, ceiling‑fan light kits, electric motors (including small motors), and other equipment so Canadian rules better match U.S. standards or correct technical issues.
• Lists 60 energy‑using product types (including dishwashers, refrigerators, clothes washers and dryers, many lighting products, commercial refrigeration, pumps, motors and more). That list lets the Minister use a faster regulatory tool in future to keep Canada aligned with another jurisdiction’s requirements where alignment already exists.
• Revises the testing and information manufacturers must provide to Natural Resources Canada for compliance and monitoring.

Key timing:

• The instrument was published on December 21, 2022. Most provisions came into force on that date.
• Sections 1, 2 and 22–47 come into force six months later, on June 21, 2023.

Who's affected#

• Manufacturers and importers of HVAC equipment (central air conditioners and central heat pumps). Certification labs and testing facilities will be involved for new test methods.
• Retailers, distributors and installers who deal in the affected products.
• Homeowners and building owners who buy, replace or install these systems.
• Businesses that make or import other listed products (lighting, motors, water heaters, commercial refrigeration, pumps, etc.).
• The regulatory analysis estimated about 1,094 small businesses could be affected by the administrative changes (mainly reporting duties).

If you are unsure whether a specific product or model is affected, the rule’s technical tables and definitions determine which models are covered by the new requirements.

Why it matters#

• The government says the changes keep Canada aligned with new U.S. test procedures and efficiency standards. That reduces the need for manufacturers to test products twice for Canada and the U.S., which can cut costs and speed market access.
• The regulatory impact statement estimates net benefits of about $1.66 billion (present value) by 2050. It reports total benefits of about $2.04 billion and total costs of about $382.02 million (present value).
• Energy and emissions: the analysis projects annual energy savings of about 2.1 petajoules and an annual reduction of about 0.18 megatonnes of CO2e in 2050. Cumulatively by 2050 the rule is estimated to save about 37.8 petajoules and reduce about 3.2 megatonnes CO2e.
• For consumers, more efficient products generally mean lower energy bills over time, but there may be higher upfront costs for some models. The government’s analysis treats those upfront costs as passed to buyers and still finds net societal benefits.
• The rule also creates a faster path for future technical updates where Canada already intends to match another jurisdiction. That can reduce future trade frictions and compliance burdens.

If you want to check whether a particular product model meets the new rules, look up the specific product tables and testing standards in the full regulation or contact Natural Resources Canada’s equipment/efficiency contact listed in the Canada Gazette notice.