New Energy Efficiency Standards for Appliances

Summary#

This is a proposed set of changes called Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 18) from Natural Resources Canada under the Energy Efficiency Act. It would add or tighten energy‑efficiency and testing rules for many household, commercial and industrial products (things like water heaters, air conditioners, pumps, lamps, faucets and more), mainly to match U.S. standards and to cut energy use and greenhouse gases. The proposal was published in the Canada Gazette (Part I) on June 22, 2024 and the public has a 70‑day comment period.

What it does#

• Adds new regulated products and new or updated requirements for many existing products, including:
  • air compressors, pool pumps (manufactured on or after January 1, 2025), portable air conditioners (manufactured on or after January 10, 2025), faucets and showerheads (manufactured on or after July 1, 2026), various types of room and commercial air conditioners and heat pumps, and many kinds of water heaters and lamps.
• Harmonizes Canada’s testing methods and efficiency levels with U.S. federal rules where possible, and with California rules in a few cases (notably some faucet and showerhead limits that are stricter than current U.S. federal levels).
• Expands the use of “incorporation by reference” so Canada can adopt updated U.S. technical standards more quickly without re-writing the whole regulation each time.
• Lets the Minister use faster, targeted Ministerial Regulations in the future to keep Canadian rules aligned with trading partners.
• Adds transitional provisions that allow manufacturers to opt in early (voluntary early compliance) or use phased dates for some products.
• In a few places Canada’s rules would be stricter than the U.S. (for example, colder‑climate testing and information for certain heat pumps).

Who's affected#

• Consumers and property owners — homeowners, renters and institutions using heating, cooling, water‑heating and lighting equipment.
• Supply chain and sellers — manufacturers and importers, retailers, and HVAC/plumbing contractors who make, bring in, test, label or sell the affected products.
• Service and compliance groups — utilities, testing labs, and certification bodies that verify compliance.
• Governments and regulators — provincial and territorial governments who may align their own rules, and National Indigenous Organizations and other groups who were consulted.
• Many businesses will notice paperwork changes (new test reports and product information), while others may need to redesign products or change models sold in Canada.

Why it matters#

• Energy and bills: The department estimates the package would cut Canada’s energy consumption and lower household and business energy bills. The RIAS projects cumulative energy savings and GHG reductions that translate into large societal benefits — a present‑value net benefit of about $51 billion by 2050 (total benefits $57 billion vs. costs $6.2 billion).
• Climate: By 2050 the Amendment is estimated to reduce annual energy use by about 58 petajoules and annual greenhouse‑gas emissions by about 3.3 megatonnes; cumulative reductions to 65 megatonnes of CO2e by 2050.
• Trade and costs for industry: Harmonizing with U.S. standards aims to cut duplicate testing and reduce trade frictions. Incorporating U.S. standards on an ongoing basis should make it easier for manufacturers to sell the same models in both markets.
• Upfront vs long run: Some products may cost more to buy if manufacturers add technology to meet new standards, but users should save money over the life of the product through lower energy use. The regulatory analysis assumes manufacturers’ extra costs are passed to buyers and estimates the financial trade‑offs across product lifetimes.
• Practical concerns raised: plumbing and public‑health groups questioned lower flow rates for faucets and showerheads (residence time in pipes, water comfort and municipal impacts). NRCan consulted Health Canada and other bodies and decided there was not enough evidence to cancel those changes.
• This is still a proposal: these changes are not law yet. The public comment period is part of the next step before final rules are made.