Canada Gazette, Part I, Volume 152, Number 42: Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15)

October 20, 2018

Statutory authority
Energy Efficiency Act

Sponsoring department
Department of Natural Resources

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

In 1992, Parliament passed Canada's Energy Efficiency Act (the Act) and amended it multiple times since then. The Act provides for the making and enforcement of regulations requiring energy-using products that are imported or shipped inter-provincially for the purpose of sale or lease to meet minimum energy performance standards (MEPS) ^{footnote 1} for product labelling and for the promotion of energy efficiency and alternative energy use, including the collection of data and statistics on energy use.

The Energy Efficiency Regulations were introduced in 1995 as a means to reduce greenhouse gas (GHG) emissions in Canada. In 2016, the Energy Efficiency Regulations were repealed and replaced to remove references to obsolete and out-of-date standards and improve the organization of the regulatory text and became the Energy Efficiency Regulations, 2016 (the Regulations). The Regulations prescribe MEPS for certain consumer and commercial energy-using products. They also prescribe labelling requirements for certain products to disclose and compare the energy use of a given product model relative to others in their category. They are regularly amended to introduce new energy-using products and to update existing requirements.

Since most energy-using products must cross provincial or international borders to reach their markets, federally prescribed MEPS are an effective tool to raise the level of energy efficiency in Canada. Prescribed MEPS are one component of Canada's program to reduce GHG emissions and energy consumption associated with energy-using products because they eliminate the least efficient products from the market. Natural Resources Canada also administers the ENERGY STAR^® labelling program, which sets voluntary specifications for 75 product categories and identifies the top 15 to 30% of energy efficiency performers, making the choice of energy-efficient products simple for consumers and businesses.

When combined, MEPS and labelling programs drive product innovation through cycles of continuous improvement. Increasing the stringency of MEPS eliminates the least efficient products from the market while increasing the levels that must be met for a product to be certified as ENERGY STAR, and encourages manufacturers to produce affordable high-efficiency products that consumers and businesses will recognize as good choices to lower their energy costs. MEPS and labelling programs are among the most cost-effective GHG reduction policies and are the cornerstone of energy efficiency and climate change programs in more than 80 countries. ^{footnote 2}

Policy context

Canada committed to reduce its GHG emissions by 30% below 2005 levels by signing the Paris Agreement in 2015. Building on this commitment, First Ministers agreed to take ambitious action in support of meeting or exceeding this target. They also agreed that a collaborative approach between provincial, territorial, and federal governments is important to reduce GHG emissions and to enable sustainable economic growth.

In December 2016, First Ministers adopted the Pan-Canadian Framework on Clean Growth and Climate Change, which presents the country's plan to meet its GHG emissions reduction targets, grow the economy, and build resilience to a changing climate. The plan outlines an approach for the building sector that consists of four elements: (1) making new buildings more energy efficient; (2) retrofitting existing buildings, as well as fuel switching; (3) supporting building codes and energy-efficient housing in Indigenous communities; and (4) improving energy efficiency for appliances and equipment. To deliver on the fourth element of this approach, the federal government committed to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable.

This commitment builds on the August 2016 publication of a framework and action plan for energy efficiency standards under the Energy and Mines Ministers' Conference and collaborative efforts with provinces and territories to implement the Canadian Energy Strategy. Build Smart — Canada's Buildings Strategy identifies the achievement of this commitment as a core element of the national plan to reduce the energy consumption and greenhouse gas emissions from the building sector.

Consistent with these commitments, in 2017, Energy and Mines Ministers agreed to advance measures to accelerate energy efficiency and collaborate on market transformation strategies for windows, space heating and water heating systems in the building sector. ^{footnote 3} Ministers also released a series of short-, medium- and long-term aspirational goals for the energy performance of key equipment technologies. Ministers agreed to work towards a goal that, by 2025, all fuel-burning technologies for primary space heating and water heating for sale in Canada will meet an energy performance of at least 90% (i.e. condensing technology level). Ministers also released Build Smart — Canada's Buildings Strategy, which identifies the improvement of equipment energy efficiency as a key component of the country's efforts to transition towards a low-carbon built environment.

In June 2018, the Generation Energy Council released a report that highlighted the important role that energy efficiency can play in reducing GHG emissions in Canada. According to this report, fully one-third of Canada's emission reduction target could be met through improvements in energy efficiency, which would also make Canadian businesses more competitive internationally and leave more money in consumers' pockets. ^{footnote 4} These conclusions are supported by an Efficiency Canada report on the economic impacts of energy efficiency, which showed that implementing strong energy efficiency programs will increase Canada's gross domestic product and job growth. ^{footnote 5}

Issues

GHGs are primary contributors to climate change, which has an impact on Canada's economy and environment. Carbon dioxide, a by-product of fossil fuel consumption, has been identified as the most significant GHG.

Canadian homes and commercial and institutional buildings (the building sector) are significant contributors to national GHG emissions. The building sector accounted for about 17% of national GHG emissions in 2014. The level of emissions in the building sector is impacted by the energy-using equipment it contains. Products that combust fuel to generate heat lead to direct carbon dioxide emissions at the site, while products that consume electricity contribute to GHG emissions at the point of generation.

GHG emissions from Canadian homes declined by 1 megatonne (Mt) between 2005 and 2015, and are projected to decline by a further 3 Mt between 2015 and 2030. This is despite an expected 36% (or 4.4 million) increase in the number of Canadian households (a key driver of residential emissions growth) between 2005 and 2030. GHG emissions from Canada's commercial buildings increased by 1 Mt between 2005 and 2015, and are expected to remain relatively constant through 2030, despite an expected 32% increase in floor space from 2005 to 2030. ^{footnote 6}

While technologies exist on the Canadian market to provide incremental reductions in GHG emissions and energy consumption in the building sector, there are market failures that lead to consumers making economic or environmental choices with respect to energy efficiency that are less than optimal. These include a lack of awareness and information available to consumers regarding energy-saving opportunities and actual energy use; a lack of capacity within organizations to understand and manage energy use; and split incentives (e.g. landlords may not purchase energy-efficient products if tenants pay the energy bill). Regulatory action is required given that voluntary measures will not be sufficient to phase out the least efficient product models from the Canadian market.

Objectives

The goals of the Amendment are to

• Reduce GHG emissions and energy consumption associated with 11 product categories in a manner that aligns with other jurisdictions, where feasible and appropriate; and
• Reduce energy costs assumed by consumers and businesses.

The desired outcomes of the Amendment are as follows:

• GHG emissions are reduced, contributing to Canada's goal to reduce GHG emissions by at least 30% below 2005 levels by 2030;
• Energy use for space and water heating in the building sector decreases per unit of floor space;
• Consumers and businesses save money by purchasing higher efficiency product models that have lower costs over their lifetime; and
• Businesses using regulated energy-using products experience cost savings that can lead to increased productivity and competitiveness.

Description

In March 2017, Natural Resources Canada published a notice of intent to inform stakeholders that the Department was initiating the development of a regulatory amendment to introduce or increase the stringency of MEPS for 17 product categories. A subsequent decision was made to address these product categories through two separate, sequential regulatory proposals. Product categories that were identified in the notice of intent but are not included in the Amendment will be addressed in a subsequent regulatory proposal.

The regulatory changes outlined below have been developed to support the federal government's commitment to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable. In some cases, this is achieved by proposing standards at ENERGY STAR levels; in others, proposed levels have been selected based on an assessment of their technical feasibility and associated economic impacts. Proposed testing standards are aligned with those used in other jurisdictions to avoid unnecessary compliance burden.

The Amendment would (A) introduce MEPS, labelling and reporting requirements for seven new product categories; (B) introduce more stringent MEPS and update testing standards, as necessary, for four currently regulated product categories; and (C) introduce labelling and reporting requirements for one new product category. The Amendment would come into force six months after the date of its publication in the Canada Gazette, Part II.

For the new product categories, import reports and energy efficiency reports would be required for the first time. The information requirements in the energy efficiency reports will be aligned to the extent possible with what is submitted in the United States.

The following is a list of changes that are being proposed to the Regulations.

(A) Introduce MEPS, labelling and reporting requirements for new product categories

Electric furnaces

Electric furnaces are those with an input capacity of not more than 65.92 kW (225 000 Btu/h) and use electricity as the primary heat source to provide heated air to a home through a home's built-in ductwork.

For electric furnaces manufactured on or after July 3, 2019, the Amendment would set the MEPS applicable to the electrical consumption of a furnace fan at levels that will apply on that same date in the United States. Performance would be measured in accordance with testing standards aligned with those of the United States.

Gas boilers (commercial)

Commercial gas boilers are used for space heating in buildings and can either use hot water or steam as the working fluid to distribute heat throughout the space. They use gas or propane as the fuel source and have input ratings greater than or equal to 88 kW (300 000 Btu/h) and less than or equal to 2 930 kW (10 000 000 Btu/h).

For commercial gas boilers manufactured on or after January 1, 2023, the Amendment would set the MEPS at condensing technology levels and performance would be measured in accordance with testing standards aligned with those of the United States. The proposed MEPS are set at levels currently in place in Ontario ^{footnote 7} for new construction.

Gas-fired instantaneous water heaters (household and commercial)

Household and commercial gas-fired instantaneous water heaters are used in homes and businesses to heat water on demand as it flows for use in cooking, cleaning, and bathing. They use natural gas or propane as the fuel source.

For household and commercial instantaneous gas-fired water heaters manufactured on or after January 1, 2020, the Amendment would set MEPS at condensing technology levels equivalent to current ENERGY STAR performance levels. Performance would be measured in accordance with testing standards aligned with those of the United States.

Oil-fired boilers (commercial)

Commercial oil-fired boilers are used for space heating in buildings and can use either hot water or steam as the working fluid to distribute heat throughout the space. They have input ratings greater than or equal to 88 kW (300 000 Btu/h) and less than or equal to 2 930 kW (10 000 000 Btu/h).

For commercial oil-fired boilers manufactured on or after January 1, 2023, the Amendment would set the MEPS at levels proposed in the U.S. Department of Energy prepublished final rule on December 28, 2016. Performance would be measured in accordance with testing standards aligned with those of the United States.

Electric water heaters (commercial)

Commercial electric water heaters heat water for use in cooking, cleaning, and bathing. They use electricity as the source of energy and have input rates of greater than or equal to 12 kW (40 982 Btu/h) and a volume of at least 50 L (13 U.S. gal).

For commercial electric water heaters manufactured on or after January 1, 2020, the Amendment would set the MEPS at levels that are currently in place in the United States. Performance would be measured in accordance with testing standards aligned with those of the United States.

Gas-fired storage water heaters (commercial)

Commercial gas-fired storage water heaters heat water for use in cooking, cleaning, and bathing. They use gas or propane as the fuel source and have input rates greater than 21.97 kW (75 000 Btu/h).

For commercial gas-fired storage water heaters manufactured on or after January 1, 2020, the Amendment would set the MEPS for residential-duty commercial units, marked as replacement units, at levels that are currently in place in the United States. For non-residential-duty commercial units marked as replacement units, the Amendment would set the MEPS at the current standby loss level in place in the United States, but at a slightly higher thermal efficiency level than is currently in place in the United States. For all other products, the Amendment would set the MEPS at condensing technology levels. Performance would be measured in accordance with testing standards aligned with those of the United States.

Oil-fired water heaters (commercial)

Commercial oil-fired water heaters heat water for use in cooking, cleaning, and bathing. They have input rates greater than 30.5 kW (105 000 Btu/h).

For commercial oil-fired water heaters manufactured on or after January 1, 2020, the Amendment would set the MEPS at levels that are currently in place in the United States. Performance would be measured in accordance with testing standards aligned with those of the United States.

(B) Introduce more stringent MEPS for currently regulated product categories

Gas boilers (household)

Household gas boilers provide heat to a home and can use either hot water or steam as the working fluid to distribute heat throughout the space. They use propane or natural gas and have an input rate of less than 88 kW (300 000 Btu/h).

For household gas boilers manufactured on or after January 15, 2021, the Amendment would set the MEPS at the condensing technology level equivalent to the current ENERGY STAR performance level. Performance would be measured in accordance with an updated testing standard aligned with that of the United States.

Gas fireplaces

Gas fireplaces use propane or natural gas to provide an aesthetically pleasing flame. Decorative gas fireplaces direct minimal heat towards the room and heating gas fireplaces provide a heat source for a room. They are used in people's homes and commercial establishments such as hotel lobbies and restaurants. Gas fireplaces may be freestanding, recessed, zero clearance or insert units.

For heating gas fireplaces manufactured on or after January 1, 2020, the Amendment would introduce MEPS and prescriptive requirements for pilots. For decorative gas fireplaces manufactured on or after January 1, 2020, the Amendment would introduce prescriptive requirements for pilots, main burner operation, and combustion air. The proposed requirements are designed to achieve similar outcomes as those that will apply in British Columbia on January 1, 2019, with differences resulting from the proposed use of more prescriptive requirements for decorative gas fireplaces than those in British Columbia. ^{footnote 8} The existing testing standard is not being changed.

Gas furnaces

Gas furnaces use propane or natural gas to provide heated air to a home through the home's built-in ductwork. They have an input rate of not more than 117.23 kW (400 000 Btu/h), but do not currently include gas furnaces for mobile homes and recreational vehicles.

For gas furnaces manufactured on or after July 3, 2019, the Amendment would remove the exclusion given to gas furnaces for mobile homes and add an exclusion for park model trailers, and increase the annual fuel use efficiency MEPS to the current ENERGY STAR performance level, except for gas furnaces that are marked for use in a relocatable building. Performance would be measured in accordance with an updated testing standard aligned with that of the United States.

Oil-fired boilers (household)

Household oil-fired boilers provide heat to a home and can use either hot water or steam as the working fluid to distribute heat throughout the space. They have an input rate of less than 88 kW (300 000 Btu/h).

For household oil-fired boilers manufactured on or after January 15, 2021, the Amendment would set the MEPS at levels that will apply on that same date in the United States. The existing testing standards are being updated but will remain aligned with those of the United States.

(C) Introduce labelling and reporting requirements for one new product category

Heat recovery ventilators and energy-recovery ventilators

Heat-recovery ventilators (HRVs) are mechanical devices that transfer heat from stale indoor air to fresh outdoor air. Energy-recovery ventilators (ERVs) are HRVs designed to transfer heat and moisture.

For HRVs and ERVs manufactured on or after January 1, 2020, the Amendment would require the submission of energy efficiency reports and importation reports. Performance would be measured in accordance with testing standards currently required for ENERGY STAR certification.

Regulatory and non-regulatory options considered

Maintaining the status quo

GHG emissions from Canadian homes are projected to decline by 8% between 2005 and 2030. During this same time frame, emissions from commercial buildings are projected to stay constant. Given Canada's commitment to reducing GHG emissions by 30% below 2005 levels by 2030 and the fact that Canada's building sector accounts for approximately 17% of national emissions, maintaining the status quo would not contribute incremental reductions towards the achievement of these goals. It would also lead to missed opportunities to reduce energy consumption, leaving consumers and businesses with higher energy costs for heating associated with the building sector.

The status quo option would not deliver on the federal government's commitment to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable as stated in the Pan-Canadian Framework on Clean Growth and Climate Change, nor would it contribute to the achievement of the aspirational goal agreed to by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet an energy performance of at least 90% (condensing technology level). Since the Amendment has been designed to achieve greater harmonization on federal and provincial energy efficiency standards, the status quo option would be inconsistent with the federal-provincial-territorial framework to encourage market transformation through collaboration on energy efficiency standards, released by the Energy and Mines Ministers' Conference in 2016.

Voluntary approach (repeal the Regulations)

Under this approach, Canada would repeal the Regulations and rely on voluntary measures to reduce GHG emissions and energy consumption associated with energy-using products. This option would reduce costs for the regulated industry, since there would be no mandatory requirements to meet; however, it would not address GHG emissions to the extent required to meet commitments made under the Pan-Canadian Framework on Clean Growth and Climate Change, nor would it reduce energy consumption to the extent that a regulatory approach would. A voluntary approach would also be a significant departure from Canada's approach to advancing energy efficiency and from the intent of the Act.

A voluntary approach would result in fewer GHG emission reductions than the status quo option or taking a regulatory approach. Studies have shown that in countries where MEPS have been introduced for the first time, significant energy efficiency improvements have been observed. For example, a 32% energy efficiency improvement was achieved in one year (1994–1995) when Mexico first implemented MEPS for four product categories. ^{footnote 9} Such improvements have translated into large reductions in energy consumption and GHG emissions. Globally, the most mature national MEPS and labelling programs covering a broad range of products are estimated to save between 10% and 25% of national energy consumption. ^{footnote 10} There is strong evidence to show that significant and sustained improvements in energy efficiency occur where MEPS are subject to ongoing revision and updating to keep pace with the rate of improvement in new products entering a market. ^{footnote 11} Given the global evidence of the significant benefits of MEPS, a voluntary approach would mean that these benefits would not be realized.

Regulatory action

Taking regulatory action to increase the stringency of MEPS for the 11 product categories affected by the Amendment will lead to greater GHG emissions reductions than either the status quo or voluntary approach. This approach would provide important incremental GHG emission reductions to contribute to the achievement of Canada's commitments made under the Pan-Canadian Framework on Clean Growth and Climate Change; it would also contribute to achieving the aspirational goal agreed to by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet an energy performance of at least 90% (condensing technology level).

Benefits and costs

Summary

Reduced energy consumption and lower GHG emissions will result in significant net benefits over the lifetime of affected product models. The benefits vary by individual user depending on end-use sector, geographical location and operational practices.

Annual reductions in energy consumption associated with the Amendment are estimated to be 1.07 petajoules (PJ) in 2020 and are expected to reach 18.58 PJ in 2030 as the sale of more efficient products steadily replaces the pre-regulation stock.

Annual reductions in GHG emissions resulting from these reductions in energy consumption are estimated to be 0.05 Mt in 2020 and are expected to reach 0.92 Mt in 2030. It is estimated that, by applying a social cost of carbon to these reductions, the cumulative present value of economic benefits associated with GHG emission reductions will be $701 million by 2030. ^{footnote 12}

Canadian consumers will also realize economic benefits in the form of reduced energy costs due to the implementation of the Amendment. It is estimated that more than $2 billion in cumulative present value energy savings will be realized by 2030.

The cumulative present value of incremental technology costs and costs to Government associated with the Amendment are estimated to be $1.0 billion and $0.1 million, respectively, by 2030.

The present value of net benefits of the Amendment is estimated to be $1.80 billion by 2030, with total benefits exceeding total costs by more than two to one. By 2030, the present value of benefits and costs from the Amendment is estimated to be $2.84 billion and $1.04 billion, respectively.

Benefits and costs associated with the Amendment are presented in Table 1.

Table 1: Summary of benefits and costs associated with the Amendment

Monetized Benefits	Costs (if applicable)	Quantified Benefits	Unquantified Benefits
Energy (gas and electricity) savings	Technology costs	Energy savings (PJ)	Outside air quality, competiveness, job growth, non-energy benefits (home comfort, indoor air quality, minimizing depressurization in new construction, etc.)
Avoided damages because of GHG reductions	Installation costs Government administration	GHG savings (Mt)

Interested parties seeking more details on this analysis can request a copy of the cost-benefit analysis document by contacting the individual named at the end of this document.

Methodology, assumptions and data

Natural Resources Canada analyzed the economic gains to be made through the more stringent MEPS and the impact on Canadian society within a cost-benefit analysis framework. The costs and benefits associated with the Amendment were obtained by comparing the following scenarios:

• the business-as-usual case (i.e. excluding the Amendment); and
• the policy case (i.e. the business-as-usual case including the Amendment).

Business-as-usual case

For the purpose of this analysis, the business-as-usual case was defined in terms of Canadian market conditions assessed in 2016. Where Canadian MEPS are aligning with those of the United States, it was assumed that incremental costs and benefits in Canada were fully the result of the Canadian amendments, with no post-2016 spillover effects from the other jurisdictions such as the United States. This assumption is consistent with other recent federal regulations ^{footnote 13} and provides an assessment of the full economic impacts of regulatory changes affecting Canadians.

Policy case

The policy case is defined as the application of the more stringent MEPS across 11 product categories relative to markets defined by studies completed in 2016.

Benchmarks

For all product categories, benchmarks are chosen to represent the product models that do not meet the more stringent MEPS. Within those benchmarks, two efficiency levels are considered and weighted based on their relative market share: (1) the least efficient; and (2) the efficiency of the average unit impacted. Where relevant, regional sensitivities were evaluated (e.g. a gas furnace would save more energy per year in a colder location).

Social cost of carbon

The social cost of carbon was used to quantify the economic benefits of reducing GHG emissions. It represents an estimate of the economic value of avoided climate change damages at the global level for current and future generations as a result of reducing GHG emissions. The estimated values of the social cost of carbon used in this assessment draw on ongoing work undertaken by Environment and Climate Change Canada ^{footnote 14} in collaboration with a federal interdepartmental working group and in consultation with a number of external academic experts. This work involves reviewing existing literature and other countries' approaches to valuing GHG emissions. Preliminary recommendations, based on current literature and in line with the approach adopted by the U.S. Interagency Working Group on the Social Cost of Carbon, ^{footnote 15} are that it is reasonable to estimate social cost of carbon values at $37.4/tonne of carbon dioxide equivalent in 2013 (in 2012$), increasing each year with the expected growth in damages.

Methodology to estimate costs

The additional or "incremental" costs associated with the Amendment were determined as the difference between the cost of the inefficient product model, represented by the selected benchmark, and the cost of a modified version of that product model that would meet the more stringent MEPS. For each product category, the potential cost of modifying the benchmark product model so that it meets the more stringent MEPS was estimated (e.g. cost of adding insulation to a water heater). These costs were then multiplied by the number of shipments of the product models in the business-as-usual case that were estimated to have an energy performance that is worse than what is required by the MEPS. Results were combined across all affected product categories to arrive at the estimate of total costs.

Additional incremental costs related to installation and maintenance costs or to the lifetime of the product were also evaluated, as applicable. Total costs reported as being attributable to the Amendment include, when appropriate, manufacturing, compliance and administrative costs as well as those incurred by Government to implement the changes. The compliance costs do not include testing costs for products that are already being tested to enter the U.S. market or under voluntary programs. The added cost of third-party verification and marking is not included either because they are confidential business costs that vary based on business relationships. ^{footnote 16} However, they are estimated to be less than 10% of the total testing costs.

Methodology to estimate benefits

Energy savings for each product category were estimated by calculating the energy used by the selected benchmark product model by simulating how it would be normally used in a year (e.g. number of operating hours). The result was compared to the energy used by the modified version of that product model that would meet the more stringent MEPS. The difference was multiplied by the number of shipments of the product models in the business-as-usual case that were estimated to have an energy performance that is worse than what is required by the MEPS and the number of years the product is expected to last, in order to arrive at the total energy savings. Results were summed across all affected product categories to arrive at the estimate of total energy saved. This was then monetized by multiplying the results by the cost of energy per unit of energy saved (i.e. dollars per kilowatt hour).

The reductions in GHG emissions were calculated by applying fuel-specific emissions factors, consistent with those published by Environment and Climate Change Canada, to the resulting energy savings. To remain consistent with the U.S. methodology and produce more realistic GHG savings, the reductions attributable to diminished electricity consumption were calculated by applying the emission factors associated with the marginal fuels ^{footnote 17} used to generate the electricity that would be saved through implementation of the Amendment. To allow comparison with outcomes reported under the PanCanadian Framework on Clean Growth and Climate Change, the reductions in GHG emissions were also calculated by applying an average emission factor. Annual reductions in GHG emissions with the average emission factor are estimated to be 0.13 Mt in 2020, increasing to 1.03 Mt in 2030. GHG emissions were monetized and incorporated into the analysis using a social cost of carbon, as calculated by Environment and Climate Change Canada. The social cost of carbon represents an estimate of the economic value of avoided climate change damages at the global level — for current and future generations — as a result of reducing GHG emissions.

Assumptions

Key assumptions include the following:

• Analysis covers shipments impacted by the proposed Regulations between 2019 and 2030;
• Business-as-usual case reflects Canadian market conditions in 2016;
• Benefits and costs are measured in real constant 2018 dollars;
• A 3% real discount rate is applied to all benefits and costs with values discounted to 2018; ^{footnote 18}
• Canadian average energy prices, based on data from Environment and Climate Change Canada's 2017 Emission Trends;
• Valuation of the GHG emissions incorporated into the analysis is based on the social cost of carbon as calculated by Environment and Climate Change Canada;
• Costs assumed by manufactures and distributors to produce technology that is more efficient are assumed to be passed on to consumers or end-users; and
• Incremental costs associated with more efficient technology were estimated in 2016 and are assumed to be constant, despite evidence ^{footnote 19} that such costs come down with time, owing to improvements in manufacturing processes and economies of scale, as higher volumes of product models with new technology enter the market. This assumption could lead to overestimates of manufacturing costs; however, it provides a conservative assessment of overall net benefits. A 2018 study ^{footnote 20} found that each doubling of production for residential gas furnaces lead to a 5.7% to 8.9% decrease in manufacturing costs.

Data collection and sources

Data is collected on a product-by-product basis, through market studies. It provides key inputs to the analysis such as market size, the portion of the market that does not meet the more stringent MEPS, the benchmarks that best represent that portion of the market, energy savings from the business-as-usual case to the policy case, costs of moving from the business-as-usual case to the policy case, product lifetime, and installation costs.

Results

The methodology described above was applied to all product categories to develop an estimate of the benefits and costs attributable to the Amendment. The results vary by product category depending on the magnitude of the increase in stringency of the MEPS and the estimated portion of the market that will be impacted by the Amendment. The estimated benefits and costs for each product category are presented in Table 2 and are provided by product category, fuel-type and end-use levels. Negative numbers in the table indicate that these particular subcategories present negative net benefits. Consistent with previous amendments, subcategories that do not generate net positive benefits are maintained in order to achieve the desired objectives and outcomes of the Amendment from which Canadians will benefit as a whole. These results are then aggregated to present the overall impacts of the Amendment in Table 3.

Table 2: Benefits and costs (technology and installation) per product category and subcategory used in analysis

Product Category (Subcategory)	Cumulative Total for Product Shipped by 2030 (Millions of Dollars) [2018$]
	Product Costsfootnote *	Product Benefitsfootnote **	Product Net Benefits
Household gas boilers	$99.06	$164.20	$65.14
Intended for hot water systems	$99.03	$164.03	$65.00
Intended for low pressure steam systems	$0.03	$0.17	$0.14
Household oil-fired boilers	$6.86	$32.96	$26.10
Intended for hot water systems	$6.75	$32.55	$25.79
Intended for low pressure steam systems	$0.11	$0.41	$0.31
Commercial gas boilers	$589.75	$973.53	$383.78
Intended for hot water systems	$573.56	$935.50	$361.94
Intended for low pressure steam systems	$16.19	$38.03	$21.84
Commercial oil-fired boilers	$3.27	$13.62	$10.35
Intended for hot water systems	$3.07	$12.68	$9.61
Intended for low pressure steam systems	$0.20	$0.93	$0.74
Gas fireplaces	$95.99	$1,049.58	$953.60
Heating	$51.26	$480.97	$429.71
Decorative	$44.73	$568.61	$523.88
Household gas-fired instantaneous water heaters	$0.00	$29.63	$29.63
Commercial gas-fired water heaters	$29.42	$47.23	$17.81
Commercial gas-fired storage water heater	$15.01	$42.01	$27.00
Residential-duty commercial gas-fired storage water heater	$5.53	$1.53	-$4.00
Commercial gas-fired instantaneous water heater	$8.88	$3.69	-$5.19
Gas furnaces	$199.65	$515.46	$315.82
Electric furnaces footnote 21	$15.16	$18.33	$3.17

Note: Numbers may not add up to totals due to rounding. Covers shipments impacted by the proposed Regulations between 2019 and 2030. All benefits and costs are discounted at 3% to the year 2018.

Table 3: Summary of benefits and costs to Canadians

Costs, Benefits and Distribution				Aggregate Annual Totals		Total Cumulative Present Value	Average Annualized Over Period to 2030
				2020	2030	By 2030
A. Quantified impacts ($) [millions in 2018 prices]
Benefits	Pre-tax fuel (gas and electricity) savings		Canadians	$131.79	$279.58	$2,143.96	$215.39
	Avoided GHG damages		Canadians	$35.38	$98.63	$700.59	$70.38
Total benefits				$167.17	$378.21	$2,844.54	$285.77
Costs	Technology and installation costs		Canadians	$34.68	$146.50	$1,039.16	$104.40
	Compliance and administrative costs		Canadians	$0.11	$0.12	$1.23	$0.12
	Government administration		Government	$0.10	$0	$0.10	$0.01
Total costs				$34.89	$146.67	$1,040.49	$104.53
Net benefits				$132.28	$231.54	$1,804.06	$181.24
B. Quantified impacts (in non-$)
Positive impacts on Canadians		Energy savings (petajoules)		1.07	18.58	101.63	—
		GHG emission reductions (megatonnes)		0.05	0.92	5.03	—

Note: Numbers may not add up to totals due to rounding. The information in this table covers shipments impacted by the proposed Regulations between 2019 and 2030. All benefits and costs are discounted at 3% to the year 2018.

Additional benefits and costs

For industries using affected energy-using products in their operations, an improvement in energy performance translates into energy and operating cost savings, increased productivity and competitiveness, and improved environmental performance. When such companies spend these energy savings on expanding their businesses or factories, they create greater demand.

Because of the lack of data, the analysis has not quantified widely accepted benefits, such as reduced air pollution, and non-energy benefits related to energy efficiency, such as increased occupant comfort, better indoor air quality and minimizing risks of depressurization in new constructions with better envelopes.

The analysis has quantified costs and benefits for each product category relative to a business-as-usual case defined by market conditions assessed in 2016. In the case of three product categories (commercial electric water heaters, commercial oil-fired water heaters and residential-duty commercial oil-fired water heaters), the assessment showed that all product models being imported into Canada or shipped between provinces comply with the proposed MEPS. While the analysis does not attribute any costs or benefits to the implementation of the MEPS for these three product categories, this Amendment will prevent future dumping of low-efficiency product models into the Canadian market.

Another benefit of the Amendment is related to the verified energy efficiency performance data of energy-using products that is collected by Natural Resources Canada through its compliance program. The data for new energy-using products will be posted to the Natural Resources Canada website ^{footnote 22} and will provide readily accessible information to consumers or businesses. Consumers benefit from this information since it provides them with detailed information to make informed purchase decisions. Utilities and retailers also benefit from this information, since it supports programming to promote the sale of high- efficiency products.

"One-for-One" Rule

It is estimated that the Amendment would generate an increase in administrative burden of $72,161 created by the introduction of regulatory requirements for new product categories. Dealers of these new products will be required to learn about the requirements of the Regulations and submit information before and at the time of importation in accordance with subsection 5(1) of the Act.

The Amendment is considered an "IN" under the "One-for-One" Rule. It would result in an increase of $72,161 in annualized average administrative costs to industry.

Assumptions underlying administrative burden estimates

Familiarization with the Amendment

Familiarization with new information obligations is a one-time administrative function that applies to manufacturers of regulated products. The task involves reviewing and understanding the new requirements of the Amendment, as well as the energy efficiency reporting form that Natural Resources Canada provides to each stakeholder. This one-time event is estimated to take two hours and to be undertaken by someone with a technical background who receives a wage rate of approximately $42. The number of stakeholders impacted is estimated as 710, which represents the sum of total companies identified under the following three Harmonized system (HS) codes:

• 332410 — Power Boiler and Heat Exchanger Manufacturing
• 333413 — Industrial and Commercial Fan and Blower and Air Purification Equipment Manufacturing
• 333416 — Heating Equipment and Commercial Refrigeration Equipment Manufacturing

The use of these codes likely overestimates the total number of companies that would be directly impacted by the Amendment. Natural Resources Canada does not have access to more detailed information that would allow for a more precise stakeholder estimate and decided, for the purpose of this calculation, to apply estimates of incremental burden to all 710 stakeholders.

Submitting import reports

The Amendment would introduce import reporting requirements for new energy-using products. Importers of these new products will carry an incremental ongoing administrative burden, as they will be required to provide information for 21 new 10-digit HS codes at the time of importation. To estimate the frequency and time associated with this administrative action, Natural Resources Canada analyzed Canada Border Services Agency import data from four recent years (2012–2015) to establish number of importers, average number of transactions per year and the average number of transactions per year per HS code. Based on this analysis, it is estimated that 1 984 importers will be affected by this incremental activity, which will occur 85 times per year. It is assumed that clerical staff with a wage rate of approximately $30 will undertake this task.

To estimate the time required per event, Natural Resources Canada relied upon a U.S. Department of Energy assessment of the time it takes to populate a similar report in a similar context: information is readily available and must simply be entered into the proper place in the report. The U.S. Department of Energy estimated that it took approximately 22 seconds per data element to populate this report. To account for minor differences between the complexities of the data elements in Canada's import reports and those that were the subject of the U.S. Department of Energy analysis, Natural Resources Canada estimates that it would take 36 seconds per data element, with each report requiring two data elements. These activities would be undertaken by administrative support with a wage rate of approximately $29.

Submitting efficiency reports

The Amendment would introduce an administrative burden associated with the reporting of energy performance information before an energy-using product is imported. The added burden would apply to product models that have reporting elements that differ from reporting requirements already in place in other jurisdictions.

The data used to calculate incremental administrative burden costs was obtained from a variety of sources, such as internal compliance databases, numerous product market studies, Statistics Canada, the Canada Border Services Agency, the Canadian Federation of Independent Business, and the U.S. Department of Energy. Analysis of the data indicates that 8% of shipments may be impacted by new reporting requirements, which require inputting data into fields of the energy efficiency reports. This percentage was applied to the total number of estimated manufacturers (710) to arrive at 57 total stakeholders that would be affected by this incremental burden. The time required to input the data has been estimated to take 36 seconds per data element. These activities would be undertaken by administrative support staff with a wage rate of approximately $29.

Consultations

No comments were received from stakeholders on the impacts of the Amendment on administrative burden. In general, stakeholders are supportive of the approach to align reporting requirements with other jurisdictions when feasible.

Small business lens

The small business lens applies to the Amendment since it would require that data and information be reported for the first time for eight product categories by close to 1 400 small importers. The reporting requirements are minor and represent the minimum amount of information required to assess that an individual product model meets the prescribed standards; however, the Amendment is estimated to increase the administrative costs for small importers by $50,513 in annualized average administrative costs, or approximately $36 per business. These costs represent the portion of the total administrative burden calculated for the "One-for-One" Rule that are assumed by importers.

Natural Resources Canada held discussions with an organization representing the interests of small, independent businesses to better understand the potential impacts of the amendments to the Regulations. The organization indicated that the main challenge for these companies results from a lack of awareness of the new requirements and when they come into force. To mitigate this challenge, Natural Resources Canada intends to undertake supplemental outreach activities specific to the Amendment to educate importers and mitigate the risk that goods are refused entry into Canada due to the unintentional omission of data or information.

Natural Resources Canada estimates that the Amendment would also impact 10 small manufacturers of affected products. Six of these companies are manufacturers of heat/energy recovery ventilators, for which the Amendment would introduce reporting for the first time. The reporting requirements are minor and represent the minimum amount of information required to achieve the objective of ensuring that a standardized method is used to quantify the energy performance of these products.

One small manufacturer of gas fireplaces was identified and an assessment of its product offerings indicates that they already comply with the proposed requirements. Three small manufacturers of gas-fired boilers were also identified and engaged in consultations to develop the Amendment. For one company, all of their 24 current model offerings would comply with the proposed requirements. For another, almost half of their 684 current model offerings would comply. For the third, neither of its 2 current product offerings would comply with the proposed MEPS that would come into force in 2023. None of these small manufacturers identified any compliance issues associated with the size of their company during pre- consultations; however, Natural Resources Canada will continue discussions with these companies and welcomes comments from them or any other small businesses that could be affected.

Consultation

Pre-consultation summary

The Amendment introduces or updates MEPS, testing standards and/or reporting requirements for 12 product categories and supports the market transformation strategies released by federal, provincial and territorial energy ministers in 2017. Stakeholders ^{footnote 23} were informed of the changes being considered in the Amendment and were provided opportunities to comment at several points since 2016. These consultations evolved with time, and the content of the Amendment was modified accordingly. The following outlines the key materials used to communicate details to the stakeholder community:

• February 2016: Natural Resources Canada released a discussion paper to seek stakeholder views and feedback on the list of products being considered for the next two amendments.
• March 2017: Natural Resources Canada published a notice of intent in the Canada Gazette, Part I, to inform stakeholders that it was initiating the development of the Amendment and also updated the Forward Regulatory Plans to communicate the product categories being considered for inclusion in the Amendment as well as the overarching policy direction being taken.
• 2017–2018: Detailed product-specific technical bulletins were published. A series of product-specific webinars and workshops were held with affected stakeholders to discuss the content of these bulletins. For complex products, ^{footnote 24} the webinars included details on the cost and benefit analysis. In many cases, the industry questioned the assumptions on specific scenarios that could impact the costs and benefits, and Natural Resources Canada made changes when appropriate. The best data available was used and any new data provided will be taken into consideration. The complete analysis is available in the cost-benefit document.

All the documents mentioned above were distributed to stakeholders via targeted emails. In turn, many of these individuals and organizations forwarded the information to provide access to a larger audience of stakeholders.

Natural Resources Canada also has ongoing activities that provide additional opportunities to gather feedback from stakeholders and to inform them:

• Energy Efficiency Regulations web page of the Natural Resources Canada website.
• Ongoing bilateral discussions: Natural Resources Canada is in close contact with the industry through major industry associations to discuss changes and updates to the products.
• National Standards System: The relevant Canadian Standards Association steering committees, technical committees and technical subcommittees, comprising stakeholders (including manufacturers, industry associations and other interested groups), provided input, and reviewed and voted upon changes to the testing standards.
• Market studies to support decision making were conducted by third-party consultants who worked with manufacturers and industry associations to gather information.

Product-specific comments received during pre-consultation

Stakeholders were informed of the content of the Amendment through the activities outlined above, and they were generally supportive of the approach. The following section elaborates only where there were substantive discussions, describing how those discussions were taken into account in the development of the Amendment.

Gas and oil-fired boilers (commercial)

Natural Resources Canada pre-consulted on referencing the industry test procedure, AHRI 1500-2015, in the Amendment. Five manufacturers and three industry associations supported this inclusion but recommended adopting the U.S. Department of Energy revisions to AHRI 1500-2015 as well. Natural Resources Canada agrees, and has directly incorporated the U.S. testing standard. ^{footnote 25}

The U.S. Department of Energy prepublished a final rule that has not become law. Five manufacturers and three industry associations advocated delaying any future alignment until the rule becomes law. Natural Resources Canada disagrees with this approach, as space heating equipment has been specifically identified in the Pan-Canadian Framework on Clean Growth and Climate Change as an area in which standards should be set to the highest level of efficiency that is economically and technically achievable. This includes a short-term goal to have all fuel-burning technologies for primary space heating for sale in Canada meet condensing technology performance levels by 2025.

One manufacturer, one program design and delivery group, two engineering design/management firms, and three advocacy groups supported the proposed levels. Five of these stakeholders advocated moving the period of manufacture earlier by one year to better support Canada's climate change goals. One commenter stated that Canada's higher heat loads elevate the importance of efficient space heating equipment relative to the United States. One manufacturer indicated that given the long service life of boilers, MEPS should be raised to limit inefficient products being in place well into the future. Natural Resources Canada agrees that the proposed space heating standards are appropriate given that space heating is the largest energy use in the buildings sector but disagrees with accelerating the period of manufacture, so industry has sufficient time to adapt.

Three manufacturers recommended applying the proposed MEPS for oil-fired boilers intended for hot water systems to new construction only, and applying the current U.S. standards to boilers marked for use in replacement installations. They expressed concerns that the proposed MEPS can be problematic in certain replacement scenarios and that the solutions could be very costly. While Natural Resources Canada acknowledges the existence of problematic replacement scenarios, technologically feasible options exist to address these issues. Natural Resources Canada is proposing to maintain harmonization with the U.S. Department of Energy's prepublished final rule and welcomes the submission of detailed information regarding problematic installations and their associated impacts and costs.

Five manufacturers, three associations, and one utility recommended applying the proposed MEPS for gas boilers intended for hot water systems to new construction only, and applying the current U.S. standards to boilers marked for use in replacement installations. These stakeholders felt that the proposed MEPS would "orphan" co-vented products such as water heaters, resulting in oversized chimneys; potentially damage buildings due to ice buildup; and encourage building owners to repair rather than replace older, potentially unsafe boilers. Natural Resources Canada acknowledges the existence of installation scenarios that could lead to challenges such as those raised by stakeholders. However, information collected to inform this proposal suggests that, given the large number of condensing boilers currently being installed in replacement scenarios in Canada, the industry is well equipped to perform non-condensing to condensing vent conversions. Proper venting and condensate drain installations are key to avoiding issues. For other more complex installation issues, technologically feasible options exist to address these issues. Natural Resources Canada is proposing to maintain condensing technology levels for gas hot water boilers and welcomes the submission of information and data from interested parties regarding the potential impacts of implementing these levels.

Five manufacturers and three associations stated that the proposed standards for gas boilers intended for hot water systems will not deliver the anticipated energy savings when a unit is installed into an existing high temperature distribution system. Natural Resources Canada agrees and the cost-benefit analysis accounted for reduced performance in these scenarios. One manufacturer, one program design and delivery group, two engineering design/management firms, and three advocacy groups commented that high efficiency boilers would still outperform lower efficiency boilers, regardless of operating parameters.

Four manufacturers, three associations, and one utility commented that the service life attributed to condensing boilers in the cost-benefit analysis was unrealistically long. The utility recommended a service life of 20 years as being appropriate. Natural Resources Canada is proposing to maintain the service life at 24 years, based on the 2016 U.S. Department of Energy Technical Support Document for commercial packaged boilers, ^{footnote 26} unless better data is identified.

Commercial water heaters

Three industry associations and two manufacturers suggested a three-year lead time for all standards that are not aligned with current standards in the United States. Market data suggests that all manufacturers have products available at the higher standards. Natural Resources Canada is therefore not considering a change to the date.

One manufacturer requested clarification regarding the use of measured and nominal volume in the Amendment. Industry recommended following the U.S. Department of Energy compliance strategy on tolerance limits for measured volume. Natural Resources Canada agrees and will provide guidance on this matter in the Guide to the Regulations.

Commercial electric water heaters

Three industry associations commented that the MEPS equation for commercial electric water heaters needed to be more precise in its conversion from imperial to metric. Natural Resources Canada agrees and modified the equation.

Residential-duty commercial gas-fired storage water heaters

Natural Resources Canada pre-consulted on MEPS levels for replacement units that went beyond the current standards in the United States. Three industry associations commented that this level was too stringent. Natural Resources Canada modified the proposal to align with U.S. levels for replacement units only. Natural Resources Canada has pre-consulted with industry on how units will be marked for replacement in retrofit applications only and would continue to provide additional guidance, as needed.

Three industry associations and one manufacturer commented that the MEPS proposed for units, other than those marked for replacement only, should align with the U.S. Department of Energy's Notice of Proposed Rulemaking, which is more stringent than the level initially proposed in the technical bulletin. Natural Resources Canada agrees and modified the MEPS equation.

Three industry associations and one manufacturer requested that the definition of residential duty commercial water heaters be more detailed and harmonize with the U.S. definition. Natural Resources Canada agrees and modified the definition.

Commercial gas-fired storage water heaters

Three industry associations and two manufacturers supported the proposed thermal efficiency MEPS but recommended aligning standby loss MEPS with the ENERGY STAR performance levels, rather than a standby loss MEPS that is aligned with a more stringent U.S. Department of Energy's Notice of Proposed Rulemaking. They argue that very few production models can meet this level of standby loss. Natural Resources Canada's market data suggests that over 30% of the market is already at this level; therefore, the Department does not agree that it is necessary to lower the standard.

Three industry associations and two manufacturers requested guidance on Natural Resources Canada's compliance policy for the marking of units for replacement use only. Natural Resources Canada provided clarification on the language and expectations about the marking provision.

One manufacturer raised a concern regarding vent safety issues for gas-fired products at the proposed MEPS level. The manufacturer recommends lowering the MEPS from 82% to 80% thermal efficiency to reduce the risk of condensation corrosion in the venting system. The Canadian Standards Association standard, CSA B149 – Natural gas and propane installation code, suggests that there is no difference in the vent category specified for products with thermal efficiencies of 80% and 82%; therefore, Natural Resources Canada believes that the risk of vent corrosion is low.

Commercial gas-fired instantaneous water heaters

Three industry associations and one manufacturer recommended changing the proposed MEPS from 94% to 90%. Natural Resources Canada disagrees with this recommendation given that market data suggests that the condensing products on the market are predominantly at the proposed MEPS.

Three industry associations and one manufacturer requested that the definition of commercial gas-fired instantaneous water heaters be aligned with that of the United States. Natural Resources Canada agrees and modified the definition.

One manufacturer expressed concern over the exclusion of commercial storage-type instantaneous water heaters from the scope. Market data suggests that this type of product has very limited market share in Canada; therefore, Natural Resources Canada did not include it.

Gas fireplaces

One industry association requested that the Amendment apply to products manufactured three years after final publication given that the changes would take time to implement. One manufacturer supported the timetable proposed. Natural Resources Canada notes that products commonly found in the marketplace already meet the proposed changes. Further, some of these regulatory provisions will apply in British Columbia on January 1, 2019.

Natural Resources Canada had initially proposed mandatory labelling for gas fireplaces but has removed it for this Amendment. The Department will work with industry to develop a way to make gas fireplace information more meaningful to consumers. One manufacturer commented that testing and rating of decorative gas fireplaces should not be required as there are no MEPS for these products. The manufacturer is concerned that this will confuse consumers, and increase costs and complexity. Natural Resources Canada disagrees given that, under current regulations, decorative gas fireplaces are tested and their efficiency labelled under a voluntary program.

Natural Resources Canada pre-consulted on limiting the type of ignition system and how long a pilot light would remain lit after main burner shut off (seven days for heating gas fireplaces and one day for decorative gas fireplaces). Some stakeholders commented that having different pilot light limits would result in different control valves and that would be costly. Natural Resources Canada agrees that both units would be subject to the same limit and changed it to seven days to be consistent with the CSA test procedure.

One manufacturer advocated the benefits of standing pilots in cold climates and recommended allowing the ignition system to be switched over to standing pilot during the colder months. Natural Resources Canada disagrees with this perspective and the Amendment is in line with a similar proposal to change gas fireplace safety standards.

Natural Resources Canada had initially proposed a 4-hour static operation limit for the main burner on decorative gas fireplaces. One association and one manufacturer requested that this limit be changed to 24 hours to accommodate commercial establishments such as hotels. One manufacturer supported the proposed 4-hour static operation limit. Natural Resources Canada agrees that 24 hours is more realistic, particularly in commercial establishments.

Some stakeholders recommended that the prescriptive nature of some of the regulatory provisions might disallow future technology that achieves the same energy efficiency goals. Natural Resources Canada agrees and removed the prescriptive nature of the ignition system requirements, in favour of performance-based requirements.

One manufacturer and one association requested that the fireplace efficiency testing method CSA P.4.1-15 be fundamentally revised to better reflect real-life usage patterns. In the last two revisions of the CSA test procedure, Natural Resources Canada supported revisions to the standard to better reflect usage. Until more data related to gas fireplace usage in Canada is available, Natural Resources Canada does not support updating the test method to reflect real-life usage patterns.

Gas furnaces

One industry association and one manufacturer opposed raising the MEPS to 95% annual fuel utilization efficiency (AFUE) and proposed 92% AFUE to align with existing standards in some provinces. The association believed that the higher costs of products meeting the higher standard would reduce consumer choice, encourage consumers to repair rather than replace their inefficient furnaces or cause consumers to switch to lower efficiency alternatives. The market study indicates that there is considerable choice for products that meet the proposed MEPS. Canadian manufacturers have most of their models meeting the proposed MEPS and are not unduly impacted. The cost-benefit analysis has shown that this proposal is economically favourable for consumers despite the initial increase in the cost of a compliant furnace. Natural Resources Canada disagrees that consumers will be driven to fuel switch or to make irrational repair decisions due to the incremental cost increase.

One industry association, two manufacturers, and one distributor commented that there is a distinction between new factory-built single section homes mounted on a permanent chassis and factory-built modular homes transported on a truck bed. They requested the former be considered mobile homes, with furnaces intended for installation in these dwellings in a separate product category with a distinct minimum energy efficiency standard. Natural Resources Canada understands that mobile home furnaces in the United States are a separate category, but products referred to as mobile homes in the United States are no longer manufactured in Canada. Factory-built single section homes mounted on a permanent chassis are considered manufactured homes in Canada, and new manufactured housing in respect of gas furnaces do not need special exemptions. Therefore, Natural Resources Canada disagrees that a separate category for mobile home furnaces is required for new mobile homes.

In respect of gas furnaces for existing mobile homes, one industry association, two manufacturers, and one distributor were concerned about the cost increase of replacing a mid-efficiency furnace with a condensing furnace, causing economic hardship to existing mobile home owners. Further, one manufacturer was concerned about condensing units not being able to fit in certain replacement scenarios for mobile homes. Natural Resources Canada disagrees with this, as drop-in replacement furnaces for mobile homes that are compliant with the proposal are available.

Natural Resources Canada pre-consulted on changing the exemption given to mobile homes to only recreational vehicles and park model trailers. Discussions with stakeholders indicated that mid-efficiency furnaces, currently exempted for mobile homes, were being installed in relocatable buildings. The proposal would have required furnaces for these relocatable buildings to meet the proposed MEPS. Stakeholders commented that these relocatable buildings, typically used in work camps, have had issues with condensate freezing, resulting in damaged furnaces when these buildings are relocated or put out of service during the heating season. In response to this comment, Natural Resources Canada has created a new, distinct category of furnaces for relocatable buildings with MEPS of 80% AFUE. In addition, these furnaces must be marked for the intended use, and must comply with the fan energy rating requirement for non-condensing furnaces.

Heat/energy recovery ventilators

Natural Resources Canada had pre-consulted on reporting fan efficacy at 0 °C, sensible heat recovery efficiency at 0 °C and −25 °C and the rated net supply airflow. Three manufacturers and one consultant commented that the sensible heat recovery efficiency is directly linked to the net supply airflow; thus, reporting them separately would serve no useful purpose. Natural Resources Canada agrees and modified the proposal to link the efficiency requirements with the associated airflow.

Three manufacturers and one industry association mentioned that there is no certification body for this product; therefore, they would not be able to comply with the proposed requirements. Natural Resources Canada believes that this situation is inherent to all unregulated products when they are introduced for the first time and that the issue will be resolved by the time the Amendment comes into force.

Natural Resources Canada pre-consulted on a scope limit for airflow capacity at 236 L/s. One manufacturer and one industry association requested that the scope be limited to an airflow capacity that is more commensurate with residential use. After reviewing the Home Ventilating Institute qualified product listings, Natural Resources Canada agrees and modified the definition to limit the scope to 142 L/s.

Two manufacturers and one industry association asked to place limits on the requirement to report sensible heat recovery efficiency at −25 °C, given that milder regions of Canada would not require products to operate at low outdoor temperatures. Natural Resources Canada agrees and will not require testing and reporting at −25 °C for products that are marked for installation in regions with mild winters.

One manufacturer recommended that the Amendment include mandatory product labelling and documentation of energy performance and airflow curves. Natural Resources Canada sees some merit in this recommendation for consumers, but it would unduly increase the reporting burden and compliance costs for manufacturers.

Natural Resources Canada pre-consulted on using the product's maximum rated airflow to define the product scope. One manufacturer and one consultant commented that maximum rated airflow should not be used to limit airflow capacity, as it has little correlation with the rated airflow of the unit that is chosen by the manufacturer for energy performance ratings. Energy performance tests are performed at lower than the product's maximum setting to obtain the rated net supply airflow specified by the manufacturer. Natural Resources Canada agrees and modified the definition so that scope is limited by rated net supply airflow.

One association and one consultant requested that the Passive House Institute testing standard be designated as an acceptable alternative to the proposed testing standard and that the Institute be designated an acceptable alternative to an accredited certification body under the Standards Council of Canada without making application for such an accreditation. Natural Resources Canada found that the Passive House Institute testing standard is not aligned with the proposed testing standard and, therefore, is not an acceptable alternative. Furthermore, the Regulations require that all certification bodies be accredited under the Standards Council of Canada.

Household boilers

Three industry associations and one manufacturer supported standards for the boiler categories that are aligned with the U.S. standards. ^{footnote 27}

Three industry associations and one manufacturer stated that the higher MEPS for gas boilers intended for hot water systems would require new venting systems to be installed in replacement scenarios, increasing costs for consumers and potentially leading to a loss of heat during a winter emergency repair. Natural Resources Canada disagrees with emergency repairs being widely problematic. The experience with condensing gas furnaces has shown that industry has adapted to solve difficult residential venting situations in a timely manner; Natural Resources Canada expects the same will occur with condensing gas hot water boilers. Natural Resources Canada agrees that some consumers will experience increased costs if the venting system must be replaced, but this effect is included in the cost-benefit analysis.

Three industry associations and one manufacturer stated that the replacement of a boiler that is co-vented with a water heater would result in additional costs to consumers to rework the water heater venting. In addition, some rework of the hydronic system may be required to accommodate a condensing boiler, adding to the installation costs. Manufacturers have commented that the installed costs of condensing boilers are in reality higher than the costs used in Natural Resources Canada's economic analysis, with one manufacturer providing supporting data. Natural Resources Canada performed the analysis based on the best data available.

Two manufacturers stated that the proposed standards for gas boilers intended for hot water systems will not deliver the anticipated energy savings when a unit is installed into an existing high temperature distribution system. The market analysis undertaken by Natural Resources Canada shows energy savings even in existing high temperature distribution systems. The cost-benefit analysis accounted for reduced performance in these scenarios.

Because of the potential increased costs to consumers and the possible reduction in energy performance noted above, most commenters advocated for a lower efficiency standard of 84% AFUE for gas boilers (hot water) intended for replacement installations, while maintaining the proposed condensing standard for new construction only. Market data shows that consumers are choosing condensing gas hot water boilers, with 78% of shipments in this category already meeting the proposed MEPS, and that the majority of these are used as replacement boilers. As a result, Natural Resources Canada disagrees with the need to lower performance standards for the replacement market.

Household instantaneous gas-fired water heaters

Two industry associations and two manufacturers requested that the definition of this product be aligned with the U.S. definition, including limiting scope to input rates less than 200 000 Btu/h. Natural Resources Canada agrees and modified the definition.

One manufacturer recommended setting lower MEPS for this product so that homeowners with existing instantaneous water heaters continue to have a lower cost option. Natural Resources Canada's economic analysis suggests that the incremental cost of moving to the higher standard is negligible.

Regulatory cooperation

The Amendment is the result of significant cooperation — both domestically and with the United States — to contribute to the achievement of domestic goals for the reduction of GHG emissions and energy consumption.

Domestically, collaborative efforts to reduce GHG emissions from Canada's building sector has been guided by two federal, provincial and territorial forums.

Canada's First Ministers Conference — a meeting of the provincial and territorial premiers and the prime minister. These events are held at the call of the prime minister and, since 1950, have typically been held annually. In 2016, First Ministers adopted the Pan-Canadian Framework on Clean Growth and Climate Change, which included a commitment that the federal government would set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable.

Canada's Energy and Mines Ministers Conference — an annual gathering of federal, provincial and territorial ministers responsible for energy and mining portfolios. At these meetings, ministers discuss shared priorities for collaborative action to advance energy and mining development across the country. In 2016, the ministers released a framework that defined how federal, provincial and territorial governments would achieve greater harmonization on energy efficiency standards and encourage market transformation through increased collaboration. In 2017, the ministers released market transformation strategies for energy-using equipment in the building sector and established short-, medium- and long-term aspirational goals for windows, space heating and water heating systems in the building sector. The ministers agreed to work towards a goal that, by 2025, all fuel-burning technologies for primary space heating and water heating for sale in Canada will meet an energy performance of at least 90% (condensing technology level).

Given that the Amendment has been informed by collaborative work with provincial and territorial governments, it would contribute to the objective of the Canadian Free Trade Agreement by reducing and eliminating, to the extent possible, barriers to the movement of goods within Canada.

Internationally, Canada has benefited from a long- standing cooperative relationship with U.S. Department of Energy regulators of energy efficiency. Federally, this relationship has been formalized under the Canada–United States Regulatory Cooperation Council and the 2015 signing of a Regulatory Partnership Statement. ^{footnote 28} Through binational cooperation, both countries have worked to reduce and eliminate instances of unnecessary regulatory differences and to develop coordinated approaches to achieving common policy objectives.

The Amendment is consistent with the objectives of the Memorandum of Understanding between the Treasury Board of Canada Secretariat and the United States Office of Information and Regulatory Affairs Regarding the Canada–United States Regulatory Cooperation Council signed in June 2018. The Amendment seeks to foster alignment of federal regulations where feasible and appropriate, primarily through the use of testing standards already used by other jurisdictions to assess energy-using product compliance with the MEPS.

Rationale

The Amendment will benefit Canadians by reducing GHG emissions and energy consumption in homes and buildings. Homeowners and businesses will benefit from reduced energy costs associated with the use of more efficient technologies.

According to the International Energy Agency, policies and programs that address energy efficiency are the most cost-effective way to lower GHG emissions and could complement carbon pricing schemes as an overall strategy to effectively achieve climate change policy objectives. ^{footnote 29}

In the absence of a regulatory approach, a market for low-efficiency products would continue. Consumers who purchase such products could be motivated by lower purchase costs even though they would pay higher operational costs over the life of the product. The analysis of the Amendment has shown that more stringent MEPS for all products would generate reductions in GHG emissions and energy consumption. The associated energy savings would generate net monetary benefits for Canadian consumers. The analysis has shown that the overall costs of technologies that will be required to bring low-efficiency products into compliance with the MEPS proposed in this Amendment are outweighed by the overall benefits.

The Amendment is supported by provincial and territorial governments as its development was influenced by work conducted under the framework released by the Energy and Mines Ministers' Conference in 2016 to achieve greater harmonization on U.S. energy efficiency standards with those of Canada and to encourage market transformation through increased collaboration. It also contributes to the federal commitment made under the Pan-Canadian Framework on Clean Growth and Climate Change to set new standards for heating equipment and other key technologies to the highest level of efficiency that is economically and technically achievable and the aspirational goal released by federal, provincial and territorial energy ministers that, by 2025, all fuel-burning technologies for primary space heating for sale in Canada will meet MEPS of at least 90% (condensing technology level).

The Amendment has been designed to contribute to this commitment and goal while minimizing the burden on the affected industries, primarily through the use of existing testing standards used by the industry or required by other jurisdictions to assess conformity with the proposed MEPS.

Prescribed MEPS are a proven cost-effective approach to achieving reductions in GHG emissions and energy consumption. The Energy Efficiency Regulations were first introduced in 1995 and, including the Regulations, have been amended 14 times to increase the stringency of existing MEPS and introduce MEPS for new energy-using products. Through the use of third-party verification and regular post-market compliance activities, a high compliance rate with regulated requirements has been observed. This provides confidence that estimated outcomes are being achieved and that Canadians are experiencing the associated benefits.

Implementation, enforcement and service standards

The Amendment will come into force six months after publication in the Canada Gazette, Part II. The requirements will apply to the prescribed energy-using products based on their period of manufacture, date of import or date of interprovincial shipment.

The compliance and enforcement procedures already in place for all products prescribed under the Regulations will continue to be used following the coming into force of this Amendment. The main features of this system are explained below.

Verification marking and energy efficiency reporting

For products prescribed under the Regulations, Natural Resources Canada employs a third-party verification system using the services of certification bodies accredited by the Standards Council of Canada. Verified energy performance data is submitted to Natural Resources Canada by the dealer in an energy efficiency report as specified in the Regulations. This is required once for each product model before first importation or interprovincial shipment.

Import reporting and monitoring

Natural Resources Canada procedures already in place for the collection of information for commercial imports of prescribed products will apply to products affected by the Regulations. These procedures involve crosschecking required import data received from customs release documents with the energy efficiency reports that dealers have submitted to Natural Resources Canada. This crosschecking ensures that the compliance of prescribed products imported into Canada can be verified.

The Regulations will continue to require dealers of prescribed products to provide the information needed for customs monitoring.

Direct fieldwork: market survey and product testing

In addition to ongoing compliance and marketplace monitoring activities, Natural Resources Canada surveys and tests products in the context of monitoring compliance outcomes with product-specific compliance audits. Depending on the product, in-store audits and/or testing of products are also conducted.

Natural Resources Canada also conducts product testing on a complaint-driven basis. The market is highly competitive and suppliers are cognizant of performance claims made by their competitors. Challenge procedures by which performance claims can be questioned exist in all verification programs.

Performance measurement and evaluation

The desired outcomes of the Regulations are presented in the following table along with the information that will be tracked to measure performance.

Table 4: Measuring performance of the Regulations

Outcome	Indicators	Information to Measure Performance
GHG emissions are reduced to contribute to Canada's goal to reduce GHG emissions by at least 30% below 2005 levels by 2030.	Percentage of product models that meet MEPS	Energy efficiency reports Import reports Market data (shipments, trends) Lab testing Emission factors Energy prices
Consumers save money by purchasing higher efficiency product models that have lower costs over their lifetime.
Energy use for space and water heating decreases per home and per unit of commercial building floor space.
Businesses using regulated energy-using products save money that can lead to increased productivity and competitiveness.

Performance will be monitored through a combination of product-specific compliance reporting, supported by third-party verification of energy efficiency performance, and ongoing collection of market data to assess broader trends affecting outcomes.

Information collected on the energy efficiency performance of regulated products indicates both GHG emission impacts and consumer savings, since both are calculated as a function of changes in the amount of energy consumed by these products. ^{footnote 30}

A high compliance rate with the Regulations will be achieved through support from manufacturers, third-party verification, customs monitoring, co-operation with regulating provinces, communication activities, market surveys, and product testing, as required.

The standards contained in the Amendment are being implemented under the federal energy efficiency equipment standards and labelling program. Detailed accounts of progress towards achieving the objectives of this initiative will be found in departmental business plans, reports on plans and priorities, and the Report to Parliament under the Energy Efficiency Act.

Contact

Jamie Hulan
Director
Equipment Division
Office of Energy Efficiency
Natural Resources Canada
930 Carling Avenue, Building 3, 1st Floor
Ottawa, Ontario
K1A 0Y3
Telephone: 613-996-4359
Fax: 613-947-5286
Email: nrcan.equipment-equipement.rncan@canada.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to sections 20 ^{footnote a} and 25 of the Energy Efficiency Act ^{footnote b}, proposes to make the annexed Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15).

Interested persons may make representations concerning the proposed Regulations within 70 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Jamie Hulan, Director, Equipment Division, Office of Energy Efficiency, Department of Natural Resources, 930 Carling Avenue (CEF, Building 3, Observatory Crescent), 1st Floor, Room 136-C, Ottawa, Ontario K1A 0Y3 (tel.: 613-996-4359; email: nrcan.equipment- equipement.rncan@canada.ca).

Ottawa, October 4, 2018

Jurica Čapkun
Assistant Clerk of the Privy Council

Regulations Amending the Energy Efficiency Regulations, 2016 (Amendment 15)

Amendments

1 The heading of Division 4 of Part 2 of the Energy Efficiency Regulations, 2016 ^{footnote 31} is replaced by the following:

Furnaces, Fireplaces, Unit Heaters and Recovery Ventilators

2 The definition FER in section 256.1 of the Regulations is replaced by the following:

FER means, in respect of a gas furnace, an oil-fired furnace or an electric furnace, the fan energy rating, which is the annual electrical energy consumption of the furnace fan normalized by annual fan operating hours and the product's maximum airflow (Q_max). (FER)

3 (1) The definitions CSA 2.3 and gas furnace in section 257 of the Regulations are replaced by the following:

CSA 2.3 means the CSA standard ANSI Z21.47-2016/CSA 2.3-2016 entitled Gas-Fired Central Furnaces. (CSA 2.3)

gas furnace means an automatic operating gas-fired central forced air furnace that uses propane or natural gas and has an input rate of not more than 117.23 kW (400,000 Btu/h). It does not include a furnace for a park model trailer or for a recreational vehicle. (générateur d'air chaud à gaz)

(2) Section 257 of the Regulations is amended by adding the following in alphabetical order:

gas furnace for relocatable buildings means a gas furnace that is intended for use in a temporary modular building that can be relocated from one site to another and is marked for use only in relocatable buildings. (générateur d'air chaud à gaz pour bâtiments relocalisables)

4 Subsection 258(2) of the Regulations is replaced by the following:

Limit

(2) However, for the purposes of sections 4, 5 and 259, a gas furnace is not considered to be an energy-using product if it was manufactured before February 3, 1995 or is a gas furnace for relocatable buildings that is manufactured before July 3, 2019.

5 (1) The portion of item 2.1 of the table to section 259 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
2.1	Gas furnaces, other than gas furnaces for relocatable buildings, that have an input rate of ≤ 65.92 kW (225,000 Btu/h), use single-phase electric current and do not have an integrated cooling component

(2) The portion of item 2.1 of the table to section 259 of the Regulations in column 3 is replaced by the following:

Item	Column 3 Energy Efficiency Standard
2.1	Annual fuel utilization efficiency ≥ 95% FER ≤ FER for product class “Non-Weatherized, Condensing Gas Furnace Fan (NWG-C)”, set out in 10 C.F.R. §430.32(y)

(3) The portion of item 5.1 of the table to section 259 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
5.1	Gas furnaces, other than gas furnaces for relocatable buildings, that are through-the-wall, have an input rate of ≤ 65.92 kW (225,000 Btu/h), use single-phase electric current and have an integrated cooling component

(4) The portion of item 5.1 of the table to section 259 of the Regulations in column 3 is replaced by the following:

1Item	Column 3 Energy Efficiency Standard
5.1	Annual fuel utilization efficiency ≥ 95% FER ≤ FER for product class “Non-Weatherized, Condensing Gas Furnace Fan (NWG-C)”, set out in 10 C.F.R. §430.32(y)

(5) The table to section 259 of the Regulations is amended by adding the following in numerical order:

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
8	Gas furnaces for relocatable buildings	CSA P.2 for annual fuel utilization efficiency 10 C.F.R. Appendix AA, for fan energy rating	Annual fuel utilization efficiency ≥ 80% FER ≤ FER for product class “Non-Weatherized, Non-Condensing Gas Furnace Fan (NWG-NC)”, set out in 10 C.F.R. §430.32(y)	On or after July 3, 2019

6 The portion of item 2.1 of the table to section 260 of the Regulations in column 3 is amended by striking out "and" at the end of paragraph (f), by adding "and" at the end of paragraph (g) and by adding the following after paragraph (g):

Item	Column 3 Information
2.1	(h) information that indicates whether product is gas furnace for relocatable buildings.

7 (1) The definition gas fireplace in section 265 of the Regulations is replaced by the following:

gas fireplace means a decorative gas fireplace or a heating gas fireplace. (foyer à gaz)

(2) Section 265 of the Regulations is amended by adding the following in alphabetical order:

automatic shut-off device means a device that automatically extinguishes the main gas burner flame if, in a 24-hour period,

• (a) a person has not used the fireplace controls to adjust the flame height or appearance; or
• (b) the fireplace has not received a signal indicating the presence of occupants in the room in which it is installed. (dispositif d'arrêt automatique)

decorative gas fireplace means a vented fireplace that is fuelled by natural gas or propane, is marked for decorative use only and is not equipped with a thermostat or intended for use as a heater. (foyer à gaz décoratif)

heating gas fireplace means a vented fireplace that is fuelled by natural gas or propane and is not a decorative gas fireplace. (foyer à gaz de chauffage)

8 Subsection 266(2) of the Regulations is replaced by the following:

Limits

(2) However, a gas fireplace is not considered to be an energy-using product

• (a) for the purposes of sections 4, 5 and 7, unless it is manufactured on or after June 1, 2003; or
• (b) for the purpose of section 266.1, unless it is manufactured on or after January 1, 2020.

9 The Regulations are amended by adding the following after section 266:

Energy efficiency standards

266.1 (1) The energy efficiency standards set out in column 3 of the table to this section apply to gas fireplaces described in column 1 that are manufactured during the periods set out in column 4.

Testing standard

(2) A gas fireplace complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to a gas fireplace as defined in section 265.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Decorative gas fireplaces	N\A	The product must be capable of (a) automatically extinguishing pilot flame when main gas burner flame is established; (b) automatically extinguishing pilot flame when main gas burner flame is extinguished; or (c) in absence of any automatic or manual adjustment to main gas burner flame height or appearance, preventing pilot flame from burning continuously for more than seven days. Must be equipped with automatic shut-off device and, unless it is marked for replacement use only, have a direct vent configuration.	On or after January 1, 2020
2	Heating gas fireplaces	CSA P.4.1-15 for fireplace efficiency	Fireplace efficiency ≥ 50% The product must be capable of (a) automatically extinguishing pilot flame when main gas burner flame is established; (b) automatically extinguishing pilot flame when main gas burner flame is extinguished; or (c) in absence of any automatic or manual adjustment to main gas burner flame height or appearance, preventing pilot flame from burning continuously for more than seven days.	On or after January 1, 2020

10 (1) Paragraph 267(1)(e) of the Regulations is replaced by the following:

• (e) the type of ignition system it uses;

(2) Subsection 267(1) of the Regulations is amended by adding the following after paragraph (f):

• (g) information that indicates whether the product is a decorative gas fireplace or a heating gas fireplace; and
• (h) if the product is a decorative gas fireplace that is manufactured on or after January 1, 2020, information that indicates whether it is intended for use as a replacement unit.

11 The Regulations are amended by adding the following after section 271:

SUBDIVISION E

Electric Furnaces

Definition of electric furnace

272 In this Subdivision, electric furnace means an automatic operating central forced air furnace that uses single-phase electric current to heat one or more electrical resistance heating elements and has an input rate of not more than 65.92 kW (225,000 Btu/h).

Energy-using product

273 (1) An electric furnace is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 274, an electric furnace is not considered to be an energy-using product unless it is manufactured on or after July 3, 2019.

Energy efficiency standard

274 (1) The energy efficiency standard that applies to an electric furnace is that its FER must be less than or equal to the FER for product class "Non-Weatherized, Electric Furnace/Modular Blower Fan", set out in 10 C.F.R. §430.32(y).

Testing standard

(2) An electric furnace complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix AA that are applicable to an electric furnace as defined in section 272.

Information

275 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with 10 C.F.R. Appendix AA and provided to the Minister in respect of an electric furnace:

• (a) its maximum heat input nominal capacity, expressed in kilowatts (British thermal units per hour);
• (b) its FER, expressed in watts per 472 L/s (watts per 1000 cubic feet per minute); and
• (c) its maximum airflow (Qmax), expressed in L/s (cubic feet per minute).

SUBDIVISION F

Recovery Ventilators

Interpretation

Definitions

276 The following definitions apply in this Subdivision.

CSA C439-18 means the CSA standard CAN/CSA-C439-18 entitled Laboratory methods of test for rating the performance of heat/energy-recovery ventilators. (CSA C439-18)

energy-recovery ventilator means a factory-built packaged unit that has fans or blowers, has a rated net supply airflow of not more than 142 L/s (300 cubic feet/minute) and transfers heat and moisture between two isolated airstreams. (ventilateur-récupérateur d'énergie)

heat-recovery ventilator means a factory-built packaged unit that has fans or blowers, has a rated net supply airflow of not more than 142 L/s (300 cubic feet/minute) and transfers heat between two isolated airstreams. (ventilateur-récupérateur de chaleur)

sensible heat recovery efficiency means, in respect of an energy-recovery ventilator or a heat-recovery ventilator, the ratio of the net sensible energy recovered by the unit's supply airstream, as adjusted to account for the unit's external and internal energy gains and losses, to the maximum sensible energy that would be recovered if the unit had an infinite transfer area. (efficacité de récupération de chaleur sensible)

Energy-recovery Ventilators

Energy-using product

277 (1) An energy-recovery ventilator is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4 and 5, an energy-recovery ventilator is not considered to be an energy-using product unless it is manufactured on or after January 1, 2020.

Information

278 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C439-18 and be provided to the Minister in respect of an energy-recovery ventilator:

• (a) its rated net supply airflow;
• (b) its sensible heat recovery efficiency at 0°C and the associated net supply airflow, expressed in L/s, and electrical power consumption, expressed in watts; and
• (c) unless the unit is marked for use only where the outdoor design temperature is greater than or equal to -10°C, its sensible heat recovery efficiency at -25°C and the associated net supply airflow, expressed in L/s.

Heat-recovery Ventilators

Energy-using product

279 (1) A heat-recovery ventilator is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4 and 5, a heat-recovery ventilator is not considered to be an energy-using product unless it is manufactured on or after January 1, 2020.

Information

280 For the purpose of subsection 5(1) of the Act, the following information must be collected in accordance with CSA C439-18 and be provided to the Minister in respect of a heat-recovery ventilator:

• (a) its rated net supply airflow;
• (b) its sensible heat recovery efficiency at 0°C and the associated net supply airflow, expressed in L/s, and electrical power consumption, expressed in watts; and
• (c) unless the unit is marked for use only where the outdoor design temperature is greater than or equal to -10°C, its sensible heat recovery efficiency at -25°C and the associated net supply airflow, expressed in L/s.

12 Section 314 of the Regulations is amended by adding the following in alphabetical order:

CSA P.2 means the CSA standard CAN/CSA-P.2-13 entitled Testing Method for Measuring the Annual Fuel Utilization Efficiency of Residential Gas-Fired or Oil-Fired Furnaces and Boilers. (CSA P.2)

10 C.F.R. Appendix A means Appendix A to Subpart E, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Combustion Efficiency of Commercial Packaged Boilers, as amended from time to time. (appendice A 10 C.F.R.)

13 (1) The definition CSA P.2 in section 315 of the Regulations is repealed.

(2) The definition gas boiler in section 315 of the Regulations is replaced by the following:

gas boiler means a boiler that uses exclusively propane or natural gas, is intended for application in a low pressure steam, or hot water, central heating system and has an input rate of not more than 2 930 kW (10,000,000 Btu/h). (chaudière à gaz)

14 The Regulations are amended by adding the following after section 315:

Type

315.1 For the purpose of these Regulations, a gas boiler is one of the following types:

• (a) household, if it has an input rate of less than 88 kW (300,000 Btu/h); or
• (b) commercial, if it is has an input rate of greater than or equal to 88 kW (300,000 Btu/h) but not more than 2 930 kW (10,000,000 Btu/h).

15 Subsection 316(2) of the Regulations is replaced by the following:

Limits

(2) However, a gas boiler is not considered to be an energy-using product

• (a) for the purpose of section 4 unless
  • (i) it is a household gas boiler that is manufactured on or after June 30, 1999, or
  • (ii) it is a commercial gas boiler that is manufactured on after January 1, 2023; and
• (b) for the purposes of sections 5 and 317 unless
  • (i) it is a household gas boiler that is manufactured on or after December 31, 1998, or
  • (ii) it is a commercial gas boiler that is manufactured on after January 1, 2023.

16 Section 317 of the Regulations is replaced by the following:

Energy efficiency standards — household

317 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household gas boilers described in column 1 that are manufactured during the periods set out in column 4.

Testing standard — household

(2) A household gas boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 1 that are applicable to a gas boiler as defined in section 315.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial gas boilers described in column 1 that are manufactured on or after January 1, 2023.

Testing standard — commercial

(4) A commercial gas boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to a gas boiler as defined in section 315.

TABLE 1

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Household gas boilers that are intended for low pressure steam systems	CGA P.2	Annual fuel utilization efficiency ≥ 75%	On or after December 31, 1998 and before September 1, 2010
2	Household gas boilers that are intended for low pressure steam systems	CSA P.2 for annual fuel utilization efficiency	Annual fuel utilization efficiency ≥ 80% No continuously burning pilot light	On or after September 1, 2010 and before January 15, 2021
2.1	Household gas boilers that are intended for low pressure steam systems	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 82% No continuously burning pilot light Standby power ≤ 8 W Off-mode power ≤ 8 W	On or after January 15, 2021
3	Household gas boilers that are intended for hot water systems	CGA P.2	Annual fuel utilization efficiency ≥ 80%	On or after December 31, 1998 and before September 1, 2010
4	Household gas boilers that are intended for hot water systems	CSA P.2 for annual fuel utilization efficiency	Annual fuel utilization efficiency ≥ 82% No continuously burning pilot light	On or after September 1, 2010 and before September 1, 2012
5	Household gas boilers that are intended for hot water systems and have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency	Annual fuel utilization efficiency ≥ 82% No continuously burning pilot light	On or after September 1, 2012 and before January 15, 2021
5.1	Household gas boilers that are intended for hot water systems and have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 90% No continuously burning pilot light Standby power ≤ 9 W Off-mode power ≤ 9 W	On or after January 15, 2021
6	Household gas boilers that are intended for hot water systems and do not have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency	Annual fuel utilization efficiency ≥ 82% No continuously burning pilot light Equipped with automatic water temperature adjustment device and not operable without the device	On or after September 1, 2012 and before January 15, 2021
7	Household gas boilers that are intended for hot water systems and do not have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 90% No continuously burning pilot light Equipped with automatic water temperature adjustment device and not operable without the device Standby power ≤ 9 W Off-mode power ≤ 9 W	On or after January 15, 2021

TABLE 2

Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Commercial gas boilers that have an input rate of ≥ 88 kW (300,000 Btu/h) but ≤ 733 kW (2,500,000 Btu/h) and are intended for hot water systems	Thermal efficiency ≥ 90%
2	Commercial gas boilers that have an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and are intended for hot water systems	Combustion efficiency ≥ 90%
3	Commercial gas boilers that have an input rate of ≥ 88 kW (300,000 Btu/h) but ≤ 733 kW (2,500,000 Btu/h) and are intended for low pressure steam systems	Thermal efficiency ≥ 81%
4	Commercial gas boilers that have an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and are intended for low pressure steam systems	Thermal efficiency ≥ 82%

17 (1) The portion of items 1 and 2 of the table to section 318 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
1	Household gas boilers manufactured on or after December 31, 1998 and before September 1, 2010
2	Household gas boilers manufactured on or after September 1, 2010 and before January 15, 2021

(2) The table to section 318 of the Regulations is amended by adding the following after item 2:

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
3	Household gas boilers manufactured on or after January 15, 2021	CSA P.2 for information set out in paragraphs (a) to (f)	(a) type of fuel used; (b) type of central heating system for which product is intended; (c) maximum heat input and output nominal capacities, in kW (Btu/h); (d) annual fuel utilization efficiency; (e) standby power, in W; (f) off-mode power, in W; (g) information that indicates whether product has tankless domestic water heating coils; and (h) type of automatic water temperature adjustment device product has, if any.
4	Commercial gas boilers manufactured on or after January 1, 2023	10 C.F.R. Appendix A	(a) type of central heating system for which product is intended; (b) maximum heat input nominal capacity, in kW (Btu/h); and (c) thermal efficiency or, if product has an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and is intended for hot water systems, combustion efficiency.

18 The portion of the definition oil-fired boiler before paragraph (a) in section 319 of the Regulations is replaced by the following:

oil-fired boiler means a boiler that is intended for application in a low pressure steam, or hot water, central heating system, has an input rate of less than 2 930 kW (10,000,000 Btu/h) and is

19 The Regulations are amended by adding the following after section 319:

Type

319.1 For the purpose of these Regulations, an oil-fired boiler is one of the following types:

• (a) household, if it has an input rate of less than 88 kW (300,000 Btu/h); or
• (b) commercial, if it is has an input rate of greater than or equal to 88 kW (300,000 Btu/h) but not more than 2 930 kW (10,000,000 Btu/h).

20 Subsection 320(2) of the Regulations is replaced by the following:

Limits

(2) However, an oil-fired boiler is not considered to be an energy-using product

• (a) for the purpose of section 4, unless
  • (i) it is a household oil-fired boiler that is manufactured on or after June 30, 1999, or
  • (ii) it is a commercial oil-fired boiler that is manufactured on after January 1, 2023; and
• (b) for the purposes of sections 5 and 317, unless
  • (i) it is a household oil-fired boiler that is manufactured on or after December 31, 1998, or
  • (ii) it is a commercial oil-fired boiler that is manufactured on after January 1, 2023.

21 Section 321 of the Regulations is replaced by the following:

Energy efficiency standards — household

321 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household oil-fired boilers described in column 1 that are manufactured during the periods set out in column 4.

Testing standard — household

(2) A household oil-fired boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 of Table 1 that are applicable to an oil-fired boiler as defined in section 319.

Energy-efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial oil-fired boilers described in column 1 that are manufactured on or after January 1, 2021.

Testing Standard — commercial

(4) A commercial oil-fired boiler complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to an oil-fired boiler as defined in section 319.

TABLE 1

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard	Column 4 Period of Manufacture
1	Household oil-fired boilers	CSA B212	Seasonal energy utilization efficiency ≥ 80%	On or after December 31, 1998 and before September 1, 2010
2	Household oil-fired boilers that are intended for low pressure steam systems	ASHRAE 103	Annual fuel utilization efficiency ≥ 82%	On or after September 1, 2010 and before January 15, 2021
2.1	Household oil-fired boilers that are intended for low pressure steam systems	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 85% Standby power ≤ 11 W Off-mode power ≤ 11 W	On or after January 15, 2021
3	Household oil-fired boilers that are intended for hot water systems	ASHRAE 103	Annual fuel utilization efficiency ≥ 84%	On or after September 1, 2010 and before September 1, 2012
4	Household oil-fired boilers that are intended for hot water systems and have tankless domestic water heating coils	ASHRAE 103	Annual fuel utilization efficiency ≥ 84%	On or after September 1, 2012 and before January 15, 2021
4.1	Household oil-fired boilers that are intended for hot water systems and have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 86% Standby power ≤ 11 W Off-mode power ≤ 11 W	On or after January 15, 2021
5	Household oil-fired boilers that are intended for hot water systems and do not have tankless domestic water heating coils	ASHRAE 103 for annual fuel utilization efficiency	Annual fuel utilization efficiency‍ ≥ 84% Equipped with automatic water temperature adjustment device and not operable without the device	On or after September 1, 2012 and before January 15, 2021
6	Household oil-fired boilers that are intended for hot water systems and do not have tankless domestic water heating coils	CSA P.2 for annual fuel utilization efficiency, standby power and off-mode power	Annual fuel utilization efficiency ≥ 86% Equipped with automatic water temperature adjustment device and not operable without the device Standby power ≤ 11 W Off-mode power ≤ 11 W	On or after January 15, 2021

TABLE 2

Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Commercial oil-fired boilers that have an input rate of ≥ 88 kW (300,000 Btu/h) but ≤ 733 kW (2,500,000 Btu/h) and are intended for hot water systems	Thermal efficiency ≥ 87%
2	Commercial oil-fired boilers that have an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and are intended for hot water systems	Combustion efficiency ≥ 88%
3	Commercial oil-fired boilers that have an input rate of ≥ 88 kW (300,000 Btu/h) but ≤ 733 kW (2,500,000 Btu/h) and are intended for low pressure steam systems	Thermal efficiency ≥ 84%
4	Commercial oil-fired boilers that have an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and are intended for low pressure steam systems	Thermal efficiency ≥ 85%

22 (1) The portion of items 1 and 2 of the table to section 322 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
1	Household oil-fired boilers manufactured on or after December 31, 1998 and before September 1, 2010
2	Household oil-fired boilers manufactured on or after September 1, 2010 and before January 15, 2021

(2) The table to section 322 of the Regulation is amended by adding the following after item 2:

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
3	Household oil-fired boilers manufactured on or after January 15, 2021	CSA P.2 for information set out in paragraphs (a) to (e)	(a) type of central heating system for which product is intended; (b) maximum heat input and output nominal capacities, in kW (Btu/h); (c) annual fuel utilization efficiency; (d) standby power, in W; (e) off-mode power, in W; (f) information that indicates whether product has tankless domestic water heating coils; and (g) type of automatic water temperature adjustment device product has, if any.
4	Commercial oil-fired boilers manufactured on or after January 1, 2023	10 C.F.R. Appendix A	(a) type of central heating system for which product is intended; (b) maximum heat input nominal capacity, in kW (Btu/h); and (c) thermal efficiency or, if product has an input rate of > 733 kW (2,500,000 Btu/h) but ≤ 2 930 kW (10,000,000 Btu/h) and is intended for hot water systems, combustion efficiency.

23 Section 369 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix A means Appendix A to Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Standby Loss of Gas-Fired and Oil-Fired Storage Water Heaters and Storage-Type Instantaneous Water Heaters, as amended from time to time. (appendice A 10 C.F.R.)

24 (1) The definition electric water heater in section 370 of the Regulations is replaced by the following:

electric water heater means a stationary electric storage tank water heater that is intended for use on a pressurized water system and that has a V_r of at least 50 L (13.21 US gallons). (chauffe-eau électrique)

(2) Section 370 of the Regulations is amended by adding the following in alphabetical order:

10 C.F.R. Appendix B means Appendix B to Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Standby Loss of Electric Storage Water Heaters and Storage-Type Instantaneous Water Heaters, as amended from time to time. (appendice B 10 C.F.R.)

25 The Regulations are amended by adding the following after section 370:

Type

370.1 For the purpose of these Regulations, an electric water heater is one of the following types:

• (a) household, if it has an input rate of less than 12 kW (40,982 Btu/h); or
• (b) commercial, if it is has an input rate of greater than or equal to 12 kW (40,982 Btu/h).

26 Subsection 371(2) of the Regulations is replaced by the following:

Limits

(2) However, an electric water heater is not considered to be an energy-using product for the purposes of sections 4, 5 and 372 unless

• (a) it is a household electric water heater that is manufactured on or after February 3, 1995; or
• (b) it is a commercial electric water heater that is manufactured on or after January 1, 2020.

27 Subsection 372(2) of the Regulations is replaced by the following:

Testing standard

(2) An electric water heater described in column 1 complies with the energy efficiency standard set out in column 3 if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to an electric water heater as defined in section 370.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard
1	Household electric water heaters that have a bottom inlet and a Vr of ≥ 50 L but ≤ 270 L	CSA C191-04	Standby loss, in W, ≤ 40 + 0.2 Vr
2	Household electric water heaters that have a bottom inlet and a Vr of > 270 L but ≤ 454 L	CSA C191-04	Standby loss, in W, ≤ 0.472 Vr - 33.5
3	Household electric water heaters that have a top inlet and a Vr of ≥ 50 L but ≤ 270 L	CSA C191-04	Standby loss, in W, ≤ 35 + 0.2 Vr
4	Household electric water heaters that have a top inlet and a Vr of > 270 L but ≤ 454 L	CSA C191-04	Standby loss, in W, ≤ 0.472 Vr - 38.5
5	Commercial electric water heaters	10 C.F.R. Appendix B	Standby loss, in %/hr ≤ 0.3 + 102.2/Vs

28 Section 373 of the Regulations is replaced by the following:

Information

373 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected in accordance with the standard set out in column 2 and provided to the Minister in respect of an electric water heater described in column 1.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
1	Household electric water heaters manufactured on or after February 3 1995	CSA C191-04, for information set out in paragraphs (a) to (c)	(a) its Vr; (b) nominal power input of upper and lower elements, in W; (c) its standby loss, in W; and (d) cold water inlet configuration, namely, top inlet or bottom inlet.
2	Commercial electric water heaters manufactured on or after January 1, 2020	10 C.F.R. Appendix B	(a) its Vr; (b) its Vs; (c) its standby loss, in %/hr; and (d) its input rate, in kW.

29 (1) The definition gas-fired storage water heater in section 374 of the Regulations is replaced by the following:

gas-fired storage water heater means a stationary gas-heated water container that uses propane or natural gas for fuel and has a V_r of at least 76 L (20 US gallons). (chauffe-eau à réservoir alimenté au gaz)

(2) Section 374 of the Regulations is amended by adding the following in alphabetical order:

replacement unit means a commercial gas-fired storage water heater that is marked for replacement installations only. (unité de remplacement)

30 The Regulations are amended by adding the following after section 374:

Type

374.1 For the purpose of these Regulations, a gas-fired storage water heater is one of the following types:

• (a) household, if it has an input rate of less than or equal to 21.97 kW (75,000 Btu/h); or
• (b) commercial, if it is has an input rate of greater than 21.97 kW (75,000 Btu/h).

31 Subsection 375(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5 and 376, a gas-fired storage water heater is not considered to be an energy-using product unless

• (a) it is a household gas-fired storage water heater that is manufactured on or after February 3, 1995; or
• (b) it is a commercial gas-fired storage water heater that is manufactured on or after January 1, 2020.

32 (1) Subsections 376(1) and (2) of the Regulations are replaced by the following:

Energy-efficiency standards — household

376 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household gas-fired storage water heaters described in column 1 that are manufactured during the periods set out in column 4.

Testing standard — household

(2) A household gas-fired storage water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to a gas-fired storage water heater as defined in section 374.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial gas-fired storage water heaters described in column 1 that are manufactured on or after January 1, 2020.

Testing standard — commercial

(4) A commercial gas-fired storage water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to a gas-fired storage water heater as defined in section 374.

(2) The table to section 376 of the Regulations is renumbered as Table 1.

(3) The portion of items 1 to 6 of Table 1 to section 376 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
1	Household gas-fired storage water heaters
2	Household gas-fired storage water heaters
3	Household gas-fired storage water heaters that have a first-hour rating of < 68 L (18 US gallons)
4	Household gas-fired storage water heaters that have a first-hour rating of ≥ 68 L (18 US gallons) but < 193 L (51 US gallons)
5	Household gas-fired storage water heaters that have a first-hour rating of ≥ 193 L (51 US gallons) but < 284 L (75 US gallons)
6	Household gas-fired storage water heaters that have a first-hour rating of > 284 L (75 US gallons)

(4) Section 376 of the Regulations is amended by adding the following after Table 1:

TABLE 2

Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Commercial gas-fired storage water heaters, other than replacement units, that have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a Vr of ≤454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180° F)	Uniform energy factor ≥ 0.8107-0.00021 Vs
2	Commercial gas-fired storage water heaters that are replacement units, that have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a Vr of ≤ 454 L (120 US gallons), use single-phase power and limit water temperatures to < 82°C (180°F)	Uniform energy factor ≥ 0.6597-0.00024 Vs
3	Commercial gas-fired storage water heaters, other than those described in items 1 and 2, that are not replacement units	Thermal efficiency ≥ 90% Standby loss ≤ 0.63(Q/0.234 + 16.57√Vs
4	Commercial gas-fired storage water heaters, other than those described in items 1 and 2, that are replacement units	Thermal efficiency ≥ 82% Standby loss ≤ Q/0.234 + 16.57√Vs

33 Section 377 of the Regulations is replaced by the following:

377 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected in accordance with the standard set out in column 2 and provided to the Minister in respect of a gas-fired storage water heater described in column 1.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
1	Household gas-fired storage water heaters that are manufactured on or after February 3, 1995 and before January 1, 2018	CSA P.3-04	(a) its input rate, in kW (Btu/h); (b) its recovery efficiency; (c) the fuel it uses; (d) its annual energy consumption, in kJ; (e) its first-hour rating, in L; (f) its Vr; and (g) its energy factor.
2	Household gas-fired storage water heaters that are manufactured on or after January 1, 2018	CSA P.3-04, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 376; CSA P.3-15, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 376.	(a) its input rate, in kW (Btu/h); (b) its recovery efficiency; (c) the fuel it uses; (d) its annual energy consumption, in kJ; (e) its first-hour rating, in L; (f) its Vr; (g) its energy factor, if a certification body has verified that it is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 376; and (h) its uniform energy factor and Vs, if a certification body has verified that it is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 376.
3	Commercial gas-fired storage water heaters, that have an input rate of > 21.97 kW (75,000 Btu/h) but ≤ 30.5 kW (105,000 Btu/h), have a Vr of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020	CSA P.3-15	(a) its uniform energy factor; (b) its Vr; (c) its Vs; (d) its input rate, in kW (Btu/h); (e) the fuel it uses; and (f) information that indicates whether it is a replacement unit.
4	Commercial gas-fired storage water heaters, other than those described in item 3, that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	(a) its thermal efficiency; (b) its standby loss, in W; (c) its Vr; (d) its Vs; (e) its input rate, in kW (Btu/h); (f) the fuel it uses; and (g) information that indicates whether it is a replacement unit.

34 The definition oil-fired water heater in section 378 of the Regulations is replaced by the following:

oil-fired water heater means a water heater that uses oil for fuel and that has a V_r of at least 76 L (20 US gallons). (chauffe-eau à mazout)

35 The Regulations are amended by adding the following after section 378:

Type

378.1 For the purpose of these Regulations, an oil-fired water heater is one of the following types:

• (a) household, if it has an input rate of less than or equal to 30.5 kW (105,000 Btu/h); or
• (b) commercial, if it is has an input rate of greater than 30.5 kW (105,000 Btu/h).

36 (1) Subsection 379(2) of the Regulations is replaced by the following:

Limits

(2) However, for the purposes of sections 4, 5 and 380, an oil-fired water heater is not considered to be an energy-using product unless

• (a) it is a household oil-fired water heater that is manufactured on or after February 3, 1995; or
• (b) it is a commercial oil-fired water heater that is manufactured on or after January 1, 2020.

37 (1) Subsections 380(1) and (2) of the Regulations are replaced by the following:

Energy efficiency standards — household

380 (1) The energy efficiency standards set out in column 3 of Table 1 to this section apply to household oil-fired water heaters described in column 1 that are manufactured during the period set out in column 4.

Testing standard — household

(2) An oil-fired water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to a oil-fired water heater as defined in section 378.

Energy efficiency standards — commercial

(3) The energy efficiency standards set out in column 2 of Table 2 to this section apply to commercial oil-fired water heaters described in column 1 that are manufactured on or after January 1, 2020.

Testing standard — commercial

(4) A commercial oil-fired water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by 10 C.F.R. Appendix A that are applicable to a oil-fired water heater as defined in section 378.

(2) The table to section 380 of the Regulations is renumbered as Table 1.

(3) The portion of items 1 to 6 of Table 1 to section 380 of the Regulations in column 1 is replaced by the following:

Item	Column 1 Energy-using Product
1	Household oil-fired water heaters
2	Household oil-fired water heaters
3	Household oil-fired water heaters that have a first-hour rating of < 68 L (18 US gallons)
4	Household oil-fired water heaters that have a first-hour rating of ≥ 68 L (18 US gallons) but < 193 L (51 US gallons)
5	Household oil-fired water heaters that have a first-hour rating of ≥ 193 L (51 US gallons) but < 284 L (75 US gallons)
6	Household oil-fired water heaters that have a first-hour rating of > 284 L (75 US gallons)

(4) Section 380 of the Regulations is amended by adding the following after Table 1:

TABLE 2

Item	Column 1 Energy-using Product	Column 2 Energy Efficiency Standard
1	Commercial oil-fired storage water heaters that have an input rate of > 30.5 kW (105,000 Btu/h) but ≤ 40.99 kW (140,000 Btu/h), a Vr of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020	Uniform energy factor ≥ 0.6740 - 0.00035 Vs
2	Commercial oil-fired storage water heaters, other than those described in item 1, that are manufactured on or after January 1, 2020	Thermal efficiency ≥ 80% Standby loss ≤ Q/0.234 + 16.57√Vs

38 Section 381 of the Regulations is replaced by the following:

Information

381 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected in accordance with the standard set out in column 2 and provided to the Minister in respect of an oil-fired storage water heater described in column 1.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
1	Household oil-fired water heaters that are manufactured on or after February 3, 1995 and before January 1, 2018	CSA B211-00	(a) its input rate, in kW (Btu/h); (b) its recovery efficiency; (c) its annual energy consumption, in kJ; (d) its first-hour rating, in L; (e) its Vr; and (f) its energy factor.
2	Household oil-fired water heaters that are manufactured on or after January 1, 2018	CSA B211-00, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(a), 4(a), 5(a) and 6(a) of Table 1 to section 380; and CSA P.3-15, if a certification body has verified that the product is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 380.	(a) its input rate, kW (Btu/h); (b) its recovery efficiency; (c) its annual energy consumption, in kJ; (d) its first-hour rating, in L; (e) its Vr; (f) its energy factor, and (g) its uniform energy factor and Vs, if a certification body has verified that it is in compliance with the energy efficiency standard set out in any of paragraphs 3(b), 4(b), 5(b) and 6(b) of Table 1 to section 380.
3	Commercial oil-fired storage water heaters that have an input rate of > 30.5 kW (105,000 Btu/h) but ≤ 40.99 kW (140,000 Btu/h), a Vr of ≤ 454 L (120 US gallons), use single-phase power, limit water temperatures to < 82°C (180°F) and are manufactured on or after January 1, 2020	CSA P.3-15	(a) its input rate, in kW (Btu/h); b) its uniform energy factor; (c) its Vr; and (d) its Vs.
4	Commercial oil-fired water heaters, other than those described in item 3, that are manufactured on or after January 1, 2020	10 C.F.R. Appendix A	(a) its input rate, in kW (Btu/h); (b) its thermal efficiency; (c) its Vr; (d) its Vs; and (e) its standby loss, in W.

39 The Regulations are amended by adding the following after section 381:

SUBDIVISION D

Gas-Fired Instantaneous Water Heaters

Definitions

382 The following definitions apply in this Subdivision.

gas-fired instantaneous water heater means a flow-activated water heater that uses natural gas or propane for fuel, that has a V_r that is less than or equal to 37.85 L (10 US gallons) and has an input rate to V_r ratio of not less than 309 W/L (4,000 Btu/h/US gallon). (chauffe-eau instantané au gaz)

maximum flow rate means, in respect of a gas-fired instantaneous water heater, the maximum litres per minute (gallons per minute) of hot water that can be supplied by the water heater while operating in a steady state and maintaining a nominal temperature rise of 37.3°C (67°F). (débit maximal)

10 C.F.R Appendix C means Appendix C to the Subpart G, Part 431 of Title 10 to the United States Code of Federal Regulations, entitled Uniform Test Method for the Measurement of Thermal Efficiency and Standby Loss of Gas-Fired and Oil-Fired Instantaneous Water Heaters and Hot Water Supply Boilers (Other Than Storage-Type Instantaneous Water Heaters), as amended from time to time. (appendice C 10 C.F.R.)

Type

383 For the purpose of these Regulations, a gas-fired instantaneous water heater is one of the following types:

• (a) household, if it has an input rate of less than 58.56 kW (200,000 Btu/h), has a V_r of no greater than 7.6 L (2 US gallons) and is designed to provide hot water at a temperature no greater than 82°C (180°F); or
• (b) commercial, if it is a gas-fired instantaneous water heater that is not described in paragraph (a).

Energy-using product

384 (1) A gas-fired instantaneous water heater is prescribed as an energy-using product.

Limit

(2) However, for the purposes of sections 4, 5 and 385, a gas-fired instantaneous water heater is not considered to be an energy-using product unless it is manufactured on or after January 1, 2020.

Energy efficiency standards

385 (1) The energy efficiency standards set out in column 3 of the table to this section apply to gas-fired instantaneous water heaters described in column 1 that are manufactured on or after January 1, 2020.

Testing standards

(2) A gas-fired instantaneous water heater complies with the energy efficiency standard if it meets that standard when tested in accordance with testing procedures established by the standard set out in column 2 that are applicable to a gas-fired instantaneous water heater as defined in section 382.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Energy Efficiency Standard
1	Household gas-fired instantaneous water heaters that have a maximum flow rate of < 6.4 L/min	CSA P.3-15	Uniform energy factor ≥ 0.86
2	Household gas-fired instantaneous water heaters that have a maximum flow rate of ≥ 6.4 L/min	CSA P.3-15	Uniform energy factor ≥ 0.87
3	Commercial gas-fired instantaneous water heaters	10 C.F.R. Appendix C	Thermal efficiency ≥ 94%

Information

386 For the purpose of subsection 5(1) of the Act, the information set out in column 3 of the table to this section must be collected in accordance with the standard set out in column 2 and provided to the Minister in respect of a gas-fired instantaneous water heater described in column 1.

TABLE

Item	Column 1 Energy-using Product	Column 2 Standard	Column 3 Information
1	Household gas-fired instantaneous water heaters manufactured on or after January 1, 2020	CSA P.3-15	(a) its uniform energy factor; (b) its Vr; (c) the fuel it uses; (d) its input rate, in kW (Btu/h); and (e) its maximum flow rate.
2	Commercial gas-fired instantaneous water heaters manufactured on or after January 1, 2020	10 C.F.R. Appendix C	(a) its thermal efficiency; (b) its Vr; (c) the fuel it uses; (d) its input rate, in kW (Btu/h); and (e) its maximum flow rate.

Coming into Force

40 These Regulations come into force on the day that, in the sixth month after the month in which they are published in the Canada Gazette, Part II, has the same calendar number as the day on which they are published or, if that sixth month has no day with that number, the last day of that sixth month.