Tighter Energy Efficiency Standards for Products

Summary#

This is a proposed set of changes called Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18), published in the Canada Gazette, Part I on June 22, 2024. Natural Resources Canada (NRCan) proposes new or updated energy-efficiency and testing rules for many products (appliances, heating and cooling equipment, lighting, water fixtures, pool pumps and air compressors) to better match U.S. standards and to push efficiency higher in some cases. The proposal is not law yet and is open for comments for 70 days.

What it does#

• Harmonizes Canadian testing and efficiency rules with new U.S. standards and with some state rules (notably California).
• Adds or tightens rules (efficiency, test methods, required information, verification) for specific products, including:
  • Air compressors (proposed start: January 10, 2025)
  • Pool pumps (proposed start: January 1, 2025)
  • Portable air conditioners (label and efficiency: January 10, 2025)
  • Electric, gas and oil water heaters (new test method and standards; electric water heaters: January 1, 2025 with a voluntary transition until January 1, 2027)
  • Room, central and split-system air conditioners and heat pumps (various dates; room AC new standard from May 26, 2026)
  • General service lamps (expanded scope; some lamp rules start January 1, 2024 or January 1, 2025; labelling required by January 1, 2026)
  • Faucets and showerheads (maximum flow rates; proposed start: July 1, 2026)
  • Line-voltage thermostats (adopt CSA standard; January 1, 2025)
• Expands the use of “ambulatory incorporation by reference” so Canada automatically follows updates to certain U.S. test standards or bilingual NRCan technical documents.
• Creates the possibility for NRCan to use faster “Ministerial Regulations” for some product updates to keep harmonization with trading partners.
• Includes transitional provisions that let some manufacturers voluntarily comply earlier (voluntary early compliance) and some transitional windows for manufacturers and lamps.

Who's affected#

• Manufacturers, importers and dealers of the listed products (appliances, HVAC equipment, water heaters, lighting, faucets, showerheads, pool pumps, air compressors).
• Retailers and distributors who sell those products in Canada.
• Homeowners, building managers and businesses that buy, install or operate the affected equipment.
• Testing labs and certification bodies (some new third‑party verification is kept or expanded).
• Provincial regulators and utilities (because of harmonization and energy‑saving targets).
• Indigenous organizations and communities were consulted; NRCan says the amendment is technical and does not trigger a duty to consult under section 35, but outreach will continue.
• If it is unclear who is affected for a specific product, the regulations and the NRCan guidance are the authoritative sources.

Why it matters#

• NRCan’s analysis estimates large net societal benefits: a present-value net benefit of about $51 billion by 2050 (benefits $57 billion vs. costs $6.2 billion).
• Energy and emissions impacts (by 2050): annual savings of about 58 petajoules of energy and 3.3 megatonnes of CO2 equivalent; cumulative savings of about 1,152 petajoules and 65 megatonnes by 2050.
• Real-world effects:
  • Buyers can save on energy bills over product lifetimes as less-efficient models are phased out.
  • Manufacturers and importers may face testing, verification and design costs, and some could pass those costs on to consumers in higher prices — a concern for low-income households.
  • Harmonization with U.S. rules aims to reduce duplicate testing and trade frictions, making it easier for North American suppliers to serve Canada.
  • Some stakeholders raised product-specific issues (for example, concerns about lower showerhead and faucet flow rates and plumbing residence time, and verification costs); NRCan addressed some concerns but kept many proposals.
• This is a proposal (Part I): it must complete the comment period and be republished in Part II before it can come into force. NRCan proposes most new rules to come into force six months after Part II publication, with specific product dates (above) and some transitional windows.