Vol. 138, No. 7 — February 14, 2004

Regulations Amending the Energy Efficiency Regulations

Statutory Authority

Energy Efficiency Act

Sponsoring Department

Department of Natural Resources

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

The Regulations Amending the Energy Efficiency Regulations (the "amendment") will increase the minimum energy efficiency of gas-fired and electric storage water heaters. There are about 880 000 new water heaters installed per year in Canada. Water heating is the second highest energy use in houses. This amendment will increase the efficiency of clothes washers providing energy and water savings. It will introduce a new requirement for the efficiency of exit signs. This amendment will also introduce regulations for water chillers used to cool large buildings. Certain refrigerants in water chillers are being phased out, and these new regulations will help ensure that replacement equipment is more energy efficient.

This amendment will update the methods for testing the energy efficiency for clothes washers, dishwashers, and storage water heaters. Test methods are revised to take into account equipment changes, improve accuracy, and ensure that the test method is representative of actual use of the equipment. For dishwashers, the method of calculating annual energy consumption for the EnerGuide label will change. The test procedure will include a modified test for "soil sensing" dishwashers.

The revisions to the standards for clothes washers, dishwashers, water chillers, and gas-fired water heaters are, with some minor differences, consistent with the standards currently in effect or scheduled in the United States.

As a result of input from a stakeholder and of further review of the Regulations, it was determined that reference to gas boilers was inadvertently dropped during a previous amendment. This amendment will be used to reinstate the reference.

The Energy Efficiency Regulations help Canada meet its commitments under the National Action Program on Climate Change. The measures established under this program encourage the efficient use of energy on an economical basis. They contribute to the competitiveness of Canada's economy while helping to achieve Canada's greenhouse gas (GHG) emissions limitation targets.

Concentrations of GHGs are increasing in the Earth's atmosphere. The accumulation of these gases causes a rise in the average temperature of the lower atmosphere, resulting in climate change. Although uncertainty remains as to the extent, timing and effects of global climate change, evidence collected to date and the potential environmental threat support the implementation of precautionary measures. Therefore, the Government of Canada has committed to reducing Canada's GHG emissions by 6 percent below 1990 levels between 2008 and 2012. Furthermore, in December 2002, the Government of Canada ratified the Kyoto Protocol.

Carbon dioxide (CO₂), a by-product of fossil fuel consumption, has been identified as the most significant GHG. Due to greater demand for fossil fuel because of expanding human activities involving energy use, emissions of CO₂ have increased. Because there is limited short-term prospect for switching from fossil fuels to alternative energy sources, the main approach to limiting CO₂ emissions resulting from fossil fuel consumption is to improve energy efficiency.

Alternatives

Maintaining the Status Quo

If the amendment is not implemented, Canada will lose an opportunity to address its GHG emission targets. This would lead to lower efficiency requirements in Canada as compared to those in the United States. Canadian households and businesses would miss out on future savings in energy which are known to be cost effective.

Without the national standards contained in the amendment and complementary provincial requirements, where authorized under provincial legislation, inefficient energy-using equipment could be dumped into provinces or territories that do not have performance requirements. This would hinder the federal government's objectives of reducing CO₂ emissions and achieving cost savings for energy users.

Voluntary Program

Without the amendment, co-operation from all industry members could not be guaranteed, especially in the case of imported goods originating from various countries.

In order to manufacture products that meet the performance levels of the standards, manufacturers will have to make substantial investments in their production facilities. Product markets are increasingly global in nature and profit margins are often claimed to be small. Consequently, manufacturers generally support the use of standards in these cases so that there is a level playing field.

Natural Resources Canada (NRCan) utilizes voluntary high-efficiency programs such as Energy Star to transform the present market into one that promotes energy-efficient equipment.

Benefits and Costs

The benefits and costs of increasing the minimum energy performance standards for the products covered in the amendment are evaluated in two parts:

(a) Benefits and Costs to Society — A quantitative analysis measuring the economic attractiveness to society conducted for products where there is an energy efficiency improvement.

(b) Energy/GHG Analysis — An analysis giving aggregate energy savings and associated reductions in GHG emissions, resulting from the amendment to the Energy Efficiency Regulations.

(a) Benefits and Costs to Society

A quantitative analysis of the net benefits to society was undertaken to determine the economic attractiveness of improving the energy efficiency of electric and gas-fired storage water heaters, water chillers, exit signs, and clothes washers. The analysis was conducted for units that would not meet the proposed minimum energy performance standards and that are considered to be representative of the class as a whole.

Methodology and Assumptions

The economic attractiveness of the minimum energy performance standards was analyzed within a cost-benefit analysis framework, using the incremental cost and energy savings data associated with the technologies that increase the energy efficiency of the benchmark products. Benchmark products are often characterized as the least energy efficient products available for sale in Canada.

Using a cost-benefit analysis framework allows the net present value of costs and benefits to be the indicator of economic attractiveness. The net present value is calculated by subtracting the present value of incremental costs from the present value of incremental benefits over the useful life of the product. The incremental cost is the difference between a benchmark product price and the cost of that product with the level of efficiency that meets the level proposed for federal regulation. The incremental benefit is the present value of energy savings associated with the efficiency improvement.

A negative net present value indicates the efficiency improvement is not economically attractive (costs exceed benefits), whereas a net present value greater than zero indicates the efficiency improvement is economically attractive (benefits exceed costs). A net present value equal to zero indicates that society would be indifferent.

Assumptions for Base Case Analysis

The economic analyses involve a base case analysis and a sensitivity analysis. The key assumptions for the base case scenario include the following analytical assumptions:

— benefits and costs measured in year 2000 dollars;

— a real discount rate of 7 percent; and

— Canadian average energy prices, based on NRCan's official energy supply demand forecast (Canada's Energy Outlook 1992-2020: Update 1999).

Product-specific Assumptions

Electric Water Heaters

— Electric Water Heaters have a useful life of 15 years. This is considered to be the most likely service life in normal usage, depending on water quality. Research shows that approximately 4 percent of water heaters fail in the first year. This drops to about 1 percent each year for the next 6 to 7 years, then increases to about 5 to 6 percent for the next 14 years.

— The baseline models used in the analysis were 175-litre electric water heater with standby loss of 96 watts and 270-litre electric water heater with standby loss of 115 watts.

— NRCan's analysis shows that a 175-litre water heater with 2 to 2.5 inches of foam insulation and improved tank bottom and top insulation would achieve a standby loss of 70 watts. Similarly, a 270-litre electric water heater with 2 to 2.5 inches of foam insulation and improved tank bottom and top insulation would achieve a standby loss of 89 watts. In both cases, the reduction in standby loss from the existing regulation is 26 watts.

— For electric water heaters, bottom inlet of cold water is recognized as saving energy as compared to top inlet. The test method does not assess this advantage. The efficiency requirements are defined separately for water heaters with top inlet and bottom inlet of cold water. NRCan is open to incorporating other designs which improve efficiency.

Gas Water Heaters

— Gas water heaters are assumed to have an average service life of 12 years, which varies depending on water quality.

— The baseline models used in the analysis were 150-litre and 189-litre gas-fired water heaters with energy factors (EF) of 0.54 and 0.53 respectively. Energy factor can be interpreted as the overall efficiency.

— NRCan's analysis shows that a 189-litre gas water heater that included heat traps, improved flue baffle (giving recovery efficiency [RE] of 78 percent), and 2 inches of insulation would provide an EF of 0.58. Likewise, a 151-litre gas water heater that included heat traps, improved flue baffle (recovery efficiency [RE] of 78 percent), and 2 inches of insulation would meet the proposed EE Regulations.

Water Chillers for Cooling Large Buildings

— Reciprocating chillers are assumed to have an average service life of 20 years and centrifugal chillers are assumed to have an average service life of 23 years.

— The baseline models used in the analysis were a 100-ton air-cooled water chiller (with condenser) with a coefficient of performance (COP) of 2.7, and a 500-ton centrifugal water chiller with a COP of 5.6.

— The full load hours used in the energy analysis were calculated using hour-by-hour DOE 2.1E energy simulation results for typical small and large offices.

Exit Signs

— Exit signs are assumed to have an average service life of 25 years, with average replacement frequency for incandescent bulbs assumed to be two times per year.

— The baseline model used in the analysis was an incandescent exit sign, which uses 262.8 kWh per year. These signs use two 15-watt incandescent lamps and are illuminated 24 hours per day.

Clothes Washers

— Clothes washers are assumed to have an average service life ranging from 12 to 16 years and averaging 14.1 years.

— The baseline model used in the analysis has a 0.82 modified efficiency factor (MEF) and uses 1 434 kWh per year.

Assumptions for Sensitivity Analysis

In addition to the base case analysis, sensitivity analyses were carried out on the discount rate, energy prices, and combinations of the two. All sensitivity analyses were calculated from the base case.

— For the discount rate sensitivity, the base case was re-evaluated using real discount rates of 5 and 10 (see footnote 1) percent;

— For the energy price sensitivity analysis, Canada average prices were substituted with high and low regional energy prices, according to Canada's Energy Outlook 1992-2020: Update 1999;

— In the combined energy price-discount rate sensitivity analysis, the base case was re-evaluated under two scenarios. The first scenario combined higher energy prices with the low discount rate (5 percent). The second scenario combined low energy prices with the higher discount rate (10 percent). This approach broadens the range of economic attractiveness presented in the discount rate sensitivity analysis and the energy price sensitivity analysis.

Results

Table I summarizes the net benefits from the proposed amendments.

The analysis focused on two storage capacities of electric water heaters and two storage capacities of gas-fired water heaters. Two types of chillers were assessed — air-cooled water chillers of 100 tons represent this equipment in sizes of up to 150 tons and 500-ton centrifugal chillers represent this equipment in sizes greater than 300 tons.

Table I: Summary of Net Benefits Analysis

The results in Table I are based on one practical design for efficiency improvement that meets the efficiency standards contained in this amendment.

In summary, the results of the analysis show that there are positive net economic benefits to Canada from adopting the minimum energy performance standards contained in this amendment. The sensitivity analyses indicate that the results are robust for a wide range of assumptions. The benefits will vary by individual user depending on end-use sector, geographical location and/or operational practices.

(b) Energy/GHG Analysis

Methodology and Assumptions

The energy savings impacts associated with the amendments were obtained by comparing the business-as-usual case (excluding the amendment) and the impact case (i.e. the business-as-usual scenario including the amendment). The energy savings associated with electric water heaters, gas-fired water heaters, and clothes washers occur in the residential sector and the energy savings associated with water chillers and exit signs occur in the commercial sector.

The reductions in GHG emissions were calculated by applying emissions factors consistent with those published by Environment Canada to the marginal fuels used to generate the electricity that would be saved through the amendment.

Results

The estimated energy savings impact of the amendment is presented in Table II. The results are presented for the years 2005, 2010, 2015, and 2020. Energy savings would begin to accrue with the implementation of the proposed amendments to the Regulations. Total energy savings associated with this amendment would be 2.85 petajoules annually in 2005. They would increase to 45.09 petajoules annually in 2020 as the more efficient equipment steadily replaces the pre-regulation stock.

Table II: Energy Savings (Petajoules/year)

The estimated cumulative annual reductions in GHG emissions resulting from the aggregate energy savings are presented in Table III. GHG emissions are estimated at approximately 0.20 megatonnes in the year 2005 and increases to approximately 3.84 megatonnes in the year 2020.

Table III: Reduction in Greenhouse Gas Emissions (Megatonnes/year)

Details of this analysis can be obtained on request by writing to Jean-François Bilodeau, Economist, Demand Policy and Analysis Division, Office of Energy Efficiency, 580 Booth Street, 20th Floor, Ottawa, Ontario K1A 0E4, jebilode@nrcan.gc.ca (Electronic mail).

Consultation

Consultation on these products was accomplished with three methods.

(i) The relevant Canadian Standards Association ("CSA") Technical Committees and Technical Subcommittees, assembled from stakeholders (including manufacturers, industry associations and other interested groups), provided input, reviewed and voted upon changes to the test standard. For some products, the proposed efficiency requirements have been incorporated into the test procedure standards.

(ii) Bulletins were distributed to interested stakeholders electronically. The distribution lists targeted key market channel stakeholders, key federal and provincial stakeholders, and general interest groups (advocacy groups, international regulators). Many of these individuals and organizations in turn forward the bulletin to provide access to a larger audience of stakeholders. Also, bulletins are posted on the Energy Efficiency Regulations Web site at http://oee.nrcan.gc.ca/regulations/home_page.cfm and are often printed for distribution at trade shows.

(iii) Workshops may be held when significant issues are raised through the bulletin process that are best addressed as a group. Invitations would be sent out to identified stakeholders. In other cases, bilateral discussions are held with stakeholders.

Water Heaters

Water heating is the second largest use of energy in houses. About 880 000 new water heaters are sold each year in Canada. An NRCan study concluded that most water heaters have efficiency ratings close to the minimum requirements of existing regulations. Legislation is already in place in the United States for implementing efficiency improvements in January of 2004.

No significant issues were identified with the proposed efficiency levels for gas-fired water heaters. The CSA test method has been revised to be essentially the same as the U.S. Department of Energy (DOE) test method. Dealers for gas-fired tankless or instantaneous water heaters have requested that gas-fired water heaters be labelled for energy efficiency. This will be considered in the future by NRCan.

The amendment will update the Regulations to reference the most recent testing method for oil-fired storage water heaters.

With respect to electric water heaters, certain issues have been raised.

NRCan's original intent was to use the DOE test method from the United States, until problems with the DOE test method became apparent. Significant variations in test results were reported by researchers in the United States. Variations have been attributed to limitations on instrument accuracy and the complicated nature of the test method. This test method credits the use of pipe insulation installed, a condition that is impossible to enforce in the field with a product standard. This test method gives higher ratings to certain design changes that result in the reduction of the amount of hot water provided, which is a negative impact on customers. The U.S. test method does not adequately assess tank bottom insulation, which is important in Canada's cold climate where most tanks are installed on concrete floors.

In March 2003, NRCan presented these issues at a CSA meeting. In May 2003, NRCan announced, with a notice sent to stakeholders by electronic mail, the proposal to retain the CSA-C191 test method for electric water heaters.

To ensure that the test method provides repeatable results which are representative of Canadian conditions, NRCan is proposing that this amendment will retain the CSA-C191 test method which is presently referenced by the Regulations.

Reference to the C191 test standard and interest in harmonizing performance requirements to those expected in the United States when their standard was written required that an equivalency be established between the performance levels as determined by the various test standards. Test data has been obtained that supports the performance levels for electric storage water heaters that are proposed in this amendment. Manufacturers have indicated that if there are to be differences in the test standards they would require additional time to optimize their tank design accordingly. Consequently, this amendment proposes an effective date of July 1, 2004, which is about five months later than the regulation date in the United States.

One manufacturer provided information to NRCan that bottom inlet of cold water would improve the tank efficiency in use, but this gain would not be captured in the test method. Additional equations representing a credit for bottom inlet were added to the proposed amendment. Heat loss through piping is significant. Moving one pipe to the bottom of the tank where the pipe will be cold for a significant proportion of the time reduces the heat loss. One manufacturer, that makes both types, has stated some concerns with this approach. NRCan has undertaken additional testing to ensure that the energy savings are valid. NRCan is open to incorporating other designs which improve efficiency.

Chillers

A bulletin was sent by electronic mail and posted on the Web site in February 2003. There were written responses from three manufacturers, one engineering company, the Canadian industry association (HRAI), a provincial utility, and the consumer representative on the CSA subcommittee for chillers.

Many stakeholders asked whether the levels of efficiency referenced in CSA-C743-02 are the same as in ASHRAE 90.1-2001. It has been confirmed that the test method and minimum energy efficiency levels in CSA-C743-02 are the same as the ASHRAE 90.1-2001. Although not regulated federally in the United States, many individual states have adopted the efficiency levels in ASHRAE 90.1-2001 for chillers.

One manufacturer suggested that the efficiency requirements for large centrifugal chillers should be more stringent. Another manufacturer has proposed that variable speed drives be incorporated into the test method and the regulation requirements. Both of these suggestions will be considered for future amendments.

In order to be consistent with requirements in the United States, NRCan proposes to accept all of the present requirements in ASHRAE 90.1-2001. One product class that was evaluated showed a negative result in the cost-benefit analysis (as shown in Table I). A meeting for manufacturers and other stakeholders was held on September 4, 2003, with 15 attending. This issue was presented and discussed. Manufacturers suggested that incremental costs used by NRCan may be too high and would contribute to the negative result. Overall, they indicated that the need to harmonize with U.S. efficiency levels would override a negative result for one product category. A change to one chiller category for Canada would be disruptive.

Exit Signs

The CSA standard CAN/CSA C860-01 Performance of Internally Lighted Exit Signs ("C860"), was published in August 2001.

Direct consultations on exit signs started with a study commissioned by NRCan in October 2002. Stakeholders were surveyed to determine the extent to which Energy Star-qualified exit signs had penetrated the market. The results showed that a significant segment of the market had accepted the light-emitting diode technology required to meet this voluntary standard. Approximately 70 percent of the new signs over the next five years are expected to meet the voluntary standard, leaving about 30 percent not meeting these efficiency levels.

NRCan issued a bulletin in July of 2003 proposing regulations based on the CSA-C860 standard, but with minimum efficiency levels equivalent to the current Energy Star qualification. This bulletin went out to 110 stakeholders. Eleven responses were received expressing concerns about testing, visibility, and proposed efficiency levels for bilingual signs. The resulting efficiency levels differ somewhat from the Energy Star criteria, which was not deemed appropriate to reference in regulation. The proposed Regulations allow 5 watts per legend (where "legend" is defined as either "EXIT" or "SORTIE"). The Regulations also specify an additional 5 watts for signs with an internal DC power supply.

Dishwashers

On September 29, 2003, the U.S. DOE test procedure was modified to allow for more accurate testing of dishwashers with soil sensing. Surveys showed that consumers are using their dishwasher less (down from 264 to 216 uses per year), and this information caused a change to the calculation of annual energy consumption in the test procedure.

This has no impact on the minimum energy performance standard, but it does change the energy use numbers printed on the EnerGuide labels. In order to minimize confusion and to promote harmonization, NRCan is proceeding immediately to reference the revised U.S. test procedure. CSA plans to proceed quickly with a revision to the testing standard CSA-C373, which will be referenced in a future amendment when the revised standard becomes available.

The Association of Home Appliance Manufacturers and the Canadian Appliance Manufacturers Association have indicated their support for this activity.

Clothes Washers

Clothes washers were introduced in the first set of regulations in 1995. Industry and NRCan trends data have shown significant energy efficiency improvement of the stock. In January 2001, the U.S. DOE published a final rule on clothes washers that significantly changed the test procedure for determining product efficiency and increased the level of efficiency for clothes washers. In June 2003, the test procedure CSA-C360-03 Energy Performance, Water Consumption, and Capacity of Automatic Household Clothes Washers was balloted and published before the end of 2003. This new standard essentially harmonized test procedures and minimum performance levels to the U.S. DOE rule. The new standard will also apply to the washer function of integrated clothes washer-dryers.

Notice of the proposed amendment was provided in July 2003 through a bulletin to approximately 80 stakeholders. Comments on the proposed amendment were received from five groups. All comments with respect to the proposed amendment were positive and no issues were identified.

The CSA-C360 scope has been revised to include residential-style clothes washers that are coin- or card-operated. NRCan does not propose to include these clothes washers in the scope of this amendment but gives notice that NRCan intends to analyze the energy savings potential over the next 18 months to determine whether future amendments to the Regulations would be appropriate.

Compliance and Enforcement

It is expected that the compliance and enforcement procedures already in place for all products regulated under the Energy Efficiency Regulations will continue to serve well for these products. The main features of this system are described below.

Customs Monitoring

NRCan's procedures for commercial imports of prescribed products will apply to products prescribed under the amendment. This involves cross checking data received from customs release documents with the Energy Efficiency Reports which dealers must submit to NRCan as specified in Part V and Schedule IV of the Energy Efficiency Regulations. This cross-checking ensures that NRCan can verify the efficiency of imports clearing customs.

North American manufacturers' support for the amendment will contribute to the effectiveness of these border monitoring activities. Since these manufacturers will provide the information required in the Energy Efficiency Report in a timely fashion, NRCan will have an effective basis for cross-checking with the customs release documents.

Verification Marking

For products prescribed under the Energy Efficiency Regulations, NRCan employs a third-party verification system using the services of certification organizations accredited by the Standards Council of Canada.

Direct Fieldwork — Market Survey and Product Testing

NRCan will conduct product testing on a complaint-driven basis. The market is highly competitive and suppliers are cognizant of performance claims made by their competitors. Challenges by which performance claims can be questioned exist in all verification programs.

Conclusion

An appropriate level of compliance with the amendment will result from support by North American manufacturers, third party verification, customs monitoring, co-operation with regulating provinces, communication activities, market surveys, and product testing as required.

Contact

Brian Killins, Senior Standards Engineer, Office of Energy Efficiency, Natural Resources Canada, 1 Observatory Crescent, 2nd Floor, Ottawa, Ontario K1A 0E4, (613) 947-8764 (Telephone), (613) 947-5286 (Facsimile), equipment@nrcan.gc.ca (Electronic mail).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to section 26 of the Energy Efficiency Act (see footnote a), that the Governor in Council, pursuant to sections 20 and 25 of that Act, proposes to make the annexed Regulations Amending the Energy Efficiency Regulations.

Interested persons may make representations with respect to the proposed Regulations within 75 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 John Cockburn, Senior Chief, Equipment Standards and Labelling Unit, Office of Energy Efficiency, Natural Resources Canada, 1 Observatory Crescent, Building #1, 2nd Floor, Ottawa, Ontario K1A 0E4 (tel.: (613) 996-4359; e-mail: equipment@nrcan.gc.ca).

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, February 10, 2004

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE ENERGY EFFICIENCY REGULATIONS

AMENDMENTS

1. (1) The definition "integrated over/under washer-dryer" in subsection 2(1) of the English version of the Energy Efficiency Regulations (see footnote 2) is repealed.

(2) The definitions "EF" and "V" in subsection 2(1) of the Regulations are replaced by the following:

"EF" means energy factor as described in clause 2 of CSA P.3-03; (FE)

"V" means, with respect to

(a) clothes dryers, the volume in litres of the drum,
(b) clothes washers, the volume in litres of the basket,
(c) dishwashers, the volume in litres of hot water used,
(d) electric ranges and gas ranges manufactured
(i) on or after February 3, 1995 and before January 1, 2000, the volume in litres of usable oven space calculated in accordance with clause 6.4 of CSA C358, and
(ii) on or after January 1, 2000, the volume in litres of usable oven space calculated in accordance with clause 7 of CSA C358-95,
(e) electric water heaters, gas water heaters and oil-fired water heaters, the rated volume in litres of the storage tank,
(f) integrated clothes washer-dryers other than combination clothes washer-dryers, the volume in litres of the basket for the clothes washer component and the volume in litres of the drum for the clothes dryer component, and
(g) combination clothes washer-dryers, the volume in litres of the drum; (V)

(3) The definition "laveuse-sécheuse" in subsection 2(1) of the French version of the Regulations is replaced by the following:

" laveuse-sécheuse " Appareil ménager qui consiste en une laveuse et une sécheuse superposées ou côte à côte, alimentées par une seule source d'alimentation, et dont le panneau de commande est monté sur l'une des deux. Les laveuses-sécheuses combinées sont incluses dans la présente définition. (integrated clothes washer-dryer)

(4) Paragraph (a) of the definition "annual energy consumption" in subsection 2(1) of the Regulations is replaced by the following:

(a) dishwashers, the estimated annual energy use as calculated in accordance with 10 CFR 430.23,

(5) The definition "compact" in subsection 2(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (b) and by adding the following after paragraph (c):

(d) integrated clothes washer-dryers, other than combination clothes washer-dryers, having a clothes dryer component with a drum capacity of less than 125 L (4.4 cubic feet) and a clothes washer component with a basket capacity of less than 45 L (1.6 cubic feet), and

(e) combination clothes washer-dryers, having a drum capacity of less than 45 L (1.6 cubic feet); (compact)

(6) The definition "standard" in subsection 2(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (c) and by replacing paragraph (d) with the following:

(d) integrated clothes washer-dryers, other than combination clothes washer-dryers, having a clothes dryer component with a drum capacity of not less than 125 L (4.4 cubic feet) and a clothes washer component with a basket capacity of not less than 45 L (1.6 cubic feet), and

(e) combination clothes washer-dryers, having a drum capacity of not less than 45 L (1.6 cubic feet); (ordinaire)

(7) Paragraphs (a) and (b) of the definition "test group" in subsection 2(1) of the Regulations are replaced by the following:

(a) clothes dryers and clothes washers, the size category,

(b) dishwashers, electric ranges referred to in paragraphs (a) and (b) of the definition "electric range", freezers, integrated clothes washer-dryers, refrigerators and combination refrigerator-freezers, the type and the size category,

(8) The definition "type" in subsection 2(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (e), by adding the word "and" at the end of paragraph (f) and by adding the following after paragraph (f):

(g) integrated clothes washer-dryers, combination or over/ under or side by side; (type)

(9) Paragraph (c) of the definition "size category" in subsection 2(1) of the English version of the Regulations is replaced by the following:

(c) for clothes dryers, clothes washers, dishwashers and integrated clothes washer-dryers, standard or compact; (catégorie de grosseur)

(10) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

"bottom inlet" means a cold water inlet that enters near the bottom of the storage tank of a water heater, but does not include cold water inlets that have a dip tube; (entrée inférieure)

"chiller" means a machine designed to make use of a refrigerant cycle to remove heat from a liquid, usually water, that rejects that heat to a cooling medium, usually air or water, and the refrigerant condenser of which may, or may not be, an integral part of the machine; (refroidisseur)

"combination clothes washer-dryer" means a household appliance with

(a) a clothes washer function and clothes dryer function utilizing the same drum,
(b) a common control panel, and
(c) one power source; (laveuse-sécheuse combinée)

"CSA C191-00" means the CSA standard CAN/CSA C191-00 entitled Performance of Electric Storage Tank Water Heaters for Household Service; (CSA C191-00)

"CSA B211-00" means the CSA standard CAN/CSA B211-00 entitled Energy Efficiency of Oil-Fired Storage Tank Water Heaters; (CSA B211-00)

"CSA C360-03" means the draft CSA standard C360-03 entitled Energy Performance, Water Consumption, and Capacity of Household Clothes Washers, dated June 2003; (CSA C360-03)

"CSA C743" means the CSA standard CAN/CSA C743-02 entitled Performance Standard for Rating Packaged Water Chillers; (CSA C743)

"CSA C860" means the CSA standard CAN/CSA C860-01 entitled Performance of Internally Lighted Exit Signs; (CSA C860)

"CSA P.3-03" means the draft CSA standard CSA-P.3-03 entitled Testing Method for Measuring Energy Consumption and Determining Efficiencies of Gas-Fired Storage Water Heaters, dated February 2003; (CSA P.3-03)

"exit sign" means a device used to identify the most direct path of egress for emergency purposes having a legend and optional directional indicator that is illuminated by a light source contained within the assembly, and includes

(a) Type 1 and Type 3 exit signs as described in CSA C860, and
(b) Type 2 exit signs as described in CSA C860, which includes exit signs supplied as a component of a combination emergency lighting unit consisting of an internally lighted exit sign and a battery pack with attached emergency lamps,

but does not include exit signs that

(c) flash,
(d) are photoluminescent, or
(e) are radioluminescent; (enseigne de sortie)

"legend" means each of the following words displayed on an exit sign, namely, "EXIT" and "SORTIE"; (légende)

"10 CFR Appendix C" means Appendix C to subpart B, part 430, title 10 to the United States Code of Federal Regulations, as amended by Vol. 68, No. 168 of the Federal Register of the United States published on August 29, 2003, at pages 51 900 to 51 903; (10 CFR appendice C)

"10 CFR 430.23" means section 430.23 of subpart B, part 430, title 10 of the United States Code of Federal Regulations, as amended by Vol. 68, No. 168 of the Federal Register of the United States published on August 29, 2003, at pages 51 899 and 51 900; (10 CFR 430.23)

(11) Subsection 2(1) of the English version of the Regulations is amended by adding the following in alphabetical order:

"integrated clothes washer-dryer" means a household appliance that consists of a clothes washer component and a clothes dryer component located above, below or beside the clothes washer component, that is powered by a single power source and the control panel of which is located on one of the components, and includes a combination clothes washer-dryer; (laveuse-sécheuse)

(12) Subsection 2(3) of the Regulations is replaced by the following:

(3) Any calculation or measurement that is referred to in these Regulations with respect to an energy-using product shall be done in accordance with the methods set out in the applicable standard or legislative provision, if any.

2. (1) Paragraph 3(1)(l) of the English version of the Regulations is replaced by the following:

(l) integrated clothes washer-dryers;

(2) Subsection 3(1) of the Regulations is amended by striking out the word "and" at the end of paragraph (u) and by adding the following after paragraph (v):

(w) chillers; and

(x) exit signs.

(3) Section 3 of the Regulations is amended by adding the following after subsection (12):

(13) For the purposes of Parts II to V, a product referred to in paragraph (1)(w) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after October 28, 2004.

(14) For the purposes of Parts II to V, a product referred to in paragraph (1)(x) shall not be considered to be an energy-using product unless its manufacturing process is completed on or after April 1, 2004.

3. (1) Paragraph 4(1)(a) of the Regulations is replaced by the following:

(a) for an energy-using product referred to in any of paragraphs 3(1)(a) to (h.1), (i), (j), (k) to (m.3) and (n.1) to (x), an energy efficiency standard set out in column III of an item of Part 1 of Schedule I applies to the product set out in column I of that item if the manufacturing process of the product is completed during the period set out in column IV of that item;

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

(2) An energy-using product set out in column I of an item of Part 1 of Schedule I complies with the energy efficiency standard referred to in subsection (1) only if the product meets that standard when tested in accordance with testing procedures established by the standard or legislative provision, if any, set out in column II of that item that is applicable to the product as defined in these Regulations.

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

(4) A reference to a CSA standard set out in column III of Part 1 of Schedule I shall be read as a reference to

(a) if the standard was published before January 1, 2003, that standard as it read on July 31, 2002; and

(b) if the standard was published on or after January 1, 2003, that standard as it read on July 21, 2003.

4. Paragraph 5(f) of the English version of the Regulations is replaced by the following:

(f) integrated clothes washer-dryers;

5. Paragraph 12(2)(f) of the Regulations is replaced by the following:

(f) if the product is set out in column I of an item of Schedule IV, the applicable information described in column III of that item, which information shall be collected in accordance with the applicable standard or legislative provision, if any, set out in column II of that item.

6. The heading "ANSI/CGA/CIE/CSA/IES Standard" of column II of Part 1 of Schedule I to the Regulations is replaced by "Standard/Legislative Provision".

7. The portion of item 4.1 of Part 1 of Schedule I to the Regulations in columns III and IV is replaced by the following:

8. Part 1 of Schedule I to the Regulations is amended by adding the following after item 4.1:

9. The portion of item 5 of Part 1 of Schedule I to the Regulations in column IV is replaced by the following:

10. Part 1 of Schedule I to the Regulations is amended by adding the following after item 5:

11. The portion of item 10 of Part 1 of Schedule I to the Regulations in column IV is replaced by the following:

12. Part 1 of Schedule I to the Regulations is amended by adding the following after item 10:

13. The portion of item 15 of Part 1 of Schedule I to the Regulations in column IV is replaced by the following:

14. Part 1 of Schedule I to the Regulations is amended by adding the following after item 15:

15. Items 19 to 20.1 of Part 1 of Schedule I to the Regulations are replaced by the following:

16. The portion of item 23 of Part 1 of Schedule I to the Regulations in column IV is replaced by the following:

17. Part 1 of Schedule I to the Regulations is amended by adding the following after item 23:

18. Part 1 of Schedule I to the Regulations is amended by adding the following after item 37:

19. The heading "ANSI/CGA/CIE/CSA/IES Standard" of column II of Schedule IV to the Regulations is replaced by "Standard/Legislative Provision".

20. The portion of item 3.1 of Schedule IV to the Regulations in column I is replaced by the following:

21. Schedule IV to the Regulations is amended by adding the following after item 3.1:

22. The portion of item 4 of Schedule IV to the Regulations in column I is replaced by the following:

23. Schedule IV to the Regulations is amended by adding the following after item 4:

24. The portion of item 8 of Schedule IV to the Regulations in column I is replaced by the following:

25. Schedule IV to the Regulations is amended by adding the following after item 8:

26. The portion of item 15 of Schedule IV to the Regulations in column I is replaced by the following:

27. Schedule IV to the Regulations is amended by adding the following after item 15:

28. Items 17 and 17.1 of Schedule IV to the Regulations are replaced by the following:

29. The portion of item 20 of Schedule IV to the Regulations in column I is replaced by the following:

30. Schedule IV to the Regulations is amended by adding the following after item 20:

31. Schedule IV to the Regulations is amended by adding the following after item 26:

COMING INTO FORCE

32. These Regulations come into force on the day on which they are registered.

[7-1-o]

Footnote 1

The Treasury Board (of Canada) recommends a cost-benefit analysis to be conducted using a 10 percent real social discount rate.

Footnote a

S.C. 1992, c. 36

Footnote 2

SOR/94-651

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